STATE AGENCY BUDGETS The Executive Budget FISCAL YEAR 2013 Janice K. Brewer GOVERNOR JANUARY 2012 Provisions for Individuals with Disabilities Individuals who have a disability and require reasonable accommodation in order to use this document are encouraged to contact the Governor’s Office of Strategic Planning and Budgeting at 602‐542‐5381. TABLE OF CONTENTS Budget in a Flash Assumptions & Methodology ......................................... 1 AGENCY OPERATING BUDGET DETAIL Accountancy Board, State Board of .......................................... 5 Acupuncture Board of Examiners ............................................ 6 Administration, Arizona Department of ................................. 7 Administrative Hearings, Office of ........................................ 11 Agriculture, Arizona Department of ...................................... 13 Arizona Health Care Cost Containment System .................. 16 Appraisal, State Board of ......................................................... 22 Arts, Commission on the ......................................................... 23 Athletic Trainers, Board of....................................................... 25 Attorney General ‐ Department of Law ................................. 26 Automobile Theft Authority.................................................... 29 Barbers Examiners, Board of ................................................... 31 Behavioral Health Examiners, Board of ................................. 32 Capital Post‐Conviction Public Defender Office................... 34 Charter Schools, State Board for ............................................. 35 Chiropractic Examiners, State Board of ................................. 37 Citizens Clean Elections Commission .................................... 38 Commerce Authority................................................................ 39 Commerce, Department of ...................................................... 40 Community Colleges, Arizona................................................ 42 Constable Ethics Standards and Training Board .................. 43 Contractors, Registrar of .......................................................... 44 Corporation Commission......................................................... 46 Corrections, Department of ..................................................... 49 Cosmetology, Board of............................................................. 53 Criminal Justice Commission, Arizona.................................. 55 Deaf and Blind, State Schools for the...................................... 57 Deaf and Hard of Hearing, Commission for the................... 59 Dental Examiners, State Board of ........................................... 61 Early Childhood Development and Health Board ............... 62 Economic Security, Department of ......................................... 63 Education, Department of........................................................ 69 Emergency and Military Affairs, Department of .................. 73 Environmental Quality, Department of ................................ 75 Equal Opportunity, Governor’s Office for............................. 78 Equalization, State Board of ................................................... 80 Executive Clemency, Board of................................................. 81 Exposition and State Fair, Arizona ......................................... 83 Financial Institutions, State Department of ........................... 84 Fingerprinting, Board of .......................................................... 86 Fire, Building and Life Safety, Department of....................... 87 Forester, Arizona State ............................................................. 89 Funeral Directors and Embalmers, State Board of ................ 91 Game and Fish Department ..................................................... 92 Gaming, Department of........................................................... 94 Geological Survey, Arizona .................................................... 96 Government Information Technology Agency .................... 98 Governor’s Office ..................................................................... 99 Governor’s Office of Strategic Planning and Budgeting ....100 Health Services, Department of.............................................101 Highway Safety, Governor’s Office of..................................105 Historical Society, Arizona ....................................................106 Historical Society, Prescott.....................................................108 Homeland Security .................................................................110 Homeopathic Medical Examiners, Board of ........................111 Housing, Arizona Department of .........................................113 Independent Redistricting Commission ..............................115 Indian Affairs, Arizona Commission of ...............................116 Industrial Commission of Arizona .......................................118 Insurance, Department of ......................................................120 Judiciary ...................................................................................122 Juvenile Corrections, Department of ....................................124 Land, State Department .........................................................126 Law Enforcement Merit System Council .............................128 Legislature Auditor General ...................................................................129 House of Representatives ...................................................131 Joint Legislative Budget Committee..................................132 Legislative Council ..............................................................133 Senate ....................................................................................134 Liquor Licenses and Control, Department of ......................135 Lottery Commission, Arizona State......................................137 Medical Board, Arizona .........................................................139 Medical Student Loans, Board of ..........................................141 Mine Inspector, State ..............................................................143 Mines and Mineral Resources, Department of ....................145 Naturopathic Physicians Board of Medical Examiners......146 Navigable Stream Adjudication Commission .....................148 Nursing, State Board of ..........................................................150 Nursing Care Institution Administration Examiners.........152 Occupational Therapy Examiners, Board of........................154 Opticians, State Board of Dispensing ...................................155 Optometry, State Board of .....................................................157 OSHA Review Board ..............................................................158 Osteopathic Examiners, Board of..........................................159 Parents Commission on Drug Education & Prevention.....160 Parks Board, State ...................................................................161 Personnel Board ......................................................................163 Pest Management, Office of ...................................................165 Pharmacy, Arizona State Board of ........................................167 Physical Therapy Examiners, Board of.................................169 Pioneers’ Home, Arizona ....................................................... 170 Podiatry Examiners, State Board of ..................................... 172 Postsecondary Education, Commission for......................... 173 Power Authority ..................................................................... 176 Private Postsecondary Education, State Board for ............. 177 Psychologist Examiners, State Board of ............................... 179 Public Safety, Department of................................................. 180 Racing, Arizona Department of ............................................ 184 Radiation Regulatory Agency ............................................... 186 Rangers’ Pension, Arizona..................................................... 188 Real Estate, Department of .................................................... 189 Residential Utility Consumer Office..................................... 191 Respiratory Care Examiners, Board of ................................. 192 Retirement System, Arizona State ....................................... 194 Revenue, Department of ........................................................ 196 School Facilities Board............................................................ 199 Secretary of State ‐ Department of State............................... 202 State Boards Office.................................................................. 205 Tax Appeals, State Board of................................................... 206 Technical Registration, State Board of ................................. 207 Tourism, Office of ................................................................... 209 Transportation, Department of ............................................. 211 Treasurer, State........................................................................ 214 Universities Regents, Board of................................................................. 216 Arizona State University – Tempe..................................... 218 Arizona State University – Polytechnic ............................ 220 Arizona State University – West........................................ 222 Northern Arizona University............................................. 224 University of Arizona – Main Campus............................. 226 University of Arizona – Health Sciences Center.............. 228 Veterans’ Services, Department of........................................ 230 Veterinary Medical Examining, State Board of .................. 232 Water Resources, Department of .......................................... 234 Weights and Measures, Department of ............................... 236 Continuing 2013 Fund Transfers ................................ 238 Legislative Changes ..................................................... 245 Glossary Budget Terms .......................................................................... 251 Acronyms................................................................................. 256 Government Organization Chart ............................... 259 Resources ...................................................................... 260 Acknowledgement BUDGET IN A FLASH EXECUTIVE RECOMMENDATION SUMMARY Major Highlights of FY 2013 $526.9 million for AHCCCS Baseline Caseload and Inflation $200.0 million for Education Soft Capital $95.0 Million for DOA AFIS Replacement and IT modernization $64.1 million for DHS Title XIX State Match $53.7 million for Employee Pay Increase $50.0 million for Education Move on When Reading $40.0 million for Education Preventative Maintenance $38.7 million for DHS Non-Title XIX SMI Services $35.0 million for Education Jobs Backfill $31.5 million for Commerce Authority Economic Development $30.0 million for University Performance Funding $27.8 million for AHCCCS Provider Rate Increase $25.8 million for DES TANF Backfill $20.5 million for Retirement Adjustments $17.0 million for DES Adoption Services $11.4 million for Land Risk Revolving to General Fund $10.0 million for SMART Scholarships for Community Colleges $9.3 million for DOC Correctional Officers ($3.8) million for DJC Catalina Mountain School Closure ($7.4) million for Community Colleges Equalization State Aid ($9.1) million for Education Career Ladder Phase Down ($37.0) million for Education Homeowner's Rebate Reforms ($70.6) million for Education Basic State Aid ($525.1) million for Medicaid Reform Plan Operating Budgets (in millions) ($ in millions) Agency: Dept. of Economic Security AHCCCS Dept. of Education School Facilities Board Dept. of Health Services Dept. of Corrections Dept. of Revenue Forester Arizona Pioneers' Home Community Colleges University System Dept. of Agriculture Dept. of Racing Veterans Services Historical Society Department of Public Safety Secretary of State Dept. of Environmental Quality Dept. of Water Resources Department of Administration Dept. of Land Attorney General Department of Juvenile Corrections All Others Total FY 12 Approp 602.6 1,363.7 3,436.5 164.1 494.3 948.2 44.1 6.1 1.6 71.1 682.5 7.9 2.8 7.1 4.2 46.5 13.3 7.0 5.7 14.9 1.2 16.9 46.7 250.6 8,239.6 Change from FY 12 61.3 32.6 214.0 8.5 111.5 32.7 9.5 1.0 (0.7) (5.3) 24.3 0.3 (1.1) (1.8) (1.0) 17.1 2.2 0.0 2.2 91.8 12.7 8.6 (2.3) 20.0 638.1 Sources and Uses FY 12 - FY 13 FY 13 Recomm. 663.9 1,396.3 3,650.5 172.6 605.8 980.9 53.6 7.1 0.9 65.8 706.8 8.2 1.7 5.3 3.2 63.6 15.5 7.0 7.9 106.7 13.9 25.5 44.4 270.6 8,877.7 ($ in millions) FY 12 Approp FY 12 Recomm. FY 13 Recomm. Balance Forward Revenue Estimate DPS and MVD HURF Shift Savings Agency Fund Transfers County Transfers Tax Recovery Change Temporary One Cent Sales Tax Other Adjustments TOTAL SOURCES OF FUNDS (332.3) 7,375.2 62.2 256.1 38.6 22.0 901.0 8.6 8,331.4 3.2 7,633.7 62.2 242.0 38.6 12.9 911.8 8.6 8,913.0 392.0 8,018.1 62.2 124.4 0.0 0.0 974.3 (19.7) 9,551.3 Operating Budgets 27th Payroll Health Insurance Enhancements Lease Purchase Debt Service Continuing Approps Expenditures Reversions of Continuing Approps Other Adjustments Capital Administrative Adjustments Revertments State Debt Reduction USES OF FUNDS ENDING BALANCE 8,239.6 79.0 (12.0) 49.1 0.0 0.0 (0.2) 0.0 73.4 (111.3) 0.0 8,317.6 13.8 8,285.1 79.0 (0.2) 49.1 40.8 0.0 (0.2) 0.0 69.1 (107.7) 106.0 8,521.0 392.0 8,877.7 0.0 0.0 84.1 0.0 0.0 0.0 50.0 66.9 (115.4) 0.0 8,963.3 588.0 FY 2012 Supplemental Recommendations ($ in thousands) AHCCCS-Baseline Caseload and Inflation SFB-Three-Year Building Renewal Grant Program DHS-Reallocation from AHCCCS DHS-Reallocation from DES DOA-AFIS Replacement DHS-Arizona State Hospital Fund AHCCCS-AG Tobacco Litigation DPS-Adjustment for ERE 485,394.6 100,000.0 27,851.3 13,700.0 10,000.0 2,500.0 1,364.3 777.8 Historical Society-Papago Park Rent Payment Fire, Building and Life Safety-Health Insurance Adj Corporation Commission-Health Insurance Allocati DJC-Catalina Mountain School Closure DES-Reallocation to DHS AHCCCS-Reallocation to DHS Education-Baseline Adjustment AHCCCS-Medicaid Reform Plan Total General Fund Supplementals 193.7 140.9 75.2 (1,600.0) (13,700.0) (27,851.3) (67,852.8) (485,394.6) 45,599.1 Arizona General Fund Ongoing Revenue and Expenditures FY 2002 to FY 2014 Arizona General Fund Ongoing Expenditures and Revenues FY 2002-FY 2013 11,000 10,000 9,000 8,000 $ in millions 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Spending w/ ARRA and rollove FY 2008 FY 2009 Exp w/ Solutions FY 2010 FY 2011 FY 2012 Est. Rev w/Solutions FY 2013 Est. FY 2014 Est. MAJOR CHANGES IN FY 2013 GENERAL FUND BUDGETS (Increases to FY 2012) Major Highlights of FY 2013 Department of Education Department of Economic Security Soft Capital Move on When Reading Preventative Maintenance Education Jobs Backfill Adult Education Services Career Ladders Phase Down Homeowner's Rebates Reform Basic State Aid Other Adjustments TOTAL FY 2013 200.0 TANF Backfill 50.0 Adoption Services 40.0 State Employee Pay Adjustment 35.0 Child Support - Loss of SSRE 4.6 Child Protective Services Improvements (9.1) TXIX Developmental Disabilities (37.0) Permanent Guardianship (70.6) Health Insurance Rate Reduction 1.1 Other Adjustments 214.0 TOTAL FY 2013 25.8 17.0 7.2 4.5 3.7 2.8 2.4 (2.6) 0.5 61.3 Adjustment for ERE State Employee Pay Adjustment Replacement Highway Patrol Vehicles Other Adjustments TOTAL FY 2013 9.2 6.0 2.8 (0.9) 17.1 FY 2013 526.9 27.8 1.2 0.9 (525.1) 0.9 32.6 Department of Public Safety AHCCCS State Employee Pay Adjustment Catalina Mountain School Closure Other Adjustments TOTAL Baseline Caseload and Inflation Provider Rate Increase AG Tobacco Litigation IT Network Security Solution Medicaid Reform Plan Other Adjustments FY 2013 TOTAL 9.3 Department of Health Services 1.8 (2.7) BHS State Match TXIX 0.1 Non-TXIX SMI Services 8.5 Arizona State Hospital Fund State Employee Pay Adjustment FY 2013 Other Adjustments 26.3 TOTAL 9.3 Department of Administration (0.8) (2.1) AFIS Replacement & IT Modernization 32.7 State Employee Pay Adjustment Statewide Transparency Website FY 2013 ENSCO 1.6 Rent Standard Adjustment (3.8) Other Adjustments (0.1) TOTAL (2.3) Postsecondary Education Self Funding TOTAL FY 2013 SMART Scholarships for Community College Students (1.1) TOTAL (1.1) Board of Regents School Facilities Board New Construction Lease-to-Own Debt Service Three-Year Building Renewal Grant Program Eliminate One-Time Building Renewal Grant Funding Other Adjustments TOTAL Department of Corrections State Employee Pay Adjustment Correctional Officers Leap Year Other Adjustments TOTAL Department of Juvenile Corrections Department of Racing Community Colleges Operating State Aid Formula Funding Equalization State Aid Formula Funding TOTAL Department of Revenue Refurbish Integrated Tax System State Employee Pay Adjustment Other Adjustments TOTAL Attorney General AG Pro-Rata Elimination Rent Standard Adjustment Expiring Cross-Border Grant Backfill Other Adjustments TOTAL Secretary of State Rent Standard Adjustment Persistent Digital Archives and Library Systems Chavez Litigation Costs Other Adjustments TOTAL FY 2013 University Performance Funding 2.1 Course Redesign Technology and Capital (7.4) TOTAL (5.3) Water Resources FY 2013 White Mountain Apache Water Rights Settlement 7.1 Other Adjustments 1.6 TOTAL 0.8 Real Estate 9.5 Auditing and Investigations Staff FY 2013 Other Adjustments 6.0 TOTAL 1.0 Land Department 0.7 0.9 Funding: Risk Revolving to General Fund 8.6 Rent Standard Adjustment Other Adjustments FY 2013 TOTAL 1.9 Weights and Measures 0.2 (0.1) Large Scale Test Truck with Crane 0.2 Other Adjustments 2.2 TOTAL FY 2013 64.1 38.7 7.0 2.3 (0.6) 111.5 FY 2013 95.0 0.3 0.1 (1.4) (2.1) (0.1) 91.8 FY 2013 10.0 10.0 FY 2013 30.0 15.3 45.3 FY 2013 2.0 0.2 2.2 FY 2013 0.2 0.2 0.4 FY 2013 11.4 0.9 0.4 12.7 FY 2013 0.3 0.0 0.3 Building a Budget Preparing the State’s General Fund budget is a year ’round process that determines the size and scope of government A RIZONA REVISED STATUTES § 35‐101 establishes a bifurcated budget process by defining 16 agencies as “annual budget units” and the remaining agencies as “biennial budget units.” Agencies identified as annual budget units include the following: • Department of Education • Board of Regents • Arizona State University • University of Arizona • Northern Arizona University • School Facilities Board • Department of Economic Security • Department of Corrections • Department of Juvenile Corrections • Arizona Health Care Cost Containment System (AHCCCS) • Department of Health Services • Department of Administration • Department of Transportation • The Judiciary (Supreme Court, Court of Appeals, Superior Courts) In accordance with the statutory definitions, the Execu‐ tive Recommendation provides funding on a bifurcated basis. However, the appropriations enacted during the 2011 Legislative session provided expenditure authority for only FY 2012, but not for FY 2013. The Executive has instructed all State agencies to provide formal requests for FY 2013 funding and has developed the Executive Budget recom‐ mendation for FY 2013 for all agencies. BUDGET PROCESS THE BUDGET PROCESS BEGINS on or before June 1, when the Governor’s Office of Strategic Planning & Budgeting (OSPB) issues instructions and forms required for agencies to submit their budget requests. Agency requests must be submitted to OSPB by September 1 unless an extension of up to 30 days is granted by the OSPB Director. Copies of the Assumptions & Methodology agencies’ budget requests are also provided to the Joint Legislative Budget Committee (JLBC) Staff. Annually, from September 1 to no later than five days from the opening of the Legislative session, the Executive reviews budget submissions and prepares the Executive Budget. The Budget contains operating and capital outlay expenditure plans, estimated revenues, and any Legislative changes necessary for implementation. Legislative review and deliberation of the Executive recommendation and other budget options typically begin shortly after the regular session convenes. Public hearings may be held by the Senate and House Appropriation Com‐ mittees. The Committees may recommend adoption of the Executive budget, or they may elect to recommend a budget containing other elements. Committee recommendations may subsequently become part of floor discussions in both chambers. Legislative leadership must assemble a budget package acceptable to a majority of members in each chamber. Before July 1, the Legislature adopts the budget through the passage of a General Appropriations and Capital Outlay Acts and any legislative changes necessary for the imple‐ mentation of the adopted budget. Once adopted by the House of Representatives and the Senate, the bills are then presented to the Governor for consideration. Upon presentation, the Governor has five days to sign the bills into law, veto them in their entirety, line‐item veto individual items of appropriations, or allow the bills to become law without a signature. The Legislature may, with a two‐thirds vote, override a veto or line‐item veto. The operating budget is prepared and enacted using a cash basis of accounting, which recognizes expenditures when paid and revenues when received by the Treasurer. Budgetary control is maintained by appropriation and the Executive Branch allotment process. The allotment process allocates appropriations across the four quarters of the fiscal year. Unless specifically enacted, operating appropriations lapse at the end of the fiscal year and the cash reverts to its fund source. Capital outlay appropriations continue until the project is completed or abandoned. 1 BUDGET REQUEST GUIDELINES STATE AGENCIES WERE NOT RESTRICTED in what could be requested. Budget requests in excess of $25,000 that were related to information technology were required to be accompanied by an approved Project Investment Justifica‐ tion (PIJ). The PIJ is receives a separate review by the Strategic Enterprise Technology Office at the Department of Administration. BUDGET BOUNDARIES THE STARTING POINT in building the budget, the base appro‐ priation, is the amount appropriated to an agency for FY 2012. RECOMMENDED CHANGES THE EXECUTIVE IS RECOMMENDING three basic types of changes to agency appropriations: • Standard adjustments are technical changes to funda‐ mental operating costs, such as annual changes for rent, retirement contributions, health and dental insurance premiums, or liability insurance. • Caseload increases or decreases generally require funding changes, assuming the agency’s mandates for services are unchanged. • Other recommendations provide for caseload increases or decreases, changes in legal mandates, and needed funding for the continued operation of State services through maintenance or upkeep of infra‐ structure or for better or more efficient provision of services. FY 2013, the Executive Budget separates issues into standard adjustments and all other expenditure changes ADMINISTRATIVE COSTS TO COMPLY WITH A.R.S. § 35‐115, each agency reports administrative costs with its budget submission. The calculation is based on administrative costs as a percent of total funds, which may include General Fund, Other Appropriated Funds and Non‐Appropriated funds. The definition of what constitutes an administrative cost is unique to each agency. The calculations provided are strictly for compliance with A.R.S. § 35‐115 and should not to be used for any other purpose. BUDGET FORMAT THE EXECUTIVE BUDGET CONTAINS agency mission statements, descriptions and budget performance measures. Budget Performance Measures. In accordance with A.R.S. § 35‐115, the Executive Budget Recommendation includes selected performance measures for the budget unit 2 for the previous fiscal year and for the budget‐recommen‐ dation years. OSPB has selected a series of performance measures that will most accurately communicate what the agency is doing and how well the agency is doing it. The hope is that this will offer decision makers and citizens a better understand‐ ing of agencies and their operations with a continuity of data, as the performance measures published will remain largely consistent from year to year. In addition to the performance measures, OSPB pub‐ lishes the Master List of State Government Programs annually, available at www.azospb.gov/publications. This reference document contains a comprehensive list of descriptions and performance measures for every program and subprogram within State agencies. STANDARD ADJUSTMENTS THE FY 2012 EXECUTIVE BUDGET RECOMMENDATION contains a series of technical adjustments, including: • Employee‐Related Expenditures for employee and personal services changes, • Risk Management, and • State‐owned, private, COP and PLTO rent charges. The general guidelines used in building the Executive Recommendation are discussed below. ERE. Two separate rates are used in calculating Employee‐Related Expenditures (ERE) funding requirements for changes to the number of employees or personal services: • An HDL rate calculates the health, dental and life insurance costs per full‐time‐equivalent employee based on specific rates of participation in the three insurance programs (health, dental and life) to which the State contributes. • A personal services marginal rate is calculated by adding the rates of FICA, workers’ compensation, unemployment insurance, a pro rata charge for personnel costs, a pro rata charge assessed for information technology, long‐term disability insur‐ ance, retirement sick leave pro rata, and retirement. The sum of the rates is multiplied by the total Personal Services amount, excluding members of Boards and Com‐ missions when appropriate. The following rates are used for the development of each of the various ERE components: FICA. The rate is comprised of a 6.2% Social Security tax on the first $106,800 of an employee’s Personal Services and a 1.45% Medicare tax on the full amount of an employee’s Personal Services. Workers’ Compensation. The Department of Administra‐ tion’s Risk Management Division develops rates every two FY 2013 Executive Budget years based on data provided by the National Council on Compensation Insurance, agency loss histories, and pro‐ gram budget needs. The Executive Recommendation includes adjustments for the new rates effective in July 2012. Unemployment Insurance. The rate of 0.4% of Personal Services is used for FY 2013. Any additional funding issues include this cost. Personnel Division Pro Rata. The rate of 1.1% of Personal Services is assessed on the payroll of the majority of State service agencies, pursuant to A.R.S. § 41‐764, to fund the operations of the Personnel Division of the Department of Administration. Attorney General Pro Rata. Currently, this charge equals 0.675% of personal services and is assessed on all agencies except those specifically exempted by A.R.S. § 41‐191.09(D). The pro rata is designated to reimburse the Department of Law for general counsel services. The Federal government has recently disallowed this practice for Federal funds. For FY 2013, the Executive Budget eliminates the Attorney General Pro Rata. Information Technology Pro Rata. The rate of 0.2% of per‐ sonal services is assessed on all agencies (except the universities and community colleges) to fund the operations of the Strategic Enterprise Technology Office at the Depart‐ ment of Administration. Disability Insurance. The rate of 0.36% of personal ser‐ vices is used for employees not covered by the State Retirement System, which provides disability insurance to active employees. Retirement. The following rates were used for FY 2013: Retirement Group.....................................................Rate State Retirement.......................................................10.48 Correctional Service Officers..................................11.14 NAU Police...............................................................36.81 UA Police..................................................................25.24 ASU Police................................................................24.42 Parks..........................................................................25.16 Game and Fish .........................................................50.54 DEMA Fire Fighters ................................................20.54 Attorney General Investigators ...........................136.04 Liquor Commission Investigators .........................46.99 Juvenile Corrections ................................................12.30 Public Safety.............................................................43.71 Capitol Police ...........................................................12.93 University Optional Retirement ..............................7.00 Life Insurance. Annual life insurance rates equal $23.40 per FTE. Health and Dental Insurance. The Executive includes a 13.2% rate reduction for State agencies for the plan year beginning January 1, 2013. No rates changes are anticipated for dental insurance. Retirement Accumulated Sick Leave Fund. Funding from a 0.4% pro rata assessment against personal services is used to compensate retiring employees for a portion of unused sick leave. Risk Management. As reported by the Department of Administration, risk management charges for FY 2013 will be the same as FY 2012. Rent. Rent adjustments for agencies occupying ADOA space are based on a rate of $15.08 per rentable square foot of office space and $4.50 per rentable square foot of storage space. Changes for all rent changes are included with the Executive recommendations for each agency. The square footage calculation is based on documenta‐ tion prepared by the Department of Administration’s General Services Division. The amounts required to cover Certificate of Participation (COP) and Privatized Lease to Own (PLTO) payments are based on data distributed by the Department of Administration General Accounting Office and General Services Division. All rent amounts for agencies occupying private space are based on rent charges reported by the agencies. OTHER RECOMMENDATIONS • Judiciary and Legislature. Except for standard adjust‐ ments, the Executive Budget continues Judicial and Legislative agencies at the FY 2012 amounts. • Appropriation Format and Legislative Changes. Each Executive recommendation for an agency’s appropriation format is located at the end of the agency’s recommendation. Some recommendations require Legislative changes that are necessary to implement the Executive Budget. These required changes are addressed in the Executive Budget Sum‐ mary book. • Actual Expenditures for FY 2011. The Executive Budget, by law, contains a reporting of the amounts actually expended from the immediately preceding fiscal year’s appropriations, by accounting object. The actual expenditures reported are provided by each agency and are reconciled by OSPB to the State Comptroller’s Annual Financial Report, by account‐ ing object. Elected Officials Retirement Plan (State)..............36.44 Retirement rate change funding is included in the recommendation for each agency. Assumptions & Methodology 3 ABA State Board of Accountancy Mission: To protect the public from unlawful, incompetent, unqualified, or unprofessional certified public accountants through certification, regulation, and rehabilitation. Description: The Arizona State Board of Accountancy consists of five Certified Public Accountants (CPAs) and two public members, all of whom are residents of the state and are appointed by the Governor. The Board qualifies candidates for the Uniform CPA Examination, certifies individuals to practice as CPAs, registers accounting firms owned by CPAs, and biennially renews certificates for CPAs and registered accounting firms. The Board also receives and investigates complaints, takes enforcement action against licensees for violation of statutes and regulations, monitors compliance with continuing education requirements, and reviews the work products of CPAs to ensure adherence to professional standards through the Board's peer review program. ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 273.1 362.8 3.9 3.5 0.0 182.9 31.1 6.7 327.3 425.1 6.7 10.1 0.0 391.0 13.2 10.0 327.3 425.1 6.7 10.1 0.0 391.0 13.2 10.0 326.1 425.1 6.7 10.1 0.0 393.6 13.2 10.0 1,434.8 1,887.8 1,887.8 1,924.4 1,434.8 1,887.8 1,887.8 1,924.4 1,434.8 1,887.8 1,887.8 1,924.4 Appropriated Fund Accountancy Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 2.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Number of Certified Public Accountants (Calendar Year) 12,500 Accountancy Board Fund 2.7 Rent Standard Adjustment 2.6 12,000 11,500 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 11,000 10,500 Accountancy Board Fund 2.6 10,000 Health Insurance Rate Reduction 9,500 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (11.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Accountancy Board Fund (11.3) $ 1,800 $ 1,600 Other Adjustments $ 1,400 State Employee Pay Adjustment $ 1,200 42.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 1,000 $ 800 Accountancy Board Fund $ 600 42.6 $ 400 Performance Measures $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Certification, Registration, and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,434.8 1,887.8 1,887.8 1,924.4 1,434.8 1,887.8 1,887.8 1,924.4 13.0 570.8 13.0 704.4 13.0 704.4 13.0 739.6 Category FTE Personal Services Agency Operating Detail Percent of applicants reporting very good or excellent service Number of compliance files established Number of exam candidates approved by Board to sit for the Uniform CPA exam Number of certificates issued Number of firms registered FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 92 87 90 90 126 142 126 126 618 496 610 610 439 375 409 409 129 118 120 120 The Executive recommends a lump-sum appropriation to the agency. State Board of Accountancy 5 ANA Travel - Out of State Aid to Others Other Operating Expenses Equipment Acupuncture Board of Examiners Mission: To protect the health, safety, and welfare of the public by regulating and maintaining standards of practice in the field of acupuncture. Agency - Approp. Funds 0.0 0.0 10.7 0.0 1.0 0.0 11.3 0.0 1.0 0.0 11.3 0.0 1.0 0.0 12.4 0.0 116.4 125.3 125.3 131.3 116.4 125.3 125.3 131.3 116.4 125.3 125.3 131.3 Appropriated Fund Description: The Board licenses and regulates acupuncturists and certifies auricular (ear) acupuncturists for detoxification or substance abuse programs. The Board also oversees the licensing and certification of acupuncture training and preceptorship training programs, continuing education programs and visiting professors. The Board evaluates professional competency, investigates complaints, and enforces the standards of practice for the acupuncture profession. The Board regulates the educational, clinical, and clean needle technique programs approved to teach the practice of acupuncture in the State. Number of Renewals Issued Acupuncture Board of Examiners Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.3 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Acupuncture Board of Examiners Fund 0.3 500 Rent Standard Adjustment 1.1 400 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 600 300 Acupuncture Board of Examiners Fund 200 1.1 Other Adjustments 100 State Employee Pay Adjustment 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 4.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Acupuncture Board of Examiners Fund 4.6 $ 140 Performance Measures $ 120 FY 2010 Actual $ 100 Number of renewals issued $ 80 Number of investigations conducted $ 60 Total number of licensees Total number of auricular acupuncture certificate holders Number of applications received $ 40 $ 20 FY 2011 Actual FY 2012 Expected FY 2013 Expected 483 512 525 1 0 8 550 8 488 511 525 550 63 53 65 65 63 64 75 75 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The Executive recommends a lump-sum appropriation to the agency. Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 116.4 125.3 125.3 131.3 116.4 125.3 125.3 131.3 1.0 72.1 13.6 19.5 0.5 1.0 75.3 16.0 20.5 1.2 1.0 75.3 16.0 20.5 1.2 1.0 79.1 17.1 20.5 1.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 6 Acupuncture Board of Examiners FY 2013 Executive Budget ADA Agency Summary - Appropriated Funds Arizona Department of Administration Mission: To provide effective and efficient support services to enable government agencies, state employees, and the public to achieve their goals. Description: The Arizona Department of Administration (ADOA) provides leadership, direction, and management information and support; financial and procurement support services; facility planning, design, development, construction, operations, and maintenance; employee and retiree health and benefits programs; timely, customer-driven human resources services; business-enhancing information services for the Department, state agencies, and Arizona citizens; customer service for small licensing agencies in general accounting and centralized office support; distribution of surplus state and federal property through a system that maximizes the dollar return on property sold; clean, safe, and environmentally friendly vehicles; an orderly environment where visitors, employees, and other persons conducting business with the State will be safe and secure; and services to agency customers and the public for the State's property and liability exposures and for state employee customers who have work-related injuries. The Agency has three goals: (1) To maintain the continuity of state government operations to ensure the safe and efficient delivery of government services, (2) To attract and retain a high-performance team of employees, and (3) To aggressively pursue innovative solutions and opportunities. Filled Employee Positions 1,000 900 800 700 600 500 400 300 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 1,200,000 $ 1,000,000 $ 800,000 $ 600,000 $ 400,000 $ 200,000 $0 Agency Operating Detail Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Administration Financial Services State Procurement Office Benefits Division Human Resources Arizona Strategic Enterprise Technology Office Capitol Police Risk Management General Services Division 543.4 7,964.0 2,318.0 3,840.4 14,463.2 19,420.5 1,660.0 7,369.0 1,699.0 5,020.7 15,278.9 24,210.0 1,660.0 17,369.0 1,699.0 5,020.7 15,278.9 24,210.0 1,696.0 101,181.0 1,758.1 5,116.2 14,921.4 36,190.6 2,175.4 71,138.3 31,761.4 0.0 90,321.8 35,193.7 0.0 100,721.8 35,193.7 0.0 92,054.0 33,168.7 Agency - Approp. Funds 153,624.7 180,753.1 201,153.1 286,085.9 724.7 23,976.7 10,424.1 24,321.0 341.8 16.1 1,213.2 87,224.5 4,582.3 1,441.0 83.9 689.7 29,646.2 11,406.5 27,581.9 300.5 38.9 1,213.2 95,284.6 3,680.2 1,532.7 10,068.4 689.7 29,646.2 11,406.5 27,581.9 300.5 38.9 1,213.2 95,284.6 3,680.2 1,532.7 30,468.4 689.7 31,128.5 11,512.6 30,996.9 300.5 38.9 1,213.2 93,414.2 11,080.2 1,532.7 104,868.3 153,624.7 180,753.1 201,153.1 286,085.9 17,449.8 13,865.0 15,843.7 442.2 0.0 14,858.6 14,564.8 17,903.8 552.5 3,120.5 24,858.6 14,564.8 17,903.8 552.5 3,120.5 106,675.7 14,207.3 17,872.1 569.4 4,714.6 598.2 0.0 3,897.4 8,639.8 0.0 2,070.2 96.4 714.1 250.0 5,108.3 10,038.9 0.0 2,378.8 451.4 714.1 250.0 5,108.3 10,038.9 0.0 2,378.8 451.4 714.1 5,850.0 5,206.8 10,077.9 0.0 2,423.8 452.6 71,682.8 17,414.7 90,321.8 18,672.4 100,721.8 18,672.4 92,054.0 23,351.4 1,624.4 1,817.2 1,817.2 1,916.2 153,624.7 180,753.1 201,153.1 286,085.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Cost Allocation Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Personnel Division Fund Capital Outlay Stabilization Corrections Fund Information Technology Fund Air Quality Fund State Web Portal Fund Special Employee Health Motor Pool Revolving Admin - Special Services State Surplus Property Federal Surplus Materials Property Risk Management Fund Automation Operations Fund Telecommunications Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI ENSCO COP 2,862.8 1,436.4 1,436.4 0.0 SLI County Attorney 1,213.2 1,213.2 1,213.2 1,213.2 Immigration Enforcement SLI Appropriations for 72.6 0.0 0.0 0.0 Named Claimants SLI HRIS COP 4,749.7 5,550.6 5,550.6 4,954.8 SLI Statewide 381.4 0.0 0.0 0.0 Telecommunications Contract Arizona Department of Administration 7 SLI Public Safety Communications SLI Statewide Information Security and Privacy Office SLI Risk Management Administrative Expenses SLI Risk Management Losses SLI Workers Compensation Losses SLI Utilities SLI State Surplus Property Sales Proceeds 0.0 527.2 527.2 542.4 0.0 853.1 853.1 868.0 6,772.3 8,746.1 8,746.1 8,746.1 34,192.8 43,480.2 43,480.2 44,691.2 23,796.1 30,620.2 30,620.2 30,955.2 7,326.2 1,152.9 7,975.6 1,260.0 7,975.6 1,260.0 8,156.5 1,260.0 Non-Appropriated Funds FY 2011 Actual 2010A Lottery Revenue Bond Debt Service Admin - AFIS II Collections Admin - Special Services Fund ADOA Special Events Fund Capitol Police Towing Fund Certificate of Participation Construction Insurance Fund Co-op St Purchasing DOA 911 Emergency Telecommunication Service Revolving ERE / Benefits Administration Federal Economic Recovery Fund Federal Grant IGA and ISA Fund Payroll Administration Fund PLTO Retiree Accumulated Sick Leave Special Employee Health State Employee Ride Share State Traffic and Parking Control Fund Statewide Donations Statewide E-Rate Program Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 21,630.0 20,709.6 20,709.6 37,499.6 1,282.3 2,343.6 2,306.6 1,307.2 794.8 737.8 749.0 746.6 2.7 32.9 20.4 22.3 86.4 132,802.5 872.7 0.0 93,007.9 2,326.1 0.0 93,007.9 2,326.1 0.0 114,422.4 2,233.0 2,686.3 17,137.5 2,776.6 18,834.8 2,672.5 16,963.4 2,684.7 15,675.9 Standard Adjustments Retirement Standard Adjustment 112.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 19.0 Personnel Division Fund 15.6 Capital Outlay Stabilization Fund 12.4 Corrections Fund 1.0 Information Technology Fund 6.5 Special Employee Health Fund 7.8 Motor Pool Revolving Fund 1.8 State Surplus Property Fund 1.3 Admin - Surplus Property/Federal Fund 0.2 Risk Management Fund 14.5 Automation Operations Fund 30.3 Telecommunications Fund Rent Standard Adjustment 2.4 (1,836.8) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund Personnel Division Fund Capital Outlay Stabilization Fund (2,073.2) 49.7 (44.2) 34,479.9 29,793.5 33,113.2 31,902.5 Corrections Fund 3.0 4,266.0 11,967.3 8,605.7 7,691.2 Information Technology Fund 4.7 226.5 4,693.7 16.6 2,463.9 4,057.5 138.2 1,946.3 3,584.0 129.9 2,130.8 3,433.8 143.1 Special Employee Health Fund 12,208.8 14,615.3 12,288.9 11,965.1 12,383.1 13,428.5 12,611.5 13,054.1 656,284.8 393.3 0.5 656,247.9 627.8 0.0 644,066.7 612.8 0.0 712,981.8 633.8 0.0 47.6 0.0 112.2 187.0 112.2 0.0 64.3 7.0 904,528.3 870,618.6 856,737.9 959,245.7 1,058,153.0 1,051,371.7 1,057,891.0 1,245,331.7 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 4,617.6 14,573.0 5,541.4 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations 8 FY 2013 6.5 Motor Pool Revolving Fund 20.1 State Surplus Property Fund 32.3 Risk Management Fund 8.8 Automation Operations Fund 86.4 Telecommunications Fund 69.1 Health Insurance Rate Reduction (318.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (60.4) Personnel Division Fund (46.9) Capital Outlay Stabilization Fund (42.2) Corrections Fund (1.9) Information Technology Fund (9.1) Special Employee Health Fund (25.7) Motor Pool Revolving Fund (8.0) State Surplus Property Fund (7.4) Admin - Surplus Property/Federal Fund (1.9) Risk Management Fund Arizona Department of Administration (41.9) FY 2013 Executive Budget FY 2013 Automation Operations Fund Telecommunications Fund (66.0) (6.9) Baseline Adjustments One-Time COSF Appropriation (613.3) Laws 2011, Chapter 34 transferred to the Capital Outlay Stabilization Fund $613,300 from various appropriations made for the Polly Rosenbaum Archives Building. This was a one-time appropriation to the Department and will not be continued in FY 2013. Capital Outlay Stabilization Fund Insurance Claim-Related Expenditures (613.3) 1,546.0 The Executive recommends increases of $1.2 million to the Risk Management Losses and Premiums special line item and $335,000 to the Workers’ Compensation Losses and Premiums special line item for projected increases in claims-related expenditures. Risk Management Fund HRIS COP Decrease 1,546.0 (595.8) The Executive recommends a decrease of ($595,800) from the Human Resources Information Solution – Certificate of Participation special line item to coincide with the decrease in the required COP payment in FY 2013. Personnel Division Fund ENSCO (595.8) (1,436.4) In 1991, State Government withdrew from a hazardous waste processing contract with Environmental Systems Company (ENSCO). To purchase the ENSCO site and settle related claims, the Florence prison was sold for $54.5 million and leased back to the State through a Certificate of Participation. The final COP payment was made in FY 2012, and the Executive recommends eliminating this special line item in FY 2013. General Fund (1,436.4) Other Adjustments AFIS Replacement & IT Modernization 106,300.0 The Arizona Financial Information System (AFIS), the computer system upon which virtually all of State Government depends, is at end-of-life. Replacing it is critical both to protecting the State against the serious risk of system failure and to modernizing government to serve the citizens of Arizona with greater accountability, transparency and efficiency. Because AFIS is obsolete, few programmers are familiar with the language in which it is programmed, and the State has only one experienced programmer to address system issues that are arising more and more frequently. Also because of its age, AFIS is unable to provide certain reports and interfaces that would prove valuable in properly managing State agencies. Agency Operating Detail FY 2013 Additional investments are needed to maintain the State Data Center and better manage the State’s critical IT resources. To fund these projects, the Executive recommends increased appropriations for each of the Agency’s IT funds as well as a $95.0 million General Fund appropriation to be deposited into a new Information Technology Modernization Fund. General Fund 95,000.0 Information Technology Fund 1,500.0 State Web Portal Fund 5,600.0 Automation Operations Fund 4,200.0 Federal Financial Participation Repayment 0.0 The State has several funds (e.g., the Personnel Division Fund and the Risk Management Fund) that collect revenue from State agencies to fund statewide services. Because agencies often pay part of these charges with federal dollars, any fund transfers from these funds are attributable in part to federal monies. While the federal government is willing to pay for services that directly support its work in Arizona, it requires the State repay the federal share of fund transfers made from State service funds. Additionally, the federal government has disallowed the Attorney General Legal Services Cost Allocation pro rata charge and part of the Information Technology pro rata charge and requires repayment of any federal dollars that were collected for these programs. In order to resolve these debts, the Executive recommends including language in the General Appropriations Act to allow the Department to use the Risk Management Fund as needed to settle all debts owed to the federal government that are attributable to disallowed expenditures and transfers of federal participation dollars in fiscal years 2011 through 2013. Polly Rosenbaum Building Operations & Maintenance 300.0 For FY 2012, the Department is using its one-time COSF monies to fund its new responsibility of maintaining the Polly Rosenbaum Archives Building. Because that funding will be eliminated in FY 2013, the Executive recommends an appropriation increase to fund ongoing maintenance and operations costs. Capital Outlay Stabilization Fund 300.0 Utility Increases 180.9 The Executive recommends an increase of $180,900 to the Utilities special line item to fund an expected increase in utility costs for ADOA-managed buildings. Capital Outlay Stabilization Fund 180.9 Statewide Transparency Website 100.0 Laws 2008, Chapter 312 required the Department to create a website to allow the public to search detailed accounts of the Arizona Department of Administration 9 FY 2012 FY 2013 State’s receipts and expenditures. Subsequent legislation expanded the scope of the website, but no funding was provided. While the Agency has absorbed the one-time costs of creating the website, the Executive recommends funding for ongoing operations and maintenance. General Fund 100.0 AG Pro-Rata Appropriation (200.1) General Fund The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. (33.7) Personnel Division Fund (27.6) Capital Outlay Stabilization Fund (21.9) (1.8) Information Technology Fund (11.6) Special Employee Health Fund (13.8) Motor Pool Revolving Fund (3.2) State Surplus Property Fund (2.3) Admin - Surplus Property/Federal Fund (0.4) Risk Management Fund (25.7) Automation Operations Fund (53.8) Telecommunications Fund (4.3) State Employee Pay Adjustment 1,794.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 301.8 Personnel Division Fund 247.6 Capital Outlay Stabilization Fund 196.7 Corrections Fund 16.6 Information Technology Fund 103.6 Special Employee Health Fund 123.7 Motor Pool Revolving Fund 28.3 State Surplus Property Fund 21.1 Admin - Surplus Property/Federal Fund 3.3 Risk Management Fund 230.5 Automation Operations Fund 482.1 Telecommunications Fund 10,000.0 Federal Financial Participation Repayment General Fund Corrections Fund The Arizona Financial Information System (AFIS) is at end-of-life and must be replaced in order to avoid the growing threat of system failure. Replacing the system will also increase efficiency across State Government and improve transparency. The Executive recommends initiating this multi-year project immediately and depositing $10.0 million into a new Information Technology Modernization Fund to cover start-up costs and move the project forward. 10,400.0 The Executive recommends $10.4 million be appropriated from the Risk Management Fund to repay debts owed to the federal government due to disallowed expenditures and transfers of federal participation dollars made in fiscal years 2010 and 2011. Risk Management Fund 10,400.0 Performance Measures FY 2010 Actual Percentage of ADOA's services with a minimum customer satisfaction rating of 6.0 Customer satisfaction with building maintenance Customer satisfaction with benefit plans Customer satisfaction with mainframe processing Customer satisfaction with administration of payroll process Customer satisfaction with tenant improvement process Customer satisfaction with voice telecommunications services Percentage of enterprise application development work completed within negotiated timeframe Customer satisfaction with information and data security services Statewide incident rate per 100 Full Time Equivalent (FTE) positions (accepted Risk Management claims) FY 2011 Actual FY 2012 Expected FY 2013 Expected 83 N/A 80 80 5.5 N/A 6.5 6.5 6.52 N/A 6.5 6.5 7.27 N/A 6.5 6.5 6.9 N/A 6.0 6.0 4.9 N/A 6.5 6.5 n/a N/A N/A 6.7 83 83 90 90 6.79 N/A 6.3 6.3 3.93 3.7 5.0 5.0 The Executive recommends a lump-sum appropriation by fund with special line items. 38.7 FY 2012 Supplemental Recommendations AFIS Replacement 10 FY 2012 10,000.0 Arizona Department of Administration FY 2013 Executive Budget HGA Appropriated Fund Office of Administrative Hearings Mission: To contribute to the quality of life in the State of Arizona by fairly and impartially hearing the contested matters of our fellow citizens arising out of state regulation. General Fund Healthcare Group Fund Agency - Approp. Funds 905.1 14.5 811.1 14.5 811.1 14.5 850.2 13.9 919.6 825.6 825.6 864.1 Non-Appropriated Funds FY 2011 Actual Description: The Office of Administrative Hearings is the main venue for administrative law hearings in Arizona. Administrative law judges are assigned, on a temporary or permanent basis, to preside over contested cases. IGA and ISA Fund FY 2012 Exec. Rec. FY 2013 Exec. Rec. 945.1 936.3 936.3 936.3 945.1 936.3 936.3 936.3 1,864.7 1,761.9 1,761.9 1,800.5 Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan Total Cases Executive Appropriation Recommendations FY 2013 9,000 8,000 Standard Adjustments 7,000 Retirement Standard Adjustment 6,000 5,000 2.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 4,000 3,000 2,000 General Fund 1,000 2.0 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Rent Standard Adjustment 15.0 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund and Total Funds Expenditure $ 3,000 General Fund 15.6 Healthcare Group Fund (0.6) Health Insurance Rate Reduction (6.7) $ 2,500 $ 2,000 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 1,500 $ 1,000 General Fund $ 500 (6.7) Other Adjustments $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Hearings FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 919.6 825.6 825.6 864.1 Agency - Approp. Funds 919.6 825.6 825.6 864.1 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 12.0 554.7 253.9 0.0 0.0 0.0 0.0 111.0 0.0 0.0 12.0 527.5 219.4 0.0 0.0 0.0 0.0 78.7 0.0 0.0 12.0 527.5 219.4 0.0 0.0 0.0 0.0 78.7 0.0 0.0 12.0 553.9 220.1 0.0 0.0 0.0 0.0 93.7 0.0 (3.6) 919.6 825.6 825.6 864.1 Agency - Approp. Funds Agency Operating Detail AG Pro-Rata Appropriation (3.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.6) State Employee Pay Adjustment 31.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 31.8 Performance Measures FY 2010 Actual Percent of evaluations rating the administrative law judge excellent or good in impartiality Average days from request for Office of Administrative Hearings FY 2011 Actual FY 2012 Expected FY 2013 Expected 94.74 94.95 94.95 94.95 58.88 53.59 53.59 53.59 11 Performance Measures FY 2010 Actual hearing to first date of hearing Average number of days from the conclusion of the hearing to transmission of the decision to the agency Number of hearings held FY 2011 Actual FY 2012 FY 2013 Expected Expected 18.45 17.20 17.20 17.20 3368 2246 2246 2246 The Executive recommends a lump-sum appropriation to the agency. 12 Office of Administrative Hearings FY 2013 Executive Budget AHA Arizona Department of Agriculture Mission: To regulate and support Arizona agriculture in a manner that encourages farming, ranching, and agribusiness while protecting consumers and natural resources. Description: The Department regulates all aspects of agricultural production and processing in the State, educates industry to foster compliance with regulations, promotes the agricultural community, informs consumers, and protects public health and safety. The Department inspects food, and non-food products, stray and diseased livestock, and areas subject to invasive plant species. Inspections may occur solely at the field or continue at the State Agricultural Laboratory. The Department also provides educational and conservation assistance by promoting best practices, issuing grants, and management of Arizona's native plant species. Licenes, Permits Issued 25,000 20,000 Native Plant and Cultural Resources Protection Pesticide Compliance and Worker safety Administrative Services State Agricultural Laboratory Agricultural Consultation and Training Agricultural Consulatation and Training 120.2 90.0 90.0 91.1 120.5 238.0 238.0 245.3 1,084.9 1,128.5 102.7 1,007.4 1,083.1 105.3 1,007.4 1,083.1 105.3 1,040.2 1,117.0 108.6 128.5 128.5 128.5 132.9 10,842.3 10,760.7 10,760.7 11,080.7 217.2 5,317.0 3,020.1 435.0 405.3 13.7 0.0 0.0 1,401.2 250.0 0.0 206.2 5,774.2 2,583.6 468.3 528.5 8.7 162.7 0.0 1,088.3 54.3 92.1 206.2 5,774.2 2,583.6 468.3 528.5 8.7 162.7 0.0 1,088.3 54.3 92.1 206.2 6,062.9 2,576.3 468.3 528.5 8.7 162.7 0.0 1,126.9 54.3 92.1 10,842.3 10,760.7 10,760.7 11,080.7 General Fund Agriculture Commercial Feed Egg & Egg Product Control Fund Pesticide Fund Agriculture Dangerous Plants Agriculture Seed Law Livestock Custody Fund Fertilizer Materials Fund Citrus, Fruit, & Vegetable Revolving Aquaculture Fund AZ Protected Native Plant 8,391.7 298.2 7,909.4 293.4 7,909.4 293.4 8,153.5 301.3 795.6 896.6 896.6 925.3 347.0 100.0 489.1 125.5 489.1 125.5 502.3 126.9 53.8 69.1 302.7 354.8 52.2 120.0 294.9 480.4 52.2 120.0 294.9 480.4 53.1 120.0 304.4 493.7 9.2 120.2 9.2 90.0 9.2 90.0 9.2 91.1 Agency - Approp. Funds 10,842.3 10,760.7 10,760.7 11,080.7 Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund 15,000 10,000 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 30,000 $ 25,000 $ 20,000 $ 15,000 $ 10,000 $ 5,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Food Safety and Quality Assurance Non-Food Product Quality Assurance Animal Disease, Ownership and Welfare Protection Pest Exclusion and Management Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,306.2 2,744.1 2,744.1 2,825.2 803.9 813.2 813.2 837.2 2,040.2 2,012.0 2,012.0 2,066.7 3,006.7 2,539.1 2,539.1 2,616.5 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Animal Damage Control 65.0 65.0 65.0 65.0 SLI Red Imported Fire Ant 23.2 23.2 23.2 23.2 SLI Agriculture 23.3 23.3 23.3 23.3 Employment Relations Board SLI Agricultural 128.5 128.5 128.5 132.9 Consultation and Training Pari-Mutuel Non-Appropriated Funds FY 2011 Actual Agricultural Consulting/Training Program Fund Agricultural Dangerous Plants Service Fees Increase Arizona Department of Agriculture FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 14.2 24.8 24.8 25.9 38.1 0.0 0.0 0.0 13 Non-Appropriated Funds FY 2011 Actual Agriculture Administrative Support Agriculture Designated/Donations Arizona Federal/State Inspection Fund AZ Citrus Research Council AZ Iceberg Lettuce Research Fund Beef Council Fund Commodity Promotion Fund Cotton Research and Protection Council Fund Equine Registration Fund Federal Grant Grain Council IGA and ISA Between State Agencies Indirect Cost Recovery Fund Leafy Green Marketing Committee Livestock and Crop Conservation Fund Livestock Inspection Service Fee Increase Fund Nuclear Emergency Management Fund Pesticide Service Fee Increase Fund FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 40.2 49.0 49.0 50.8 469.5 402.6 402.6 414.1 3,307.4 3,260.3 3,260.3 3,348.2 35.0 127.6 28.0 100.0 28.0 100.0 28.0 86.2 267.4 6.3 267.0 10.0 267.0 10.0 267.0 10.0 2,542.8 1,964.2 1,964.2 1,999.3 1.6 5,566.8 166.8 0.0 1.0 5,788.0 133.2 75.8 1.0 5,788.0 133.2 75.8 1.0 5,879.8 133.2 77.6 92.5 211.0 211.0 226.0 183.9 455.0 455.0 455.0 1,472.3 1,114.5 1,114.5 1,119.1 185.9 0.0 0.0 0.0 Fertilizer Materials Fund 0.6 Citrus, Fruit, and Vegetable Revolving Fund 0.6 AZ Protected Native Plant Fund 0.1 Rent Standard Adjustment Agency - Nonapp. Funds Agency Total - All Funds 0.0 92.1 92.1 95.2 142.7 0.0 0.0 0.0 14,661.0 13,976.5 13,976.5 14,216.4 25,503.3 24,737.2 24,737.2 25,297.2 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 5,566.8 5,788.0 4,266.6 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. 38.6 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 26.7 Agriculture Commercial Feed Fund 1.6 Egg and Egg Product Control Fund 1.4 Pesticide Fund 1.6 Agriculture Seed Law Fund 0.2 Fertilizer Materials Fund 1.6 Citrus, Fruit, and Vegetable Revolving Fund 5.5 Health Insurance Rate Reduction (91.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (73.7) Agriculture Commercial Feed Fund (1.3) Egg and Egg Product Control Fund (8.1) Pesticide Fund (1.9) Agriculture Dangerous Plants Fund (0.4) Agriculture Seed Law Fund (0.6) Fertilizer Materials Fund (1.5) Citrus, Fruit, and Vegetable Revolving Fund (2.9) AZ Protected Native Plant Fund (1.1) Other Adjustments State Employee Pay Adjustment 351.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 21.9 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 7.1 Egg and Egg Product Control Fund 33.3 Pesticide Fund 12.7 Agriculture Dangerous Plants Fund 1.7 Agriculture Seed Law Fund 1.2 Fertilizer Materials Fund 8.8 Citrus, Fruit, and Vegetable Revolving Fund 10.1 AZ Protected Native Plant Fund 2.1 17.1 Agriculture Commercial Feed Fund 0.5 Egg and Egg Product Control Fund 2.1 Pesticide Fund 0.8 Agriculture Dangerous Plants Fund 0.1 Agriculture Seed Law Fund 0.1 14 274.0 Agriculture Commercial Feed Fund Performance Measures FY 2010 Actual Percent of meat and poultry product tests in compliance with bacteria, drug and chemical residue Arizona Department of Agriculture 99 FY 2011 Actual 99 FY 2012 Expected 99 FY 2013 Expected 99 FY 2013 Executive Budget Performance Measures FY 2010 Actual requirements USDA disease status for Arizona for bovine brucellosis and tuberculosis, and swine pseudo rabies Number of pest interceptions within the state interior FY 2011 Actual FY 2012 FY 2013 Expected Expected Free Free Free Free 13,613 9,927 10,000 10,000 The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail Arizona Department of Agriculture 15 HCA Arizona Health Care Cost Containment System Mission: To provide comprehensive, quality health care for those in need. Description: Arizona Health Care Cost Containment System (AHCCCS), the State's Medicaid Agency, uses federal, state and county funds to provide health care coverage to the State's acute and long term care Medicaid population and low income groups. Since 1982, when it became the first statewide Medicaid managed care system in the nation, AHCCCS has operated in accordance with a federal Research and Demonstration waiver that allows for a total managed care model of service delivery. Unlike programs in other states, that rely solely on fee-for-service reimbursement, AHCCCS makes prospective capitation payments to contracted health plans responsible for the delivery of care. The result is a managed care system that mainstreams recipients, allows them to select their providers, and encourages quality costeffective care and preventive services. The AHCCCS Administration is responsible for planning, developing, implementing, and administering the health care programs for low income Arizonans. Specifically, the AHCCCS Administration provides direction and oversight of operations related to eligibility, enrollment, quality of care, contracted health plans and providers, and procurement of contracted services. AHCCCS oversees three main programs: AHCCCS Acute Care The majority of Acute Care Program recipients are children and pregnant women who qualify for the federal Medicaid Program (Title XIX). Although most are enrolled in AHCCCS contracted health plans, American Indians and Alaska Natives in the Acute Care Program may choose to receive services through either the contracted health plans or the American Indian Health Program. AHCCCS also administers an emergency services only program for individuals who, except for immigration status, would qualify for full AHCCCS benefits. The Children’s Health Insurance Program (CHIP), referred to as KidsCare, offers affordable insurance coverage for low-income families. Children under age 19 may qualify for the program if their family’s income exceeds the limit allowed for Medicaid eligibility, but is below 200% of the Federal Poverty Level (FPL). With the exception of American Indians, who are exempt in accordance with federal law, parents pay a monthly premium based on income. The KidsCare program results in a federal contribution that equates to a $3.00 federal match for every $1.00 spent by the State. As with the Medicaid Acute Care Program, American Indian and Alaska Native children may elect to receive care through an AHCCCS-contracted health plan or the American Indian Health Program. The majority of children enrolled in KidsCare, however, are enrolled in AHCCCS health plans and receive the same services available to children in the Medicaid Acute Care Program. In an effort to comply with Maintenance of Effort (MOE) requirements in the face of significant State budget concerns, enrollment in the KidsCare Program was frozen as of January 1, 2010. As of July 1, 2011 17,642 KidsCare members remain enrolled. Major medical programs include acute care, long term care, and behavioral health services. The AHCCCS Administration determines eligibility for the Arizona Long Term Care System (ALTCS), Children's Health Insurance Program (KidsCare), Qualified Medicare Beneficiaries, and other Supplemental Security Income (SSI)-related Medical Assistance Only programs. Federal funding through Title XIX and Title XXI of the Social Security Act is provided to AHCCCS by the Centers for Medicare and Medicaid Services (CMS), a component of the U.S. Department of Health and Human Services. ALTCS The Arizona Long Term Care System (ALTCS) provides acute care, behavioral health services, long-term care, and case management to individuals who are elderly, physically disabled, or developmentally disabled and meet the criteria for institutionalization. Whereas ALTCS members account for only 3.8% of the AHCCCS population, they account for approximately 23.7% of the costs. The ALTCS program encourages delivery of care in alternative residential settings. As in the Acute Care Program, elderly physically disabled and developmentally disabled members of all ages receive care through contracted plans called program contractors. KidsCare 16 Arizona Health Care Cost Containment System FY 2013 Executive Budget ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Average Capitated Population 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 14,225.8 1,471.9 21.0 10.1 1,326,376.6 7,110.6 627.5 53,250.4 8,553.4 1,836.3 39.3 10.8 1,389,902.1 6,257.4 173.1 52,184.3 8,553.4 1,836.3 39.3 10.8 1,426,690.7 6,257.4 173.1 53,548.6 8,778.9 1,971.3 43.8 10.8 1,497,882.2 7,320.7 215.2 53,384.3 Agency - Approp. Funds 1,419,595.6 1,478,202.0 1,516,354.9 1,590,278.2 Appropriated Fund 200,000 1,301,689.2 38,295.8 1,363,735.0 38,295.8 1,337,248.0 41,700.9 1,396,325.7 47,632.7 19,222.9 19,222.9 21,225.6 24,158.2 46,276.2 30,176.4 30,176.4 15,076.5 2,338.0 3,161.1 3,161.1 3,161.1 1,773.7 10,000.0 3,496.3 20,114.5 3,496.3 79,346.6 3,603.0 100,321.0 20,000,000 General Fund Tobacco Tax and Health Care Fund Tobacco Products Tax Fund Children's Health Insurance Program Budget Neutrality Compliance Fund Healthcare Group Fund Prescription Drug Rebate Fund 15,000,000 Agency - Approp. Funds 1,419,595.6 1,478,202.0 1,516,354.9 1,590,278.2 0 General Fund Core Administration Expenditures 40,000,000 35,000,000 30,000,000 25,000,000 10,000,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Long Term Care 8,735.3 9,876.7 9,876.7 11,205.7 Clawback Payments SLI Rural Hospital 3,499.1 4,047.1 3,975.7 4,172.7 Reimbursement SLI Acute Care Clawback 22,126.2 34,142.4 34,241.3 38,204.3 Payments SLI Deferred Capitation 86,311.8 117,688.2 117,688.2 117,688.2 5,000,000 0 General Fund and Total Funds Expenditure $ 8,000,000 $ 7,000,000 Non-Appropriated Funds $ 6,000,000 FY 2011 Actual $ 5,000,000 $ 4,000,000 $ 3,000,000 $ 2,000,000 $ 1,000,000 $0 Agency Summary - Appropriated Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Administration Long Term Care Acute Care Proposition 204 Healthcare Group Children's Health Insurance Program Program Transfer 46,577.2 141,106.8 778,426.3 396,589.1 1,773.7 55,122.6 52,427.1 174,385.8 993,537.8 179,751.4 3,496.3 38,193.0 53,791.4 178,427.9 1,125,395.8 75,749.7 3,496.3 37,059.0 55,965.2 175,668.7 1,305,880.5 (18,030.8) 3,603.0 19,213.7 0.0 36,410.6 42,434.8 47,977.9 Agency - Approp. Funds 1,419,595.6 1,478,202.0 1,516,354.9 1,590,278.2 1,415.3 16,501.8 1,407.3 19,245.3 1,407.3 19,245.3 1,421.8 20,671.0 Program/Cost Center Category FTE Personal Services Agency Operating Detail AHCCCS - 3rd Party Collection AHCCCS Fund AHCCCS Intergovernmental Service Fund Arizona Tobacco Litigation Settlement Fund County Funds Federal Economic Recovery Fund Federal Grant Healthcare Group Fund IGA and ISA Fund Long Term Care System Fund Medically Needy Account Prescription Drug Rebate Fund Prop 202 - Trauma and Emergency Services Proposition 204 Protection Account Statewide Donations Arizona Health Care Cost Containment System FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 7,728.7 (3.2) (3.2) 617.5 4,914,970.6 5,978.6 3,989,511.8 7,000.0 3,989,511.8 7,000.0 4,417,332.9 7,137.8 99,161.6 108,211.3 108,211.3 99,130.1 0.0 746,294.0 302,984.4 110,838.9 302,984.4 110,838.9 303,069.7 49,445.8 124,672.6 36,004.7 790,794.0 1,649,487.5 61,692.7 29,338.4 869,804.3 1,475,246.0 61,692.7 29,338.4 869,804.3 1,475,246.0 59,813.5 27,648.5 954,999.2 1,472,086.3 35,519.9 (46,385.7) 38,767.0 (70,804.3) 38,767.0 (70,804.3) 38,767.0 (72,572.6) 16,505.3 19,664.2 19,664.2 20,474.9 40,367.9 40,367.9 44,573.7 50,732.2 12.8 10.0 10.0 10.0 17 Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan Agency - Nonapp. Funds 8,421,112.3 Agency Total - All Funds 9,840,708.0 FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. Baseline Adjustments 6,982,629.4 6,986,835.2 7,428,692.7 Baseline Caseload and Inflation 8,460,831.4 8,503,190.1 9,018,970.9 During the 2011 session, the Legislature reduced AHCCCS's appropriation and passed a series of program freezes and cuts, referred to as the “Medicaid Reform Plan,” that were necessary to enable AHCCCS to operate within this appropriation. In order to independently track savings due to the Medicaid Reform Plan, the Executive has prepared a separate forecast for baseline caseload and inflation, excluding the reform plan, and then layered on top and listed as a separate budget issue the Medicaid Reform Plan Savings. Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 7,291,301.9 5,841,633.1 6,111,441.7 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 75.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 64.4 Children's Health Insurance Program Fund 3.3 Healthcare Group Fund 7.0 Prescription Drug Rebate Fund 0.3 Rent Standard Adjustment (0.1) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (0.1) Health Insurance Rate Reduction (290.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (259.8) Children's Health Insurance Program Fund (19.2) Healthcare Group Fund (11.0) 526,040.5 For baseline caseload and inflation, the Executive recommends a total increase of $526.0 million for Caseload and Inflation growth in AHCCCS programs, which includes $526.9 million from the General Fund and a ($15.2 million) reduction to the Children's Health Insurance Program (CHIP) Fund. The CHIP Fund reduction is due to the freeze in new membership in KidsCare (the Arizona CHIP program), which has been in place since January 2010. Since that time, KidsCare membership has dropped by 70%, or approximately 31,000 children. In the baseline forecast for capitation, which is AHCCCS’s largest program, the Executive forecasts a caseload increase of 5.1% in June 2012 over June 2011, and 4.4% in June 2013 over June 2012. These growth rates represent the continuation of a significant slowdown in caseload growth from its peak growth of 24% from December 2008 to December 2009, as the Executive forecasts a continued slow recovery in the economy. (AHCCCS caseloads tend to be counter-cyclical, rising when the economy slows, resulting in the loss of jobs and health insurance.) Capitation rates paid to health plans consist of two elements, outside of policy changes, medical inflation and per-member utilization of services. Each of these elements grow at approximately 3% annually, based on historic averages. In the baseline forecast for capitation rates, the Executive proposes that (a) AHCCCS fund only utilization growth but (b) provider rates be frozen, for an estimated capitation rate change of 3%. In a separate budget issue, the Executive recommends a 3% increase in provider rates for select provider groups. The recommendation also includes a Federal Medical Assistance Percentage (FMAP) of 67.3% for the first quarter of FY 2013 and an FMAP of 65.68% for the remaining three quarters of FY 2013. As Tobacco Tax revenues are used to offset General Fund obligations, the General Fund figure includes a decrease of ($24.6 million) as a result of a forecast $24.6 million increase in AHCCCS Tobacco Tax revenues. Included in the Tobacco Tax increases are $9.3 million from the appropriated Tobacco Tax and Health Care Fund (Medically Needy Account) and $4.9 million from the appropriated Tobacco Products Tax Fund (Emergency Health 18 Arizona Health Care Cost Containment System FY 2013 Executive Budget FY 2013 Services Account). The non-appropriated Proposition 204 Protection Account is also forecast to grow by $10.4 million. Additionally, the General Fund total includes a $9.0 million increase to offset a forecast corresponding loss in nonappropriated Tobacco Litigation Settlement Fund receipts. General Fund IT Network Security Solution 526,922.2 Tobacco Tax and Health Care Fund 9,336.9 Tobacco Products Tax Fund 4,935.3 Children's Health Insurance Program Fund Medicaid Reform Plan FY 2013 (15,153.9) (444,883.7) During the 2011 session, the Legislature reduced AHCCCS's appropriation and passed a series of actions that were necessary to enable AHCCCS to operate within this appropriation, referred to as the “Medicaid Reform Plan.” In order to monitor these savings independently of caseload changes, the Executive has forecast the Medicaid Reform Plan savings as a separate budget issue from baseline caseload growth. 941.0 A recent series of successful hacking attacks, including one against the Department of Public Safety’s computer systems, has highlighted the State's information technology vulnerability. Given the vast quantity of personal data contained in its databases, AHCCCS faces a particularly significant liability. The Executive recommends $1.9 million total fund, of which $923,900 is General Fund and $17,100 is CHIP Fund, to provide a Security Monitoring, Analysis, and Response System to centralize, detect, mitigate and report on priority threats and to purchase and deploy improved encryption technologies. Ongoing costs in FY 2014 and beyond are expected to be $106,800 (General Fund) for software licensing and maintenance. General Fund Children's Health Insurance Program Fund SSI MAO Temporary Staff 923.9 17.1 0.0 The most significant element of the plan was enacted as Laws 2011, 1st Special Session, Chapter 1, requiring AHCCCS to submit a waiver request to the federal government for an exemption to federal law to reduce eligibility for the childless adult and spenddown populations. While some of the provisions of the Medicaid Reform Plan were rejected by the federal government, the State has implemented population freezes and cuts, provider rate reductions, a limitation on inpatient hospital stays, and the use of the Prescription Drug Rebate Fund to offset General Fund costs. One of the unintended consequences of the recent freeze in coverage for childless adults is that many of those individuals have sought continued medical coverage through the SSI MAO (Supplemental Security Income/Medical Assistance Only) program. During the first four months of FY 2012, the number of SSI MAO applications has almost doubled. Along with the rest of State Government, during the budget crisis AHCCCS absorbed significant reductions in its administrative budget, leaving the agency with few resources available to shift to this unit. The Executive forecasts that, in FY 2013, the AHCCCS portion of the Medicaid Reform Plan will save Arizona ($525.1 million) General Fund. Of this amount, ($80.2 million) is due to the use of the Prescription Drug Rebate Fund to offset General Fund appropriations. The unit performs two primary tasks: (1) initial determinations for eligibility and (2) redeterminations of existing members' eligibility. The federal Centers for Medicare and Medicaid Services (CMS) mandates standards for error rates and timeliness only for initial determinations. Facing a large workload increase, AHCCCS has thus been forced to shift resources to processing of initial applications, thereby delaying redeterminations of eligibility. As the Executive Recommendation was issued, 72% of redeterminations were 90 days or more past due. As, historically, approximately 9% of redeterminations result in members being found no longer eligible for AHCCCS services, these delays in redeterminations result in AHCCCS continuing to pay capitation payments for ineligible members. General Fund Prescription Drug Rebate Fund (525,085.2) 80,201.5 Other Adjustments Provider Rate Increase 27,830.4 Since the beginning of the recession in 2008, Arizona Medicaid providers have sustained a series of rate freezes and cuts. The Executive recommends a 3% provider rate increase for physicians, behavioral health service providers, nursing facilities, home service providers and ambulatory surgery centers for services provided after October 1, 2012. Before implementing any rate increases, AHCCCS must ensure that the increases are consistent with federal requirements, including any appropriate cost studies. The Executive recommends $27.8 million General Fund for the estimated State costs of these provider rate increases. General Fund 27,830.4 941.0 Agency Operating Detail The Executive recommends an additional 24.0 temporary eligibility determination staff for AHCCCS at a General Fund cost of $608,000, to be matched with the same amount of federal funds. However, since the work performed by these staff will avoid increased cost due to delayed redeterminations, the Executive proposes shifting this amount from the Capitation program to the Administration program at AHCCCS, for a zero net cost to the General Fund. Further, the Executive recognizes that, should federal health reform stay in place, with the January 1, 2014, mandated increases in Medicaid populations and linkages to the Arizona Health Care Cost Containment System 19 FY 2013 FY 2012 Health Exchange, the staffing situation in the Medicaid agencies will require further evaluation. Thus, the Executive is designating these positions as temporary. During the 2011 session, the Legislature reduced AHCCCS's appropriation and passed a series of program freezes and cuts, referred to as the “Medicaid Reform Plan,” that were necessary to enable AHCCCS to operate within this appropriation. In order to independently track savings due to the Medicaid Reform Plan, the Executive has prepared a separate forecast for baseline caseload and inflation, excluding the reform plan, and then layered on top and listed as a separate budget issue the Medicaid Reform Plan Savings. AG Tobacco Litigation 1,200.0 Beginning in April 2012, the Attorney General’s Office will be defending the State in arbitration to determine if the State has diligently enforced the tobacco master settlement agreement. The arbitration in April will cover the monies the State received in 2003. The State is responsible for participating in arbitration for both the common case (all members of the agreement) and then the state specific case. The Executive recommends General Fund increases of $1.4 million in FY 2012 and $1.2 million in FY 2013 for professional and outside services and travel costs of defending the State's enforcement of the tobacco master settlement agreement. The Executive proposes that the appropriation be made in AHCCCS' budget and that the AG’s Office execute an ISA with AHCCCS. General Fund 1,200.0 CRS Base Modification 0.0 In Laws 2011, Chapter 31, Children's Rehabilitative Services (CRS), including both program and administrative funding, was relocated from the Department of Health Services to AHCCCS. However, when the funding was moved, it was all placed in the program portion of the AHCCCS budget. The Executive recommends an additional 5.0 FTE positions and an accompanying fund shift from the CRS special line item to the AHCCCS Operating Lump Sum, for a zero net impact on the General Fund. State Employee Pay Adjustment 1,163.