The proposed bill, if enacted, would amend current statutes related to budget implementation in Arizona. It would introduce new 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, the bill would mandate that any unrestricted federal funds received by the state from July 1, 2025, to June 30, 2026, be deposited into the state general fund and used for essential government services. This provision would apply retroactively from June 30, 2025.

Furthermore, the bill would suspend the cap on the Budget Stabilization Fund for fiscal years 2025-2026, 2026-2027, and 2027-2028, allowing the fund to exceed the previous limit of ten percent of state general fund revenue. It would also relieve the legislature from the obligation to appropriate or transfer funds from the Budget Stabilization Fund during these fiscal years. 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