If enacted, this bill would update current statutes by introducing new provisions regarding the management of the Budget Stabilization Fund and the handling of federal funds. Specifically, it would insert language 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 allow for the suspension of the cap on the Budget Stabilization Fund, which is typically set at ten percent of the state general fund revenue, and prohibit the State Treasurer from transferring surplus funds from this account to the state general fund.

Furthermore, the bill would mandate that any unrestricted federal funds received by Arizona from July 1, 2025, through 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. Overall, these changes aim to facilitate the implementation of the state budget for fiscal year 2026 while providing flexibility in the management of state funds.