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 994.9 Children's Health Insurance Program Fund 52.8 Healthcare Group Fund 110.7 Prescription Drug Rebate Fund 4.7 FY 2012 Supplemental Recommendations Baseline Caseload and Inflation FY 2012 490,802.4 For baseline caseload and inflation, the Executive recommends a total increase of $490.8 million for Caseload and Inflation growth in AHCCCS programs, which includes $485.4 million from the General Fund and a $9.6 million increase in tobacco tax funds. Included in the Tobacco Tax increases are $3.4 million from the appropriated Tobacco Tax and Health Care Fund (Medically Needy Account) and $2.0 million from the appropriated Tobacco Products Tax Fund (Emergency Health Services Account). The non-appropriated Proposition 204 Protection Account is also forecast to grow by $4.2 million. Additionally, the General Fund total includes a $9.0 million increase to offset a forecast corresponding loss in non-appropriated Tobacco Litigation Settlement Fund receipts. General Fund 485,394.6 Tobacco Tax and Health Care Fund 3,405.1 Tobacco Products Tax Fund 2,002.7 Medicaid Reform Plan (426,162.5) During the 2011 session, the Legislature reduced AHCCCS's appropriation and passed a series of actions that were necessary to enable AHCCCS to operate within this appropriation, which is referred to as the “Medicaid Reform Plan.” In order to monitor these savings independently of caseload changes, the Executive has forecast the Medicaid Reform Plan savings as a separate budget issue from baseline caseload growth. The most significant element of the plan was enacted as Laws 2011, 1st Special Session, Chapter 1, requiring AHCCCS to submit a waiver request to the federal government for an exemption to federal law to reduce eligibility for the childless adult and spenddown populations. While some of the provisions of the Medicaid Reform Plan were rejected by the federal government, the State has implemented population freezes and cuts, provider rate reductions, a limitation on inpatient hospital stays, and the use of the Prescription Drug Rebate Fund to offset General Fund costs. The Executive forecasts that, in FY 2012, the AHCCCS portion of the Medicaid Reform Plan will save Arizona ($485.4 million). Of this amount, ($59.2 million) is due to the use of the Prescription Drug Rebate Fund to offset General Fund appropriations. General Fund Prescription Drug Rebate Fund 20 Arizona Health Care Cost Containment System (485,394.6) 59,232.1 FY 2013 Executive Budget Performance Measures FY 2012 Reallocation to DHS FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 15.26 23.14 15.75 15.75 (27,851.3) The federal Patient Protection and Affordable Care Act (PPACA), commonly referred to as “federal health reform,” permits states to claim rebates from drug manufacturers for members that receive drugs through Medicaid Managed Care Organizations in the same manner as members that receive drugs through fee-for-service programs. The State's portion of these reimbursements is 15.1% of the Average Manufacturer Price for brand name drugs and 11% for generic prescription drugs, divided between the federal government and State at the Federal Medical Assistance Percentage (FMAP). In FY 2012, the Executive recommends using prescription drug rebate funds to offset AHCCCS General Fund costs, which will enable Arizona to avoid a General Fund supplemental appropriation to the Medicaid agencies as a group (i.e., AHCCCS, DHS and DES). Appropriating the drug rebate funds to AHCCCS will make $27.9 million of General Fund available to be reallocated to the Department of Health Services to avoid a shortfall in that agency. Within the AHCCCS budget, as viewed in isolation, the Executive proposes reducing AHCCCS' General Fund appropriation by ($27.9 million). General Fund Cost avoidance from Predetermination Quality Control Program (in millions) Percent of members utilizing home 70.5 72.4 72.0 73.0 and community based services Percent of well child visits in the first 62.7 63.4 62.0 64.0 15 months of life - Early Periodic Screening, Diagnosis and Treatment current HEDIS national mean for Medicaid managed care plans is 45%, so AHCCCS  The is performing well above the comparable national average. Percent of women receiving cervical 62.8 60.9 58.0 55.0 screening within a three year period Percent of well child visits in the first 62.7 63.4 64.0 65.0 15 months of life - Early Periodic Screening, Diagnosis and Treatment KidsCare monthly enrollment 30,672 18,464 12,602 11,213 Percent of children with access to primary care provider Percent of employee turnover 88.8 90.0 90.0 91.0 21.9 14.6 13.4 15.0 The Executive recommends a lump-sum appropriation by program with special line items. (27,851.3) AG Tobacco Litigation 1,364.3 Beginning in April 2012 the Attorney General’s Office will be defending the State in arbitration to determine if the State has diligently enforced the tobacco master settlement agreement. The arbitration in April will cover the monies the State received in 2003. The State is responsible for participating in arbitration for both the common case (all members of the agreement) and then the state specific case. The Executive recommends General Fund increases of $1.4 million in FY 2012 and $1.2 million in FY 2013 for professional and outside services and travel costs of defending the State's enforcement of the tobacco master settlement agreement. The Executive proposes that the appropriation be made in AHCCCS' budget and that the AG’s Office execute an ISA with AHCCCS. General Fund 1,364.3 Performance Measures Percent of administrative invoices paid within 30 days Refers to administrative invoices  FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 94.3 97.4 97.0 97.0 Percent of total programmatic payments completed electronically Percent of enrollees filing a grievance 97.5 98.3 97.0 97.0 0.9 0.2 1.0 0.5 Member satisfaction: percent of choice exercised in moving from current health plan Percent of applications processed on time 2.0 1.5 4.5 4.5 83 84 97 97 Agency Operating Detail Arizona Health Care Cost Containment System 21 APA State Board of Appraisal Mission: To promote quality real estate appraisal in Arizona that protects the health, safety, and welfare of the public. Description: The State Board of Appraisal processes the applications of those applying for real estate appraiser licensure, certification, or tax agent registration assuring that all candidates meet the education and experience requirements as set forth by the Appraisal Qualification Board of the Appraisal Foundation. The Board acts as a disciplinary body to ensure conformity to the statutes, rules, and regulations governing the agency. In addition to protecting the interests of the general public, the Board provides services for appraisers, course providers, property tax agents, other state appraisal boards, and lending institutions. The Board is also charged with the registration and regulation of all Appraisal Management Companies. Number of Licensees Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Cost Allocation Transfers Out Agency - Approp. Funds 153.1 6.2 5.9 0.0 70.9 19.7 0.0 15.2 221.6 8.0 17.0 0.0 57.5 5.5 10.0 11.9 221.6 8.0 17.0 0.0 57.5 5.5 10.0 11.9 221.6 8.0 17.0 0.0 64.2 5.5 10.0 11.9 605.7 755.5 755.5 777.3 605.7 755.5 755.5 777.3 605.7 755.5 755.5 777.3 Appropriated Fund Board of Appraisal Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 3,500 3,000 Board of Appraisal Fund 1.1 Rent Standard Adjustment 6.7 2,500 2,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 1,500 1,000 Board of Appraisal Fund 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 6.7 Health Insurance Rate Reduction (4.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund and Total Funds Expenditure $ 700 Board of Appraisal Fund $ 600 (4.0) Other Adjustments $ 500 State Employee Pay Adjustment 18.0 $ 400 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 300 $ 200 Board of Appraisal Fund 18.0 $ 100 Performance Measures $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Average days from receipt of complaint to resolution Number of new and existing licensees FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 135 130 130 130 2,745 2,437 2,341 2,285 265 170 170 170 Licensure/Certification/Reg ulation 605.7 755.5 755.5 777.3 Number of complaints received against appraisers Agency - Approp. Funds 605.7 755.5 755.5 777.3 The Executive recommends a lump-sum appropriation to the agency. 4.5 233.1 101.6 5.5 298.9 125.1 5.5 298.9 125.1 5.5 313.8 125.3 Category FTE Personal Services ERE Amount 22 State Board of Appraisal FY 2013 Executive Budget HUA Number of Outreach Activities Arizona Commission on the Arts Mission: To imagine an Arizona where everyone can participate in and experience the arts. Description: The Arizona Commission on the Arts is a 45-year old agency of the State of Arizona whose primary functions include providing leadership, programs, services and grants to support the availability and sustainability of arts and arts education programs. These functions are coincident with the agency’s statutorily required duties which include (ARS §41-982, §41-983): Stimulating the arts in Arizona by encouraging the study and presentation of the arts as well as encouraging public interest and participation; 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 6,000 Working with arts organizations in the State to encourage public participation in and appreciation of the arts; and $ 5,000 Encouraging public interest in the State’s cultural heritage and expanding the State’s cultural resources. $ 3,000 Through the Arts Commission, the State of Arizona and the National Endowment for the Arts make strategic investments of public dollars to support the statewide arts and culture sector, helping Arizona communities to attract and retain skilled workers and creative businesses. This public investment leverages additional contributions from the private sector, increasing the sustainability of Arizona’s arts and culture sector and thereby promoting statewide economic growth. $ 1,000 The Arts Commission’s other significant function is to compete for, receive and disburse federal arts funding from the National Endowment for the Arts (ARS §41-983). (60% of the NEA’s grantmaking budget is delivered via direct grants to nonprofit organizations across the nation; 40% is delivered via a competitive grant process to state and regional arts agencies, as Partnership Agreements.) To receive federal arts funding, state arts agencies must meet criteria outlined by the NEA. In addition, in keeping with the arts and culture sector’s “matched investment” infrastructure, state arts agencies are required to match their annual NEA grant on a one-to-one basis with a guaranteed allocation of state funds. Since its inception, the Arizona Commission on the Arts has successfully competed for over $30 million in federal funding, which was delivered through grants, programs and services statewide. Annually, Arts Commission grants and programs serve 8 million people, and 1.4 million Arizona youth are served by Arts Commission-sponsored arts education programs in charter, private and public schools. The Arts Commission maximizes resources in three key areas: Leadership and Partnerships; Programs and Services; and Strategic Funding. Agency Operating Detail $ 4,000 $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Arts Support Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 652.5 0.0 0.0 0.0 652.5 0.0 0.0 0.0 10.5 316.7 143.5 18.5 2.3 1.9 58.4 107.6 3.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 652.5 0.0 0.0 0.0 652.5 0.0 0.0 0.0 652.5 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Arizona Arts Endowment Expend Trust Arizona Arts Trust Fund Arizona Commission on the Arts Arizona Commission on the Arts FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 11.5 0.0 0.0 0.0 1,067.9 60.9 1,547.6 103.6 1,547.6 103.6 1,545.9 103.6 23 Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Federal Economic Recovery Fund Federal Grant 64.7 0.0 0.0 0.0 900.3 899.5 899.5 906.9 Agency - Nonapp. Funds 2,105.3 2,550.7 2,550.7 2,556.4 2,757.8 2,550.7 2,550.7 2,556.4 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 975.7 896.1 896.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Individuals benefiting from programs 10,965.0 8,457.0 8,400.00 8,500.0 sponsored by Agency (in thousands) for this measure are compiled in our online grants program (EGOR) and reflect the  Figures total number of persons benefitting from programs supported by Arts Commission grants; figures provided by grantees as a part of their annual final reports. Constituent satisfaction ratings (scale 7.00 7.00 7.00 7.10 of 1-8) for this measure are compiled by Arts Commission staff and reflect ratings from the  Figures Agency's annual satisfaction survey as well as evaluations from all presentations, convenings, workshops and review panels. Cumulative contributions to Arizona 21,000.0 0.0 0.0 0.0 ArtShare including both nondesignated funds and contributions to arts organization endowments (in thousands) for this measure are no longer collected, as the Arizona Arts Endowment Fund was  Figures eliminated in three separate budget-balancing actions in FY2010 and FY2011. The matching program, which collected data to account for private contributions to arts organizations' endowments, was therefore discontinued. The Executive recommends no appropriation for this agency. 24 Arizona Commission on the Arts FY 2013 Executive Budget BAA FY 2013 State Board of Athletic Trainers Mission: To protect the health, safety, and welfare of the public by licensing and regulating individuals who provide athletic training services. Description: The Board of Athletic Training is a regulatory board, which issues and annually renews approximately 530 licenses for the athletic training profession and continues to monitor 337 closed licenses. By law, the Board requires that each applicant meet minimum standards of education, experience, and competency. The Board also receives and investigates complaints, takes appropriate disciplinary action and responds to inquiries from consumers as to the license status of individual athletic training professionals. Other Adjustments State Employee Pay Adjustment 3.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Athletic Training Fund 3.5 The Executive recommends a lump-sum appropriation to the agency. Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Licensing and Regulation FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 95.9 101.2 101.2 104.3 Agency - Approp. Funds 95.9 101.2 101.2 104.3 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 1.5 65.9 27.4 0.0 0.0 0.0 0.0 2.6 0.0 1.5 60.8 17.2 0.0 0.6 0.0 0.0 22.6 0.0 1.5 60.8 17.2 0.0 0.6 0.0 0.0 22.6 0.0 1.5 63.8 17.3 0.0 0.6 0.0 0.0 22.6 0.0 95.9 101.2 101.2 104.3 95.9 101.2 101.2 104.3 95.9 101.2 101.2 104.3 Agency - Approp. Funds Appropriated Fund Athletic Training Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Athletic Training Fund Health Insurance Rate Reduction 0.2 (0.6) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Athletic Training Fund Agency Operating Detail (0.6) State Board of Athletic Trainers 25 AGA Attorney General - Department of Law Mission: To provide comprehensive legal protection to the citizens of Arizona and quality legal services to the state agencies of Arizona by upholding the Constitution and enforcing the law in a fair and just manner. Description: The Attorney General is a Constitutionally establish, elected position and holds office for a four-year term. The Attorney General is legal advisor to all state agencies, boards and commissions, except those few exempted by law. Other primary responsibilities include prosecuting and defending proceedings in which the State has an interest and rendering written opinions upon questions of law. Attorney General Collection Enforcement Attorney General Agency Services Fund Victims Rights Fund Risk Management Fund Attorney General Legal Services Cost Allocation Fund Agency - Approp. Funds 3,297.5 5,291.9 5,291.9 5,404.2 11,953.4 13,004.0 13,004.0 13,004.0 3,151.8 7,622.2 5,447.8 3,238.7 8,765.9 5,397.1 3,238.7 8,765.9 5,397.1 3,253.4 9,444.1 0.0 50,877.2 56,310.1 56,310.1 60,195.9 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Grand Jury 175.2 176.8 176.8 181.1 SLI Victims' Rights 3,151.8 3,238.7 3,238.7 3,253.4 SLI Military Airport 84.9 84.7 84.7 88.9 Planning Non-Appropriated Funds FY 2011 Actual General Fund and Total Funds Expenditure $ 200,000 $ 180,000 $ 160,000 $ 140,000 $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000 $0 Agency Summary - Appropriated Funds Program/Cost Center Legal Services Central Administration Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 42,505.6 8,371.6 47,281.7 9,028.4 47,281.7 9,028.4 46,093.6 14,102.4 50,877.2 56,310.1 56,310.1 60,195.9 550.8 29,371.3 10,451.3 940.2 81.5 91.9 2,671.1 5,267.5 858.8 1,143.6 592.9 31,515.9 11,051.0 3,476.7 92.3 140.3 2,692.8 5,200.8 697.3 1,443.0 592.9 31,515.9 11,051.0 3,476.7 92.3 140.3 2,692.8 5,200.8 697.3 1,443.0 592.9 34,601.0 11,161.6 3,476.7 99.9 152.1 2,692.8 5,871.5 697.3 1,443.0 50,877.2 56,310.1 56,310.1 60,195.9 17,237.4 2,020.5 16,931.5 3,439.8 16,931.5 3,439.8 25,460.6 3,494.2 146.6 241.2 241.2 135.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Consumer Protection/Fraud Revolving Fund Attorney General Antitrust Revolving 26 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. AG Trust Fund Attorney General AntiRacketeering Attorney General CJEF Distributions Court Ordered Trust Fund Criminal Case Processing Fund Federal Economic Recovery Fund Federal Grants IGA and ISA Fund Indirect Cost Recovery Fund Microsoft Settlement Fund Prosecuting Attorney Council Victim Witness Assistance 0.0 28,907.5 5.0 26,495.7 5.0 26,495.7 (0.1) 26,663.6 5,026.0 3,769.3 3,674.9 3,671.1 5,309.0 77.1 2,509.4 78.4 2,509.4 78.4 2,509.4 81.5 3,863.4 1,315.6 1,315.6 (175.3) 3,371.8 3,011.8 83.9 5,096.2 1,337.3 2,149.0 5,096.2 1,337.3 2,149.0 5,241.7 1,375.1 2,211.9 338.9 1,491.8 96.8 1,540.0 96.8 1,540.0 0.0 1,540.0 41.7 43.9 43.9 44.8 Agency - Nonapp. Funds 51,522.9 44,436.6 44,342.2 43,163.6 102,400.1 100,746.7 100,652.3 103,359.6 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 7,235.4 6,439.3 5,037.2 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Rent Standard Adjustment 1,324.2 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 950.4 Consumer Protection/Fraud Revolving Fund 12.3 Attorney General Antitrust Revolving Fund 0.5 Attorney General - Department of Law FY 2013 Executive Budget FY 2013 Attorney General Collection Enforcement Fund Attorney General Agency Services Fund Victims Rights Fund 7.3 40.9 2.1 Risk Management Fund 310.7 Retirement Standard Adjustment 303.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Consumer Protection/Fraud Revolving Fund Attorney General Antitrust Revolving Fund 114.9 15.5 1.3 Attorney General Collection Enforcement Fund 18.1 Attorney General Agency Services Fund 87.8 Victims Rights Fund Risk Management Fund Health Insurance Rate Reduction 2.5 63.0 (270.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund FY 2013 (128.2) Consumer Protection/Fraud Revolving Fund (18.4) Attorney General Antitrust Revolving Fund (0.8) The Executive recommends $1.4 million General Fund in FY 2012 and $1.2 million General Fund in FY 2013 to pay for Tobacco Litigation expenses relating to professional and outside services and travel expenses. This appropriation will be made in AHCCCS's budget and the AG’s Office will execute an ISA with AHCCCS. AG Pro-Rata Elimination The Attorney General (AG) Legal Services Cost Allocation Fund receives 0.675% of total payroll for most agencies. This AG ProRata is applied to payroll for all agencies not exempted in A.R.S. § 41-191.09. The AG’s Office uses the monies to provide legal counsel to all State agencies. The Federal government has recently disallowed this practice for federal funds. The Executive recommends (a) eliminating the AG Pro-Rata, (b) increasing by $6.0 million the General Fund appropriation for the AG’s Office, (c) reducing the General Fund and Other Appropriated funds’ appropriations in an amount equivalent to the total paid for the AG Pro-Rata in FY 2012, (d) assessing and transferring to the General Fund $2.0 million across all funds not containing federal dollars, (e) transferring the remaining balance in the Attorney General Legal Services Cost Allocation fund to the General Fund on July 1, 2012, and (f) eliminating the Attorney General Legal Services Cost Allocation fund on July 1, 2012. Attorney General Collection Enforcement Fund (10.9) General Fund Attorney General Agency Services Fund (63.9) Attorney General Legal Services Cost Allocation Fund Victims Rights Fund Risk Management Fund (3.6) (44.9) Baseline Adjustments Revenue and Expenditure Alignment (723.9) The Executive recommends reducing the appropriations to the Attorney General Anti-Trust Revolving Fund, Consumer Protection Fraud Revolving Fund and Attorney General Agency Services Fund to align the appropriation with the revenue into the Fund. Consumer Protection/Fraud Revolving Fund (54.0) Attorney General Antitrust Revolving Fund (113.9) Attorney General Agency Services Fund (556.0) Other Adjustments Tobacco Litigation- ISA with AHCCCS Beginning in April 2012 the Attorney General’s Office will be defending the State in arbitration to determine if the State has diligently enforced the tobacco master settlement agreement. The arbitration in April will cover the monies the State received in 2003. The State is responsible for participating in arbitration for both the common case (all members of the agreement) and then the state specific case. Agency Operating Detail Expiring Cross-Border Grant Backfill 6,000.0 (5,397.1) 727.3 An ARRA grant that the Attorney General's Office used to support cross-border prosecutions of anti-racketeering cases expired in 2011. The Executive recommends funding to retain 9.0 FTE positions. General Fund State Employee Pay Adjustment 727.3 1,923.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Consumer Protection/Fraud Revolving Fund Attorney General Antitrust Revolving Fund Attorney General Collection Enforcement Fund 0.0 602.9 Attorney General Agency Services Fund Victims Rights Fund Risk Management Fund Fund Transfer Elimination/Delayed Benefits Exemption 864.7 99.0 7.2 97.8 491.2 13.7 349.4 0.0 The Executive recommends eliminating the fund transfer from the Consumer Fraud Revolving Fund and the Agency Services Fund. Attorney General - Department of Law 27 FY 2013 The Executive also recommends exempting the Agency Services Fund from the uncaptured pay savings, delayed employee benefits and retirement adjustments in the General Appropriations Act. Performance Measures FY 2010 Actual Percentage of cases resolved using voluntary settlement agreements Percentage of death penalty sentences affirmed by the Arizona Supreme Court Customer satisfaction rating for client agencies (scale of 1 to 8, with 8 the highest) Days to respond to a request for a legal opinion FY 2011 Actual FY 2012 Expected FY 2013 Expected 12 14 15 15 90 88 95 95 7.15 7.44 7.50 7.50 82.2 43 50 50 The Executive recommends a lump-sum appropriation to the agency with special line items. 28 Attorney General - Department of Law FY 2013 Executive Budget ATA Transfers Out Automobile Theft Authority Mission: To deter vehicle theft in Arizona through a cooperative effort by supporting law enforcement activities, vertical prosecution, and public education programs. Description: The Arizona Automobile Theft Authority (AATA) acts as a catalyst to spur the most effective and efficient law enforcement strategies and tactics to combat auto theft. Auto theft in Arizona is significantly a crime of facilitation and is an integral part of the illegal alien and narcotics trafficking trade that permeates our state. 0.0 0.0 0.0 (2.1) 4,270.4 4,273.6 4,273.6 4,296.9 Automobile Theft Authority Fund 4,270.4 4,273.6 4,273.6 4,296.9 Agency - Approp. Funds 4,270.4 4,273.6 4,273.6 4,296.9 Agency - Approp. Funds Appropriated Fund The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Auto Theft Authority 3,838.0 3,607.7 3,607.7 3,607.7 Grants SLI Reimbursable Programs 0.0 50.0 50.0 50.0 Non-Appropriated Funds FY 2011 Actual Number of Auto Thefts Federal Grant 60,000 Agency Total - All Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2.3 0.0 0.0 0.0 2.3 0.0 0.0 0.0 4,272.7 4,273.6 4,273.6 4,296.9 Agency - Nonapp. Funds 50,000 FY 2012 Expend. Plan 40,000 Executive Appropriation Recommendations 30,000 FY 2013 20,000 Standard Adjustments 10,000 Retirement Standard Adjustment 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 1.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Automobile Theft Authority Fund 1.2 Rent Standard Adjustment 8.2 $ 6,000 $ 5,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 4,000 $ 3,000 Automobile Theft Authority Fund 8.2 $ 2,000 Health Insurance Rate Reduction (2.9) $ 1,000 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Automobile Theft Authority Fund Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Automobile Theft Authority 4,270.4 4,273.6 4,273.6 4,296.9 Agency - Approp. Funds 4,270.4 4,273.6 4,273.6 4,296.9 6.0 215.1 83.5 13.2 2.8 2.0 3,837.0 115.2 1.6 6.0 312.2 118.1 16.5 8.0 6.0 3,657.7 145.6 9.5 6.0 312.2 118.1 16.5 8.0 6.0 3,657.7 145.6 9.5 6.0 327.8 119.7 16.5 8.0 6.0 3,657.7 153.8 9.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency Operating Detail (2.9) Other Adjustments AG Pro-Rata Appropriation (2.1) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Automobile Theft Authority Fund (2.1) State Employee Pay Adjustment 18.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Automobile Theft Authority Fund Automobile Theft Authority 18.9 29 Performance Measures Arizona vehicle theft rate (# per 100,000 population) FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 380 317 297 281 The Executive recommends a lump-sum appropriation to the agency with special line items. 30 Automobile Theft Authority FY 2013 Executive Budget BBA Appropriated Fund Board of Barber Examiners Mission: To preserve the public welfare and health through the development and enforcement of adequate sanitation procedures, rules, and laws governing barbers and barbering establishments. Description: The Board administers barbering examinations, grants and renews licenses, inspects barbering establishments, investigates consumer complaints regarding unlawful activities, and takes measures to resolve complaints, including holding hearings, levying fines, and suspending or revoking licenses. Number of Licenses 8,000 7,000 Barber Examiners Board Agency - Approp. Funds 250.5 320.7 320.7 333.5 250.5 320.7 320.7 333.5 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Barber Examiners Board Fund 0.7 Rent Standard Adjustment 2.9 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 6,000 5,000 Barber Examiners Board Fund 4,000 2.9 3,000 Health Insurance Rate Reduction 2,000 1,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (2.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Barber Examiners Board Fund (2.2) General Fund and Total Funds Expenditure Other Adjustments $ 300 Health Insurance Rate Reduction 0.0 State Employee Pay Adjustment 11.4 $ 250 $ 200 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 150 $ 100 Barber Examiners Board Fund 11.4 $ 50 Performance Measures $0 FY 2010 Actual FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Number of all licenses Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 250.5 320.7 320.7 333.5 Agency - Approp. Funds 250.5 320.7 320.7 333.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 3.5 147.1 47.2 4.6 15.9 3.7 0.0 31.9 0.1 4.0 187.5 65.1 5.1 23.6 4.0 0.0 34.3 1.1 4.0 187.5 65.1 5.1 23.6 4.0 0.0 34.3 1.1 4.0 196.9 65.6 5.1 23.6 4.0 0.0 37.2 1.1 250.5 320.7 320.7 333.5 Agency - Approp. Funds Agency Operating Detail FY 2011 Actual FY 2012 Expected FY 2013 Expected 7,125 7356 7575 7800 Number of complaints received 334 350 350 350 Average number of calendar days from receipt of application to acceptance or denial Number of inspections conducted .17 .15 3 3 1798 2306 3,200 3,200 The Executive recommends a lump-sum appropriation to the agency with special line items. Board of Barber Examiners 31 BHA Board of Behavioral Health Examiners Mission: To establish and maintain standards of qualifications and performance for licensed behavioral health professionals in the fields of counseling, marriage and family therapy, social work, and substance abuse counseling, and to regulate the practice of licensed behavioral health professionals for the protection of the public. Description: The Board licenses and biennially renews licensure for approximately 8,300 behavioral health professionals requiring these professionals meet minimum standards of education, experience, and competency as measured by examination. The Board also receives and investigates complaints, takes necessary disciplinary action, and responds to inquiries from consumers regarding the licensure status and complaint history of individual behavioral health professionals. Number of Licenses Issued 9,000 Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 2.4 0.0 0.0 152.5 25.8 0.4 10.0 8.3 0.0 170.4 3.1 0.0 10.0 8.3 0.0 170.4 3.1 0.0 10.0 8.3 0.0 170.4 58.7 0.0 1,203.1 1,458.7 1,458.7 1,635.7 Behavioral Health Examiner Fund 1,203.1 1,458.7 1,458.7 1,635.7 Agency - Approp. Funds 1,203.1 1,458.7 1,458.7 1,635.7 Agency - Approp. Funds Appropriated Fund Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 2.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Behavioral Health Examiners Fund 8,000 7,000 2.5 Health Insurance Rate Reduction 6,000 (11.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 5,000 4,000 3,000 2,000 Behavioral Health Examiners Fund 1,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (11.1) Other Adjustments Counseling Curriculum Review General Fund and Total Funds Expenditure $ 1,600 $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,203.1 1,458.7 1,458.7 1,635.7 1,203.1 1,458.7 1,458.7 1,635.7 17.0 531.3 261.0 229.7 17.0 667.1 355.5 244.3 17.0 667.1 355.5 244.3 17.0 700.5 354.0 333.8 32 A.R.S. § 32-3301 charges the Board’s Counseling Credentialing Committee with the review of educational requirements for applicants to be licensed as professional and associate counselors. In cases where the academic program completed by the applicant is regionally accredited, but is not accredited by one of the major national accrediting councils, the Committee is required by statute to review the specific curriculum to ensure that the school's curriculum meets licensing standards. The four counseling professionals and one public member that make up the Counseling Credentialing Committee are focused on reviewing the credentials of specific candidates for licensure as professional and associate counselors, but they are generally not experts in academia or in the specific knowledge required to evaluate specific course content. The Executive recommends funding to consult with two experts with the proper academic background to perform curriculum reviews on behalf of the Committee. This funding will pay for approximately 192 consulting hours. Behavioral Health Examiners Fund 24.0 Information Technology Upgrades: Phase I Category FTE Personal Services ERE Amount Prof. And Outside Services 24.0 105.6 In 2009, the Board approved an increase in the fee for license renewals from $250 to $350 every two years and implemented a new license issuance fee. Part of the purpose of the fee increase Board of Behavioral Health Examiners FY 2013 Executive Budget Performance Measures FY 2013 was to generate additional funding to improve service to the regulated community and reduce processing times through the use of technology. Accordingly, the Executive recommends an appropriation to begin to develop an electronic system of storing and distributing investigation files to Board members for each complaint received. The current process of distributing investigation files involves producing approximately 25 copies of each investigation file and mailing copies to Board and Credentialing Committee members. With the new paperless investigation system, files will be stored electronically and distributed to Board and Committee members on encrypted flash drives. Average number of days to renew a license from receipt of application to issuance Average days to resolve a complaint Number of complaints received about licensees FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 29 20 30 30 396 305 350 350 127 161 160 160 The Executive recommends a lump-sum appropriation to the agency. Currently, the Board accepts only check or money order payment. The Executive recommendation includes $20,000 to modify processes to allow licensees to pay by credit card. The Board will also begin developing a replacement licensing system in FY 2013. The current licensing system lacks functionality and is not capable of interfacing with the Board’s accounting functions, leading to financial risk to the Board and the State. The Board will accomplish the technology upgrades in two phases between FY 2013 and FY 2014. The FY 2014 cost is estimated to be $267,000 to complete the licensing system upgrades. Behavioral Health Examiners Fund 105.6 Legal Services Adjustment 15.5 The Board contracts with the Attorney General’s Office to prosecute cases in which the Board seeks disciplinary action against a licensee. In FY 2012, the costs charged to the Board for legal services increased by $15,500 over the appropriated amount. There is currently a backlog of 13 cases requiring Attorney General services, equating to a six-month processing timeframe for formal hearings for cases remanded by the Board. Due to budget constraints, the Board will contract for a lower volume of Attorney General services in FY 2012; however, in order to avoid further increases in the backlog of complaints requiring a formal hearing, the Executive recommends increasing the appropriation for this service in FY 2013. Behavioral Health Examiners Fund 15.5 State Employee Pay Adjustment 40.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Behavioral Health Examiners Fund 40.5 Performance Measures FY 2010 Actual Number of new and existing licenses issued Agency Operating Detail 8,333 FY 2011 Actual FY 2012 Expected 8,435 8,450 FY 2013 Expected 8,450 Board of Behavioral Health Examiners 33 PDA State Capital Post-Conviction Public Defender Office Mission: To provide representation to capital defendants in post conviction proceedings, as assigned by the Supreme Court, in accordance with guidelines established by the American Bar Association. Description: The Office was established in 2006 and began accepting cases in September 2007. All capital convictions are automatically appealed to the State Supreme Court. If the sentence is affirmed on appeal, the Supreme Court appoints counsel to represent the inmate in state post conviction relief proceedings. The agency accepts appointments to cases from the Supreme Court as resources allow. Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds 0.0 57.6 0.3 0.0 65.5 13.5 0.0 65.5 13.5 0.0 65.5 13.5 726.8 849.9 849.9 874.8 633.8 93.0 688.9 161.0 688.9 161.0 713.8 161.0 726.8 849.9 849.9 874.8 Appropriated Fund General Fund Capital Postconviction Public Defender Office Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment Number of Assigned Cases 1.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 6 5 General Fund 1.8 4 Health Insurance Rate Reduction 3 (4.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 2 1 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund (4.9) Other Adjustments State Employee Pay Adjustment General Fund and Total Funds Expenditure 28.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 900 $ 800 General Fund $ 700 28.0 $ 600 $ 500 $ 400 The Executive recommends a lump-sum appropriation to the agency. $ 300 $ 200 $ 100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Capital Post-Conviction Public Defender Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 726.8 849.9 849.9 874.8 726.8 849.9 849.9 874.8 6.0 437.7 167.3 57.5 3.3 3.0 6.0 464.0 186.0 108.9 6.0 6.0 6.0 464.0 186.0 108.9 6.0 6.0 6.0 487.2 187.7 108.9 6.0 6.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State 34 State Capital Post-Conviction Public Defender Office FY 2013 Executive Budget CSA Appropriated Fund State Board for Charter Schools Mission: To improve public education in Arizona by sponsoring charter schools that provide quality educational choices. General Fund Agency - Approp. Funds 715.3 750.6 750.6 865.9 715.3 750.6 750.6 865.9 Non-Appropriated Funds FY 2011 Actual Description: The Arizona State Board of Charter Schools reviews new, replication, and renewal applications and grants charters to qualified applicants and oversees the academic, fiscal and organizational compliance of the charter schools it sponsors. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Charter AZ Online Instruction Processing Fund 48.0 36.0 36.0 27.0 Agency - Nonapp. Funds 48.0 36.0 36.0 27.0 763.3 786.6 786.6 892.9 Agency Total - All Funds Number of Charters FY 2012 Expend. Plan Executive Appropriation Recommendations 450 FY 2013 400 Standard Adjustments 350 300 Retirement Standard Adjustment 250 200 1.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 150 100 50 General Fund 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Rent Standard Adjustment 1.6 36.6 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund and Total Funds Expenditure $ 900 General Fund 36.6 Health Insurance Rate Reduction (5.4) $ 800 $ 700 $ 600 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 500 $ 400 $ 300 General Fund $ 200 $ 100 (5.4) Other Adjustments $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center State Board for Charter Schools FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 715.3 750.6 750.6 865.9 Agency - Approp. Funds 715.3 750.6 750.6 865.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 8.0 321.4 162.7 60.2 1.3 0.9 0.0 152.1 16.7 0.0 8.0 416.6 180.9 31.6 3.1 3.2 0.0 113.2 2.0 0.0 8.0 416.6 180.9 31.6 3.1 3.2 0.0 113.2 2.0 0.0 9.0 477.4 197.8 31.6 3.1 3.2 0.0 149.8 5.8 (2.8) 715.3 750.6 750.6 865.9 Agency - Approp. Funds Agency Operating Detail Increase in Caseload and Statutory Requirements 60.2 Due to the continuing increase in responsibilities without additional resources, the Board has experienced challenges in meeting its statutory mandates, processing timeframes and reporting requirements. There is currently 1.0 FTE position dedicated to processing renewal applications, conducting interval reviews and monitoring performance management plans. In FY 2011, the Board spent approximately $40,000 for contract services in order to complete interval reviews and renewal applications and still struggled to complete its obligations. The Executive recommends an increase of $60,043 and 1.0 FTE position to provide an additional CS Program Specialist to assist the Board in meeting statutory obligations in a timely and effective manner. General Fund 60.2 AG Pro-Rata Appropriation (2.8) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. State Board for Charter Schools 35 FY 2013 General Fund (2.8) State Employee Pay Adjustment 25.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 25.1 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Number of sponsored charters with 378 391 405 400 one or more sites in operation numbers include the 13 remaining State Board of Education sponsored schools since the  The Charter School Board provides oversight of these charters. Number of sponsored charter school 496 517 531 526 sites in operation numbers include all State Board of Education sponsored schools, but not district sponsored  The schoools. Number of annual on-site monitoring 81 104 142 71 visits Number of annual complaints 129 123 120 120 regarding sponsored schools Complaints are reviewed for contractual compliance and processed accordingly.  The Executive recommends a lump-sum appropriation to the agency. 36 State Board for Charter Schools FY 2013 Executive Budget CEA Equipment State Board of Chiropractic Examiners Mission: To protect the health, welfare, and safety of Arizona citizens who seek and use chiropractic care. Description: The Board conducts examinations and evaluates applications from chiropractors seeking initial or renewal of licensure, as well as from persons seeking participation in Board-approved preceptorship or chiropractic assistant programs. The Board investigates complaints made against chiropractors and conducts administrative hearings as required. The Board provides information to the public concerning applicants, licensees, and regulatory actions taken. Number of Licenses Agency - Approp. Funds 1.6 3.0 3.0 0.0 390.0 449.3 449.3 463.5 390.0 449.3 449.3 463.5 390.0 449.3 449.3 463.5 Appropriated Fund Chiropractic Examiners Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.9 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Chiropractic Examiners Board Fund 2,850 2,800 2,750 2,700 2,650 2,600 2,550 2,500 2,450 2,400 2,350 2,300 0.9 Health Insurance Rate Reduction (1.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Chiropractic Examiners Board Fund (1.5) Other Adjustments FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Eliminate FY 2012 One-time Funding (3.0) The Executive recommends reduced appropriations for the onetime FY 2012 funding of replacement computer equipment. General Fund and Total Funds Expenditure Chiropractic Examiners Board Fund $ 600 (3.0) $ 500 Private Rent Increase $ 400 The Executive recommends an appropriation increase of $2,800 in FY 13 for a rental increase of $15.40 per square foot to $16.60. $ 300 2.8 Chiropractic Examiners Board Fund 2.8 $ 200 State Employee Pay Adjustment $ 100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 15.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Chiropractic Examiners Board Fund 15.0 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 390.0 449.3 449.3 463.5 Agency - Approp. Funds 390.0 449.3 449.3 463.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses 5.0 222.1 69.9 14.6 7.6 1.2 0.0 73.1 5.0 248.6 84.1 31.4 5.0 0.0 0.0 77.2 5.0 248.6 84.1 31.4 5.0 0.0 0.0 77.2 5.0 261.0 86.1 31.4 5.0 0.0 0.0 80.0 Agency Operating Detail Performance Measures Number of licenses eligible for renewal Percent of license renewal applications processed within 15 business days Total number of investigations conducted FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 2,493 2,473 2,500 2,500 100 100 95 95 164 190 165 165 The Executive recommends a lump-sum appropriation to the agency. State Board of Chiropractic Examiners 37 ECA Agency Summary - Appropriated Funds Citizens' Clean Elections Commission Mission: To fairly, faithfully, and fully implement and administer the Arizona Citizens' Clean Elections Act. Description: The Citizens' Clean Elections Act was a campaign finance reform measure initiated by Arizona citizens and approved by majority vote in 1998. The Act created a new campaign financing system for statewide and legislative offices that provides public funding to qualified candidates who agree to abide by CCEC guidelines. Candidates wishing to utilize public funding for statewide and legislative offices must become certified as participating candidates by agreeing to abide by all contribution and expenditure limits imposed in the Act and then obtain a certain number of $5 qualifying contributions, depending on the office sought, in order to qualify for public funding. Non-participating candidates must accept campaign contributions at amounts that are 20 percent less than allowed in statute and comply with reporting requirements specified in the Act. The Commission sponsors debates and develops a procedure for publishing a document having space of predefined size for a message chosen by each candidate. The document is mailed before the primary and general elections to every household that contains a registered voter. The Commission is composed of five members of which no more than two can be from the same political party nor can more than two be residents of the same county. Appointments are for a five-year term. Non-Appropriated Funds FY 2011 Actual Citizens Clean Election Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 31,891.6 16,264.8 6,264.8 6,348.9 31,891.6 16,264.8 6,264.8 6,348.9 31,891.6 16,264.8 6,264.8 6,348.9 Performance Measures FY 2010 Actual Number of candidate statement pamphlets mailed to AZ households (calendar years in thousands) Number of certified participating candidates (calendar years) Total funds distributed to participating candidates (calendar years in thousands) Percent of candidates submitting candidate statements (calendar years) Percent of cap spent on administration and enforcement (calendar years) Percent of cap applied to voter education (calendar years) FY 2011 Actual FY 2012 Expected FY 2013 Expected 0 3,800.0 3,800.0 3,800.0 129 125 85 125 1,600.0 4,500.0 2,337.0 2,794.0 125 175 175 175 3.5 9.0 9.0 9.0 18.0 19.0 18.0 20.0 Total Candidate Funding 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 General Fund and Total Funds Expenditure $ 14,000 $ 12,000 $ 10,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 38 Citizens' Clean Elections Commission FY 2013 Executive Budget CAA Non-Appropriated Funds Commerce Authority Mission: To provide private sector leadership in growing and diversifying the economy of Arizona, create high quality employment through expansion, attraction and retention of business, and market Arizona for the purpose of expansion, attraction and retention of businesses. Description: The Arizona Commerce Authority (Authority) was established through Executive Order 2010-12, and is charged with the following responsibilities: job creation and expansion of capital investment through business attraction, expansion and retention, including business incubation and entrepreneurship; create, monitor and execute a comprehensive economic and workforce strategy; manage and administer economic development and workforce programs; provide statewide marketing leadership; utilize all means necessary, prudent and practical to integrate private sector-based innovation, flexibility, focus and responsiveness; and advance public policy to meet its objectives. Agency Summary - Appropriated Funds FY 2011 Actual Program/Cost Center Arizona Commerce Authority Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 31,500.0 31,500.0 31,500.0 0.0 31,500.0 31,500.0 31,500.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31,500.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31,500.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31,500.0 0.0 0.0 0.0 31,500.0 31,500.0 31,500.0 0.0 31,500.0 31,500.0 31,500.0 0.0 31,500.0 31,500.0 31,500.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 54,254.1 53,640.7 41,949.7 0.0 85,754.1 85,140.7 73,449.7 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 0.0 1,263.9 942.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Number of companies assisted 0 0 80 80 Number of workers under contract to be trained Potential foreign investors attracted to Arizona for site visits Number of companies recruited to rural locations Locate/expansion capital investments (in millions) Average hourly wage rate per job 0 0 10,000 11,000 0 0 14 14 0 0 5 5 0 0 412 412 0 0 19.00 19.00 Jobs created by companies utilizing Arizona Commerce Authority business development programs Number of new company relocations/expansions 0 0 10,000 10,000 0 0 15 15 Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Arizona Commerce Authority Carryover Arizona Commerce Authority Fund Arizona Competes Fund Community Development Bond Fund Federal Grant Fund Work Force Recruitment and Job Training Fund Agency Operating Detail FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 11,984.4 11,371.0 1.0 0.0 10,000.0 10,000.0 10,000.0 0.0 0.0 25,000.0 7.1 25,000.0 7.1 25,000.0 7.1 0.0 0.0 1,263.8 5,998.8 1,263.8 5,998.8 942.2 5,999.4 Commerce Authority 39 EPA Commerce and Economic Development Department of Commerce Mission: To provide state leadership to create and retain quality jobs and strengthen Arizona's economic base. Agency - Approp. Funds 0.0 0.0 0.0 6,877.0 0.0 0.0 0.0 $ 60,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI CEDC Commission 180.9 0.0 0.0 0.0 SLI Women & Minority90.3 0.0 0.0 0.0 Owned Business SLI Small Business Advocate 121.3 0.0 0.0 0.0 SLI International Trade 1,590.7 0.0 0.0 0.0 Offices SLI Nation Law Center 150.0 0.0 0.0 0.0 SLI Advertising and 536.5 0.0 0.0 0.0 Promotion SLI Sonora Trade Office 25.0 0.0 0.0 0.0 SLI Rural Economic 337.7 0.0 0.0 0.0 Development SLI Economic 104.0 0.0 0.0 0.0 Development Matching Funds SLI Main Street 128.2 0.0 0.0 0.0 SLI Rural Economic 45.0 0.0 0.0 0.0 Development Initiative (REDI) Matching Grants SLI Military Airport 2,025.0 0.0 0.0 0.0 Planning $ 50,000 Non-Appropriated Funds Description: As the State’s principal economic development agency, the Department of Commerce, which is in the process of becoming the Arizona Commerce Authority, develops and implements the state’s economic development plan directed at creating and retaining quality jobs statewide. Accordingly, the Department implements statewide strategies that promote Arizona’s global competitiveness; facilitates the coordination of the state’s workforce development system; supports the expansion of existing businesses, including small and minority-owned businesses; conducts targeted business attraction to enhance economic diversification; and promotes international trade and investment. General Fund and Total Funds Expenditure $ 70,000 FY 2011 Actual $ 40,000 $ 30,000 $ 20,000 $ 10,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Administration and Research Community Development Business Development Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 613.8 2,639.9 3,623.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6,877.0 0.0 0.0 0.0 28.3 1,471.5 524.5 1,615.8 20.5 63.7 168.7 616.9 83.4 2,312.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6,877.0 0.0 0.0 0.0 3,473.1 180.9 0.0 0.0 0.0 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Lottery Fund 40 3,223.0 Arizona Job Training Fund CEDC Local Communities Fund Commerce & Economic Development Commerce Development Bond Fund Commerce Donations Fund Commerce Workshops Federal Economic Recovery Fund Federal Grant Greater AZ Development Authority Revolving IGA and ISA Between State Agencies Indirect Cost Recovery Fund Military Installation Fund Nursing Education Demo Project Oil Overcharge Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,343.9 10.0 0.0 0.0 0.0 129.4 0.0 0.0 18.7 0.0 8,448.7 0.0 0.6 0.0 1,007.1 0.0 792.8 125.6 57,655.6 0.0 0.0 0.0 471.2 87.0 0.0 0.0 0.0 0.0 7,691.5 206.9 0.0 0.0 1,005.1 0.0 0.0 0.0 1,263.2 0.0 0.0 0.0 199.6 0.0 0.0 0.0 5,167.9 186.6 0.0 0.0 0.0 2,607.2 0.0 0.0 451.7 0.0 0.0 0.0 76,114.6 0.0 13,755.7 0.0 82,991.6 0.0 13,755.7 0.0 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 65,346.0 0.0 0.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Department of Commerce FY 2013 Executive Budget Performance Measures Percent of surveys marked "very good" or "excellent" from annual survey of Administration Division's internal customers Total number of jobs created by companies participating in the Enterprise Zone program Capital investment made by companies participating in Enterprise Zone program (property tax and income tax programs) (in millions) Potential foreign investors attracted to Arizona for site visits Number of companies recruited to rural locations Average hourly wage rate per job  FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 81 82 na na 3,785 3890 na na 1,299 1348 na na 27 26 na na 19 3 na na 15.95 19.00 na na 2551 10634 na na 15 30 na na 0 Based on companies receiving business development assistance. Jobs created by companies utilizing Commerce Business Development programs Number of new company relocations, expansions Number of companies assisted 55 na na Number of workers under contract to 0 11,954 be trained Forecasted to go through training to increase their job skills. na na Number of projects attracted or facilitated na na  Agency Operating Detail 30 na Department of Commerce 41 CMA Agency - Approp. Funds Arizona Community Colleges Mission: To provide quality, accessible, and affordable higher‐education. Description: Arizona’s community colleges provide programs and training in the arts, sciences and humanities, and vocational education leading to an Associate’s degree, Certificate of Completion, or transfer to a Baccalaureate degree‐granting college or university. Full-Time Equivalent Student Enrollment 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 180,000 135,344.3 71,089.0 71,089.0 65,846.0 135,344.3 71,089.0 71,089.0 65,846.0 135,344.3 71,089.0 71,089.0 65,846.0 Appropriated Fund General Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Operating Cochise 7,488.7 5,572.0 5,572.0 5,784.6 SLI Operating Coconino 2,679.4 1,836.0 1,836.0 1,847.9 SLI Operating Gila 658.4 428.1 428.1 410.0 SLI Operating Graham 4,243.9 2,260.0 2,260.0 2,373.2 SLI Operating Maricopa 45,327.4 6,891.2 6,891.2 8,315.7 SLI Operating Mohave 3,682.9 1,792.2 1,792.2 1,785.6 SLI Operating Navajo 3,590.0 1,730.1 1,730.1 1,689.7 SLI Operating Pima 15,942.1 7,146.4 7,146.4 7,353.5 SLI Operating Pinal 4,935.1 2,086.2 2,086.2 2,107.8 SLI Operating Santa Cruz 0.0 0.0 0.0 63.5 SLI Operating Yavapai 4,196.0 899.2 899.2 957.6 SLI Operating Yuma/La Paz 4,812.9 2,683.0 2,683.0 2,802.6 SLI Equalization Cochise 7,841.8 8,048.9 8,048.9 5,611.5 SLI Equalization Graham 17,465.4 19,345.7 19,345.7 16,864.0 SLI Equalization Navajo 6,624.0 6,451.7 6,451.7 5,367.1 SLI Equalization Yuma/La 2,938.3 1,406.6 1,406.6 0.0 Paz Executive Appropriation Recommendations $ 160,000 FY 2013 $ 140,000 $ 120,000 Baseline Adjustments $ 100,000 Operating State Aid Formula Funding $ 80,000 2,167.3 From FY 2010 to FY 2011, total Community College enrollment grew by more than 7%. The Executive recommends $2.2 million for Operating State Aid formula funding. $ 60,000 $ 40,000 $ 20,000 $0 The Operating State Aid formula is based on enrollment growth and the previous year’s Operating State Aid. General Fund Agency Summary - Appropriated Funds Program/Cost Center Operating State Aid Equalization Aid Dine College Rural County Reimbursement Subsidy Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 97,556.8 34,869.5 1,918.0 1,000.0 33,324.4 35,252.9 1,662.9 848.8 33,324.4 35,252.9 1,662.9 848.8 35,491.7 27,842.6 1,662.9 848.8 135,344.3 71,089.0 71,089.0 65,846.0 0.0 0.0 0.0 0.0 0.0 0.0 135,344.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 71,089.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 71,089.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 65,846.0 0.0 0.0 2,167.3 Equalization State Aid Formula Funding (7,410.3) The Executive recommends decreases totaling ($7.4 million) for Equalization State Aid to the Cochise, Graham, Navajo and Yuma/La Paz community college districts in accordance with formula. The decreases reflect the fact that property tax values for districts that receive Equalization Aid decreased less than the average for all rural Arizona counties. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 42 The Equalization State Aid Formula is designed to make up for the lack of sufficient property tax base for certain districts. General Fund (7,410.3) The Executive recommends a lump-sum appropriation to the agency with special line items. Arizona Community Colleges FY 2013 Executive Budget CNA Constable Ethics Standards & Training Board Mission: To regulate and support the performance of elected and appointed constables in Arizona. Description: The Constable Ethics Standards and Training Board is a citizen Board whose membership consists of a county manager, constables, a justice of the peace, a sheriff, a representative of the multi-housing industry, and a representative of the general public. As an entity, it works to regulate and support the performance of elected and appointed constables in Arizona through the active enforcement of a professional code of conduct and the issuance of grants for constable training & equipment. Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual Constable Ethics Standards and Training Agency - Nonapp. Funds Agency Total - All Funds Agency Operating Detail FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 188.6 245.3 245.3 245.3 188.6 245.3 245.3 245.3 188.6 245.3 245.3 245.3 Constable Ethics Standards & Training Board 43 RGA Transfers Out Registrar of Contractors Mission: To promote quality construction by Arizona contractors through a licensing and regulatory system designed to protect the health, safety, and welfare of the public. Description: The Registrar of Contractors licenses, investigates, and seeks to resolve complaints against licensed and unlicensed contractors. The agency also administers the Residential Contractors' Recovery Fund, which reimburses residential property owners for poor workmanship or non-performance by a licensed residential contractor. Agency - Approp. Funds 534.5 1,017.6 1,017.6 1,017.6 7,904.2 12,002.7 12,002.7 12,095.2 7,904.2 12,002.7 12,002.7 12,095.2 7,904.2 12,002.7 12,002.7 12,095.2 Appropriated Fund Registrar of Contractors Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Office of 534.5 1,017.6 1,017.6 1,017.6 Administrative Hearings SLI Information 365.9 0.0 0.0 0.0 Management System Non-Appropriated Funds Number of Licenses FY 2011 Actual Residential Contractors' Recovery Fund 70,000 60,000 Agency - Nonapp. Funds 50,000 Agency Total - All Funds 40,000 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 6,160.4 4,952.2 4,952.2 10,957.1 6,160.4 4,952.2 4,952.2 10,957.1 14,064.6 16,954.9 16,954.9 23,052.3 30,000 Executive Appropriation Recommendations 20,000 FY 2013 10,000 Standard Adjustments 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Retirement Standard Adjustment 21.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund and Total Funds Expenditure $ 20,000 Registrar of Contractors Fund $ 18,000 21.0 $ 16,000 Rent Standard Adjustment $ 14,000 $ 12,000 (199.5) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 10,000 $ 8,000 Registrar of Contractors Fund $ 6,000 (199.5) $ 4,000 Health Insurance Rate Reduction $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Regulatory Affairs Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 7,904.2 12,002.7 12,002.7 12,095.2 7,904.2 12,002.7 12,002.7 12,095.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 44 144.8 3,850.0 1,726.3 102.5 171.2 0.0 0.0 1,440.0 79.7 144.8 5,519.2 2,274.5 405.3 505.1 11.8 0.0 2,168.9 100.3 144.8 5,519.2 2,274.5 405.3 505.1 11.8 0.0 2,168.9 100.3 144.8 5,795.2 2,290.5 405.3 505.1 11.8 0.0 1,969.4 100.3 (63.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Registrar of Contractors Fund (63.4) Other Adjustments State Employee Pay Adjustment 334.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Registrar of Contractors Fund 334.4 Performance Measures FY 2010 Actual Total complaints closed through compliance Total number of contractors licensed Registrar of Contractors FY 2011 Actual FY 2012 Expected FY 2013 Expected 4,542 3,762 3,762 3,762 58,358 56,050 56,050 56,050 FY 2013 Executive Budget Performance Measures FY 2010 Actual in state Number of complaints received unlicensed contractors 1,985 FY 2011 Actual 1,725 FY 2012 FY 2013 Expected Expected 1,725 1,725 The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail Registrar of Contractors 45 CCA Corporation Commission General Fund and Total Funds Expenditure Mission: To exercise exclusive state regulatory authority over public service corporations (public utilities) in the public interest; to grant corporate status and maintain public records; to ensure the integrity of the securities marketplace; and to foster the safe operations of railroads and gas pipelines in Arizona. Description: The Corporation Commission was established by Article 15 of the State Constitution and is composed of five elected Commissioners. Commissioners are currently serving terms that expire in 2012 or 2014. The seats are staggered in four-year terms. Staffing is provided in seven divisions, each headed by a division director serving under the Commission's Executive Director, who is the chief executive officer and responsible for the day-to-day operations of the divisions. The Commission's primary responsibilities include reviewing and establishing public utility rates, regulating the sale of securities, ensuring pipeline and railroad safety, and administering the Arizona Corporations Code. The Commission also serves as the repository of corporate annual reports and other publicly available documents filed by corporations in accordance with state law. Hearings Decisions for Utility Rate or Securities Violations Cases 1,200 $ 30,000 $ 25,000 $ 20,000 $ 15,000 $ 10,000 $ 5,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Administration Hearings Corporations Securities Railroad Safety Pipeline Safety Utilities Legal Information Technology Agency - Approp. Funds 1,000 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,017.3 1,525.2 4,018.5 4,308.8 613.7 869.8 5,455.0 1,766.9 2,186.7 2,925.1 1,547.5 4,120.7 4,363.0 586.4 900.0 5,419.2 1,797.4 2,212.8 2,925.1 1,547.5 4,120.7 4,338.0 661.4 900.0 5,419.2 1,797.4 2,162.8 3,339.5 2,006.1 4,290.9 4,531.8 676.5 932.9 5,888.5 1,912.3 2,228.1 23,761.9 23,872.1 23,872.1 25,806.5 308.3 14,075.4 5,613.0 685.8 133.5 72.3 0.0 2,837.7 291.6 52.6 308.3 14,586.1 5,887.5 570.0 129.9 67.5 0.0 2,431.1 200.0 0.0 308.3 14,587.1 5,887.9 570.0 129.9 67.5 0.0 2,429.7 200.0 0.0 308.3 15,846.6 6,026.9 570.0 129.9 67.5 0.0 2,533.1 432.5 200.0 23,761.9 23,872.1 23,872.1 25,806.5 Category 800 600 400 200 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Total Number of Active Corporations and LLCs FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 800,000 Appropriated Fund 700,000 General Fund Utility Regulation Revolving Securities Regulatory & Enforcement Public Access Fund Securities Investment Management Fund Arizona Arts Trust Fund 619.9 12,682.1 4,235.9 511.4 12,597.6 4,217.4 586.4 12,597.6 4,192.4 597.5 14,089.2 4,376.1 5,479.0 694.0 5,817.1 678.7 5,767.1 678.7 5,989.6 703.2 51.0 49.9 49.9 50.9 Agency - Approp. Funds 23,761.9 23,872.1 23,872.1 25,806.5 600,000 500,000 400,000 300,000 200,000 100,000 0 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Same Day Service 0.0 270.6 270.6 279.5 SLI Utility Audits and 0.0 380.0 380.0 380.0 Studies SLI Same Day Service 0.0 129.8 129.8 134.4 Non-Appropriated Funds FY 2011 46 Corporation Commission FY 2012 FY 2012 FY 2013 FY 2013 Executive Budget FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Federal Economic Recovery Fund Federal Grant Statewide Donations Fund Utility Siting Fund 291.3 310.0 310.0 271.3 875.1 21.9 14.0 630.3 0.0 0.0 630.3 0.0 0.0 643.1 0.0 0.0 Agency - Nonapp. Funds 1,202.3 940.3 940.3 914.4 24,964.2 24,812.4 24,812.4 26,720.9 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 1,166.4 979.5 901.6 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. FY 2013 Standard Adjustments 103.2 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (0.4) Utility Regulation Revolving Fund 14.3 Security Regulatory and Enforcement Fund 40.3 Public Access Fund 49.0 Retirement Standard Adjustment 58.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 1.1 Utility Regulation Revolving Fund 28.6 Security Regulatory and Enforcement Fund 11.8 Public Access Fund 14.9 Securities Investment Management Fund 2.2 Arizona Arts Trust Fund 0.1 Health Insurance Rate Reduction (183.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Baseline Adjustments Health Insurance Allocation Adjustment (3.9) Utility Regulation Revolving Fund (99.8) Security Regulatory and Enforcement Fund (28.5) Public Access Fund (43.6) Securities Investment Management Fund (6.6) Arizona Arts Trust Fund (0.9) The Executive recommends a $75,000 increase from the General Fund as a technical revision to update health insurance allocations included in the FY 2012 General Appropriations Act. The Executive further recommends that the $75,000 General Fund appropriation be offset by transferring $50,000 to the General Fund from the Public Access Fund and by transferring $25,000 to the General Fund from the Securities Regulatory and Enforcement Fund in FY 2013, for a zero net impact to the General Fund. General Fund 75.0 Security Regulatory and Enforcement Fund (25.0) Public Access Fund (50.0) Hearing Case Efficiencies 1,097.6 During FY 2011, the Commission held 509 hearings, arbitrations and procedural conferences. The vast majority of hearings are held in Phoenix, in the Commission's only large hearing room. Hearings have increased in complexity, and the time needed to conduct hearings increased by over 32% between FY 2008 and FY 2011. From filing to implementation, the typical rate change for a large utility is an 18- to 24-month process. That time period is due primarily to over-booking of the Commission's main hearing room and insufficient staff to process rate cases. The delay in rate change approvals negatively affects customers, as the utility is not able to generate sufficient revenues necessary to invest in infrastructure to expand service or make service improvements in a timely manner. The Executive recommends the construction of an additional hearing room and sufficient funding for the Commission to fill the following positions: (1) two administrative law judges to hear and process rate cases, (2) one Hearings Division support staff, (3) one senior level accountant to provide financial analysis support for rate cases, and (4) four utilities analysts to provide technical support for rate cases. The Executive expects that, with the construction of a new hearing room and the hiring of new staff, the length of time from rate case filing to implementation of the rate change will decrease to approximately 12 months. Utility Regulation Revolving Fund State Employee Pay Adjustment 1,097.6 858.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Utility Regulation Revolving Fund Agency Operating Detail 0.0 Other Adjustments Executive Appropriation Recommendations Rent Standard Adjustment FY 2013 Corporation Commission 14.3 450.9 47 FY 2013 Security Regulatory and Enforcement Fund 160.1 Public Access Fund 202.2 Securities Investment Management Fund 28.9 Arizona Arts Trust Fund 1.8 FY 2012 Supplemental Recommendations FY 2012 Health Insurance Allocation Adjustment 0.0 The Executive recommends a $75,000 increase from the General Fund as a technical revision to enact updates to the health insurance allocations included in the FY 2012 General Appropriations Act. The Executive further recommends that the $75,000 appropriation be offset by transferring $50,000 to the General Fund from the Public Access Fund and by transferring $25,000 to the General Fund from the Securities Regulatory and Enforcement Fund in FY 2012. General Fund 75.0 Security Regulatory and Enforcement Fund (25.0) Public Access Fund (50.0) Performance Measures Range of days to process expedited requests - corporate filings Range of weeks to process regular requests - Corporate Filings Total active corporations and Limited Liability Corporations recorded Number of complaints FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 3-14 2-8 2-5 2-5 3-8 5-7 4-6 3-6 635,858 678,983 685,000 685,000 392 306 250 250 Number of grade crossing accidents 20 19 25 25 Total number of Interstate pipeline safety violations 0 2 0 0 The Executive recommends a lump-sum appropriation to the agency with special line items. 48 Corporation Commission FY 2013 Executive Budget DCA Department of Corrections Mission: To serve and protect the people of Arizona by securely incarcerating convicted felons, by providing structured programming designed to support inmate accountability and successful community reintegration, and by providing effective supervision for those offenders conditionally released from prison. Description: The Department serves and protects the people of the state of Arizona by incarcerating inmates in correctional facilities and supervising conditionally released offenders in the community. During incarceration, welfare services and health care services including medical, nursing, dental, mental health, and pharmacy are provided to inmates. In addition, work, education, career training, substance abuse treatment, religious services, and recreation are provided to inmates to promote employability, literacy, sobriety, and accountability to crime victims and to increase the likelihood that released inmates will become lawabiding citizens upon release. In the community, the Department supervises offenders released from prison to serve the remainder of their sentence on community supervision. The Department also provides for the return to custody of those offenders who violate conditions of supervision and who represent a serious threat to the safety of the community. Average Daily Population 45,000 40,000 35,000 30,000 25,000 20,000 15,000 Prison Operations and Services Community Corrections Administration 877,568.2 949,166.0 949,166.0 984,224.9 11,103.3 42,389.2 13,529.3 36,142.4 13,529.3 36,142.4 14,739.3 37,207.8 Agency - Approp. Funds 931,060.7 998,837.7 998,837.7 1,036,171.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out 10,015.2 409,787.8 186,539.5 135,841.8 137.6 57.0 43,827.8 257.0 106,578.3 14,237.5 0.0 33,796.4 10,015.2 428,352.3 199,680.0 146,544.8 159.0 66.6 47,634.4 299.9 119,058.3 12,216.8 0.0 44,825.6 10,015.2 428,352.3 199,680.0 146,544.8 159.0 66.6 47,634.4 299.9 119,058.3 12,216.8 0.0 44,825.6 10,168.2 455,704.7 208,091.7 145,978.0 159.0 66.6 47,500.0 299.9 119,308.2 6,800.7 5,000.0 47,263.1 931,060.7 998,837.7 998,837.7 1,036,171.9 General Fund Corrections Fund State Education Fund for Correctional Education DOC - Alcohol Abuse Treatment Transition Program Fund Transition Services Fund Prison Construction and Operations Fund DOC Building Renewal & Preventive Maintenance Penitentiary Land Earnings State Charitable, Penal & Reformatory Land Earnings 899,401.6 23,010.7 413.9 948,188.6 27,517.6 503.5 948,188.6 27,517.6 503.5 980,922.9 32,017.6 524.5 0.0 554.4 554.4 554.4 180.0 555.0 7,499.4 930.0 2,555.0 13,249.4 930.0 2,555.0 13,249.4 3,485.0 828.9 11,499.4 0.0 0.0 0.0 5,000.0 0.0 0.0 1,979.2 3,360.0 1,979.2 3,360.0 979.2 360.0 Agency - Approp. Funds 931,060.7 998,837.7 998,837.7 1,036,171.9 Agency - Approp. Funds Appropriated Fund 10,000 $ 1,200,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI 28,951.4 16,847.8 16,847.8 17,933.7 Overtime/Compensatory Time SLI Private Prison Per Diem 112,356.1 127,999.1 127,999.1 127,636.6 SLI Narrowband Radio 0.0 5,750.0 5,750.0 0.0 Conversation $ 1,000,000 Non-Appropriated Funds 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure FY 2011 Actual $ 800,000 $ 600,000 $ 400,000 $ 200,000 $0 Agency Summary - Appropriated Funds Program/Cost Center Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. ARCOR Enterprises Revolving Community Corrections Enhancement Fund Corrections Donations DOC Special Services Fund Federal Economic Recovery Fund Federal Grant IGA and ISA Fund Indirect Cost Recovery Fund Department of Corrections FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 31,669.5 34,267.0 34,267.0 34,572.5 18.1 100.0 100.0 100.0 65.4 2,564.8 320.7 66.0 4,926.0 6,231.7 66.0 4,926.0 6,231.6 66.0 4,926.0 0.0 11,690.7 107.7 711.5 11,543.5 135.0 1,018.9 11,543.5 135.0 1,018.9 10,749.7 58.7 1,019.8 49 Non-Appropriated Funds FY 2011 Actual Inmate Store Proceeds Fund Risk Management Insurance Reimbursement State Charitable, Penal & Reformatory Land Earnings State DOC RevolvingTransition FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 5.3 4,500.8 4,500.8 4,500.8 326.9 360.0 360.0 360.0 274.2 0.0 0.0 0.0 2,647.0 2,301.1 2,301.1 2,301.1 50,401.8 65,450.0 65,449.9 58,654.6 981,462.4 1,064,287.7 1,064,287.6 1,094,826.6 Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 12,011.3 17,797.4 10,710.8 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Baseline Adjustments Transition Services Consolidation 828.9 The Transition Services program is funded by both the Transition Program Fund and the Transition Services Fund. Laws 2010, Chapter 54, required the deposit of revenues into a "Transition Services Fund", which was never created by statute. This caused an unnecessary new fund to be established to receive revenues. The oversight makes operating the program from two programs cumbersome and inefficient. The Executive recommends eliminating the Transition Services Fund and moving the $2.6 million appropriation and the FY 2012 ending fund balance to the Transition Program Fund. Transition Program Fund 2,555.0 Transition Services Fund (1,726.1) Leap Year Executive Appropriation Recommendations FY 2013 (800.1) The Executive recommends the elimination of FY 2012 one-time funding for leap year. General Fund Standard Adjustments Retirement Standard Adjustment 7,531.1 (800.1) Radio Conversions (5,750.0) The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. The Executive recommends the elimination of FY 2012 one-time funding for the conversion of radios to narrowband. Prison Construction and Operations Fund (1,750.0) General Fund Penitentiary Land Earnings Fund (1,000.0) State Charitable, Penal & Reformatory Land Earnings Fund (3,000.0) 7,525.1 State Education Fund for Correctional Education Fund Rent Standard Adjustment 6.0 348.8 Department of Corrections Building Renewal This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 348.8 Health Insurance Rate Reduction (7,010.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (7,006.3) State Education Fund for Correctional Education Fund (3.7) 5,000.0 Laws 2011, Chapter 34, created the Department of Corrections Building Renewal Fund and provides that the Department of Administration administer the fund. Laws 2011, Chapter 25, appropriated $4.6 million from the Fund to be used for the Department of Correction’s building renewal and preventive maintenance projects. The Executive recommends moving administration of the Fund to the Department of Corrections and appropriating $5.0 million for FY 2013. DOC Building Renewal & Preventive Maintenance 5,000.0 Other Adjustments Correctional Officers 9,256.0 The Executive recommends 306.0 FTE Correctional Officer II positions to achieve two important security objectives. First, the number of Correctional Officers needed to secure a prison is determined by the layout of the building and the risklevel of the inmates. Each Correctional Officer post is assigned to a specific space. Currently, the Department has 193.0 unfilled security posts inside the prisons. 50 Department of Corrections FY 2013 Executive Budget FY 2013 FY 2013 Second, when an inmate is transported outside the prison for medical care, the Correctional Officers who provide security for the transport must leave their regular duty posts, often resulting in security gaps. The Department uses 235,040 man‐hours to cover hospital transportation security, an equivalent of 113.0 full-time Correctional Officers. who cannot be housed with the general population inmates because of threats and conflicts due to such things as religion, race, gang affiliation, type of crime, etc. The population of this subgroup was 791 in FY 2008 and is expected to triple to 2,441 in FY 2012. Both of these subsets must be segregated from the general population as well as from each other. The Executive recommends implementing the increased staffing over two fiscal years, a total of 153.0 officers in FY 2013 and 153.0 in FY 2014. Current Problem General Fund 9,256.0 State Prisons Bed Plan 0.0 Current Status On October 31, 2011, the State Prison System held 40,154 inmates, exceeding the system’s rated capacity of 37,159. To provide housing for the 2,995 surplus inmate population, the Department has created 5,284 temporary beds in unorthodox areas of the prisons (e.g., barber shops, day rooms and libraries) and through the use of bunk beds. The temporary beds also can serve as emergency space for the safe operations of a prison. Since the end of FY 2001, the number of makeshift temporary beds has increased from 2,096 to the current 5,284. As the number of temporary beds has increased, the relative safety of the more recently created temporary beds has decreased. Creating more temporary beds is not advisable. Population Growth For over 20 years, the prison population grew steadily by about 115 inmates per month, with the total population peaking at 40,766 in October 2009. Since then, through the end of October 2011, the population has declined by an average of 26 inmates per month. Barring a dramatic shift of inmates, during FY 2012 and FY 2013 the prison population is expected to have zero growth. During the recent period of prison population contraction, the Department has seen growth in specific custody levels and subgroups of the inmate population. The maximum-custody population has grown by an average of 12 inmates per month over the past two years, while the total inmate population has declined by a monthly average of 26. With the same growth rate expected to continue, the Department will exceed the prisons’ rated and temporary bed capacity at the maximum-custody level by March 2013. The sex offender population makes up 14% of the total prison population, with the majority housed within the medium-custody level. This population has grown by 4.1% over the last year. The protective segregation population is made up of prisoners Agency Operating Detail A vacancy rate of at least five percent is necessary within each custody level to allow for the safe management of a prison population that is becoming exceedingly subdivided into incompatible groups of inmates. Housing restrictions, maintenance, disturbances and emergencies all require movement of inmates. The movement of inmates creates greater risk of escape and of harm to correctional staff and inmates. The lower the vacancy rate, the more frequently the inmates must be moved to manage a compatible housing plan of multiple-custody levels and subgroups. The prison system as a whole has a vacancy rate of about 6%. Unfortunately, a majority of the vacant beds are isolated to the female and minimum-custody male populations. The male inmate population across all custody levels has about a four percent vacancy rate, with the medium-custody male population having less than one percent of vacant bed space for management (this includes the use of 2,928 temporary beds, 40% more than the entire system used in FY 2001). The current maximum-custody male population has a bed vacancy rate of 6%. However, at the current growth rate of 12 inmates per month, the Department will have exhausted its vacant maximum-level beds by April 2013. 5,000 New Private Beds Authorized in 2009 Laws 2009, Third Special Session, Chapter 6, requires the Department to issue a request for proposals and contract for 5,000 private prison beds. The Legislature enacted the provision based on the assumption that the prison population would grow by 114 inmates per month during Fiscal Years 2010 and 2011 and perhaps beyond. Considering the dramatic change in population growth and the inflexible language that requires the Department to contract for exactly 5,000 private prison beds, and not a lesser amount, the Executive canceled the request for proposals on December 22, 2011. 2,000 New Private Beds To deal with the rapid growth of specific medium-custody, sex offender and protected-segregation populations, the Executive recommends a private contract for 2,000 male, medium-custody beds planned to open in January 2014. 500 Maximum Male Beds Department of Corrections 51 FY 2013 The maximum-custody population growth will require the immediate construction of new State beds. The Executive recommends allocating $50.0 million to construct 500 maximumcustody male beds on the site of the Rast Unit at the Lewis Prison in Buckeye. The beds will be planned to open beginning in July 2014. Corrections Fund Revenue Redirection 4,500.0 Laws 2011, Chapter 33, allows the Director to establish fees assessed for (a) deposits made to prisoner spendable accounts and (b) background checks for inmate visitors. Fee revenues are deposited in the Department of Corrections Building Renewal Fund. The same legislation mandates transfers of $500,000 from the Inmate Store Proceeds Fund, $500,000 from the Special Services Fund, and $1.0 million from the Arizona Correctional Industries Revolving Fund. These sources as originally proposed were expected to provide enough revenue for the $4.6 million appropriation in FY 2012. However, the final version of the fee language is expected to produce revenues of only $2.2 million. To ensure a sufficient and consistent source of revenue to the Fund for the immediate future, the Executive recommends a $4.5 million transfer from the Corrections Fund in FY 2013 and again in FY 2014. Corrections Fund 4,500.0 AG Pro-Rata Appropriation (2,891.4) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (2,889.1) State Education Fund for Correctional Education Fund State Employee Pay Adjustment (2.3) 26,320.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 26,299.9 State Education Fund for Correctional Education Fund 21.0 Performance Measures FY 2010 Actual Number of escapes of inmates from any location Average daily inmate population Average daily bed deficit FY 2011 FY 2012 FY 2013 Actual Expected Expected 1 4 0 0 40,458 40,226 40,154 40,154 4,638 2,621 3,751 3,751 The Executive recommends a lump-sum appropriation to the agency. 52 Department of Corrections FY 2013 Executive Budget CBA Agency Summary - Appropriated Funds Board of Cosmetology Mission: To ensure the public health, welfare, and safety through education and enforcement of the cosmetology laws and rules by the efficient regulation of salons, schools, and individuals who practice cosmetology. Description: In order to achieve its mandate of protecting the public in Arizona, the Board of Cosmetology issues 12 categories of licenses to salons, schools and individuals who qualify by reciprocity or through the administration of a written and practical examination. The Board enforces regulation by routine health and safety inspections of salons and schools, investigates consumer complaints, conducts hearing and imposes enforcement action when appropriate. The Board also establishes health and safety standards, educational and curriculum standards and oversight, and provides monthly classes on infection control and law and regulation practices for the general licensing population by registration. The Board also uses the educational classes for remediation and regulatory rehabilitation of violators by Board Order as terms of probation, and Laws 2011 Chapter 199 mandates infection protection and law classes for all reciprocity applicants. Furthermore, the Board offers electronic services to customers to increase efficiency and reduce the demands on fulltime staff. The Board is recognized by national industry entities as being progressive, insightful, and a leader in cosmetology regulation. FY 2011 Actual Program/Cost Center Licensing and Regulation FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,678.2 1,742.1 1,742.1 1,775.9 Agency - Approp. Funds 1,678.2 1,742.1 1,742.1 1,775.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 24.5 621.5 288.8 212.4 34.8 10.5 0.0 483.8 26.4 0.2 24.5 702.0 306.2 92.7 35.0 10.5 0.0 556.8 38.9 0.0 24.5 702.0 306.2 92.7 35.0 10.5 0.0 556.8 38.9 0.0 24.5 737.1 304.9 92.7 35.0 10.5 0.0 556.8 38.9 0.0 1,678.2 1,742.1 1,742.1 1,775.9 1,678.2 1,742.1 1,742.1 1,775.9 1,678.2 1,742.1 1,742.1 1,775.9 Agency - Approp. Funds Appropriated Fund Cosmetology Board Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Cosmetology Board Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 23.4 157.1 157.1 157.1 23.4 157.1 157.1 157.1 1,701.6 1,899.2 1,899.2 1,933.0 Executive Appropriation Recommendations Total Licenses Issued FY 2013 120,000 Standard Adjustments 100,000 Retirement Standard Adjustment 80,000 2.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 60,000 40,000 Cosmetology Board Fund 20,000 2.7 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (11.6) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Cosmetology Board Fund $ 2,500 (11.6) Other Adjustments $ 2,000 State Employee Pay Adjustment $ 1,500 42.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 1,000 Cosmetology Board Fund 42.7 $ 500 Performance Measures $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Operating Detail Board of Cosmetology FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected 53 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Average calendar days from receipt of 21 17 17 17 completed application to issuance of license Total individuals and establishments 107,000 113,188 118,000 123,000 licensed Total inspections conducted 5,975 6,148 6,300 6,300 Total complaints and application denials 2,473 2,354 2,400 2,400 The Executive recommends a lump-sum appropriation to the agency. 54 Board of Cosmetology FY 2013 Executive Budget JCA Arizona Criminal Justice Commission Mission: To sustain and enhance the cohesiveness, the effectiveness, and the coordination of the criminal justice system in Arizona; to monitor the criminal justice system and identify needed revisions to the system; to monitor existing criminal justice statutes and proposed or new criminal justice statutes and identify needed revisions in the statutes or proposed legislation; to acquire and administer designated funds for the enhancement of specified criminal justice programs and activities in the State of Arizona; and to make reports on these activities and functions. Description: The Commission administrates several federal criminal justice grants provided to local law enforcement agencies. Victims Compensation and Assistance Fund Drug and Gang Prevention Resource Center Fund State Aid to County Attorneys Fund State Aid to Indigent Defense Fund Agency - Approp. Funds Criminal Justice Enhancement Fund Driving Under Influence Abatement Fund Federal Economic Recovery Fund Federal Grant $ 20,000 $ 15,000 $ 10,000 Agency - Nonapp. Funds $ 5,000 Agency Total - All Funds $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Agency Management Crime Victims Statistical Analysis Center Crime Control Criminal Justice System Improvement Agency - Approp. Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 261.6 3,373.4 128.5 1,704.5 18.8 295.9 4,085.4 234.7 1,001.1 8.4 295.9 4,085.4 234.7 1,001.1 8.4 304.0 4,092.1 237.6 1,002.0 8.7 5,486.8 5,625.5 5,625.5 5,644.4 8.0 396.5 161.7 114.0 6.2 4.6 4,689.4 53.4 15.5 45.5 8.0 430.6 145.6 187.3 8.1 6.4 4,718.1 56.5 27.4 45.5 8.0 430.6 145.6 187.3 8.1 6.4 4,718.1 56.5 27.4 45.5 8.0 452.2 145.5 187.3 8.1 6.4 4,718.1 56.8 27.4 42.6 5,486.8 5,625.5 5,625.5 5,644.4 590.9 624.7 624.7 640.7 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund Criminal Justice Enhancement Fund Agency Operating Detail 3,792.5 128.5 234.7 234.7 237.6 973.6 973.6 973.6 973.6 700.3 0.0 0.0 0.0 5,486.8 5,625.5 5,625.5 5,644.4 FY 2011 Actual $ 25,000 Program/Cost Center 3,792.5 Non-Appropriated Funds $ 30,000 FY 2012 Approp. 