If enacted, this bill would amend current statutes related to budget implementation in Arizona, specifically addressing the management of the Budget Stabilization Fund and the handling of federal funds. The bill would insert provisions stating that for fiscal years 2025-2026, 2026-2027, and 2027-2028, the legislature is not required to appropriate or transfer funds from the Budget Stabilization Fund. Additionally, it would suspend the cap on the Budget Stabilization Fund for FY 2026, allowing for surplus funds to remain in the fund rather than being transferred to the state general fund.

The bill also includes new requirements for the Director of the Arizona Department of Administration to consult with legislative budget units when implementing personnel and financial data management systems. Furthermore, it mandates that any unrestricted federal funds received by Arizona from July 1, 2025, to June 30, 2026, be deposited into the state general fund and used for essential government services, with retroactive applicability to July 1, 2025. These changes aim to facilitate the implementation of the FY 2026 state budget while ensuring that necessary fiscal policies are adhered to.

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