The proposed bill would significantly update current statutes regarding the state budget process by transitioning from an annual to a biennial budgeting system. Under the new provisions, the Governor would be required to submit a budget plan for the next two fiscal years, delineating each year separately, within five days after the start of the first regular session of the Legislature. Additionally, budget units, including the Judiciary and various departments, would need to submit their budget requests for the upcoming two fiscal years by September 1 of each even-numbered year. The bill also mandates that the Governor's Office of Strategic Planning and Budgeting (OSPB) continuously prepare a tentative budget report for the next two fiscal years and report estimates of the appropriations limit every odd-numbered year.

Moreover, the bill introduces new requirements for budget units, such as biennial updates to their five-year strategic plans and the submission of operating plans that include mission statements and performance measures every two years. It also specifies that employer contributions for the Arizona State Retirement System (ASRS) be determined biennially and requires various reports to be submitted to the Joint Legislative Budget Committee (JLBC) regarding federal funding and capital improvement plans. The act includes a retroactivity clause effective August 31, 2026, ensuring immediate implementation of these changes upon enactment.

Statutes affected:
Introduced Version: 35-111, 35-113, 35-114, 35-115, 35-116, 35-118, 35-121, 35-122, 38-737, 41-723, 41-792.01, 41-793, 41-1273, 23-363, 2001-2002, 38-714, 38-712, 38-718, 38-735, 35-190, 41-791, 41-793.01, 15-1682.02