3,792.5 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Victim Compensation 3,093.5 3,792.5 3,792.5 3,792.5 and Assistance SLI State Aid to County 973.6 973.6 973.6 973.6 Attorneys SLI State Aid to Indigent 700.3 0.0 0.0 0.0 Defense General Fund and Total Funds Expenditure FY 2011 Actual 3,093.5 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,036.9 3,941.8 3,941.8 5,560.3 (48.1) 0.0 0.0 0.0 11,033.9 3,279.2 3,279.2 0.0 4,203.5 14,986.8 14,986.8 10,749.6 19,226.2 22,207.8 22,207.8 16,309.8 24,713.0 27,833.3 27,833.3 21,954.2 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 14,194.0 19,059.8 10,654.6 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Criminal Justice Enhancement Fund 1.4 Drug and Gang Prevention Resource Center Fund 0.2 Rent Standard Adjustment 0.3 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Drug and Gang Prevention Resource Center Fund Health Insurance Rate Reduction 0.3 (6.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning Arizona Criminal Justice Commission 55 FY 2013 January 1, 2013. Criminal Justice Enhancement Fund (5.3) Drug and Gang Prevention Resource Center Fund (0.9) Other Adjustments State Aid to Indigent Defense Fund 0.0 In the FY 2012 budget, the revenues that went to the State Aid to Indigent Defense Fund were diverted to the GIITEM Fund Border Security and Law Enforcement Subaccount during FY 2012. The Executive recommends continuing to divert this revenue to the GIITEM Fund Border Security and Law Enforcement Subaccount as permanent law. AG Pro-Rata Appropriation (2.9) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Criminal Justice Enhancement Fund (2.5) Drug and Gang Prevention Resource Center Fund (0.4) State Employee Pay Adjustment 26.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Criminal Justice Enhancement Fund 22.4 Drug and Gang Prevention Resource Center Fund 3.7 Performance Measures FY 2010 Actual Applicants requesting funds Number of arrests made by grantfunded task forces Number of studies/reports completed and published FY 2011 Actual FY 2012 Expected FY 2013 Expected 53 56 55 55 7,811 6858 6500 6500 11 52 20 40 The Executive recommends a lump-sum appropriation to the agency with special line items. 56 Arizona Criminal Justice Commission FY 2013 Executive Budget SDA Arizona State Schools for the Deaf and the Blind Mission: To work together with parents, school districts, advocacy organizations, business and community members to create nurturing environments in which children with a vision or hearing loss feel valued, develop their unique abilities, strive to achieve academic excellence, and develop skills to help them become productive and responsible members of society. Description: The Arizona State Schools for the Deaf and the Blind provide education and evaluation to children and youth, with a vision or hearing loss, from birth to 22 years of age. School-aged children are served in one of the schools located in Tucson or Phoenix or in their home school district. The Tucson campus provides a residential program. Preschool children are served in both Tucson and Phoenix. Infants and toddlers with vision or hearing loss receive services in their homes throughout the State. ASDB also provides comprehensive evaluation services for some children referred with multiple disabilities. Agency - Approp. Funds 33,861.1 33,411.8 33,411.8 33,931.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out 572.2 16,858.5 8,055.2 1,770.0 21.9 40.1 121.8 11.9 5,456.0 1,061.4 2.4 461.9 572.2 18,816.0 9,068.8 1,665.5 20.4 39.7 79.8 0.0 2,484.6 1,237.0 0.0 0.0 572.2 18,816.0 9,068.8 1,665.5 20.4 39.7 79.8 0.0 2,484.6 1,237.0 0.0 0.0 572.2 19,756.8 9,016.7 1,665.5 20.4 39.7 79.8 0.0 2,242.1 1,237.0 0.0 (127.0) 33,861.1 33,411.8 33,411.8 33,931.0 21,511.2 12,349.9 20,686.3 12,725.5 20,686.3 12,725.5 20,963.4 12,967.6 33,861.1 33,411.8 33,411.8 33,931.0 Agency - Approp. Funds Appropriated Fund General Fund Schools for the Deaf & Blind Fund Agency - Approp. Funds Non-Appropriated Funds Number of Students Served FY 2011 Actual 2,500 2,000 1,500 1,000 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. ASDB Classroom Site Fund ASDB Cooperative Services Facilities Use Fund Federal Grant Instructional Improvement Fund State Grants Trust Fund 1,589.9 16,267.0 66.6 2,688.1 27.9 1,762.3 16,327.5 105.5 3,669.4 243.3 1,762.3 16,327.5 105.5 3,669.4 243.3 1,826.0 16,700.9 106.6 2,541.4 0.0 24.8 136.2 32.9 175.0 32.9 175.0 33.1 176.3 Agency - Nonapp. Funds 20,800.5 22,315.9 22,315.9 21,384.4 54,661.6 55,727.7 55,727.7 55,315.4 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency General Fund and Total Funds Expenditure FY 2011 Actual $ 70,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 2,688.1 3,670.3 2,632.8 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 60,000 $ 50,000 $ 40,000 Executive Appropriation Recommendations $ 30,000 FY 2013 $ 20,000 Standard Adjustments $ 10,000 Retirement Standard Adjustment $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Phoenix Day School Tucson Campus Regional Cooperatives Preschool Administration Agency Operating Detail FY 2011 Actual 8,527.5 16,311.7 848.7 4,034.8 4,138.4 FY 2012 Approp. FY 2012 Exec. Rec. 9,613.1 14,001.8 797.5 5,412.4 3,587.0 9,613.1 14,001.8 797.5 5,412.4 3,587.0 FY 2013 Exec. Rec. 9,834.0 14,090.3 816.9 5,521.5 3,668.3 71.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 41.9 Schools for the Deaf and Blind Fund 29.6 Rent Standard Adjustment (242.5) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Arizona State Schools for the Deaf and the Blind 57 FY 2013 General Fund (121.7) Schools for the Deaf and Blind Fund (120.8) Health Insurance Rate Reduction (316.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (233.1) Schools for the Deaf and Blind Fund (82.9) Other Adjustments AG Pro-Rata Appropriation (127.0) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (74.5) Schools for the Deaf and Blind Fund (52.5) State Employee Pay Adjustment 1,133.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 664.4 Schools for the Deaf and Blind Fund 468.8 Performance Measures FY 2010 Actual Percent of parents rating overall qualify of services as good or excellent based on annual survey PDS Percent of Phoenix students successful in transition settings three years after graduation Percent of parents satisfied with the quality of the program in Phoenix Percent of Tucson students successful in transition settings three years after graduation Percent of parents satisfied with the quality of the program in Tucson FY 2011 Actual FY 2012 Expected FY 2013 Expected 99 98 95 95 77 88 90 90 98 96 95 95 89 89 90 90 98 99 95 95 The Executive recommends a lump-sum appropriation by program. 58 Arizona State Schools for the Deaf and the Blind FY 2013 Executive Budget DFA Commission for the Deaf and the Hard of Hearing Mission: To ensure, in partnership with the public and private sectors, accessibility for the Deaf, Hard of Hearing, DeafBlind and persons with speech difficulties to improve their quality of life. Description: The Arizona Commission for the Deaf and the Hard of Hearing (ACDHH) acts as an information bureau for the Deaf, Hard of Hearing, Deaf Blind, and individuals with speech difficulties, as well as for state agencies and institutions providing services to those consumers. Local government and other public and private community agencies also benefit from ACDHH information, programs and activities. For example, ACDHH Deaf and Hard of Hearing Specialists provide sensitivity training for state agencies and other organizations and groups that work with the Deaf, Hard of Hearing, Deaf Blind, and individuals who have speech difficulties. ACDHH also administers a telecommunications equipment distribution voucher program that loans equipment to qualifying Arizona State residents. The Arizona Relay Service (7-1-1), which allows equal accessibility of public telephone service, is available through ACDHH as well. The service is administered by ACDHH and is required by the Federal Communications Commission. ACDHH is also mandated to license American Sign Language interpreters and certify American Sign Language teachers. Telecommunications Devices Distributed 8,000 7,000 General Fund and Total Funds Expenditure $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Council Activities TDD (Telecommunication Device for the Deaf) FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,231.6 2,011.6 1,734.4 2,011.3 1,734.4 2,011.3 1,783.5 2,239.4 Agency - Approp. Funds 3,243.2 3,745.7 3,745.7 4,022.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out 15.0 622.1 255.1 432.4 9.9 5.9 0.0 1,750.1 165.9 0.0 1.8 15.0 692.9 278.1 385.8 61.5 4.9 0.0 2,057.1 219.4 46.0 0.0 15.0 692.9 278.1 385.8 61.5 4.9 0.0 2,057.1 219.4 46.0 0.0 15.0 727.6 278.6 385.8 61.5 4.9 0.0 2,303.7 219.4 46.0 (4.7) 3,243.2 3,745.7 3,745.7 4,022.9 3,243.2 3,745.7 3,745.7 4,022.9 3,243.2 3,745.7 3,745.7 4,022.9 Agency - Approp. Funds 6,000 Appropriated Fund 5,000 Telecommunication for the Deaf 4,000 3,000 Agency - Approp. Funds 2,000 Non-Appropriated Funds 1,000 FY 2011 Actual 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 0.0 0.0 0.0 3,243.2 3,745.7 3,745.7 4,022.9 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 2.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Agency Operating Detail Telecom for the Deaf Fund 2.6 Rent Standard Adjustment 25.8 Commission for the Deaf and the Hard of Hearing 59 FY 2013 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Telecom for the Deaf Fund 25.8 Health Insurance Rate Reduction (9.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Telecom for the Deaf Fund (9.3) Other Adjustments Arizona Relay Service 220.8 As mandated in statute and required by the Americans with Disabilities Act, the Commission administers the Arizona Relay Service (AZRS) to facilitate telephone service for individuals who are deaf, hard of hearing, or speech disabled. The Executive recommends funding be expanded outreach efforts as part of the new AZRS contract that is expected to be executed during FY 2013. The Executive also recommends funding for the anticipated increase in call volume. Telecom for the Deaf Fund 220.8 AG Pro-Rata Appropriation (4.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Telecom for the Deaf Fund (4.7) State Employee Pay Adjustment 41.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Telecom for the Deaf Fund 41.9 Performance Measures FY 2010 Actual Number of general licensed interpreters Annual call minutes for the telecommunications relay service Number of equipment distributed to consumers Resumed Voucher Program  Percent of customer satisfaction with equipment distribution voucher program Number of applications distributed to consumers regarding the equipment distribution program Percent of telecommunications relay service calls completed without a complaint 286 1,285,155 FY 2011 Actual 293 FY 2012 Expected FY 2013 Expected 320 350 907,938 1,200,000 1,260,000 359 900 1,100 1,100 96.3 97 90 90 2,340 994 1,500 1,500 99.5 99.9 99.5 99.5 The Executive recommends a lump-sum appropriation to the agency. 60 Commission for the Deaf and the Hard of Hearing FY 2013 Executive Budget DXA State Board of Dental Examiners Mission: To provide professional, courteous service and information to the dental profession and the general public through examination, licensing, complaint adjudication and enforcement processes to protect the oral health, safety, and welfare of Arizona citizens through a fair and impartial system. Description: The State Board of Dental Examiners examines, licenses, and certifies professionals to practice in the field of dentistry. The Board also accepts complaints against licensees and certificate holders, investigates allegations, and administratively adjudicates complaints. The Board serves approximately 8,000 professionals licensed or certified to practice in the state, as well as all Arizona citizens who receive their professional services. Number of Licenses Issued Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 0.0 159.8 81.5 1.0 0.0 182.5 23.7 0.0 0.0 182.5 23.7 0.0 0.0 182.5 23.7 0.0 1,004.1 1,183.8 1,183.8 1,210.3 1,004.1 1,183.8 1,183.8 1,210.3 1,004.1 1,183.8 1,183.8 1,210.3 Appropriated Fund Dental Board Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 2.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Dental Board Fund 9,000 2.0 8,000 Health Insurance Rate Reduction 7,000 6,000 (7.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 5,000 4,000 3,000 Dental Board Fund 2,000 (7.3) 1,000 Other Adjustments 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 State Employee Pay Adjustment 31.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund and Total Funds Expenditure Dental Board Fund $ 1,200 $ 1,000 31.8 Performance Measures $ 800 FY 2010 Actual $ 600 Total number of individuals or facilities licensed Customer satisfaction rating (scale 1-5) $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,004.1 1,183.8 1,183.8 1,210.3 1,004.1 1,183.8 1,183.8 1,210.3 11.0 400.8 166.7 190.0 2.6 1.7 11.0 525.3 144.4 299.2 3.2 5.5 11.0 525.3 144.4 299.2 3.2 5.5 11.0 551.6 144.6 299.2 3.2 5.5 Average number of calendar days from receipt of complaint to resolution of complaint Total number of investigations conducted Total number of complaints received annually Average calendar days to renew a license (from receipt of application to issuance) FY 2011 Actual 8,161 8364 FY 2012 Expected FY 2013 Expected 8566 8668 5 5 4 4 114 104 150 150 454 326 447 447 370 276 368 368 10 10 10 10 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Agency Operating Detail State Board of Dental Examiners 61 Non-Appropriated Funds CDA Arizona Early Childhood Development and Health Board FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Mission: To increase the quality of, and access to, the early childhood development and health system that ensures a child entering school comes healthy and ready to succeed. Federal Economic Recovery Fund Federal Grant 1,033.5 1,456.1 1,456.1 1,456.1 87.5 23.0 23.0 23.0 Agency - Nonapp. Funds 113,840.2 240,435.1 240,435.1 152,699.4 Description: The Arizona Early Childhood Development and Health Board or First Things First (FTF) is a voter approved initiative to ensure the quality and accessibility of early childhood development and health programs at the community level. Proposition 203 created a new, state‐level board, the Arizona Early Childhood Development and Health Board, which provides oversight and guidance on the implementation of the Proposition. First Things First is also the name of the state agency created to carry out the work of the Arizona Early Childhood Development and Health Board. Agency Total - All Funds 113,840.2 240,435.1 240,435.1 152,699.4 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 1,121.0 1,479.1 1,479.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. The Arizona Early Childhood Development and Health Board receives revenues from additional tax levied on tobacco products. Ninety percent of the monies deposited into the Early Childhood Development and Health Fund are devoted to the program costs and ten percent are devoted to administrative costs. First Things First establishes Regional Partnership Councils throughout the state. The Regional Partnership Councils are to include eleven members who reside or work in the region. Funding will be based on the number of children ages birth to five years living in the area, as well as the number of young children whose incomes do not exceed 100% of the federal poverty level. Programs funded through the AZECDH Board may be conducted either by grantees in the region or directly by the Regional Partnership Council. General Fund and Total Funds Expenditure $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000 $0 Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual Early Childhood Development and Health Fund 62 112,719.2 FY 2012 Expend. Plan 238,956.0 FY 2012 Exec. Rec. 238,956.0 FY 2013 Exec. Rec. 151,220.3 Arizona Early Childhood Development and Health Board FY 2013 Executive Budget DEA Department of Economic Security Mission: To promote the safety, well-being and self-sufficiency of children, adults, and families. Description: The Department of Economic Security (DES) is an integrated human services agency that provides critical protective and assistance services each month to more than one million of Arizona's children, adults and families. Together, DES’ programs impact the safety, well-being and selfsufficiency of Arizonans. Some of these programs include: Child Protective Services; Children Services to provide families the tools they need to care for their children; child care assistance for working parents; Adult Protective Services; domestic violence shelter and supports; early intervention services for infants and toddlers at risk of developmental delays; home and communitybased services for individuals with developmental disabilities and the aged; independent living programs for both seniors and young adults; unemployment insurance; employment assistance including vocational rehabilitation and job training; nutrition assistance and child support enforcement. Title XIX - DD Enrollment 25,000 20,000 15,000 10,000 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Child Care Enrollment 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 DES and its services are an integral part of the Arizona community. Recognizing the interconnectedness and interdependence between DES services and community resources, the Department works closely with a network of community organizations and providers, as well as federal agencies that oversee Department programs, other state agencies, and Native American tribes in the delivery of services to the people of Arizona. 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 TANF Cash Benefits Enrollment 60,000 50,000 40,000 The Department’s objective is to move beyond simply delivering services to ensuring that these services are offered to improve outcomes and are integrated to best meet the clients' needs in the most effective and efficient manner possible. Emphasis is on assisting individuals and families to gain the tools they need to effectively and permanently escape the hardships of poverty and other barriers that currently prevent them from being selfsufficient. The following overarching, interrelated goals have been established for DES: Strengthen individuals and families Increase self-sufficiency Collaborate with communities to increase capacity Increase efficiency and effectiveness through innovation and accountability 30,000 20,000 10,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Unemployment Insurance Enrollment 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 These goals serve as the framework and foundation for the DES vision that every child, adult, and family in the state of Arizona will be safe and economically secure. Agency Operating Detail 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Department of Economic Security 63 Children and Family Services Training Program Fund Public Assistance Collections Fund Department Long-Term Care System Fund Spinal and Head Injuries Trust Fund Indirect Cost Recovery Fund General Fund and Total Funds Expenditure $ 3,000,000 $ 2,500,000 $ 2,000,000 $ 1,500,000 $ 1,000,000 $ 500,000 Agency - Approp. Funds 32.1 205.3 205.3 212.7 90.2 423.9 423.9 436.5 22,416.9 30,518.4 30,518.4 30,520.5 1,615.9 1,864.7 1,864.7 1,874.5 0.0 1,000.0 1,000.0 1,000.0 970,306.3 1,083,861.2 1,070,161.2 1,120,147.7 $0 Agency Summary - Appropriated Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Administration Developmental Disabilities Benefits and Medical Eligibility Child Support Enforcement Aging and Community Services Children, Youth and Families Employment and Rehabilitation Services 64,984.0 264,669.6 107,301.3 77,384.4 366,043.0 88,367.7 77,384.4 352,343.0 88,367.7 78,268.7 369,646.4 89,079.0 17,318.2 30,020.8 20,945.8 32,491.2 20,945.8 32,491.2 25,868.6 32,628.4 282,478.4 281,395.8 281,395.8 306,952.7 203,534.0 217,233.3 217,233.3 217,703.9 Agency - Approp. Funds 970,306.3 1,083,861.2 1,070,161.2 1,120,147.7 3,726.0 110,517.4 52,092.4 23,745.2 1,653.6 16.9 281.7 726,076.9 44,953.0 10,967.6 1.6 0.0 3,726.0 132,649.2 61,876.8 28,516.1 1,913.8 17.5 575.3 804,789.4 44,367.6 9,154.1 1.4 0.0 3,726.0 132,649.2 61,876.8 28,516.1 1,913.8 17.5 575.3 791,089.4 44,367.6 9,154.1 1.4 0.0 3,837.0 144,319.4 63,031.4 28,516.1 1,913.8 17.5 575.3 827,003.6 45,617.7 9,154.1 1.4 (2.6) 970,306.3 1,083,861.2 1,070,161.2 1,120,147.7 538,226.9 47,190.5 602,603.3 56,029.8 588,903.3 56,029.8 663,859.8 56,062.2 235,736.7 239,304.4 239,304.4 213,655.5 112,440.9 130,567.5 130,567.5 130,884.2 9.2 1,129.9 1,129.9 1,129.9 10,327.0 16,534.9 16,534.9 16,832.8 2,220.0 2,220.0 2,220.0 2,220.0 0.0 1,459.1 1,459.1 1,459.1 Program/Cost Center Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Cost Allocation Agency - Approp. Funds Appropriated Fund General Fund Workforce Investment Grant Temporary Assistance for Needy Families Child Care and Development Fund Special Administration Fund Child Support Enforcement Administration Fund Domestic Violence Shelter Fund Child Abuse Prevention Fund 64 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Finger Imaging 551.1 0.0 0.0 0.0 SLI Attorney General Legal 782.3 14,717.5 14,717.5 15,150.1 Services SLI Payment "Deferral" 32,000.0 35,000.0 35,000.0 35,000.0 SLI Case Management Title 11,076.9 10,943.6 10,943.6 11,208.4 XIX SLI Case Management State3,887.3 3,846.0 3,846.0 3,942.3 Only SLI Home and Community 148,537.8 227,063.6 213,363.6 229,959.2 Based Services Title XIX SLI Home and Community 17,111.9 32,615.3 32,615.3 32,632.3 Based Services State-Only SLI Institutional Services 5,365.0 5,351.6 5,351.6 5,383.0 Title XIX SLI Medical Services 38,562.9 38,552.8 38,552.8 38,579.1 SLI ATP-Coolidge Title 4,754.2 4,704.0 4,704.0 4,793.1 XIX SLI State-Funded Long 21,916.9 26,528.1 26,528.1 26,530.2 Term Care Services SLI Medicare Clawback 1,731.3 2,496.9 2,496.9 2,496.9 Payments SLI Arizona Early 407.3 0.0 0.0 0.0 Intervention Program SLI TANF Cash Benefits 65,515.8 44,999.4 44,999.4 44,999.4 SLI Tribal Pass-Thru 4,629.7 4,680.3 4,680.3 4,680.3 Funding SLI Tuberculosis Control 6.1 0.0 0.0 0.0 Payments SLI CSE Attorney General 3,022.5 0.0 0.0 0.0 Legal Services SLI County Participation 577.7 1,339.1 1,339.1 1,339.1 SLI Adult Services 6,820.4 6,924.1 6,924.1 6,924.1 SLI Community and 3,297.4 3,724.0 3,724.0 3,724.0 Emergency Services SLI Coordinated Hunger 1,583.0 1,754.6 1,754.6 1,754.6 Program SLI Coordinated Homeless 2,481.2 2,522.6 2,522.6 2,522.6 Program SLI Domestic Violence 11,479.1 12,123.7 12,123.7 12,123.7 Prevention SLI Children Support 55,554.7 68,867.6 68,867.6 68,867.6 Services SLI CPS Emergency 4,700.7 0.0 0.0 0.0 Placement SLI CPS Residential 17,275.2 0.0 0.0 0.0 Placement SLI Foster Care Placement 19,173.7 21,212.6 21,212.6 21,212.6 SLI Comprehensive Medical 1,517.8 0.0 0.0 0.0 and Dental Program Department of Economic Security FY 2013 Executive Budget SLI Joint Substance Abuse AZ Familes (FIRST) SLI Permanent Guardianship Subsidy SLI Adoption Services SLI CPS Appeals SLI CYF Attorney General Legal Services SLI Independent Living Maintenance SLI CPS Emergency and Residential Placement SLI JOBS SLI Day Care Subsidy SLI Transitional Child Care SLI Vocational Rehabilitation Services SLI Independent Living Rehabilitation Services SLI Workforce Investment Act - Discretionary SLI Workforce Investment Act - Local Governments SLI Workforce Investment Act Services 7,730.6 0.0 0.0 0.0 11,220.7 8,815.3 8,815.3 11,215.3 59,299.3 700.6 10,942.2 57,744.6 0.0 0.0 57,744.6 0.0 0.0 74,772.0 0.0 0.0 2,369.6 2,719.3 2,719.3 2,719.3 0.0 22,201.7 22,201.7 22,201.7 11,229.3 94,771.2 20,918.7 3,939.8 13,005.6 121,396.6 0.0 5,088.5 13,005.6 121,396.6 0.0 5,088.5 13,005.6 121,396.6 0.0 5,088.5 1,137.3 0.0 0.0 0.0 4,496.9 0.0 0.0 0.0 Retirement Standard Adjustment 39,516.9 0.0 0.0 0.0 0.0 51,654.6 51,654.6 51,654.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. FY 2011 Actual FY 2012 Expend. Plan Agency - Nonapp. Funds 4,630,799.2 Agency Total - All Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,779,654.5 3,779,650.9 3,303,789.0 4,863,515.7 4,849,812.1 4,423,936.7 5,601,105.5 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 3,661,077.5 3,064,304.4 2,676,684.9 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments General Fund Non-Appropriated Funds FY 2011 Actual Arizona Job Training Fund Child Passenger Restraint Fund Child Support Enforcement Administration Fund DD Client Investment Department Long-Term Care System Fund Developmentally Disabled Client Trust Economic Security Client Trust Economic Security CPA Investments Economic Security Donations Federal Grant Industries for the Blind Fund Neighbors Helping Neighbors Non Lapsing GF Tribal Capital Revenue From State or Local Agency Special Olympics Fund Unemployment Insurance Benefits Unemployment Special Assessment Fund Non-Appropriated Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,390.3 116.0 1,322.7 116.0 1,322.7 116.0 1,367.6 116.0 39,378.4 40,320.2 40,320.2 31,760.9 11.8 596,201.3 9.1 640,587.6 9.1 640,587.6 9.1 647,570.4 24.2 21.7 21.7 21.7 458.7 1,350.0 1,350.0 1,350.0 0.0 162.0 162.0 162.0 3.3 3.3 3.3 3.3 3,327,641.0 19,137.9 2,692,527.7 19,706.9 2,692,527.7 19,706.9 2,360,729.0 19,876.5 62.4 62.0 62.0 62.0 0.0 3.6 0.0 0.0 206.9 200.0 200.0 200.0 107.5 646,059.5 91.5 218,470.2 91.5 218,470.2 91.5 183,669.1 0.0 164,700.0 164,700.0 56,800.0 Agency Operating Detail 504.1 303.6 Workforce Investment Grant Fund Temporary Assistance for Needy Families 2.9 149.2 Child Care and Development Fund 23.8 Child Support Enforcement Administration Fund 22.5 Children and Family Services Training Program Fund 0.4 Public Assistance Collections Fund 0.9 Department Long-Term Care System Fund 0.2 Spinal and Head Injuries Trust Fund 0.7 Rent Standard Adjustment 67.8 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 37.8 Temporary Assistance for Needy Families 30.5 Child Care and Development Fund (0.8) Child Support Enforcement Administration Fund (0.3) Public Assistance Collections Fund 0.3 Spinal and Head Injuries Trust Fund 0.3 Health Insurance Rate Reduction (2,757.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (2,571.4) Workforce Investment Grant Fund (16.4) Child Care and Development Fund (84.4) Child Support Enforcement Administration Fund (81.5) Department Long-Term Care System Fund (0.8) Spinal and Head Injuries Trust Fund (2.5) Department of Economic Security 65 FY 2013 Baseline Adjustments TANF Backfill 0.0 In recent years, the State of Arizona has received additional Temporary Assistance for Needy Families (TANF) dollars that have been used to offset reductions to the DES General Fund budget. In FY 2013, some of the temporary influxes of federal funding will expire, leaving a ($25.8 million) shortfall in the DES budget. There are two primary causes of the TANF funding shortfall in FY 2013: 1. TANF Supplemental Grants for Population Increases. From 1998 to 2011, the federal government provided a “population supplemental” to the TANF Block Grant for states that experienced high levels of growth and also had low levels of welfare spending per capita. Arizona was one of 17 states that qualified for this funding. Federal authorization for the population supplemental expired on June 30, 2011. 2. TANF Funding Cliff. In FY 2011, the Legislature appropriated an additional $15.0 million in TANF expenditure authority to spend down excess fund balance and offset General Fund reductions. This increase was always intended to be temporary in nature. Now the fund balance is exhausted, and the appropriation authority exceeds the available TANF dollars allocated to the State. In addition, the TANF emergency and contingency funds will no longer be available to the State, resulting in an ongoing shortfall. The Executive recommends $25.8 million to offset the loss of equivalent TANF Block Grant dollars. Without these funds, it is likely that DES will be forced to make substantial reductions to programs funded with TANF dollars, many of which exist in the Division of Children, Youth and Families. It should also be noted that the Department was able to secure $10.0 million in additional TANF contingency funds for FY 2012. So while the Department will be able to carry additional balance forward into FY 2013 to reduce its initial need to backfill lost federal dollars, the contingency funds will likely not be available again in FY 2013; therefore, the Department will need to backfill an additional $10.0 million in FY 2014 to avoid making further cuts to programs funded with TANF dollars. General Fund Temporary Assistance for Needy Families TXIX Developmental Disabilities 25,828.6 (25,828.6) 2,786.8 The Division of Developmental Disabilities (DDD) serves vulnerable individuals whose disabilities must manifest prior to age 18 and are attributable to cerebral palsy, epilepsy, autism or cognitive disability. Those individuals also must have substantial functional limitation in three or more areas of major life activities, 66 FY 2013 such as self-care, language, learning, mobility, self-direction, capacity for independent living, and economic self-sufficiency. This federally mandated program seeks to maximize the independence of individuals enrolled in the program. While capitation rate changes have yielded savings in recent years, they have not fully offset caseload growth for this mandatory population. The population is estimated to exceed 25,000 clients in FY 2013. The Executive recommends $2.8 million in FY 2013 for 4% caseload growth in Title XIX Developmental Disabilities. General Fund 2,786.8 Child Support - Loss of SSRE 4,527.5 When a family applies for TANF Cash Assistance, they must assign to the Department their right to collect child support. That assignment is referred to as the State Share of Retained Earnings (SSRE). With the reductions to the timeframe that a family may remain on TANF Cash Assistance passed in Laws 2011, Chapter 32, the amount of the earnings that can be retained by the State has been reduced by an estimated $4.5 million, which in turn will cost the State an additional $9.0 million in federal match. This $13.5 million reduction is almost 30% of the Division of Child Support Enforcement’s operating budget. However, the Division is still under tight federal requirements to ensure timely and accurate collections on behalf of their clients. Without replacement funding, the Division will have to cut its workforce by 55% to remain within budget. If performance suffers as a result of these cuts, an additional $6.4 million in federal incentive grants may be lost due to failure to achieve sufficient performance levels. The eligibility changes for TANF Cash Assistance have undercut the SSRE to the point that, if the Division does not receive additional funding, it will have to change the way it serves clients. This interruption would undermine the efforts that have improved the program’s national ranking from 49th in 2006 to 28th in 2010. The Executive recommends $4.5 million to maintain the Division’s normal operations. General Fund Adoption Services 4,527.5 17,027.4 The Adoption Services program provides adoption subsidies to parents who adopt a child with physical, mental or developmental disabilities. The average subsidy is currently $689 per child per month. This is a substantially lower cost than the alternative congregate settings, which cost in excess of $3,000 per child per month. With the economic downturn and the availability of federal stimulus dollars, the State has been able to maintain the program without further State investment. The special needs adoptee population is estimated to exceed 16,000 clients in FY 2013. As federal stimulus dollars are no longer Department of Economic Security FY 2013 Executive Budget FY 2013 available, the program can no longer keep pace with caseload growth within its existing funding structure. The Executive recommends $17.0 million for 11% caseload growth in Adoption Services in FY 2013. General Fund Permanent Guardianship 17,027.4 2,400.0 When a child is removed from his or her home and cannot safely be returned, the Department makes an effort to place that child with other family members. In many cases, those family members may not want to sever the parental rights of their relatives but are willing to act as the permanent legal guardian for the child. When this occurs, the Department provides a small subsidy to the guardian to assist with the costs of caring for the child. Currently, the average subsidy is approximately $385 per child per month. Recent changes in the Cash Assistance program have impacted the eligibility of children in the Permanent Guardianship program. Previously, for children in the program who also qualified for TANF Cash Assistance, their TANF benefit would be used to offset the cost of the guardianship subsidy. With restricted eligibility levels, fewer children qualify for the funding offset, creating a ($2.4 million) shortfall in the Permanent Guardianship program. The population is estimated to exceed 2,600 clients in FY 2013. As the Department can no longer keep pace within its current funding, the Executive recommends $2.4 million in FY 2013. General Fund 2,400.0 Other Adjustments Child Protective Services Improvements 3,710.0 A thorough analysis of Child Protective Services (CPS), commissioned by the Governor’s Office and conducted by DES and the Arizona Child Safety Task Force, indicates that several key functions require improvement. The Executive Recommendation includes $3.7 million from the General Fund to support enhancement of CPS in certain critical areas. DES has made a concerted effort to improve Department-wide accountability, particularly within areas of concern such as CPS, including the creation of a separate Office of Accountability in 2011. To reinforce accountability within CPS, the Executive recommends funding in FY 2013 for four new management positions to oversee operations in critical areas that affect CPS. These positions will consist of (1) a Special Advisor for Investigations to oversee all investigations involving cases of criminal conduct; (2) a Manager of Intake and Hotline Operations to improve efficiency within the CPS hotline; (3) a Manager of Quality Case Management to work closely with DES executive leadership in ensuring alignment with Division-wide process improvements and policy initiatives and managing analysis of cross-regional data; and (4) a Manager for Community Partnerships to coordinate activities between CPS and partnering Agency Operating Detail FY 2013 organizations, such as the statewide child advocacy centers. Employee turnover among CPS investigators has historically been high, a situation generally attributed to low compensation and little opportunity for advancement in a demanding position. To help retain productive CPS investigators, the Executive also recommends funding for the promotion of approximately 175 CPS Specialist III positions – approximately 18% of the current investigations workforce – to a newly created CPS Specialist IV position. The promoted employees will have opportunities to perform supervisory duties while still working in the field as investigators. Each CPS Specialist IV employee will also receive a commensurate salary increase. One of the key findings of the Arizona Child Safety Task Force was the inadequacy of CPS investigative practices in cases involving child abuse, neglect and other criminal conduct. DES reported that, of the 2,233 cases of criminal conduct in FY 2011 (including 1,300 in Maricopa County), only about one-third received intervention from one of the 19 statewide child advocacy centers. To add a law enforcement presence to cases that exceed the advocacy centers’ resources, the Executive recommends funding for 28 new investigative specialist positions. The new positions will be filled by former law enforcement professionals who will be deployed either in the child advocacy centers or in CPS offices that demonstrate particular need for law enforcement acumen. The investigative specialists will conduct training for CPS staff related to interviewing, evidence collection, forensics and document preparation. Moreover, these new positions will (a) provide critical expertise in handling cases involving criminal conduct, (b) conduct training to other law enforcement personnel on CPS policies and procedures, and (c) travel with CPS investigators in the field when the situation may call for a law enforcement presence. General Fund 3,710.0 Align Revenues and Expenditures (2.6) Public Assistance Collections Fund (2.6) State Employee Pay Adjustment 8,022.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 7,206.2 Workforce Investment Grant Fund 45.9 Child Care and Development Fund 378.1 Child Support Enforcement Administration Fund 357.3 Children and Family Services Training Program Fund Public Assistance Collections Fund Department Long-Term Care System Fund Spinal and Head Injuries Trust Fund 7.0 14.0 2.8 11.3 FY 2012 Supplemental Recommendations Department of Economic Security 67 FY 2012 Supplemental Recommendations Reallocation to Department of Health Services FY 2012 (13,700.0) The enacted FY 2012 budget included several cost-saving measures that affected all Title XIX State agencies, including AHCCCS, DES and the Department of Health Services (DHS). It was later determined that an additional appropriation totaling $13.7 million was available in the DES Developmental Disabilities Program budget, while an equal amount was deficient in the DHS budget. Consequently, the Executive recommends decreasing the DES appropriated budget in FY 2012 by ($13.7 million) and increasing the FY 2012 DHS budget by the same amount. General Fund (13,700.0) Performance Measures FY 2010 Actual Child protective services response rate (percent) Average number of consumers with developmental disabilities served Total Office of Accounts Receivable and Collections cost per dollar to administer, bill, and collect debts Adult Protective Services investigation percentage rate Percent of total nutrition assistance payments issued accurately Percent of child protective service reports that are substantiated Ratio of current IV-D child support collected and distributed to current IV-D support due Number of Cash Assistance employment placements Average number of consumers with developmental disabilities served FY 2011 Actual FY 2012 Expected FY 2013 Expected 98.6 100.0 100.0 100.0 22,295 23,194 24,260 25,417 0.06 0.06 0.06 0.06 100 100 100 100 95.0 94.6 95.0 95.0 9.0 13.0 13.0 13.0 50.55 51.11 53.99 53.99 9,535 4,647 4,600 4,600 8,313 7,790 7,800 7,800 The Executive recommends a lump-sum appropriation by program with special line items. 68 Department of Economic Security FY 2013 Executive Budget EDA Department of Education Mission: To serve Arizona's education community, ensuring every student has access to an excellent education. Description: The Arizona Department of Education is administered by the Superintendent of Public Instruction, an elected position pursuant to the Arizona State Constitution. The Superintendent, in conjunction with the State Board of Education, leads the State in developing and implementing educational guidelines and standards. Through various programs within the Department, the Superintendent oversees direct services to 238 locally governed school districts, including 13 vocational districts and 9 accommodation districts. The Superintendent, in conjunction with the State Board for Charter Schools oversees 387 charters. The Department executes the educational guidelines through evaluation, training, school improvement assistance, dissemination of information, and administration and allocation of funds. The Department also serves as the primary source for information on the status and needs of the public school system. Total Average Daily Membership 1,200,000 1,000,000 800,000 600,000 School Accountability and Improvement Education Services Professional Development Administration 7,793.0 9,142.1 9,142.1 9,182.1 58,324.2 1,932.4 6,034.0 57,484.3 2,715.0 9,079.7 57,484.3 2,715.0 9,079.7 62,187.0 2,787.1 14,390.3 3,524,668.9 3,493,488.0 3,425,635.2 3,712,678.6 168.2 8,101.7 3,561.8 10,120.6 61.4 10.6 3,452,879.1 2,921.4 235.5 46,776.8 212.9 8,787.7 4,170.0 11,508.5 127.7 40.0 3,423,306.3 3,427.2 87.1 42,033.5 212.9 8,787.7 4,170.0 11,508.5 127.7 40.0 3,355,453.5 3,427.2 87.1 42,033.5 222.9 10,004.3 4,457.1 14,687.5 132.7 144.0 3,635,796.1 5,395.6 87.1 41,974.2 Agency - Approp. Funds 3,524,668.9 3,493,488.0 3,425,635.2 3,712,678.6 Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Appropriated Fund General Fund School Accountability Fund Prop 301 Teacher Certification Fund Arizona Structured English Immersion Fund Education Learning and Accountability Public Institutions Permanent School Earnings 3,488,598.3 4,132.2 3,436,528.7 7,000.0 3,368,675.9 7,000.0 3,650,480.0 7,062.7 2,300.6 (2,859.3) 2,283.8 0.0 2,283.8 0.0 2,348.2 0.0 0.0 1,200.0 1,200.0 6,312.3 32,497.1 46,475.5 46,475.5 46,475.5 Agency - Approp. Funds 3,524,668.9 3,493,488.0 3,425,635.2 3,712,678.6 400,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Basic State Aid 3,032,725.2 3,061,663.6 2,993,810.8 3,307,023.7 SLI Additional State Aid 414,716.4 351,525.0 351,525.0 314,525.0 SLI Other State Aid to 588.7 983.9 983.9 983.9 Districts SLI Special Education 35,242.1 33,242.1 33,242.1 33,242.1 Vouchers SLI Vocational Education 11,503.9 11,492.7 11,492.7 11,556.3 Block Grant SLI School Safety 1,291.5 0.0 0.0 0.0 SLI Teacher Certification 1,798.0 1,781.2 1,781.2 1,826.5 200,000 0 General Fund and Total Funds Expenditure $ 6,000,000 $ 5,000,000 $ 4,000,000 Non-Appropriated Funds $ 3,000,000 FY 2011 Actual $ 2,000,000 $ 1,000,000 $0 Agency Summary - Appropriated Funds FY 2011 Actual Program/Cost Center State Board of Education/Vocational and Technological Education School Finance - Payment and Financial Compliance FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 908.4 894.4 894.4 1,599.5 3,449,676.9 3,414,172.5 3,346,319.7 3,622,532.6 Agency Operating Detail Additional School Days Arizona Structured English Immersion Fund Arizona Youth Farm Loan Fund AZ Argicultural Youth Special Plate Fund Character Education Fund Character Education Special Plate Fund Classroom Site Fund DOE Internal Services Fund Education Commodity Department of Education FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 86,280.5 0.0 86,280.5 12,791.4 86,280.5 12,791.4 86,280.5 12,791.4 95.0 100.0 100.0 100.0 11.7 11.7 11.7 11.7 285.8 42.0 201.1 42.0 171.0 42.0 200.0 42.0 271,846.1 3,107.0 290,213.5 3,984.8 290,213.5 3,870.4 290,213.5 2,859.2 139.9 157.2 157.2 160.6 69 Non-Appropriated Funds FY 2011 Actual Education Printing English Learner Class Personnel Bonus Failing Schools Tutoring Fund Federal Economic Recovery Fund Federal Grant Golden Rule Special Plate Fund IGA and ISA Fund Indirect Cost Recovery Fund Instructional Improvement Fund School Safety Prop 301 Funds Special Education Fund Statewide Donations FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. Teacher Certification Fund (6.1) (13.6) 1,043.3 111.5 1,256.7 0.0 1,256.7 0.0 1,284.6 0.0 1,502.3 1,500.0 1,500.0 1,502.3 344,414.7 150,869.9 150,869.9 150,915.2 981,115.8 172.2 1,048,563.5 172.2 1,048,563.5 172.2 1,049,494.7 172.2 7,664.2 3,512.0 7,927.9 4,832.9 7,927.9 4,832.9 7,928.4 4,971.8 49,568.4 39,300.0 39,300.0 39,300.0 7,112.3 7,787.9 7,787.9 7,792.4 33,252.1 121.8 33,820.0 117.0 33,820.0 117.0 33,823.0 117.0 Agency - Nonapp. Funds 1,791,398.6 1,689,930.2 1,689,785.7 1,689,960.5 General Fund 35,000.0 5,183,418.2 5,115,420.9 5,402,639.1 Career Ladder Phase Down (9,062.1) Agency Total - All Funds 5,316,067.5 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 1,325,754.1 1,234,846.2 1,165,495.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Rent Standard Adjustment 37.0 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 28.1 School Accountability Fund Prop 301 Fund 2.2 Teacher Certification Fund 6.7 Retirement Standard Adjustment 18.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 9.3 School Accountability Fund Prop 301 Fund 4.4 Teacher Certification Fund 4.7 Health Insurance Rate Reduction (82.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund 70 School Accountability Fund Prop 301 Fund (62.4) Baseline Adjustments Basic State Aid FY 2013 (70,577.8) The Executive recommends a decrease of ($70.6 million) in Basic State Aid for changes in average daily membership (ADM) and net assessed valuations. This includes a (1.9%) decline in ADM and a (6.5%) decline in net assessed valuations from the FY 2012 appropriated amount. General Fund Edu Jobs Backfill (70,577.8) 35,000.0 The Executive recommends an increase to restore a one-time Capital Outlay Revenue Limit (CORL) reduction that was made in FY 2012 due to the availability of Federal Education Jobs Act funding. The Executive recommends a decrease to Basic State Aid for the phase-down of the Career Ladder program. The program provided increased expenditure capacity to participating districts to support performance pay. Originally proposed at 5.5%, the increase was limited to 4% for FY 2012. Pursuant to Laws 2011, Chapter 29, the Career Ladder program will continue to be phased down to 3%, 2% and 1% for, respectively, FY 2013, FY 2014 and FY 2015 before being completely eliminated in FY 2016. General Fund Homeowner's Rebate Reforms (9,062.1) (37,000.0) The Executive recommends a decrease of ($37.0 million) in Additional State Aid to adjust for reforms enacted in Laws 2011, 2nd Special Session, Chapter 1 that limit the homeowner's rebate to properties of residence. General Fund (37,000.0) Other Adjustments Soft Capital 200,000.0 The K-12 funding formula provides school districts with money for soft capital, which includes short-term capital items such as computers, software, library materials, etc. The soft capital allocation for districts is determined using the legislated per pupil amount and the district's ADM. After experiencing several cuts, soft capital is currently funded at approximately 10% of the formula amount. The Executive recommends a an increase of $200 million in the school district soft capital allocation, to include $100 million in the base and $100 million of onetime funding. The base increase will retire $100 million in deferred payments. Department of Education FY 2013 Executive Budget FY 2013 General Fund Move On When Reading 200,000.0 50,000.0 A.R.S. § 15-701 requires that “a pupil not be promoted from third grade if the pupil obtains a score on the reading portion of the Arizona instrument to measure standards test demonstrates that the pupil’s reading fall far below third grade level,” with the exception of good cause exemptions. Also referred to as "Move on When Reading," the initiative requires school districts and charter schools to offer at least one intervention and remedial strategy developed by the State Board of Education. The Executive recommendation provides reading specialists and development and implementation of comprehensive curriculum, intervention and remediation programs to begin in kindergarten. The funding will be generated by an increase in the K-8 Group A weight. The K-12 formula uses per-pupil weights to account for the different costs associated with educating different types of students. The elementary weight is currently lower than the high school weight, to reflect the presumed higher costs of educating high school students. The Executive recommends increasing the elementary weight from 1.158 to 1.179 to provide funding for Move on When Reading. The additional funding generated by the increase in the K-8 Group A weight can be used only on programs and services that align with A.R.S. § 15-701 in grades K-3. FY 2013 federal Workforce Investment Act dollars targeting adult education and will lose capacity to serve Arizona's undereducated adults and support economic recovery in the state. The Executive recommendation is the minimum required to draw down $11.8 million in federal Workforce Investment Act dollars and maintain adult education services statewide. General Fund 4,591.4 School Safety 686.6 The State Board of Education's Investigative Unit is responsible for investigating all allegations of immoral or unprofessional conduct against certified personnel. During the investigative period, certified individuals may continue to work in Arizona schools, provided their fingerprint clearance remains valid. The insufficient staffing level has resulted in inadequate and/or delayed investigations. The Executive recommends $186,600 and 2.0 FTE investigator positions to assist with increased case productivity. The proposed staffing levels will increase the number of cases closed each year and decrease the time to process cases. The Executive recommends an increase for Capital Outlay Revenue Limit and Charter School Additional Assistance for preventive maintenance. The Board will also take administrative action through rulemaking to restructure existing hearing processes to make them more efficient and better able to accommodate the increased number of adjudications. In addition, the Board will review potential statutory reforms that would require automatic suspension and/or revocation of licensure for specified acts of misconduct. In addition to the proposed changes to the Investigative Unit, the Executive recommends $500,000 to the Department of Education to fund coordination with the State Board of Education in finalizing the development of a database that would provide a mechanism to search educator information such as certification and disciplinary information. General Fund General Fund General Fund 50,000.0 Capital - Preventive Maintenance 40,000.0 Adult Education Services 40,000.0 4,591.4 According to the U.S. Department of Labor, the median annual income of a person with less than a high school diploma is $8,580 less per year than a high school graduate. Approximately 825,000, or 17%, of Arizonans age 16 or older do not have a high school diploma or GED and are not enrolled in school. The loss of individual income attributable to the lack of high school-level education represents a total yearly loss of nearly $7.1 billion in statewide taxable income. AELAS- AZ Education Learning & Accountability System Without additional funding, the State will lose eligibility for the Agency Operating Detail 5,112.3 Laws 2011, Chapter 29, Section 5 established the Education Learning and Accountability Fund as the funding source for the new statewide data system for public preschool, K-12 and postsecondary education. Fund revenues include a General Fund appropriation and revenue from a per-FTSE fee to community colleges and universities. The Executive recommends adjusting the appropriation to match available funds. Education Learning and Accountability The Arizona Department of Education's Adult Education Services program provides funding to 26 programs statewide through a rigorous and competitive grant program. Arizona's adult education system ranks fourth in the nation in educational gains, as reported by the U.S. Department of Education’s Office of Vocational and Adult Education. 686.6 AZ English Language Proficiency Assessment Revision 5,112.3 0.0 Federal law requires that Arizona develop English language proficiency standards and assessments for English Language Learners (ELL). In order to meet No Child Left Behind requirements and the needs of ELL students, the standards have been revised to include language skills that are linked to the Department of Education 71 Performance Measures FY 2013 FY 2010 Actual Common Core State Standards (CCSS), English Language Arts, Math, Science and Social Studies standards. The standards revision process is complete and in order to comply with federal law, the Arizona English Language Learner Assessment (AZELLA) needs to be modified to align with the new standards. The Executive Recommendation transfers $5.5 million from the Arizona Structured English Immersion Fund to the English Learner Administration SLI for development and administration of the AZELLA 3. AG Pro-Rata Appropriation (59.3) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (43.2) School Accountability Fund Prop 301 Fund (7.8) Teacher Certification Fund (8.4) State Employee Pay Adjustment 526.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Improvement Fund (IIP) payments made on a quarterly basis Percent of Classroom Site Fund 100 100 payments made on a monthly basis Percent of public education agencies 100 100 demonstrating compliance with monitoring deficiencies within two years Percent of students with disabilities 37 42 with proficient performance in reading in grade 3 Percent of students with disabilities 35 41 with proficient performance in reading in grade 5 Percent of students with disabilities 27 28 with proficient performance in reading in grade 8 Percent of students with disabilities 32 38 with proficient performance in reading in grade 10 Percent of local education agencies 50 48* (with ELL students receiving state/federal funding) in full compliance with federal, state and ADE policy issues *Numbers represent number of LEAs monitored, not percent  381.3 School Accountability Fund Prop 301 Fund 70.0 Teacher Certification Fund 74.9 FY 2011 Actual Percent of calls that are resolved by the Support Center Maximum number of days to process complete certification applications FY 2012 Expected FY 2013 Expected 100 100 100 100 44 46 43 45 29 30 40 42 50 40 60 85 85 85 30 28.52 25.67 23.10 The Executive recommends a lump-sum appropriation by fund with special line items. FY 2012 Supplemental Recommendations FY 2012 Baseline Adjustment (67,852.8) The Executive recommends a decrease of ($67.9 million) to adjust for variances between projected and actual amounts for student enrollment and assessed valuations. Districts are currently funded on prior year 100th day average daily membership (ADM) plus current year growth, while charter schools are funded on current year ADM. According to payment data from the Department, total ADM for districts and charters is (2.3%) lower than projected in FY 2012. General Fund (67,852.8) Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 FY 2013 Expected Expected Percent of Arizona high school *76 74 76 78 students who enter 9th grade and graduate within four years Fiscal Year data represents class cohort from 1 year previous (i.e. FY 2011 = Class of 2010).  Number of investigative cases closed 295 291 290 Number of days to process budget 103 103 90 analysis from July 18 related difficulties/legislature session has been closing later, causing September  *System revisions which pushes back distribution of Budg-25 letters. Percent of Instructional 100 100 100 72 290 85 100 Department of Education FY 2013 Executive Budget MAA Department of Emergency and Military Affairs Mission: To promote, protect, and defend the health, safety, peace, and quality of life of the citizens of our communities, state, and nation. Description: The Department of Emergency and Military Affairs is divided into three programs: Administration, Emergency Management, and Military Affairs. The Administration program provides overall financial, contracting, personnel, and property management actions. Emergency Management prepares and coordinates emergency response plans for the State. Military Affairs contains the Army National Guard and Air National Guard, each of which develop, train, and sustain a military force for the protection of life and property, preservation of peace, maintenance of order, and public safety. It also administers Project Challenge for training atrisk youth and the Joint Counter Narcotics Task Force. Number of Guard Members in State 8,000 Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Debt Service Transfers Out Agency - Approp. Funds 466.5 105.7 15.0 233.3 397.4 1,573.5 134.7 0.6 8.5 2,222.5 119.9 127.4 18.8 0.0 2,259.0 1,093.8 131.3 0.0 8.5 2,308.7 119.9 127.4 18.8 0.0 2,126.3 1,093.8 131.3 0.0 8.5 2,308.7 119.9 127.4 18.8 0.0 2,126.3 1,143.8 131.3 0.0 8.5 2,294.1 9,087.1 8,948.0 8,815.3 8,974.5 9,079.7 7.4 8,815.3 132.7 8,815.3 0.0 8,974.5 0.0 9,087.1 8,948.0 8,815.3 8,974.5 Appropriated Fund General Fund Emergency Response Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Military Airport 46.0 90.0 90.0 92.0 Planning SLI Governor's Emergency 1,532.2 2,900.0 2,900.0 2,921.1 Funds 7,800 Non-Appropriated Funds 7,600 FY 2011 Actual 7,400 7,200 7,000 6,800 6,600 6,400 6,200 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Federal Grant Indirect Cost Recovery Fund National Guard Fund National Guard Morale, Welfare and Recreation Navajo Camp Fund Nuclear Emergency Management Agency - Nonapp. Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 64,091.3 683.2 34,472.8 1,023.5 31,635.7 1,023.5 26,253.6 1,023.5 99.8 8.2 99.8 8.2 99.8 8.2 99.8 8.2 11,530.4 897.4 11,531.3 1,004.3 11,531.3 985.7 11,741.3 994.6 77,310.3 48,139.9 45,284.2 40,121.1 86,397.4 57,087.9 54,099.5 49,095.6 $ 120,000 Agency Total - All Funds $ 100,000 Federal Funds Expenditures - as reported by Agency $ 80,000 FY 2011 Actual $ 60,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 64,091.3 34,472.8 26,681.6 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 40,000 $ 20,000 $0 Executive Appropriation Recommendations FY 2013 Standard Adjustments Agency Summary - Appropriated Funds Program/Cost Center Administration Military Affairs Emergency Management Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,581.9 4,288.2 3,217.0 1,621.3 2,585.4 4,741.3 1,621.3 2,585.4 4,608.6 1,653.4 2,670.6 4,650.5 9,087.1 8,948.0 8,815.3 8,974.5 35.9 2,757.1 1,172.3 41.4 2,157.0 723.6 41.4 2,157.0 723.6 41.4 2,264.9 739.5 Category FTE Personal Services ERE Amount Agency Operating Detail Retirement Standard Adjustment 8.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Health Insurance Rate Reduction 8.2 (15.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning Department of Emergency and Military Affairs 73 FY 2013 January 1, 2013. General Fund The Executive recommends a lump-sum appropriation by program with special line items. (15.9) Baseline Adjustments Continue Emergency Response Fund FRAT (132.7) The Executive recommends continuing an ongoing Fund Reduction and Transfer (FRAT) enacted in FY 2012. Emergency Response Fund (132.7) State Land Lease Increase 50.0 The Department leases State Trust Land for training at the Florence Military Reservation. A condition of the lease increases the cost in FY 2013 from $392,000 to $442,000. The Executive recommends funding the increase. General Fund 50.0 Other Adjustments AG Pro-Rata Appropriation (14.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (14.6) State Employee Pay Adjustment 131.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 131.5 FY 2012 Supplemental Recommendations FY 2012 (132.7) Continue Emergency Response Fund FRAT The Executive recommends continuing an ongoing Fund Reduction and Transfer (FRAT) enacted in FY 2011. Emergency Response Fund (132.7) Performance Measures FY 2010 Actual Percent of Air National Guard soldiers re-enlisted Percent of Army National Guard soldiers re-enlisted Number of communities with sustained Disaster Resistant Community Programs Percent of requests for contingency exercise assistance supported Average number of months of community recovery time from declaration of emergency to termination of emergency Number of Project Challenge graduates annually 74 FY 2011 Actual FY 2012 Expected FY 2013 Expected 93 90 90 90 84 85 85 85 117 115 117 117 100 100 100 100 21.1 19.3 20 20 138 120 150 150 Department of Emergency and Military Affairs FY 2013 Executive Budget EVA Department of Environmental Quality Mission: To protect and enhance public health and the environment in Arizona. Description: The Arizona Department of Environmental Quality protects public health and the environment by establishing and ensuring compliance with standards of quality for Arizona's air, land, and water; advancing public policy; and encouraging participation through statewide outreach. Percecnt of permit timelines met through Licensing Time Frames rule 101 100 100 99 99 98 98 97 97 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Equipment Cost Allocation Transfers Out 474.8 5,712.3 7,489.5 327.9 7,612.0 7,096.9 327.9 7,612.0 7,096.9 327.9 7,612.0 6,991.8 61,097.4 71,926.7 71,926.7 72,769.8 General Fund DEQ Emissions Inspection Hazardous Waste Management Air Quality Fund Clean Water Revolving Fund Underground Storage Tank Revolving Recycling Fund Permit Administration Solid Waste Fee Fund Used Oil Fund Water Quality Fee Fund Indirect Cost Fund 7,000.0 24,039.7 942.6 7,000.0 25,518.3 1,706.9 7,000.0 25,518.3 1,706.9 7,000.0 25,560.9 986.2 2,735.4 4,162.5 5,366.0 0.0 5,366.0 0.0 5,429.8 0.0 0.0 22.0 22.0 22.0 0.0 4,962.8 1,147.0 13.1 4,388.9 11,705.5 0.0 6,989.2 1,907.4 138.9 10,316.7 12,961.3 0.0 6,989.2 1,907.4 138.9 10,316.7 12,961.3 1,527.2 7,101.8 1,175.8 138.9 10,546.7 13,280.4 Agency - Approp. Funds 61,097.4 71,926.7 71,926.7 72,769.8 Agency - Approp. Funds Appropriated Fund The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Emissions Control 20,832.8 20,119.5 20,119.5 20,119.5 Contractor Payments SLI WQARF Priority Site 7,000.0 7,000.0 7,000.0 7,000.0 Remediation Non-Appropriated Funds $ 500,000 FY 2011 Actual $ 450,000 $ 400,000 $ 350,000 $ 300,000 $ 250,000 $ 200,000 $ 150,000 $ 100,000 $ 50,000 $0 Agency Summary - Appropriated Funds Program/Cost Center Administration Air Quality Waste Program Water Quality Program Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 11,705.5 31,737.9 9,102.7 8,551.4 12,961.3 37,873.5 10,775.2 10,316.7 12,961.3 37,873.5 10,775.2 10,316.7 13,280.4 38,092.4 10,850.2 10,546.7 61,097.4 71,926.7 71,926.7 72,769.8 401.2 12,545.1 5,328.6 22,182.0 269.8 3.4 934.0 6,157.9 399.0 15,572.3 6,816.6 25,681.1 437.2 43.3 1,345.7 6,993.7 399.0 15,572.3 6,816.6 25,681.1 437.2 43.3 1,345.7 6,993.7 399.0 16,350.8 6,884.3 25,681.1 437.2 43.3 1,345.7 7,095.7 Centralized Monitoring Fund Clean Water Revolving Fund Drinking Water Revolving Fund Federal Economic Recovery Fund Federal Grant Greater AZ Development Authority Revolving Fund IGA and ISA Fund Institutional & Engineering Control Fund Specific Site Judgment Fund Statewide Employee Recognition Gifts/Donations Underground Storage Tank Revolving Voluntary Remediation Fund Water Quality Assurance Revolving Fund Department of Environmental Quality FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 658.1 779.0 779.0 783.0 182,139.3 149,101.1 149,101.1 149,126.4 69,312.4 66,596.2 66,596.2 66,619.2 18,554.8 1,365.5 1,365.5 1,365.5 17,047.1 211.5 19,206.1 46.0 19,206.1 46.0 19,192.3 46.0 3,530.0 8.7 6,573.6 0.0 6,573.6 0.0 6,685.5 0.0 12.5 7.7 450.0 12.3 450.0 12.3 450.0 12.3 21,831.3 22,524.3 22,524.3 22,608.9 164.2 177.2 177.2 180.1 8,986.5 12,852.3 12,852.3 12,929.5 75 Non-Appropriated Funds FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. Baseline Adjustments 322,464.2 279,683.6 279,683.6 279,998.7 Modify Fund Transfers 383,561.6 351,610.3 351,610.3 352,768.4 In FY 2012, the Department has been legislated $22.9 million in fund transfers. The projected revenue in several funds is not sufficient to support both the appropriated expenditure level and the transfer amount. Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 35,601.7 21,025.4 21,025.4 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 59.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 0.0 As displayed in the Fund Transfers section of the Executive Budget, the Executive recommends a transfer reduction from the following funds: Air Quality Fund ($619,500), Permit Administration Fund ($894,500), Hazardous Waste Management Fund ($62,300), Institutional & Engineering Control Fund ($300), Recycling Fund ($1,517,900), Solid Waste Fee Fund ($369,500), Specific Site Judgment Fund ($80,000), Voluntary Remediation Fund ($783,600) and Water Quality Fee Fund ($783,600). DEQ Emissions Inspection Fund 3.8 Hazardous Waste Management Fund 2.5 The Executive also recommends replacing the transfers from the Indirect Cost Recovery Fund ($2,589,900) and the IGA/ISA Fund ($28,600), with an additional transfer amount of $2,618,500 from the Emissions Inspection Fund to permit the Department maximum flexibility in managing fund balances. Air Quality Fund 5.1 Other Adjustments Permit Administration Fund 9.2 Solid Waste Fee Fund 3.0 Waste Program Appropriation 0.0 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. The Executive recommends the appropriation of Recycling Fund revenues for use in operating the Department's Waste Program. The Department is implementing new Waste Program fees permitted by Laws 2011, Chapter 220. The Department is allowed a rulemaking exemption to raise fees through September 30, 2013. The Recycling Fund revenue will assist in providing some stability to revenue estimates during this transition. Indirect Cost Fund Hazardous Waste Management Fund Water Quality Fee Fund 17.2 Indirect Cost Fund 18.2 Rent Standard Adjustment Health Insurance Rate Reduction 102.0 102.0 (153.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. DEQ Emissions Inspection Fund Hazardous Waste Management Fund (15.1) (5.1) Recycling Fund (754.2) 1,527.2 Solid Waste Fee Fund (773.0) AG Pro-Rata Appropriation (105.1) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Air Quality Fund (13.1) DEQ Emissions Inspection Fund (6.8) Permit Administration Fund (26.5) Hazardous Waste Management Fund (4.5) Solid Waste Fee Fund (4.4) Air Quality Fund Water Quality Fee Fund (30.6) Permit Administration Fund Indirect Cost Fund (58.7) Solid Waste Fee Fund (9.0) (16.3) (5.4) Water Quality Fee Fund (30.6) Indirect Cost Fund (32.4) State Employee Pay Adjustment 940.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. 76 Department of Environmental Quality FY 2013 Executive Budget FY 2013 DEQ Emissions Inspection Fund 60.7 Hazardous Waste Management Fund 40.6 Air Quality Fund 80.8 Permit Administration Fund 146.2 Solid Waste Fee Fund 48.2 Water Quality Fee Fund 274.0 Indirect Cost Fund 290.0 Performance Measures FY 2010 Actual Number of non-attainment areas exceeding national ambient air quality standards. Percentage of statutorily set permit timelines met through License Time Frame rule. Customer satisfaction rating for citizens (scale of 1-8) Number of days per year exceeding National Ambient Air Quality Standards (NAAQS) for Ozone (O3), Carbon Monoxide (CO), or Particulates (PM10). Percent of contaminated sites in Waste Programs Division closed requiring no further action (cumulative) versus known universe of contaminated sites in the Waste Programs Division (cumulative) FY 2011 Actual FY 2012 Expected FY 2013 Expected 2 0 5 5 99.8 99.0 100.0 100.0 7.8 7.6 N/A N/A 8.0 0.0 9.0 9.0 88.6 89.8 84.5 84.5 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Department of Environmental Quality 77 AFA Non-Appropriated Funds Governor's Office for Equal Opportunity FY 2011 Actual Mission: To administer and enforce state and federal laws prohibiting discrimination for several thousand state employees to ensure there are no discriminatory practices in State government. Agency - Nonapp. Funds Agency Total - All Funds Description: The Governor's Office of Equal Opportunity (GOEO) provides information and technical assistance to state agencies to ensure nondiscrimination and equal opportunity access to employment, state contracts, and appointments. The GOEO assists state agencies/divisions in promoting equal opportunity in employment, appointments, and procurement practices conducted on behalf of the State. FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 68.0 68.0 68.0 68.8 261.6 255.9 255.9 258.8 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 68.0 68.0 68.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments General Fund and Total Funds Expenditure Retirement Standard Adjustment $ 350 0.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 300 $ 250 $ 200 General Fund 0.4 $ 150 Rent Standard Adjustment $ 100 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Equal Opportunity Agency - Approp. Funds FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Agency - Approp. Funds (1.9) Health Insurance Rate Reduction (1.7) 193.6 187.9 187.9 190.0 193.6 187.9 187.9 190.0 General Fund 4.0 95.0 31.0 2.0 0.3 0.0 0.0 65.3 0.0 0.0 4.0 100.7 40.3 5.0 1.2 0.0 0.0 40.7 0.0 0.0 4.0 100.7 40.3 5.0 1.2 0.0 0.0 40.7 0.0 0.0 4.0 105.7 40.0 5.0 1.2 0.0 0.0 38.8 0.0 (0.7) 193.6 187.9 187.9 190.0 193.6 187.9 187.9 190.0 193.6 187.9 187.9 190.0 FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Appropriated Fund General Fund General Fund The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. FY 2011 Actual Category AG Pro-Rata Appropriation (0.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (0.7) State Employee Pay Adjustment 6.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund FY 2011 Actual Federal Grant (1.7) Other Adjustments 68.0 FY 2012 Expend. Plan 68.0 FY 2012 Exec. Rec. 68.0 FY 2013 Exec. Rec. 68.8 6.0 Performance Measures Non-Appropriated Funds 78 (1.9) FY 2010 Actual Number of calls answered providing information and assistance regarding Equal Opportunity rules and regulations Total training hours provided to state Governor's Office for Equal Opportunity FY 2011 Actual FY 2012 Expected FY 2013 Expected 600 180 200 200 340 337 350 350 FY 2013 Executive Budget Performance Measures FY 2010 Actual employees Number of community organizations contacted by the Governor's Office for Equal Opportunity to help facilitate the dissemination of information regarding employment opportunities Number of minority/women-owned businesses contacted and provided with information regarding state contracting opportunities Number of persons trained in mediation FY 2011 Actual FY 2012 FY 2013 Expected Expected 200 183 200 200 40 92 40 60 1 1 1 2 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Governor's Office for Equal Opportunity 79 EQA State Board of Equalization Mission: To provide an independent appeal process for taxpayers, the county assessors, and the Department of Revenue in disputes relating to the valuation and classification of property for ad valorem tax purposes. Description: The State Board of Equalization (SBOE) is comprised of thirtythree members, thirteen appointed by the Governor, including the Chairman, and ten members from both Maricopa and Pima counties. The Board's jurisdiction is primarily over locally assessed real and personal property in Maricopa and Pima counties. Under A.R.S. §§ 42-14001 et al, the Board’s authority extends to centrally assessed property statewide. The State Board of Equalization also can provide hearing officer services for outlying counties. Currently, the SBOE provides services to La Paz, Mohave, Navajo, Pinal and Yavapai counties. The Board, formerly Division I of the State Board of Tax Appeals, was created on August 1, 1995 through a consolidation of the appeals process. Total Appeals 18,000 16,000 14,000 ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 109.2 14.3 12.8 0.0 0.0 132.5 0.0 0.0 113.5 29.5 15.0 0.0 0.0 142.0 0.0 0.0 113.5 29.5 15.0 0.0 0.0 142.0 0.0 0.0 116.6 29.5 15.0 0.0 0.0 144.4 0.0 (2.2) 565.3 625.8 625.8 645.4 565.3 625.8 625.8 645.4 565.3 625.8 625.8 645.4 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 1.2 Rent Standard Adjustment 2.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 12,000 10,000 8,000 General Fund 6,000 4,000 2.4 Health Insurance Rate Reduction (1.5) 2,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund General Fund and Total Funds Expenditure $ 660 Other Adjustments $ 640 AG Pro-Rata Appropriation $ 620 (1.5) (2.2) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 600 $ 580 $ 560 $ 540 $ 520 $ 500 $ 480 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2011 Actual FY 2012 Approp. (2.2) State Employee Pay Adjustment 19.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Agency Summary - Appropriated Funds Program/Cost Center General Fund FY 2012 Exec. Rec. FY 2013 Exec. Rec. State Board of Equalization 565.3 625.8 625.8 645.4 Agency - Approp. Funds 565.3 625.8 625.8 645.4 7.0 296.4 7.0 325.8 7.0 325.8 7.0 342.1 19.7 Agency did not provide performance measure information The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services 80 State Board of Equalization FY 2013 Executive Budget PPA Board of Executive Clemency Mission: To ensure public safety by considering and granting parole, work furlough, home arrest, and absolute discharge to inmates certified eligible by the Department of Corrections and who appear not to pose a threat to society, and by recommending to the Governor only those executive clemency actions which are in the best interest and safety of the citizens of Arizona. Description: Each month the Board conducts parole hearings for inmates who have committed offenses prior to January 1994. Hearings include consideration for home arrest, work furlough, parole release, absolute discharge, rescission, modification, revocation (of both parole and community supervision), and absolute discharge from parole supervision. The Board also conducts clemency hearings which include commutation, pardon, and reprieve. Total Board Hearings Held Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 0.9 0.0 0.0 168.8 43.0 0.0 1.5 0.0 0.0 122.0 2.8 0.0 1.5 0.0 0.0 122.0 2.8 0.0 1.5 0.0 0.0 141.1 2.8 (3.3) 854.1 790.5 790.5 868.2 854.1 790.5 790.5 868.2 854.1 790.5 790.5 868.2 Appropriated Fund General Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Annual Leave Payout 0.0 13.2 13.2 0.4 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.8 6,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 5,000 4,000 General Fund 3,000 1.8 2,000 Rent Standard Adjustment 1,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 19.1 General Fund 19.1 Health Insurance Rate Reduction (5.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 1,400 $ 1,200 $ 1,000 General Fund $ 800 (5.1) Baseline Adjustments $ 600 Shift Board to Hourly Pay Rate 48.9 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Board of Executive Clemency Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 854.1 790.5 790.5 868.2 854.1 790.5 790.5 868.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Agency Operating Detail 11.0 422.5 214.1 4.8 14.0 486.8 172.3 5.1 14.0 486.8 172.3 5.1 15.0 549.1 171.8 5.1 The Executive recommends shifting the Board to an hourly pay rate. This change will allow the Board to work full-time, up to 40 hours, and will help to alleviate the case hearing backlog by having more available work hours. The Board will strictly be viewed as hourly employees, and will not receive benefits of any kind. General Fund 48.9 Other Adjustments SLI Annual Leave Payout (13.3) The Executive reccomends backing out one-time funding for the annual leave payout of an employee who is eligible to retire in FY 2012. General Fund Board of Executive Clemency (13.3) (3.3) 81 FY 2013 AG Pro-Rata Appropriation (3.3) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.3) State Employee Pay Adjustment 29.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 29.5 Performance Measures FY 2010 Actual Number of parole hearings scheduled FY 2011 Actual FY 2012 Expected FY 2013 Expected 539 442 800 Percent of parole grants 13 26 37 800 37 Number of revocations 2,463 2,570 2,600 2,600 Number of victims notified 1,410 1,327 2,500 2,500 The Executive recommends a lump-sum appropriation to the agency. 82 Board of Executive Clemency FY 2013 Executive Budget CLA Arizona Exposition & State Fair Mission: To provide unlimited opportunity to celebrate Arizona's heritage, youth, industry, traditions, and future by bringing the entire community together. Description: The Arizona Exposition and State Fair (AESF) is a 96-acre entertainment facility that showcases a variety of events, including one of the preeminent state fairs in the country. The AESF, which owns the property and buildings it occupies, rents its facilities to a variety of tenants and promoters, such as the Arizona National Livestock Show and the Maricopa County Fair. The AESF provides a location to showcase industry, agriculture, education, and entertainment for the enjoyment of Arizona citizens. State Fair Attendance by Year Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 3.5 0.0 2,851.4 4.7 0.0 4.0 0.0 3,701.3 0.0 0.0 4.0 0.0 3,701.3 0.0 0.0 4.0 0.0 3,701.3 0.0 (23.4) 9,445.5 11,096.2 11,096.2 11,281.8 9,445.5 11,096.2 11,096.2 11,281.8 9,445.5 11,096.2 11,096.2 11,281.8 Appropriated Fund Coliseum & Exposition Center Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 13.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 1,400,000 1,200,000 Coliseum and Expo Center Fund 13.2 800,000 Health Insurance Rate Reduction (17.2) 600,000 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 1,000,000 400,000 200,000 0 Coliseum and Expo Center Fund (17.2) Other Adjustments AG Pro-Rata Appropriation General Fund and Total Funds Expenditure (23.4) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 16,000 $ 14,000 $ 12,000 Coliseum and Expo Center Fund (23.4) State Employee Pay Adjustment 213.0 $ 10,000 $ 8,000 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 6,000 $ 4,000 Coliseum and Expo Center Fund $ 2,000 213.0 $0 Performance Measures FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Interim Events State Fair Operations Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,311.5 6,134.0 3,781.7 7,314.5 3,781.7 7,314.5 3,866.0 7,415.7 9,445.5 11,096.2 11,096.2 11,281.8 184.0 2,876.0 766.5 2,941.5 1.9 184.0 3,466.1 850.0 3,073.8 1.0 184.0 3,466.1 850.0 3,073.8 1.0 184.0 3,639.5 885.6 3,073.8 1.0 Fair attendance (in thousands) New revenue received from alternative sources (in dollars) Number of guest service contacts FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 961.44 1,041.0 1,000.0 1,000.0 142,000 465,352 15,000 15,000 358 337 354 372 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Agency Operating Detail Arizona Exposition & State Fair 83 BDA State Department of Financial Institutions Mission: To license, examine, and supervise Financial Institutions, in compliance with State law, to ensure safety for the Arizona consumer and soundness for the Arizona business. Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out Agency - Approp. Funds Description: The Department of Financial Institutions licenses, supervises, and regulates state chartered financial institutions and enterprises to ensure the safety and soundness of state chartered financial entities, and verify compliance with state and federal laws. The Department also investigates complaints that are filed by consumers against licensed entities and directs appropriate remedial action if the violations are substantiated. Number of Licenses Issued 12,000 General Fund Financial Services Fund Agency - Approp. Funds 0.0 379.0 6.5 0.0 0.0 0.0 408.0 22.5 65.0 (13.1) 3,207.1 3,459.9 3,459.9 4,074.7 2,794.9 412.2 2,726.6 733.3 2,726.6 733.3 3,025.9 1,048.8 3,207.1 3,459.9 3,459.9 4,074.7 Non-Appropriated Funds FY 2011 Actual Banking Department Revolving IGA and ISA Fund Receivership Revolving Fund Agency Total - All Funds 8,000 0.0 379.0 6.5 0.0 0.0 Appropriated Fund Agency - Nonapp. Funds 10,000 0.0 470.1 128.0 0.0 0.0 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 398.3 495.4 495.4 495.4 68.4 1,285.5 78.4 921.2 78.4 921.2 80.6 2.2 1,752.2 1,495.0 1,495.0 578.2 4,959.3 4,954.9 4,954.9 4,652.9 6,000 Executive Appropriation Recommendations 4,000 FY 2013 2,000 Standard Adjustments 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Retirement Standard Adjustment 7.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund and Total Funds Expenditure $ 6,000 $ 5,000 General Fund 6.3 Financial Services Fund 1.1 $ 4,000 Rent Standard Adjustment $ 3,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 2,000 General Fund $ 1,000 Financial Services Fund 29.0 24.3 4.7 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Office of Supervision Office of Regulatory Affairs Receiverships 1,756.6 1,435.6 14.9 1,793.7 1,639.9 26.3 1,793.7 1,639.9 26.3 2,243.4 1,804.2 27.1 Agency - Approp. Funds 3,207.1 3,459.9 3,459.9 4,074.7 55.1 1,657.6 773.8 173.3 0.5 3.8 55.1 1,941.4 836.6 294.9 0.5 1.0 55.1 1,941.4 836.6 294.9 0.5 1.0 58.1 2,290.4 951.5 339.9 9.5 1.0 Health Insurance Rate Reduction (24.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Financial Services Fund (20.3) (4.6) Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State 84 State Department of Financial Institutions FY 2013 Executive Budget FY 2013 Financial Services Fund Other Adjustments New Examiners for Loan Originators and Mortgage Licensees 189.1 In 2010, the New Loan Originator Law went into effect, increasing the amount of total mortgage licensees from approximately 1,000 to 7,000. The examination requirement for loan originators is critical to protecting Arizona citizens from mortgage fraud and restoring confidence in the mortgage industry. To handle the expanded case load, the Executive recommends funding 3.0 FTE examiner positions specializing in the mortgage industry. Of the recommended amount, $8,000 represents one-time equipment costs for the new examiners. Financial Services Fund 189.1 Bank, Credit Union and Trust Company Examiners 200.4 The Department of Financial Institutions has been placed on accreditation suspension by the Conference of State Bank Supervisors (CSBS) and the National Association of State Credit Union Supervisors (NASCUS). The suspension is the result of the Department's inability to conduct examinations due to inadequate staffing of examiners. Without accreditation, the Department will not be able to carry out its statutory mandate to regulate Statechartered financial institutions. The Executive recommends funding 3.0 vacant unfunded Bank, Credit Union and Trust Examiner positions. By adding the new examiners, the Department will be able to conduct timely examinations and regain its accreditation. Of the recommended amount, $8,000 represents one-time equipment costs for the new examiners. General Fund New Licensing System FY 2013 80.0 AG Pro-Rata Appropriation (13.1) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (11.2) Financial Services Fund (1.9) State Employee Pay Adjustment 116.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 99.8 Financial Services Fund 17.1 Performance Measures FY 2010 Actual Average number of calendar days from receipt to resolution of regular complaint Open receiverships (at any point in fiscal year) Percent of examinations receiving a satisfactory composite rating Percent of examination reports mailed within 25 days of completion of all examination procedures Percent of license applications approved within 45 days of receipt (excluding Banks and Credit Unions) FY 2011 Actual FY 2012 Expected FY 2013 Expected 148 318 45 45 1 1 1 0 72 88 80 80 48 85 85 85 55 61 60 60 The Executive recommends a lump-sum appropriation to the agency. 