appropriation of federal
monies
DPA |
Committee on Appropriations |
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DPA |
Caucus and COW |
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X |
Third Read |
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As Passed the House |
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SCR 1019, if
approved by the voters at the next general election, allows the Legislature to
appropriate noncustodial federal monies.
SCR 1019 was amended in the Appropriations Committee to remove language relating to lump sum appropriations of federal dollars and to clarify the process for appropriating, expending and overseeing the expenditure of noncustodial federal monies. The Appropriations amendment was adopted in Committee of the Whole.
With the exception of the Temporary Assistance to Needy Families block grant and various other federal funds received by the Department of Economic Security, the Arizona Legislature does not appropriate federal monies. Generally, there are two categories of federal monies received by the state. Federal monies that do not provide discretion to the state for disbursement of the monies are considered custodial or “pass through” monies. Examples of custodial federal monies are university research grants and direct federal payments to individuals, such as Social Security and Medicare benefits. Conversely, noncustodial federal monies are block grants and other federal monies that provide the state with discretion regarding the development, implementation or operation of a program or service.
· Defines budget unit as any department, commission, board, institution or other agency of the state organization receiving, spending or disbursing state monies or incurring obligations against this state.
· Defines noncustodial federal monies to mean monies that meet the following criteria:
· Are designated by the federal government as block grant monies
· Are designated by the federal government as general revenue sharing monies
· Provide this state with broad authority to make spending decisions regarding the development, implementation or operation of a program or service.
· Are considered essential to meet total spending obligations of a federally required or matched program or service authorized by the Legislature in which the federal government requires at least 1% of the program or service funding to come from this state.
· States that noncustodial federal monies do not include:
· Federal monies or research grants awarded to the universities, university employees or the Arizona Board of Regents
· Federal monies for use by the Department of Emergency and Military Affairs
· Federal monies awarded directly to school districts or community colleges under the jurisdiction of the State Board of Directors for Community Colleges
· States that noncustodial federal monies received by any budget unit shall be separately accounted for.
· Allows the Department of Administration (DOA) to use the most efficient system of accounts and records, consistent with legal requirements, standards and necessary fiscal safeguards, to accomplish the separate accounting of noncustodial federal monies for budget units.
· States that the Legislature retains the authority to appropriate noncustodial federal monies, but if the Legislature does not make any appropriation, the budget unit that has lawful authority shall administer and spend these monies pursuant to federal and state law.
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Requires the Legislature to specify, in any federal money appropriations, the
purposes for which the monies are to be expended, consistent with federal law.
· States that unanticipated federal monies for a new program that may become available when the Legislature is not in session are appropriated for the fiscal year in which they are received to the budget unit that has lawful authority to administer the monies unless otherwise modified by the Legislature. The Joint Legislative Budget Committee (JLBC) shall review any expenditure of the lump sum appropriation monies before the expenditure occurs.
· States that if the amount of federal monies received is less than the amount appropriated, the appropriation of federal monies and the activities financed by the monies shall be reduced accordingly.
· States that if the mount of the federal monies received for an existing program is more than the amount appropriated, the total appropriation of federal and state monies allocated for a program shall remain at the amount designated by the Legislature. If authorized by the Legislature, the excess federal monies shall be credited to the appropriated agency account. JLBC shall review, in advance, expenditures of these excess monies.
SCR 1019 was amended in the Appropriations Committee as follows:
§ Eliminates language relating to lump sum appropriations of federal monies.
§ Makes clarifying changes to the process for appropriation, expenditure and oversight of unanticipated noncustodial federal monies.
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45th Legislature
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Second Regular Session 2 April
22, 2002
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