If enacted, this bill would amend current statutes related to budget implementation in Arizona. It would insert provisions that require the Director of the Arizona Department of Administration to consult with legislative budget units when implementing personnel and financial data management systems. Additionally, it would establish that any unrestricted federal funds received by the state from July 1, 2025, to June 30, 2026, must be deposited into the state general fund and used for essential government services. The bill also includes retroactive provisions for these federal funds.

Furthermore, the bill would suspend the cap on the Budget Stabilization Fund for fiscal years 2025-2026, 2026-2027, and 2027-2028, meaning the legislature would not be required to appropriate or transfer funds from this account during these years. It would also prohibit the transfer of surplus funds from the Budget Stabilization Fund to the state general fund for fiscal year 2025-2026. These changes aim to facilitate the implementation of the FY 2026 state budget while ensuring that essential services are funded adequately.

Statutes affected:
Introduced Version: 41-703, 41-722
House Engrossed Version: 41-703, 41-722