200.4 30.0 In FY 2013, the Executive recommends reimbursing the agency for ongoing maintenance costs of its database management system. The Department made the initial investment in 2009 to replace its homegrown system that has reached end-of-life. The new system will address the inadequacies of the antiquated system by allowing online license renewal, payment processing, and reporting. The implementation of this system is well-timed since the licensee population has nearly tripled since last year. Financial Services Fund 30.0 Document Management System 80.0 The Executive recommendation provides for computer software and equipment. This expenditure is intended to help the Department automate and streamline its licensing process. The current primarily manual, paper-based license processing operation its labor intensive, redundant, restrictive, and inefficient. Of the amount recommended, $65,000 is for one-time hardware and equipment. Agency Operating Detail State Department of Financial Institutions 85 BFA Board of Fingerprinting Mission: To fairly, expeditiously, and responsibly determine good cause exceptions for applicants who have been denied a fingerprint clearance card. Description: The Arizona Board of Fingerprinting determines good cause exceptions from eligible people who require a fingerprint clearance card and whose fingerprint clearance card has been denied or suspended by the Department of Public Safety. Number of Good-Cause-Exception Requests Received 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual Board of Fingerprinting Fund Agency - Nonapp. Funds Agency Total - All Funds 86 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 439.3 483.0 483.0 491.3 439.3 483.0 483.0 491.3 439.3 483.0 483.0 491.3 Board of Fingerprinting FY 2013 Executive Budget MMA Department of Fire, Building and Life Safety Mission: To provide consumer protection and public safety by maintaining and enforcing standards of quality and safety for manufactured/mobile homes, factory-built buildings, and by reducing hazards to life and property through enforcement of the State Fire Code. Description: The Department of Fire, Building and Life Safety enforces safety standards for public buildings, manufactured homes, mobile homes, and factory-built buildings. The Department is comprised of the Office of Manufactured Housing and the State Fire Marshal. The Office of Manufactured Housing licenses and regulates the production and ownership of manufactured housing; administers funds paid by manufacturers, mobile home park owners and residents; and administers funds reserved for claims filed against the payers or for involuntary relocation. Additionally, it acts on behalf of the Federal Department of Housing and Urban Development in the implementation and enforcement of regulations regarding manufactured and mobile homes in Arizona. The State Fire Marshal enforces the State Fire Code through the inspections of schools and public buildings and enforces the Fire Safety Complaint Cigarettes and Fireworks Sales laws. Number of Licensees 4,500 4,000 3,500 3,000 Program/Cost Center FY 2011 Actual Administration Manufactured Housing State Fire Marshal Agency - Approp. Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 747.6 698.4 543.5 482.1 632.1 579.1 623.0 632.1 579.1 495.5 646.8 595.8 1,989.5 1,693.3 1,834.2 1,738.1 20.8 944.4 469.4 23.2 164.8 0.1 0.0 367.2 20.4 0.0 22.2 959.2 426.3 12.9 143.0 0.0 0.0 149.9 2.0 0.0 22.2 959.2 567.2 12.9 143.0 0.0 0.0 149.9 2.0 0.0 22.2 1,007.2 427.5 12.9 143.0 0.0 0.0 151.9 2.0 (6.5) 1,989.5 1,693.3 1,834.2 1,738.1 1,989.5 1,693.3 1,834.2 1,738.1 1,989.5 1,693.3 1,834.2 1,738.1 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Arson Detection Reward Building & Fire Safety Fund Federal Grant IGA and ISA Between State Agencies Manufactured Housing Consumer Recovery Mobile Home Relocation 1.9 (1.3) 206.2 27.9 0.0 6.1 232.4 23.7 0.0 0.0 232.4 23.7 0.0 0.0 216.0 23.7 129.6 0.0 0.0 0.0 857.8 493.7 493.7 504.5 Agency - Nonapp. Funds 1,222.2 755.9 749.8 744.2 3,211.7 2,449.2 2,584.0 2,482.2 Agency Total - All Funds 2,500 FY 2012 Approp. 2,000 1,500 Executive Appropriation Recommendations 1,000 FY 2013 500 0 Standard Adjustments FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 6,000 Retirement Standard Adjustment 3.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 3.6 $ 4,000 Rent Standard Adjustment 2.0 $ 3,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 5,000 $ 2,000 General Fund 2.0 $ 1,000 Health Insurance Rate Reduction (12.8) $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Agency Operating Detail The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Department of Fire, Building and Life Safety 87 FY 2013 General Fund (12.8) Other Adjustments AG Pro-Rata Appropriation (6.5) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (6.5) State Employee Pay Adjustment 58.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 58.4 FY 2012 Supplemental Recommendations FY 2012 140.9 Health Insurance Adjustment The FY 2012 Budget includes a $140,900 health insurance appropriation adjustment due to a statewide change to the employee health insurance contribution process. The Department's actual expenditures for employee health insurance contributions have not adjusted as predicted. The Executive recommends an FY 2012 supplemental appropriation to align with actual expenses. General Fund 140.9 Performance Measures FY 2010 Actual Average days from receipt of complete application to granting of license Number of enforcement inspections for new construction Total individuals or facilities licensed Number of persons trained in fire and life safety issues FY 2011 Actual FY 2012 Expected FY 2013 Expected 2 2 2 2 827 1174 1200 1200 1,630 1,328 1,050 1,050 9 0 0 0 The Executive recommends no appropriation for this agency. 88 Department of Fire, Building and Life Safety FY 2013 Executive Budget FOA SLI Inmate Fire Crews SLI Fire Suppression Arizona State Forester Mission: To manage and reduce wildfire risk to Arizona’s people, communities, and wildland areas and provide forest resource stewardship through strategic implementation of forest health policies and cooperative forestry assistance programs. Description: The Forestry Division provides for the prevention and suppression of wildfires on state and private lands, located outside incorporated municipalities, through the use of cooperative agreements with local fire departments, other state and federal agencies and persons organized to prevent and suppress wildfires. The division also maintains in-house overhead and firefighting capabilities through the qualifications of its own employees. Through the division's programs, 22,400,000 acres of state and private land are protected. 558.5 3,000.0 695.7 3,000.0 695.7 3,000.0 718.4 4,003.6 Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Cooperative Forestry Fund Federal Economic Recovery Fund Fire Suppression Fund 6,821.6 98.8 6,443.6 1,216.0 6,443.6 1,216.0 6,476.5 1,216.0 8,203.0 16,303.0 16,303.0 15,779.8 Agency - Nonapp. Funds 15,123.4 23,962.6 23,962.6 23,472.2 20,945.4 30,014.6 30,014.6 30,620.8 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 6,580.3 9,141.9 5,128.8 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Number of Fires on State and Private Lands Executive Appropriation Recommendations 900 FY 2013 800 Standard Adjustments 700 600 Retirement Standard Adjustment 500 400 7.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 300 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 State Forester Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Agency - Approp. Funds Agency - Approp. Funds General Fund 2.6 6,052.0 7,148.6 Health Insurance Rate Reduction 5,822.0 6,052.0 6,052.0 7,148.6 38.0 1,848.2 825.1 1,916.7 120.5 0.0 20.3 75.0 1,016.2 0.0 0.0 52.0 2,034.6 835.2 1,916.7 120.5 0.0 20.3 75.0 1,049.7 0.0 0.0 52.0 2,034.6 835.2 1,916.7 120.5 0.0 20.3 75.0 1,049.7 0.0 0.0 52.0 2,136.3 841.2 2,916.7 120.5 0.0 20.3 75.0 1,052.3 0.0 (13.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 5,822.0 6,052.0 6,052.0 7,148.6 5,822.0 6,052.0 6,052.0 7,148.6 5,822.0 6,052.0 6,052.0 7,148.6 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. Agency Operating Detail 2.6 6,052.0 Appropriated Fund General Fund Rent Standard Adjustment 5,822.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Transfers Out 7.7 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Agency Summary - Appropriated Funds Program/Cost Center General Fund General Fund (23.6) (23.6) Other Adjustments Increase in Statutory Appropriation 1,000.0 The Executive recommends an increase in the statutorily permitted appropriation for fire pre-positioning and suppression of $1.0 million beginning in FY 2013. This is due to the increasing role and responsibility of the State in protecting private landowners from the threat of wildfires and the greater interaction between large fires and growing housing areas. General Fund Exemption from Continued FRAT 1,000.0 0.0 The Executive recommends that the FRAT for the Fire Suppression Fund of $296,500 be discontinued. The Forester needs Arizona State Forester 89 FY 2013 every dollar for reimbursements related to the Horseshoe, Monument, and Wallow fires. The total State share of expenses associated with the Horseshoe, Monument, and Wallow fires is estimated at $3.2 million. AG Pro-Rata Appropriation (13.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (13.7) State Employee Pay Adjustment 123.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 123.6 The Executive recommends a lump-sum appropriation by program with special line items. 90 Arizona State Forester FY 2013 Executive Budget FDA State Board of Funeral Directors & Embalmers Mission: To maintain and enforce a set of standards that provides protection for the health, safety, and welfare of Arizona citizens by educating the consumer and by actively and impartially regulating those licensed to provide funeral goods and services. Description: The Board of Funeral Directors and Embalmers examines and licenses individuals that provide funeral goods and services. The Board also receives complaints against licensees, investigates allegations, and administratively adjudicates complaints. The Board oversees approximately 1,700 licensees practicing in the state and serves all Arizona citizens who receive funeral goods and services. Number of Licensees 1,800 1,600 1,400 1,200 Other Operating Expenses Equipment Agency - Approp. Funds 41.7 3.5 57.8 3.5 57.8 3.5 61.2 3.5 284.7 339.6 339.6 354.3 284.7 339.6 339.6 354.3 284.7 339.6 339.6 354.3 Appropriated Fund Funeral Directors & Embalmers Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Funeral Directors and Embalmers Fund 0.7 Rent Standard Adjustment 3.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 1,000 800 Funeral Directors and Embalmers Fund 600 400 3.4 Health Insurance Rate Reduction 200 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (0.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Funeral Directors and Embalmers Fund $ 400 (0.4) Other Adjustments $ 350 State Employee Pay Adjustment 11.0 $ 300 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 250 $ 200 Funeral Directors and Embalmers Fund $ 150 $ 100 11.0 Performance Measures $ 50 FY 2010 Actual $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Number of inspections Number of complaints received Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 284.7 339.6 339.6 354.3 284.7 339.6 339.6 354.3 4.0 159.9 35.0 43.0 1.6 0.0 0.0 4.0 180.0 38.0 55.3 5.0 0.0 0.0 4.0 180.0 38.0 55.3 5.0 0.0 0.0 4.0 189.0 40.3 55.3 5.0 0.0 0.0 Number of licenses FY 2011 Actual FY 2012 Expected FY 2013 Expected 0 70 150 20 35 25 170 25 1,600 1669 1,670 1,700 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail State Board of Funeral Directors & Embalmers 91 GFA Arizona Game & Fish Department Mission: To conserve, enhance, and restore Arizona's diverse wildlife resources and habitats through aggressive protection and management programs; and to provide wildlife resources and safe watercraft and off-highway vehicle recreation for the enjoyment, appreciation, and use by present and future generations. Description: The Arizona Game and Fish Department is the state agency charged with the conservation, enhancement and restoration of Arizona’s wildlife resources and habitats, and with the regulation and enforcement of watercraft and off-highway vehicles. The Department manages Arizona wildlife populations through the operation of hunting and fishing license programs, enforcement actions for the unlawful taking of game, and wildlife habitat protection and development. Number of Licenses Sold 500,000 480,000 Agency - Approp. Funds 34,985.5 39,020.9 39,020.9 39,720.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out 273.5 14,064.7 7,249.7 601.7 209.6 96.1 688.6 4,986.2 1,270.2 2,010.8 3,808.0 273.5 14,815.9 7,597.3 543.3 279.9 4.5 900.0 9,804.2 184.0 1,053.6 3,838.2 273.5 14,815.9 7,597.3 543.3 279.9 4.5 900.0 9,804.2 184.0 1,053.6 3,838.2 273.5 15,556.6 7,981.2 543.3 279.9 4.5 900.0 9,379.2 184.0 1,053.6 3,838.2 34,985.5 39,020.9 39,020.9 39,720.5 29,700.7 3,152.4 32,980.4 4,646.4 32,980.4 4,646.4 33,997.3 4,314.9 227.6 1,885.6 19.1 0.0 334.7 1,000.0 43.4 16.0 334.7 1,000.0 43.4 16.0 348.9 1,000.0 43.4 16.0 34,985.5 39,020.9 39,020.9 39,720.5 Agency - Approp. Funds Appropriated Fund Game & Fish Fund Game & Fish Watercraft License Game/Non-Game Fund Capital Improvement Fund Waterfowl Conservation Wildlife Endowment Fund Agency - Approp. Funds 460,000 440,000 420,000 400,000 380,000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Dingell1,904.0 1,904.0 1,904.0 1,904.0 Johnson/PittmanRobertson Federal Matching SLI Dingell1,904.0 1,904.0 1,904.0 1,904.0 Johnson/PittmanRobertson Federal Matching Non-Appropriated Funds General Fund and Total Funds Expenditure FY 2011 Actual $ 100,000 $ 90,000 $ 80,000 $ 70,000 $ 60,000 $ 50,000 $ 40,000 $ 30,000 $ 20,000 $ 10,000 $0 Agency Summary - Appropriated Funds Program/Cost Center Central Administrative Services Off-Highway Vehicle/Watercraft Nongame and Endangered Wildlife Game Management Sportfish Management 92 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 5,020.7 4,196.6 4,196.6 4,360.8 3,105.6 4,776.7 4,776.7 4,438.7 6,158.4 8,120.8 8,120.8 8,396.3 12,503.0 8,197.7 11,889.1 10,037.7 11,889.1 10,037.7 12,215.8 10,309.0 Arizona Game & Fish Commission Heritage Arizona Wildlife Conservation Fund Federal Economic Recovery Fund Federal Grant Game & Fish Conservation Development Fund Game & Fish Federal Revolving Game & Fish Publications Revolving Game & Fish Trust Game & Fish Wildlife Theft Prevention Game and Fish Kaibab Coop IGA and ISA Fund Indirect Cost Recovery Fund Off-Highway Vehicle Recreation Arizona Game & Fish Department FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 10,792.5 10,075.2 10,075.2 10,327.8 5,112.3 6,049.1 6,049.1 6,139.5 169.3 447.9 447.9 450.7 89.4 1,505.0 0.0 1,505.1 0.0 1,505.1 0.0 1,505.1 35,141.5 34,448.0 34,448.0 33,840.8 152.9 150.0 150.0 150.0 2,323.9 182.3 2,969.1 64.0 2,969.1 64.0 2,969.1 64.0 7.8 76.5 76.5 76.5 10.2 2,480.3 0.0 3,829.6 0.0 3,829.6 0.0 3,915.0 1,463.3 1,636.0 1,636.0 1,687.4 FY 2013 Executive Budget Non-Appropriated Funds FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. Performance Measures FY 2013 Exec. Rec. FY 2010 Actual 59,430.6 61,250.5 61,250.5 61,125.9 94,416.1 100,271.4 100,271.4 100,846.4 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan FY 2012 Expected FY 2013 Expected Department watercraft enforcement hours Decrease may be due to vacant positions and fewer recreation days (economy).  Number of observed watercraft 364 2,461 violations Decrease may be due to vacant positions and fewer recreation days (economy). 0 0 Number of watercraft registered in 140,745 Arizona Number of watercraft registered in Arizona 0 0 0 0  Agency Total 32,014.8 25,723.9 22,214.8 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. FY 2011 Actual  136,925 Watercraft registration renewal 4 processing time by mail (in days) Watercraft registration renewal processing time by mail (in days) 5  Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 329.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Game and Fish Fund 296.7 Watercraft Licensing Fund 29.1 Game/Non-game Fund 3.9 Health Insurance Rate Reduction (174.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Game and Fish Fund Number of watercraft user contacts NA 7,291 0 made by field officers Number of students completing 1,083 1,166 0 Arizona Game and Fish Department sponsored watercraft safety classes of students completing Arizona Game and Fish Department sponsored watercraft  Number safety classes Number of off-highway user contacts NA NA 0 by Arizona Game and Fish Department field officers Arizona Game and Fish Department does not currently record contacts in its Spillman©  The database system. However, we are currently building a database that will capture contacts and anticipate reporting this data for State FY12. Ratio of number of big game permit .548 .56 0 tags to the number of people applying Number of off-highway vehicle 100 638 0 violations observed Number of urban fishing licenses sold 32,160 30,998 0  0 0 0 0 0 0 Reports prior to FY2009 included all urban fishing related licenses sold. This number includes only Class U licenses. (153.9) Watercraft Licensing Fund (19.6) Game/Non-game Fund (1.4) The Executive recommends a lump-sum appropriation to the agency with special line items. Baseline Adjustments Eliminating One-Time Grant and Education Money (425.0) The Executive recommends a one-time decrease of grant and education monies totaling $425,000 as requested by the Department. Watercraft Licensing Fund (425.0) Other Adjustments State Employee Pay Adjustment 969.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Game and Fish Fund 874.1 Watercraft Licensing Fund 84.0 Game/Non-game Fund 11.7 Performance Measures FY 2010 Actual Number of Arizona Game and Fish Agency Operating Detail 13,000 FY 2011 Actual 12,554 FY 2012 Expected 0 FY 2013 Expected 0 Arizona Game & Fish Department 93 GMA Department of Gaming Mission: To protect the public, enforce Arizona's gambling laws, ensure compliance with the gaming compacts, and regulate the gaming industry. Description: The Department of Gaming is responsible for enforcing Arizona's gambling laws. This includes enforcement of Arizona's laws prohibiting illegal gambling (A.R.S. Section 5-602.J) and regulating and monitoring tribal compliance with the Tribal-State gaming compacts including their responsibilities concerning the nature, extent, and conduct of gaming activities; public health, safety, and welfare; and other operational requirements. The Department also conducts background investigations of all prospective gaming employees, management contractors, providers of gaming services, and manufacturers and distributors of gaming devices in order to ensure that unsuitable individuals or companies are not involved in Arizona's gaming industry. Number of Gaming Machines Inspected and Certified ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 2,140.0 1,671.5 260.2 85.9 0.0 1,639.2 280.8 3.4 2,340.2 1,836.2 261.8 99.3 0.0 602.0 161.3 3.4 2,340.2 1,836.2 261.8 99.3 0.0 602.0 161.3 3.4 2,353.9 1,947.6 261.8 99.3 0.0 664.9 161.3 (40.9) 11,557.4 11,874.2 11,874.2 12,346.3 300.0 1,592.7 300.0 1,998.3 300.0 1,998.3 300.0 2,063.4 9,664.7 9,575.9 9,575.9 9,983.0 11,557.4 11,874.2 11,874.2 12,346.3 Appropriated Fund Lottery Fund Permanent Tribal-State Compact Fund Arizona Benefits Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Problem Gambling 1,875.5 1,896.5 1,896.5 2,084.6 SLI Casino Operations 1,592.7 1,998.3 1,998.3 2,063.4 Certification Executive Appropriation Recommendations 20,000 18,000 16,000 FY 2013 Standard Adjustments 14,000 12,000 10,000 8,000 6,000 Retirement Standard Adjustment 25.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 4,000 2,000 0 Permanent Tribal-State Compact Fund FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 5.5 Arizona Benefits Fund 19.5 Rent Standard Adjustment (1.1) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 14,000 $ 12,000 Arizona Benefits Fund (1.1) $ 10,000 Health Insurance Rate Reduction $ 8,000 (77.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 6,000 $ 4,000 $ 2,000 $0 Permanent Tribal-State Compact Fund (17.2) Arizona Benefits Fund (60.2) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Enforcement Certification Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 9,964.7 1,592.7 9,875.9 1,998.3 9,875.9 1,998.3 10,283.0 2,063.4 11,557.4 11,874.2 11,874.2 12,346.3 123.0 5,476.4 123.0 6,570.0 123.0 6,570.0 123.0 6,898.5 Category FTE Personal Services 94 Department of Gaming FY 2013 Executive Budget FY 2013 Other Adjustments Increase Awareness and Availability of Problem Gambling Treatment 175.4 Proposition 202, approved by voters in 2002, allocates 2% of tribal gaming revenues to the Department for problem gambling prevention, treatment and education. Based on Executive revenue projections, 2% of tribal gaming revenues to the State equates to an additional $175,400 in funding for problem gambling. During FY 2010, 908 individuals received treatment for problem gambling through the Office of Problem Gambling. However, the need for treatment and awareness far outweighs the available resources for problem gambling, as it is estimated that as many as 100,000 adults in Arizona may be in need of treatment. Arizona Benefits Fund 175.4 AG Pro-Rata Appropriation (44.3) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Permanent Tribal-State Compact Fund (9.7) Arizona Benefits Fund (34.6) State Employee Pay Adjustment 394.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Permanent Tribal-State Compact Fund 86.5 Arizona Benefits Fund 308.1 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Percentage of facilities reviewed for compact compliance reviews Percent of all gaming devices certified 100 100 100 100 100 100 100 100 Percent of temporary certifications issued within 20 days Total number of individual applications received Total number of days elapsed from receipt of completed application to the issuance of temporary certification 100 94 95 95 10,435 8,569 10,000 10,000 5.24 4 6 6 The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail Department of Gaming 95 GSA Debt Service Transfers Out Arizona Geological Survey Mission: To inform and advise the public about the geologic character of Arizona to help meet societal needs for water, energy, and mineral resources and assist in prudently managing the state's land and natural resources. Description: Arizona Geological Survey (AZGS) staff perform several important functions for their customers who include governmental agencies, elected officials and staff, environmental and engineering geology firms, hydrologists, energy and mineral resource exploration and production companies, consultants, planners, property owners and potential buyers, attorneys, realtors, insurance companies, tourists, teachers, students, book dealers, professional societies, citizen groups, and interested individuals. First, they inform and advise the public by answering questions, selling maps and reports, maintaining a geology library and databases, giving talks, and leading field trips. Second, they map and characterize rock formations, surficial materials, and mineral and energy resources. Third, they describe and monitor potential hazards and limitations to land and resource management (e.g. earthquakes, flooding, land subsidence and earth fissures, landslides, debris flows, and rock solution). Fourth, they provide support for the Arizona Oil and Gas Conservation Commission. Agency - Approp. Funds 0.4 0.0 0.0 0.0 0.0 0.0 0.0 (3.2) 789.0 865.1 865.1 985.4 789.0 865.1 865.1 985.4 789.0 865.1 865.1 985.4 Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Federal Economic Recovery Fund Federal Grant Geological Survey Fund Indirect Cost Recovery Fund 3,584.5 4,973.6 4,973.6 4,990.5 452.2 499.2 564.9 560.6 300.8 725.2 560.6 300.8 725.2 572.9 306.4 729.9 Agency - Nonapp. Funds 5,100.8 6,560.2 6,560.2 6,599.6 5,889.8 7,425.3 7,425.3 7,585.1 Agency Total - All Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund General Fund and Total Funds Expenditure 1.8 Rent Standard Adjustment $ 5,000 $ 4,500 98.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 4,000 $ 3,500 $ 3,000 General Fund 98.4 Health Insurance Rate Reduction (5.2) $ 2,500 $ 2,000 $ 1,500 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 1,000 $ 500 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Arizona Geological Survey Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 789.0 865.1 865.1 985.4 789.0 865.1 865.1 985.4 6.2 414.3 155.8 4.6 3.3 3.5 0.0 205.7 1.4 6.2 467.0 180.0 4.6 3.3 3.5 0.0 205.7 1.0 6.2 467.0 180.0 4.6 3.3 3.5 0.0 205.7 1.0 6.2 490.4 181.7 4.6 3.3 3.5 0.0 304.1 1.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 96 (5.2) Other Adjustments Agency Summary - Appropriated Funds Program/Cost Center General Fund AG Pro-Rata Appropriation (3.2) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.2) State Employee Pay Adjustment 28.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund Arizona Geological Survey 28.5 Performance Measures FY 2013 Executive Budget Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Number of talks given or fieldtrips led 53 53 45 50 Percent increase (decrease) in number 38 13 10 of publications sold info is available via the internet and, less of the technical and topographic maps are  More needed in hard copy. We will adjust to this change in the market. Percent increase (decrease) in sales of 56 -64 10 technical maps and reports The market is changing as more things are available to be downloaded.  Percent increase (decrease) in sales of -38 15 non-technical reports Less technical things are selling, more interest in general use/recreation  Average days to issue a permit Compliance and safety inspections made 8 10 10 8 2 4 5 5 29 31 28 28 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Arizona Geological Survey 97 Non-Appropriated Funds GTA Government Information Technology Agency Mission: To maximize information technology coordination and connectivity within the state of Arizona ensuring that its information technology infrastructure efficiently and effectively supports state business. FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,012.2 0.0 159.8 0.0 5,337.0 0.0 159.8 0.0 Federal Funds Expenditures - as reported by Agency FY 2011 Actual Description: In previous years, the Government Information Technology Agency (GITA) was responsible for statewide information technology planning, coordination and consulting for executive agencies. Laws 2011, Chapter 27 merged this Agency into the Department of Administration. It is now called the Strategic Transformation and Innovation Office and continues to set the technology, security, privacy, and communication strategies, policies, and procedures for the state of Arizona. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 1,968.0 0.0 0.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Agency Summary - Appropriated Funds Program/Cost Center Government Information Technology Agency Public Safety Communications Commission FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,738.1 0.0 0.0 0.0 586.7 0.0 0.0 0.0 Agency - Approp. Funds 3,324.8 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 29.0 1,516.7 479.3 447.6 6.8 6.6 0.0 495.6 372.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3,324.8 0.0 0.0 0.0 586.7 2,487.6 0.0 0.0 0.0 0.0 0.0 0.0 250.5 0.0 0.0 0.0 3,324.8 0.0 0.0 0.0 Agency - Approp. Funds Appropriated Fund General Fund Information Technology Fund State Web Portal Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Federal Economic Recovery Fund Federal Grant 98 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,240.4 0.0 69.9 0.0 771.8 0.0 89.9 0.0 Government Information Technology Agency FY 2013 Executive Budget GVA Non-Appropriated Funds Office of the Governor Mission: To provide leadership for the State of Arizona and to manage the Executive branch of state government to ensure that it efficiently and effectively serves Arizona's citizens. Description: The Governor serves as the Chief Executive Office of the Arizona state government. The Constitution provides that the Governor shall be the Commander-in-Chief of Arizona's military forces and authorizes the Governor to grant reprieves, commutations, and pardons, pursuant to law. The Governor is also responsible for making appointments to positions in state government pursuant to law, representing Arizona in official dealings with other governmental entities, taking action on bills approved by the Legislature, and informing the public on issues affecting the state. FY 2011 Actual Prevention of Child Abuse Stimulus Statewide Admin Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 422.6 1,392.8 512.4 1,215.2 512.4 1,215.2 506.9 1,223.4 294,676.8 219,410.6 218,118.2 28,189.4 300,334.4 226,199.2 224,906.8 35,066.1 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 289,317.9 212,350.7 22,414.2 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 General Fund and Total Funds Expenditure Standard Adjustments $ 20,000 Rent Standard Adjustment $ 18,000 82.2 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 16,000 $ 14,000 $ 12,000 General Fund $ 10,000 $ 8,000 Health Insurance Rate Reduction 82.2 (37.1) $ 6,000 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 4,000 $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds FY 2011 Actual Program/Cost Center Governor's Office Agency - Approp. Funds FY 2012 Approp. Agency - Approp. Funds FY 2013 Exec. Rec. 5,657.6 6,788.6 6,788.6 6,876.7 5,657.6 6,788.6 6,788.6 6,876.7 5,657.6 0.0 6,601.9 186.7 6,601.9 186.7 6,876.7 0.0 5,657.6 6,788.6 6,788.6 6,876.7 Non-Appropriated Funds FY 2011 Actual County Fairs, Livestock and Agricultural Promotion Fund Federal Economic Recovery Fund Federal Grant Governor's Endowment Partnership Fund IGA and ISA Fund Inauguration 2011 Fund Indirect Cost Recovery Fund Oil Overcharge Fund Agency Operating Detail 1,799.5 FY 2012 Expend. Plan 1,780.0 FY 2012 Exec. Rec. 1,780.0 (37.1) Baseline Adjustments FY 2012 Exec. Rec. Appropriated Fund General Fund Oil Overcharge Fund General Fund FY 2013 Exec. Rec. 1,780.0 Oil Overcharge Administration (186.7) The Oil Overcharge Fund receives revenue from federal oil overcharge settlements and is used for grants and loans for energy development and conservation. The State appropriation was originally intended to provide administration and monitoring of grants and loans; however, for the last five years, the administration of the program has been covered by the nonappropriated portion of the Fund. No money has been expended from the appropriations. The Executive recommends eliminating the appropriation. Oil Overcharge Fund (186.7) Other Adjustments 269,516.3 182,419.6 182,419.6 4,124.8 19,793.2 0.0 29,931.1 1,286.8 29,931.1 0.0 18,456.5 0.0 825.4 66.9 860.2 985.0 217.1 920.0 985.0 217.1 920.0 1,002.6 0.0 947.5 0.0 143.4 137.8 147.7 State Employee Pay Adjustment 229.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 229.7 The Executive recommends a lump-sum appropriation to the agency. Office of the Governor 99 OSP FY 2013 Governor's Office of Strategic Planning and Budgeting General Fund Mission: To facilitate the effective and efficient allocation of resources in accordance with fiscally sound principles that will enable the Governor and state government to provide quality services to the citizens of Arizona. Description: This office provides a central Executive branch resource for the compilation, analysis, and investigation of state fiscal matters. It advises the Governor in preparation of the Executive budget and advocates for that budget through the legislative process. The office assists and advises all entities of state government in budget development and execution. It also coordinates the process of defining state government programs, development and execution. It also coordinates the process of defining state government programs, developing strategic plans, and measuring program performance to achieve desired results. The office is also responsible for fulfilling constitutionally and legislatively mandated reporting requirements related to the state budget. (12.0) Other Adjustments AG Pro-Rata Appropriation (8.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (8.6) State Employee Pay Adjustment 76.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 76.5 The Executive recommends a lump-sum appropriation to the agency. Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Office of Strategic Planning and Budgeting 1,816.9 1,874.2 1,874.2 1,993.5 Agency - Approp. Funds 1,816.9 1,874.2 1,874.2 1,993.5 1,816.9 1,874.2 1,874.2 1,993.5 1,816.9 1,874.2 1,874.2 1,993.5 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 4.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 4.8 Rent Standard Adjustment 58.6 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund Health Insurance Rate Reduction 58.6 (12.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 100 Governor's Office of Strategic Planning and Budgeting FY 2013 Executive Budget HSA Department of Health Services Mission: To set the standard for personal and community health through direct care delivery, science, public policy, and leadership. Description: The Arizona Department of Health Services is responsible for Public Health Services, including the Arizona State Laboratory, epidemiology & disease control, emergency medical services/trauma, public health emergency preparedness & response, public health statistics, vital records, border health, children with special health care needs, health systems development, minority health, chronic disease prevention & nutrition, oral health, tobacco education, and women's & children's health; Behavioral Health Services, including general mental health services, substance abuse treatment & prevention services, services for the seriously mentally ill, title XIX/XXI adults and children, non-Title XIX/XXI adults and children, contract compliance, consumer rights, and quality management; the Arizona State Hospital, including adult civil services, adult forensic services, and the Arizona Community & Protection Treatment Center; and the licensing and certification of health and child care facilities. Title XIX - BHS Enrollment 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 General Fund and Total Funds Expenditure $ 2,000,000 $ 1,800,000 $ 1,600,000 $ 1,400,000 $ 1,200,000 $ 1,000,000 $ 800,000 $ 600,000 Family Health Behavioral Health Arizona State Hospital Agency - Approp. Funds $0 Agency Summary - Appropriated Funds Program/Cost Center Administration Public Health Agency Operating Detail FY 2011 Actual 30,872.7 16,291.6 FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 118,429.7 4,403.7 118,429.7 4,403.7 120,393.0 4,403.7 10,643.5 448,440.5 1,130.7 10,643.5 497,093.6 3,630.7 10,687.4 559,410.1 631.3 501,466.7 583,048.1 634,201.2 695,525.5 1,513.3 49,773.3 21,246.0 11,272.7 373.4 52.1 61,483.2 26,583.8 822.9 329,859.3 1,513.3 50,924.1 20,769.4 13,729.3 452.4 66.1 81,250.1 20,762.2 482.4 394,612.1 1,513.3 50,924.1 20,769.4 13,729.3 452.4 66.1 81,250.1 64,813.5 482.4 401,713.9 1,513.3 53,470.2 20,813.3 13,729.3 452.4 66.1 153,527.7 59,118.3 482.4 393,865.8 501,466.7 583,048.1 634,201.2 695,525.5 428,305.8 52.3 34,575.8 494,294.8 0.0 35,167.0 538,346.1 0.0 42,268.8 605,821.9 0.0 43,342.3 1,587.1 7,623.6 1,245.5 8,260.3 1,245.5 8,260.3 1,363.5 8,000.0 820.7 827.8 827.8 845.6 0.0 3,991.7 1,500.0 5,024.3 1,500.0 5,024.3 1,500.0 5,090.2 4,950.5 6,680.1 6,680.1 6,723.4 2,250.0 2,250.0 2,250.0 2,250.0 0.0 438.0 438.0 439.1 650.0 907.2 907.2 920.2 95.1 166.8 92.7 3,586.0 92.7 3,586.0 95.3 3,637.5 309.7 308.1 308.1 313.9 8,088.3 13,807.3 13,807.3 6,884.3 169.1 1,150.0 1,150.0 650.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Service Fees Increase Fund Tobacco Tax and Health Care Fund Capital Outlay Stabilization Health Services Licenses Fund Child Care and Development Fund Health Research Fund Emergency Medical Operating Services Newborn Screening Program Fund Substance Abuse Services Fund Nursing Care Institution Resident Protection Revolving Fund Environmental Laboratory Licensure Revolving Child Fatality Review Fund Vital Records Electronic Systems Fund Hearing and Speech Professionals Fund The Arizona State Hospital Fund DHS State Hospital Land Earnings DHS - Indirect Cost Fund Agency - Approp. Funds $ 400,000 $ 200,000 30,627.9 360,963.1 62,711.4 7,830.2 7,509.0 7,509.0 7,648.1 501,466.7 583,048.1 634,201.2 695,525.5 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Assurance and Licensure 8,496.6 0.0 0.0 0.0 SLI Indirect Fund 7,830.2 0.0 0.0 28.3 SLI Hearing and Speech 309.7 0.0 0.0 0.0 Professionals SLI Tuberculosis Provider 503.7 590.7 590.7 590.7 Care and Control SLI Biomedical Research 0.0 500.0 500.0 500.0 Comission Department of Health Services 101 SLI Loan Repayment Services SLI AIDS Reporting & Surveillance SLI Laboratory Services SLI Alzheimer's Disease Research SLI EMS Operations SLI Trauma Advisory Board SLI Vital Records Maintenance SLI Arizona Statewide Immunization Information System SLI Renal/Nonrenal Disease Management SLI Scorpion Antivenom SLI Poison Control Centers SLI AHCCCS - CRS SLI Adult Cystic Fibrosis SLI High Risk Perinatal Services SLI Child Fatality Review Team SLI Newborn Screening Program SLI Medicaid Special Exemption Payments SLI Breast and Cervical Cancer Screening SLI Folic Acid SLI Medicaid Behavioral Health-Traditional SLI Medicaid Behavioral Health-Prop 204 SLI Children's Behavioral Health - State Match (TXIX) SLI Seriously Mentally Ill (TXIX) SLI Title XIX Administration SLI Mental Health & Substance Abuse State Match (TXIX) SLI Medicaid Special Exemption Payments SLI Prop 204 Administration SLI Prop 204 Seriously Mentally Ill SLI Prop 204 General Mental Health and Substance Abuse SLI Prop 204 Children's Behavioral Health SLI Medicare Clawback Payments SLI Contract Compliance SLI Crisis Services SLI Supported Housing SLI Non-Title XIX Prescription Medication SLI Community Placement Treatment 102 107.5 0.0 0.0 0.0 895.5 1,000.0 1,000.0 1,000.0 4,124.8 0.0 0.0 1,125.0 0.0 1,125.0 0.0 1,125.0 2,353.4 345.7 166.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 210.2 0.0 0.0 0.0 110.0 198.0 198.0 198.0 90.0 666.3 21,861.7 52.6 1,910.4 0.0 990.0 0.0 105.2 2,543.4 0.0 990.0 0.0 105.2 2,543.4 0.0 990.0 0.0 105.2 2,543.4 219.3 0.0 0.0 0.0 4,950.5 6,248.2 6,248.2 6,291.5 437.2 0.0 0.0 0.0 1,013.8 1,346.7 1,346.7 1,347.2 182.3 0.0 400.0 326,226.0 400.0 374,879.1 400.0 398,503.6 0.0 38,378.7 38,378.7 38,378.7 93,506.5 0.0 0.0 0.0 57,581.4 0.0 0.0 0.0 779.5 0.0 0.0 0.0 29,704.6 0.0 0.0 0.0 4,455.8 7,292.1 7,292.1 7,292.1 1,151.9 69,400.8 2,131.4 0.0 2,131.4 0.0 2,131.4 0.0 37,095.9 0.0 0.0 0.0 816.8 8,581.5 937.1 16,858.1 5,019.7 34,472.3 0.0 0.0 12,541.5 0.0 16,391.1 5,324.8 40,154.9 1,130.7 0.0 12,541.5 0.0 16,391.1 5,324.8 40,154.9 1,130.7 SLI Community Protection & Treatment Center 9,149.2 0.0 0.0 0.0 Non-Appropriated Funds FY 2011 Actual Breast/Cervical Cancer Plate Fund DHS Donations DHS Internal Services Disease Control Research Fund Federal Economic Recovery Fund Federal Grant Health Research Fund IGA and ISA Fund Medical Marijuana Fund Oral Health Fund Risk Assessment Fund Smoke-Free Arizona Fund Statewide Donations Tobacco Tax and Health Care Fund FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 189.8 189.8 189.8 189.8 440.0 (20.7) 2,051.9 440.0 0.0 1,990.2 440.0 0.0 1,990.2 440.0 0.0 2,001.5 4,848.4 3,781.8 3,781.8 109.6 292,444.8 7,469.8 1,491,128.3 655.8 226.1 15.8 2,672.8 2.5 16,121.6 291,306.5 7,227.5 1,227,074.6 1,500.0 226.1 15.8 2,672.8 0.0 19,000.0 291,306.5 7,227.5 1,227,074.6 1,500.0 226.1 15.8 2,672.8 0.0 19,000.0 291,767.7 7,240.0 1,245,441.2 1,524.8 229.9 16.4 2,698.6 0.0 19,055.8 Agency - Nonapp. Funds 1,818,246.9 1,555,425.1 1,555,425.1 1,570,715.3 2,138,473.2 2,189,626.3 2,266,240.7 Agency Total - All Funds 2,319,713.5 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 297,293.0 295,088.7 287,933.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 193.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 146.3 Health Services Licenses Fund 13.5 Child Care and Development Fund 1.6 Emergency Medical Services Operating Fund 5.8 Newborn Screening Program Fund 3.8 Nursing Care Institution Protection Fund 0.1 12,541.5 Environmental Lab License Revolving Fund 1.2 0.0 16,391.1 5,324.8 40,154.9 Child Fatality Review Fund 0.2 Vital Records Electronic Systems Fund 4.5 Hearing and Speech Professionals Fund 0.6 The Arizona State Hospital Fund 6.8 DHS - Indirect Cost Fund 9.1 0.0 1,130.7 Health Insurance Rate Reduction Department of Health Services (694.1) FY 2013 Executive Budget FY 2013 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Health Services Licenses Fund (507.8) (62.2) Child Care and Development Fund (7.2) Emergency Medical Services Operating Fund (21.7) Newborn Screening Program Fund (14.6) Environmental Lab License Revolving Fund (5.4) Child Fatality Review Fund Vital Records Electronic Systems Fund (1.1) (16.9) Hearing and Speech Professionals Fund (3.0) The Arizona State Hospital Fund (26.9) DHS - Indirect Cost Fund (27.3) Rent Standard Adjustment 164.1 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund Capital Outlay Stabilization Fund DHS - Indirect Cost Fund 17.8 118.0 28.3 Baseline Adjustments BHS State Match TXIX Tobacco Tax and Health Care Fund 64,102.3 8,175.3 Other Adjustments State Hospital Land Earnings Fund (500.0) The Executive recommends decreasing the appropriation from the DHS State Hospital Land Earning Fund to better align the appropriation with projected revenue. DHS State Hospital Land Earnings Fund (500.0) Health Services Licensing Fund (402.6) The Executive recommends decreasing the appropriation from the Health Services Licensing Fund to better align revenues and expenditures. Health Services Licenses Fund Agency Operating Detail Non-TXIX SMI Services 38,692.0 In FY 2010, the Executive, in conjunction with the plaintiffs, successfully received a stay of the litigation and enforcement of existing Court Orders until June 30, 2012, relating to the Arnold v. Sarn litigation. The Executive recommends providing the following services for individuals who have a serious mental illness: Medication and Medication Services Crisis Services Supported Employment Case Management Family and Peer Support Supported Housing Living Skills Training Health Promotion Personal Assistance Respite Care The Executive estimates the cost of these services to be $39.0 million in addition to money already available in the budget for medication and crisis services. General Fund 38,692.0 Arizona State Hospital Fund 72,277.6 The Department is responsible for providing Behavioral Health Services (BHS) to Title XIX-eligible clients. These services, for both children and adults, are federally mandated and require the State match to be paid through a capitation rate. The amount the State is required to match is determined by the Federal Medical Assistance Percentage (FMAP), which determines how much the federal government will contribute each year. For FY 2013, the proposed rate will be 66.09%. The Executive recommends an increase of $72.3 million to accommodate projected increases of 4% in the eligible population and 3% in the capitation rate. General Fund FY 2013 (402.6) 0.0 Due to changes in county payment requirements for Restoration to Competency patients and for patients housed in the Arizona Community Protections and Treatment Center, the revenue in the Arizona State Hospital (ASH) Fund has been declining and cannot support the appropriation from the fund. The Executive recommends decreasing the appropriation from the ASH Fund by ($7.0 million) and increasing the appropriation from the General Fund by $7.0 million. General Fund The Arizona State Hospital Fund 7,000.0 (7,000.0) Newborn Screening Funding 0.0 The Newborn Screening Program checks for 29 congenital and metabolic disorders that have a low incidence in the population but could have devastating consequences if undetected. The program provides an initial screen and a follow-up screen. The Executive recommends allowing the Director to set the fees for the screen, with a rule-making exemption for the initial fee increase. Additionally, the Executive recommends allowing the Department to expend any revenue received in the fiscal year that exceeds its appropriation for that fiscal year. AG Pro-Rata Appropriation (343.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. 38,692.0 Department of Health Services 103 FY 2012 FY 2013 General Fund (259.8) Health Services Licenses Fund (23.9) Child Care and Development Fund (2.9) Emergency Medical Services Operating Fund (10.3) Newborn Screening Program Fund (6.8) Nursing Care Institution Protection Fund (0.1) Environmental Lab License Revolving Fund (2.2) Child Fatality Review Fund (0.4) Vital Records Electronic Systems Fund (8.0) Hearing and Speech Professionals Fund (1.0) The Arizona State Hospital Fund (12.2) DHS - Indirect Cost Fund (16.2) State Employee Pay Adjustment 3,090.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 2,336.4 Health Services Licenses Fund 214.9 Child Care and Development Fund 26.3 Emergency Medical Services Operating Fund 92.1 Newborn Screening Program Fund 60.9 Nursing Care Institution Protection Fund 1.2 Environmental Lab License Revolving Fund 19.3 Child Fatality Review Fund 3.9 Vital Records Electronic Systems Fund 71.9 Hearing and Speech Professionals Fund 9.3 The Arizona State Hospital Fund 109.2 DHS - Indirect Cost Fund 145.2 FY 2012 Supplemental Recommendations FY 2012 Technical Adjustments- Tobacco Tax 7,101.8 The Executive recommendation adjusts expenditures of Tobacco Tax- Medically Needy Account and Health Education Account dollars to reflect estimated revenues. Tobacco Tax and Health Care Fund Arizona State Hospital Fund 7,101.8 2,500.0 In 2010, the revenue for the Arizona State Hospital (ASH) fund was projected to be $13.4 million in FY 2012, due to changes in County payment requirements for Restoration to Competency patients and for patients housed in the Arizona Community Protection and Treatment Center. The fund is projected to receive only $6.3 million in revenue in FY 2012 and does not have a sufficient cash balance to support its appropriation. The Executive recommends a one-time backfill of $2.5 million to the ASH Fund. General Fund 104 Reallocation from AHCCCS 27,851.3 In FY 2012, the Executive recommends using prescription drug rebate funds to offset AHCCCS General Fund costs. The General Fund saved by AHCCCS will be reallocated to DHS to offset the supplemental need for behavioral health services. General Fund 27,851.3 Reallocation from DES 13,700.0 The enacted FY 2012 budget included several cost-saving measures that affected all Title XIX State agencies, including AHCCCS, the Department of Economic Security (DES) and the Department of Health Services (DHS). It was later determined that an additional appropriation totaling $13.7 million was available in the DES Developmental Disabilities Program budget, while an equal amount was deficient in the DHS budget. Consequently, the Executive recommends decreasing the FY 2012 DES appropriated budget by ($13.7 million) and increasing the FY 2012 DHS budget by the same amount. General Fund 13,700.0 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 1.6 5.28 7 7 Percent of staff turnover during the first 12 months of employment Percent of child care license renewals 99 100 0* 0* granted within licensing timeframes Per S.B. 1315 Child Care licenses are perpetual. No renewals in FY 2012 and FY 2013  Number of public health and emergency response professionals on Health Alert Network Percent of high school youth who smoked in the last month Immunization rate among 2-year old children Percent of child care complaint investigations initiated within investigative guidelines Percent of health care licensure renewals granted within licensing timeframes Percent of health care complaint investigations initiated within investigative guidelines Percent of agency staff turnover Percent of eligible Title XIX population enrolled in behavioral health treatment programs 5,800 6,100 6,300 6,400 19.7 20 17 17 86 85 86 86 99 100 99 99 99 99.98 99 99 49 50.64 53 58 14.8 15.8 15.9 16 16.3 15 15 15 The Executive recommends a modified lump-sum appropriation by program with special line items. 2,500.0 Department of Health Services FY 2013 Executive Budget GHA Governor's Office of Highway Safety Mission: To be the focal point for highway safety issues in Arizona, to provide leadership by developing, promoting, and coordinating programs relating to highway safety, to influence public and private policy regarding highway safety, and to increase public awareness of highway safety. Description: The Governor's Office of Highway Safety (GOHS) develops the Arizona Highway Safety Plan (HSP) through annual problem identification and analysis of traffic records, citations, convictions, judicial outcome, incarcerations, assessments, screening, treatment, prevention, and surveys. The HSP serves as a means for the reduction of traffic crashes, deaths, injuries, and property damage resulting from accidents on public roads. GOHS develops, promotes, and implements effective education and enforcement programs geared towards ending preventable crashes and reducing economic costs associated with vehicle use and highway travel. General Fund and Total Funds Expenditure $ 12,000 $ 10,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual Federal Grant IGA and ISA Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 11,303.7 400.4 6,468.3 401.2 6,468.3 401.2 6,492.6 406.6 11,704.1 6,869.5 6,869.5 6,899.2 11,704.1 6,869.5 6,869.5 6,899.2 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 11,303.7 6,468.3 6,106.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Agency Operating Detail Governor's Office of Highway Safety 105 HIA Arizona Historical Society Mission: To collect, preserve, interpret, and disseminate the history of Arizona, the West, and northern Mexico, as it pertains to Arizona. Description: The Arizona Historical Society (AHS) is a membership and government supported, nonprofit, state agency. It is governed by a membership-elected board representing each county in the state. Museums are located in Flagstaff, Tempe, Tucson, and Yuma. The Society museums maintain extensive library and archival collections used by a diverse general audience. The Society produces the Journal of Arizona History and various historical books. The AHS Board develops the biennial budget and authorizes and approves all expenditures. The Administrative Division provides finance, budget, personnel, and management support to each of the divisions. AHS certifies and supports 63 local historical societies in preserving and disseminating Arizona history. The Society also supports other board-approved community activities. ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 677.9 1.0 0.0 0.0 41.5 3,506.0 0.0 0.0 735.9 1.0 0.0 0.0 41.7 1,801.4 0.0 0.0 735.9 1.0 0.0 0.0 41.7 1,995.1 0.0 0.0 735.6 1.0 0.0 0.0 41.7 748.8 0.0 (10.6) 5,695.3 4,151.1 4,344.8 3,166.2 5,264.5 430.8 4,151.1 0.0 4,344.8 0.0 3,166.2 0.0 5,695.3 4,151.1 4,344.8 3,166.2 Appropriated Fund General Fund Capital Outlay Stabilization Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Field Services and 65.0 65.0 65.0 65.9 Grants SLI Papago Park 3,606.2 1,465.3 1,659.0 391.3 SLI Centennial Museum 0.0 589.7 589.7 626.9 Non-Appropriated Funds FY 2011 Actual Museum Attendance 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Historical Society Preservation/Restoration Mines & Mineral Resources Non-Appropriated Private Grants Non-Appropriated Private Operating Non-Appropriated Restricted Funds Non-Appropriated Trust Funds Permanent AZ Historical Society Revolving Agency - Nonapp. Funds General Fund and Total Funds Expenditure Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 16.7 17.9 17.9 18.8 589.7 20.0 0.0 37.3 0.0 37.3 0.0 30.0 292.4 360.0 360.0 324.9 121.5 252.2 252.2 150.3 1.4 4.3 4.3 3.6 500.0 585.3 391.6 545.9 1,541.7 1,257.0 1,063.3 1,073.5 7,237.0 5,408.1 5,408.1 4,239.7 $ 8,000 $ 7,000 Executive Appropriation Recommendations $ 6,000 FY 2013 $ 5,000 Standard Adjustments $ 4,000 Retirement Standard Adjustment $ 3,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 2,000 $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Program/Cost Center Arizona Historical Society Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 5,695.3 4,151.1 4,344.8 3,166.2 5,695.3 4,151.1 4,344.8 3,166.2 37.7 1,468.9 51.9 1,571.1 51.9 1,571.1 51.9 1,649.7 6.0 (1,052.6) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund Health Insurance Rate Reduction Category FTE Personal Services General Fund Rent Standard Adjustment Agency Summary - Appropriated Funds 106 6.0 (1,052.6) (23.3) The Executive recommendation includes a (13.2%) reduction in Arizona Historical Society FY 2013 Executive Budget FY 2013 employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (23.3) Other Adjustments AG Pro-Rata Appropriation (10.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (10.6) State Employee Pay Adjustment 95.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 95.6 FY 2012 Supplemental Recommendations FY 2012 Papago Park Rent Payment 193.7 In FY 2010 the Society was appropriated $1.4 million for leasepurchase payments at the Museum at Papago Park. The Society received an appropriation increase of $1.7 million in FY 2011 to make a one-time final lease-purchase payment on the property. This raised the total rent allocation for the museum to $3.1 million. The FY 2012 appropriation included a rent adjustment of ($2.1) million leaving $934,600 for rent expenditures at Papago Park. However, the Society is being billed $1.1 million for rent at the museum. The Executive recommends an increase of $193,700 for FY 2012 for rent payments on the Museum at Papago Park. General Fund 193.7 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Public program attendance 185,000 167,500 137,500 237,500 Number of museum visitors and researchers Number of volunteer hours 100,000 108.400 85,000 185,000 49,200 45,000 47,500 47,500 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Arizona Historical Society 107 PHA Prescott Historical Society of Arizona Mission: To: serve as an educational and cultural center, which fosters public and community understanding and appreciation of historical, social, and natural aspects of Arizona, with emphasis on the Central Highlands, and which promotes involvement in and support for research, collections, conservation, exhibits, and related programs. Description: The Prescott Historical Society operates the Sharlot Hall Museum, which was founded in 1928 and is located on the grounds of the first territorial governor's residence and offices. The nearly 4 acre landscaped campus includes seven restored historic structures, featuring the territorial Governor's Mansion (1864) and the Victorian-era Bashford House (1877). A modern Museum Center (1977) hosts changing exhibits, historic theater, artifacts storage of extensive historic and prehistoric objects,. A large ArchiveLibrary, in an adjacent state of the art structure built in 1993 houses approximately 100,000 images and documents. A branch museum at the VA Center interprets the history of Ft. Whipple. Public programs include the Folk Arts Fair, Prescott Indian Art Market, Folk Music Festival, Day of the Dead (Dia De Los Muertos), Territorial Christmas, Blue Rose Theater historical productions, historical reenactments in both indoor and outdoor settings, heritage gardens, lecture series, and education tour as well as outreach opportunities for children and adults. All these activities contribute significantly to cultural tourism enhancing the quality of life for the local community and contributing to the economic well being of the local area and the state. Museum Attendance General Fund and Total Funds Expenditure $ 900 $ 800 $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Sharlot Hall Museum Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 618.3 652.6 652.6 667.5 618.3 652.6 652.6 667.5 10.0 364.5 208.9 1.8 0.1 0.0 0.0 43.0 0.0 0.0 10.0 375.7 188.6 16.0 0.0 0.0 0.0 72.3 0.0 0.0 10.0 375.7 188.6 16.0 0.0 0.0 0.0 72.3 0.0 0.0 10.0 394.5 187.2 16.0 0.0 0.0 0.0 72.3 0.0 (2.5) 618.3 652.6 652.6 667.5 618.3 652.6 652.6 667.5 618.3 652.6 652.6 667.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund 40,000 Agency - Approp. Funds 35,000 Non-Appropriated Funds 30,000 FY 2011 Actual 25,000 20,000 Sharlot Hall Historical Society 501 15,000 10,000 Agency - Nonapp. Funds 5,000 Agency Total - All Funds 0 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 803.6 1,760.1 1,760.1 1,775.2 803.6 1,760.1 1,760.1 1,775.2 1,421.9 2,412.7 2,412.7 2,442.7 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 1.4 Health Insurance Rate Reduction (7.0) The Executive recommendation includes a (13.2%) reduction in 108 Prescott Historical Society of Arizona FY 2013 Executive Budget FY 2013 employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (7.0) Other Adjustments AG Pro-Rata Appropriation (2.5) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (2.5) State Employee Pay Adjustment 23.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 23.0 Agency did not provide performance measure information The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Prescott Historical Society of Arizona 109 HLA Non-Appropriated Funds Department of Homeland Security FY 2011 Actual Mission: To enhance Arizona’s preparedness and provide strategic direction for securing Arizona. Agency - Nonapp. Funds Description: The Arizona Department of Homeland Security provides strategic direction for enhancing regional capability and capacity to prevent terrorist attacks within Arizona, reduce Arizona's vulnerability to all critical hazards, and minimize the damage and recover from all critical hazards that affect the safety, well-being and economic security of the citizens of Arizona. Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 45,741.9 50,785.9 50,785.9 50,889.3 45,741.9 50,785.9 50,785.9 50,889.3 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 45,741.9 50,785.9 50,785.9 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Number of Grant Projects Performance Measures FY 2010 Actual 400 350 Total amount of unexpended grant funds reverted to the Federal Government Results expressed in whole dollars. 300 250  200 Comply with all federal mandates for the efficient allocation of federal dollars in advance of suspense dates Results expressed as a percentage. 150 100 50 FY 2011 Actual FY 2012 Expected FY 2013 Expected 196,974 305,021 0 0 100 100 100 100  0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Federal Grant 110 45,741.9 FY 2012 Expend. Plan 50,785.9 FY 2012 Exec. Rec. 50,785.9 FY 2013 Exec. Rec. 50,889.3 Department of Homeland Security FY 2013 Executive Budget HEA Board of Homeopathic Medical Examiners Mission: To protect the public health, safety, and welfare by regulating Allopathic and Osteopathic physicians who apply for a homeopathic medical license and registering homeopathic medical assistants that work under the supervision of licensed homeopathic physicians that practice within the State of Arizona. Beginning January 1, 2015 the Board shall also regulate licensees who graduate from an approved school of homeopathic medicine and who become licensed by the Board to practice as a Doctor of Homeopathy. Description: The Board of Homeopathic Medical Examiners regulates the practice of homeopathic medicine in Arizona. Homeopathy is a form of alternative medicine in which the fundamental premise for treatment is the belief that diseases are cured by medicines, given in tiny doses, that create symptoms similar to those the patient is experiencing, triggering the body’s natural immune reactions. The Board reviews and examines the education, experience, and background of applicants to determine if they possess the qualifications required by law to practice homeopathic medicine and any of the subspecialties within the scope of practice. Licensees renew their licenses and dispensing permits annually and provide updated information about the nature of their practices. Upon receipt of complaints against licensed homeopathic physicians, the Board conducts investigations and holds hearings, taking disciplinary action as necessary to protect the public safety. The Board also registers homeopathic medical assistants that work under the supervision of licensed homeopathic physicians within Arizona. Homeopathic medical assistants renew their registrations annually every December. Physician licenses are renewed every year on the initial month of licensure. In 2011 the legislature expanded the Board's scope of regulation to include homeopathic doctors who will practice classical homeopathy and nutrition. The first homeopathic doctors will be licensed in January, 2015. Licenses Eligible for Renewal General Fund and Total Funds Expenditure $ 120 $ 100 $ 80 $ 60 $ 40 $ 20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Licensing and Regulation Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 100.7 105.3 105.3 110.8 100.7 105.3 105.3 110.8 1.0 49.2 26.3 14.7 0.9 0.0 0.0 9.6 0.0 1.0 52.8 28.4 1.0 1.2 0.0 0.0 21.9 0.0 1.0 52.8 28.4 1.0 1.2 0.0 0.0 21.9 0.0 1.0 55.4 28.2 3.0 1.2 0.0 0.0 23.0 0.0 100.7 105.3 105.3 110.8 100.7 105.3 105.3 110.8 100.7 105.3 105.3 110.8 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund Homeopathic Medical Examiners Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 300 250 Homeopathic Medical Examiners Fund 0.2 150 Rent Standard Adjustment 1.1 100 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 200 50 Homeopathic Medical Examiners Fund 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Health Insurance Rate Reduction 1.1 (1.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Agency Operating Detail Board of Homeopathic Medical Examiners 111 FY 2013 Homeopathic Medical Examiners Fund The Executive recommends a lump-sum appropriation to the agency. (1.0) Baseline Adjustments Discontinue Fund Transfer 0.0 The Executive recommends discontinuing $2,200 in transfers from the Homeopathic Medical Examiners Fund to the General Fund in FY 2013. Revenues to the Board of Homeopathic Examiners declined in FY 2010 and FY 2011 and will no longer support a transfer to the General Fund. The Board is reviewing options to increase fees to generate sufficient revenues to support its regulatory functions. Other Adjustments Homeopathic Doctor Examination Development 2.0 The Executive recommends $2,000 from the Homeopathic Medical Examiners Fund to develop an examination for applicants to be licensed as Doctors of Homeopathy. Laws 2011, Chapter 186 established a new licensing category of Doctor of Homeopathy (DH) to be regulated by the Board. Previously, to qualify for a license to practice homeopathic medicine, an applicant was required to hold a medical degree from an approved medical school or have completed equivalent education requirements and hold a license in good standing to practice allopathic or osteopathic medicine. Under the new law, a graduate from an approved homeopathic school of medicine will be able to apply for a DH license without holding a license to practice allopathic or osteopathic medicine. In order to be licensed, the applicant is required to meet certain credentialing requirements and to pass an examination for Doctors of Homeopathy. The first applicants for the DH license are expected during FY 2015. The Executive recommends that the Board contract with an expert to develop an initial bank of questions for the DH exam. Homeopathic Medical Examiners Fund 2.0 State Employee Pay Adjustment 3.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Homeopathic Medical Examiners Fund 3.2 Performance Measures Number of licenses renewed FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 168 170 191 191 2011: Total includes 84 physicians,37 dispensing permits, 19 assistants, and 30 chelation  FY permits renewed. Number of complaints or inquiries 17 received Percent of complaints resolved within 94 180 days. 5 out of 6 complaints closed in less than 180 days 7 11 14 83 90 95  112 Board of Homeopathic Medical Examiners FY 2013 Executive Budget HDA Arizona Department of Housing Mission: To provide housing and community revitalization to benefit the people of Arizona. Description: The Department provides housing and community revitalization to benefit the people of Arizona by addressing the unique and changing housing needs in this state. As Arizona grows and the economic and special needs of its population change, the Department is in a position to recognize those unique and changing needs and to respond throughout the state. Creative solutions are developed to be responsive to rural and urban areas as well as to special populations. The Department is working toward sustaining current initiatives and simultaneously maintaining the flexibility to respond to new demands for affordable housing and smart growth efforts. The Department provides both state and federal funding to promote housing and community development activities as well as expertise and technical assistance to address these issues. The Department works closely with local governments, nonprofit and for-profit housing developers, social service agencies, tribal entities, public housing authorities and others to achieve its mission. Affordable Rentals Produced 16,000 Agency - Approp. Funds 895.3 916.9 916.9 337.8 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 11.0 549.7 202.4 18.9 12.6 0.2 0.0 107.8 3.7 0.0 11.0 593.1 236.1 5.1 6.8 0.4 0.0 71.2 4.2 0.0 11.0 593.1 236.1 5.1 6.8 0.4 0.0 71.2 4.2 0.0 3.0 206.1 80.9 3.3 7.0 1.6 0.0 40.6 2.3 (4.0) 895.3 916.9 916.9 337.8 895.3 916.9 916.9 337.8 895.3 916.9 916.9 337.8 Agency - Approp. Funds Appropriated Fund Housing Trust Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Arizona Department of Housing Program Fund Federal Economic Recovery Fund Federal Grant Housing Trust Fund IGA and ISA Fund Agency - Nonapp. Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,636.9 2,769.3 2,769.3 2,993.8 45,775.7 8,095.5 8,095.5 0.0 90,320.7 6,873.8 515.7 75,074.1 10,811.0 225.1 75,074.1 10,811.0 225.1 33,214.9 12,026.2 707.8 146,122.8 96,975.0 96,975.0 48,942.6 147,018.1 97,891.9 97,891.9 49,280.4 14,000 12,000 Agency Total - All Funds 10,000 Federal Funds Expenditures - as reported by Agency FY 2011 Actual 8,000 6,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 136,096.4 83,226.1 33,185.9 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. 4,000 2,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Executive Appropriation Recommendations General Fund and Total Funds Expenditure FY 2013 $ 160,000 Standard Adjustments $ 140,000 Retirement Standard Adjustment $ 120,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 100,000 $ 80,000 $ 60,000 2.3 Housing Trust Fund 2.3 Rent Standard Adjustment 0.7 $ 40,000 $ 20,000 $0 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. -$ 20,000 Housing Trust Fund 0.7 Agency Summary - Appropriated Funds Program/Cost Center Department of Housing Agency Operating Detail FY 2011 Actual 895.3 FY 2012 Approp. 916.9 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 916.9 337.8 Health Insurance Rate Reduction (6.8) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning Arizona Department of Housing 113 Performance Measures FY 2013 January 1, 2013. Housing Trust Fund (6.8) Baseline Adjustments Reduced Housing Trust Fund Administration (607.2)  FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Number of households assisted with financial assistance to avoid eviction, foreclosure, or rehousing, if homeless due to downturn in economy with economic stimulus funding. Over 7,000 households were also assisted with foreclosure counseling in FY2011. The Executive recommends a lump-sum appropriation to the agency. In FY 2012, unclaimed property revenues to the Housing Trust Fund were reduced from $10.5 million per year to $2.5 million per year, resulting in fewer programs and projects being supported by Fund. Consequently, the staffing to administer those programs and projects also decreased, by 8.0 FTE positions. The Executive Recommendation reflects the new level of administration necessary to manage Housing Trust Fund programs in FY 2013. Housing Trust Fund (607.2) Other Adjustments AG Pro-Rata Appropriation (4.0) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Housing Trust Fund (4.0) State Employee Pay Adjustment 35.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Housing Trust Fund 35.9 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected Total number of affordable rental 13,342 12,317 9,095 units assisted/produced Total number of affordable rental units expected to be assisted or produced. FY 2013 Expected 2,633  Total number of individuals assisted 194,545 194,545 200,381 206,392 with information on available affordable rental units through the agency's website Total number of publicly funded 13,554 22,361 21,762 17,777 rental units monitored for health and safety issues number of units monitored is expected to decrease slightly beginning in late FY2012 due  The to loss of federal monitoring contract. Results of customer satisfaction 5.42 5.48 5.58 5.7 survey (7=excellent; 4=satisfactory; 1=poor) agency has incrementally seen an increase in its overall customer satisfaction score since  The 2007. Total number of low-income 206 195 214 214 households assisted into homeownership through the homeownership program though the dollars available (due to reduction in downpayment and closing cost assistance)  Even is expected to go down, the number of households assisted is expected to remain comparable between FY2012 and FY2013. Total number of households assisted 191 2,952 7,605 3,375 with eviction or foreclosure in order to prevent homelessness 114 Arizona Department of Housing FY 2013 Executive Budget RDA FY 2013 Independent Redistricting Commission Mission: To administer the fair and balanced redistricting of congressional and legislative districts for the State of Arizona. Description: The Independent Redistricting Commission was established with the approval of Proposition 106 by voters in November 2000. The Commission has five members, four of whom are selected by the House and Senate majority and minority leadership. The final member is selected by the other four members and cannot be registered with a political party already represented on the Commission. The five-member Commission is responsible for redrawing Arizona's congressional and legislative district boundaries based on the decennial census. Health Insurance Rate Reduction The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund FY 2013 Funding Independent Redistricting Commission Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds FY 2012 Approp. (1,300.0) The Executive recommends a decrease of ($1.3 million) to coincide with the expected decrease in Commission expenditures in FY 2013. The Executive also recommends that the Commission's appropriation be made non-lapsing. (1,300.0) AG Pro-Rata Appropriation Agency Summary - Appropriated Funds FY 2011 Actual (1.2) Other Adjustments General Fund Program/Cost Center (1.2) FY 2012 Exec. Rec. FY 2013 Exec. Rec. 106.2 3,000.0 3,000.0 1,707.1 106.2 3,000.0 3,000.0 1,707.1 2.0 28.0 6.0 36.9 0.7 0.0 0.0 6.8 27.8 0.0 9.0 453.8 149.5 2,052.3 40.2 0.0 0.0 126.6 177.6 0.0 9.0 453.8 149.5 2,052.3 40.2 0.0 0.0 126.6 177.6 0.0 9.0 191.1 53.4 1,380.0 5.0 0.0 0.0 76.2 4.4 (3.1) 106.2 3,000.0 3,000.0 1,707.1 106.2 3,000.0 3,000.0 1,707.1 106.2 3,000.0 3,000.0 1,707.1 (3.1) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.1) State Employee Pay Adjustment 11.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 11.0 The Executive recommends a lump-sum appropriation to the agency. Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.7 Rent Standard Adjustment (0.4) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (0.4) (1.2) Agency Operating Detail Independent Redistricting Commission 115 IAA General Fund Arizona Commission of Indian Affairs Agency - Approp. Funds Mission: To enhance communication and build sustainable relationships between tribal entities and the State of Arizona. 62.3 54.3 54.3 60.1 62.3 54.3 54.3 60.1 Non-Appropriated Funds Description: The Arizona Commission of Indian Affairs (ACIA) has a legislative mandate to assist and support state and federal agencies in assisting Indians and Tribal councils to develop mutual goals; design projects for achieving goals and implement their plans; encourage a spirit of cooperation to guide the continuing government-to-government relationship between the State of Arizona and Tribal Nations and communities located in Arizona; ensure meaningful and timely consultation with Tribal Leaders to facilitate better understanding, informed decision making, and intergovernmental cooperation; establish a spirit of cooperation and collaboration among state agency tribal liaisons in order to share ideas, address needs and effectively implement the mandates outlined in EO 2006-14 and; ensure that state services and resources are available to all eligible citizens residing in Arizona tribal communities to the same extent that such services are available to all other eligible citizens. General Fund and Total Funds Expenditure FY 2011 Actual Arizona Indian Town Hall Fund Donations Fund Indian Affairs Comm Publications Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 10.2 10.2 10.2 10.2 4.3 0.0 17.2 1.7 17.2 1.7 17.2 1.7 14.5 29.1 29.1 29.1 76.8 83.4 83.4 89.2 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.1 Rent Standard Adjustment 4.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 300 $ 250 General Fund 4.4 $ 200 Health Insurance Rate Reduction $ 150 (0.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 100 $ 50 General Fund $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2012 Approp. Other Adjustments AG Pro-Rata Appropriation Agency Summary - Appropriated Funds FY 2011 Actual (0.2) FY 2012 Exec. Rec. FY 2013 Exec. Rec. (0.2) 62.3 54.3 54.3 60.1 The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Agency - Approp. Funds 62.3 54.3 54.3 60.1 General Fund Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 3.0 25.9 12.7 0.0 0.4 0.0 0.0 18.5 0.1 4.7 3.0 27.0 12.2 0.0 0.3 0.0 0.0 14.8 0.0 0.0 3.0 27.0 12.2 0.0 0.3 0.0 0.0 14.8 0.0 0.0 3.0 28.4 12.4 0.0 0.3 0.0 0.0 19.2 0.0 (0.2) State Employee Pay Adjustment 62.3 54.3 54.3 60.1 Program/Cost Center Indian Affairs Agency - Approp. Funds Appropriated Fund 116 (0.2) 1.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 1.7 Performance Measures FY 2010 Actual Number of projects and activities of each Tribal Liaison subcommittee advertised/publicized Number of meetings facilitated Arizona Commission of Indian Affairs FY 2011 Actual FY 2012 Expected FY 2013 Expected 10 7 8 8 22 24 20 20 FY 2013 Executive Budget Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 FY 2013 Expected Expected between stakeholders, tribal officials and state officials to communicate and/or collaborate on administrative and legislative issues The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Arizona Commission of Indian Affairs 117 ICA Industrial Commission of Arizona Mission: To efficiently administer and effectively enforce all applicable laws, rules, and regulations not specifically delegated to others relative to the protection of life, health, safety, and welfare of employees within the State. Description: The Industrial Commission is a regulatory agency that was created in 1925 to oversee the state workers' compensation system. While the Commission is still responsible for its original charge, its role over the years has expanded to include other labor-related issues, including minimum wage laws; occupational safety and health; youth employment laws; resolution of wage related disputes; licensing of employment counseling and talent agencies; vocational rehabilitation; and providing workers' compensation benefits to claimants of uninsured employers, insolvent carriers, and bankrupt self-insured employers. Agency - Approp. Funds 15,461.6 19,550.4 19,550.4 20,332.6 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 279.0 7,440.0 3,212.1 1,219.5 106.9 0.1 0.0 2,479.5 20.0 983.5 279.0 9,590.3 4,370.7 1,189.4 107.6 0.0 0.0 2,185.2 18.2 2,089.0 279.0 9,590.3 4,370.7 1,189.4 107.6 0.0 0.0 2,185.2 18.2 2,089.0 284.0 10,258.5 4,473.5 1,189.4 108.2 0.0 0.0 2,195.8 18.2 2,089.0 15,461.6 19,550.4 19,550.4 20,332.6 15,461.6 19,550.4 19,550.4 20,332.6 15,461.6 19,550.4 19,550.4 20,332.6 Agency - Approp. Funds Appropriated Fund Industrial Commission Administration Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Total Arizona Workforce (thousands) Federal Grant Industrial Commission Revolving Fund 3,500 3,000 2,500 Agency - Nonapp. Funds 2,000 Agency Total - All Funds 1,500 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,660.3 127.0 5,432.6 125.9 5,432.6 125.9 5,568.8 125.9 4,787.3 5,558.5 5,558.5 5,694.7 20,248.9 25,108.9 25,108.9 26,027.3 Federal Funds Expenditures - as reported by Agency 1,000 FY 2011 Actual 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 4,660.3 5,432.6 5,755.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. General Fund and Total Funds Expenditure Executive Appropriation Recommendations $ 25,000 FY 2013 Standard Adjustments $ 20,000 Retirement Standard Adjustment $ 15,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 10,000 $ 5,000 Industrial Commission Admin Fund $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Administration Claims Administrative Law Judge Labor ADOSH Special Fund Legal Counsel 118 36.4 FY 2011 Actual 2,793.8 2,965.1 4,555.0 661.6 2,975.2 732.9 777.9 FY 2012 Approp. 3,067.4 3,774.4 5,308.3 962.7 4,184.9 901.0 1,351.7 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,067.4 3,774.4 5,308.3 962.7 4,184.9 901.0 1,351.7 3,327.2 3,888.6 5,440.8 992.8 4,234.0 930.1 1,519.2 Health Insurance Rate Reduction 36.4 (121.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Industrial Commission Admin Fund Industrial Commission of Arizona (121.3) FY 2013 Executive Budget FY 2013 Other Adjustments SCF Arizona Privatization 285.8 Laws 2010, Chapter 268 privatized the State Compensation Fund (SCF) and required the Industrial Commission to adopt rules necessary to conform to the SCF’s termination. In addition to writing and adopting rules, the Commission must create a new self-insured employer assessment rate formula previously tied to SCF rates. Additionally, as of January 1, 2013, the Commission will be responsible for processing insolvent carrier claims and reporting Special Fund activity to the federal government. Those activities were previously performed by SCF. The Executive recommends an increase to the Commission's Administration Fund and an additional 5.0 FTE positions in order to accomplish these new responsibilities. At the time of publication, the Executive does not recommend an additional increase for the Information Technology elements of this proposal until a Project Investment Justification (PIJ) is submitted and approved. Industrial Commission Admin Fund 285.8 State Employee Pay Adjustment 581.3 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Industrial Commission Admin Fund 581.3 Performance Measures FY 2010 Actual Number of wage determinations issued Number of claims for workers' compensation processed Number of petitions for hearing received: workers compensation Number of hearings conducted by the administrative law judge division Number of injury reports reviewed Number of claims filed FY 2011 Actual FY 2012 Expected FY 2013 Expected 13,064 13,577 12,000 12,000 87,057 87,275 87,000 87,000 7,096 6,471 6,500 6,500 4,692 4,123 4,200 4,250 376 356 400 400 2,514 2,554 2,800 2,800 459 324 400 450 Number of health compliance inspections Number of safety compliance inspections Number of compliance referrals 820 571 600 1,000 3,615 2,046 2,400 2,500 Number of claimants contacted 1,934 1,287 2,200 2,200 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Industrial Commission of Arizona 119 IDA Department of Insurance Mission: To faithfully execute the state insurance laws in a manner that protects insurance consumers and encourages economic development. Description: The Department of Insurance licenses and authorizes the transaction of insurance business by insurers, producers, and other insurance-related entities regulated under A.R.S. § 20; monitors and promotes the financial safety and soundness of insurers transacting business in Arizona; oversees the rehabilitation, liquidation and performance of claims obligations of insolvent insurers; develops and makes insurance-related information publicly available; protects insurance consumers against unfair and illegal market practices; assists consumers with insurance-related questions and problems; investigates cases involving fraudulent insurance claims; oversees the development of the captive insurance industry; and annually collects over $400 million in insurance premium taxes and other revenues that benefit the General Fund. Fraud Investigation and Deterrence Licensing Premium Tax Collections and Analysis Agency - Approp. Funds 586.1 579.8 579.8 594.2 523.2 279.2 496.6 317.9 496.6 317.9 514.8 329.6 5,426.0 5,184.2 5,184.2 5,364.2 90.5 2,985.4 1,372.5 190.0 21.6 3.8 0.0 756.9 95.8 0.0 90.5 3,070.8 1,241.1 189.4 23.9 0.0 0.0 652.6 6.4 0.0 90.5 3,070.8 1,241.1 189.4 23.9 0.0 0.0 652.6 6.4 0.0 90.5 3,224.3 1,241.0 189.4 23.9 0.0 0.0 699.9 6.4 (20.7) 5,426.0 5,184.2 5,184.2 5,364.2 5,426.0 5,184.2 5,184.2 5,364.2 5,426.0 5,184.2 5,184.2 5,364.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds Total Producers Licensed on June 30 FY 2011 Actual 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Arizona Property & Casualty Insurance Guaranty Assessments Fund Captive Insurance Fund Federal Grant Financial Surveillance Fund Health Care Appeals Fund Insurance Examiners Revolving Life and Disability Insurance Guaranty Receivership Liquidation Agency - Nonapp. Funds $ 16,000 Agency Total - All Funds $ 14,000 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 608.0 578.1 578.1 589.1 141.2 144.8 245.3 372.2 229.6 5,024.0 133.1 192.6 341.0 265.1 244.1 5,380.6 137.0 175.8 1,072.9 305.8 244.4 5,464.1 141.5 191.0 29.1 315.9 249.6 5,511.0 1,134.7 1,144.8 1,144.8 1,151.6 44.3 46.3 43.8 45.4 7,944.1 8,325.7 9,166.7 8,224.3 13,370.1 13,509.9 14,350.9 13,588.5 Federal Funds Expenditures - as reported by Agency $ 12,000 FY 2011 Actual $ 10,000 $ 8,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 245.3 950.3 0.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 6,000 $ 4,000 $ 2,000 Executive Appropriation Recommendations $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Standard Adjustments Agency Summary - Appropriated Funds Program/Cost Center Policy and Administration Solvency Regulation Consumer Support 120 FY 2011 Actual 1,360.0 330.2 2,347.3 FY 2012 Approp. 1,384.1 258.7 2,147.1 FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,384.1 258.7 2,147.1 1,428.1 269.3 2,228.3 Retirement Standard Adjustment 11.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Department of Insurance 11.2 47.3 FY 2013 Executive Budget Performance Measures FY 2013 Rent Standard Adjustment FY 2010 Actual 47.3 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 47.3 Health Insurance Rate Reduction (43.