JLBC

MONTHLY FISCAL HIGHLIGHTS
April 2007
March General Fund revenue collections were $622.7 million,
or 4.5% above March 2006. This amount was $38.7 million
above the January JLBC Baseline FY 2007 forecast. For the
fiscal year-to-date, collections are $50.7 million above the
JLBC Baseline FY 2007 forecast and 8.0% above last year.
(See Table 6 on page 7).
The March “surplus” is due to the timing of individual income
tax refunds, which were processed more slowly than a year
ago. As a result, the March results should not be interpreted as
being indicative of year-end results. For example, the monthto-date April individual income tax collections have reversed
the March trend, and are running below forecast.
Individual income tax returns for tax year 2006 primarily affect
General Fund revenue collections from February through May.
As might be expected, refunds dominate the process through
April, while the state records most of its payments from
taxpayers in April and May.
While monthly data is the most convenient means of reporting
revenue information, the results can be misleading during the
middle of tax processing season. A shift of a few days in the
processing of refunds or receipts into the next month can
artificially increase or decrease the magnitude of the current
month’s collections. Given these timing considerations, it will
be the latter half of May before any definitive conclusions can
be reached on the accuracy of this year’s individual income tax
forecast.
The March results demonstrate the challenge of forecasting
monthly income tax collections and refunds. With the
previously enacted 5% reduction in individual income tax rates
for tax year 2006, refunds were expected to rise in March.
They instead fell by (4)% compared to a year ago. This
decline, at least in part, is related to slower processing of tax
returns compared to a year ago. Based on Department of
Revenue (DOR) weekly processing reports, there were
approximately twice as many returns waiting to be processed at
the end of March compared to March of last year. (Lower-

than-forecasted refunds serve to increase net revenue
collections).
The March refund processing also masked slower than
anticipated growth in the other tax categories. After adjusting
for the lower than expected level of refunds, all other revenue
categories were $(32.1) million below forecast for the month.
Overall, sales tax collections grew by only 2.1%. The single
largest component, retail sales, grew 2.0% in March, and is up
4.0% year-to-date.
The second largest sales tax component is contracting, which
fell by (0.8)% in March compared to a year ago – the first
year-over-year decline in this category in 4 years. This sales
tax category is heavily influenced by activity in the
construction industry. Despite the slowdown in the housing
industry, contracting sales had remained strong through
February (14.2% year-to-date growth).
At the March 8th Finance Advisory Committee meeting,
several panel members suggested that contracting collections
would begin to fall in the upcoming months as the existing
supply of permitted houses was completed and fewer new
permits were issued. This category will be monitored closely
in the months ahead to determine if the March results signal
the beginning of a trend of much slower contracting growth.
The two other main revenue categories – individual income tax
withholding and corporate income tax – both grew in March,
but at a slower pace than forecasted. In one positive note,
month-to-date April data suggests that corporate collections
will probably exceed the forecast.
In other fiscal news this month, the JCCR met on April 5th
(page 4). The Committee gave a favorable review to several
university projects, including a new residence hall at Northern
Arizona University. The Committee also heard a presentation
on plans for the Capitol Mall.

Table of Contents
Page #

Page #

March Revenues.......................................................................2
Recent Economic Indicators.....................................................2

Summary of Recent Agency Reports
- City of Phoenix – Convention Center Expansion Project.... 4
- AG – Incarceration Costs Offset by Monetary Judgments .. 5
- Homeland Security – Quarterly Report on Funding ............ 5
- DPS – Staffing..................................................................... 5
- ABOR – Credit Hour Threshold FTE Student Counts ........ 5
- ABOR – Enrollment Counting Day Report......................... 5
- Tourism – Arizona Welcome Center ................................... 6
- DWR – Assured and Adequate Water Supply Fund............ 6

April 5 JCCR Meeting Summary
- ASU – Polytechnic Campus Central Plant Facility................4
- NAU – Residence Hall Bond Projects ...................................4
- NAU – Building Renewal Allocation Plan ............................4
- UA – Building Renewal Allocation Plan ...............................4
- Game and Fish – Building Renewal Allocation Plan.............4
- ASDB – Capital Projects .......................................................4
- Presentation on Capitol Mall .................................................4

This report has been prepared for the Arizona Legislature by the Joint Legislative Budget Committee Staff on April 30, 2007. This report can also be
found on our Website at http://www.azleg.gov/jlbc.htm
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Joint Legislative Budget Committee

Monthly Fiscal Highlights – April 2007

MARCH REVENUES

income tax revenues were $(7.5) million below the January
JLBC Baseline forecast.

