The proposed bill, if enacted, would introduce several significant updates to current statutes regarding budget implementation and the management of state funds. It would establish that for fiscal years 2026, 2027, and 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, preventing the State Treasurer from transferring surplus funds to the state General Fund. The bill also mandates that any unrestricted federal funds received during FY 2026 be deposited into the state General Fund for essential government services, with retroactive applicability from July 1, 2025.

Furthermore, the bill would amend the title and structure of the Arizona Commission of African-American Affairs, renaming it to the Arizona Office of African-American Affairs and making various changes to its governance and operational procedures. It would prohibit public agencies from employing individuals whose compensation is funded in whole or in part by private monies, with specific exemptions. The bill also includes definitions for terms such as "private monies" and outlines the responsibilities of the Director of the Arizona Department of Administration in relation to budget units of the legislative branch. Overall, these changes aim to streamline budgetary processes and enhance the governance of state agencies.

Statutes affected:
Introduced Version: 16-168.01, 16-168.02, 41-531, 41-532, 41-533, 41-534, 16-168, 35-190, 2025-2026, 42-5029, 41-2955, 35-313
Senate Engrossed Version: 35-149.01, 41-531, 41-532, 41-533, 41-534, 41-1001, 41-2955, 35-313, 35-190
Chaptered Version: 35-149.01, 41-531, 41-532, 41-533, 41-534, 41-1001, 41-2955, 35-313, 35-190