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (43.4) Other Adjustments Eliminate Transfer 0.0 FY 2011 FY 2012 FY 2013 Actual Expected Expected 2 0 N/A N/A Number of new domestic receiverships No one can predict the number or timing of insurance company receiverships.  Average calendar days to complete an 59.7 66.6 100.0 125.0 investigation after receipt of complaint warranting an investigation measurement only includes complaints that were investigated and closed and excludes  The complaints that warrant investigation but cannot be investigated due to resource limitations. Average calendar days to complete 4.1 5.0 20.0 20.0 substantive review of Property and Casualty form filings Average days to complete substantive 7.9 5.0 15.0 15.0 review of file-and-use rate filings The Executive recommends a lump-sum appropriation to the agency. The Executive recommends eliminating the $300 fund transfer from the Receivership Liquidation Fund. While the amount is small, the Executive does not support this transfer, as the Fund holds private monies assigned to the Deputy Receiver to administer estates in receivership. Any monies not spent in administering the estates are refunded to the estates. AG Pro-Rata Appropriation (20.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (20.7) State Employee Pay Adjustment 185.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 185.6 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Percentage of insurance professionals 96.5 98.6 97.5 97.5 surveyed who reported they were "satisfied" or better with licensing services Percent of survey respondents 70.8 73.1 60.0 60.0 indicating satisfied or better with assistance rendered Average days to complete 135.0 169.8 350.0 350.0 investigation of insurer-referred cases for cases completed during the year for current and future years assume the Department will not be able to rehire any  Estimates special agents reduced in force because of FY 2009 budget reductions. Average Licensing Time Frames Days 3.4 2.0 3.5 3.5 required to render a decision on an insurance professional license application or renewal application from the date it was received Time Frame Days are the overall time frame days, as defined in A.R.S. § 41 Licensing 1072(2), minus the days that the overall time frame is suspended in accordance with A.R.S. § 41-1074(B). Percentage of employee separations 5.2 12.7 5.0 5.0 to average filled FTE positions Agency Operating Detail Department of Insurance 121 COU Judiciary Mission: To provide Arizona citizens with an independent, accessible, and integrated judicial system that maintains a high degree of public trust and confidence; serves as an asset by dispensing justice, resolving human disputes, and conducting its administrative functions in a fair, equitable, and just manner; and operates efficiently and expeditiously. Description: The Arizona Judicial Branch is an integrated, but decentralized, judicial system implementing its constitutional and statutory responsibilities throughout all levels of government - state, county, and city. The Judicial Branch consists of the Supreme Court, Court of Appeals, Superior Court, and limited jurisdiction (municipal and justice of peace) courts. The Arizona Constitution provides for the administrative supervision over all courts to rest with the Chief Justice of the Supreme Court. The Administrative Office of the Courts is charged with assisting the Chief Justice in discharging his/her administrative duties. The Arizona Judicial Council, created in 1990, assists the Supreme Court and the Chief Justice in developing and implementing policies and procedures designed to accomplish the integration of the court system pursuant to the Court's constitutional mandate. Special Note: The Judiciary has not submitted a request for appropriations for FY 2013. The Executive continues funding for the Judiciary in FY 2013 at the FY 2012 amount plus statewide adjustments. General Fund and Total Funds Expenditure Commission on Judicial Conduct State Aid County Reimbursement Automation Court of Appeals - Division I Court of Appeals - Division II Judicial Compensation Superior Adult Probation Services Superior Juvenile Probation Services - Superior Special Master - Superior Adult and Juvenile Drug Court JCEF Probation Agency - Approp. Funds FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Capital Outlay Debt Service Transfers Out $ 200,000 Appropriated Fund $ 180,000 $ 160,000 General Fund Supreme Court CJEF Disbursements Judicial Collection Enhancement Defensive Driving Fund Court Appointed Special Advocate Fund Confidential Intermediary Fund Drug Treatment and Education Fund Photo Enforcement State Aid to Courts Fund $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000 $0 Agency Summary - Appropriated Funds Program/Cost Center Justices and Support Supreme Administrative Supervision Supreme Regulatory Activities Supreme Court Assistance - Supreme Family Services - Supreme Judicial Nominations & Performance Review 122 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,525.1 4,422.3 4,422.3 4,525.6 9,461.5 5,690.3 5,690.3 5,750.8 855.5 1,127.0 1,127.0 1,155.9 2,808.5 6,879.0 423.1 3,020.1 7,445.7 417.2 3,020.1 7,445.7 417.2 3,018.3 7,542.7 425.8 506.8 506.8 520.9 7,076.5 187.9 11,493.3 10,241.8 5,904.8 187.9 14,409.1 9,591.2 5,904.8 187.9 14,409.1 9,591.2 5,907.0 187.9 14,399.0 9,797.3 4,452.1 4,195.1 4,195.1 4,268.4 7,337.3 7,390.2 7,390.2 7,324.5 26,254.2 27,208.9 27,208.9 27,269.3 48,544.6 50,881.8 50,881.8 50,956.8 20.0 1,013.6 20.0 1,013.6 20.0 1,013.6 20.0 1,013.6 3,487.7 5,028.9 5,028.9 5,027.7 145,569.7 148,460.9 148,460.9 149,111.4 439.4 26,438.3 9,695.6 641.9 293.0 19.0 65,725.7 4,073.1 115.0 46.2 8,618.1 29,903.9 439.4 27,039.7 9,522.6 348.9 392.3 27.2 74,891.9 2,787.9 0.0 0.0 3,858.6 29,591.8 439.4 27,039.7 9,522.6 348.9 392.3 27.2 74,891.9 2,787.9 0.0 0.0 3,858.6 29,591.8 439.4 27,893.9 9,403.3 348.9 392.3 27.2 74,891.9 2,703.5 0.0 0.0 3,858.6 29,591.8 145,569.7 148,460.9 148,460.9 149,111.4 113,033.3 6,350.9 108,785.2 9,891.6 108,785.2 9,891.6 109,402.1 9,894.6 16,223.0 18,816.8 18,816.8 18,796.1 1,954.1 1,860.7 4,120.2 2,923.8 4,120.2 2,923.8 4,138.5 2,939.3 309.6 478.8 478.8 494.9 500.0 500.0 500.0 500.0 2,688.5 2,649.6 0.0 2,944.5 0.0 2,944.5 0.0 2,945.8 145,569.7 148,460.9 148,460.9 149,111.4 Category Agency - Approp. Funds $ 140,000 $ 120,000 508.0 Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Adult Standard 13,459.1 13,521.5 13,521.5 13,549.9 Probation SLI Adult Intensive 10,723.4 10,737.7 10,737.7 10,760.4 Probation SLI Community Punishment 1,432.0 2,307.9 2,307.9 2,307.9 SLI Interstate Compact 639.7 641.8 641.8 651.0 Adult Probation Judiciary FY 2013 Executive Budget SLI Juvenile Standard Probation SLI Juvenile Intensive Probation SLI Juvenile Treatment Services SLI Family Counseling SLI Progressively Increasing Consequences (PIC-Act) SLI Juvenile Crime Reduction Fund 4,862.5 4,598.7 4,598.7 4,609.2 8,759.7 9,163.0 9,163.0 9,179.0 22,160.6 22,311.4 22,311.4 22,357.9 656.4 9,024.9 660.4 9,024.9 660.4 9,024.9 660.4 9,024.9 3,080.5 5,123.4 5,123.4 5,125.5 FY 2013 Rent Standard Adjustment (84.4) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (84.4) Health Insurance Rate Reduction Non-Appropriated Funds FY 2011 Actual Alternative Dispute Resolution Arizona Lengthy Trial Fund Community Punishment Program Fines Fund County Public Defender Training Fund Court Reporters Fund Drug Treatment and Education Fund Grants and Special Revenues Juvenile Delinquent Reduction Supreme Court CJEF Disbursements The State Aid to Detention Fund FY 2012 Exec. Rec. FY 2013 Exec. Rec. The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (252.1) Supreme Court CJEF Disbursements Fund (28.8) Judicial Collection - Enhancement Fund (64.7) Defensive Driving Fund (17.0) 154.4 455.7 455.7 459.8 602.3 9.5 972.5 100.0 972.5 100.0 973.1 100.0 671.5 710.0 710.0 710.4 112.4 3,386.4 123.2 3,784.8 123.2 3,784.8 127.3 3,803.7 14,816.2 23,826.4 23,826.4 24,012.1 (4,390.3) 1,682.5 1,682.5 1,676.3 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. 2,551.8 2,103.3 2,103.3 2,092.8 General Fund 11.6 15.0 15.0 15.0 17,925.8 33,773.4 33,773.4 33,970.4 163,495.5 182,234.3 182,234.3 183,081.8 Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan (370.8) Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Court Appointed Special Advocate Fund (4.3) Confidential Intermediary Fund (3.7) State Aid to Courts Fund (0.2) Other Adjustments State Employee Pay Adjustment FY 2013 Standard Adjustments Retirement Standard Adjustment 84.8 890.2 Supreme Court CJEF Disbursements Fund 27.3 Judicial Collection - Enhancement Fund 37.8 Defensive Driving Fund 30.3 Court Appointed Special Advocate Fund 17.0 Confidential Intermediary Fund 17.0 State Aid to Courts Fund Agency Total 3,856.5 3,803.7 2,842.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations 1,020.9 1.3 Performance Measures FY 2010 Actual Internal and external users connected to the Arizona Judicial Information Network Percent of all of the courts that have automated case and cash management systems Average days drug case processing FY 2011 Actual FY 2012 Expected FY 2013 Expected 7,841 7,600 7,500 7,500 100 100 100 100 136 148 135 133 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 63.2 Supreme Court CJEF Disbursements Fund 4.5 Judicial Collection - Enhancement Fund 6.2 Defensive Driving Fund 5.0 Court Appointed Special Advocate Fund 2.8 Confidential Intermediary Fund 2.8 State Aid to Courts Fund 0.2 Agency Operating Detail (84.4) Judiciary 123 DJA Department of Juvenile Corrections Mission: To enhance public protection by changing the delinquent thinking and behavior of juvenile offenders committed to the Department. Description: The Department is responsible for juveniles adjudicated delinquent and committed by the juvenile courts. The Department is accountable to the citizens of Arizona for the promotion of public safety through the management of the state's secure juvenile facilities and it provides services to juvenile offenders including rehabilitation, treatment and education. Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 6,508.4 1,033.9 280.8 5,985.3 1,000.9 299.6 5,985.3 1,000.9 299.6 4,694.8 1,000.9 117.0 54,945.5 50,590.0 48,990.0 47,647.6 51,191.0 527.7 46,729.8 528.4 45,129.8 528.4 44,356.5 528.4 2,128.2 1,098.6 2,233.2 1,098.6 2,233.2 1,098.6 1,664.1 1,098.6 54,945.5 50,590.0 48,990.0 47,647.6 Appropriated Fund General Fund Juvenile Corrections CJEF Distribution Juvenile Education Fund Endowments/Land Earnings Agency - Approp. Funds Non-Appropriated Funds Average Daily Population FY 2011 Actual 1,000 900 800 Department of Juvenile Corrections Fund Federal Grant Instructional Improvement Fund State Ed Sys for Committed Youth Class Statewide Donations 700 600 500 400 300 200 100 0 Agency - Nonapp. Funds FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 43.8 58.3 58.3 61.3 1,642.6 16.6 1,823.2 15.3 1,823.2 15.3 1,857.6 16.2 108.8 99.6 99.6 104.3 4.8 4.4 4.4 4.4 1,816.6 2,000.8 2,000.8 2,043.8 56,762.1 52,590.8 50,990.8 49,691.3 Federal Funds Expenditures - as reported by Agency FY 2011 Actual General Fund and Total Funds Expenditure $ 100,000 FY 2013 Exp. Plan Agency Total 1,674.0 1,690.4 1,546.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 90,000 $ 80,000 $ 70,000 $ 60,000 $ 50,000 Executive Appropriation Recommendations $ 40,000 $ 30,000 FY 2013 $ 20,000 $ 10,000 Standard Adjustments Retirement Standard Adjustment $0 Program/Cost Center Rehabilitation Housing Administration FY 2011 Actual FY 2012 Approp. 518.3 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Agency Summary - Appropriated Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 34,193.1 12,235.0 8,517.4 27,666.1 15,445.9 7,478.0 27,217.5 14,460.9 7,311.6 27,008.0 13,367.0 7,272.6 Agency - Approp. Funds 54,945.5 50,590.0 48,990.0 47,647.6 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others 996.7 29,349.7 14,964.6 2,131.2 618.6 3.5 54.8 0.0 876.0 27,044.7 13,347.2 2,263.9 569.7 3.2 75.5 0.0 876.0 25,939.7 12,852.2 2,263.9 569.7 3.2 75.5 0.0 820.0 26,144.1 12,778.4 2,263.9 569.7 3.2 75.5 0.0 124 FY 2012 Exp. Plan General Fund 489.8 State Education Fund for Committed Youth Fund Rent Standard Adjustment 28.5 (89.8) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (89.8) Health Insurance Rate Reduction (408.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (391.7) State Education Fund for Committed Youth Fund Department of Juvenile Corrections (17.2) FY 2013 Executive Budget Performance Measures FY 2013 Baseline Adjustments Catalina Mountain School Closure (3,800.0) The Executive recommendation annualizes the savings from the closure of Catalina Mountain School in FY 2012. General Fund Percent of youth showing progress in their primary treatment problem area FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 53 75 77 77 The Executive recommends a lump-sum appropriation to the agency. (3,800.0) Other Adjustments Align Appropriation with Revenue (662.9) State Education Fund for Committed Youth Fund (662.9) AG Pro-Rata Appropriation (182.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (172.5) State Education Fund for Committed Youth Fund (10.0) State Employee Pay Adjustment 1,683.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 1,590.9 State Education Fund for Committed Youth Fund 92.5 FY 2012 Supplemental Recommendations FY 2012 Catalina Mountain School Closure (1,600.0) On October 1, 2011, the Department closed the Catalina Mountain School. All of the youth housed at that facility and 68.0 of 129.0 FTE positions were transferred to Adobe Mountain School. The closure of Catalina Mountain will give all youth access to the treatment and educational services at Adobe Mountain and increase the Department’s efficiency. The Executive recommendation captures the savings from closing the school. General Fund (1,600.0) Performance Measures Percent of juveniles incarcerated within 12 months of release Number of escapes Average yearly cost per bed in secure care. Annual staff turnover rate FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 34 32 32 32 0 0 0 0 122,378 NA 310 310 20 14 20 20 Percent of staff indicating satisfaction NA with their jobs FY2011 Survey was not conducted by ADOA NA NA NA 79 80 80  Percent of youth passing the GED test. Agency Operating Detail 77 Department of Juvenile Corrections 125 LDA State Land Department General Fund and Total Funds Expenditure Mission: To manage State Trust lands and resources to enhance value and optimize economic return for the Trust beneficiaries, consistent with sound stewardship, conservation, and business management principles supporting socio-economic goals for citizens here today and generations yet to come. To manage and provide support for resource conservation programs for the well-being of the public and the State's natural environment. Description: The State Land Department was established in 1915 to manage the State Trust lands on behalf of the thirteen beneficiaries of that Trust, as established by the State Enabling Act and State Constitution. Each of the approximately 9.3 million acres of land is assigned to one of the beneficiaries, the largest of which is the state's common schools. The Department works to sustain the long-term value for the Trust's beneficiaries by administering, selling, and leasing the State's Trust lands and natural products. The Department also administers the State's Natural Resource Conservation District Program, which involves funding and technical assistance for 32 districts across the State. The Department provides navigability studies to the State's Navigable Streambed Adjudication Commission and staffs the Governorappointed State Land Board of Appeals. The Commissioner serves as the State Cartographer and the Surveyor-General and the Department provides statewide geological information system services including development and sharing of data layers through the Arizona Land Resources Information System program. Number of Leases 12,000 $ 60,000 $ 50,000 $ 40,000 $ 30,000 $ 20,000 $ 10,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Trust Management and Revenue Generation Outside Assistance and Grants FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 10,979.9 24,458.0 24,458.0 13,878.6 711.7 779.8 779.8 784.6 Agency - Approp. Funds 11,691.6 25,237.8 25,237.8 14,663.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 151.2 5,393.5 2,189.0 900.6 141.0 1.0 559.4 2,241.3 254.0 11.8 151.2 6,596.7 2,797.9 2,126.4 140.2 13.9 650.0 2,671.4 133.0 10,108.3 151.2 6,596.7 2,797.9 2,126.4 140.2 13.9 650.0 2,671.4 133.0 10,108.3 151.2 6,926.6 2,957.9 2,126.4 140.2 13.9 650.0 (8,393.1) 133.0 10,108.3 11,691.6 25,237.8 25,237.8 14,663.2 General Fund Environmental Special Plate Fund AZ Parks Board Heritage Fund Due Diligence Fund Trust Land Management Fund Risk Management Revolving Fund 3,275.1 172.5 1,231.8 260.0 1,231.8 260.0 13,903.2 260.0 (3.1) 0.0 0.0 0.0 0.0 8,247.1 500.0 13,357.6 500.0 13,357.6 500.0 0.0 0.0 9,888.4 9,888.4 0.0 Agency - Approp. Funds 11,691.6 25,237.8 25,237.8 14,663.2 Agency - Approp. Funds 11,500 FY 2011 Actual Appropriated Fund 11,000 10,500 10,000 9,500 9,000 8,500 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI CAP User Fees 481.1 481.2 481.2 481.2 Non-Appropriated Funds FY 2011 Actual Federal Economic Recovery Fund ISA Fund Land Federal Reclaim Trust Fund 126 State Land Department FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 498.5 867.2 867.2 871.9 89.3 31.7 33.8 20.0 33.8 20.0 35.7 20.0 FY 2013 Executive Budget Non-Appropriated Funds FY 2011 Actual Off-highway Vehicle Recreation Fund Resource Analysis Revolving Service Fees Increase Fund State Land Department Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 71.2 300.0 300.0 300.0 203.9 214.3 214.3 214.3 600.0 269.7 0.0 425.0 0.0 425.0 0.0 390.3 1,764.3 1,860.3 1,860.3 1,832.2 13,455.9 27,098.1 27,098.1 16,495.4 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 25.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Rent Standard Adjustment 25.0 State Employee Pay Adjustment 399.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 399.9 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Percent of agency staff turnover 14.8 5 10 10 Total expendable receipts, excluding interest on permanent fund and school leases (millions) Total annual revenue to permanent fund (millions) Percent increase in commercial leasing revenue In-house appraisal turnaround time (days from administrator request to receipt by section manager) 49.9 49.0 40.9 58.0 94.5 121.7 133.9 88.9 1 -12 -13 4 85 29 30 30 The Executive recommends a lump-sum appropriation to the agency with special line items. 898.5 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 898.5 Health Insurance Rate Reduction (77.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (77.0) Other Adjustments Funding: Move Risk Revolving to General Fund (11,821.0) In FY 2012, the Legislature funded the Department from Land Trust revenues, but Court decisions have barred the use of Trust Land revenues for the Department's operations. The disallowed appropriation from the Land Trust Management Fund was replaced by the Risk Management Revolving Fund for FY 2012. The Department may continue its appeal of the ruling. The Executive recommends a shift of $11.4 million from the Trust Land Management Fund to the General Fund. The recommendation also removes all appropriations from the Trust Land Management Fund and will direct all deposits from fees that are currently deposited into the Trust Land Management Fund into the General Fund plus any remaining balance. General Fund Trust Land Management Fund Risk Management Revolving Fund 11,425.0 (13,357.6) (9,888.4) 399.9 Agency Operating Detail State Land Department 127 LWA FY 2013 Law Enforcement Merit System Council Mission: To establish and administer an equitable compensation plan while providing oversight for the selection, retention, and disciplinary proceedings affecting employees of those agencies under the Council's jurisdiction. Description: The Law Enforcement Merit System Council is responsible for establishing a classification and compensation plan for all covered positions, a system of fair personnel policies, a system for performance appraisal, a system of procedures for hearings to handle employee grievances, and a plan for the conduct of hearings on appeal ordered by the DPS director. Standard Adjustments Retirement Standard Adjustment 0.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.1 Health Insurance Rate Reduction (0.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund General Fund and Total Funds Expenditure (0.7) Other Adjustments $ 90 AG Pro-Rata Appropriation $ 80 The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 70 $ 60 $ 50 (0.2) General Fund $ 40 (0.2) State Employee Pay Adjustment $ 30 $ 20 2.3 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 10 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund Performance Measures Agency Summary - Appropriated Funds Program/Cost Center Law Enforcement Merit System Council Agency - Approp. Funds FY 2011 Actual 68.1 FY 2012 Approp. 70.2 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 70.2 71.7 68.1 70.2 70.2 71.7 1.0 47.1 9.8 0.0 0.0 0.0 0.9 0.0 8.9 1.4 0.0 1.0 37.0 22.2 0.0 0.0 0.0 0.0 0.0 11.0 0.0 0.0 1.0 37.0 22.2 0.0 0.0 0.0 0.0 0.0 11.0 0.0 0.0 1.0 38.9 22.0 0.0 0.0 0.0 0.0 0.0 11.0 0.0 (0.2) 68.1 70.2 70.2 71.7 68.1 70.2 70.2 71.7 68.1 70.2 70.2 71.7 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations 2.3 FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Number of appeals/grievances filed 5 1 5 Number of appeal hearings conducted 3 3 4 4 Percent of employees receiving 16 9 10 discipline who file an appeal Average days from receipt of an 93 177 120 appeal/grievance until the Council issues a final order Rise in days to complete hearing due to Council short 1 member for 3 months. 10  Average cost of an appeal/grievance hearing (in dollars) Number of rehearing requests filed Number of classifications reviewed to determine proper job description and market value Number of position audits conducted to determine proper classification Number of job descriptions reviewed to determine suitability to classification Number of test plans reviewed for selection and promotional processes Number of covered employees dismissed 781 461 461 5 120 461 0 0 0 0 0 35 10 10 0 1 2 2 3 9 5 5 23 17 23 29 4 4 4 4 The Executive recommends a lump-sum appropriation to the agency. FY 2013 128 Law Enforcement Merit System Council FY 2013 Executive Budget AUA Other Operating Expenses Equipment Auditor General Mission: To improve state and local government operations and accountability by independently providing the Legislature, government decision-makers, and the public with timely, accurate, and impartial information; relevant recommendations; and technical assistance. Description: The Auditor General is appointed by the Joint Legislative Audit Committee and approved by a concurrent resolution of the Legislature. By law, the Auditor General is required to express an opinion on the financial statements of audited entities, and determine compliance with applicable federal and Arizona laws and conduct comprehensive performance evaluations of state agencies and the programs they administer. In addition, the Auditor General is required to conduct performance audits of school districts and monitor the percentage of dollars spent in the classroom. Beginning in fiscal year 2006-2007, the Legislature appropriated monies for the Auditor General to conduct performance and financial audits of English Language Learner programs. Special Note: The Auditor General has not submitted a request for appropriations for FY 2013. The Executive continues funding for the House in FY 2013 at the FY 2012 amount plus statewide adjustments. General Fund and Total Funds Expenditure $ 25,000 Agency - Approp. Funds 1,324.0 567.3 1,059.0 567.3 1,059.0 567.3 737.4 567.3 16,405.1 16,156.0 16,156.0 16,350.4 16,405.1 16,156.0 16,156.0 16,350.4 16,405.1 16,156.0 16,156.0 16,350.4 Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Audit Services Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,984.7 1,984.7 1,984.7 2,042.8 1,984.7 1,984.7 1,984.7 2,042.8 18,389.8 18,140.7 18,140.7 18,393.2 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 38.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 38.2 Rent Standard Adjustment (321.6) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund (321.6) Health Insurance Rate Reduction (126.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 20,000 $ 15,000 General Fund $ 10,000 (126.1) Other Adjustments State Employee Pay Adjustment $ 5,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 603.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 603.9 Agency Summary - Appropriated Funds Program/Cost Center Auditor General Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 16,405.1 16,156.0 16,156.0 16,350.4 16,405.1 16,156.0 16,156.0 16,350.4 199.4 10,065.1 3,654.3 499.1 290.8 4.5 0.0 199.4 10,065.1 3,670.2 499.1 290.8 4.5 0.0 199.4 10,065.1 3,670.2 499.1 290.8 4.5 0.0 199.4 10,568.4 3,682.9 499.1 290.8 4.5 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail Performance Measures Percentage of single audit reports accepted by cognizant agency Percentage of administrative recommendations implemented or adopted within two years for performance audits Percentage of single audit recommendations implemented or adopted within one year for financial audits Percentage of legislative Auditor General FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 100 100 100 100 98 99 90 90 55 60 65 65 67 100 60 60 129 Performance Measures FY 2010 Actual recommendations implemented or adopted within two years Percentage of staff turnover 130 FY 2011 Actual 8 8 FY 2012 FY 2013 Expected Expected 20 20 Auditor General FY 2013 Executive Budget HOA FY 2013 House of Representatives Mission: To serve the public by enacting laws that protect the public safety and welfare, to provide information to the public and to assist members of the public who contact their legislative representatives with questions, problems, or concerns. Description: The House of Representatives consists of 60 members elected by the public. Two members are elected from each of the 30 legislative districts in biennial elections. Members of the Legislature participate in activities related to the review and adoption of a wide range of topics that affect the citizens of Arizona. Members serve on standing committees, participate in interim projects and handle constituent concerns. Health Insurance Rate Reduction (127.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (127.7) Other Adjustments State Employee Pay Adjustment 451.6 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 451.6 Special Note: The House has not submitted a request for appropriations for FY 2013. The Executive continues funding for the House in FY 2013 at the FY 2012 amount plus statewide adjustments. General Fund and Total Funds Expenditure $ 14,000 $ 12,000 $ 10,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual House of Representatives Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 11,470.7 12,993.7 12,993.7 13,345.1 11,470.7 12,993.7 12,993.7 13,345.1 11,470.7 12,993.7 12,993.7 13,345.1 11,470.7 12,993.7 12,993.7 13,345.1 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 27.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 27.5 (127.7) Agency Operating Detail House of Representatives 131 JLA FY 2013 Joint Legislative Budget Committee Mission: To provide the Arizona Legislature with sound research, analysis, forecasts, and recommendations on state government finances and public policies; to provide the members with high quality work that is factually-based and delivered in a timely and professional manner, so they can make informed public policy decisions that are in the best interest of the citizens of Arizona. Standard Adjustments Description: The Joint Legislative Budget Committee (JLBC) Staff is a statutory agency in the legislative branch of Arizona State Government. The Governing Board is the 16-member Joint Legislative Budget Committee who appoints a Legislative Budget Analyst [Director] who is responsible for hiring other staff as authorized through the appropriations process. The office was established pursuant to A.R.S. § 41-1272 in 1966. Health Insurance Rate Reduction Special Note: JLBC has not submitted a request for appropriations for FY 2013. The Executive continues funding for JLBC in FY 2013 at the FY 2012 amount plus statewide adjustments. Retirement Standard Adjustment 6.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 6.5 (14.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (14.2) Other Adjustments State Employee Pay Adjustment 102.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 102.1 Joint Legislative Budget Committee FY 2013 Executive Budget General Fund and Total Funds Expenditure $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Joint Legislative Budget Committee Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 450.9 2,399.9 2,399.9 2,494.3 450.9 2,399.9 2,399.9 2,494.3 450.9 2,399.9 2,399.9 2,494.3 450.9 2,399.9 2,399.9 2,494.3 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 132 LCA FY 2013 Legislative Council Mission: To provide quality legal, research, computer and administrative services to the Arizona Legislature. Description: The Legislative Council staff performs the following core functions: drafting of legislative bills, memorials, resolutions, and amendments; review and possible revision of each legislative enactment for technical corrections prior to publication of the Arizona Revised Statutes; enrolling and engrossing of bills and processing of legislative journals; conducting legal research; and operating the legislative computer system. employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (26.8) Other Adjustments State Employee Pay Adjustment 165.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 165.9 Special Note: The Legislative Council has not submitted a request for appropriations for FY 2013. The Executive continues funding for the Legislative Council in FY 2013 at the FY 2012 amount plus statewide adjustments. General Fund and Total Funds Expenditure $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Legislative Council Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,914.0 4,654.1 4,654.1 4,803.7 3,914.0 4,654.1 4,654.1 4,803.7 3,914.0 4,654.1 4,654.1 4,803.7 3,914.0 4,654.1 4,654.1 4,803.7 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 10.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Health Insurance Rate Reduction 10.5 (26.8) The Executive recommendation includes a (13.2%) reduction in Agency Operating Detail Legislative Council 133 SNA FY 2013 Senate Mission: To serve the Arizona constituency through policy development and enactment of legislation in support of the public health, safety, and welfare. January 1, 2013. Description: The Arizona Senate consists of 30 elected members, one from each legislative district. Members are appointed to serve on Senate standing committees, as well as statutory and interim committees. They consider a variety of issues for the purpose of enacting legislation deemed necessary for the public interest. State Employee Pay Adjustment General Fund (73.6) Other Adjustments 309.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 309.4 Special Note: The Senate has not submitted a request for appropriations for FY 2013. The Executive continues funding for the Senate in FY 2013 at the FY 2012 amount plus statewide adjustments. General Fund and Total Funds Expenditure $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual Senate Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 6,932.5 7,985.2 7,985.2 8,240.1 6,932.5 7,985.2 7,985.2 8,240.1 6,932.5 7,985.2 7,985.2 8,240.1 6,932.5 7,985.2 7,985.2 8,240.1 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 19.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Health Insurance Rate Reduction 19.1 (73.6) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning 134 Senate FY 2013 Executive Budget LLA Department of Liquor Licenses and Control Mission: To license the liquor industry and assure compliance of liquor laws in the State of Arizona using education, knowledge, communication, collaboration, adjudication and enforcement that result in better health, safety and welfare of Arizona's citizens and their community. Description: The Department of Liquor Licenses and Control regulates all businesses dealing with spirituous liquor. The Department processes complaints, police reports, and civil violations regarding licensees. The Department investigates all allegations against licensees, whether criminal or civil, and in collaboration with the Attorney General's Office prosecutes before civil and criminal courts within the State. Further, the Department interacts with the Governor's Office of Highway Safety and the Driving Under the Influence Abatement Council to educate underage youth and reduce underage drinking. The Department meets on a regular basis with the Arizona Licensed Beverage Association, Arizona Beer and Wine Association, Arizona Grocers Association, Arizona Hotel and Motel Association, Arizona Restaurant Association and various civic organizations statewide. Finally, the Department is responsive to all Arizona citizens who are served and affected by the licensees. Number of Active Licenses Administration Investigations Licensing Agency - Approp. Funds 833.4 932.5 616.0 960.9 1,116.3 738.4 960.9 1,116.3 738.4 990.1 1,150.7 765.6 2,381.9 2,815.6 2,815.6 2,906.4 41.0 1,290.2 579.7 40.4 106.7 2.3 0.0 240.4 35.7 86.5 44.0 1,454.8 680.4 40.4 110.4 3.3 0.0 496.3 30.0 0.0 44.0 1,454.8 680.4 40.4 110.4 3.3 0.0 496.3 30.0 0.0 44.0 1,527.6 709.8 40.4 110.4 3.3 0.0 494.7 30.0 (9.8) 2,381.9 2,815.6 2,815.6 2,906.4 2,381.9 2,815.6 2,815.6 2,906.4 2,381.9 2,815.6 2,815.6 2,906.4 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund Liquor Licenses Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Attorney General AntiRacketeering Federal Grant Liquor License Special Collections FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 18.9 9.7 9.7 9.7 111.4 773.3 45.4 966.4 45.4 966.4 47.8 998.5 903.6 1,021.5 1,021.5 1,056.0 3,285.5 3,837.1 3,837.1 3,962.4 Agency - Nonapp. Funds 14,000 Agency Total - All Funds 12,000 Federal Funds Expenditures - as reported by Agency 10,000 FY 2011 Actual 8,000 6,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 111.4 0.0 0.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. 4,000 2,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Executive Appropriation Recommendations FY 2013 General Fund and Total Funds Expenditure Standard Adjustments $ 6,000 Retirement Standard Adjustment $ 5,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 4,000 $ 3,000 31.3 Liquor Licenses Fund 31.3 $ 2,000 Rent Standard Adjustment (1.6) $ 1,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Health Insurance Rate Reduction Agency Summary - Appropriated Funds Program/Cost Center Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. Liquor Licenses Fund FY 2013 Exec. Rec. (1.6) (17.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning Department of Liquor Licenses and Control 135 FY 2013 January 1, 2013. Liquor Licenses Fund (17.5) Other Adjustments AG Pro-Rata Appropriation (9.8) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Liquor Licenses Fund (9.8) State Employee Pay Adjustment 88.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Liquor Licenses Fund 88.4 Performance Measures FY 2010 Actual Percentage of liquor law compliance cases processed in less than 90 calendar days Average number of calendar days to complete an investigative complaint Number of new licenses, transferred licenses, and renewals issued Percent of surveyed licensees reporting very good or excellent service Number of investigations completed resulting in compliance actions Number of random liquor inspections completed FY 2011 Actual FY 2012 Expected FY 2013 Expected 90 98 95 95 25 30 35 35 12,707 13,281 13,500 13,500 88 87 85 85 688 754 750 750 2,712 2,098 2,500 2,500 The Executive recommends a lump-sum appropriation to the agency. 136 Department of Liquor Licenses and Control FY 2013 Executive Budget LOA Agency - Approp. Funds Arizona State Lottery Commission Mission: To support Arizona public programs by maximizing net revenue in a responsible manner. Description: The Arizona Lottery was established to maximize net revenue dedicated to various beneficiaries assigned through a statutory distribution formula. With an advisory commission and an Executive Director appointed by the Governor overseeing operations, the Lottery works with a retailer network to provide players with innovative, entertaining, and rewarding games. Total Combined Sales 77,656.6 86,848.8 86,579.1 87,501.2 77,656.6 86,848.8 86,579.1 87,501.2 77,656.6 86,848.8 86,579.1 87,501.2 Appropriated Fund Lottery Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Tickets 9,286.7 14,608.7 14,093.3 14,374.5 SLI Advertising 14,486.3 15,500.0 15,500.0 15,500.0 SLI On-Line Vendor Fees 7,735.7 7,054.7 8,132.6 8,107.1 SLI Retailer Commissions 38,954.1 39,159.1 40,246.9 40,709.9 SLI Sales Incentive Program 46.3 0.0 0.0 0.0 SLI Charitable Instant Tab 0.0 2,400.0 480.0 480.0 Commissions Non-Appropriated Funds 700,000,000 FY 2011 Actual 600,000,000 500,000,000 Lottery - Prize Fund Lottery Fund 400,000,000 300,000,000 Agency - Nonapp. Funds 200,000,000 Agency Total - All Funds 100,000,000 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 354,864.0 505,022.5 360,734.3 507,800.0 369,856.8 514,726.4 374,092.5 520,918.7 859,886.5 868,534.3 884,583.2 895,011.2 937,543.1 955,383.1 971,162.3 982,512.4 0 Executive Appropriation Recommendations FY 2013 Standard Adjustments General Fund and Total Funds Expenditure Retirement Standard Adjustment $ 250,000 17.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 200,000 $ 150,000 Lottery Fund $ 100,000 Health Insurance Rate Reduction 17.5 (62.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 50,000 $0 Lottery Fund Baseline Adjustments Agency Summary - Appropriated Funds Program/Cost Center Lottery FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 77,656.6 86,848.8 86,579.1 87,501.2 Agency - Approp. Funds 77,656.6 86,848.8 86,579.1 87,501.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 104.0 4,015.1 1,729.5 9,373.7 212.4 5.4 0.0 62,275.2 45.2 0.1 104.0 4,617.3 1,681.6 8,889.0 269.8 16.7 0.0 71,364.4 10.0 0.0 104.0 4,617.3 1,681.6 8,889.0 269.8 16.7 0.0 71,094.7 10.0 0.0 104.0 4,848.2 1,685.2 8,889.0 269.8 16.7 0.0 71,813.4 10.0 (31.2) Agency Operating Detail (62.5) Adjusted Revenue Estimates 449.0 The Lottery’s special line items for instant tickets, online vendor fees, retailer commissions, and charitable commissions have appropriations that are percentages of sales. As sales estimates change, the estimated appropriations must change accordingly. Lottery Fund 449.0 Other Adjustments AG Pro-Rata Appropriation (31.2) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Lottery Fund (31.2) Arizona State Lottery Commission 279.5 137 FY 2013 State Employee Pay Adjustment 279.5 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Lottery Fund 279.5 FY 2012 Supplemental Recommendations FY 2012 (269.7) Adjusted Revenue Estimates The Lottery’s special line items for instant tickets, online vendor fees, retailer commissions and charitable commissions have appropriations that are percentages of sales. As sales estimates change, the estimated appropriations must change accordingly. Lottery Fund (269.7) Performance Measures FY 2010 Actual Percent of retailers expressing overall satisfaction with Lottery services Percent of agency staff turnover FY 2011 Actual 97 96 7 FY 2012 Expected FY 2013 Expected 95 95 8 8 8 Dollar amount of instant ticket sales 336.9 374.5 (in millions) FY12-13 includes charitable instant tab sales estimate of $2.4M. 374.2 374.2 Dollar amount of on-line sales (in millions) Average dollar amount of sales per ticket vending machine. Percent of lottery ticket sales distributed to state beneficiaries Percent of active retailer accounts in good standing  214.6 209.1 219.8 219.8 156,100 165,200 168,000 170,000 25.7 25.1 25.2 25.2 99.9 99.8 99.4 99.5 The Executive recommends a lump-sum appropriation to the agency with special line items. 138 Arizona State Lottery Commission FY 2013 Executive Budget MEA Arizona Medical Board Mission: To protect public safety through the judicious licensing, regulation, and education of physicians and physician assistants. Description: The Agency staff supports two Boards – the Arizona Medical Board which licenses and regulates allopathic physicians, and the Arizona Regulatory Board of Physician Assistants which licenses and regulates physician assistants. The Agency processes applications for licenses, handles public complaints against licensees, and disseminates information pertaining to licensees and the regulatory process. The two Boards determine and administer disciplinary action in the event of proven violations of their respective practice acts. Together, the two Boards regulate over 22,000 licensees. Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 13.2 0.6 0.0 711.7 269.6 148.5 14.0 2.5 0.0 875.1 64.2 67.7 14.0 2.5 0.0 875.1 64.2 67.7 14.0 2.5 0.0 872.1 64.2 67.7 4,786.6 5,799.2 5,799.2 5,947.3 4,786.6 5,799.2 5,799.2 5,947.3 4,786.6 5,799.2 5,799.2 5,947.3 Appropriated Fund Medical Examiners Board Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Medical Examiners Board Fund Agency Total - All Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 117.6 0.0 0.0 0.0 117.6 0.0 0.0 0.0 4,904.2 5,799.2 5,799.2 5,947.3 Agency - Nonapp. Funds Number of Licenses FY 2012 Expend. Plan 25,000 Executive Appropriation Recommendations 20,000 FY 2013 15,000 Standard Adjustments 10,000 Retirement Standard Adjustment 10.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Medical Examiners Board Fund 10.5 Rent Standard Adjustment (3.0) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 6,000 $ 5,000 Medical Examiners Board Fund $ 4,000 (3.0) Health Insurance Rate Reduction $ 3,000 (25.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 2,000 $ 1,000 Medical Examiners Board Fund (25.7) $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 State Employee Pay Adjustment Agency Summary - Appropriated Funds Program/Cost Center Licensing, Regulation, & Rehabilitation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. Other Adjustments FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,786.6 5,799.2 5,799.2 5,947.3 4,786.6 5,799.2 5,799.2 5,947.3 39.0 2,194.2 810.9 621.0 16.9 58.5 2,752.6 1,000.7 999.4 23.0 58.5 2,752.6 1,000.7 999.4 23.0 58.5 2,890.2 1,014.2 999.4 23.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Medical Examiners Board Fund Agency Operating Detail 166.3 Performance Measures Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 166.3 FY 2010 Actual Average number of days to process an initial medical doctor license upon receipt of completed application Average number of days to process a medical doctor renewal upon receipt Arizona Medical Board FY 2011 Actual FY 2012 Expected FY 2013 Expected 2 2 2 2 2 2 2 2 139 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 FY 2013 Expected Expected of completed application Average number of days to complete 114 114 140 140 an medical doctor investigation Average number of days to complete 106 123 130 130 an physician assistant investigation Medical doctor cases referred to 14 23 20 20 formal hearing regulation requires that the Office of Administrative Hearings be utilized only when  Efficient statutorily mandated or when all other options have been exhausted. The Board can maintain its level of disciplinary actions through consent agreements without referring cases to formal hearing. Average number of days to resolve a 148 135 180 180 medical doctor case Average number of days to resolve a 142 153 180 180 physician assistant case Average score of agency-wide 7.8 7.8 7.5 7.5 customer service satisfaction surveys (scale of 1-8) The Executive recommends a lump-sum appropriation to the agency. 140 Arizona Medical Board FY 2013 Executive Budget MSA Board of Medical Student Loans Mission: The Board recruits physicians to provide service to rural and other medically underserved areas, medically underserved populations, and Indian reservations in Arizona, with the goal of increasing the number of physicians practicing in these areas by providing educational loans to students at colleges of medicine in Arizona. Description: The Board of Medical Student Loans provides financial assistance to medical students in Arizona, including tuition and a living allowance, through the Arizona Medical Student Loan Program. Participating schools include Midwestern University's AZ College of Osteopathic Medicine (AZCOM), the University of Arizona (UA) College of Medicine, and A. T. Still University's School of Osteopathic Medicine in Arizona (SOMA). The Board consists of eight members who review student applications and make decisions necessary for the operation of the program. The Medical Student Loan Program gives preference to medical students who have financial need and who demonstrate a commitment to practice medicine in Arizona in an eligible service area. Students must be Arizona residents and sign contracts to provide primary care in eligible service areas. The Board, however, may approve service in other specialties of recognized need in Arizona. Primary care includes Family Practice, general Pediatrics, Obstetrics and Gynecology; general Internal Medicine, and combined Medicine and Pediatrics. For each year of funding received, recipients must provide one year of service in a designated area, with a minimum two-year service commitment and a maximum of 5 years of funding. General Fund and Total Funds Expenditure $ 2,000 $ 1,800 $ 1,600 $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Medical Student Loan Program FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 360.7 87.2 87.2 0.0 360.7 87.2 87.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 360.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 87.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 87.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 360.7 87.2 87.2 0.0 General Fund Medical Student Loan Fund 360.7 0.0 67.0 20.2 67.0 20.2 0.0 0.0 Agency - Approp. Funds 360.7 87.2 87.2 0.0 Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund For 32 years, UA has provided staff at no charge to the Board to arrange Board meetings, prepare Board reports, collect repayments, coordinate service placement with the Arizona Department of Health Services (ADHS) and the Board, and prepare state budget requests. Since the program was opened to private colleges of medicine in 1999, Midwestern and in 2007, A. T. Still University, participate in the program. The UA College of Medicine and the two private schools provide services at no cost to publicize and coordinate the student application and interview process, coordinate the funding process, and track the participants. Executive Appropriation Recommendations FY 2013 Number of Students Funded 45 40 35 30 25 20 15 10 5 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Operating Detail Board of Medical Student Loans 141 FY 2013 Other Adjustments Eliminate Board of Medical Student Loans Appropriations (87.2) The Executive recommends eliminating the General Fund and Medical Student Loan Fund appropriations for the Board of Medical Student Loans. No current medical students or graduates under the program are expected to be affected by this reduction in appropriation, as the last currently funded student is set to graduate in May 2012. The Board plans to remain intact until its sunset date of July 1, 2017, to ensure that program graduates have completed their medical residency and service in a medically underserved area. The Executive recommends transferring the remaining balance and any future Medical Student Loan Fund revenues to the State Loan Repayment Program, which is administered by the Department of Health Services and serves a similar purpose by helping to repay student loans of qualifying physicians who serve in medically underserved designated areas. General Fund (67.0) Med Student Loan Fund (20.2) Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Loan provided to each public medical 42.4 45.6 0.0 0.0 school student (in thousands of dollars) amount covers tuition and $20,000 living allowance which assists in covering fees, books,  Loan supplies, medical equipment, licensing exams, transportation costs to hospitals and clinics, rent, utilities, food, health insurance, clothing, and miscellaneous expenses. Loan as a percent of average annual 94 94 0 0 cost of public medical education amount compared to the average Federal Financial Aid Cost of Attendance for a single  Loan student living off-campus and attending the UA College of Medicine. Administration as a per cent of total 0.0 0.0 0.0 0.0 cost appropriated funds are used to assist medical students; no funds are used for the  All administration of the program. The UA College of Medicine, Midwestern University, and A.T. Still University provide support services at no cost to the Board. Vital to the success of the program is the cooperation and assistance provided by the Arizona Department of Health Services. Board members serve with no compensation. Students funded per year 18 7 1 0 students sign contracts with the State of Arizona to serve as physicians in eligible  Medical service areas. The decrease in available funding will lead to fewer students in the program. The number of students funded will depend upon State appropriations and the number of public and private medical school students included. Due to the tuition differential, the loan amounts at private schools will fund fewer students. Physicians in service 16 16 20 27  Number of physicians serving their commitments during a given year. Physicians practicing in eligible 36 38 39 41 service areas after service requirement is met of physicians who have completed their commitments practicing in eligible service areas  Number during a given year. Percent of physicians who have 92 93 92 93 provided service in eligible sites of physicians who have signed contracts since October 1992 who have or are expected to  Percent provide service in eligible service areas. 142 Board of Medical Student Loans FY 2013 Executive Budget MIA State Mine Inspector Program/Cost Center Mission: To administer and enforce the Mining Code of the State of Arizona for the protection of the life, health and safety of mine employees and the public in Arizona's active, inactive and abandoned mines. Description: The State Mine Inspector is a statewide elected constitutional officer and the director of the Office of the State Mine Inspector. This office enforces statutes, rules and regulations applicable to mine safety, health, explosives and land reclamation. The Office inspects the health and safety conditions and practices at active mining operations; investigates mine accidents, employee and public complaints; and conducts federally-certified miner and instructor safety training. In 2007 the Office administered $14.5 million in reclamation financial assurance and enforces the Mined Land Reclamation laws, rules and regulations for the restoration of disturbed lands to a safe and stable environmental condition. The Office promotes public safety regarding abandoned mines by "Stay Out Stay Alive" promotions, presentations and publications; complaint investigations; mine owner compliance notifications; and identification, hazard assessment, prioritization, posting and securing of safety hazards. The office issues permits, licenses and certificates for elevators and electrical connections, and monitors the manufacturing, storing, selling, transferring and disposal of all explosives or blasting agents. FY 2011 Actual Mining Safety Enforcement Abandoned Mines Inventory Mined Land Reclamation Agency - Approp. Funds 900 800 997.5 188.3 112.5 1,039.5 192.9 112.5 1,129.0 1,298.3 1,298.3 1,344.9 14.0 503.8 210.7 89.2 89.9 5.5 0.0 173.4 53.8 2.8 14.0 551.5 241.9 66.8 120.7 20.0 0.0 289.4 6.5 1.5 14.0 551.5 241.9 66.8 120.7 20.0 0.0 289.4 6.5 1.5 14.0 576.5 240.4 66.8 120.7 20.0 0.0 316.2 6.5 (2.2) 1,129.0 1,298.3 1,298.3 1,344.9 1,104.6 24.4 1,185.8 112.5 1,185.8 112.5 1,232.4 112.5 1,129.0 1,298.3 1,298.3 1,344.9 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Aggregate Mining Reclamation Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan 169.0 53.9 0.0 53.9 381.2 229.3 229.3 234.8 455.0 452.2 452.2 288.7 1,584.0 1,750.5 1,750.5 1,633.5 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2013 Exec. Rec. 169.0 53.9 500 300 FY 2012 Exec. Rec. 15.3 58.5 600 400 FY 2013 Exec. Rec. 997.5 188.3 112.5 Agency - Nonapp. Funds 700 FY 2012 Exec. Rec. 937.0 167.6 24.4 Abandoned Mine Safety Federal Education and Training Fund Federal Grant Number of Safety Inspections Completed FY 2012 Approp. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 440.1 283.2 283.4 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations General Fund and Total Funds Expenditure FY 2013 $ 2,500 Standard Adjustments $ 2,000 Retirement Standard Adjustment 0.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 1,500 $ 1,000 General Fund 0.4 $ 500 Rent Standard Adjustment $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Agency Operating Detail 26.8 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund State Mine Inspector 26.8 (7.3) 143 FY 2013 Health Insurance Rate Reduction (7.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (7.3) Other Adjustments AG Pro-Rata Appropriation (3.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.7) State Employee Pay Adjustment 30.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 30.4 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 89 71 71 71 Percent mandated inspections completed Number of reportable (lost time) 191 185 185 mine accidents number of reportable (lost time) mine accident reflects " only" what is reported to the  The Arizona State Mine Inspector. Number of safety inspections 788 642 642 completed Number of abandoned mine 73 54 70 openings secured Secured on State Lands  Number of Arizona miners and contractors trained Number of annual mined land reclamation compliance reviews 185 642 70 4,565 4900 4400 4400 250 255 255 255 The Executive recommends a lump-sum appropriation to the agency. 144 State Mine Inspector FY 2013 Executive Budget MNA FY 2011 Actual Mines and Mineral Resources Mission: To promote and advocate the responsible development of mineral resources, in accordance with accepted principles of sustainable development, and provide pertinent data and support to those seeking to explore and develop mineral resources in the State of Arizona. Mines & Mineral Resources Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 982.2 0.0 0.0 0.0 982.2 0.0 0.0 0.0 2,607.3 0.0 0.0 0.0 Description: The Department of Mines and Mineral Resources (DMMR) promotes and advocates for the development of the mineral resources and industry in the state. This is accomplished by participating in conferences, seminars, news media, and other appropriate mechanisms. DMMR conducts studies of properties and claims to assist in the exploration and development of minerals and maintains a repository of mining and mineral information It monitors current mining and exploration activities and serves as a source of information for mineral information. General Fund and Total Funds Expenditure $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds FY 2011 Actual Program/Cost Center Mineral Development and Promotion Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,625.1 0.0 0.0 0.0 1,625.1 0.0 0.0 0.0 0.0 123.7 80.0 1.8 1.3 0.0 0.0 828.5 0.0 589.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,625.1 0.0 0.0 0.0 1,625.1 0.0 0.0 0.0 1,625.1 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Agency Operating Detail FY 2012 FY 2012 FY 2013 Mines and Mineral Resources 145 NBA Naturopathic Physicians Board of Medical Examiners Mission: To protect the health, safety and welfare of the public by regulating the practice of naturopathic medicine and massage therapy. Description: The agency regulates both naturopathic physicians and massage therapists, each overseen by a Governor-appointed board. The Naturopathic Physicians Medical Board regulates the naturopathic field of medicine, which uses various methods to treat patients including nutritional supplements, herbal medicine, homeopathy, pharmaceuticals, and lifestyle counseling. The Board regulates physicians who engage in the practice of naturopathic medicine, including certification of those in specialty practice. Further, the Board certifies graduates and medical students to engage in internship, preceptorship, and postdoctoral training programs and certifies medical assistants and approves clinical training programs for medical students. Finally, the Naturopathic Board certifies naturopathic physicians to dispense natural substances, drugs, and devices from their offices and conducts investigations and hearings into allegations of medical incompetence and unprofessional conduct. The Board of Massage Therapy regulates and licenses massage therapists by recognizing a national examination, establishing rules, and conducting investigations and hearings into allegations of incompetence and unprofessional conduct. Number of Naturopathic Medicine Licenses/Certificates Issued General Fund and Total Funds Expenditure $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Exec. Rec. FY 2013 Exec. Rec. Naturopathic Licensing and Regulation 589.2 586.0 586.0 611.7 Agency - Approp. Funds 589.2 586.0 586.0 611.7 7.0 310.8 92.5 92.6 1.8 1.8 0.0 83.6 4.3 1.8 7.0 347.3 102.4 70.0 1.8 0.0 0.0 60.0 4.5 0.0 7.0 347.3 102.4 70.0 1.8 0.0 0.0 60.0 4.5 0.0 7.0 364.7 104.4 70.0 1.8 0.0 0.0 66.3 4.5 0.0 589.2 586.0 586.0 611.7 589.2 586.0 586.0 611.7 589.2 586.0 586.0 611.7 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 1,400 Appropriated Fund 1,200 Naturopathic Board Agency - Approp. Funds 1,000 FY 2012 Approp. 800 Executive Appropriation Recommendations 600 FY 2013 400 Standard Adjustments 200 0 Retirement Standard Adjustment 1.3 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Naturopathic Board Fund 1.3 Rent Standard Adjustment 6.3 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Naturopathic Board Fund Health Insurance Rate Reduction 6.3 (3.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning 146 Naturopathic Physicians Board of Medical Examiners FY 2013 Executive Budget FY 2013 January 1, 2013. Naturopathic Board Fund (3.0) Other Adjustments State Employee Pay Adjustment 21.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Naturopathic Board Fund 21.1 Performance Measures FY 2010 Actual Massage therapy applications received for initial licensure and biennial renewal. Licensing began in FY05 FY 2011 Actual FY 2012 Expected FY 2013 Expected 4,940 4807 4800 4800 Average number of days to resolve a massage therapy complaint Active physician licenses 128 155 180 180 637 672 700 725 Complaints received against licensed or certified persons Complaints resolved in same fiscal year 20 28 28 28 12 16 16 16  The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Naturopathic Physicians Board of Medical Examiners 147 NSA Agency - Approp. Funds Arizona Navigable Stream Adjudication Commission 122.6 206.9 206.9 208.8 122.6 0.0 126.9 80.0 126.9 80.0 208.8 0.0 122.6 206.9 206.9 208.8 Appropriated Fund Mission: To determine which of Arizona's 39,039 rivers and streams were navigable at the time of statehood, February 14, 1912 and to determine the public trust values of those rivers and streams that were navigable. In addition, the Commission must defend appeals and other legal actions that are filed in State Court, and complete Commission reports to be recorded in each appropriate county following the appeals processes. Description: The State of Arizona did not determine ownership of and title to the beds of any of the 39,039 rivers and streams at the time of statehood and as a result, as many as 100,000 property titles remain clouded. Before ownership can be determined, it must be established if any of Arizona's waterways are navigable. This is because the portion of a streambed that is navigable is owned only by the State. The Commission is charged with gathering evidence, holding hearings, and making final determinations regarding navigability of the 39,039 streams and rivers in Arizona as of February 14, 1912. Barring court mandates for further action, the Commission's work is presently scheduled to be completed by June 30, 2016. General Fund Risk Management Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. IGA and ISA Between State Agencies 80.0 0.0 0.0 0.0 Agency - Nonapp. Funds 80.0 0.0 0.0 0.0 202.6 206.9 206.9 208.8 Agency Total - All Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.2 Rent Standard Adjustment General Fund and Total Funds Expenditure (0.2) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 250 General Fund (0.2) Health Insurance Rate Reduction (0.9) $ 200 $ 150 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 100 General Fund $ 50 Other Adjustments $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Additional Litigation Costs 0.0 The Exective recommends shifting the funding source for unplanned legal expenses from the Risk Management Fund to the General Fund. 122.6 206.9 206.9 208.8 General Fund Agency - Approp. Funds 122.6 206.9 206.9 208.8 Risk Management Fund Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 1.0 49.8 26.4 22.9 0.0 0.0 0.0 18.8 4.7 0.0 1.0 51.3 26.4 110.6 1.8 0.0 0.0 16.8 0.0 0.0 1.0 51.3 26.4 110.6 1.8 0.0 0.0 16.8 0.0 0.0 1.0 53.9 26.3 110.6 1.8 0.0 0.0 16.6 0.0 (0.3) Stream Adjudication 148 (0.9) 80.0 (80.0) AG Pro-Rata Appropriation (0.3) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund State Employee Pay Adjustment (0.3) 3.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Arizona Navigable Stream Adjudication Commission FY 2013 Executive Budget FY 2013 General Fund 3.2 Performance Measures FY 2010 Actual FY 2011 FY 2012 FY 2013 Actual Expected Expected 0 3 3 3 Number of Arizona rivers and streams adjudicated, including the necessity to alter and ratify remaining reports that comport with information requested by courts. of Arizona rivers and streams adjudicated, includes necessity to alter and ratify  Number remaining reports to comport with inforemation requested by the Courts. Number of final reports approved by 0 3 3 Commission 2 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Arizona Navigable Stream Adjudication Commission 149 BNA State Board of Nursing Mission: To protect the public health, safety, and welfare through the safe and competent practice of nurses and nursing assistants. Description: The State Board of Nursing protects the public by assuring that standards of practice are defined and that persons engaged in the practice of nursing are competent. It approves individuals for licensure, registration, and certification; approves educational programs for nurses and nursing assistants; investigates complaints concerning licensee and certificate holder compliance with the law; and determines and administers disciplinary actions in the event of proven violations of the Nurse Practice Act. Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 590.1 90.0 45.0 590.1 90.0 45.0 590.1 90.0 45.0 4,187.2 4,034.3 4,034.3 4,129.3 4,187.2 4,034.3 4,034.3 4,129.3 4,187.2 4,034.3 4,034.3 4,129.3 Appropriated Fund Nursing Board Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Federal Grant Statewide Donations Agency - Nonapp. Funds Agency Total - All Funds Total Licenses Issued 513.2 111.8 167.9 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 481.9 122.0 464.6 134.1 464.6 134.1 414.6 134.6 603.9 598.7 598.7 549.3 4,791.1 4,633.0 4,633.0 4,678.6 Federal Funds Expenditures - as reported by Agency FY 2011 Actual 40,000 35,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 481.9 464.6 414.6 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. 30,000 25,000 20,000 15,000 Executive Appropriation Recommendations 10,000 5,000 FY 2013 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Standard Adjustments Retirement Standard Adjustment 7.3 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund and Total Funds Expenditure $ 5,000 $ 4,500 Nursing Board Fund $ 4,000 $ 3,500 7.3 Health Insurance Rate Reduction $ 3,000 (28.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 2,500 $ 2,000 $ 1,500 $ 1,000 Nursing Board Fund $ 500 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (28.7) Other Adjustments State Employee Pay Adjustment Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation RN/LPN Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others 150 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,187.2 4,034.3 4,034.3 4,129.3 4,187.2 4,034.3 4,034.3 4,129.3 40.2 2,042.8 759.9 581.8 5.4 4.4 0.0 40.2 1,925.6 798.1 574.5 6.0 5.0 0.0 40.2 1,925.6 798.1 574.5 6.0 5.0 0.0 40.2 2,021.9 796.8 574.5 6.0 5.0 0.0 116.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Nursing Board Fund 116.4 Performance Measures Total licensees Registered Nurses and Licensed Practical Nurses Total complaints received Total individuals certified as nursing assistants Average calendar days from receipt of complaint to resolution State Board of Nursing FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 82,385 83,237 82,000 82,000 978 931 980 980 24,589 25,707 26,000 26,500 240 221 220 220 FY 2013 Executive Budget The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail State Board of Nursing 151 NCA Nursing Care Ins. Admin. Examiners Mission: To protect the health, welfare, and safety of Arizona citizens who seek and use the services of nursing care institution administrators and assisted living facility managers. Description: The Board evaluates applications from individuals seeking nursing home administrator licenses and assisted living facility manager certificates. The Board investigates the credentials and backgrounds of applicants, conducts examinations, and processes the applications. The Board also evaluates and processes applications for renewal of administrator licenses and manager certificates. Both administrators and managers are required by law to meet continuing education requirements. The Board approves continuing education programs and ensures that the requirements are met. The Board investigates complaints against administrators and managers received from citizens or the Department of Health Services. The Board imposes appropriate disciplinary action and enforces compliance with such discipline. The Board provides information to the public concerning applicants, licensees and certificate holders, and regulatory actions taken. All of these Board functions are accomplished through a fee-financed program of examination, licensure, and regulation. Number of Licenses Issued Licensing and Regulation 328.8 361.7 361.7 448.6 Agency - Approp. Funds 328.8 361.7 361.7 448.6 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 5.0 170.9 71.5 30.0 3.5 1.1 0.0 51.4 0.5 5.0 194.0 80.0 37.0 6.0 4.0 0.0 40.2 0.5 5.0 194.0 80.0 37.0 6.0 4.0 0.0 40.2 0.5 6.0 237.1 101.6 40.0 7.0 4.0 0.0 55.4 3.5 328.8 361.7 361.7 448.6 328.8 361.7 361.7 448.6 328.8 361.7 361.7 448.6 Agency - Approp. Funds Appropriated Fund Nursing Care Institution Administrators/ACHMC Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Nursing Care Institution Admin/ACHMC Fund 3,500 3,000 Rent Standard Adjustment 2,500 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 2,000 1,500 0.7 12.2 Nursing Care Institution Admin/ACHMC Fund 12.2 Health Insurance Rate Reduction (2.0) 1,000 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Nursing Care Institution Admin/ACHMC Fund General Fund and Total Funds Expenditure (2.0) $ 400 $ 350 $ 300 $ 250 $ 200 $ 150 $ 100 $ 50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center 152 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Nursing Care Ins. Admin. Examiners FY 2013 Executive Budget FY 2013 Other Adjustments New Training Programs - Regulatory Oversight 64.3 Laws 2011, Chapter 141 requires the Board to regulate and license assisted living facility training programs, previously approved by the Department of Health Services and licensed by the Private Postsecondary Education Board. The Executive recommends an increase of 1.0 FTE position responsible for approving and licensing assisted living facility training programs, including reviewing applications and making on-site visits for both approvals and renewals. The increase to the Board's fund will also support costs associated with implementing the new program, including rule-writing and equipment for the new employee. Nursing Care Institution Admin/ACHMC Fund 64.3 State Employee Pay Adjustment 11.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Nursing Care Institution Admin/ACHMC Fund 11.7 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Number of complaint and application 112 103 115 115 investigations conducted Number of new and existing licenses 2,996 3,114 3,200 3,250 Average calendar days to renew a license Customer satisfaction (scale of 1-8) 3 4 3 4 7.8 7.9 7.5 7.5 Administration as percent of total cost 4.3 5.2 5.3 5.4 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Nursing Care Ins. Admin. Examiners 153 OTA Board of Occupational Therapy Examiners Mission: To protect the health, safety, and welfare of the public by licensing and regulating individuals who provide occupational therapy services. Description: The Board of Occupational Therapy Examiners is a regulatory board that issues and renews approximately 1,800 licenses for occupational therapy professionals. By law, the Board requires that each applicant meet minimum standards of education, experience, and competency. The Board also receives and investigates complaints, takes appropriate disciplinary action, and responds to inquiries from consumers as to the license status of occupational therapy professionals. Number of Occupational Therapy Renewal Licenses Issued Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 0.0 0.0 34.5 1.2 200.3 0.0 0.0 38.6 0.0 0.0 0.0 0.0 38.6 0.0 0.0 0.0 0.0 38.6 0.0 0.0 362.3 161.6 161.6 166.1 Occupational Therapy Fund 362.3 161.6 161.6 166.1 Agency - Approp. Funds 362.3 161.6 161.6 166.1 Agency - Approp. Funds Appropriated Fund Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 1,400 1,200 Occupational Therapy Fund 1,000 0.4 800 Health Insurance Rate Reduction 600 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 400 200 (1.7) Occupational Therapy Fund 0 (1.7) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Other Adjustments State Employee Pay Adjustment General Fund and Total Funds Expenditure 5.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 300 $ 250 Occupational Therapy Fund 5.8 $ 200 Performance Measures $ 150 FY 2010 Actual $ 100 $ 50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Athletic Trainers Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 142.6 219.7 161.6 0.0 161.6 0.0 166.1 0.0 362.3 161.6 161.6 166.1 1.5 84.6 31.5 8.7 1.5 1.5 95.2 26.2 0.0 1.6 1.5 95.2 26.2 0.0 1.6 1.5 100.0 25.9 0.0 1.6 Number of occupational therapy complaints received Number of individuals licensed as occupational therapists Number of athletic training licenses issued Number of athletic training complaints received FY 2011 Actual FY 2012 Expected FY 2013 Expected 34 8 10 10 1,781 1076 1100 1200 63 589 500 500 14 2 1 1 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 154 Board of Occupational Therapy Examiners FY 2013 Executive Budget DOA Other Operating Expenses Equipment State Board of Dispensing Opticians Mission: To protect the visual health of the citizens of Arizona by regulating and maintaining standards of practice in the field of opticianry. 11.2 0.0 33.1 4.5 33.1 4.5 34.5 4.5 127.1 131.1 131.1 135.7 Dispensing Opticians Board Fund 127.1 131.1 131.1 135.7 Agency - Approp. Funds 127.1 131.1 131.1 135.7 Agency - Approp. Funds Appropriated Fund Description: The Board of Dispensing Opticians examines and licenses professionals to practice in the field of opticianry and licenses optical establishments. This Board is distinguished from the Board of Optometry, which regulates optometrists, whereas dispensing opticians fill orders for and fit persons with corrective eyewear. The Board of Dispensing Opticians accepts complaints against licensees, investigates allegations, and administratively adjudicates complaints. Number of Licensees 1,200 1,000 800 Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Dispensing Opticians Board Fund 0.2 Rent Standard Adjustment 1.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 600 400 Dispensing Opticians Board Fund 1.4 200 Health Insurance Rate Reduction (0.8) 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Dispensing Opticians Board Fund (0.8) $ 140 Baseline Adjustments $ 120 Continue One-Time Equipment Increase in FY 2013 Base $ 100 0.0 The Executive recommends continuing the increase of $4,500 added in FY 2012 to replace four obsolete lensometers that are used in the practical examination for dispensing optician licensees. The Board is in the process of replacing 12 lensometers over a period of three years. The continuation of this equipment increase will fund the second year of the replacement process. $ 80 $ 60 $ 40 $ 20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Other Adjustments Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. State Employee Pay Adjustment FY 2012 Exec. Rec. FY 2013 Exec. Rec. 127.1 131.1 131.1 135.7 127.1 131.1 131.1 135.7 1.0 59.8 25.2 24.0 6.7 0.2 0.0 1.0 61.9 26.9 0.5 4.2 0.0 0.0 1.0 61.9 26.9 0.5 4.2 0.0 0.0 1.0 65.0 27.0 0.5 4.2 0.0 0.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Dispensing Opticians Board Fund Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail 3.8 3.8 Performance Measures FY 2010 Actual Optician licenses issued 55 FY 2011 Actual FY 2012 Expected 64 Establishment renewal applications 333 311 processed Establishments are renewed June 30, so total carries over to next fiscal year FY 2013 Expected 60 65 365 370  State Board of Dispensing Opticians 155 Performance Measures FY 2010 Actual Complaints about licensees received and investigated Number of days from receipt of complaint until completion Number of days is an average of all complaints FY 2011 FY 2012 FY 2013 Actual Expected Expected 0 12 5 5 0 58 80 80  The Executive recommends a lump-sum appropriation to the agency. 156 State Board of Dispensing Opticians FY 2013 Executive Budget OBA Transfers Out State Board of Optometry Mission: To protect the health, safety, and welfare of Arizona citizens by regulating and achieving the highest standards in the optometry profession. Description: The Arizona State Board of Optometry examines, licenses, and regulates the profession of Optometric Doctors. In addition, the Board registers out-of-state replacement contact lens dispensers. The Board investigates complaints alleging violations of the Optometric Practice Act and takes administrative regulatory action when required. Number of Licensees 1,200 1,000 800 Agency - Approp. Funds 6.5 1.6 1.6 1.6 192.0 197.3 197.3 205.1 192.0 197.3 197.3 205.1 192.0 197.3 197.3 205.1 Appropriated Fund Board of Optometry Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Board of Optometry Fund 0.4 Rent Standard Adjustment 2.1 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 600 Board of Optometry Fund 400 200 2.1 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (1.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Board of Optometry Fund $ 250 (1.2) Other Adjustments $ 200 State Employee Pay Adjustment 6.5 $ 150 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Board of Optometry Fund $ 100 $ 50 6.5 Performance Measures FY 2010 Actual $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 192.0 197.3 197.3 205.1 192.0 197.3 197.3 205.1 2.0 105.0 38.9 22.6 0.7 0.3 0.0 18.0 0.0 2.0 108.0 40.0 24.0 2.0 5.0 0.0 16.7 0.0 2.0 108.0 40.0 24.0 2.0 5.0 0.0 16.7 0.0 2.0 113.4 40.3 24.0 2.0 5.0 0.0 18.8 0.0 Active licensees FY 2011 Actual FY 2012 Expected FY 2013 Expected 1,043 1048 1055 1055 Total number of complaints received 20 26 35 35 Total number of disciplinary actions 0 2 3 3 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency Operating Detail State Board of Optometry 157 IBA FY 2013 OSHA Review Board Mission: To be an independent body that adjudicates appeals of administrative law judge decisions regarding citations issued by the Arizona Division of Occupational Safety and Health, a division of the Industrial Commission. Description: The review board is an independent body and not directly a part of the Industrial Commission. The board consists of five members appointed by the Governor. One member shall be a representative of management, one member shall be a representative of labor and three members shall be representatives of the general public. The Industrial Commission is responsible for all budgetary actions, including providing administrative support. Other Adjustments Remove One-Time Funding (15.0) In FY 2012, the Board received $15,000 from the General Fund in non-lapsing appropriation authority to pay attorney fees in ADOSH cases. For FY 2013 the Executive recommends a ($15,000) decrease, since the Board will have sufficient non-lapsing spending authority available from the FY 2012 appropriation to carry operations through FY 2013. General Fund (15.0) The Executive recommends no appropriation for this agency. Per A.R.S. § 23-423, the review board hears and rules on appeals regarding administrative law judge decisions of contested Occupational Safety and Health inspections. All ADOSH cases start with an informal conference with the Industrial Commission's OSHA division director. If a case is not resolved, the cited employer can request a hearing before an Industrial Commission administrative law judge. If either the director of OSHA or the cited employer disagrees with the outcome of that ruling, that ruling can be appealed before the review board. The decisions of the review board can be appealed to the Court of Appeals. Agency Summary - Appropriated Funds Program/Cost Center Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 15.0 15.0 0.0 0.0 15.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 15.0 0.0 0.0 15.0 15.0 0.0 0.0 15.0 15.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 158 OSHA Review Board FY 2013 Executive Budget OSA Agency - Approp. Funds Arizona Board of Osteopathic Examiners Mission: To protect the public health and safety of people in the State of Arizona through the regulation of physicians licensed to practice osteopathic medicine and surgery in the State. Description: The Board of Osteopathic Examiners licenses and regulates osteopathic physicians in the State of Arizona. The Board is responsible for the licensure and regulation of osteopathic physicians and residents, the enforcement of standards of practice, and the review and adjudication of complaints. 640.7 698.3 698.3 718.2 640.7 698.3 698.3 718.2 640.7 698.3 698.3 718.2 Appropriated Fund Osteopathic Examiners Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.3 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Number of Licensees 3,000 Osteopathic Examiners Board Fund 1.3 2,000 Rent Standard Adjustment 2.1 1,500 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 2,500 1,000 Osteopathic Examiners Board Fund 500 2.1 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (3.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Osteopathic Examiners Board Fund $ 800 $ 700 (3.9) Other Adjustments $ 600 State Employee Pay Adjustment 20.4 $ 500 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 400 $ 300 Osteopathic Examiners Board Fund $ 200 $ 100 20.4 Performance Measures $0 FY 2010 Actual FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 640.7 698.3 698.3 718.2 Agency - Approp. Funds 640.7 698.3 698.3 718.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 6.7 297.9 104.2 93.7 0.0 0.8 0.0 104.0 30.6 9.5 6.7 335.7 108.4 99.0 1.0 3.0 0.0 104.7 36.0 10.5 6.7 335.7 108.4 99.0 1.0 3.0 0.0 104.7 36.0 10.5 6.7 352.5 109.4 99.0 1.0 3.0 0.0 106.8 36.0 10.5 Agency Operating Detail FY 2011 Actual FY 2012 Expected FY 2013 Expected Administration as percent of total cost 16 17 20 20 Customer satisfaction rating (1-8) 7.1 7.6 7.0 7.0 Average days to issue new license 68 60 70 70 2,426 2534 2,600 2,700 Complaints investigated 158 200 165 165 Average calendar days to resolve a complaint 378 382 360 360 Number of new and existing licenses The Executive recommends a lump-sum appropriation to the agency. Arizona Board of Osteopathic Examiners 159 PCA Parents Commission on Drug Education & Prevention Mission: To fund programs that increase and enhance parental involvement, and increase education about the serious risks and public health problems caused by the abuse of alcohol and controlled substances. Description: The Arizona Parents Commission on Drug Education and Prevention was created by voter initiative in 1996. It allocates funding for programs that will increase and enhance parental involvement and will increase education about the serious risks and public health problems caused by the abuse of alcohol and controlled substances. Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual Drug Treatment and Education Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,824.0 4,770.1 4,770.1 4,780.4 2,824.0 4,770.1 4,770.1 4,780.4 2,824.0 4,770.1 4,770.1 4,780.4 Performance Measures FY 2010 Actual Number of public education and awareness events sponsored by the Parents Commission. 