Sales Tax collections were $353.1 million in March, or 2.1%
above last year. The table below displays the March and yearto-date growth rates for the major categories.

RECENT ECONOMIC INDICATORS

Table 1

Sales Tax Growth Rates
March
Year-to-Date
Retail
2.0%
4.0%
Contracting
(0.8)%
14.2%
Utilities
30.8%
13.8%
Use
(15.0)%
0.3%
Restaurant & Bar
1.0%
8.4%
Overall, sales tax collections were weak in March. Retail
collections grew only 2.0%, and contracting collections
actually decreased from last year, which may be the result of
the continued slowdown in the housing market. The drop in
March contracting collections is the first time in four years
there has been a reduction in this category. For the month,
overall sales revenues were $(22.2) million below the January
JLBC Baseline forecast.
Individual Income Tax collections were $106.8 million in
March, or 42.0% above last year. Table 2 displays the March
and year-to-date growth rates for individual categories.
Table 2

Individual Income Tax Growth Rates
March
Year-to-Date
Withholding
7.5%
8.8%
Estimated + Final Payments
3.3%
23.4%
Refunds
(4.1)%
22.6%
March revenues were $65.7 million above the January JLBC
Baseline forecast. Of this amount, $70.8 million was due to a
decrease in refunds, partially offset by smaller decreases in
withholding tax collections and payments. The reduction in
refunds appears related to slower processing of individual
income tax returns in March compared to 2006. April
processing, however, is back on schedule, and preliminary
data indicates that the increase in April refunds may offset
some of the March decrease.
Corporate Income Tax collections were $78.7 million in
March, or 5.1% above last year. For the month, corporate

The “advance” estimates of U.S. Gross Domestic Product
(GDP) reflected an annual growth rate of 1.3% for 2007’s 1st
quarter, down substantially from the 2.5% growth pace set in
4th quarter 2006.
Although personal consumption
expenditures and state and local government spending
continued to make positive contributions to economic growth,
residential fixed investment and net exports had a negative
impact on the 1st quarter’s performance.
U.S. semiconductor billings decreased (8.3)% in February (3month moving average), the 4th consecutive monthly decline.
February’s results were down (8.6)% on a year-over-year
basis, mostly due to a competitive global market. The
Semiconductor Industry Association reported that unit sales in
some key product lines were growing but falling prices have
led to the slump in revenue growth.
Worldwide
semiconductor sales dipped (6.5)% in February.
The U.S. Consumer Price Index (CPI) (3-month moving
average) jumped 0.6% in March, but much of its recent surge
was attributable to volatile energy markets. Total energy costs
leaped 5.9%, with petroleum-based prices increasing by more
than 10%. After excluding the impact of fuel costs and food
prices (which climbed 0.3%), the core CPI inched up 0.1% in
March and was 2.5% above its level from a year ago.
The U.S. Index of Leading Economic Indicators edged 0.1%
higher in March after falling (0.6)% in February and (0.3)% in
January, according to revised estimates.
March’s
improvement was led by an expanding money supply, an
increase in manufacturing hours worked, and a drop in
unemployment insurance claims. Stock prices, interest rates,
and consumers’ expectations were among the factors holding
the leading index in check.
The U.S. Consumer Confidence Index retreated again in
April, this time by (3.9)%. The Conference Board reported
that consumers’ assessment of current conditions continues to
be clouded by rising gasoline prices, which also dampened
their view of the short-term outlook. Consumers continued to
grow more pessimistic about labor market conditions.

