The bill SB1749 introduces changes to the budget implementation for the fiscal year 2025, specifically regarding the handling of unrestricted federal funds and the Budget Stabilization Fund. Under the new provisions, any unrestricted federal funds received by Arizona from July 1, 2024, to June 30, 2025, must be deposited into the state general fund and used for essential government services. This requirement is retroactive to June 30, 2024. Additionally, the bill states that for the fiscal years 2024-2025, 2025-2026, and 2026-2027, the legislature is not obligated to appropriate or transfer funds from the Budget Stabilization Fund.

Furthermore, the bill suspends the cap on the Budget Stabilization Fund, allowing it to exceed the previous limit of ten percent of the state general fund revenue for fiscal year 2025. It also prohibits the State Treasurer from transferring any surplus from the Budget Stabilization Fund to the state general fund. These changes aim to provide more flexibility in managing state finances during the specified fiscal years.