160 76 FY 2011 Actual 879 FY 2012 Expected 900 FY 2013 Expected 900 Parents Commission on Drug Education & Prevention FY 2013 Executive Budget PRA State Parks Board General Fund and Total Funds Expenditure Mission: To manage and conserve Arizona's natural, cultural, and recreational resources for the benefit of the people, both in our parks and through our partners. Description: Arizona State Parks develops and manages 30 State parks and natural areas and provides safe and enjoyable facilities and programs for over 2.2 million visitors annually, 51% from out-ofstate. There are 65,000 acres of park property, 1,300 campsites and 8 historic parks. $ 90,000 $ 80,000 $ 70,000 $ 60,000 $ 50,000 $ 40,000 $ 30,000 $ 20,000 $ 10,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Other agency programs include the State Historic Preservation Office, which is responsible for the identification, evaluation and protection of Arizona’s prehistoric and historic heritage resources and compliance with federal and state laws. The agency coordinates two recreational trails programs; motorized and nonmotorized trail activities as well as administers the Off-Highway Vehicle (OHV) Program and OHV Recreation Fund. The agency distributes the Law Enforcement Boating Safety Fund grants to eligible county governments and manages the Growing Smarter State Trust Land Acquisition Grant program. The agency coordinates statewide resource planning, public involvement and educational opportunities through partnerships for public purposes. Arizona State Parks is comprised of the Director’s Office and three divisions: Parks, Partnerships and Administration. Arizona State Parks serves as an economic engine to the State of Arizona. Open parks support 3,300 jobs in communities. Total annual economic impact of Arizona State Parks is $266 million with direct expenditures by visitors calculated at $163 million. Federal, state and local tax generated by the 2.2 million visitors is $44 million. Rural economies depend on open state parks. Total Visitation 3,000,000 2,500,000 2,000,000 Agency Summary - Appropriated Funds Program/Cost Center Park Development and Operation Partnerships and Grants Administration FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 8,703.5 10,442.3 10,442.3 12,116.0 20,500.0 3,755.7 750.0 81.9 750.0 81.9 0.0 83.4 Agency - Approp. Funds 32,959.2 11,274.2 11,274.2 12,199.4 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 139.0 4,496.0 2,179.4 18.5 1.4 0.0 500.0 1,746.9 316.8 23,700.2 139.2 5,112.4 2,442.9 50.0 17.2 0.0 750.0 2,789.4 112.3 0.0 139.2 5,112.4 2,442.9 50.0 17.2 0.0 750.0 2,789.4 112.3 0.0 139.2 6,498.6 2,775.4 59.2 17.2 0.0 0.0 2,790.0 93.5 (34.5) 32,959.2 11,274.2 11,274.2 12,199.4 20,000.0 381.3 0.0 203.8 0.0 203.8 0.0 208.5 3,611.2 8,949.2 17.5 2,183.8 8,886.6 0.0 2,183.8 8,886.6 0.0 30.9 11,960.0 0.0 32,959.2 11,274.2 11,274.2 12,199.4 Agency - Approp. Funds Appropriated Fund General Fund Reservation Surcharge Revolving Fund Boating Safety Fund State Parks Enhancement Land Conservation Fund Agency - Approp. Funds 1,500,000 1,000,000 500,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Growing Smarter 20,000.0 0.0 0.0 0.0 Non-Appropriated Funds 0 FY 2011 Actual AZ Parks Board Heritage Fund Federal Grant Land Conservation Fund Off-Highway Vehicle Recreation Fund Partnership Fund Agency Operating Detail State Parks Board FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 5,663.7 0.0 0.0 (606.8) 2,003.0 44,221.6 2,364.8 4,357.1 40,050.0 3,076.9 4,357.1 40,050.0 3,076.9 4,393.6 40,899.2 3,109.4 595.7 644.8 644.8 664.5 161 Non-Appropriated Funds FY 2011 Actual Publications and Souvenir Revolving State Lake Improvement State Parks Donations Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. State Park Enhancement Fund, which is the main funding source for the State Parks Board. The Executive recommendation aligns with expected revenues and available balances. 365.5 319.8 319.8 324.3 8,220.3 228.1 6,316.5 96.6 6,316.5 96.6 5,867.8 97.4 63,662.7 54,861.7 54,861.7 54,749.3 Elimination of Enhancement Fund FRAT 96,621.9 66,135.9 66,135.9 66,948.7 A large portion of Arizona parks are on land owned not by the State, but by the federal government (e.g., Bureau of Land Management or U.S. Forest Service). The State’s agreement with the BLM and USFS requires all money earned through these parks to be reinvested in those parks and not used for other State purposes. For FY 2013, the Executive recommends that the $2.0 million fund transfer from the State Park Enhancement Fund not be continued. Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 2,002.9 4,447.8 1,652.3 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 60.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Reservation Surcharge Revolving Fund Boating Safety Fund State Parks Enhancement Fund Health Insurance Rate Reduction 2,820.4 Law Enforcement Boating Safety Fund Standard Adjustments Retirement Standard Adjustment State Parks Enhancement Fund 1.2 2.7 56.9 (72.6) 0.0 (2,168.1) To comply with Laws 2011, Chapter 333, which shifted control of the Law Enforcement Boating Safety Fund from the State Parks Board to the Treasurer's Office, the Executive recommends a ($2.2 million) decrease in the Park's appropriation in FY 2013. In FY 2012, part of the Fund was appropriated to the Parks Board for parks operations. Under the new law, the Treasurer will distribute grants from the Fund. The Executive recommendation aligns the use of the Fund with the new law. Boating Safety Fund (2,168.1) AG Pro-Rata Appropriation (34.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Reservation Surcharge Revolving Fund (2.0) Reservation Surcharge Revolving Fund (0.7) Boating Safety Fund (0.4) Boating Safety Fund (1.5) State Parks Enhancement Fund (70.2) Baseline Adjustments Consolidation of Kartchner Caverns State Park Line Item 0.0 The Executive recommends consolidating the Kartchner Caverns special line item with the Board's lump sum appropriation. State Employee Pay Adjustment 319.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Reservation Surcharge Revolving Fund 6.2 Boating Safety Fund 0.0 In recent years, the Board has received funding from multiple outside sources, including local governments and local law enforcement grants. The Executive recommendation for the Board focuses on fund sources that are intended for use by the parks. The FY 2013 recommendation maintains funding for the State parks at roughly the FY 2012 level. Increase to Enhancement Fund Appropriation (32.3) 14.4 State Parks Enhancement Fund Other Adjustments Move Toward Re-Establishing Self Funding Stability State Parks Enhancement Fund 2,820.4 298.6 Performance Measures Number of new acres of open space and parkland space purchased by State Parks or facilitated through its grant programs FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 0.0 0.0 0.0 0.0 The Executive recommends a lump-sum appropriation to the agency with special line items. The Executive recommends increasing the appropriation of the 162 State Parks Board FY 2013 Executive Budget PBA Appeals/Complaints Personnel Board Mission: To provide an efficient and impartial hearing process while carrying out the Board's statutory mandate to hear and review disciplinary appeals and whistleblower complaints filed by state employees, former state employees, and other individuals referenced in statute. Description: The Personnel Board is responsible for hearing and reviewing, via an administrative hearing process, appeals filed by state employees who have been dismissed from state service, suspended for more than 40 working hours, or demoted resulting from disciplinary action. The Board also hears and reviews complaints filed under the whistleblower statute. Under the direction of the presiding hearing officer, the proceedings are conducted on an informal basis through the taking of direct testimony, the cross examination of witnesses, and the admission of evidence. A record of the proceedings is taken and made available, upon request, to hearing officers, board members, and parties to the appeal. The hearing officer determines the facts based on the evidence presented and makes a recommendation regarding discipline to the Board. Board members are subsequently provided with case information so they may determine proper discipline. Number of Appeals/Complaints Filed 120 100 80 337.6 365.2 365.2 374.5 Agency - Approp. Funds 337.6 365.2 365.2 374.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 3.0 96.6 30.3 165.7 1.6 0.0 0.0 43.3 0.1 0.0 3.0 100.5 43.9 186.4 2.4 0.0 0.0 31.8 0.2 0.0 3.0 100.5 43.9 186.4 2.4 0.0 0.0 31.8 0.2 0.0 3.0 105.5 43.8 186.4 2.4 0.0 0.0 36.9 0.2 (0.7) 337.6 365.2 365.2 374.5 337.6 365.2 365.2 374.5 337.6 365.2 365.2 374.5 Agency - Approp. Funds Appropriated Fund Personnel Division Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Personnel Division Fund 0.4 Rent Standard Adjustment 5.1 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 60 Personnel Division Fund 40 Health Insurance Rate Reduction 20 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 5.1 (1.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Personnel Division Fund $ 400 Other Adjustments $ 350 AG Pro-Rata Appropriation (1.5) (0.7) $ 300 The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 250 $ 200 $ 150 Personnel Division Fund (0.7) $ 100 State Employee Pay Adjustment $ 50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Program/Cost Center Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Personnel Division Fund Agency Summary - Appropriated Funds 6.0 FY 2013 Exec. Rec. Personnel Board 6.0 Performance Measures 163 Performance Measures Number of appeals/complaints filed Average days from receipt of an appeal/complaint until the Board issues a final order Average cost of an appeal/complaint (dollars) Percent of customers rating overall hearing process as good to excellent FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 77 74 85 85 214 145 115 115 820 1,000 1,300 1,300 100 100 100 100 The Executive recommends a lump-sum appropriation to the agency. 164 Personnel Board FY 2013 Executive Budget SBA Non-Appropriated Funds Office of Pest Management Mission: To advocate and promote, through education, training and enforcement, the safe application of pest control technologies, which will result in the maximization of the health and safety of the residents of Arizona, and the protection of their property and the environment. Description: The Office of Pest Management licenses and regulates pest control companies, qualifying parties, and applicators; provides education and training to applicants and licensees; and provides education and information to the public regarding pest control activities in non-agricultural settings. FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 423.5 109.5 143.0 110.8 2,080.3 2,809.9 2,143.4 2,174.2 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 81.7 109.5 109.5 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments General Fund and Total Funds Expenditure Retirement Standard Adjustment $ 3,000 3.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 2,500 $ 2,000 Structural Pest Control Fund $ 1,500 3.4 Rent Standard Adjustment $ 1,000 (0.8) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 500 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Health Insurance Rate Reduction Agency Summary - Appropriated Funds Licensing and Regulation Agency - Approp. Funds Agency - Approp. Funds 2,700.4 2,000.4 2,063.5 1,656.8 2,700.4 2,000.4 2,063.5 Structural Pest Control Fund 40.0 1,051.2 485.7 13.4 29.8 0.7 7.6 0.0 68.4 0.0 40.0 888.4 432.1 79.9 15.0 0.0 1,110.8 0.0 146.8 27.4 40.0 888.4 432.1 79.9 15.0 0.0 410.8 0.0 146.8 27.4 30.0 792.6 302.2 79.9 15.0 0.0 700.4 0.0 146.0 27.4 1,656.8 2,700.4 2,000.4 2,063.5 1,656.8 2,700.4 2,000.4 2,063.5 1,656.8 2,700.4 2,000.4 2,063.5 FY 2012 Exec. Rec. FY 2013 Exec. Rec. Appropriated Fund Agency - Approp. Funds Pest Management Fund Realignment Federal Grant Service Fees Increase Fund Agency Operating Detail 81.7 341.8 FY 2012 Expend. Plan 109.5 0.0 FY 2012 Exec. Rec. 143.0 0.0 FY 2013 Exec. Rec. 110.8 0.0 (678.8) For FY 2013 the Executive recommends a ($678,800) reduction from the Structural Pest Control Fund to align its appropriation with expected revenues and expenditures. Structural Pest Control Fund State Employee Pay Adjustment (678.8) 53.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. 53.9 FY 2012 Supplemental Recommendations Non-Appropriated Funds FY 2011 Actual (14.6) Other Adjustments Structural Pest Control Fund Structural Pest Control (14.6) 1,656.8 FY 2012 Approp. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment (0.8) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. FY 2011 Actual Program/Cost Center Structural Pest Control Fund Pest Management Fund Realignment FY 2012 (700.0) For FY 2012 the Executive recommends a ($700,000) reduction from the Structural Pest Control Fund to align its appropriation with current revenues and expenditures. Office of Pest Management 165 FY 2012 Structural Pest Control Fund (700.0) Performance Measures Total inspections conducted (use and non-use). Total of all licenses issued. Total consumer and agency generated complaints. Average calendar days from receipt of complaint to resolution FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 4,008 3,706 2,000 2,000 9,745 9,925 9,500 9,500 128 76 80 80 180 212 200 190 The Executive recommends a lump-sum appropriation to the agency. 166 Office of Pest Management FY 2013 Executive Budget PMA Arizona State Board of Pharmacy Mission: To protect the health, safety and welfare of the citizens of Arizona by regulating the practice of pharmacy and the distribution, sale and storage of prescription medications and devices and nonprescription medications. Description: The Board of Pharmacy has four primary functions. The first is to issue licenses to pharmacists, pharmacy interns and pharmacy technicians. Additionally, it is responsible for issuing permits to pharmacies, manufacturers, wholesalers and distributors. The Board also conducts compliance inspections of permitted facilities, and investigates complaints and adjudicates violations of applicable state and federal laws and rules. Lastly, the Board promulgates and reviews state rules and regulations in regard to the industry. Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 1.0 92.6 205.7 20.7 0.0 1.0 92.6 222.5 22.0 250.0 1.0 92.6 222.5 22.0 250.0 1.0 92.6 261.8 22.0 250.0 1,649.9 1,918.1 1,918.1 2,007.9 1,649.9 1,918.1 1,918.1 2,007.9 1,649.9 1,918.1 1,918.1 2,007.9 Appropriated Fund Pharmacy Board Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Controlled Substance Prescription Monitoring Program Federal Grant Pharmacy Board Fund Agency Total - All Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 232.9 155.6 155.6 155.6 3.4 350.0 0.0 220.0 2.7 220.0 2.0 220.0 586.3 375.6 378.3 377.6 2,236.2 2,293.7 2,296.4 2,385.5 Agency - Nonapp. Funds Number of Licensees FY 2012 Expend. Plan 40,000 Executive Appropriation Recommendations 35,000 30,000 FY 2013 25,000 Standard Adjustments 20,000 Retirement Standard Adjustment 15,000 10,000 3.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Pharmacy Board Fund 3.5 Rent Standard Adjustment General Fund and Total Funds Expenditure 39.3 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 3,000 $ 2,500 Pharmacy Board Fund 39.3 Health Insurance Rate Reduction (9.0) $ 2,000 $ 1,500 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 1,000 $ 500 Pharmacy Board Fund (9.0) $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 State Employee Pay Adjustment Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. Other Adjustments FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,649.9 1,918.1 1,918.1 2,007.9 1,649.9 1,918.1 1,918.1 2,007.9 18.0 920.1 309.0 61.3 39.5 18.0 921.8 315.2 71.0 22.0 18.0 921.8 315.2 71.0 22.0 18.0 967.9 319.6 71.0 22.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Pharmacy Board Fund Agency Operating Detail 56.0 Performance Measures Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 56.0 FY 2010 Actual Total number of inspections conducted Arizona State Board of Pharmacy 1871 FY 2011 Actual 3,081 FY 2012 Expected 3,500 FY 2013 Expected 3,500 167 The Executive recommends a modified lump-sum appropriation to the agency. 168 Arizona State Board of Pharmacy FY 2013 Executive Budget PTA Board of Physical Therapy Examiners Mission: To process applications for licensure as a physical therapist and certification as a physical therapist assistant, and to enforce the statutory provisions of the Arizona Physical Therapy Practice Act for purposes of protecting the health, safety and welfare of the public from the incompetent, unethical and/or illegal practice of physical therapy. Description: The State Board of Physical Therapy licenses qualified physical therapists (PTs), certifies qualified physical therapist assistants (PTAs), registers physical therapy business entities, investigates and adjudicates complaints, assesses continuing competence, and enforces the standards of practice for the physical therapy profession. The Board regulates approximately 4,500 professionals licensed and certified to practice in the State. In addition, as of September 2011, the Board will regulate business entities that provide physical therapy services. The Board serves all citizens of and visitors to the state who receive physical therapy care by an Arizona licensed physical therapist or a certified physical therapist assistant. Number of Renewed Licenses 5,000 4,500 4,000 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 3.5 3.5 3.5 3.5 156.0 70.5 43.5 3.4 1.0 0.0 44.9 5.1 7.2 161.9 78.3 49.5 5.5 0.0 0.0 53.4 2.4 13.1 161.9 78.3 49.5 5.5 0.0 0.0 53.4 2.4 13.1 170.0 77.8 49.5 5.5 0.0 0.0 53.4 2.4 13.1 331.6 364.1 364.1 371.7 331.6 364.1 364.1 371.7 331.6 364.1 364.1 371.7 Appropriated Fund Physical Therapy Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Physical Therapy Fund 0.6 Health Insurance Rate Reduction 3,500 3,000 2,500 2,000 1,500 (2.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 1,000 500 0 Physical Therapy Fund FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (2.9) Other Adjustments State Employee Pay Adjustment 9.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund and Total Funds Expenditure $ 400 Physical Therapy Fund 9.9 $ 350 $ 300 Performance Measures $ 250 FY 2010 Actual $ 200 Total number of complaints received $ 150 $ 50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 69 FY 2012 Expected FY 2013 Expected 60 70 Number of new licenses or 402 348 330 certificates issued Number of licenses/certificates 20 4290 0 renewed FY 2012 estimate reflects that renewals will not begin until FY 2013 begins. 330  $ 100 45 FY 2011 Actual Total number of complaints received. 4400  Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds Agency Operating Detail FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 331.6 364.1 364.1 371.7 331.6 364.1 364.1 371.7 The Executive recommends a lump-sum appropriation to the agency. Board of Physical Therapy Examiners 169 PIA Arizona Pioneers' Home Mission: To provide a home for Arizona pioneers and disabled miners that delivers the optimal physical, emotional, and spiritual care in a homelike and compassionate environment. Quality of care is provided in a professional manner, protecting dignity and honoring the personal directives of each resident in life as well as death while considering the uniqueness of each individual. Description: The Arizona Pioneers' Home was established in 1909 by the Territorial government of Arizona as a home for the aged and infirm to repay the faithful and longtime Arizona residents who helped pioneer and build the state. It opened its doors in 1911. In 1929, the scope of the home was broadened to also be Arizona's hospital for disabled miners. The Arizona Pioneers' Home is a continuing care retirement home presently serving 108 Arizona pioneers and disabled miners. The Pioneers' Home employees provide direct nursing care, food service, activities, social services, housekeeping, laundry, maintenance, business and administrative services and support to the residents, and strive to meet state and federal nursing facility standards through modeling best practices. The Home is surveyed each year by the Arizona Department of Health Service's Office of Long Term Care. Agency - Approp. Funds 5,984.0 6,172.7 6,172.7 6,335.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Transfers Out 115.8 3,166.8 1,777.4 101.5 26.2 0.0 195.6 0.1 661.8 54.6 0.0 115.8 3,316.8 1,857.4 105.2 26.2 0.0 187.6 0.0 651.6 27.9 0.0 115.8 3,316.8 1,857.4 105.2 26.2 0.0 187.6 0.0 651.6 27.9 0.0 115.8 3,482.7 1,851.3 105.2 26.2 0.0 187.6 0.0 651.6 53.0 (22.4) 5,984.0 6,172.7 6,172.7 6,335.2 1,567.3 1,890.6 1,603.6 2,825.9 1,603.6 2,825.9 949.1 3,863.0 2,526.1 1,743.2 1,743.2 1,523.1 5,984.0 6,172.7 6,172.7 6,335.2 Agency - Approp. Funds Appropriated Fund General Fund Pioneers' Home State Charitable Earnings Pioneers' Home Miners' Hospital Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Prescription Drugs 126.9 200.0 200.0 200.0 Non-Appropriated Funds Average number of residents FY 2011 Actual 140 AZ Pioneers' Home - Mine Fund Employee Recognition Fund 120 100 80 Agency - Nonapp. Funds 60 Agency Total - All Funds 40 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3.7 55.0 1.4 1.4 5.7 5.7 5.7 5.7 9.4 60.7 7.1 7.1 5,993.4 6,233.4 6,179.8 6,342.3 20 Executive Appropriation Recommendations 0 FY 2013 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Standard Adjustments General Fund and Total Funds Expenditure Retirement Standard Adjustment 12.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 General Fund 6.1 Pioneers' Home State Charitable Earnings Fund 5.0 Pioneers' Home Miners' Hospital Fund 1.5 $ 2,000 Health Insurance Rate Reduction $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Arizona Pioneers' Home 170 FY 2011 Actual 5,984.0 FY 2012 Approp. 6,172.7 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 6,172.7 6,335.2 (60.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (19.3) Pioneers' Home State Charitable Earnings Fund (40.2) Pioneers' Home Miners' Hospital Fund Arizona Pioneers' Home (1.0) FY 2013 Executive Budget FY 2013 Other Adjustments Operating Funds 0.0 The operating budget for the Pioneers' Home depends primarily on two funds: the State Charitable Trust Fund and the Miners' Hospital Fund. Historically, when the two funds have not received enough revenue to cover the Pioneers' Home's operating costs, the General Fund has made up the difference. Current revenue projections of the State Charitable Trust Fund are high enough that the Executive recommends increasing its appropriation and decreasing the General Fund and Miners' Hospital Fund appropriations. General Fund (730.9) Pioneers' Home State Charitable Earnings Fund 974.1 Pioneers' Home Miners' Hospital Fund (243.2) Equipment Needs 25.1 The Executive recommends a one-time increase for the State Charitable Trust Fund to replace obsolete equipment, such as highlow beds and a patient powered lift, to improve patient care and comfort. Pioneers' Home State Charitable Earnings Fund 25.1 AG Pro-Rata Appropriation (22.4) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (10.8) Pioneers' Home State Charitable Earnings Fund (8.8) Pioneers' Home Miners' Hospital Fund (2.7) State Employee Pay Adjustment 207.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 100.4 Pioneers' Home State Charitable Earnings Fund 82.0 Pioneers' Home Miners' Hospital Fund 25.3 Performance Measures Residents rating of good or excellent (percent) Average census Number of citations from inspections Monthly cost per resident (in dollars) FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 97 99 98 98 111 105 110 10 0 6 115 4 4,585 4633.3 4,693.3 4,753.3 The Executive recommends a modified lump-sum appropriation to the agency with special line items. Agency Operating Detail Arizona Pioneers' Home 171 POA Aid to Others Other Operating Expenses Equipment Transfers Out State Board of Podiatry Examiners Mission: To protect the health, safety, and welfare of the public by regulating and maintaining standards of practice in the field of podiatric medicine. Agency - Approp. Funds 0.0 9.9 3.1 1.1 0.0 10.6 1.1 0.0 0.0 10.6 1.1 0.0 0.0 11.6 1.1 0.0 118.2 142.6 142.6 147.3 118.2 142.6 142.6 147.3 118.2 142.6 142.6 147.3 Appropriated Fund Description: The Board licenses and regulates doctors of podiatric medicine who specialize in the diagnosis and treatment of the foot, ankle, and lower leg. The Board evaluates the professional competency of podiatrists seeking to be licensed in the State of Arizona. Further, the Board promotes continued competency and fitness by investigating complaints made against practitioners, holding hearings, monitoring the activities of its licensees, and enforcing the standards of practice for the podiatric profession as set forth by law. Number of Licensees 450 Podiatry Examiners Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Podiatry Examiners Board Fund 0.2 Rent Standard Adjustment 1.0 400 350 300 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 250 200 150 100 50 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Podiatry Examiners Board Fund 1.0 Health Insurance Rate Reduction (0.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Podiatry Examiners Board Fund $ 140 Other Adjustments $ 120 State Employee Pay Adjustment $ 100 (0.4) 3.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 80 Podiatry Examiners Board Fund $ 60 3.9 $ 40 Performance Measures $ 20 FY 2010 Actual $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 118.2 142.6 142.6 147.3 118.2 142.6 142.6 147.3 1.0 61.7 18.8 22.3 1.3 0.0 1.0 64.9 20.8 42.3 2.9 0.0 1.0 64.9 20.8 42.3 2.9 0.0 1.0 68.1 21.3 42.3 2.9 0.0 FY 2011 Actual FY 2012 Expected FY 2013 Expected Number of complaints received 40 37 45 Number of investigations concluded 23 21 40 40 382 381 385 385 Number of licensees 45 The Executive recommends a lump-sum appropriation to the agency. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State 172 State Board of Podiatry Examiners FY 2013 Executive Budget PEA Commission for Postsecondary Education Mission: To expand access and increase success in postsecondary education for Arizona citizens. Description: The Arizona Commission for Postsecondary Education (ACPE), is comprised of 16 Commissioners representing all sectors of postsecondary education including public universities, private universities, proprietary degree-granting institutions, independent colleges, career schools, and public community colleges. The Commission provides a forum for all sectors of higher education to dialogue, partner, and resolve issues of mutual interest. ACPE administers the Arizona Family College Savings Program, and provides information to students and families to plan for, transition into, and succeed in postsecondary education through a variety of educational programs and publications. Total 529-Plan Assets Under Management General Fund and Total Funds Expenditure $ 10,000 $ 9,000 $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Postsecondary Commission 4,097.2 5,237.9 3,037.6 12,993.7 Agency - Approp. Funds 4,097.2 5,237.9 3,037.6 12,993.7 5.0 126.5 55.9 27.7 1.0 0.0 2,300.2 18.4 0.0 0.0 1,567.5 5.0 145.5 66.4 182.8 1.1 0.0 2,335.8 113.1 0.0 2,151.5 241.7 5.0 134.5 60.7 182.8 1.0 0.0 2,335.8 97.2 0.0 0.0 225.6 6.5 241.8 93.7 192.8 1.0 0.0 12,185.8 103.6 0.0 0.0 175.0 4,097.2 5,237.9 3,037.6 12,993.7 1,220.8 2,876.4 1,396.8 3,841.1 1,396.8 1,640.8 11,396.8 1,596.9 4,097.2 5,237.9 3,037.6 12,993.7 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Debt Service Transfers Out 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 0 Agency - Approp. Funds Total Number of Scholarships, Grants, Loans Appropriated Fund General Fund Postsecondary Education Fund 8,000 7,000 Agency - Approp. Funds 6,000 5,000 4,000 3,000 2,000 1,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Family College Savings 153.0 148.6 49.6 0.0 Program SLI Minority Education 13.5 99.9 99.9 100.3 Policy Analysis Center SLI College and Career 0.1 21.2 21.2 21.3 Guide SLI College Goal Sunday 28.7 130.5 130.5 130.8 (Twelve Plus Partnership) SLI Leveraging Educational 3,613.0 4,264.5 2,319.5 2,319.5 Assistance Partnership (LEAP) Non-Appropriated Funds FY 2011 Actual Early Graduation Scholarship Fund Family College Savings Program Trust Fund Agency Operating Detail Commission for Postsecondary Education FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 75.2 77.3 77.3 77.8 149.6 351.5 351.5 361.2 173 Non-Appropriated Funds FY 2011 Actual Federal Grant Mathematics, Science and Special Education Teacher Student Loan Fund Postsecondary Education Fund Postsecondary Education Grant Program Postsecondary Education Voucher Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 125.2 0.0 1,200.0 498.4 1,200.0 476.8 1,202.0 177.8 0.0 52.7 52.7 53.5 0.0 2.0 2.0 2.0 7.0 2.0 2.0 2.0 356.9 2,183.9 2,162.3 1,876.2 4,454.1 7,421.8 5,199.9 14,869.9 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 1,350.5 1,200.0 1,200.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Health Insurance Rate Reduction Retirement Standard Adjustment (2.6) 0.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Postsecondary Education Fund 0.6 (2,101.3) The Executive recommends reducing the Commission’s appropriation from the Postsecondary Education Fund due to a reduction in revenue estimates. By far, the largest loss in revenues was the loss of federal Leveraging Education Assistance Partnerships (LEAP) funding in FY 2011. While the Commission has since created a new LEAP program with the State’s appropriation and matching institutional funds, the loss of federal funding resulted in a loss of 1,100 grants (approximately 30%) to Arizona students. Postsecondary Education Fund Family College Savings Program Trust Fund Other Adjustments SMART Scholarships for Community College Students 10,000.0 While the Arizona economy is recovering and creating more jobs, the job skills of thousands of Arizonans are poorly matched with the needs of potential employers. As a result, many Arizona companies are hiring workers from out-of-state while thousands of Arizonans remain unemployed or underemployed. To help address this issue, the Executive recommends $10.0 million to the Commission for Postsecondary Education for SMART scholarships for Arizona community college students. SMART (Skills Maximization and Alignment through Retraining and Transitioning) scholarships are designed to allow Arizonans with work experience to retrain and transition into needed fields by completing a program or certification at a community college. To qualify, students must be enrolled in one of the top 20 community college programs that the Local Workforce Investment Board has determined best meet local workforce needs. In addition, students must show they have at least two years of fulltime work experience and qualify for need-based financial aid. (For veterans, the need-based aid requirement is waived.) SMART scholarships will pay the cost of tuition up to $2,000 per year for up to two years. The Commission may use up to 1.5% of the appropriation, or $150,000, to pay for the program’s operational costs. 10,000.0 AG Pro-Rata Appropriation (1.0) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Postsecondary Education Fund (1.0) State Employee Pay Adjustment 8.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Postsecondary Education Fund 8.8 (2,101.3) (148.6) Since FY 2011, all of the provider fees and administrative costs of the Family College Savings Program have been transitioned from 174 (148.6) General Fund Baseline Adjustments Lost Federal Funds Postsecondary Education Fund (2.6) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Postsecondary Education Fund the Postsecondary Education Fund to the Family College Savings Program Trust Fund. In FY 2012, all remaining applicable FY 2011 revenues were transferred to the Family College Savings Program Trust Fund, and the Executive recommends eliminating the special line item appropriation for this program. FY 2012 Supplemental Recommendations FY 2012 Lost Federal Funds Commission for Postsecondary Education (2,101.3) FY 2013 Executive Budget FY 2012 The Executive recommends reducing the Commission’s appropriation from the Postsecondary Education Fund due to a reduction in revenue estimates. By far, the largest loss in revenues was the loss of federal Leveraging Education Assistance Partnerships (LEAP) funding in FY 2011. While the Commission has since created a new LEAP program with the State’s appropriation and matching institutional funds, the loss of federal funding resulted in a loss of 1,100 grants (approximately 30%) to Arizona students. Postsecondary Education Fund (2,101.3) Family College Savings Program Trust Fund (99.0) Since FY 2011, all of the provider fees and administrative costs of the Family College Savings Program have been transitioned from the Postsecondary Education Fund to the Family College Savings Program Trust Fund. In FY 2012, all remaining applicable FY 2011 revenues were transferred to the Family College Savings Program Trust Fund. The Executive recommends reducing the Family College Savings Program’s appropriation from $148,600 to $49,600 to reflect the amount of the actual transfer. Postsecondary Education Fund (99.0) Performance Measures Number of LEAP student awardees Percent of good or excellent service via evaluation surveys Number of Arizona Education Loan Program student borrowers Number of Postsecondary Education Financial Assistance Program student awards Number of Arizona Family College Savings Program accounts Number of Arizona College & Career Guides distributed Attendees at College Goal Sunday FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 3,043 3,339 2,800 2,800 89 89 90 90 219,005 N/A N/A N/A 161 0 0 0 55,000 60,540 63,000 66,000 12,000 0 15,000 15,000 3,437 2,038 3,000 3,000 The Executive recommends a lump-sum appropriation by program with special line items. Agency Operating Detail Commission for Postsecondary Education 175 PAA Power Authority Mission: To responsibly administrate the Hoover Power allocation to the State of Arizona. In fulfilling this responsibility, the Power Authority strives to be an active leader in managing electric resources in a safe and environmentally prudent manner, and to provide active representation on behalf of the State of Arizona at federal, state, and local forums on issues that impact the public power community as a whole and issues that specifically involve Arizona and the Authority’s power resources. Description: The Arizona Power Authority (APA) manages Arizona’s allocation of hydroelectric power from the Hoover Dam for the overall benefit of the State. The APA cooperates with federal, state, and non-governmental agencies to address regulatory, environmental, and other matters that impact electric power and water uses of the Colorado river. In addition, the APA serves as an information resource for its customers on topics that impact their electric resources and the utilization of these resources. The Authority may also pursue generation and/or transmission projects that are within the APA’s legislative mandate and are in the best interest of the State of Arizona. Agency Summary - Appropriated Funds Non-Appropriated Funds FY 2011 Actual APA - General Fund Fund Deposits Interest Income Agency - Nonapp. Funds Agency Total - All Funds 176 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 4,320.4 33,182.4 18.8 4,201.3 34,942.5 21.8 4,201.3 34,942.5 21.8 4,201.3 34,931.7 21.8 37,521.6 39,165.6 39,165.6 39,154.8 37,521.6 39,165.6 39,165.6 39,154.8 Power Authority FY 2013 Executive Budget PVA State Board for Private Postsecondary Education Mission: To protect the health, safety, and welfare of the public by regulating private postsecondary educational institutions and providing services to their students. Other Operating Expenses Equipment Agency - Approp. Funds 42.9 0.5 37.3 5.8 37.3 5.8 40.7 5.8 318.4 326.6 326.6 338.8 318.4 326.6 326.6 338.8 318.4 326.6 326.6 338.8 Appropriated Fund Private Postsecondary Education Description: The Board licenses and regulates 252 private postsecondary educational institutions who serve approximately 780,000 students annually. The Board determines compliance, investigates complaints and violations, and takes disciplinary action. The Board also administers the Student Tuition Recovery Fund, which provides financial restitution to students injured by private postsecondary institutional closures and provides students access to their educational records. Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Student Tuition Recovery Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 89.4 92.5 98.0 100.8 89.4 92.5 98.0 100.8 407.8 419.1 424.6 439.6 Executive Appropriation Recommendations Institutions Licensed FY 2013 300 Standard Adjustments 250 Retirement Standard Adjustment 200 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 150 100 50 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure 0.7 Private Postsecondary Education Fund 0.7 Rent Standard Adjustment 3.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Private Postsecondary Education Fund $ 700 3.4 Health Insurance Rate Reduction $ 600 (3.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 500 $ 400 Private Postsecondary Education Fund $ 300 $ 200 Other Adjustments $ 100 State Employee Pay Adjustment $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 318.4 326.6 326.6 338.8 318.4 326.6 326.6 338.8 4.0 176.5 80.8 17.4 0.3 0.0 0.0 4.0 184.5 69.6 27.4 2.0 0.0 0.0 4.0 184.5 69.6 27.4 2.0 0.0 0.0 4.0 193.7 69.2 27.4 2.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail 11.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Private Postsecondary Education Fund Agency Summary - Appropriated Funds Program/Cost Center (3.1) 11.2 Performance Measures Average number of calendar days to pay claims Customer Satisfaction Survey (scale of 1-8) Number of non-student complaints investigated Total number of institutions licensed Total number of renewal licenses approved State Board for Private Postsecondary Education FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 60 58 60 60 8. 7.5 7.9 7.9 9 11 15 15 242 252 236 246 230 223 226 236 177 Performance Measures Number of annual inspections conducted Number of students enrolled Number of annual student complaints investigated FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 22 25 25 25 593,926 779,042 880,000 990,000 12 12 15 15 The Executive recommends a lump-sum appropriation to the agency. 178 State Board for Private Postsecondary Education FY 2013 Executive Budget SYA Equipment State Board of Psychologist Examiners Mission: To protect the health, safety, and welfare of Arizona citizens by regulating the professions of psychology and behavior analysis. Description: The State Board of Psychologist Examiners licenses and regulates professionals to practice in the fields of psychology and behavior analysis. The Board accepts complaints against licensees, investigates allegations, and administratively adjudicates complaints. The Board serves psychologists and behavior analysts licensed to practice in the State, as well as all Arizona citizens who receive these professional services. Agency - Approp. Funds 2.6 5.7 5.7 5.7 315.8 344.0 344.0 357.2 315.8 344.0 344.0 357.2 315.8 344.0 344.0 357.2 Appropriated Fund Psychologist Examiners Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Number of Licensees 1,950 1,900 1,850 1,800 1,750 1,700 1,650 1,600 1,550 1,500 1,450 1,400 Psychologist Examiners Board Fund 0.7 Rent Standard Adjustment 3.9 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Psychologist Examiners Board Fund 3.9 Health Insurance Rate Reduction FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (2.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Psychologist Examiners Board Fund $ 400 $ 350 Other Adjustments $ 300 State Employee Pay Adjustment $ 250 (2.4) 11.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 200 $ 150 Psychologist Examiners Board Fund $ 100 $ 50 11.0 Performance Measures $0 FY 2010 Actual FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Number of licensees (active/inactive) Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Behavior Analyst FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 290.8 25.0 312.2 31.8 312.2 31.8 324.4 32.8 Agency - Approp. Funds 315.8 344.0 344.0 357.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses 4.0 170.1 72.1 23.8 3.2 0.3 0.0 43.7 4.0 180.1 73.1 34.0 4.5 6.0 0.0 40.6 4.0 180.1 73.1 34.0 4.5 6.0 0.0 40.6 4.0 189.1 73.4 34.0 4.5 6.0 0.0 44.5 Agency Operating Detail FY 2011 Actual FY 2012 Expected FY 2013 Expected 1856 1835 1875 Number of investigations 44 39 39 1850 39 Customer satisfaction rating (scale 1-8) 7.1 7.5 7.5 7.5 The Executive recommends a lump-sum appropriation to the agency. State Board of Psychologist Examiners 179 2,074.8 2,139.8 2,139.8 2,145.8 101,098.5 52,906.1 2,551.6 258.7 159.4 2,767.6 30,027.8 8,058.4 349.6 0.1 8,117.3 104,675.9 59,070.3 1,404.5 651.8 210.6 7,113.8 33,087.1 5,577.5 0.0 0.0 4,387.6 104,675.9 59,848.1 1,404.5 651.8 210.6 7,113.8 33,087.1 5,577.5 0.0 0.0 4,387.6 110,678.8 69,616.5 1,404.5 651.8 210.6 7,113.8 33,527.5 8,553.1 0.0 0.0 3,681.0 206,295.1 216,179.1 216,956.9 235,437.6 40,365.2 41,521.2 17,785.9 46,526.2 0.0 18,522.3 47,304.0 0.0 18,522.3 63,575.2 0.0 19,024.4 1,518.8 1,509.1 1,509.1 1,559.1 664.1 868.0 868.0 880.0 2,699.3 3,008.6 3,008.6 3,011.0 3,981.7 3,944.6 3,944.6 5,550.9 3,761.0 0.0 0.0 2,390.0 0.0 2,390.0 0.0 2,390.0 10,098.6 11,030.5 11,030.5 11,302.6 0.0 2,090.3 2,090.3 2,090.3 20.4 1,485.3 79,215.7 205.0 1,817.9 119,961.0 205.0 1,817.9 119,961.0 205.0 1,879.8 119,541.7 2,886.5 2,859.3 2,859.3 2,926.4 $ 250,000 General Fund State Highway Fund Arizona Highway Patrol Fund Safety Enforcement and Transportation Infrastructure Crime Laboratory Assessment Auto Fingerprint Identification DNA Identification System Fund Photo Enforcement Fund Public Safety Equipment Fund Crime Laboratory Operations Fund Gang and Immigraton Intelligence Team Enforcement Mission Fund Motorcycle Safety Fund Parity Compensation Fund Highway User Revenue Fund DPS Criminal Justice Enhancement Fund Risk Management Fund 291.4 1,446.3 1,446.3 1,501.3 $ 200,000 Agency - Approp. Funds 206,295.1 216,179.1 216,956.9 235,437.6 PSA FTE Department of Public Safety Mission: To protect human life and property by enforcing state laws, deterring criminal activity, assuring highway and public safety, and providing vital scientific, technical, and operational support to other criminal justice agencies. Description: The Arizona Department of Public Safety enforces state law with primary responsibility in the areas of traffic safety, criminal interdiction, narcotics, organized crime, auto theft, and specific regulatory functions. Services include homeland security, criminal intelligence, scientific analysis, aviation support, emergency first care, criminal information systems, training, and statewide communications. Operational and technical assistance is provided to local and state agencies and other components of the criminal justice community. The Department also promotes and enhances the quality of public safety through cooperative enforcement and community awareness programs. Highway Miles Patrolled 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 General Fund and Total Funds Expenditure $ 350,000 $ 300,000 $ 150,000 Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Capital Outlay Cost Allocation Transfers Out Agency - Approp. Funds Appropriated Fund The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Photo Enforcement 3,761.0 0.0 0.0 0.0 SLI Public Safety Equipment 0.0 2,390.0 2,390.0 2,390.0 SLI GITEM 18,359.6 24,391.7 24,447.7 25,643.6 SLI Motor Vehicle Fuel 3,908.9 3,935.5 3,935.5 3,935.5 $ 100,000 $ 50,000 $0 Non-Appropriated Funds Agency Summary - Appropriated Funds Program/Cost Center Director's Office Highway Patrol Criminal Investigations Technical Services Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 14,840.1 94,458.6 38,338.0 58,658.4 15,520.3 95,695.4 44,333.9 60,629.5 15,563.3 96,167.8 44,506.9 60,718.9 16,355.3 107,170.1 47,659.4 64,252.8 206,295.1 216,179.1 216,956.9 235,437.6 FY 2011 Actual Board of Fingerprinting Fund Capital Outlay Stabilization Capitol Police Towing Fund DPS Administration Fund DPS Anti-Racketeering DPS Licensing Fund FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 931.2 859.4 786.4 822.6 0.0 0.0 1,203.4 3,536.7 968.8 0.7 52.0 3,376.8 4,500.6 1,081.1 0.0 52.0 3,376.8 4,500.6 1,071.3 0.0 52.0 3,483.4 4,542.6 1,107.3 Category 180 Department of Public Safety FY 2013 Executive Budget Non-Appropriated Funds FY 2011 Actual DPS Peace Officers Training DPS Records Processing Fund Families of Fallen Police Officers Special Plate Fund Federal Economic Recovery Fund Federal Grant Fingerprint Clearance Card Fund Gang and Immigration Intelligence Team Enforcement Mission Fund IGA and ISA Fund Indirect Cost Recovery Fund Motor Carrier Safety Revolving Public Safety Equipment Fund FY 2012 Expend. Plan 6,101.6 8,290.6 FY 2013 Exec. Rec. 6,518.8 4,916.3 5,176.3 5,176.3 5,200.9 198.0 138.7 138.7 125.0 3,289.1 1,900.4 1,900.4 0.0 32,069.4 3,229.3 37,308.6 4,532.1 37,216.3 4,532.1 27,324.0 4,629.5 PLTO rent changes in FY 2013. General Fund 68.6 Risk Management Fund 17.8 Health Insurance Rate Reduction General Fund (986.6) Arizona Highway Patrol Fund (119.2) 0.0 1,291.7 3,873.3 Safety Enforcement and Transportation Infrastructure Fund 7,098.8 721.4 7,926.9 1,627.7 7,926.9 1,627.7 8,173.9 1,618.4 Crime Laboratory Assessment Fund 7.8 7.8 7.8 5,320.8 1,461.9 1,461.9 4,688.3 69,584.8 78,241.6 79,357.5 72,167.9 275,879.9 294,420.7 296,314.4 307,605.5 Auto Fingerprint Identification Fund (10.3) (3.3) (0.7) DNA Identification System Fund (27.5) Crime Laboratory Operations (75.3) Parity Compensation Fund (13.3) DPS Criminal Justice Enhancement Fund (18.8) Risk Management Fund (8.2) Other Adjustments Federal Funds Expenditures - as reported by Agency FY 2011 Actual (1,263.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 0.0 0.0 Agency - Nonapp. Funds Agency Total - All Funds 8,290.6 FY 2013 FY 2012 Exec. Rec. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 35,358.5 39,321.0 26,760.1 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Replacement Highway Patrol Vehicles 2,824.3 The Department does not have a dedicated budget for Highway Patrol vehicle replacement. This has resulted in an aging fleet: At the beginning of FY 2011, the average odometer reading of the Highway Patrol fleet was 63,300 miles; on July 18, 2011, the average odometer reading had increased to 78,700. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 136.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 106.2 Arizona Highway Patrol Fund 12.8 Safety Enforcement and Transportation Infrastructure Fund 1.1 Crime Laboratory Assessment Fund 0.4 Auto Fingerprint Identification Fund 0.1 DNA Identification System Fund 3.0 Crime Laboratory Operations 8.1 Parity Compensation Fund 1.4 DPS Criminal Justice Enhancement Fund 2.0 Risk Management Fund 0.9 Rent Standard Adjustment 86.4 This issue includes statewide adjustments for COSF, COP, and Agency Operating Detail The Executive recommends a continuing funding source for annual replacement vehicles. The recommended funding will provide approximately 126 cars per year. The intent is to work toward an average odometer reading of about 70,000 miles. It is estimated that it will take approximately nine years to reduce the average odometer reading to under 70,000 miles. The total cost of the Executive recommendation is $6.3 million per year. Of that amount, $2.8 million is a General Fund appropriation. The other $3.5 million is from recommended changes to the Public Safety Equipment Fund. Currently, all revenues from DUI/DWI fines and penalties above $1.2 million that go into the Public Safety Equipment Fund are deposited into the General Fund. This amount was approximately $3.5 million in FY 2011. The Executive recommends providing all revenues collected by the Department from DUI and DWI fines and penalties to the Department as a continuing appropriation for the purposes listed in statute. General Fund 2,824.3 DNA Testing 1,507.6 The Department is responsible for processing DNA samples sent to them for (a) entry into the DNA database and (b) evidence in Department of Public Safety 181 FY 2013 current legal proceedings. Over the past five years, the DNA casework backlog has grown by 275%. The backlog in DNA samples has been reduced in past years by using temporary federal funding, but is expected to increase beginning in FY 2012, when the federal funds are exhausted. The Executive recommendation will slow the rate of growth of the backlogs. DNA Identification System Fund 1,507.6 Adjustment for ERE 9,174.6 On July 1, 2011, the Department's contribution rate for the Public Safety Personnel Retirement System (PSPRS) increased from 28.8% of payroll to 33.3%. The resulting increase in cost to the Department will be $3.1 million during FY 2012. On July 1, 2012, the Department's contribution rate for PSPRS will increase from 33.3% of payroll to 43.7%. The resulting increase in cost to the Department will translate to approximately $6.1 million during FY 2013. The Executive recommends funding the increase in ERE costs that the Department would otherwise have to absorb. This amount includes annualization of the recommended FY 2012 supplemental appropriation as well as an additional $6.1 million for increased ERE rates in FY 2013. General Fund 9,174.6 FY 2013 Department of Public Safety may receive in a fiscal year from the Highway User Revenue Fund and from the State Highway Fund, respectively. The limit is $10.0 million from each fund and any funding is required to be used on Highway Patrol costs. This provision has been notwithstood for most of the last eleven years. The Executive recommends permanently eliminating these caps. AG Pro-Rata Appropriation (706.6) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (132.5) Arizona Highway Patrol Fund (66.7) Safety Enforcement and Transportation Infrastructure Fund (5.8) Crime Laboratory Assessment Fund (1.9) Auto Fingerprint Identification Fund (0.4) DNA Identification System Fund (15.4) Crime Laboratory Operations (42.1) Parity Compensation Fund State Aid to Indigent Defense Fund 0.0 During FY 2012, revenues that previously had been deposited into the State Aid to Indigent Defense Fund were diverted, per Laws 2011, Chapter 308, to the Gang and Immigration Intelligence Team Enforcement Mission (GIITEM) Fund Border Security and Law Enforcement Subaccount. The Executive recommends making the change as permanent law. Public Safety Equipment Fund Expenditures 0.0 The Public Safety Equipment Fund has two sources of revenue: (1) DUI and DWI fines and penalties, which generates $1.2 million for vehicles, protective armor, electronic stun devices and other safety equipment; and (2) $4 of a $13 surcharge on civil fines and penalties, which may be used for the same purposes as the first source, although “vehicles” are not explicitly mentioned. The Executive recommends amending A.R.S. § 41-1723 to explicitly allow vehicles to be purchased with all monies from the Public Safety Equipment Fund. Highway Patrol Fund 0.0 To alleviate cash flow issues, for FY 2013 the Executive recommends reducing, from $2.0 million to $750,000, the ongoing fund transfer from the Highway Patrol Fund. Elimination of Anti-Racketeering Fund Sweep 0.0 (7.4) Highway User Revenue Fund (419.3) DPS Criminal Justice Enhancement Fund Risk Management Fund (10.5) (4.6) State Employee Pay Adjustment 7,499.3 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 5,994.3 Arizona Highway Patrol Fund 675.1 Safety Enforcement and Transportation Infrastructure Fund 65.0 Crime Laboratory Assessment Fund 16.8 Auto Fingerprint Identification Fund 3.4 DNA Identification System Fund 138.7 Crime Laboratory Operations 381.4 Parity Compensation Fund 81.2 DPS Criminal Justice Enhancement Fund 94.4 Risk Management Fund 49.0 FY 2012 Supplemental Recommendations FY 2012 Adjustment for ERE 777.8 The Executive recommends eliminating sweeps from the DPS Anti-Racketeering Fund in FY 2012 and FY 2013. Elimination of Cap for HURF and SHF Expenditures 0.0 ARS 28-6537 and 28-6993 limit the amount of money that the 182 Department of Public Safety FY 2013 Executive Budget FY 2012 On July 1, 2011, the Department's contribution rate for the Public Safety Personnel Retirement System (PSPRS) increased from 28.8% of payroll to 33.3%. The resulting increase in cost to the Department will be $3.1 million during FY 2012. The Executive recommends a supplemental appropriation to cover the increase for the last quarter of FY 2012. For the first three-quarters of the year, until a supplemental appropriation can be enacted, the Department will need to pay the additional retirement charges by cutting other expenditures. General Fund 777.8 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Percent of employees terminating 2.6 3.26 5.0 employment (excludes nonDepartment of Public Safety task force members and retirements) Note: Petition for change to FY2012 description to include retirements in measure. 5.0 Percent of crime lab cases over 30 days old Fatal highway collisions on Department of Public Safety patrolled roads  5.6 5.65 5.5 5.5 226 212 205 195 The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail Department of Public Safety 183 RCA Arizona Department of Racing Mission: To regulate and supervise pari-mutuel racing and wagering conducted in Arizona in order to protect racing participants and the wagering public. To regulate and supervise boxing events conducted in Arizona to protect all participants in these events. Description: The Department regulates the Arizona pari-mutuel horse and greyhound racing industries. The Department oversees, supervises and issues permits for all commercial horse, greyhound and county fair racing, including live and simulcast racing; supervises off-track betting sites; conducts background checks and licenses all racing participants; collects state revenues generated by races; promotes and encourages the breeding of horses and greyhounds in the state; promotes and encourages the adoption of retired racehorses and retired greyhounds; and enforces laws and rules related to racing and wagering. The Department also regulates and supervises all professional boxing events and all mixed martial arts contests in Arizona. Number of Animals Sampled for Drug Testing 18,000 16,000 14,000 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 40.5 40.5 40.5 40.5 1,013.6 481.4 105.5 76.6 5.8 0.0 254.6 37.3 1,779.5 1,434.4 600.0 235.3 21.0 4.9 0.0 140.8 0.0 1,779.5 1,434.4 600.0 235.3 21.0 4.9 0.0 140.8 0.0 1,779.5 1,506.2 608.1 260.3 71.0 4.9 0.0 169.5 0.0 1,769.8 3,754.3 4,215.9 4,215.9 4,389.8 3,754.3 0.0 2,781.6 1,434.3 2,781.6 1,434.3 1,717.5 2,672.2 3,754.3 4,215.9 4,215.9 4,389.8 Appropriated Fund General Fund Racing Regulation Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual AZ Stallion Award Fund Breeders Award Fund Greyhound Adoption Program Fund Racing Investigation Fund Unarmed Combat Fund Agency Total - All Funds 10,000 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 6.6 2.6 3.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.2 0.0 0.0 16.9 0.0 16.9 0.0 16.9 31.1 16.9 16.9 16.9 3,785.4 4,232.8 4,232.8 4,406.7 Agency - Nonapp. Funds 12,000 FY 2012 Expend. Plan 8,000 6,000 Executive Appropriation Recommendations 4,000 FY 2013 2,000 Standard Adjustments 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 5.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund and Total Funds Expenditure $ 6,000 $ 5,000 $ 4,000 $ 3,000 General Fund 2.3 Racing Regulation Fund 3.2 Rent Standard Adjustment 3.7 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 2,000 $ 1,000 General Fund $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Commercial Racing County Fair Racing Boxing Commission Agency - Approp. Funds 184 Retirement Standard Adjustment FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,374.1 380.2 0.0 4,092.9 0.0 123.0 4,092.9 0.0 123.0 4,262.6 0.0 127.2 3,754.3 4,215.9 4,215.9 4,389.8 Health Insurance Rate Reduction 3.7 (12.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Arizona Department of Racing (12.5) FY 2013 Executive Budget Performance Measures FY 2013 Baseline Adjustments Self Funding of Racing Regulation 0.0 The Executive recommends shifting expenditures from the General Fund to the Racing Regulation Fund as part of the Agency's transition to self-funding. The Executive recommends an additional one-year exemption from the rule making requirement of A.R.S. Title 41, Chapter 6, to allow flexibility for adjustments in fees during the fiscal year to meet the Agency's and industry's funding and regulatory needs. Number of horse racing investigations conducted regarding compliance with rules Number of boxing & MMA licenses issued Percent of total horse racing licensees with disciplinary action FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 90 174 100 100 560 685 750 750 4.00 5.0 5.00 5.00 The Executive recommends a lump-sum appropriation to the agency. The Executive also recommends authorizing the Agency to accept donations, gifts or grants for deposit into the Racing Regulation Fund. General Fund (1,089.7) Racing Regulation Fund 1,089.7 Racing Regulation Fund 100.0 Laws 2011, Chapter 35, allows the Department to raise fees to generate up to $2.0 million for FY 2013. Laws 2011, Chapter 333, allows for an additional $400,000 in FY 2012 and $500,000 in FY 2013 in fee revenue. The Department was appropriated the additional $400,000 for FY 2012. The Executive recommends appropriating $100,000 to align with the additional revenue in FY 2013. Racing Regulation Fund 100.0 Other Adjustments AG Pro-Rata Appropriation (9.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (4.0) Racing Regulation Fund (5.6) State Employee Pay Adjustment 86.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 36.2 Racing Regulation Fund 50.7 Performance Measures Number of greyhound racing investigations conducted regarding compliance with rules Percent of greyhound racing licensees with disciplinary action Number of county fair racing investigations resulting in disciplinary action Agency Operating Detail FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 18 14 25 25 .05 .07 .07 .07 11 20 15 15 Arizona Department of Racing 185 AEA Radiation Regulatory Agency Mission: To protect the health and safety of Arizonans from unnecessary radiation exposure from all natural and man-made sources. Description: The Arizona Radiation Regulatory Agency provides protection from unnecessary radiation exposure through inspection of radiation sources and their uses, effective response to radiological incidents, environmental sampling, and the certification of those using nuclear medicine technology, those operating x-ray equipment and cosmetic laser technicians. Total Licenses, Registrations, Certificates Issued Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 0.3 0.0 0.0 107.1 1.2 639.5 15.7 4.3 0.0 184.0 73.6 716.0 15.7 4.3 0.0 184.0 73.6 716.0 15.7 4.3 0.0 184.0 73.6 710.3 1,633.3 2,220.3 2,220.3 2,303.0 1,392.6 240.7 1,459.0 264.6 1,459.0 264.6 1,481.7 260.6 0.0 496.7 496.7 560.7 1,633.3 2,220.3 2,220.3 2,303.0 Appropriated Fund General Fund State Radiologic Technologist Certification Radiation Regulatory Fee Fund Agency - Approp. Funds Non-Appropriated Funds 25,000 FY 2011 Actual 20,000 Federal Grant Nuclear Emergency Management Service Fees Increase Fund 15,000 10,000 249.0 639.5 Agency - Nonapp. Funds 5,000 Agency Total - All Funds 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2012 Expend. Plan 249.0 703.2 249.0 696.2 FY 2013 Exec. Rec. 255.1 665.4 476.2 0.0 0.0 0.0 1,364.7 952.2 945.2 920.4 2,998.0 3,172.5 3,165.5 3,223.4 Federal Funds Expenditures - as reported by Agency FY 2011 Actual General Fund and Total Funds Expenditure FY 2012 Exec. Rec. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 241.2 300.4 300.4 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 3,000 $ 2,500 Executive Appropriation Recommendations $ 2,000 FY 2013 $ 1,500 Standard Adjustments $ 1,000 Retirement Standard Adjustment $ 500 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3.2 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 1.9 State Radiologic Technologist Certification Fund 0.6 Radiation Regulatory Fee Fund 0.8 Radioactive Materials/NonIonizing Radiation X-Ray Compliance Emergency Response Radiation Measurement Laboratory Medical Radiation Technology Board 318.6 488.2 488.2 501.4 320.9 639.5 113.6 574.2 716.0 177.3 574.2 716.0 177.3 643.5 716.0 181.6 The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. 240.7 264.6 264.6 260.6 General Fund (6.7) State Radiologic Technologist Certification Fund (1.0) Agency - Approp. Funds 1,633.3 2,220.3 2,220.3 2,303.0 Radiation Regulatory Fee Fund (1.7) 32.0 617.4 261.8 6.0 32.5 850.4 370.4 5.9 32.5 850.4 370.4 5.9 32.5 920.3 388.9 5.9 Health Insurance Rate Reduction (9.4) Category FTE Personal Services ERE Amount Prof. And Outside Services 186 Radiation Regulatory Agency FY 2013 Executive Budget Performance Measures FY 2013 FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 19.2 23.4 33 38 Baseline Adjustments Appropriation Reduction (11.5) Revenues for the State Radiologic Technologist Certification Fund came in below the appropriation level in FY 2011, causing the Agency to leave nearly $24,000 of the appropriation unspent. Revenues in FY 2012 and FY 2013 are expected to stay at a lower level, preventing the Agency from spending its full appropriation. Percent of x-ray tubes overdue for inspection Staffing shortages will force the percentage overdue for inspection to increase.  The Executive recommends a lump-sum appropriation to the agency. The Executive recommends lowering the appropriation for the State Radiologic Technologist Certification Fund so that expenditures better align with expected revenues. State Radiologic Technologist Certification Fund (11.5) Other Adjustments X-Ray Equipment Inspection 54.3 Each year, the Agency inspects about 17% of all x-ray tubes in Arizona. In FY 2013 approximately 2,400 x-ray tubes will be in need of inspection. Each inspector can conduct approximately 600 inspections per year, and there are 3.25 FTE positions. As current staffing is inadequate to inspect all x-ray tubes, the Executive recommends funding for 1.0 FTE position to prevent an increase in the backlog of uninspected x-ray tubes. The new x-ray inspector will be trained to participate in the Emergency Response Team at the Palo Verde Nuclear Power Plant. Radiation Regulatory Fee Fund 54.3 AG Pro-Rata Appropriation (5.7) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (3.4) State Radiologic Technologist Certification Fund (1.0) Radiation Regulatory Fee Fund (1.3) State Employee Pay Adjustment 51.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 30.9 State Radiologic Technologist Certification Fund 8.9 Radiation Regulatory Fee Fund 12.0 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 126 159 150 150 Number of radioactive materials inspections Estimates assume that budget request for additional staffing is approved.  Number of environmental sample analyses Number of active medical radiologic technologist certificates Agency Operating Detail 5,000 2,000 4,000 4,000 8,517 7,815 8,000 8,000 Radiation Regulatory Agency 187 RPA Arizona Rangers' Pension Mission: To provide compensation for time spent as an Arizona Ranger. Description: The Arizona Rangers' Pension provided monthly benefits for the last surviving spouse of a retired Arizona Ranger. Rita Beaty, the last link to the Arizona Rangers, a legendary group of rugged lawmen organized in 1901, passed away on January 3, 2011. Her husband Clarence Beaty was one of 107 men who served as Arizona Rangers, whose mission was to tame the wild west so the Arizona territory could become a state. Clarence joined the Rangers in 1902 and survived the dangers of wearing the badge, dying in 1964 at the age of 90, leaving Rita as the last surviving widow of this historic institution. General Fund and Total Funds Expenditure $ 16 $ 14 $ 12 $ 10 $8 $6 $4 $2 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Arizona Rangers' Pensions Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 8.3 0.0 0.0 0.0 8.3 0.0 0.0 0.0 0.0 0.0 0.0 8.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8.3 0.0 0.0 0.0 8.3 0.0 0.0 0.0 8.3 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund General Fund Agency - Approp. Funds 188 Arizona Rangers' Pension FY 2013 Executive Budget REA Department of Real Estate Mission: To serve and protect the public interest through efficient and timely licensure, balanced regulation, and proactive education of the real estate profession in the State of Arizona. Description: Pursuant to A.R.S. Title 32, Chapter 20 and the Administrative Code Title 4, Chapter 28, the Department regulates real estate licensees (including residential sales, brokers, companies, property managers, business brokers, and commercial brokers), private cemeteries, and membership camping licensees. The Department also regulates real estate educators and schools, monitoring pre-licensing and continuing education courses to ensure the quality content of courses and the competence of instructors, as well as the quality and timeliness of materials being taught. The Department oversees the administration of licensing examinations as well as the activities of licensees to ensure compliance with the Arizona Revised Statutes and the Commissioner’s Rules. ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 766.6 97.1 2.0 1.3 0.0 576.5 114.6 0.0 656.3 15.3 10.0 2.0 0.0 432.7 11.0 0.0 656.3 15.3 10.0 2.0 0.0 432.7 11.0 0.0 730.0 65.4 10.0 2.0 0.0 475.1 11.0 (14.8) 2,812.0 2,656.7 2,656.7 3,022.6 2,812.0 2,656.7 2,656.7 3,022.6 2,812.0 2,656.7 2,656.7 3,022.6 Appropriated Fund General Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Real Estate Condominium Recovery Fund Real Estate Education Revolving Real Estate Recovery Agency Total - All Funds FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 87.8 32.2 0.0 1.7 0.0 12.0 12.0 111.8 0.0 120.0 144.0 113.5 87.8 164.2 156.0 2,925.5 2,744.5 2,820.9 3,178.6 Agency - Nonapp. Funds Number of Licenses FY 2012 Expend. Plan 120,000 Executive Appropriation Recommendations 100,000 FY 2013 80,000 Standard Adjustments 60,000 Retirement Standard Adjustment 40,000 5.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 20,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund 5.8 Rent Standard Adjustment General Fund and Total Funds Expenditure 42.4 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. $ 5,000 $ 4,500 General Fund $ 4,000 42.4 $ 3,500 Health Insurance Rate Reduction $ 3,000 $ 2,500 (20.8) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 2,000 $ 1,500 $ 1,000 General Fund $ 500 (20.8) $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,812.0 2,656.7 2,656.7 3,022.6 2,812.0 2,656.7 2,656.7 3,022.6 55.0 1,253.9 55.0 1,529.4 55.0 1,529.4 59.0 1,743.9 Category FTE Personal Services Agency Operating Detail Department of Real Estate 189 FY 2013 Other Adjustments Auditing and Investigations Staff 210.5 The Development Services Division of the Department of Real Estate currently has only five employees working as auditors or investigators, and both complaints handled and civil fines collected as a result of audits/investigations being down significantly. FY 2013 rata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (10.3) State Employee Pay Adjustment 92.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund The Executive recommends funding for two auditors, one investigator, and an administrative assistant (total of 4.0 FTE positions). The Department estimates that adding these positions will net approximately $200,000 in civil fine revenue annually to the General Fund and allow the Department to almost double its caseload in these areas. The administrative assistant will provide necessary support to the other three positions, ensuring that they can concentrate on their primary functions. General Fund Attorney General Interagency Service Agreement 210.5 50.1 While the Department had a backlog of only 48 Office of Administrative Hearings (OAH) cases in FY 2009, the backlog has grown to over 200 in FY 2011, with some taking as long as a year to progress to a hearing. To address the backlog and to provide legal advice and hearing representation, the Department seeks to contract with an attorney from the Attorney General's Office work in-house. The Executive recommends funding an Interagency Service Agreement (ISA) between the Attorney General's Office and the Department. With the ISA in place, the Department will be able to better achieve its mission to protect and serve the public. General Fund 50.1 Payroll Transfer Adjustment (4.5) 92.7 Performance Measures FY 2010 Actual Number of real estate licensees FY 2011 Actual 89,443 89590 FY 2012 Expected FY 2013 Expected 65350  Number reflects actual count of licensees. This includes individuals, brokers, and entities. Number of subdivision filings received  357 193 200 225 100 99 99 99 1 1 1 1 11,300 9023 27000 27600 Includes amendments Percent of department customer service surveys indicating good to excellent service Average days from receipt of application to issuance of real estate license Total real estate applications received  57300 New Applicants & Renewals Average calendar days from receipt of 286 270 250 230 real estate or subdivision complaint to resolution actual should have been 236 as stats for real estate complaints only were reported.  FY2009 Budget cuts and reduced staffing levels have negatively impacted processing times for investigations. Average number of calendar days to 22 25 25 25 issue deficiency letter on subdivision applications received Total real estate or subdivision 1,055 796 850 1,300 complaints investigated The Executive recommends a lump-sum appropriation to the agency. The Executive recommends ($4,500) General Fund in FY 2013 to properly account for payroll reductions enacted by Laws 2010, 7th Special Session, Chapter 3. Because the Department had personal services expenditures from its Education Revolving Fund for one month in FY 2010, the Legislature enacted a continuing $4,500 transfer from that fund for FY 2011 and beyond. Under normal circumstances, the Department only makes payroll expenditures using the General Fund, not the Education Revolving Fund. Therefore, the Executive recommends eliminating the ongoing $4,500 transfer from the Education Revolving Fund in FY 2013, and cutting the Department's General Fund budget by that amount to accurately capture the payroll savings enacted by Laws 2010, 7th Special Session, Chapter 3. General Fund AG Pro-Rata Appropriation (4.5) (10.3) The Executive is recommending the elimination of the AG pro190 Department of Real Estate FY 2013 Executive Budget UOA Other Operating Expenses Equipment Residential Utility Consumer Office Mission: To represent the interests of residential ratepayers before the Arizona Corporation Commission and advocate for reasonable utility rates and reliable and safe utility service. Description: The Residential Utility Consumer Office (RUCO) is an agency comprised mainly of attorneys and financial analysts. RUCO participates in matters before the Corporation Commission regarding utility rate increases, renewable energy standards, and Commission rulemaking. RUCO reviews utility financial records, conducts discovery, offers testimony and presents witnesses at evidentiary hearings to argue positions in favor of residential utility ratepayers. 157.3 0.0 161.8 0.0 161.8 0.0 164.6 0.0 1,049.3 1,289.0 1,289.0 1,331.7 Residential Utility Consumer Office Revolving 1,049.3 1,289.0 1,289.0 1,331.7 Agency - Approp. Funds 1,049.3 1,289.0 1,289.0 1,331.7 Agency - Approp. Funds Appropriated Fund The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Professional Witnesses 124.4 145.0 145.0 145.0 Appropriation Executive Appropriation Recommendations FY 2013 Standard Adjustments Number of Interventions in Rate Making Retirement Standard Adjustment 16 2.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 14 12 10 8 6 4 Residential Utility Consumer Office Revolving Fund 2.8 Rent Standard Adjustment 2.8 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 2 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Residential Utility Consumer Office Revolving Fund 2.8 Health Insurance Rate Reduction General Fund and Total Funds Expenditure (7.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 1,200 $ 1,000 Residential Utility Consumer Office Revolving Fund $ 800 (7.1) Other Adjustments $ 600 State Employee Pay Adjustment $ 400 44.2 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 200 $0 Residential Utility Consumer Office Revolving Fund 44.2 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Performance Measures Agency Summary - Appropriated Funds Program/Cost Center Ratepayer Representation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,049.3 1,289.0 1,289.0 1,331.7 1,049.3 1,289.0 1,289.0 1,331.7 11.0 549.2 213.1 126.3 3.4 0.0 0.0 11.0 730.1 234.1 147.4 8.6 7.0 0.0 11.0 730.1 234.1 147.4 8.6 7.0 0.0 11.0 766.6 237.5 147.4 8.6 7.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail Number of cases analyzed FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 40 27 30 30 RUCO interventions in rate making 5 6 5 3 Customer satisfaction rating for residential utility customers (scale 1-8) 7 7 7 7 The Executive recommends a lump-sum appropriation to the agency with special line items. Residential Utility Consumer Office 191 RBA Board of Respiratory Care Examiners Mission: To exercise state regulatory authority over respiratory care practitioners by granting licenses; maintaining public records for all practitioners within Arizona; and enforcing rules and statutes to ensure the public health, welfare, and safety. Description: Respiratory Care Practitioners work in therapeutic, surgical, and/or clinical settings to monitor respiration and lung health, as well as to diagnose and treat disorders. The Board of Respiratory Care Examiners regulates the practice of respiratory care in Arizona. The Board examines and licenses respiratory care practitioners based on minimum competency standards set by the Legislature. Additionally, the Board enforces state laws, rules, and regulations set forth to ensure public safety and investigates complaints filed against a member of the professional community. Number of Licensees 4,500 4,000 3,500 Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds 0.0 0.0 48.3 0.0 1.5 0.0 41.6 0.0 1.5 0.0 41.6 0.0 1.5 0.0 41.5 0.0 281.3 306.2 306.2 271.3 281.3 306.2 306.2 271.3 281.3 306.2 306.2 271.3 Appropriated Fund Board of Respiratory Care Examiners Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Board of Respiratory Care Examiners Fund 0.6 Rent Standard Adjustment 4.9 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 3,000 2,500 2,000 Board of Respiratory Care Examiners Fund 1,500 1,000 4.9 Health Insurance Rate Reduction 500 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (1.1) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Board of Respiratory Care Examiners Fund General Fund and Total Funds Expenditure (1.1) $ 300 Baseline Adjustments $ 250 Discontinuation of One-Time FY 2012 Funding The Executive recommends eliminating a one-time appropriation in FY 2012 used to purchase a firewall and overhaul the Board's database. $ 200 $ 150 Board of Respiratory Care Examiners Fund $ 100 (49.0) Other Adjustments $ 50 State Employee Pay Adjustment $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 281.3 306.2 306.2 271.3 281.3 306.2 306.2 271.3 3.5 139.6 47.3 44.6 1.5 4.0 162.6 54.4 44.6 1.5 4.0 162.6 54.4 44.6 1.5 4.0 170.7 55.5 0.6 1.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 192 (49.0) 9.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Board of Respiratory Care Examiners Fund 9.7 Performance Measures Total number of practitioners investigated Average days from receipt of complaint to resolution Total number of applications for permanent licenses Board of Respiratory Care Examiners FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 104 133 110 110 154 160 160 160 1,578 1,712 1,700 1,710 FY 2013 Executive Budget The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Board of Respiratory Care Examiners 193 RTA Arizona State Retirement System Mission: To benefit our members, the Arizona State Retirement System (ASRS) will be a leading state benefit plan administrator in the areas of core member services, funded status, investment performance, and operational effectiveness, while keeping program benefits and associated costs relatively aligned and maintaining actuarial and fiscal integrity. Description: The Arizona State Retirement System provides pension, survivor, disability, health insurance, and educational services for most public sector employers in Arizona, including state universities and colleges, public school districts, and state and local governments. Total Membership Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 43.7 0.0 2,166.4 725.3 0.0 25.0 0.0 2,525.5 389.5 10.0 25.0 0.0 2,525.5 389.5 10.0 25.0 0.0 2,525.5 389.5 (71.8) 22,597.8 24,573.5 24,573.5 24,275.3 19,925.6 21,773.5 21,773.5 21,475.3 2,672.2 2,800.0 2,800.0 2,800.0 22,597.8 24,573.5 24,573.5 24,275.3 Appropriated Fund Retirement System Appropriated LTD Trust Fund Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Contribution Rate 100.0 600.0 600.0 0.0 Administration SLI Ch. 357 Retirement 0.0 250.0 250.0 0.0 Systems Non-Appropriated Funds 600,000 FY 2011 Actual 500,000 Arizona State Retirement System 400,000 300,000 Agency - Nonapp. Funds 200,000 Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 65,825.6 72,371.0 72,371.0 77,058.0 65,825.6 72,371.0 72,371.0 77,058.0 88,423.4 96,944.5 96,944.5 101,333.3 100,000 Executive Appropriation Recommendations 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2013 Standard Adjustments General Fund and Total Funds Expenditure Retirement Standard Adjustment $ 300,000 46.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. $ 250,000 $ 200,000 Retirement System Appropriated Fund 46.0 $ 150,000 Health Insurance Rate Reduction $ 100,000 (141.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 50,000 $0 Retirement System Appropriated Fund Baseline Adjustments Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Member Services Administration and Support Investment Management 14,693.5 6,515.3 1,389.0 15,547.7 7,190.9 1,834.9 15,547.7 7,190.9 1,834.9 15,326.5 7,052.1 1,896.7 Agency - Approp. Funds 22,597.8 24,573.5 24,573.5 24,275.3 236.0 10,973.3 4,231.2 4,408.9 49.0 236.0 12,117.5 4,720.6 4,731.8 53.6 236.0 12,117.5 4,720.6 4,731.8 53.6 236.0 12,723.3 4,748.4 3,881.8 53.6 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 194 (141.3) One-time Funding for Contribution Rate Shift (600.0) Laws 2011, Chapter 26 alters the split of contribution rate between employees and employers to 53%-47% (from 50%-50%). The FY 2012 budget appropriated $100,000 in supplemental funding for FY 2011 and $600,000 in funding for FY 2012 to pay for the cost of implementing this change. The Executive recommends a decrease to remove this one-time funding from the ASRS base budget. Retirement System Appropriated Fund (600.0) One-time Funding for Plan Design Changes (250.0) Laws 2011, Chapter 357 made several changes to the State’s Arizona State Retirement System FY 2013 Executive Budget FY 2013 retirement systems, including ASRS. To implement these changes, Chapter 357 appropriated $250,000 from the Arizona State Retirement System Appropriated Fund to ASRS. The Executive recommends a decrease to remove this one-time funding from the ASRS base budget. Retirement System Appropriated Fund (250.0) Other Adjustments AG Pro-Rata Appropriation (81.8) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Retirement System Appropriated Fund (81.8) State Employee Pay Adjustment 728.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Retirement System Appropriated Fund 728.8 Performance Measures Percent of overall member satisfaction with the service purchase process (objective 90%) Percentage of overall member satisfaction with Telephone Service at the Arizona State Retirement System (objective 90%) Percentage of investment returns FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 89 91 90 90 96 97 90 90 14.9 24.6 8.0 8.0 76.43 75.8 n/a n/a  one-year return figure  Actuarial value for the total Plan (401a and 401h) as of 6/30/10. Percentage of liability funded The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail Arizona State Retirement System 195 RVA Other Operating Expenses Equipment Transfers Out Department of Revenue Mission: Administer tax laws fairly and efficiently for the people of Arizona. Agency - Approp. Funds Description: Pursuant to Arizona Revised Statutes Titles 42 and 43, the Department of Revenue administers and enforces the collection of individual and corporate income, transaction privilege, withholding and luxury taxes. The Department oversees the fifteen county assessors in the administration of state property tax laws. Total Returns Processed 9,639.3 3,985.5 67.5 9,031.0 1,228.9 0.0 9,031.0 1,228.9 0.0 10,904.9 4,776.9 (242.1) 66,762.7 67,711.4 67,711.4 78,962.6 43,317.1 673.1 44,129.6 665.4 44,129.6 665.4 53,634.2 680.5 22,488.5 22,532.6 22,532.6 23,563.5 Appropriated Fund General Fund Tobacco Tax and Health Care Fund Department of Revenue Administrative Fund DOR Liability Setoff Fund Agency - Approp. Funds 284.0 383.8 383.8 1,084.5 66,762.7 67,711.4 67,711.4 78,962.6 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Attorney General Legal 119.8 160.1 160.1 160.1 Services 6,000,000 5,000,000 Non-Appropriated Funds 4,000,000 FY 2011 Actual 3,000,000 Client County Equipment Capitalization DOR Estate & Unclaimed Escheated Estates Federal Deposit Insurance Corp Trust Fund IGA and ISA Fund Revenue Income Tax Revenue Publication Revolving Statewide Employee Recognition Gifts/Donations Tobacco Products Tax Fund Tobacco Tax and Health Care Fund 2,000,000 1,000,000 0 General Fund and Total Funds Expenditure $ 160,000 $ 140,000 $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 Agency - Nonapp. Funds $ 20,000 Agency Total - All Funds $0 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 106.9 0.0 0.0 0.0 120,001.4 455.9 7.0 77,000.0 0.0 0.0 77,000.0 0.0 0.0 77,000.0 0.0 0.0 5.3 0.0 59.5 117.0 188.5 0.0 117.0 188.5 0.0 120.5 188.5 0.0 0.1 0.0 0.0 0.0 1,943.4 0.0 0.0 0.0 642.3 0.0 0.0 0.0 123,221.8 77,305.5 77,305.5 77,309.0 189,984.5 145,016.9 145,016.9 156,271.6 Executive Appropriation Recommendations FY 2013 Agency Summary - Appropriated Funds Program/Cost Center Service Processing Education and Compliance Agency Support Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others 196 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Standard Adjustments Retirement Standard Adjustment 136.3 9,371.6 9,750.2 26,404.8 21,236.1 10,316.3 7,564.7 22,275.0 27,555.4 10,316.3 7,564.7 22,275.0 27,555.4 10,550.9 8,410.5 22,896.6 37,104.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 66,762.7 67,711.4 67,711.4 78,962.6 General Fund 99.2 Tobacco Tax and Health Care Fund 933.0 32,945.8 13,150.3 6,339.5 269.6 365.2 0.0 933.0 35,866.2 15,333.7 5,635.1 273.7 342.8 0.0 933.0 35,866.2 15,333.7 5,635.1 273.7 342.8 0.0 950.0 39,433.2 15,858.7 7,614.5 273.7 342.8 0.0 1.1 Department of Revenue Administrative Fund 35.3 DOR Liability Setoff Fund Rent Standard Adjustment 0.7 1,873.9 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. Department of Revenue FY 2013 Executive Budget FY 2013 General Fund Tobacco Tax and Health Care Fund Department of Revenue Administrative Fund DOR Liability Setoff Fund Health Insurance Rate Reduction 1,237.7 2.4 629.3 4.5 (513.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Tobacco Tax and Health Care Fund Department of Revenue Administrative Fund DOR Liability Setoff Fund (372.3) (3.9) (132.5) (4.3) Other Adjustments Refurbish Integrated Tax System 7,139.2 The Executive recommends $7.1 million General Fund in FY 2013 to refresh the hardware and software in the State's central tax system, commonly known as BRITS (Business Re-engineering/ Integrated Tax System). Initially deployed in 2002 and completed in 2007 at a cost of $152.0 million, the current system is operating on aging hardware that is vulnerable to failure. Similarly, key software components of the system are outdated and no longer supported by the software industry. FY 2013 federal government has requested that the State reciprocate by offsetting State income tax refunds to settle federal debts, which will add to the need to upgrade the capabilities and capacity of the current system. Government participants in the program pay a $9 fee per refund, which is expected to generate more than $900,000 in FY 2013, paying for the costs of this application. These monies go into the Liability Set-Off Fund for the purpose of managing and administering this program. DOR Liability Setoff Fund 690.0 AG Pro-Rata Appropriation (242.1) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (176.2) Tobacco Tax and Health Care Fund (1.9) Department of Revenue Administrative Fund (62.7) DOR Liability Setoff Fund (1.2) State Employee Pay Adjustment 2,166.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund This project will replace vulnerable hardware, increase system capacity in preparation for tax season, reduce the risk of failure of critical system components, limit delays in revenue generation, and extend the life of the system to maintain it in operation for at least five years, at 10% of the initial cost of the system. The recommended funding includes $4.0 million for one-time hardware, software and contractor costs. Ongoing development, operational and maintenance costs are expected to be $3.1 million in FY 2014 and $1.7 million in fiscal years 2015 through 2017. General Fund Liability Setoff Application 7,139.2 690.0 The Executive recommends $690,000 in one-time funding from the Department of Revenue Liability Set-Off Fund for a new debt setoff software application. Liability set-off technology is used to match taxpayer records to records supplied by other government entities to pay from tax refunds various taxpayer debts for court fees, fines, child support payments and other claims. The current system is outdated and does not easily interface with the Department's other tax systems. The Department of Revenue expects increased demands on this system due to new legislation (Laws 2011, Chapter 329) that enables political subdivisions to participate in the program. The federal government provides a similar service to the State by offsetting federal tax refunds to settle State debts. The State received over $16.5 million from this service in FY 2011. The Agency Operating Detail 1,577.0 Tobacco Tax and Health Care Fund 17.4 Department of Revenue Administrative Fund 561.5 DOR Liability Setoff Fund 11.0 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Average calendar days to refund total 5.21 9.7 7.0 7.0 Individual Income tax checks (paper warrants and electronic deposits) Percent of non-audit revenue to total 98.54 98.89 98.50 98.50 revenue FY2011 result was calculated using a preliminary gross revenue number; FY2011 gross  The revenue data will not be available until the publication of DOR's 2011 Annual Report. Percent of written inquiries answered 84 86 80 80 within 30 calendar days in Taxpayer Information and Assistance section Average annual turnover rate for 13.02 17.46 15.00 15.00 employees Customer satisfaction rating for 4.35 4.52 4.00 4.20 Taxpayer Information and Assistance section (scale 1-5) Percent of accounts that collector 100 100 100 100 contacts within 30 calendar days of that account being assigned a delinquent account BRITS automation, letters are sent to every taxpayer upon being assigned as a  With delinquent account. The Department considers letters as contacts. Percentage of delinquent accounts 51.90 67.30 55.00 60.00 collected This measure tracks and reports TPT collections only.  Department of Revenue 197 The Executive recommends a lump-sum appropriation to the agency with special line items. 198 Department of Revenue FY 2013 Executive Budget SFA School Facilities Board General Fund and Total Funds Expenditure Mission: To provide financial and technical assistance to ensure school districts maintain buildings and equipment at minimum adequacy standards so that students can achieve academic success. Description: The School Facilities Board (SFB) is charged with the administration of three capital programs: (a) New School Facilities, (b) Building Renewal, and (c) Emergency Deficiencies Corrections. The SFB ensures that school districts maintain their buildings at minimum adequacy standards through determining if each district has sufficient space for its students and that the space the district provides meets minimum standards. To do this, the SFB conducts a capital review process to determine building renewal funding and new school construction. Through inspections, the SFB ensures compliance with building adequacy standards and routine preventative maintenance guidelines. Actual Building Renewal Funding 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 $ 700,000 $ 600,000 $ 500,000 $ 400,000 $ 300,000 $ 200,000 $ 100,000 $0 Agency Summary - Appropriated Funds Program/Cost Center School Facilities Board Agency - Approp. Funds FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 67,497.9 164,087.2 264,087.2 172,592.5 67,497.9 164,087.2 264,087.2 172,592.5 17.0 607.0 263.9 144.0 24.0 0.0 0.0 206.4 64.6 66,188.0 17.0 772.0 279.1 153.7 11.2 0.0 0.0 97.6 0.0 162,773.6 17.0 798.9 284.9 153.7 11.2 0.0 0.0 102.7 0.0 262,735.8 20.0 1,347.7 509.8 153.7 83.6 0.0 0.0 1,067.8 5.5 169,424.4 67,497.9 164,087.2 264,087.2 172,592.5 67,497.9 164,087.2 264,087.2 172,592.5 67,497.9 164,087.2 264,087.2 172,592.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 0 FY 2011 Actual Appropriated Fund General Fund Agency - Approp. Funds Formula Building Renewal Funding 200,000,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Building Renewal 2,667.9 2,667.9 102,630.1 0.0 SLI New School Facilities 63,520.1 160,105.7 160,105.7 169,429.6 150,000,000 Non-Appropriated Funds 250,000,000 FY 2011 Actual 100,000,000 50,000,000 0 Agency Operating Detail Arizona Energy and Water Savings Grant Fund Building Renewal Grant Fund Emergency Deficiencies Correction Fund Federal Economic Recovery Fund Lease to Own Debt Service New School Facilities Fund School Facilities Deficiencies Corrections School Facilities Revenue Bond Debt Service State School Trust Revenue Bond Debt Svc School Facilities Board FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. (25.7) 0.0 0.0 0.0 3,012.4 5,232.5 10,000.0 25,000.0 110.6 4,496.7 4,496.7 23.8 8,356.8 16,778.0 16,778.0 0.0 63,480.8 19,453.0 445.2 160,128.3 60,972.8 23.9 160,128.3 60,972.8 23.9 169,452.2 5,522.8 0.0 63,613.6 63,312.9 62,462.9 62,454.4 24,258.2 25,857.5 25,857.5 25,859.0 199 Non-Appropriated Funds FY 2011 Actual Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2013 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 182,704.9 336,802.6 340,720.1 288,312.2 250,202.8 500,889.8 604,807.3 460,904.7 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 8,356.8 16,778.0 0.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 The Executive recommends that the School Facilities Board (SFB) transition its Building Renewal program from formula-based aid to an inventory-based system. Instead of simply distributing Building Renewal funds to the districts, SFB would maintain a detailed database of all major school systems and replace systems pursuant to a replacement schedule. This approach better utilizes scarce resources because it ensures that funds are spent on the highest priority projects needed to maintain districts at minimum adequacy standards. Additionally, this approach better communicates school capital needs to State appropriators. A life-cycle replacement schedule system has been used effectively in New Mexico and other states to accommodate school capital needs. Standard Adjustments Retirement Standard Adjustment 2.9 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 2.9 Rent Standard Adjustment 6.2 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund 6.2 Health Insurance Rate Reduction (6.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (6.4) Baseline Adjustments New Construction Lease-to-Own Debt Service 9,323.9 The Executive recommends $9.3 million for increased lease-toown debt service for previously authorized new school construction. General Fund Eliminate One-Time Building Renewal Grant Funding 9,323.9 (2,667.9) (2,667.9) Other Adjustments Three-Year Building Renewal Grant Program 200 In order to create and maintain the database needed for a replacement-based system, the Executive recommends $933,500 from the General Fund for SFB to purchase the subscription for an online preventive maintenance system for all school districts. The districts would be required to use the system in order to receive Building Renewal grants. The Executive estimates that the online preventive maintenance system will cost $0.96 per student in FY 2013 (approximately $933,500) and $0.72 per student (approximately $693,000) in each subsequent year. Finally, in order to execute this comprehensive effort of (a) creating an inventory of all systems, (b) training districts on effective preventative maintenance, and (c) inspecting all Building Renewal grant requests, the Executive recommends $871,400 to pay for 6.5 unfilled FTE positions and 3.0 new FTE positions. General Fund The Executive recommends a $100.0 million FY 2012 supplemental appropriation for Building Renewal Grants. These funds would be deposited into the non-appropriated Building Renewal Grant Fund from which grants would be issued through FY 2015. Therefore, the ongoing $2.7 million appropriation for Building Renewal Grants must be eliminated in FY 2013. General Fund The Executive estimates that it will take three years for school districts and SFB to inventory all systems and move to this new approach. To bridge the gap, the Executive recommends a threeyear, $100.0 million Building Renewal appropriation from the General Fund to be deposited into the non-appropriated Building Renewal Grants Fund to pay for critical projects. On an annual basis, the $100.0 million represents only 55% of the average Building Renewal spending by districts from FY 2002 to FY 2009. The $100.0 million will be a supplemental appropriation for FY 2012. No additional Building Renewal grant funds will be appropriated for FY 2013 through FY 2015. 1,804.9 1,804.9 AG Pro-Rata Appropriation (5.2) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (5.2) State Employee Pay Adjustment 46.9 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. School Facilities Board FY 2013 Executive Budget FY 2013 General Fund 46.9 FY 2012 Supplemental Recommendations FY 2012 Three-Year Building Renewal Grant Program 100,000.0 The $2.7 million appropriation for Building Renewal grants in FY 2012 represents only 1.1% of the amount stipulated by the Building Renewal formula. In addition, because of reduced property valuations, many districts have not been able to bond to maintain their buildings. Increasingly, maintenance of school facilities is being deferred, resulting in greater expenditures in the long run and hazardous conditions in the short run. SFB must have funds available before the beginning of FY 2013 in order to begin addressing critical needs. Therefore, the Executive recommends a one-time $100.0 million supplemental appropriation for Building Renewal grants in FY 2012. Of this amount, $37,800 is to pay for three positions that will set the groundwork for the widespread implementation of the Building Renewal grant program in FY 2013. General Fund 100,000.0 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 96 94 96 98 Percent of all school districts rating the Boards' services as satisfactory, good, or excellent in annual survey Percent of all school district schools 8 11 20 20 inspected to ensure minimum adequacy guidelines staff of the School Facilities Board was unable to meet its performance target due to lack of  The staff. Due to budget reductions, two (2) of the four (4) staff positions that perform inspections have been cut. Percent of inspected schools 79 36 40 40 determined to have an adequate preventative maintenance program Number of new school construction 6 0 2 6 projects completed The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail School Facilities Board 201 STA Registered Voters As Of January 1 Department of State - Secretary of State Mission: To help all Arizonans enjoy a better quality of life through participation, understanding, and confidence in state government by providing fair, honest, and accurate elections; keeping complete and accurate records that are accessible to the public; and providing excellent service to enhance business formation, protect business property, and enable business transactions. 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 As a division of the Department of State, the mission of the Arizona State Library, Archives and Public Records is to serve Arizona government and Arizonans by providing access to public information, fostering historical/cultural collaborative research and information projects, and ensuring that Arizona's history is documented and preserved. Description: The Department of State is headed by a publicly elected Secretary of State, who serves as Acting Governor in the absence of the Governor and succeeds the Governor should a vacancy occur. The Secretary of State is the keeper of the Great Seal of the State of Arizona and is also the Chief State Election Officer who administers election functions, including canvass and certification of statewide elections, and coordinates statewide voter registration. The Secretary of State's office receives and records various filings, including Uniform Commercial Code transactions, trademark and trade name registrations, and limited partnership and limited liability partnership filings. The Office also registers lobbyists and accepts periodic lobbyist and campaign finance filings; publishes all official acts of the State of Arizona including laws, the Arizona Administrative Code, and the Arizona Administrative Register; files the notices of the Governor's appointments to State boards and commissions; appoints notaries public; and applies apostilles to all international transactions. The Arizona State Library, Archives and Public Records division provides general information services as well as research and reference services in the subject areas of law, government, public policy, genealogy, and Arizoniana. The division administers state and federal grants for public libraries and offers consultant services to both public libraries and government agencies. The division also offers special library and information services for anyone who is unable to read or use standard printed materials as a result of temporary or permanent visual or physical limitations, manages public record archival retention programs, and creates exhibits to educate the public regarding governmental and Arizona history and the legislative process. 0 General Fund and Total Funds Expenditure $ 30,000 $ 25,000 $ 20,000 $ 15,000 $ 10,000 $ 5,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Constitution and Administration Business Services Public Services Election Services Library, Archives and Public Records 1,269.9 1,038.6 1,038.6 1,072.2 944.6 308.5 5,271.9 6,570.0 988.9 312.9 7,480.5 6,991.5 988.9 312.9 7,480.5 6,991.5 1,025.6 329.6 7,429.8 9,260.1 Agency - Approp. Funds 14,364.9 16,812.4 16,812.4 19,117.2 139.1 5,254.5 2,375.1 1,115.8 14.8 19.7 0.3 646.6 4,797.9 94.4 15.8 30.0 139.1 5,604.6 2,566.9 2,423.8 16.4 19.7 0.3 821.9 5,150.4 162.6 15.8 30.0 139.1 5,604.6 2,566.9 2,423.8 16.4 19.7 0.3 821.9 5,150.4 162.6 15.8 30.0 141.1 5,955.0 2,615.9 2,418.8 16.4 19.7 0.3 821.9 7,098.7 162.6 15.8 (7.8) 14,364.9 16,812.4 16,812.4 19,117.2 12,308.0 1,610.0 13,309.4 2,934.2 13,309.4 2,934.2 15,490.5 2,935.6 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Election Systems Improvement Fund 202 Department of State - Secretary of State FY 2013 Executive Budget Records Services Fund Agency - Approp. Funds 446.9 568.8 568.8 691.1 14,364.9 16,812.4 16,812.4 19,117.2 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Help America Vote Act 1,610.0 2,934.2 2,934.2 2,935.6 (HAVA) SLI Litigation Costs 0.0 85.0 85.0 0.0 SLI Records Services 446.9 568.8 568.8 691.1 SLI Library Grants-in-aid 476.1 651.4 651.4 651.4 SLI Radio Reading for the 97.0 97.0 97.0 97.0 Blind Non-Appropriated Funds FY 2011 Actual Address Confidentiality Program Fund Arizona Centennial Account Data Processing Acquisition Fund Federal Economic Recovery Fund Federal Grant Fund Gift Shop Revolving Fund Health Care Directives Registry Notary Bond Fund Standing Political Committee Administration Fund State Library Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 0.0 0.0 154.0 23.1 119.8 25.6 120.2 25.6 120.2 26.0 120.2 145.7 762.2 762.3 762.2 5,437.3 89.8 0.3 5,332.2 89.7 0.0 4,672.2 91.1 0.0 4,702.8 75.6 0.0 78.5 45.4 147.5 16.9 102.3 16.9 97.3 17.4 229.2 324.9 324.9 326.6 6,169.1 6,819.2 6,115.5 6,282.1 20,534.0 23,631.6 22,927.9 25,399.4 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 9,064.9 7,573.7 4,051.7 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. FY 2013 Health Insurance Rate Reduction (78.6) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (72.3) Election Systems Improvement Fund (1.2) Records Services Fund (5.1) Other Adjustments Records Services Employees 107.6 The Executive recommends an increase of 2.0 FTE positions for the Records Services program. These employees would specialize in creating microfilm from hard copy to better meet customer demand for such archiving projects. These employees would also assist in transporting records as this area is short-staffed and law prohibits the Agency’s temporary workers from assisting in this duty. Filling both of these needs would help stabilize program revenues and allow the Agency to better meet its statutory obligations. Records Services Fund 107.6 Persistent Digital Archives and Library Systems 178.0 To help establish a preservation program for electronic records, the Executive recommends funding to continue software development for the Persistent Digital Archives and Library Systems program. General Fund 178.0 Chavez Litigation Costs (85.0) The Executive recommends the elimination of the Litigation Costs special line item. This funding was appropriated for costs associated with the Chavez v. Brewer case, which has been closed. General Fund (85.0) State Grants-in-Aid Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 32.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 0.0 The Executive recommends designating as a continuing appropriation the FY 2013 State Grants-in-Aid special line item. These funds are used for library construction projects that often take more than one year to complete. AG Pro-Rata Appropriation (37.8) Election Systems Improvement Fund 0.3 The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. Records Services Fund 2.1 General Fund General Fund Rent Standard Adjustment 29.6 1,850.3 (35.4) Election Systems Improvement Fund (0.3) Records Services Fund (2.2) This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. State Employee Pay Adjustment General Fund In conjunction with personnel reform, the Executive recommends Agency Operating Detail 1,850.3 Department of State - Secretary of State 338.4 203 FY 2013 a 5% pay increase for eligible employees. General Fund 315.9 Election Systems Improvement Fund 2.6 Records Services Fund 19.9 Performance Measures FY 2010 Actual Percent of votes cast on provisional ballots compared to total voter registration Total voter registration FY 2011 Actual 2 FY 2012 Expected 2 FY 2013 Expected 2 2 3,093,647 3,146,418 3,250,000 3,300,000 Percent of delinquent campaign finance filings Percent of delinquent elected official financial disclosure statements Percent of delinquent lobbyist reports 9.94 7.66 9.0 9.0 1.3 0 2.0 2.0 8.3 54 25 25 Percent of staff indicating they feel they have the necessary resources to effectively perform their job Average number of business days to process charitable organizations registrations Average number of business days to process trade name applications Average number of business days to process trademark applications Average number of business days to process Uniform Commercial Code filings Average number of business days to process athlete agents registrations Average number of business days to process telephone solicitors registrations Average number of business days to process notary commissions Average number of business days to process limited/limited liability partnerships and foreign limited liability partnerships filings Percent of customers indicating they found the public information they were seeking Percent of statutory publications provided Collaboration - Total activities/contacts Leg info services - Total activities/contacts Public Access - Total contacts (in thousands) Public Access - Customer satisfaction 100 100 100 100 5 7 7 7 6 5 5 5 7 5 5 5 3 3 3 3 3 1 1 1 3 7 7 7 4 5 5 5 3 5 3 3 100 100 100 100 100 100 100 100 294,199 221,774 130,700 130,700 16,957 18,941 16,355 16,355 87,303.8 77,750.9 77,992.2 77,992.2 Preservation - Total items/contacts (in thousands) 7.6 7.8 7.6 7.6 57,645.3 13,659.7 13,740.0 13,740.0 The Executive recommends a lump-sum appropriation to the agency with special line items. 204 Department of State - Secretary of State FY 2013 Executive Budget SBO Admin - Special Services State Boards Office Agency - Approp. Funds Mission: To provide effective and efficient support services to small licensing agencies. 205.8 211.6 211.6 231.0 205.8 211.6 211.6 231.0 Executive Appropriation Recommendations Description: The State Boards Office operates within the Department of Administration and offers support services to small licensing agencies in the areas of reception services, budgeting, personnel, accounting, and payroll. Total Claims Processed FY 2013 Standard Adjustments Retirement Standard Adjustment The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Special Services Fund 1,800 1,600 Rent Standard Adjustment 1,400 0.5 0.5 14.0 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 1,200 1,000 800 600 400 200 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure Special Services Fund 14.0 Health Insurance Rate Reduction (1.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Special Services Fund $ 300 Other Adjustments $ 250 AG Pro-Rata Appropriation $ 200 The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 150 Special Services Fund $ 100 $ 50 State Employee Pay Adjustment $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Program/Cost Center Support Services FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 205.8 211.6 211.6 231.0 Agency - Approp. Funds 205.8 211.6 211.6 231.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 3.0 119.1 45.5 0.4 0.0 0.0 0.0 31.8 9.0 0.0 3.0 127.6 54.5 0.4 0.0 0.0 0.0 29.1 0.0 0.0 3.0 127.6 54.5 0.4 0.0 0.0 0.0 29.1 0.0 0.0 3.0 134.0 54.3 0.4 0.0 0.0 0.0 43.1 0.0 (0.9) 205.8 211.6 211.6 231.0 Agency - Approp. Funds (0.9) (0.9) 7.7 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Special Services Fund Agency Summary - Appropriated Funds (1.9) 7.7 The Executive recommends a lump-sum appropriation to the agency. Appropriated Fund Agency Operating Detail State Boards Office 205 TXA Agency - Approp. Funds State Board of Tax Appeals Mission: To provide an independent appeals process for taxpayers with adverse decisions from the Department of Revenue and Office of Administrative Hearings, and to resolve jurisdictional disputes between municipalities regarding the imposition of transaction privilege and use taxes. Description: The State Board of Tax Appeals hears and decides appeals filed by taxpayers and Arizona municipalities concerning income, transaction privilege, use, luxury, and estate taxes. Number of Tax Appeal Cases 160 249.4 253.4 253.4 263.0 249.4 253.4 253.4 263.0 249.4 253.4 253.4 263.0 Appropriated Fund General Fund Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 0.6 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.6 120 Rent Standard Adjustment 0.8 100 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 140 80 60 General Fund 40 20 0.8 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (0.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (0.9) $ 280 Other Adjustments $ 270 AG Pro-Rata Appropriation $ 260 (1.2) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. $ 250 $ 240 $ 230 $ 220 $ 210 General Fund (1.2) State Employee Pay Adjustment 10.2 $ 200 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. General Fund FY 2012 Exec. Rec. FY 2013 Exec. Rec. State Board of Tax Appeals 249.4 253.4 253.4 263.0 Agency - Approp. Funds 249.4 253.4 253.4 263.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out 206 4.0 160.5 46.1 1.1 0.3 0.0 0.0 41.4 0.0 0.0 4.0 170.9 42.6 1.1 0.4 0.0 0.0 38.4 0.0 0.0 4.0 170.9 42.6 1.1 0.4 0.0 0.0 38.4 0.0 0.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. 4.0 179.4 44.0 1.1 0.4 0.0 0.0 39.2 0.0 (1.2) 10.2 Performance Measures Caseload processing (and number of issues) Number of tax appeals resolved Number backlogged requiring written decision Number of months to process appeal FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 23(47) 43(95) 65(110) 75(150) 9 14 35 45 1 4 15 15 7.5 7 6.5 6.5 The Executive recommends a lump-sum appropriation to the agency. State Board of Tax Appeals FY 2013 Executive Budget TEA Transfers Out State Board of Technical Registration Mission: To protect the public by setting appropriate registration qualifications and enforcing State Statutes relating to the practice of all Board regulated professions and occupations. Description: The Agency's duties are to screen applicants; adopt and administer qualifying examinations as needed to determine whether minimum standards for registration or certification have been satisfied; to enforce professional practice standards for registrants and certificate holders; and to enforce statutes relating to unlicensed practice. Agency - Approp. Funds 46.5 46.5 46.5 46.5 1,537.2 1,834.9 1,834.9 1,882.4 1,537.2 1,834.9 1,834.9 1,882.4 1,537.2 1,834.9 1,834.9 1,882.4 Appropriated Fund Technical Registration Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 3.1 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Number of Licensees 45,000 Technical Registration Board Fund 3.1 30,000 Rent Standard Adjustment 4.3 25,000 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 40,000 35,000 20,000 15,000 Technical Registration Board Fund 10,000 4.3 5,000 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (9.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Technical Registration Board Fund $ 1,600 (9.9) $ 1,400 Other Adjustments $ 1,200 Continuation of One-Time Funding $ 1,000 $ 800 $ 600 $ 400 $ 200 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 0.0 The Executive recommends continuing the increase of $100,000 from the Technical Registration Fund that was added in FY 2012 for a computer system upgrade. The continued funding will contribute to the transition from the Board's current system (AS400) to a SQL server that will be utilized until the new database system is completed. Continuation of funding is recommended because initial estimates for the project have more than doubled. Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,537.2 1,834.9 1,834.9 1,882.4 1,537.2 1,834.9 1,834.9 1,882.4 23.0 740.4 293.8 56.8 4.5 6.1 0.0 357.2 31.9 23.0 826.5 323.0 67.1 12.4 16.0 0.0 538.5 4.9 23.0 826.5 323.0 67.1 12.4 16.0 0.0 538.5 4.9 23.0 867.8 324.9 67.1 12.4 16.0 0.0 542.8 4.9 State Employee Pay Adjustment 50.0 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Technical Registration Board Fund 50.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency Operating Detail Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Total number of professional licensees 32,018 32,018 32,018 32,018 Percent of persons grading response to request for information as good or better Percent of complaints resolved by informal methods State Board of Technical Registration 100 100 100 100 100 100 100 100 207 Performance Measures Number of complaints received FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 154 101 154 154 The Executive recommends a lump-sum appropriation to the agency. 208 State Board of Technical Registration FY 2013 Executive Budget TOA Transfers Out Arizona Office of Tourism Agency - Approp. Funds Mission: To enhance the State’s economy by expanding travel activity through tourism promotion and development. 0.0 0.0 0.0 7,000.0 0.0 0.0 0.0 7,000.0 0.0 0.0 0.0 7,000.0 0.0 0.0 0.0 7,000.0 Appropriated Fund General Fund Description: The Arizona Office of Tourism (AOT) develops and executes a national, international, and in-state marketing plan, promotes Arizona’s tourism-related businesses, manages research that guides state-wide tourism development, is a central clearinghouse for tourism-related data, and provides information and assistance as needed by citizens, businesses, industry organizations, and governmental agencies on matters related to tourism. Domestic Overnight Visitation (millions) Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Tourism Fund Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 10,709.7 14,887.0 14,887.0 14,959.5 10,709.7 14,887.0 14,887.0 14,959.5 10,709.7 14,887.0 14,887.0 21,959.5 Executive Appropriation Recommendations FY 2013 40 Other Adjustments 35 Investing in Tourism 30 25 7,000.0 In contrast to recent years, domestic and international tourism activity is on the upswing, and many states that compete with Arizona for tourism dollars are increasing their tourism budgets to take advantage of immediate opportunities. 20 15 10 5 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 25,000 $ 20,000 To help Arizona’s tourism and hospitality industries – particularly in the rural areas – capitalize on this positive trend, the Executive recommends depositing $7.0 million from the General Fund into the non-appropriated Tourism Fund to market Arizona as a premier tourist destination. The Executive also recommends that the Tourism Funding formula be eliminated in lieu of appropriations to the Tourism Fund. This investment will fund such new programs as a privately matched national marketing campaign; an initiative to capture emerging visitor markets such as China, South Korea and Brazil; and a rural Arizona cooperative advertising program designed to encourage visitors to travel throughout rural Arizona. $ 15,000 $ 10,000 $ 5,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Office of Tourism Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 0.0 0.0 0.0 7,000.0 0.0 0.0 0.0 7,000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency Operating Detail Legislative action on this issue is vital. The FY 2011 budget (Laws 2010, 7th Special Session, Chapter 12) eliminated the Tourism formula and, in its place, allowed the Office of Tourism (AOT) to use up to 50% of the revenues from Maricopa County hotel taxes and rental car surcharges for AOT operational costs. (Previously, 100% of the aforementioned revenues were distributed to local government convention and visitor agencies in Maricopa County.) However, in Laws 2010, Chapter 128, the Legislature restricted AOT’s operational use of the Maricopa County funds to FY 2011 and FY 2012. Therefore, without new funding or a legal change, AOT will not be funded in FY 2013, and the Arizona economy will be denied a critical opportunity. General Fund Arizona Office of Tourism 7,000.0 Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected 209 Performance Measures FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 30.5 32.2 32.0 32.0 Number of domestic tourists (in millions) Number of visitors to the Welcome 123,500 119,357 120,000 120,000 Center Cost per inquiry for advertising18.6 19.4 19.4 19.4 generated requests for Arizona travel planning information (in dollars) Number of inquiries for Arizona 226 156 156 156 travel packet (in thousands) Research Studies show that travelers view a hard copy guide as a primary source of information.  Customer satisfaction rating for travel 4.5 4.2 4.3 4.3 kits program (scale 1-5, 5=very satisfied) new fulfillment warehouse contract was awarded mid-FY11 which resulted in a decline in A satisfaction. There is an expectation that future satisfaction estimates will improve since the warehouse is now in full operation. The Executive recommends a lump-sum appropriation to the agency. 210 Arizona Office of Tourism FY 2013 Executive Budget DTA Department of Transportation Mission: To provide products and services for a safe, efficient, cost-effective transportation system. Description: The Arizona Department of Transportation is the state agency responsible for collecting transportation revenues and for planning, constructing, and maintaining Arizona’s highway infrastructure for the safe and efficient movement of people and products throughout the state. The transportation system, with more than 21,000 travel-lane miles, supports the state’s economy and quality of life. In addition, ADOT issues development grants to public airports for improvement projects, and owns and maintains the Grand Canyon National Park Airport. ADOT works with various customers and stakeholders to identify significant transportation issues in Arizona and improve existing systems and practices. The Arizona Long-Range Transportation Plan builds on numerous studies and plans that guide ADOT in identifying future needs, developing solutions, and delivering projects that address the transportation challenges Arizona will face over the next 20 years. The Five-Year Transportation Facilities Construction Program and the collection of the maximum amount of transportation revenue are critical to the delivery of major state transportation projects by assisting decision makers in prioritizing projects and allocating corresponding funds. Total Commercial and Non-Commercial Vehicles 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Maintenance Lane Miles 29,500 29,000 28,500 28,000 27,500 27,000 26,500 26,000 25,500 25,000 24,500 24,000 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure The Motor Vehicle Division (MVD) is responsible for providing motor vehicle title and registration services, issuing driver credentials, e-government (ServiceArizona) services and commercial motor carrier services. The division also operates several information call centers. $ 3,000,000 $ 2,500,000 $ 2,000,000 $ 1,500,000 The Enforcement and Compliance Division is responsible for commercial vehicle enforcement, registration compliance, and conducting administrative hearings involving DUI-related offenses and driver license suspension/revocation. It also oversees the agency's Office of the Inspector General. Revenues collected from fuel taxes, motor carrier fees, motor vehicle registration fees, vehicle license taxes (VLT), and other miscellaneous fees build and operate the state’s transportation systems and fund other related expenditures. The health of these revenues directly impacts ADOT’s ability to successfully deliver a range of transportation projects that will help create jobs and deliver economic and quality-of-life benefits for Arizona residents and businesses. $ 1,000,000 $ 500,000 $0 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Administration Intermodal Transportation Motor Vehicle Division 81,556.6 191,061.0 77,511.8 61,953.4 207,220.4 90,817.8 61,953.4 207,220.4 90,817.8 63,035.0 209,240.6 92,662.8 350,129.4 359,991.6 359,991.6 364,938.4 4,548.0 114,396.4 55,267.1 9,354.6 990.0 112.5 0.3 4,548.0 125,117.6 63,804.6 9,636.9 937.6 80.2 0.3 4,548.0 125,117.6 63,804.6 9,636.9 937.6 80.2 0.3 4,548.0 131,373.5 63,320.7 9,636.9 937.6 80.2 0.3 Agency - Approp. Funds Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Agency Operating Detail Department of Transportation 211 Other Operating Expenses Equipment Capital Outlay Cost Allocation Transfers Out Agency - Approp. Funds 134,966.4 13,133.3 15,118.1 (10,368.2) 17,158.9 136,030.4 6,434.1 13,620.9 (10,338.7) 14,667.7 136,030.4 6,434.1 13,620.9 (10,338.7) 14,667.7 135,205.2 6,434.1 13,620.9 (10,338.7) 14,667.7 350,129.4 359,991.6 359,991.6 364,938.4 Appropriated Fund General Fund State Aviation Fund State Highway Fund Transportation Department Equipment Fund Safety Enforcement and Transportation Infrastructure Air Quality Fund Vehicle Inspection & Title Enforcement Motor Vehicle Liability Insurance Enforcement Driving Under Influence Abatement Fund Highway User Revenue Fund 44.5 1,585.4 325,527.1 18,933.1 50.2 1,577.8 239,494.2 27,416.9 50.2 1,577.8 239,494.2 27,416.9 51.3 1,608.7 242,858.3 27,119.9 1,647.8 1,866.0 1,866.0 1,898.4 28.3 867.4 72.2 1,434.4 72.2 1,434.4 74.9 1,476.0 835.4 1,052.6 1,052.6 1,088.1 148.1 146.9 146.9 153.4 512.3 86,880.4 86,880.4 88,609.4 Agency - Approp. Funds 350,129.4 359,991.6 359,991.6 364,938.4 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Attorney General Legal 2,170.0 2,895.6 2,895.6 2,895.6 Services SLI New Third Party 497.1 937.0 937.0 964.6 Funding SLI Fraud Investigation 398.9 753.9 753.9 771.9 Non-Appropriated Funds FY 2011 Actual ADOT Federal Programs ADOT-Maricopa-RegionalArea Bond Revolving Arizona Highways Magazine Fund AZ Prof Baseball Club Special Plate Fund AZ Prof Basketball Club Special Plate Fund Bond Proceeds Cash Deposits Fund Debt Service Economic Strength Project Grant Anticipation Notes Fund Highway Expansion & Extension Loan Program Highway User Revenue Fund Indirect Cost Recovery Fund Local Agency Deposits Fund Motor Vehicle Liability Insurance Enforcement Fund 212 22,626.3 348,829.1 5,379.6 FY 2012 Expend. Plan 22,626.0 348,389.4 5,018.5 FY 2012 Exec. Rec. 22,626.0 348,389.4 5,018.5 FY 2013 Exec. Rec. 22,651.2 348,463.8 5,080.9 156.0 156.0 156.0 156.0 51.2 51.2 51.2 51.2 332,449.1 12.5 333,654.3 312.3 88,826.3 332,449.1 12.5 333,654.3 312.3 88,826.3 332,449.1 12.5 333,654.3 312.3 88,826.3 333,295.2 12.5 333,654.3 312.3 88,826.3 83.5 83.5 83.5 85.9 556,792.0 635,913.7 556,698.0 556,698.0 (42.9) 0.0 0.0 0.0 167,647.1 167,647.1 167,647.1 167,670.7 324.2 317.5 317.5 317.5 Non-Appropriated Funds FY 2011 Actual Motorcycle Safety Fund Railroad Corridor Acquisition Fund Safety Enforcement and Transportation Infrastructure State Aviation Fund State Highway Fund Statewide Employee Recognition Gifts/Donations Statewide Special Plates Fund FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 70.9 4.7 27.9 154.7 27.9 154.7 27.9 (16.3) 1,518.8 1,509.1 1,509.1 1,559.1 11,749.0 641,954.1 23.8 20,757.8 638,992.9 20.0 20,757.8 638,992.9 20.0 20,757.8 640,627.0 20.0 421.1 421.1 421.1 421.1 Agency - Nonapp. Funds 2,512,843.0 2,597,340.9 2,518,125.2 2,520,672.3 2,957,332.5 2,878,116.8 2,885,610.7 Agency Total - All Funds 2,862,972.4 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 843,835.9 727,487.8 725,750.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 475.4 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 0.1 State Aviation Fund 2.5 State Highway Fund 273.2 Transportation Department Equipment Fund 38.4 Safety Enforcement and Transportation Infrastructure Fund 2.9 Air Quality Fund 0.2 Vehicle Inspection and Title Enforcement Fund 3.3 Motor Vehicle Liability Insurance Enforcement Fund 2.6 Driving Under Influence Abatement Fund 0.4 Highway User Revenue Fund 151.8 Health Insurance Rate Reduction (2,288.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. State Aviation Fund (12.0) State Highway Fund (1,268.1) Transportation Department Equipment Fund Department of Transportation (122.6) FY 2013 Executive Budget FY 2013 Safety Enforcement and Transportation Infrastructure Fund (16.3) Air Quality Fund (0.9) Vehicle Inspection and Title Enforcement Fund (14.1) Motor Vehicle Liability Insurance Enforcement Fund (9.4) Highway User Revenue Fund (845.1) Other Adjustments Reduction of VLT Transfer 0.0 The Executive recommends reducing the Vehicle License Tax transfers in the amount of ($8.9 million) to provide funding from the State Highway Fund for the recommended state employee pay increase. Appropriation Adjustment to Reflect Revenues (825.2) The Executive recommends adjusting the appropriation for the Transportation Equipment Revolving Fund to mirror projected revenues in FY 2013. Transportation Department Equipment Fund (825.2) State Employee Pay Adjustment 7,585.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 1.0 State Aviation Fund 40.4 State Highway Fund 4,359.0 Transportation Department Equipment Fund 612.4 Safety Enforcement and Transportation Infrastructure Fund 45.8 Air Quality Fund 3.4 Vehicle Inspection and Title Enforcement Fund 52.4 Motor Vehicle Liability Insurance Enforcement Fund 42.3 Driving Under Influence Abatement Fund 6.1 Highway User Revenue Fund 2,422.3 Performance Measures FY 2010 Actual Percent projects completed on schedule Percent of dollars awarded vs. planned Highway User Revenue Fund revenue forecast range (percent) Regional Area Revolving Fund revenue forecast range (percent) Percent of highway construction projects completed on schedule FY 2011 Actual FY 2012 Expected FY 2013 Expected 95 98 95 95 100 100 100 100 -4.3 0.0 +2.0/-1.0 +2.0/-1.0 0 2.7 +2.0/-1.0 +2.0/-1.0 98 95.4 95 85 The Executive recommends a lump-sum appropriation by program with special line items. Agency Operating Detail Department of Transportation 213 TRA Equipment Transfers Out State Treasurer Mission: To protect taxpayer money by serving as the State's Bank and fiduciary agent, providing investment management, financial information and services. Description: The primary responsibilities of the elected State Treasurer are to receive and keep custody over all monies belonging to the State that are not required to be kept by some other entity; to pay warrants of the Department of Administration; and to keep an account of all monies received and disbursed. The Office also invests state monies and operates the local government investment pool for public entities throughout the State. Agency - Approp. Funds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (10.4) 3,564.5 3,795.9 3,795.9 5,726.2 1,083.1 0.0 1,115.1 50.0 1,115.1 50.0 1,115.1 0.0 0.0 2,436.7 0.0 2,493.5 0.0 2,493.5 1,800.0 2,609.0 44.7 87.3 87.3 202.1 0.0 50.0 50.0 0.0 3,564.5 3,795.9 3,795.9 5,726.2 Appropriated Fund General Fund Arizona State Retirement System Boating Safety Fund State Treasurer's Operating Fund State Treasurer's Management Fund Public Safety Personnel Retirement System Agency - Approp. Funds Total Assets Under Management, Deposits, Distributions (millions) The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Justice of the Peace 1,083.1 1,115.1 1,115.1 1,115.1 Salaries SLI PSPRS Study 0.0 100.0 100.0 0.0 Committee 160,000 140,000 120,000 100,000 80,000 Executive Appropriation Recommendations 60,000 40,000 FY 2013 20,000 Standard Adjustments 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Rent Standard Adjustment 34.2 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. General Fund and Total Funds Expenditure $ 120,000 State Treasurer's Operating Fund 34.2 $ 100,000 Health Insurance Rate Reduction (16.7) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. $ 80,000 $ 60,000 $ 40,000 State Treasurer's Operating Fund (16.7) $ 20,000 Baseline Adjustments $0 Retirement Study Committee Agency Summary - Appropriated Funds Program/Cost Center Treasurer's Office FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 3,564.5 3,795.9 3,795.9 5,726.2 Agency - Approp. Funds 3,564.5 3,795.9 3,795.9 5,726.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses 29.4 1,477.7 535.1 189.5 0.7 3.7 1,083.1 274.7 29.4 1,537.7 580.2 290.7 2.0 0.0 1,115.1 270.2 29.4 1,537.7 580.2 290.7 2.0 0.0 1,115.1 270.2 30.4 1,679.1 602.3 233.7 2.0 0.0 2,915.1 304.4 214 (100.0) The Executive does not recommend additional appropriations in FY 2013 to augment the one-time, non-lapsing funding provided in FY 2012 to implement and staff the Defined Contribution and Retirement System Study Committee. The Committee is required to report by December 31, 2012. Any unexpended or unencumbered monies left on September 30, 2013 will revert. Arizona State Retirement System-Non Appropriated Fund (50.0) Public Safety Personnel Retirement System (50.0) Transfer of Boating Safety Grants from The Parks Board 750.0 Laws 2011, Chapter 333 moves the administration of the Law Enforcement and Boating Safety Fund from the Parks Board to the Treasurer's Office. It also moves the responsibility for determining State Treasurer FY 2013 Executive Budget FY 2013 FY 2013 the allocation of grants from the Outdoor Recreation Coordinating Commission to the Game and Fish Commission, with the Treasurer's Office making the grant payments. Agencies paying the pro-rata. The Executive recommends moving the amount appropriated in FY 2012, $750,000, to the Treasurer's Office for grant payments. Boating Safety Fund 750.0 State Treasurer's Operating Fund (9.8) State Treasurer's Management Fund (0.6) State Employee Pay Adjustment 88.1 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. Other Adjustments State Treasurer's Operating Fund Investment Analyst State Treasurer's Management Fund 110.1 The Executive recommends an investment analyst position. Currently, the Office has an investment analysis team of three portfolio managers and a financial analyst to invest in the securities of 130 companies. The Treaurer expects to expand the number of companies to 200 and be able to increase the return to the State by over $3.0 million. In addition, the added analyst will help protect against unexpected downside investment risk. State Treasurer's Management Fund 110.1 Audit Services 25.0 Internal controls and financial oversight in the Treasurer’s Office have historically relied on self-inspection. The Treasurer recommends that, with deposits of more than $30.0 billion each year, more rigorous audits are needed. The Executive recommends continual outside audits of the internal policies and procedures of the Treasurer's Office. State Treasurer's Operating Fund Law Enforcement Grants 82.8 5.3 Performance Measures FY 2010 Actual Customer satisfaction rating for State Agency depositors (scale 1-8). Customer satisfaction rating for distribution recipients (scale 1-8). Number of non-compliant trades. Average days to correct noncompliant trades. FY 2011 Actual FY 2012 Expected FY 2013 Expected 7.53 7.74 7.10 7.10 7.29 7.74 7.10 7.10 0 0 3 3 0 0 1 1 The Executive recommends a lump-sum appropriation to the agency with special line items. 25.0 1,050.0 The Executive recommends an additional $1.1 million for local law enforcement and boating safety grants.The Law Enforcement and Boating Safety Fund receives part of the watercraft license tax for this purpose. During FY 2011 and FY 2012, the Parks Board, which administered the Fund at that time, was allowed to use $1.4 million from the Fund for operating the State Parks. This limited local law enforcement grants to only $750,000 for three counties: La Paz, Mohave, and Yuma. However, during the 2011 legislative session, the Parks Board supported moving the Fund away from the Parks Board and to the Treasurer's Office for law enforcement grants. For FY 2013, other funding sources are available to support the Parks Board. The Executive recommends using the law enforcement portion of the watercraft license tax for its statutorily intended purpose. Boating Safety Fund AG Pro-Rata Appropriation 1,050.0 (10.4) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agency Operating Detail State Treasurer 215 BRA Arizona Board of Regents Mission: To increase the educational attainment of Arizona citizens by producing enough high-quality university degrees for the State to be nationally competitive by the year 2020; to increase the prominence of the system's research enterprise so that it can contribute to the knowledge economy and improve the quality of life in Arizona; and to provide the educated workforce needed to fill shortages and to stimulate demand for higher paying jobs in Arizona. Description: The Arizona Board of Regents is the governing body for Arizona’s three state universities. Consistent with its constitutional authority, the Board makes planning and policy decisions regarding the state universities. The Board hires the university presidents and the president for the Board, to whom the Board assigns the responsibility of management. The Board is the legal entity responsible for the universities and accounts to the legislative and executive branches of government for the resources appropriated to the universities and the Board. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds 23.1 25.1 25.1 25.1 0.0 0.0 62.4 0.0 0.0 16,585.0 476.7 0.0 1,436.0 521.3 62.4 0.0 0.0 14,450.9 455.6 0.0 1,436.0 521.3 62.4 0.0 0.0 14,450.9 455.6 0.0 1,436.0 510.2 62.4 0.0 0.0 14,450.9 45,729.3 0.0 17,124.1 16,926.2 16,926.2 62,188.8 17,124.1 16,926.2 16,926.2 62,188.8 17,124.1 16,926.2 16,926.2 62,188.8 Appropriated Fund General Fund Agency - Approp. Funds 100,000 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI WICHE Office 125.0 125.0 125.0 125.0 SLI WICHE Student 4,106.0 4,106.0 4,106.0 4,106.0 Subsidies SLI Arizona Financial Aid 10,041.2 10,041.2 10,041.2 10,041.2 Trust - AFAT SLI Arizona Teachers 90.0 90.0 90.0 90.0 Incentive Program - ATIP SLI Arizona Transfer 213.7 213.7 213.7 213.7 Articulation Support System - ATASS SLI Math and Science 176.0 0.0 0.0 0.0 Teacher Initiative 80,000 Non-Appropriated Funds Arizona University System Enrollment (21st Day Fall) 140,000 120,000 FY 2011 Actual 60,000 40,000 20,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000 A & M College Land Earnings ABOR Local Fund Federal Grant Mathematics, Science and Special Education Teacher Student Loan Fund Military Institute Land Earnings Normal School Land Earnings Technology and Research Initiative Fund Universities Land Earnings University Capital Improvement Lease-toOwn and Bond Fund Agency - Nonapp. Funds $0 Agency Total - All Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 170.2 195.8 195.8 181.6 1,954.7 837.2 226.0 3,791.2 1,357.7 0.0 3,509.4 1,357.7 0.0 2,479.1 1,307.0 0.0 66.1 67.6 67.6 66.8 150.9 161.7 161.7 156.3 53,771.1 54,000.0 54,000.0 54,000.0 1,884.6 7,433.0 1,558.8 18,063.9 1,558.8 18,063.9 1,555.7 18,700.0 66,493.8 79,196.7 78,914.9 78,446.5 83,617.9 96,122.9 95,841.1 140,635.3 Federal Funds Expenditures - as reported by Agency FY 2011 Actual Agency Summary - Appropriated Funds Program/Cost Center Governance Student Assistance Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 2,372.2 14,751.9 2,350.3 14,575.9 2,350.3 14,575.9 47,612.9 14,575.9 17,124.1 16,926.2 16,926.2 62,188.8 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 837.2 1,357.7 1,306.3 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations 216 Arizona Board of Regents FY 2013 Executive Budget Performance Measures FY 2013 Standard Adjustments Retirement Standard Adjustment 2.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 2.7 Health Insurance Rate Reduction (13.8) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Number of first year Western Interstate Commission for Higher Education awards Percent of action plan objectives substantially completed Audits performed on universities Total number of Western Interstate Commission for Higher Education awards FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 46 53 57 52 0 0 0 0 4 36 42 48 199 190 178 187 The Executive recommends a lump-sum appropriation to the agency with special line items. (13.8) Other Adjustments University Performance Funding 30,000.0 The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund 30,000.0 Course Redesign Technology and Capital 15,273.7 The Executive recommends $15.3 million for innovative course redesign technologies and capital improvements that will maintain or improve learning outcomes and decrease per-student costs for large enrollment/high failure-rate classes. Of the $15.3 million, the Board of Regents will allocate $12.0 million to ASU and $3.3 million to NAU. The use of these technologies will allow ASU and NAU to decrease labor costs while maintaining or improving course quality and learning outcomes. ASU and NAU must have Boardapproved plans before the funds are distributed, and the Board must review the plans before October 1, 2012. General Fund 15,273.7 Performance Measures FY 2010 Actual Agency Operating Detail FY 2011 Actual FY 2012 Expected FY 2013 Expected Arizona Board of Regents 217 ASA Institutional Support ASU - Tempe Mission: To provide outstanding programs of undergraduate and graduate education, cutting-edge research, and public service for the citizens of the State of Arizona with special emphasis on the Phoenix metropolitan area. Description: Arizona State University at the Tempe Campus, which includes the Downtown Phoenix campus, is a major public research university offering programs from the baccalaureate through the doctorate to over 59,000 Tempe campus and over 17,000 Downtown campus full-time and part-time students and applying the strongest features of the traditional major research university to the rapidly evolving needs of the metropolitan Phoenix area and Arizona. The Tempe campus plays an extensive role within Arizona State University by providing high quality graduate training at the doctoral level and serving as the only Carnegie Foundation-designated Doctoral/Research-Extensive campus in the metropolitan Phoenix area. 142,928.9 143,124.6 143,124.6 142,833.1 Agency - Approp. Funds 677,894.1 701,637.2 701,637.2 692,613.2 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 6,868.8 402,959.1 121,609.4 64,070.8 233.2 3,711.1 0.0 60,317.9 24,992.6 6,097.9 393,070.9 126,209.4 76,486.8 470.9 3,187.7 0.0 80,427.7 21,783.8 6,097.9 393,070.9 126,209.4 76,486.8 470.9 3,187.7 0.0 80,427.7 21,783.8 6,097.9 393,070.9 123,275.5 76,486.8 470.9 3,187.7 0.0 74,337.6 21,783.8 677,894.1 701,637.2 701,637.2 692,613.2 326,352.3 351,541.8 247,742.9 453,894.3 247,742.9 453,894.3 238,718.9 453,894.3 677,894.1 701,637.2 701,637.2 692,613.2 Agency - Approp. Funds Appropriated Fund General Fund ASU Collections Appropriated Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Full-time Enrollment (21st Day Fall) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure FY 2012 Exec. Rec. FY 2013 Exec. Rec. Auxiliary Funds Designated Funds Endowment and Life Income Federal Economic Recovery Fund Federal Grants Federal Indirect Cost Recovery Fund Indirect Cost Recovery Fund Loan Fund Restricted Funds 168,717.9 363,812.1 19.9 124,209.0 459,064.4 0.0 124,209.0 459,064.4 0.0 124,888.6 462,136.9 0.0 866.9 0.0 0.0 0.0 259,775.5 48,073.7 283,146.9 52,879.0 283,146.9 52,879.0 292,260.6 53,408.0 (857.8) 5,912.4 5,912.4 5,971.0 (0.4) 102,727.2 0.0 120,751.3 0.0 120,751.3 0.0 121,469.0 Agency - Nonapp. Funds 943,135.0 1,045,963.0 1,045,963.0 1,060,134.2 1,621,029.1 1,747,600.2 1,747,600.2 1,752,747.4 Agency Total - All Funds $ 800,000 FY 2012 Expend. Plan Federal Funds Expenditures - as reported by Agency $ 700,000 FY 2011 Actual $ 600,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 308,716.1 336,025.9 346,843.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 500,000 $ 400,000 $ 300,000 $ 200,000 Executive Appropriation Recommendations $ 100,000 $0 FY 2013 Standard Adjustments Retirement Standard Adjustment Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Instruction Organized Research Public Service Academic Support Student Services 406,097.2 19,081.5 1,220.8 79,226.0 29,339.7 425,301.2 15,583.9 973.7 82,902.5 33,751.3 425,301.2 15,583.9 973.7 82,902.5 33,751.3 417,036.8 15,504.4 969.3 82,653.7 33,615.9 218 834.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund Health Insurance Rate Reduction 834.8 (3,768.7) The Executive recommendation includes a (13.2%) reduction in ASU - Tempe FY 2013 Executive Budget FY 2013 employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (3,768.7) Other Adjustments Performance Funding Set-Aside (6,090.1) The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund (6,090.1) Performance Measures Average years taken by freshman students to complete a baccalaureate degree program External dollars received for research and creative activity (in millions of dollars) First professional degrees granted Percent of graduating seniors who rate their overall university experience as good or excellent Percent of full-time undergraduate students enrolled per semester in three or more primary courses with ranked faculty Number of Bachelors degrees granted Percent of agency staff turnover (classified staff only) Doctorate degrees granted Masters degrees granted FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 4.7 4.6 4.6 4.5 318 232.8 260.7 292.3 166 201 208 216 93 94 95 95 83 81 81 81 9,339 9,863 10,113 10,503 15.9 20.9 18.0 17.0 476 518 514 522 3,074 3,561 3,584 3,698 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail ASU - Tempe 219 AXA Agency Summary - Appropriated Funds ASU - Polytechnic Mission: To emphasize professional and technological programs based in the liberal arts and sciences and engage in intellectual inquiry focused on addressing societal needs by offering undergraduate and graduate programs primarily in professional and technological fields and in selected areas of the liberal arts and sciences; engaging in forms of scholarship involved with discovering, integrating, applying, and transmitting knowledge to address the conditions and concerns of society; and working with community partners in accomplishing all aspects of this mission. Description: Arizona State University at the Polytechnic campus serves over 10,000 students and the metropolitan area through baccalaureate and graduate degree programs as well as through applied research and service. All programs at ASU at the Polytechnic campus provide students with the knowledge and extensive technological competence to succeed in their chosen professions and further learning. ASU at the Polytechnic campus offers a campus environment that places students at the center, embraces diversity and interdisciplinary inquiry, and strives to integrate the academic and social lives of students. ASU at the Polytechnic campus offers programs with outcomes directly relevant to the needs of society and the community, emphasizing collaboration and partnership to foster the educational, economic, and cultural development of local communities, the metropolitan area, the state, and the nation. Full-time Enrollment (21st Day Fall) Program/Cost Center Instruction Academic Support Student Services Institutional Support Agency - Approp. Funds 5,000 4,000 3,000 2,000 1,000 FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 31,136.5 8,129.2 4,119.1 17,230.1 27,869.1 8,986.4 4,456.9 17,337.1 27,869.1 8,986.4 4,456.9 17,337.1 27,257.2 8,973.5 4,448.1 17,320.6 60,614.9 58,649.5 58,649.5 57,999.4 516.0 28,345.4 7,972.9 14,505.8 18.7 192.7 0.0 8,615.5 963.9 424.0 24,665.1 7,994.3 16,850.8 8.0 140.0 0.0 8,177.1 814.2 424.0 24,665.1 7,994.3 16,850.8 8.0 140.0 0.0 8,177.1 814.2 424.0 24,665.1 7,813.1 16,850.8 8.0 140.0 0.0 7,708.2 814.2 60,614.9 58,649.5 58,649.5 57,999.4 25,101.5 33,513.4 19,076.8 37,572.7 19,076.8 37,572.7 18,426.7 37,572.7 2,000.0 2,000.0 2,000.0 2,000.0 60,614.9 58,649.5 58,649.5 57,999.4 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund General Fund ASU Collections Appropriated Technology and Research Initiative Fund Agency - Approp. Funds Non-Appropriated Funds FY 2011 Actual Auxiliary Funds Designated Funds Endowment and Life Income Federal Grants Federal Indirect Cost Recovery Fund Indirect Cost Recovery Fund Restricted Funds 6,000 FY 2011 Actual Agency - Nonapp. Funds FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. (172.8) 17,574.3 1.5 (46.1) 20,675.5 0.0 (46.1) 20,675.5 0.0 (62.0) 20,824.1 0.0 5,401.9 960.5 5,807.4 1,056.5 5,807.4 1,056.5 6,087.0 1,067.0 113.4 136.9 136.9 138.0 2,849.9 3,452.4 3,452.4 3,478.7 26,728.7 31,082.6 31,082.6 31,532.8 87,343.6 89,732.1 89,732.1 89,532.2 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual General Fund and Total Funds Expenditure $ 70,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 6,362.4 6,863.9 7,186.5 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 60,000 $ 50,000 $ 40,000 Executive Appropriation Recommendations $ 30,000 FY 2013 $ 20,000 $ 10,000 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 220 ASU - Polytechnic FY 2013 Executive Budget FY 2013 Standard Adjustments Retirement Standard Adjustment 55.3 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 55.3 Health Insurance Rate Reduction (236.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (236.5) Other Adjustments Performance Funding Set-Aside (468.9) The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund (468.9) Performance Measures FY 2010 Actual Average number of years taken to graduate for student who began as freshmen Percent of agency staff turnover (classified staff only) Percent of graduating students who rate their overall experience at ASU Polytechnic as good or excellent Fall semester enrollment (headcount) Percent of full-time undergraduate students enrolled per semester in three or more primary courses with ranked faculty Number of degrees granted FY 2011 Actual FY 2012 Expected FY 2013 Expected 5.4 4.8 5.0 5.0 15.8 17.7 15.2 14.8 94 92 93 93 9,146 9,752 10,000 10,500 85 78 78 78 1,193 1,357 1,387 1,438 Number of Bachelors degrees granted 945 1,103 1,131 1,175 Number of Masters degrees granted 248 246 248 255 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail ASU - Polytechnic 221 AWA ASU - West Mission: To become a comprehensive campus that balances the traditions of liberal arts education with responsiveness to the dynamics of workforce requirements. The West campus colleges and schools are committed to teaching and research that are innovative, interdisciplinary, collaborative and problem-based. Description: ASU at the West campus is located in Phoenix and serves over 12,000 residential and commuter students of diverse ages, ethnicity, and experience through baccalaureate programs, master’s programs, doctoral programs and certificate programs. The West campus focuses on developing a learning community that addresses the needs of a diverse metropolitan environment. It does this by offering learner-centered academic programs that enhance learning through teaching, service and enrichment opportunities; promoting discovery and innovation; pursuing new knowledge; introducing insights and creative ideas through instruction; encouraging direct involvement in new fields of inquiry; investigating important community-based issues; and integrating with the community through service based on scholarship. Academic Support Student Services Institutional Support Organized Research 14,531.2 9,910.2 18,610.1 8.1 12,452.6 7,889.5 16,580.6 0.0 12,452.6 7,889.5 16,580.6 0.0 12,428.5 7,866.0 16,546.6 0.0 Agency - Approp. Funds 74,955.5 67,038.3 67,038.3 65,987.8 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment 614.7 35,055.2 12,027.5 20,437.6 56.0 140.8 0.0 5,254.0 1,984.4 562.9 32,650.5 10,824.1 15,962.7 40.3 124.2 0.0 5,637.5 1,799.0 562.9 32,650.5 10,824.1 15,962.7 40.3 124.2 0.0 5,637.5 1,799.0 562.9 32,650.5 10,588.7 15,962.7 40.3 124.2 0.0 4,822.4 1,799.0 74,955.5 67,038.3 67,038.3 65,987.8 43,934.4 29,421.1 33,159.6 32,278.7 33,159.6 32,278.7 32,109.1 32,278.7 1,600.0 1,600.0 1,600.0 1,600.0 74,955.5 67,038.3 67,038.3 65,987.8 Agency - Approp. Funds Appropriated Fund General Fund ASU Collections Appropriated Technology and Research Initiative Fund Agency - Approp. Funds Non-Appropriated Funds Full-time Enrollment (21st Day Fall) FY 2011 Actual 9,000 Auxiliary Funds Designated Funds Endowment and Life Income Federal Grants Federal Indirect Cost Recovery Fund Indirect Cost Recovery Fund Restricted Funds 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 451.2 31,977.0 1.9 156.1 38,150.5 0.0 156.1 38,150.5 0.0 153.5 38,502.6 0.0 3,627.9 606.7 3,840.0 667.3 3,840.0 667.3 4,028.7 674.0 71.6 86.5 86.5 88.0 9,373.7 5,102.8 5,102.8 5,152.8 46,110.0 48,003.2 48,003.2 48,599.7 121,065.5 115,041.5 115,041.5 114,587.5 Agency - Nonapp. Funds Agency Total - All Funds General Fund and Total Funds Expenditure FY 2012 Expend. Plan Federal Funds Expenditures - as reported by Agency $ 90,000 FY 2011 Actual $ 80,000 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 4,234.6 4,507.3 4,721.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. $ 70,000 $ 60,000 $ 50,000 $ 40,000 $ 30,000 Executive Appropriation Recommendations $ 20,000 FY 2013 $ 10,000 Standard Adjustments $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Instruction Public Service 222 FY 2011 Actual 31,860.1 35.8 FY 2012 Approp. 30,115.6 0.0 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 30,115.6 0.0 29,146.7 0.0 Retirement Standard Adjustment 77.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund ASU - West 77.7 (313.0) FY 2013 Executive Budget FY 2013 Health Insurance Rate Reduction (313.0) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (313.0) Other Adjustments Performance Funding Set-Aside (815.1) The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund (815.1) Performance Measures FY 2010 Actual Percent of graduating seniors who rate their overall university experience as good or excellent Percent of full-time undergraduate students enrolled per semester in three or more primary courses with ranked faculty Number of degrees granted Number of Bachelors degrees granted Number of Masters degrees granted Fall semester enrollment (full-time equivalent) Percent of agency staff turnover (classified staff only) FY 2011 Actual FY 2012 Expected FY 2013 Expected 93 93 94 94 82 72 72 72 2,132 1,590 1,623 1,683 1,526 1,228 1,259 1,308 592 343 345 356 6,604 6,173 7,100 7,500 15.1 10.0 11.5 13.2 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail ASU - West 223 NAA Northern Arizona University Mission: To provide an outstanding undergraduate residential education strengthened by research, graduate and professional programs, distance delivery, and innovative new campuses and programs throughout the state. Description: Founded in 1899, Northern Arizona University is a vibrant community committed to teaching as learning, research as innovation, and service as shared leadership. Accredited by the North Central Association of Colleges and Schools, the university embraces diversity and promotes inclusion across the university community as a means to prepare graduates to contribute to the social, economic, and environmental needs of a culturally rich society. It inspires students to become active citizens, leaders, visionaries, and problem solvers with an understanding of global issues. Northern Arizona University, part of the Arizona University System, embraces the AUS vision of being a “top-performing state university system, nationally recognized for excellence in academic and research pursuits that support and stimulate a growing vibrant economy and a high quality of life for Arizonans.” In addition to integrating sustainability themes across curriculum, Northern Arizona University’s beautiful 740 acre campus models sustainable operations through multi-modal transportation, environmentally responsible waste disposal, energy-efficient green construction, and sustainability in food procurement. In August 2011, the university was awarded a silver rating from the Sustainability, Tracking, Assessment and Rating System (STARS). With a growing enrollment of 25,364 students from all 50 states and 78 countries, Northern Arizona University reaches out to students regionally with satellite campuses and opportunities for distance learning. From its inception, NAU has implemented innovative and accountable teaching practices, including the effective use of technology. General Fund and Total Funds Expenditure $ 250,000 $ 200,000 $ 150,000 $ 100,000 $ 50,000 $0 Agency Summary - Appropriated Funds Program/Cost Center FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. Instruction Organized Research Public Service Academic Support Student Services Institutional Support 121,476.1 3,100.7 4,483.6 19,714.6 16,464.4 51,359.9 111,199.0 2,189.2 4,287.4 17,184.6 13,458.9 51,281.6 111,199.0 2,189.2 4,287.4 17,184.6 13,458.9 51,281.6 108,897.2 2,193.0 4,294.2 17,211.1 13,480.3 51,340.9 Agency - Approp. Funds 216,599.3 199,600.7 199,600.7 197,416.8 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Capital Outlay Debt Service 1,966.3 129,516.2 41,916.8 4,670.2 450.6 644.0 0.0 29,147.3 1,605.3 2,748.9 5,900.0 2,057.2 126,472.4 42,725.0 1,973.5 455.5 0.0 0.0 19,299.9 1,069.8 1,704.6 5,900.0 2,057.2 126,472.4 42,725.0 1,973.5 455.5 0.0 0.0 19,299.9 1,069.8 1,704.6 5,900.0 2,057.2 126,472.4 43,045.0 1,973.5 455.5 0.0 0.0 16,796.0 1,069.8 1,704.6 5,900.0 216,599.3 199,600.7 199,600.7 197,416.8 135,089.2 81,510.1 101,861.8 97,738.9 101,861.8 97,738.9 99,677.9 97,738.9 216,599.3 199,600.7 199,600.7 197,416.8 Agency - Approp. Funds Appropriated Fund General Fund NAU Collections Appropriated Agency - Approp. Funds Full-time Enrollment (21st Day Fall) The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI NAU Yuma 3,103.6 2,970.8 2,970.8 2,976.0 25,000 Non-Appropriated Funds 20,000 FY 2011 Actual 15,000 10,000 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 224 Auxiliary Funds Designated Funds Federal Economic Recovery Fund Federal Grants Federal Indirect Cost Recovery Fund Northern Arizona University FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 63,291.3 108,356.0 291.7 63,967.9 142,290.0 0.0 63,967.9 142,290.0 0.0 66,212.4 130,425.0 0.0 72,781.7 3,174.5 73,509.5 3,206.4 73,509.5 3,206.4 74,277.4 3,240.0 FY 2013 Executive Budget Non-Appropriated Funds FY 2011 Actual Indirect Cost Recovery Fund Loan Fund Restricted Funds Agency - Nonapp. Funds Agency Total - All Funds FY 2012 Expend. Plan Performance Measures FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,592.2 1,608.1 1,608.1 1,624.3 281.6 33,054.4 275.0 33,384.9 275.0 33,384.9 280.0 33,739.6 282,823.4 318,241.8 318,241.8 309,798.7 499,422.7 517,842.5 517,842.5 507,215.4 46 52 52 52 4.6 4.7 4.6 4.6 Total degrees and certificates granted 5,759 5,685 (includes all campuses). Total degrees and certificates granted (includes all campuses). 5,700 5,700  Federal Funds Expenditures - as reported by Agency FY 2011 Actual Percent of graduating seniors who rate their overall university experience as good or excellent Doctorate degrees awarded in the DPT category. Average number of years taken to graduate for students who began as first-time, full-time freshmen. First-time, full-time freshmen FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 96 96 96 96 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 76,247.9 76,715.9 77,483.0 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above.  Bachelor degrees granted to statewide 992 1,067 1,075 1,075 students, (includes community campuses and online only). Bachelor degrees granted to statewide students, (includes community campuses and online only).  Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 338.8 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 338.8 Health Insurance Rate Reduction (18.9) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund Graduate degrees granted (Statewide 1,237 1,191 1,200 and Online only) Graduate degrees granted (Statewide and Online only, includes masters and doctorates.) 1,200 Graduate degrees awarded at the master's level Graduate degrees awarded at the doctoral level Percentage of full-time, undergraduate students enrolled per semester in three or more primary courses with ranked faculty Number of Bachelor degrees granted  Percent of agency staff turnover 1,697 1,704 1,725 1,725 45 43 45 45 77 72 74 74 3,333 3,717 3,500 3,500 14 10 11 11 The Executive recommends a lump-sum appropriation to the agency with special line items. (18.9) Other Adjustments Performance Funding Set-Aside (2,503.9) The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund (2,503.9) Performance Measures Agency Operating Detail Northern Arizona University 225 UAA University of Arizona - Main Campus Mission: To improve life for the people of Arizona and beyond through education, research, creative expression, and community engagement. Description: The University of Arizona in Tucson, including its branchcampuses in Sierra Vista and downtown Phoenix, is a land-grant, doctoral research university ranking among the nation’s best public universities. Its research and development expenditures place it among the nation’s top public universities and it is a member of the Association of American Universities. It offers a broad array of programs leading to degrees from baccalaureate through the doctorate for a total student body enrollment of 39,236 full-time and part-time students. As a land-grant university, it maintains programs in production agriculture and mining and serves the State through its cooperative extension services, technology transfer, economic development assistance, and cultural programming. The University provides distinguished undergraduate, graduate, and professional education; excels in basic and applied research and creative achievement; and promotes the integration of the product of these activities and achievements of regional, national, and international significance into everyday life. Full-time Enrollment (21st Day Fall) Instruction Organized Research Public Service Academic Support Student Services Instruction Institutional Support Agriculture U of A South Agency - Approp. Funds 208,207.4 25,279.8 3,696.1 51,693.2 13,256.8 14,253.0 83,929.1 49,415.3 6,139.3 208,207.4 25,279.8 3,696.1 51,693.2 13,256.8 14,253.0 83,929.1 49,415.3 6,139.3 201,813.9 25,140.4 3,674.6 51,448.6 13,182.7 14,253.0 83,802.9 49,125.2 6,101.7 521,495.6 455,870.0 455,870.0 448,543.0 5,805.5 312,989.8 96,947.2 16,341.0 230.1 639.1 12,855.8 0.0 72,544.8 8,947.8 5,805.5 266,139.9 98,693.2 15,236.6 600.9 107.4 8,128.7 0.0 65,480.7 1,482.6 5,805.5 266,139.9 98,693.2 15,236.6 600.9 107.4 8,128.7 0.0 65,480.7 1,482.6 5,805.5 266,139.9 96,488.2 15,236.6 600.9 107.4 8,128.7 0.0 60,358.7 1,482.6 521,495.6 455,870.0 455,870.0 448,543.0 270,215.3 251,280.3 208,367.0 247,503.0 208,367.0 247,503.0 201,040.0 247,503.0 521,495.6 455,870.0 455,870.0 448,543.0 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Library Acquisitions Aid to Others Other Operating Expenses Equipment Agency - Approp. Funds Appropriated Fund General Fund U of A Main Campus Collections - Appropriated Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Research Infrastructure 14,253.0 14,253.0 14,253.0 14,253.0 Lease-Purchase Payment 40,000 35,000 30,000 25,000 Non-Appropriated Funds 20,000 FY 2011 Actual 15,000 10,000 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 600,000 $ 500,000 $ 400,000 $ 300,000 $ 200,000 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 296,371.3 309,932.1 2,421.0 303,494.0 430,227.4 2,445.2 303,494.0 430,227.4 2,445.2 306,980.5 435,173.0 2,469.7 755.2 0.0 0.0 0.0 209,013.4 47,566.8 212,067.2 48,518.0 212,067.2 48,518.0 214,560.9 49,488.3 10,756.0 10,971.1 10,971.1 11,190.5 647.1 173,622.3 655.3 165,639.1 655.3 165,639.1 662.7 166,970.1 Agency - Nonapp. Funds 1,051,085.2 1,174,017.3 1,174,017.3 1,187,495.7 1,629,887.3 1,629,887.3 1,636,038.6 1,572,580.8 Federal Funds Expenditures - as reported by Agency $0 FY 2011 Actual Agency Summary - Appropriated Funds Program/Cost Center Auxiliary Funds Designated Funds Endowment and Life Income Federal Economic Recovery Fund Federal Grants Federal Indirect Cost Recovery Fund Indirect Cost Recovery Fund Loan Fund Restricted Funds Agency Total - All Funds $ 100,000 226 206,673.5 29,956.4 3,668.2 64,523.0 20,109.4 14,253.0 121,639.6 53,382.5 7,290.0 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 257,335.4 260,585.2 264,659.2 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. University of Arizona - Main Campus FY 2013 Executive Budget Performance Measures Executive Appropriation Recommendations FY 2013 Standard Adjustments  Retirement Standard Adjustment 599.3 General Fund 599.3 Health Insurance Rate Reduction Doctorate degrees granted  The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. FY 2010 FY 2011 FY 2012 Actual Actual Expected Perform. Measure Description change to reflect new IPEDS categories. 430 403 FY 2013 Expected 441 448 Perform. Measure Description change to reflect new IPEDS categories. The Executive recommends a lump-sum appropriation to the agency with special line items. (2,804.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (2,804.3) Other Adjustments Performance Funding Set-Aside (5,122.0) The FY 2012 budget (Laws 2011, Chapter 30) requires the Board of Regents to recommend a funding structure that includes performance and outcome based funding. Consistent with this transition, the Executive recommends moving to the Board of Regents $15.0 million of the Universities’ base funding (excluding the University of Arizona Health Sciences Center), allocated using each University’s share of total General Fund support. The State will match the $15.0 million, for a total of $30.0 million to be allocated by the Board of Regents to the Universities based on an agreed-upon performance funding formula. The Universities have published a formula recommendation that includes increases in degrees, credit hours and outside research funding. The Executive will work with the Legislature and the Universities in an effort to achieve a mutually agreeable performance funding formula. General Fund (5,122.0) Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected Average number of years taken to graduate for students who began as freshmen Agency staff turnover (percent) 4.5 4.5 4.4 4.4 12.8 12.3 12.5 12.5 Gifts, grants, and contracts (millions) 411 385 405 426 95 94 95 95 Graduating seniors who rate their overall experience as good or excellent (percent) Full-time undergraduate students enrolled per semester in three or more primary courses with ranked faculty (percentage) Total number of degrees granted 72 73 74 74 7,596 7,822 7,705 7,912 Bachelors degrees granted 5,785 5,780 5,738 5,878 Masters degrees granted 1,220 1,480 1,349 1,396 161 159 177 190 First Professional degrees granted Agency Operating Detail University of Arizona - Main Campus 227 UHA University of Arizona - Health Sciences Center Mission: To provide distinguished undergraduate, graduate, and professional health sciences education; to engage in basic and applied research of regional, national, and international significance; to create and disseminate knowledge; and to seek to integrate creative achievement into everyday life. Description: The Arizona Health Sciences Center (AHSC) in Tucson is the State’s only academic health sciences center. It provides the State and its people education, research, patient care, and services through its Colleges of Medicine, Nursing, Pharmacy, Public Health, Phoenix Bio-Medical Campus, University Medical Center, and university physicians. AHSC serves as the core of a broad network of State-wide health services, health education, health restoration, health promotion, and illness prevention. General Fund and Total Funds Expenditure $ 90,000 $ 80,000 $ 70,000 $ 60,000 $ 50,000 $ 40,000 Agency - Approp. Funds 96,488.3 96,488.3 95,837.5 74,334.2 24,846.5 55,334.3 41,154.0 55,334.3 41,154.0 54,683.5 41,154.0 99,180.7 96,488.3 96,488.3 95,837.5 Appropriated Fund General Fund U of A Main Campus Collections - Appropriated Agency - Approp. Funds The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Liver Research Institute 467.9 458.5 458.5 456.1 SLI Telemedicine Network 1,899.9 1,847.9 1,847.9 1,838.1 SLI Clinical Rural Rotations 418.0 357.6 357.6 355.9 SLI Clinical Teaching 8,622.2 8,097.0 8,097.0 8,037.7 Support Non-Appropriated Funds FY 2011 Actual Auxiliary Funds Designated Funds Endowment and Life Income Federal Grants Federal Indirect Cost Recovery Fund Indirect Cost Recovery Fund Restricted Funds Agency - Nonapp. Funds $ 30,000 99,180.7 FY 2012 Expend. Plan 12,681.2 18,479.0 (1,023.1) 12,681.2 18,479.0 (1,023.1) 12,834.4 18,710.6 (1,033.3) 77,812.4 24,629.0 78,861.5 25,121.7 78,861.5 25,121.7 79,586.1 25,624.1 5,146.5 5,249.4 5,249.4 5,354.5 102,100.3 114,131.9 114,131.9 115,580.6 238,789.9 253,501.6 253,501.6 256,657.1 337,970.6 349,989.9 349,989.9 352,494.6 Agency Total - All Funds $ 10,000 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Instruction Organized Research Public Service Public Service Academic Support Student Services Institutional Support College of Medicine Phoenix FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 43,772.1 4,770.1 2,883.6 8,622.2 14,688.6 1,441.7 1,839.2 21,163.2 48,252.8 3,665.7 2,695.5 8,097.0 15,958.3 1,513.4 1,483.7 14,821.9 48,252.8 3,665.7 2,695.5 8,097.0 15,958.3 1,513.4 1,483.7 14,821.9 47,927.1 3,641.9 2,680.9 8,037.7 15,862.8 1,504.3 1,472.3 14,710.5 Agency - Approp. Funds 99,180.7 96,488.3 96,488.3 95,837.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Library Acquisitions Aid to Others Other Operating Expenses Equipment 979.0 58,384.0 16,524.8 16,958.1 73.3 223.9 190.7 0.0 5,201.0 1,624.9 979.1 74,240.7 15,461.0 1,963.7 108.0 7.7 792.5 0.0 3,455.6 459.1 979.1 74,240.7 15,461.0 1,963.7 108.0 7.7 792.5 0.0 3,455.6 459.1 979.1 74,240.7 14,810.2 1,963.7 108.0 7.7 792.5 0.0 3,455.6 459.1 228 FY 2013 Exec. Rec. 11,951.1 18,163.6 (1,013.0) $ 20,000 $0 FY 2012 Exec. Rec. FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 102,430.8 103,983.2 105,561.5 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 131.5 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 131.5 Health Insurance Rate Reduction (782.3) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund University of Arizona - Health Sciences Center (782.3) Performance Measures FY 2010 Actual FY 2011 Actual FY 2012 Expected FY 2013 Expected FY 2013 Executive Budget Performance Measures Number of Degrees Granted BA/BS and MA/MS Number of degrees granted-PhD  FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 562 504 493 506 41 42 46 47 Perform. Measure Description change to reflect new IPEDS categories. The Executive recommends a lump-sum appropriation to the agency with special line items. Agency Operating Detail University of Arizona - Health Sciences Center 229 VSA Department of Veterans' Services Mission: To enrich and honor Arizona's veterans and their families through education, advocacy, and service. Description: The core business of the Arizona Department of Veterans' Services (ADVS) is assisting veterans and their eligible dependents obtain federal entitlements, such as VA claims for disability, pension and insurance. All other agency services are derived from this central premise. ADVS's largest Division is the Arizona State Veteran Home in Phoenix, a self-funded skilled nursing facility that provides long-term care services to veterans and their spouses. A second nursing facility in Tucson opened on Veterans' Day 2011. The Department also serves as financial guardian and/or conservator to incapacitated veterans and their eligible dependents, typically when their families are unable to provide that service for themselves. ADVS operates a state veteran cemetery in Sierra Vista. ADVS is designated as the State Approving Agency, working with institutions that provide education and training to veterans with educational benefits. ADVS also administers the "Troops to Teachers" program to help military personnel transition to new careers as public school teachers. Millions in Aid Received by Veterans 300 Veterans' Conservatorship/ Guardianship Veterans' Benefits Counseling Services State Veterans' Home Arizona Veterans' Cemeteries Agency - Approp. Funds 1,304.0 1,304.0 1,342.5 2,886.0 2,826.7 2,826.7 2,909.7 15,298.9 280.0 21,596.4 274.8 21,596.4 274.8 27,367.2 277.8 21,216.4 27,675.8 27,675.8 33,613.5 275.0 10,904.4 4,859.9 1,314.8 96.8 24.9 508.4 21.0 3,157.2 329.0 0.0 0.0 500.3 14,003.3 6,168.7 1,756.5 101.2 39.6 540.6 25.2 4,340.3 650.4 50.0 0.0 500.3 14,003.3 6,168.7 1,756.5 101.2 39.6 540.6 25.2 4,340.3 650.4 50.0 0.0 500.3 17,921.8 6,974.7 2,332.0 106.2 47.1 809.9 25.2 4,941.1 500.0 50.0 (94.5) 21,216.4 27,675.8 27,675.8 33,613.5 5,309.9 607.6 7,050.7 882.3 7,050.7 882.3 5,339.0 907.4 15,298.9 19,742.8 19,742.8 27,367.2 21,216.4 27,675.8 27,675.8 33,613.5 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Food Aid to Others Other Operating Expenses Equipment Capital Outlay Transfers Out Agency - Approp. Funds Appropriated Fund General Fund Veterans' Conservatorship Fund State Home for Veterans Trust Agency - Approp. Funds 250 1,089.8 150 The following is a list of Special Line Items (SLI) which are included in the numbers above but are reflected here for specific disclosure. SLI Veterans' Organizations 21.0 0.0 0.0 0.0 Contracts 100 Non-Appropriated Funds 200 FY 2011 Actual 50 0 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. 12,892.4 3,145.2 3,145.2 0.0 555.1 538.7 549.0 0.0 549.0 0.0 527.7 0.0 233.4 979.6 95.2 449.4 0.0 182.5 449.4 0.0 182.5 450.2 0.0 188.8 1.2 0.0 0.0 0.0 $ 15,000 Federal Economic Recovery Fund Federal Grant IGA and ISA Between State Agencies Military Family Relief Fund Military Installation Fund Southern Arizona Veterans Cemetery Statewide Employee Recognition Gifts/Donations Veterans' Donation Fund 760.5 2,900.8 2,900.8 1,710.9 $ 10,000 Agency - Nonapp. Funds 16,056.1 7,226.9 7,226.9 2,877.6 37,272.5 34,902.7 34,902.7 36,491.1 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 40,000 $ 35,000 $ 30,000 $ 25,000 $ 20,000 $ 5,000 Agency Total - All Funds $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Administration 230 FY 2011 Actual 1,661.7 FY 2012 Approp. 1,673.9 FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,673.9 1,716.3 Federal Funds Expenditures - as reported by Agency FY 2011 Actual FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 13,447.5 3,694.2 513.8 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Department of Veterans' Services FY 2013 Executive Budget FY 2013 Executive Appropriation Recommendations FY 2013 a 5% pay increase for eligible employees. General Fund Standard Adjustments Retirement Standard Adjustment 53.2 1.8 State Home for Veterans Trust Fund Health Insurance Rate Reduction 40.0 (144.5) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (34.2) Veterans' Conservatorship Fund State Home for Veterans Trust Fund (3.2) (107.1) Baseline Adjustments State Veteran Homes Operating Costs 5,259.6 FY 2010 Actual Human service specialist to client ratio FY 2013 Expected 274.5 310 350 90 90 90 Expenditures of federal dollars in 2,129 2,128 Arizona by the U.S. Department of Veterans Affairs (in millions of dollars) VA expenditures are reported as of 9/30 of the previous year. 2,139 2,149 The number of new clients were affected by the recent moratorium. Monetary awards reported on claims 227.5 and appeals filed by the state veterans' benefits counselors on behalf of Arizona veterans (expressed in millions of dollars for award the Department expects to receive) Percentage of customers rating the 96 overall delivery of service as 1 to 3, using a 1-5 scale where 1 represents "Extremely Satisfied" and 5 represents "Extremely Dissatisfied." The survey has been redesigned with a numeric score.   The Executive recommends the elimination of General Fund support as it will no longer be needed in FY 2013. As the veterans fill the Tucson home, additional staff will be needed to care for them in FY 2013. The revenues from these new clients should be adequate to support all costs from the State Home for Veterans Trust Fund.  State Home for Veterans Trust Fund 1:35 FY 2012 Expected 1:35  1:40 FY 2011 Actual 1:35 The State Veterans' Home in Tucson opened on Veterans' Day in 2011. In FY 2012, a General Fund appropriation allowed the Department to pay for costs associated with opening the Home in Tucson, as well as cover operating expenses until the Home received enough revenues to be self-funded. With an increasing census in the Tucson Home, the Department estimates that in FY 2013 revenues to the State Home for Veterans Trust Fund will be able to cover the costs of the two State Veteran Homes. General Fund 649.3 Performance Measures 11.4 Veterans' Conservatorship Fund 29.7 State Home for Veterans Trust Fund The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 184.9 Veterans' Conservatorship Fund The number of federal dollars per 5662 6,156 5,975 6,136 veteran entering the Arizona economy (expressed as dollars per Veteran per year) Expressed in terms of actual dollars; no "multiplier effect" has been included in the reported  figure. Percent of agency staff turnover 25.2 29.3 30 30 (covered positions) as reported by the Arizona Department of Administration Long-term care staff turnover has historically increased the agency's rate. Average annual occupancy rate (in 86.45 85.8 percent) Measurement is for the Phoenix Home (not the new Tucson facility)  Active caseload at end of fiscal year  240 240 90 91 250 260 Includes open decendent accounts. (1,853.6) 7,113.2 The Executive recommends a lump-sum appropriation to the agency with special line items. Other Adjustments AG Pro-Rata Appropriation (94.5) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund Veterans' Conservatorship Fund (20.2) (3.3) State Home for Veterans Trust Fund (71.0) State Employee Pay Adjustment 863.9 In conjunction with personnel reform, the Executive recommends Agency Operating Detail Department of Veterans' Services 231 VTA State Veterinary Medical Examining Board Mission: To protect the health, safety, and welfare of Arizona citizens as well as the welfare of animals by the regulation of veterinarians, veterinary technicians, veterinary premises, and animal crematories. Description: The Board consists of nine members appointed by the Governor for four-year terms. The Board is responsible for licensing veterinarians, certifying veterinary technicians, licensing veterinary medical premises, and licensing animal crematories. The Board administers examinations for veterinarians and veterinary technicians, inspects all fixed locations for veterinary medical premises and animal crematories, investigates complaints and violations, and takes appropriate regulatory disciplinary action to ensure the public's protection. Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 0.0 0.0 57.2 14.0 12.8 1.5 0.0 61.5 4.0 0.0 1.5 0.0 61.5 4.0 0.0 1.5 0.0 66.0 4.0 0.0 448.6 455.3 455.3 474.0 448.6 455.3 455.3 474.0 448.6 455.3 455.3 474.0 Appropriated Fund Veterinary Medical Examiners Board Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Standard Adjustments Retirement Standard Adjustment 1.0 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. Number of Licensees 4,000 3,500 3,000 2,500 Veterinary Medical Examiners Board Fund 1.0 Rent Standard Adjustment 4.5 This issue includes statewide adjustments for COSF, COP, and PLTO rent changes in FY 2013. 2,000 1,500 Veterinary Medical Examiners Board Fund 1,000 500 4.5 Health Insurance Rate Reduction 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure (2.2) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. Veterinary Medical Examiners Board Fund (2.2) $ 500 Other Adjustments $ 450 $ 400 State Employee Pay Adjustment $ 350 15.4 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. $ 300 $ 250 $ 200 Veterinary Medical Examiners Board Fund $ 150 15.4 $ 100 Performance Measures $ 50 FY 2010 Actual $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center Licensing and Regulation Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 448.6 455.3 455.3 474.0 448.6 455.3 455.3 474.0 5.5 238.6 86.0 35.7 4.3 5.5 253.9 85.7 41.9 6.8 5.5 253.9 85.7 41.9 6.8 5.5 266.6 87.2 41.9 6.8 Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State 232 Percent of customers responding excellent or good on customer satisfaction survey Number of annual investigations conducted Total number of veterinarians licensed annually, including renewals number of licensed veterinarians at end of FY FY 2011 Actual FY 2012 Expected FY 2013 Expected 98 93 90 90 168 150 165 150 2,058 1993 2060 1,750 Average number of calendar days from receipt to granting of license licensing of premise applications 60 90 75 75 Number of complaints docketed 142 136 140 125 Number of complaints resolved 112 93 115 115   State Veterinary Medical Examining Board FY 2013 Executive Budget Performance Measures Average number of calendar days from receipt of complaint to resolution FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 150 160 150 150 The Executive recommends a lump-sum appropriation to the agency. Agency Operating Detail State Veterinary Medical Examining Board 233 WCA FTE Department of Water Resources Mission: To ensure a long-term, safe, sufficient, and secure water supply for the State; to develop public policies which promote the efficient use and equitable distribution of water in an environmentally and economically sound manner; and to promote the management of floodplains and dams to reduce loss of life and damage to property. Description: The Department of Water Resources (DWR) was established in 1980 to administer all state water laws except those laws relating to water quality. Primary responsibilities include implementing the Groundwater Code, supporting the adjudication of water rights, ensuring the safety of dams, managing floods, implementing surface water laws, surveying water resources statewide, and assessing water quality in conjunction with the Department of Environmental Quality. Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 67.1 207.2 207.2 207.2 3,952.3 1,883.5 36.0 120.7 11.4 0.0 986.8 2.8 0.0 7,543.9 2,524.6 281.3 191.0 24.9 0.0 1,661.1 137.0 0.0 7,543.9 2,524.6 281.3 191.0 24.9 0.0 1,661.1 137.0 0.0 7,921.2 2,572.0 281.3 191.0 24.9 0.0 1,686.6 137.0 2,000.0 6,993.5 12,363.8 12,363.8 14,814.0 6,719.1 0.0 274.4 5,698.3 6,400.2 265.3 5,698.3 6,400.2 265.3 7,880.4 6,658.9 274.7 6,993.5 12,363.8 12,363.8 14,814.0 Appropriated Fund General Fund Water Resources Fund Assured and Adequate Water Supply Administration Fund Agency - Approp. Funds Non-Appropriated Funds Number of Wells FY 2011 Actual 250,000 200,000 150,000 100,000 50,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 General Fund and Total Funds Expenditure $ 100,000 $ 90,000 $ 80,000 $ 70,000 $ 60,000 $ 50,000 $ 40,000 $ 30,000 $ 20,000 $ 10,000 $0 FY 2012 Expend. Plan FY 2012 Exec. Rec. FY 2013 Exec. Rec. Arizona Water Banking Fund Arizona Water Protection Fund Arizona Water Quality Fund Augmentation Fund Colorado River Water Use Fee Clearing Fund Dam Repair Fund Federal Grant Flood Warning System Fund General Adjudication Fund IGA and ISA Fund Indirect Cost Recovery Fund Statewide Donations Water Resources Production and Copying Water Resources Publication and Mailing Well Administration and Enforcement Fund 4,216.6 4,131.8 4,131.8 4,144.4 1,407.9 1,117.8 1,117.8 1,098.7 157.8 894.5 8.5 177.2 524.3 5.0 177.2 524.3 5.0 181.8 525.3 5.0 935.9 386.8 62.7 842.2 198.3 63.2 842.2 198.3 63.2 579.4 201.1 63.2 10.6 467.6 1,409.1 10.0 549.3 469.1 10.0 407.1 469.1 10.0 396.8 476.2 64.9 12.0 41.0 0.0 13.2 0.0 40.0 0.0 8.4 0.0 0.0 0.0 177.4 203.5 203.5 208.5 Agency - Nonapp. Funds 10,220.7 8,332.7 8,162.7 7,930.3 17,214.2 20,696.5 20,526.5 22,744.3 Agency Total - All Funds Federal Funds Expenditures - as reported by Agency FY 2011 Actual Agency Summary - Appropriated Funds Program/Cost Center Agency Support Water Management and Statewide Planning Dam Safety and Flood Warning Agency - Approp. Funds FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,341.3 5,590.2 2,732.7 9,046.2 2,732.7 9,046.2 4,789.6 9,408.4 62.0 584.9 584.9 616.0 6,993.5 12,363.8 12,363.8 14,814.0 FY 2012 Exp. Plan FY 2013 Exp. Plan Agency Total 386.9 198.3 198.3 These are the Federal expenditures reported by the agencies and, in most cases, are included in the Appropriated or Non-Appropriated Funds expenditures listed above. Executive Appropriation Recommendations FY 2013 Category 234 Department of Water Resources FY 2013 Executive Budget FY 2013 Performance Measures Standard Adjustments Retirement Standard Adjustment 28.7 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. General Fund 13.8 Water Resources Fund 14.2 Assured and Adequate Water Supply Administration Fund Health Insurance Rate Reduction 0.6 (60.2) Percent of Arizona's annual entitlement to Colorado River water beneficially used Number of dams classified in a nonemergency unsafe condition Per capita water use in the Active Management Areas (in acre feet) Percent of unused entitlement recharged FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected 100 100 100 100 13 13 13 13 2.74 2.74 2.74 2.74 95 95 95 95 The Executive recommends a lump-sum appropriation to the agency. The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund (51.9) Water Resources Fund (7.5) Assured and Adequate Water Supply Administration Fund (0.8) Baseline Adjustments Contractual Rent Increase 25.5 The Executive recommends an increase of $25,500 to the Water Resources Fund for increases in the rental rate per square foot in privately held lease space. Water Resources Fund 25.5 Other Adjustments White Mountain Apache Water Rights Settlement 2,000.0 The Executive recommends a one-time appropriation of $2.0 million to the Water Resources Fund to fulfill the State's obligation to the White Mountain Apache Tribe's Water Rights Settlement. The State's portion of the settlement contributes to the building of a dam, storage reservoir, pumping plant, and treatment facilities located along the north fork of the White River, called the Miner Flat Dam Project. Before the project can begin, an agreement must be submitted for approval to the Gila River Adjudication Court and the Little Colorado River Adjudication Court. Additionally, the Secretary of the Interior must issue a record of decision approving the commencement of construction of the Miner Flat Dam Project. General Fund 2,000.0 State Employee Pay Adjustment 456.3 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 220.2 Water Resources Fund 226.5 Assured and Adequate Water Supply Administration Fund Agency Operating Detail 9.6 Department of Water Resources 235 WMA Department of Weights and Measures Mission: To protect the integrity of Arizona’s marketplace by ensuring that equity and accuracy are preserved in commerce through fair and evident regulation and the effective communication of weight and measurement standards. Description: The Department of Weights and Measures ensures that every commercial device used for the sale of commodities by either weight, measure or count is licensed and accurate for its intended use; ensures, by way of random inspections, that such commodities are properly labeled and priced in conformance with state rules and regulations; maintains custody of the state’s primary standards and keeps an accurate record of all standards and equipment; collects samples of motor fuel that is stored, sold, exposed or offered for sale to determine if such motor fuel meets the required standards; inspects all mandated stage 1 and stage 2 vapor recovery systems in the state to determine if such systems are in compliance with the law. Category FTE Personal Services ERE Amount Prof. And Outside Services Travel - In State Travel - Out of State Aid to Others Other Operating Expenses Equipment Transfers Out Agency - Approp. Funds 36.5 36.4 36.4 1,185.7 563.0 289.6 148.0 13.7 0.0 393.7 200.6 8.4 1,231.8 513.6 433.4 213.6 12.0 0.0 413.7 78.3 0.0 1,231.8 513.6 433.4 213.6 12.0 0.0 413.7 78.3 0.0 1,293.4 512.1 433.4 243.6 12.0 0.0 413.7 353.3 (8.3) 36.4 2,802.7 2,896.4 2,896.4 3,253.2 1,194.1 1,286.3 322.3 1,165.0 1,413.9 317.5 1,165.0 1,413.9 317.5 1,496.1 1,433.8 323.2 2,802.7 2,896.4 2,896.4 3,253.2 Appropriated Fund General Fund Air Quality Fund Motor Vehicle Liability Insurance Enforcement Agency - Approp. Funds Executive Appropriation Recommendations FY 2013 Number of Inspections Standard Adjustments 40,000 Retirement Standard Adjustment 4.7 35,000 The Retirement Standard Adjustment is intended to provide funding to agencies for increased employer contribution rates in FY 2013. 30,000 25,000 20,000 15,000 General Fund 2.3 10,000 Air Quality Fund 1.8 Motor Vehicle Liability Insurance Enforcement Fund 0.6 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Health Insurance Rate Reduction (19.4) The Executive recommendation includes a (13.2%) reduction in employer health insurance premiums for the plan year beginning January 1, 2013. General Fund and Total Funds Expenditure $ 3,500 $ 3,000 $ 2,500 General Fund (8.6) Air Quality Fund (7.4) Motor Vehicle Liability Insurance Enforcement Fund (3.4) $ 2,000 $ 1,500 $ 1,000 $ 500 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Agency Summary - Appropriated Funds Program/Cost Center General Services Air Quality Oxygenated Fuel Vapor Recovery Agency - Approp. Funds 236 FY 2011 Actual FY 2012 Approp. FY 2012 Exec. Rec. FY 2013 Exec. Rec. 1,516.4 717.6 568.7 1,482.5 780.2 633.7 1,482.5 780.2 633.7 1,819.4 790.7 643.1 2,802.7 2,896.4 2,896.4 3,253.2 Department of Weights and Measures FY 2013 Executive Budget Performance Measures FY 2013 Other Adjustments Large Scale Test Truck with Crane 275.0 The Department of Weights and Measures is charged with ensuring that all commercial devices used for the sale of commodities by weight, count, or measure are properly functioning. The Department currently possesses a 1996 Freightliner truck that is used to inspect large scale testing units that weigh commerical vehicles, cattle, and other heavy items. While repaired several times in FY 2011, the truck is no longer operational, and the Department can no longer test these large scale units. FY 2010 FY 2011 FY 2012 FY 2013 Actual Actual Expected Expected Percent of facilities inspected annually 89 93 89 89 that are in compliance. Percent of UPC (price scanning) 87 92 81 81 devices in compliance. The Executive recommends a lump-sum appropriation by program. The Executive recommends funding in FY 2013 for a large scale test truck. General Fund 275.0 Annual Vehicle Fleet Management Funding 30.0 To perform its daily functions, the Department uses several pickup trucks maintained by ADOA Fleet Services. Six trucks have been eligible for replacement since FY 2009, based on mileage accrued, and some are barely functional. Replacing those six trucks will increase the Department’s payments to Fleet Services by $3,780 per vehicle per year. Additionally, the Department seeks to replace eight fuel storage tanks that are used by these trucks to transport motor fuel. The Executive Recommendation provides FY 2013 funding for an increase in Fleet Service payments to the Department of Administration and for replacement of eight fuel storage tanks. General Fund 30.0 AG Pro-Rata Appropriation (8.3) The Executive is recommending the elimination of the AG prorata charge and the corresponding appropriation reduction for Agencies paying the pro-rata. General Fund (4.1) Air Quality Fund (3.2) Motor Vehicle Liability Insurance Enforcement Fund (1.1) State Employee Pay Adjustment 74.8 In conjunction with personnel reform, the Executive recommends a 5% pay increase for eligible employees. General Fund 36.5 Air Quality Fund 28.7 Motor Vehicle Liability Insurance Enforcement Fund 9.6 Performance Measures FY 2010 Actual Percent of Arizona Clean Burning Gasoline (AzCBG's) in compliance. Agency Operating Detail 98 FY 2011 Actual FY 2012 Expected 97 98 FY 2013 Expected 98 Department of Weights and Measures 237 Continuing FY 2013 Fund Transfers A.R.C.O.R. Enterprises Revolving Fund (4002) $157,300 ABOR Local Fund (8900BRA) $281,800 ADOA Special Events Fund (2503) ADOT ‐ Maricopa ‐ Regional Area Road Fund (2029) AFIS II Collections Fund (4203) Agriculture Administrative Support Fund (2436) $500 $36,200 $432,900 $300 Agriculture Commercial Feed Fund (2012) $1,700 Agriculture Dangerous Plants Fund (2054) $500 Agriculture Designated/Donations (3011AHA) $1,900 Agriculture Fertilizer Materials Fund (2081) $2,000 Agriculture Seed Law Fund (2064) AHCCCS ‐ 3rd Party Collection Fund (3791) $100 $608,200 AHCCCS Intergovernmental Service Fund (2438) $662,000 Air Quality Fund (2226) $181,900 Alternative Dispute Resolution Fund (3245) Arizona Arts Trust Fund (3014) Arizona Benefits Fund (2350) $75,500 $115,700 $70,100 Arizona Commerce Authority Carryover (1001) $613,400 Arizona Commission on Criminal Justice Fund (2134) $659,200 Arizona Department of Housing Program Fund (2200) $999,200 Arizona Water Banking Fund (2110) $304,200 Arizona Water Protection Fund (1302) $44,300 Arizona Water Quality Fund (2304) $88,900 ASDB Classroom Site Fund (2486) $16,600 ASDB Cooperative Services Fund (4221) ASDB Facilities Use Fund (Enterprise Fund) (4222) $232,100 $600 Assessment Fund for Voluntary Plans (2316) $2,100 Assured and Adequate Water Supply Administration Fund (2509) $1,500 Athletic Training Fund (2583) Attorney General Anti‐Racketeering Fund (2131) Attorney General Antitrust Revolving Fund (2016) Attorney General CJEF Distributions Fund (2068) Attorney General Collection Enforcement Fund (2132) Attorney General Consumer Fraud Fund (2014) Attorney General Legal Services Cost Allocation Fund (4240) $700 $28,400 $1,600 $334,500 $22,900 $0 $636,900 Auditor General ‐ Audit Services Fund (2242) $1,800 Augmentation Fund (2213) $3,100 Auto Fingerprint Identification Fund (2286) $2,400 Automobile Theft Prevention Authority Fund (2060) AZ Game & Fish Heritage Fund (2295) Board of Fingerprinting Fund (2435) 238 $883,400 $35,300 $5,600 FY 2013 Executive Budget Continuing FY 2013 Fund Transfers Capital Outlay Stabilization Fund (1600) Capital Post‐Conviction Public Defender Office Fund (2367) Capitol Police Administrative Towing Fund (1999) Captive Insurance Regulatory and Supervision Fund (2377) $14,200 $1,400 $700 $67,900 Centralized Monitoring Fund (2308) $131,800 Child Abuse Prevention & Treatment Fund (2162) $118,300 Child Care Development Block Grant Fund (2008F) $5,900 Child Fatality Review Fund (3036) $1,600 Child Support Enforcement Admin Fund (2091) Child/Family Services Training Program Fund (2173) $91,100 $1,600 Citizens Clean Election Fund (2425) $10,000,000 Clean Water Revolving Fund (2254) $7,200 Coliseum & Exposition Center Fund (4001) Confidential Intermediary & Private Fiduciary Fund (2276) Construction Insurance Fund (4219) CO‐OP State Purchasing Fund (4213) Cooperative Forestry Program Fund (2232) Corrections Fund (2088) County Public Defender Training Fund (3013) $82,700 $2,900 $196,700 $4,700 $62,700 $3,700 $71,100 Court Appointed Special Advocate Fund (2275) $3,200 Court Reporters Fund (2440) $1,000 Crime Laboratory Assessment Fund (2282) Crime Laboratory Operations Fund (2394) Criminal Case Processing Fund (2461) Criminal Justice Enhancement Fund (3702) $7,000 $3,708,000 $600 $39,500 D.E.Q. Emissions Inspection Fund (2082) $10,625,500 Data Processing Acquisition Fund (2265) $500 Deaf & Blind School Donations Fund (3148) Defensive Driving Fund (2247) Department of Economic Security Long‐Term Care System Fund (2224) Department of Juvenile Corrections Fund (3024) Department of Public Safety Licensing Fund (2490) Department of Revenue Administration Fund (1993) Disease Control Research Fund (2090) $300 $71,900 $800 $800 $177,500 $1,928,100 $4,900 DNA Identification System Fund (2337) $56,800 DOR Liability Setoff Fund (2179) $28,100 DPS Administration Fund (2322) $239,700 DPS Anti‐Racketeering Fund (3123) DPS Peace Officers Training Fund (2049) DPS Records Processing Fund (2278) Fund Transfer Detail $7,900 $827,300 $13,500 239 Continuing FY 2013 Fund Transfers Drinking Water Revolving Fund (2307) Driving Under Influence Abatement Fund (2422) Drug and Gang Prevention Fund (2280) Drug Treatment and Education Fund ‐ Judiciary (2277COU) Drug Treatment and Education Fund ‐ Parents Commission on Drug Education and Prevention (2277PCA) Early Graduation Scholarship Fund (2364) $6,500 $114,000 $68,500 $27,400 $641,700 $200 Economic Security Special Administration Fund (2066) $439,100 Economic Strength Project Fund (2244) $100,000 Education Commodity Fund (4210) $1,700 Education Internal Services Fund (4209) $796,800 Education Printing Fund (4211) $365,100 Emergency Medical Services Operating Fund (2171) Emergency Response Fund (3031) Emergency Telecommunications Services Revolving Fund (2176) Environmental Lab Licensure Revolving Fund (3017) Failing Schools Tutoring Fund (2470) Family College Savings Program Trust Fund (3121) Financial Services Fund (1998) Financial Surveillance Fund (2473) Fingerprint Clearance Card Fund (2433) $43,200 $132,700 $2,201,800 $49,500 $500 $2,500 $28,100 $36,600 $456,400 Fire Suppression Fund (2360) $21,000 Fund Deposits Fund (1113) $10,800 Game & Fish Watercraft License Fund (2079) $7,900 Geological Donations Fund (3030) $2,000 Gift Shop Revolving Fund (4008) Hazardous Waste Management Fund (2178) Health Care Appeals Fund (2467) Health Research Fund (2096) $900 $13,600 $2,100 $3,300 Health Services Licensing Fund (1995) $100,900 Healthcare Group Fund (2506) $383,500 Hearing and Speech Professionals Fund (3041) Highway Expansion & Extension Loan Program Fund (2417) Highway Patrol Fund (2032PSA) $25,000 $1,200 $862,000 Housing Trust Fund (2235) $8,100 IGA and ISA Fund (2500EDA) $5,700 IGA and ISA Fund (2500ADA) $75,400 IGA and ISA Fund (2500HCA) $12,900 IGA and ISA Fund (2500AGA) $69,500 IGA and ISA Fund (2500DCA) $3,300 IGA and ISA Fund (2500BDA) $900 240 FY 2013 Executive Budget Continuing FY 2013 Fund Transfers IGA and ISA Fund (2500HDA) $261,300 IGA and ISA Fund (2500PSA) $198,800 IGA and ISA Fund (2500WCA) Indirect Cost Fund (7000) $500 $900 Indirect Cost Recovery Fund (9000GSA) $2,400 Indirect Cost Recovery Fund (9000EDA) $121,500 Indirect Cost Recovery Fund (9000GVA) $4,800 Indirect Cost Recovery Fund (9000PSA) $199,200 Indirect Cost Recovery Fund (9000WCA) $361,800 Indirect Cost Recovery Fund (9000DCA) Indirect Fund (9001) Industrial Commission Administration Fund (2177) Instructional Improvement Fund (2492) Insurance Examinersʹ Revolving Fund (2034) $400 $1,352,900 $112,200 $200 $11,600 Investment Management Regulatory & Enforcement Fund (2404) $229,600 Juvenile Corrections ‐ C.J.E.F. Distributions Fund (2281) $134,000 Juvenile Delinquent Reduction Fund (2193) $500,000 Juvenile Education Fund (2323) $20,300 Land ‐ Interagency Agreements Fund (2212) $100 Laser Safety Fund (2388) $300 Law Enforcement and Boating Safety Fund (2111) Liquor License Special Collections Fund (3008) Liquor Licenses Fund (1996) Lottery Fund (2122) M\RARF Debt Service Fund (5008) Mathematics, Science and Special Education Teacher Student Loan Fund (2358) Medical Examiners Board Fund (2038) Medical Marijuana Fund (2544) $26,000 $13,100 $247,000 $1,600,800 $36,200 $400 $32,200 $6,300 Military Family Relief Fund (2339) $400 Motor Pool Revolving Fund (4204) $7,500 Motor Vehicle Liability Insurance Enforcement Fund (2285) Newborn Screening Program Fund (2184) $2,100 $27,600 Non‐Appropriated Private Grants Fund (9449) $200 Non‐Appropriated Private Operating Fund (9447) $300 Non‐Appropriated Restricted Funds Fund (9448) $400 Notary Bond Fund (2387) Nursing Board Fund (2044) Nursing Care Institution Resident Protection Revolving Fund (2329) Off‐Highway Vehicle Recreation Fund (2253) Fund Transfer Detail $1,100 $23,000 $300 $113,100 241 Continuing FY 2013 Fund Transfers Oral Health Fund (3038) Parity Compensation Fund (2510) Partnership Fund (2448) Permanent AZ Historical Society Revolving Fund (2900) Permanent Tribal‐State Compact Fund (2340) Permit Administration Fund (2328) $2,400 $20,500 $4,400 $2,300 $19,700 $400 Personnel Division Fund (1107) $52,600 Pharmacy Board Fund (2052PMA) $41,500 Podiatry Examiners Board Fund (2055POA) Postsecondary Education Fund (2405) Private Postsecondary Education Fund (2056) $2,700 $2,300 $400,000 Public Access Fund (2333) $86,300 Public Assistance Collections Fund (2217) $96,000 Racing Regulation Fund (2556) $19,100 Radiation Regulatory Fee Fund (2554) Records Services Fund (2431) Reservation Surcharge Fund (1304) Risk Assessment Fund (2427) Risk Management Fund (4216) Safety Enforcement & Transportation Infrastructure Fund (2108) School Accountability Fund Prop 301 Fund (1014) School Safety Prop 301 Funds Fund (1016) Schools for the Deaf & Blind Fund (2444) $6,000 $7,600 $99,800 $100 $1,494,200 $459,700 $15,800 $1,300 $200,300 Securities Regulatory and Enforcement Fund (2264) $54,400 Service Fees Increase Fund (1050AEA) $79,200 Sharlot Hall Historical Society 501(c)3 Fund (9505) $3,500 Smoke Free Arizona Fund (2541) $6,300 Solid Waste Fee Fund (3110) Southern Arizona Veteransʹ Cemetery Trust Fund (2499) Special Education Fund (1009) Special Employee Health Insurance Trust Fund (3015) Spinal and Head Injuries Trust Fund (2335) Standing Political Committee Administrative Fund (2426) State Aviation Fund (2005) State Chemist Pesticide Fund (2051) State Ed Sys for Committed Youth Class Fund (2487) State Educational Fund for Correctional Education (2107) State Employee Travel Reduction Fund (2261) State Grants Fund (2011) State Highway Fund (2030) State Lake Improvement Fund (2105) 242 $100 $1,900 $900 $27,073,700 $449,900 $200 $676,600 $2,400 $50,900 $9,100 $38,700 $100 $19,139,000 $27,200 FY 2013 Executive Budget Continuing FY 2013 Fund Transfers State Library Fund (2115) $700 State Parks Donations Fund (3117) $200 State Parks Enhancement Fund (2202) $65,300 State Parks Publications Fund (4010) $61,700 State Radiologic Technologist Certification (2061) $21,200 State Surplus Materials Revolving Fund (4214) State Treasurerʹs Management Fund (3799) State Treasurerʹs Operating Fund (3795) Statewide Donations Fund ‐ Arizona Centennial Fund (2025STA) Statewide Payroll Fund (9200) Structural Pest Control Fund (2050) Student Tuition Recovery Fund (3027) $4,800 $2,200 $19,800 $100 $1,100 $16,200 $500 Supreme Court CJEF Disbursements Fund (2075) $66,500 Teacher Certification Fund ‐ OF (2399) $32,700 Telecommunication Fund for the Deaf (2047) Telecommunications Fund (4231) $1,569,100 $4,700 The Arizona State Hospital Fund (3120) $47,100 Tobacco Tax and Health Care Fund (1306) $20,100 Tourism Fund (2236) $35,400 Underground Storage Tank Revolving Fund (2271) $4,676,000 Utility Regulating Revolving Fund (2172) $1,181,900 Veteransʹ Conservatorship Fund (2077) Veteransʹ Donation Fund (2441) Victim Witness Assistance Fund (2228) Victimsʹ Compensation Fund (2198) $6,600 $15,400 $300 $307,500 Victimsʹ Rights Implementation Fund (3215) $35,900 Vital Records Electronic Systems Fund (3039) $44,600 Voluntary Remediation Fund (2564) $100 Voluntary Vehicle Repair Fund (2365) $747,200 Water Quality Assurance Revolving Fund (2221) $417,800 Water Quality Fee Fund (4100) $29,900 Water Resources Fund (2398) $43,300 Well Administration and Enforcement Fund (2491) Work Force Recruitment and Job Training Fund (1237) $124,200 $4,600 $109,183,300 Fund Transfer Detail 243 Proposed Legislative Changes The following changes are necessary to implement the Executive Budget Recommendation for Fiscal Years 2012 and 2013 STATEWIDE FY 2012 Surplus Property Sales Proceeds. As session law, allow Sur‐ plus Property to expend revenues it receives in excess of its appropriation. Statutory Revertments. Eliminate the session law that includes non‐lapsing appropriated monies as part of the General Fund ending balance at the close of the fiscal year. ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM FY 2013 Five‐Year Strategic Plan. In statute, require all executive agencies to submit a five‐year strategic plan. ADMINISTRATION, DEPARTMENT OF FY 2013 Arizona State Hospital Generator. As session law, allow the Department to use up to $1.7 million in Building Renewal funds to purchase a generator for the Arizona State Hospital. Automations Fund. As session law, allow the Department to use all revenues received by the Automations Fund. COSF Reform. In statute, clarify that Capital Outlay Stabiliza‐ tion Fund (COSF) rent must be paid only for those buildings for which ADOA provides operational and/or maintenance ser‐ vices. Federal Participation Repayment. As session law, authorize the Department to use Risk Management funds to settle debts to the federal government related to disallowed charges and transfers of federal participation dollars from FY 2011 through FY 2013. Information Technology Modernization Fund. In statute, establish the Information Technology Modernization Fund to be used for the replacement of AFIS and other information tech‐ nology projects. Motor Pool Revolving Fund. As session law, allow the Department to use all revenues received by the Motor Pool Revolving Fund. Health Insurance Trust Fund. As session law, authorize the Department to use Health Insurance Trust Fund monies to settle debts to the federal government due to transfers from the Fund. Legislative Changes FY 2013 Ambulance Reimbursement. As session law, set base support for ambulance services at 72.2% of the rates established by DHS. Allow AHCCCS to reduce rates by up to an additional 5%. Capitation Payments Deferral. As session law, require AHCCCS to defer acute capitation payments for up to two months, and pay interest at a rate of 0.5% per year. County Acute Care Contributions. As session law, require counties to contribute, through the Disproportionate Uncom‐ pensated Care (DUC) Pool and county acute contribution, a total of $51,859,000 for the AHCCCS Acute Care program. County Acute Refunds. As session law, require AHCCCS to refund to counties, by December 31 of the following year, their portion of AHCCCS Acute Capitation expenditures paid in excess of 7.26% of the total Acute Capitation state match. County ALTCS Refunds. As session law, require AHCCCS to refund to counties, by December 31 of the following year, their portion of reverted Arizona Long‐term Care System Fund funds. Disproportionate Share Hospital. As session law, establish disproportionate share payments from the Maricopa Special Health Care District of $89.8 million, the Arizona State Hospital of $28,474,900, and the private hospitals of $9,284,800. Local and Tribal Spending. As session law, allow AHCCCS to spend federal monies received as a result of local and tribal spending. Managed Care Organization Risk Contingency and Adminis‐ trative Funding. As session law, continue the reduction from 2% to 1% in risk contingency and from 8.5% to 8% in adminis‐ trative allowance in the capitation rates paid to the health plans. 245 ATTORNEY GENERAL FY 2013 AG Pro‐Rata. Repeal A.R.S. §41‐191.09 requiring the Attorney General Pro‐Rata contribution and the establishment of the Attorney General Legal Services Cost Allocation fund and transfer the balance of the fund to the General Fund. COMMUNITY COLLEGES FY 2013 Capital Outlay Aid Formula Funding. As session law, suspend the Capital Outlay State Aid formula. Quarterly Funding Requests. In statute, eliminate the require‐ ment for districts to request funding each quarter in lieu of a single request at the beginning of each year with equal quar‐ terly disbursements during the first month of each quarter. CORRECTIONS, DEPARTMENT OF FY 2013 DOC Building Renewal and Preventive Maintenance Fund. In statute, move the DOC Building Renewal and Preventive Maintenance Fund and its administration from ADOA to the Department of Corrections. Contract for 5,000 Private Beds. Repeal the session law requir‐ ing the Department to contract for 5,000 private prison beds. Corrections Fund Transfer. As session law, transfer revenues in excess of $28,102,100 to the Corrections Fund up to $4.5 million to the DOC Building Renewal and Preventive Maintenance Fund. Domestic Violence Prevention Fund. As session law, continue to authorize the Department to expend Domestic Violence Prevention Fund revenues in excess of $2.2 million. EDUCATION, DEPARTMENT OF FY 2013 Deferral of State Aid. As session law, continue the deferral of School District State Aid, in the amount of $852,627,700. Soft Capital Allocation Limit, Lump‐Sum Reduction. As session law, continue $88,120,700 in lump‐sum reductions to the school district soft capital allocation. Capital Outlay Revenue Limit, Lump‐Sum Reduction. As session law, continue $29,058,421 in lump‐sum reductions to the school district capital outlay revenue limit. Additional Assistance, Lump‐Sum Reduction. As session law, continue $12,462,379 in lump‐sum reductions to charter school Additional Assistance. District‐Sponsored Charter Schools. In statute, prohibit the creation of new district‐sponsored charter schools. For each existing district‐sponsored charter school, create a clear legal distinction between the charter’s budget and the district’s budget and exclude the charter’s ADM from the calculation of the sponsoring district’s revenue control limit. Career Ladder Phase‐Out. As session law, continue the phase‐ out of the Career Ladder program, with the program’s allowa‐ ble increase above the base reduced from 4% to 3%. Joint Technological Education District Funding. As session law, continue limiting JTED funding to 91%. Penitentiary Land Fund. As session law, continue the 100% distribution of revenues to the Department from the Peniten‐ tiary Land Fund for the support of State penal institutions. Move on When Reading. As permanent law, adjust the K‐8 Group A base level weight from 1.158 to 1.179 to provide funding for reading specialists, comprehensive curriculum, intervention and remediation programs in grades K‐3. Private Prison Beds. As session law, authorize the Department to issue a request for proposals to build 2,000 private medium‐ custody prison beds. EMERGENCY AND MILITARY AFFAIRS, DEPARTMENT OF State Charitable, Penal and Reformatory Institutions Land Fund. As session law, continue the 25% distribution of revenues from the State Charitable, Penal and Reformatory Institutions Land Fund to the Department for the support of State penal institutions. Transition Services Fund. In statute, eliminate the Transition Services Fund and transfer its appropriation and fund balance to the Transition Program Fund. ECONOMIC SECURITY, DEPARTMENT OF FY 2013 Military Installation Fund. As session law, continue to reduce the statutory appropriation to the Military Installation Fund by $4,825,000. EXECUTIVE CLEMENCY, BOARD OF FY 2013 Shift to Hourly Pay Rate. As session law, shift the Board to an hourly pay rate. This will allow the Board to work the hours necessary to complete their work. FY 2013 Child Support Enforcement Fund. As session law, continue to authorize the Department to expend Child Support Enforce‐ ment Fund retained earnings in excess of $16.4 million. 246 FY 2013 Executive Budget HEALTH SERVICES, DEPARTMENT OF LOTTERY COMMISSION FY 2013 FY 2013 Newborn Screening Fund Footnote. As session law, allow the Department to expend Newborn Screening Fund revenues in excess of the Fund’s appropriation. Instant Ticket Footnote. As session law, stipulate that the actual appropriation for the Instant Ticket line item equals 3.6% of actual Instant Ticket sales. Community Protection and Treatment Center. As session law, require counties to reimburse the Arizona State Hospital for 25% of the costs of housing individuals in the Arizona Commu‐ nity Protection and Treatment Center (ACPTC) in FY 2011 and 50% of the costs of housing individuals in the ACPTC since the beginning of FY 2012. Online Ticket Sales Footnote. As session law, stipulate that the actual appropriation for the Online Game Sales line item equals 3.7% of actual online ticket sales. Restoration to Competency Funding. As session law, continue to require counties to reimburse the Arizona State Hospital for 100% of the cost of Restoration to Competency (RTC) services. State Hospital Land Fund. As session law, authorize the Department to expend all ASH Land Fund revenues in excess of its appropriation. Seriously Emotionally Handicapped Children. In statute, require the Department of Education to pay all the costs of Residential Treatment Facility Placements through the Indivi‐ dualized Education Program for children determined to be ineligible for services through Medicaid. Alzheimer’s Research. As session law, continue the footnote providing Alzheimer’s disease research funding. HOMEOPATHIC MEDICAL EXAMINERS, BOARD OF FY 2013 Homeopathy License Fees. In statute, increase the cap on the Board’s fees to $1,200 for homeopathic physician initial licenses and renewals and $500 for the initial and annual renewal of a permit to dispense drugs. Exempt the Board from the rules‐ making process for the purpose of adjusting its license fees. JUVENILE CORRECTIONS, DEPARTMENT OF Retail Ticket Sales Footnote. As session law, stipulate that the actual appropriation for ticket retailer commissions equals 6.5% of gross Lottery game sales, with an additional amount not to exceed 0.5% of gross Lottery game sales for ticket retailer sales commissions. Instant Tab Ticket Footnote. As session law, stipulate that the actual appropriation for the Instant Tab Ticket line item equals 20% of Instant Tab Ticket sales. MEDICAL STUDENT LOANS, BOARD OF FY 2013 Revenue Transfer to DHS. As session law, transfer the remaining balance and new revenues from the Medical Student Loan Fund to DHS’s Primary Care Provider Loan Repayment program. PARKS BOARD, STATE FY 2013 Off‐Highway Vehicle Recreation Fund. As session law, allow the State Parks Board to use the Off‐Highway Vehicle Fund for operational expenses. Law Enforcement and Boating Safety Fund. As session law, allow the Board to use the Law Enforcement Boating Safety Fund for operational expenses. FY 2013 Capital Spending. As session law, suspend the requirement that the Board use half of its Enhancement Fund monies for capital needs. State Charitable, Penal and Reformatory Institutions Land Fund. As session law, continue the 25% distribution of revenues to the Department from the State Charitable, Penal and Refor‐ matory Institutions Land Fund for the support of State penal institutions. State Parks Enhancement Fund. As session law, continue the footnote that appropriates $260,000 from the State Parks Enhancement Fund for Fool Hollow State Park revenue sharing with the City of Show Low and the U.S. Forest Service. State Education Fund for Committed Youth. As session law, authorize the expenditure of all revenues deposited into the Education Fund for Committed Youth. LAND DEPARTMENT, STATE FY 2013 Natural Resource Conservation Districts. As session law, continue to stipulate that $30,000 of the amount appropriated for Natural Resource Conservation Districts will be used to provide grants to environmental education centers. Legislative Changes POST-SECONDARY EDUCATION FY 2013 LEAP Institutional Match. As session law, continue to require that participating LEAP institutions match State LEAP funds and that LEAP’s administrative expenses will be paid from the institutional match. Estimated Appropriations. As session law, continue the foot‐ note stating that the actual appropriations will reflect final receipts for the Arizona College and Career Guide, the Arizona 247 Minority Educational Policy Analysis Center, and the Twelve Plus Partnership. Arizona SMART Scholarships. In statute, create the Arizona SMART (Skills Maximization and Alignment through Retrain‐ ing and Transitioning) Scholarships program. SMART scholar‐ ships may be awarded to any student enrolled in one of the top 20 community college programs that the Local Workforce Investment Board has determined best meet local workforce needs. In addition, students must show that they have at least two years of full‐time work experience and qualify for need‐ based financial aid. (For veterans, the need‐based aid require‐ ment is waived.) SMART scholarships will pay the cost of tuition up to $2,000 per year for up to two years. PUBLIC SAFETY, DEPARTMENT OF FY 2012 Photo Enforcement Fund Balance. As session law, transfer the balance of the Photo Enforcement Fund to the General Fund. FY 2013 Highway Expenditure Cap Elimination. In statute, permanently eliminate the $10.0 million cap on DPS expenditures from the Highway User Revenue Fund and from the State Highway Fund. Divert State Aid to Indigent Defense. In statute, permanently divert all State Aid to Indigent Defense Fund revenues to the GIITEM Fund Subaccount. FY 2013 Radiation Regulatory Fee Fund. In statute, allow the Agency to charge increased fees to be deposited into the Radiation Regulatory Fee Fund, up to the fund’s annual appropriation. REGENTS, BOARD OF FY 2013 Deferral of General Fund Payment. As session law, continue to defer $200 million in General Fund payments to the Universi‐ ties. Performance Funding. In statute, insert a mutually agreeable performance funding formula that incentivizes the increased production of quality graduates (especially those with STEM and other in‐demand degrees), research, community college and university partnerships, and increased graduation rates. Course Redesign Technology and Capital. As session law, specify that, of the $15.3 million appropriated to the Board for Course Redesign Technology and Capital, the Board must allocate $12 million to ASU and $3.3 million to NAU. The funds must be used for innovative course redesign technologies and capital improvements that will maintain or improve learning outcomes and decrease per‐student costs for large‐enrollment and/or high‐failure‐rate classes. Before the funds can be distri‐ buted, ASU and NAU must have plans approved by the Board, and the Board must review the plans before October 1, 2012. Vehicles and the Public Safety Equipment Fund. In statute, clearly state that revenue to the Public Safety Equipment Fund from the $4 surcharge may be used to purchase vehicles. FY 2013 DPS Joint Fund. As session law, stipulate that any funds remaining in the DPS Joint Fund are to revert to the sources from which they were appropriated in direct proportion to the amount appropriated. Bonding Capacity. In statute, increase school district bonding capacity for Class B bonds to 10% of secondary assessed value for elementary and high school districts and 20% of secondary assessed value for unified school districts. PSYCHOLOGIST EXAMINERS, BOARD OF FY 2013 Behavior Analysts Fund. In statute, create a separate fund for the revenues and expenses associated with the licensure and regulation of behavior analysts. RACING, DEPARTMENT OF FY 2013 Self‐Funding. In statute, (a) allow the Department to charge fees to be deposited in the Racing Regulation Fund so that the Department can be self‐funded and (b) exempt the Department from the rule‐making process and allow it to accept donations and gifts. 248 RADIATION REGULATORY AGENCY SCHOOL FACILITIES BOARD Building Renewal. In statute, eliminate the Building Renewal formula. In addition, by July 1, 2014, require all school districts to utilize the provided online preventive maintenance system and have an SFB‐approved five‐year plan in order to be eligible to receive Building Renewal Grants. District‐Sponsored Charter Schools. In statute, clarify that district‐owned space leased to another entity is included in the SFB’s calculations for new school construction, including space leased to a district‐sponsored charter school. In addition, specify that projects for buildings or any part of a building that is leased to a charter school is ineligible for Building Renewal grants. Radius Standard for New School Construction. In statute, change the minimum square footage standard for new school construction to include excess space that falls within a 10‐mile radius drawn at the center‐point of a district’s highest growth quadrant. FY 2013 Executive Budget SECRETARY OF STATE TRANSPORTATION, DEPARTMENT OF FY 2012 FY 2013 State Grants‐in‐Aid. As session law, retroactively designate the FY 2011 and FY 2012 State Grants‐in‐Aid SLI as non‐lapsing. Vehicle License Tax Transfers. As session law, reduce the VLT transfers by $8.9 million. FY 2013 State Grants‐in‐Aid. As session law, designate the FY 2013 State Grants‐in‐Aid SLI as non‐lapsing. TOURISM, OFFICE OF FY 2013 Eliminate the Tourism Formula. In statute, eliminate the Tourism Funding formula and amend the Tourism Fund to allow it to receive direct Legislative appropriations. Legislative Changes 249 Glossary Part 1: Budget Terms 90/10 Professional and occupational regulatory agencies funded through the collection of fees and the issuance of licenses. These agencies retain 90% of the fees collected an‐ nually in separate agency fund accounts and deposit 10% of the fees collected into the General Fund.1 A accountability Monitoring, measuring, and evaluating the performance and progress of policies, plans and programs to ensure that results are achieved. actual expenditure An expenditure made in the prior fiscal year as reported in the State of Arizona Annual Financial Report, including Personal Services, Employee‐Related Expen‐ ditures, All Other Operating Expenditures and all below‐the‐line items as authorized by the Legislature. administrative adjustment Adjustments made to reflect expenditures made by an agency after the close of the fiscal year. Administrative adjustments include the time period from the close of the 13th month to June 30 of the next fiscal year. administrative cost An expense associated with the support, management and oversight of services delivered pursuant to the agency or program mission. Typical administrative costs include those associated with accounting, human resources, budgeting, strategic planning, public informa‐ tion, auditing, executive management, etc. AFIS The Arizona Financial Information System is the statewide accounting system maintained by the Department of Administration. AHCCCS The Arizona Health Care Cost Containment System is the State’s Medicaid program designed to deliver quality managed health care to qualifying individuals. All Other Operating Expenditures (AOOE) Category of expenditure accounts that include Professional and Outside Services, In‐State Travel, Out‐of‐State Travel, Food, Other Operating Expenditures, and Equipment. annualization An adjustment, made to the current year funding base, that will allow a partially‐funded program to operate for a full year or accounts for a full‐year of budget savings due to mid‐year reductions. appropriated fund The Legislatively mandated segregation of funds. It is used and monitored by the General Accounting Office as a separate self‐balancing set of accounts. Arizona Administrative Code State agency rules of practice setting forth the nature and requirements of all formal pro‐ cedures available to the public. Arizona Revised Statutes (A.R.S.) The laws governing the State of Arizona. B base budget An adjusted budget base that reflects the current year appropriation, amended to include changes for stan‐ dard operating adjustments. below‐the‐line item A specific expenditure or budgetary account that has been singled out through the appropriation process to provide high visibility of expenditure. Also known as “special line item.” biennial budgeting A process that estimates revenues and expenditures for a two‐year period. block grant Allocations of federal money to a state or its subdivisions in accordance with a distribution formula prescribed by law or administrative regulation, for activities of a continuing nature within a restricted subject area (e.g., social services, maternal and child health, and childcare). budget A financial plan that estimates the revenues and expenditures for a given period of time. (SEE ALSO: capital outlay and operating budget). budget program Functions and activities of a budget unit or within a budget unit that are pre‐planned to fulfill a distinct mission. budget reform legislation Refers to the provisions contained in Laws 1993, Chapter 252; Laws 1994, Chapter 218; Laws 1995, Chapter 283; Laws 1996, Chapter 339; Laws 1997, Chapter 210, and Laws 2002, Chapter 210. budget unit A department, commission, board, institution or other State organization receiving, expending, disbursing or incurring obligations against State funds. C capital outlay Expenditures for upkeep, preservation, de‐ velopment, improvement or acquisition of lands, buildings or certain associated equipment. 1 Italicized terms are defined in this Glossary. Glossary 251 Capital Outlay Stabilization Fund (COSF) A fund into which rent monies collected from agencies occupying State‐ owned rental space are deposited. The monies partially offset building operating and maintenance costs. categorical eligibility Automatic eligibility for certain federal‐State matched public assistance programs, based on criteria established in federal law. Admission to a program (e.g., Medicaid) is mandatory to certain groups of benefici‐ aries who meet the legal criteria for eligibility to the speci‐ fied program. categorical program A broad category of joint federal‐State public assistance programs that provide financial assistance to individuals or that may subsidize a particular activity (e.g., Medicaid pays for medical services on behalf of certain groups of low‐income persons). certificate of participation (COP) A financing tool used by the State for the acquisition and construction of State facili‐ ties. classification salary adjustment (CSA) The review of po‐ sitions within a specific class to determine whether a change in class or salary is warranted. A CSA is conducted by the Personnel Division of the Department of Administration. comptroller object code A four‐digit code used within the statewide accounting system to identify the detailed reve‐ nue or expenditure account affected by a transaction; the lowest level in the object structure. continuing appropriation An appropriation that is auto‐ matically renewed without further Legislative action, per‐ iod after period, until altered, revoked or liquidated by expenditure. cost center The allocation of resources by functional area within an agency. current services budget A financial plan that incorporates the base budget needs of an agency and the addition of funding to support demographic growth in client caseloads and workload functions. D decision package A funding request made by State agencies. detail fund A fund designation used in the statewide ac‐ counting system to segregate agency‐specific activity. The balance of an appropriated fund is comprised of the sum of all of its detail funds. Disproportionate Share Hospital (DSH) A hospital that serves a disproportionate share of low‐income and Medi‐ caid patients, thereby qualifying for federal aid pursuant to Section 1923 of the Social Security Act. The federal basis for payments is either a reflection of a hospital’s number of Title XIX in‐patient days or a “low‐income” utilization rate. States may also establish optional payment categories. Arizona has established optional groups that include county, State and private hospitals. 252 E Employee‐Related Expenditures (ERE) The State’s contri‐ bution to an employee’s benefit package. ERE include FICA; retirement; Worker’s Compensation; health, dental, and life insurance; unemployment insurance; Personnel Division charges; Government Information Technology Agency charges; and uniforms for certain classes of employees. entitlement program A broad category of categorical public assistance programs that provide services (e.g., cash assis‐ tance, medical services, etc.) to certain population groups (e.g., low‐income families with minor children). Admission is often mandatory for qualified individuals who meet the legal eligibility criteria (e.g., individuals who are low‐ income and aged, blind or disabled), hence the reference “entitlement.” Equipment In the operating budget, a specific item of expen‐ diture divided into capitalized equipment (purchased for $5,000 or more) and non‐capitalized equipment (usually between $300 and $4,999). ERE rate The quotient of Employee‐Related Expenditures and Personal Services expressed as a percentage. expansion population Persons who have annual incomes of not more than 100% of the Federal Poverty Level and that qualify for AHCCCS benefits due to the expansion of eligi‐ bility as a result of Proposition 204. Executive Issue An adjustment to the prior‐year appropria‐ tion to change the scope of current programs or service levels. expenditures See actual expenditures. F federal budget neutrality A concept intended to ensure that a waiver cannot be expected to cost the federal government more that it would have cost without the waiver. Arizona is subject to “federal budget neutrality” as part of its 100% of FPL waiver. The waiver is for a five‐year period that began on October 1, 2006, and expires September 30, 2011. federal funds Amounts collected and made available to the State by the federal government, usually in the form of categorical or block grants and entitlement programs. Federal Insurance Contribution Act (FICA) Requires em‐ ployees and employers to make matching contributions into the Social Security fund. Federal Waiver Program Experimental, pilot or demonstra‐ tion projects that, in the judgment of the Secretary of the U.S. Department of Health and Human Services, are likely to assist in promoting the objectives of the Medicaid Statute. Projects approved under this authority are referred to as “waiver” programs. fiscal year The State’s yearly accounting period beginning July 1 and ending June 30. (The federal fiscal year begins October 1 and ends September 30.) FY 2013 Executive Budget FPL (Federal Poverty Level) Refers to the poverty guidelines, in relation to income standards, as updated annually in the FEDERAL REGISTER by the U.S. Department of Health and Human Services. full‐time equivalent (FTE) position A position budgeted at 2,080 hours per year. fund An independent fiscal and accounting entity with a self‐ balancing set of accounts recording cash and/or other re‐ sources together with all related liabilities, obligations, reserves and equities, which are segregated for the purpose of carrying on specific activities in accordance with limita‐ tions, restrictions or regulations. fund balance The excess of the assets of a fund over its li‐ abilities and reserves. G General Accounting Office (GAO) A division of the De‐ partment of Administration that provides diverse statewide financial services and ensures compliance with related statutes and rules. General Fund The primary State account into which monies are collected for the general purposes of government. The primary sources of revenues for the General Fund include sales taxes, income taxes and property taxes. The General Fund is also the major expenditure source from which agencies make payments for specified purposes. grant anticipation note (GAN) A federal finance tool involv‐ ing bonding that can be issued by the State Transportation Board. The issuance of a GAN allows the State to fund and accelerate highway construction projects with anticipated federal monies. I inflation An allowance made for an increase in price levels of operating expenditures from one fiscal year to the next. input A performance measure that identifies the amount of resources needed to provide particular products or services. J JLBC Staff The Legislative counterpart to the Governor’s Office of Strategic Planning and Budgeting (OSPB). The Joint Legislative Budget Committee Staff is often referred to as the JLBC but should not be confused with the Legislative committee of the same name. The JLBC Staff prepares an analysis of the Executive Budget as soon as it is presented to the Legislature. The analysis includes the JLBC Staff’s rec‐ ommendations for revisions in expenditures. Joint Committee on Capital Review (JCCR) Created by Laws 1986, Chapter 85, to establish the Building Renewal For‐ mula, approve the creation of Building Systems, and review the State Capital Improvement Plan. The JCCR is also re‐ sponsible for reviewing all construction projects before commencement of the project. The JCCR consists of the Glossary following 14 members of the Legislature: Chairs of the House and Senate Appropriations Committees, majority and minority leaders from the House and Senate, four members of the House Appropriations Committee, and four members of the Senate Appropriations Committee. Joint Legislative Budget Committee (JLBC) A Legislative committee consisting of the following 16 members of the Legislature: Majority Leaders of both the House and Senate; Chairs of both the House and Senate Appropriations Com‐ mittees; Chair of the Senate Finance Committee; Chair of the House Ways and Means Committee; five members of the House Appropriations Committee; and five members of the Senate Appropriations Committee. The JLBC meets as often as is necessary to transact business related to fiscal management of the State’s resources. Joint Substance Abuse Treatment Program (JSAT) Also known as “Arizona Families First,” JSAT is a substance abuse program jointly administered by the Department of Economic Security and the Department of Health Services. The program pays for services to parents, guardians or custodians whose substance abuse is a significant barrier to preserving the family. Services can also be provided to federal Temporary Assistance for Needy Families (TANF) Block Grant recipients whose substance abuse is a signifi‐ cant barrier to obtaining or maintaining employment. K KidsCare The State Children’s Health Insurance Program (SCHIP), created by the passage of the Federal Balanced Budget Act of 1997 and intended to reduce the number of uninsured low‐income children nationwide. Administered by AHCCCS, KidsCare is Arizona’s response to SCHIP. KidsCare, which was implemented November 1, 1998, is for children up to age 18 whose household incomes exceed the Title XIX eligibility limits but are below 200% of FPL. L lapsing appropriation An appropriation that terminates automatically. Except for a continuing appropriation, an ap‐ propriation is made for a certain period of time, generally one year. At the end of this period (including an ad‐ ministrative adjustment period), unexpended or unen‐ cumbered balances revert to the fund from which the ap‐ propriation was made. Also known as a “reverting appro‐ priation.” line item appropriation A method of appropriation that separates the budget into specific objects of expenditure. The specific items include Personal Services, ERE, Profes‐ sional and Outside Services, In‐State Travel, Out‐of‐State Travel, Food, Other Operating Expenditures, and Equipment. lump‐sum appropriation An appropriation made for a stated purpose, or for a named department, without specifying further the amounts that may be spent for specific activities or for particular objects of expenditure. 253 M Master List of State Government Programs Budget reform legislation requires OSPB to publish a “Master List” of pro‐ grams run by or overseen by State government. Laws 2002, Chapter 210 slightly changed the format of the Master List and designated this annual submittal as the operational plan for State agencies and conformed to the budget cycles. Required information for each agency, program and sub‐ program includes the agency description, mission statement, strategic issues, and financial and FTE position information, as well as the description, mission statements, goals, and performance measures for all programs and subprograms. OSPB still publishes the hard copy report biennially. means‐tested program Eligibility to a public assistance program restricted by an applicant’s income or other re‐ sources specified by law. Resources include bank accounts and similar liquid assets as well as real estate, automobiles and other personal property whose value exceeds specified financial limits. mission A brief, comprehensive statement of purpose of an agency, program, or subprogram. modified lump‐sum appropriation A method of appropria‐ tion in which Personal Services, Employee‐Related Expendi‐ tures, All Other Operating Expenditures and below‐the‐line items are specified in the appropriations bill. modified standard adjustment The difference, as calculated by the agency, between the actual Personal Services base and the amount allocated for Personal Services by the agency in its expenditure plan. Any amount identified as a modified standard adjustment must be explained by the agency requesting the adjustment. N non‐appropriated funds Generally, funds set up as Enter‐ prise or revolving funds. These funds are considered statu‐ torily appropriated and are not subject to the annual or biennial appropriation process. non‐lapsing appropriation An appropriation that does not revert to the fund from which it was appropriated at the end of the fiscal year, as provided by law. (SEE continuing appropriation). operational plan A practical, action‐oriented guide that directs goal‐setting to achieve meaningful results with the existing resources through the shorter budget cycle period. The operational plan should provide incremental steps towards achieving the strategic long‐range plan. SEE ALSO: Master List OSPB (Office of Strategic Planning and Budgeting) A State agency charged with preparing the Governor’s budget guidelines and the Executive Budget recommendation for review by the Governor. The Office also facilitates a strate‐ gic planning process for State government and is responsi‐ ble for implementing many of the provisions of budget reform legislation. The OSPB staff is the Executive counter‐ part to the JLBC Staff. Other Appropriated Funds All amounts, excluding General Fund amounts, appropriated by the Legislature for prede‐ termined uses. These include Special Revenue Funds, re‐ volving funds, etc. Other Operating Expenditure According to the ARIZONA ACCOUNTING MANUAL, everything using a comptroller object code of 7000. This refers to operating expenditures neces‐ sary to operate a budget unit, e.g., office supplies, utilities, communication, etc. outcome A performance measure that reflects the actual results achieved, as well as the impact or benefit, of a program. output A performance measure that focuses on the level of activity in a particular program or subprogram. P per diem compensation Compensation paid to board or commission members for their work. Per diem compensa‐ tion is a daily rate set statutorily. per diem travel Cost of meals and incidentals reimbursed to employees and board or commission members. O performance accountability A means of judging policies and programs by measuring their progress toward achieving agreed‐on performance targets. Performance accountability systems are composed of three components: defining per‐ formance measures (including outcomes), measuring per‐ formance and reporting results. object code Refers to the accounting code structure of the Arizona Accounting Manual. performance measure Used to measure results and ensure accountability. (SEE ALSO: input, output, outcome, and quality). objective A specific and measurable target for accomplishing goals. performance target Quantifiable estimate of results expected for a given period of time. one‐time adjustment A budget adjustment that must be made because of a one‐time circumstance that is not contin‐ ued through the next fiscal year. The end of a project would bring about a one‐time decrease the following year. personal services Line item of expenditure for salaries and wages paid to employees, elected officials and board or commission members. Payments for leave categories, over‐ time and other miscellaneous earnings are also recorded in this line item. operating budget A plan of all proposed expenditures other than capital expenditures (SEE capital outlay). An operating 254 budget is composed of various objects of expenditure, such as Personal Services, Employee‐Related Expenditures, In‐State Travel, etc. FY 2013 Executive Budget privately owned vehicle (POV) Those miles to be used in calculating reimbursement of staff for use of private vehi‐ cles on State business. clude annualization of programs partially funded during the current year, annualization of the pay package, restoration of vacancy savings, and one‐time increases and decreases. privatization The opening of government markets allowing for equitable competition between the private and public sectors for the privilege of delivering services to the public. standard operating adjustment An adjustment to the base budget that includes annualization of programs partially funded by the Legislative appropriation during the current year; annualization of Legislatively authorized pay pack‐ ages; restoration of vacancy savings; and a one‐time increase or decrease to the operating budget. program budgeting A budget system that focuses on pro‐ gram missions, program achievements, and program cost effectiveness. Pursuant to statute, the program structure for program budgeting is governed by the Master List structure. Program budgeting is linked to planning and accountability through alignment of the structures and merging of the planning and budget information. program enhancement An upward revision in the funding level of a specific program in order to enhance the level of services being provided by that program. program structure An orderly, logical arrangement of an or‐ ganization’s programs and subprograms. This structure provides the framework for planning, budgeting and stra‐ tegic program authorization review. Proposition 204 Medical Program A voter‐approved AHCCCS program that expands eligibility to include indi‐ viduals whose annual incomes are at or below 100% of the FPL. The program is funded through monies received by the State from the tobacco litigation settlement tobacco tax funds and the State General Fund. Q quality A performance measure that reflects the effectiveness in meeting the expectations of customers and stakeholders. R receipt Unless otherwise defined, cash received. There are five general categories of receipts: taxes, licenses and per‐ mits, charges for services, fines and forfeitures, and other receipts that do not fall into another category. resource allocation Determination and allotment of resources or assets necessary to carry out strategies within the priority framework established in the goal‐setting process. revenue Additions to assets that do not increase any liability, do not represent the recovery of an expenditure, do not represent the cancellation of certain liabilities without a corresponding increase in other liabilities or a decrease in assets, or do not represent contributions of fund capital in Enterprise and Intergovernmental Service Funds. risk management The charges assessed by the Department of Administration to guard against the risk of loss by an em‐ ployee or agency acting on behalf of the State of Arizona. S special line item See below‐the‐line item State service All offices and positions of employment in State government except offices and positions specifically ex‐ empted by law from the State personnel system. statute A written law, either new or revised, enacted by the Legislature and signed by the Governor. strategic management Process of positioning an organization so it can prosper in the future. The overall framework within which policy development, strategic, operational, quality planning, budgeting, capital outlay planning, infor‐ mation technology planning, program implementation, and evaluation and accountability take place. strategic plan A visionary guide, based on an examination of internal and external environmental and political factors, that directs goal‐setting and future resource requirements to achieve meaningful results over time. Strategic projections are long‐range and usually cover a five‐year period. Strategic Program Authorization Review (SPAR) A formal review of selected State government programs, subprograms or crosscutting functions. The SPARs determine if programs are retained, eliminated or modified. subprogram An integral component of a program that can be separately analyzed to gain a better understanding of the larger program. T tracking system A system that monitors progress, compiles management information and keeps goals on track. U uniform allowance An amount budgeted for specific agencies for the cost of uniforms required by the agency. V vacancy savings Savings generated by not filling vacant positions, by not filling newly authorized positions, or by filling a vacant position at a lower grade or step. Vacancy savings cannot be expended for any of the following pur‐ poses without the approval of the Director of the Depart‐ ment of Administration: merit increases for State employ‐ ees; funding for reclassified positions; or the creation of new positions that exceed the total number of authorized FTE, as approved by the Legislature. standard adjustment Change to the current year’s appropria‐ tion to arrive at the new year’s base budget. Examples in‐ Glossary 255 Glossary Part 2: Acronyms 256 A.R.S. Arizona Revised Statutes AVSC Arizona Veterans’ Service Commission AAC Arizona Administrative Code AZAFIS Arizona Automated Fingerprint Identification System ABOR Arizona Board of Regents AZGS Arizona Geological Survey ACJC Arizona Criminal Justice Commission BIFO Border Infrastructure Finance Office ACJIS Arizona Criminal Justice Information System CAE Commission on the Arizona Environment ACW Arizona Center for Women CAP Child Abuse Prevention ADA Americans with Disabilities Act CBHS Children’s Behavioral Health Services ADC Arizona Department of Corrections CCDF Child Care Development Fund ADE Arizona Department of Education CEDC Commerce and Economic Development Commission ADJC Arizona Department of Juvenile Corrections CERF Collection Enforcement Revolving Fund ADM Average Daily Membership CHC Community Health Center ADMIN Administration CHILDS Children’s Information Library and Data Source ADOA Arizona Department of Administration CIS Client Information System ADOT Arizona Department of Transportation CJEF Criminal Justice Enhancement Fund ADP Average Daily Population CLIA Clinical Lab Inspections Act AERB Agriculture Employment Relations Board CMDP Comprehensive Medical and Dental Plan AFDC Aid for Families with Dependent Children CMR Classification Maintenance Review AFIS Arizona Financial Information System COP Certificate of Participation AFUND Appropriated Fund COSF Capital Outlay Stabilization Fund AG Attorney General CPS Child Protective Services AGFD Arizona Game and Fish Department CRIPA Civil Rights of Institutionalized Persons Act AHCCCS Arizona Health Care Cost Containment System CRS Children’s Rehabilitative Services AHS Arizona Historical Society CSMS Combined Support Maintenance Shop AIDA Arizona International Development Authority CSO Correctional Service Officer ALTCS Arizona Long‐Term Care System CWA Clean Water Act AOOE All Other‐Operating Expenditures CWRF Clean Water Revolving Fund APP Aquifer Protection Permit DAAS Division of Aging and Adult Services APS Adult Protective Services DBME Division of Benefits and Medical Eligibility ARF Automation Revolving Fund DCYF Division of Children, Youth and Families ARRT American Registry of Radiological Technologists DD Dually Diagnosed or Developmentally Disabled ASDB Arizona School for the Deaf and the Blind DDD Division of Developmental Disabilities ASH Arizona State Hospital DDSA Disability Determination Services Administration ASPC Arizona State Prison Complex DEA Drug Enforcement Account ASRS Arizona State Retirement System DEMA Department of Emergency and Military Affairs ASU Arizona State University DEQ Department of Environmental Quality ATA Automobile Theft Authority DERS Division of Employment and Rehabilitative Services ATDA Arizona Technology Development Authority DES Department of Economic Security FY 2013 Executive Budget DHS Department of Health Services IOCC Inter‐State Oil Compact Commission DJC Department of Juvenile Corrections IRM Information Resource Management DOA Department of Administration IRMG Information Resource Management Group DOI Department of Insurance ISA Intergovernmental Service Agreement DOR Department of Revenue ISD Information Services Division DPS Department of Public Safety ISP Institutional Support Payments DSH Disproportionate Share Hospital IT Information Technology DUI Driving Under the Influence ITAC Information Technology Authorization Committee DWR Department of Water Resources JCCR Joint Committee on Capital Review EAC Eligible Assistance Children JCEF Judicial Collection Enhancement Fund EDP Electronic Data Processing JLBC Joint Legislative Budget Committee EEO Equal Employment Opportunity JOBS Job Opportunity and Basic Skills ELIC Eligible Low‐Income Children LAN Local Area Network EMS Emergency Medical Services LES Licensing and Enforcement Section EMSCOM Emergency Medical Services Communications LGIP Local Government Investment Pool EMSOF Emergency Medical Services Operating Fund LTC Long Term Care EPA Environmental Protection Agency MAG Maricopa Association of Governments EPSDT Early Periodic Screening, Diagnostic, and Testing MAO Medical Assistance Only ERE Employee‐Related Expenditures MARS Management and Reporting System FES Federal Emergency Services MD Multiply Disabled FFP Federal Financial Participation MDSSI Multiply Disabled Severely Sensory Impaired FHAMIS Family Health Administration Management Informa‐ tion System MEDICS Medical Eligibility Determinations and Information Control System FICA Federal Insurance Contribution Act MIPS Million Instructions per Second or Medicaid in the Public Schools FMAP Federal Matching Assistance Payments FMCS Financial Management Control System MIS Management Information System FPL Federal Poverty Level MNMI Medically Needy Medically Indigent FTE Full‐Time Equivalent MVD Motor Vehicle Division GAAP Generally Accepted Accounting Principles NADB North American Development Bank GADA Greater Arizona Development Authority NAFTA North American Free Trade Agreement GAO General Accounting Office NAIC National Association of Insurance Commissioners GDP Gross Domestic Product NAU Northern Arizona University GIITEM Gang and Immigration Intelligence Team Enforcement Mission NLCIFT National Law Center for Inter‐American Free Trade GITA Government Information Technology Agency OAH Office of Administrative Hearings H.B. House Bill OGCC Oil and Gas Conservation Commission NRCD Natural Resource Conservation District HAP Hazardous Air Pollutant OPM Office of Pest Management HCBS Home and Community Based Services OSHA Occupational Safety and Health Administration HI Hearing Impaired OSPB Office of Strategic Planning and Budgeting HMO Health Maintenance Organization PAS Prior Authorization Screening HRMS Human Resource Management System PASARR Pre‐admission Screening and Annual Resident Review HURF Highway User Revenue Fund PDSD Phoenix Day School for the Deaf IGA Intergovernmental Agreement PERIS Public Employee Retirement Information System IHS Indian Health Service POV Privately Owned Vehicle IM 240 Inspection and Maintenance 240 Second Emission Test PRWORA Personal Responsibility and Work Opportunity Reconciliation Act of 1986 Glossary 257 PS Personal Services SSI Supplemental Security Income PSPRS Public Safety Personnel Retirement System SSIG State Student Incentive Grant QMB Qualified Medicare Beneficiary SSRE State Share of Retained Earnings RARF Regional Area Road Fund SWCAP State‐wide Cost Allocation Plan RCF Registrar of Contractors Fund T&R Title and Registration REDI Rural Economic Development Initiative TANF Temporary Assistance for Needy Families REM Retain, Eliminate or Modify TB Tuberculosis RIF Reduction‐in‐Force TCC Transitional Child Care RMIS Risk Management Information System TDD Telecommunication Devices for the Deaf RTC Residential Treatment Center or Return to Custody TIFS Tourism Investment Fund Sharing RUCO Residential Utility Consumer Office TPO Telecommunications Policy Office S.B. Senate Bill UA University of Arizona SAMHC Southern Arizona Mental Health Center UAHSC University of Arizona Health Sciences Center SAVE Systematic Alien Verification for Entitlements USAS Uniform State‐wide Accounting System SBAC Small Business Assistance Center USGS United States Geological Survey SBCS State Board for Charter Schools UST Underground Storage Tank SBE State Board of Education VA Veterans Affairs SBIR Small Business Innovative Research VEI Vehicle Emission Inspections SBOE State Board of Equalization VI Visually Impaired SCHIP State Children’s Health Insurance Program VR Vocational Rehabilitation SDWA Safe Drinking Water Act VRIRF Victims’ Rights Implementation Revolving fund SDWRF Safe Drinking Water Revolving Fund WAN Wide Area Network SES State Emergency Services WATS Wide Area Telephone System SLI Special Line Item WFRJT Work Force Recruitment and Job Training SLIAG State Legalization Impact Assistance Grant WICHE Western Inter‐State Commission on Higher Education SMI Serious Mental Illness or Seriously Mentally Ill WIFA Water Infrastructure Finance Authority SOBRA Sixth Omnibus Budget Reconciliation Act WIPP Work Incentive Pay Plan SPAR Strategic Program Authorization Review WPF Water Protection Fund SPO State Purchasing Office WQAB Water Quality Appeals Board SPU Special Population Unit WQARF Water Quality Assurance Revolving Fund SR&E Securities Regulation and Enforcement 258 FY 2013 Executive Budget Arizona State Government Organization Citizens Legislative Branch State Senate* State House of Representatives* Legislative Council Auditor General Executive Branch Judicial Branch Governor* Supreme Court Joint Legislative Budget Committee Court of Appeals Superior Court Municipal Courts Justice of the Peace Courts* Secretary of State* Attorney General* State Treasurer* Superintendent of Public Instruction* Department of Education Corporation Commission* State Mine Inspector* Department of Transportation Department of Public Safety Department of Corrections Department of Health Services AHCCCS Department of Economic Security Department of Environmental Quality Department of Water Resources State Land Department Department of Revenue Department of Administration Other State Agencies Community Colleges Board of Regents Arizona State University University of Arizona Arizona Commerce Authority Northern Arizona University * Elected Officials Organization Chart 259 The following resources are available at www.azospb.gov BUDGET • FY 2013 Executive Budget ‐ Summary • FY 2013 Executive Budget – State Agency Budgets • FY 2013 Executive Budget ‐ Appendix • Statement of Federal Funds for Fiscal Years 2008 through 2010 • Calculation of the Appropriation Limit for Fiscal Years 2009 through 2011 • State Budget Reduction Impacts FY 2008 through FY 2011. STRATEGIC PLANNING • Master List of State Government Programs for Fiscal Years 2009 through 2011 • Five‐Year Strategic Plans for Annual Budget Units • Managing for Results, 1998 Strategic Planning and Performance Measurement Handbook (recognized by the Council of State Governments as an Exemplary State Management Program) HISTORICAL PERSPECTIVE • Revenue Data since 1971 • Expenditure Data since 1979 • Historical Enrollment Data for Major Populations such as Students, Medicaid Clients, Prisoners, and Unemployment MONTHLY UPDATES • New Caseload Enrollment Data, updated on the 15th of each month • Year‐to‐Date Revenue Collections • Agency Cash Flow Statements and Projections for Every Fund 260 Resources Acknowledgement Governor Brewer gratefully acknowledges the skilled and dedicated efforts of the staff of the Governor’s Office of Strategic Planning and Budgeting ************* Director John Arnold Assistant Directors Bret Cloninger Bill Greeney Budget and Project Managers Brandon Nee Kris Okazaki Senior Budget Analysts Dale Frost Scott Selin Jennifer Uharriet Budget Analysts Whitney Chapa Timothy Grubbs Leah Koestner Michael Moan Jill Ross Operations Analyst Richard Greene Economist Duong Nguyen Systems Analyst Joy Su Office Manager Pamela Ray