Table 3
General Fund Revenues
Compared to Enacted and Revised Forecasts and FY 2006 Collections
($ in Millions)
FY 2007
Difference From
Difference From
Difference
Collections
June 2006 Forecast 1/
Jan 2007 Forecast 2/
From FY 2006
March
$ 622.7
$ 56.5
$ 38.7
$ 26.7
Year-to Date
$ 6,633.6
$ 206.0
$ 50.7
$ 492.8
____________
1/ Originally enacted FY 2007 budget (June 2006)
2/ JLBC January Baseline Budget

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Joint Legislative Budget Committee

Monthly Fiscal Highlights – April 2007

Although Arizona’s job market added more than 15,000 jobs
in March 2007, the increase was below the 10-year average
increase of 17,800 jobs for the month of March. Total nonfarm employment advanced 3.8% on a year-over-year basis.
Meanwhile, the state’s unemployment rate was unchanged at
3.9% in March.
Slowing job growth reflected the recent weakness in the
state’s homebuilding industry. Construction employment
dipped by (700) jobs in March, a sharp contrast with the
average March gain of 2,400 jobs reported in the last 10 years.
The specialty trade segment, which is closely tied to
homebuilding and accounts for 68% of the state’s construction
jobs, lost (700) jobs in March and was down (3.3)% from its
October 2006 peak. The other construction sub-sectors were
essentially unchanged.
Looking ahead, it is unlikely that new home construction
activity will match last year’s levels anytime soon. Although
the number of single-family residential building permits
issued (3-month moving average) increased 13.8% in March

compared to the prior month, it was lagging last year’s pace
by (28.5)%. However, the 2,285 multi-family permits issued
in February, followed by another 1,571 permits in March,
pushed the 3-month moving average to 1,348, a 19.9%
improvement from a year ago. February’s multi-family total
was the highest recorded since December 1997. The surge in
multi-family permits was due to several large projects in
central Phoenix, downtown Tempe and Chandler being
permitted at the same time and is unlikely to be repeated in the
months ahead.
The Realty Studies group at Arizona State University reported
that the Greater Phoenix townhouse-condominium median
sales price reached a record high of $181,000 in March,
which was up 3.4% from the prior month and 4.6% from a
year ago. The number of units sold rose 28.6% from February
to 1,350 but remained (22.9)% below the number sold in
March 2006. The single-family median sales price improved
to $265,470 in March, up 2.1% from February and 0.9% from
March 2006. As the market emerged from the winter
doldrums, the number of single-family homes sold increased

Table 4
RECENT ECONOMIC INDICATORS
Indicator
Arizona
- Unemployment Rate
- Non-Farm Employment – Total
Manufacturing
Construction
- Contracting Tax Receipts (3-month average)
- Retail Sales Tax Receipts (3-month average)
- Residential Building Permits (3-month moving average)
Single-unit
Multi-unit
- Greater Phoenix Existing Home Sales
Single-Family
Townhouse/Condominium
- Greater Phoenix Median Home Sales Price
Single-Family
Townhouse/Condominium
- Phoenix Sky Harbor Air Passengers
- Arizona Average Natural Gas Price
($ per thousand cubic feet)
- Leading Indicators Index
- Business Conditions Index
(>50 signifies expansion)
- Consumer Confidence Index
- Business Leaders Confidence Index
- Arizona Personal Income
- Arizona Population
- AHCCCS Recipients
- TANF Recipients
- DOC Inmate Growth (3-month average)
United States
- Gross Domestic Product
(seasonally adjusted annual growth rate)
- Consumer Confidence Index
- Leading Indicators Index
- U.S. Semiconductor Billings (3-month moving average)
- Consumer Price Index (3-month moving average)

Time Period

Current Value

Change From
Prior Period

March
March
March
March
Jan-Mar
Jan-Mar

3.9%
2.73 million
186,800
247,800
$79.8 million
$177.3 million

0.0%
0.6%
(0.2)%
(0.3)%
(2.3)%
10.7%

(0.2)%
3.8%
(0.2)%
3.8%
8.8%
2.7%

Jan-Mar
Jan-Mar

3,962
1,348

13.8%
27.6%

(28.5)%
19.9%

March
March

5,385
1,350

25.8%
28.6%

(25.9)%
(22.9)%

March
March
February
January

$265,470
$181,000
3.28 million
$8.13

2.1%
3.4%
(2.9)%
(5.6)%

0.9%
4.6%
4.2%
(1.1)%

0.2%
(6.8)%

0.4%
(11.5)%

February
March

120.3
56.2

Change From
Prior Year

1st Quarter 2007
2nd Quarter 2007
4th Quarter 2006
July 1, 2006
April
February
Jan-Mar

106.3
53.0
$198.1 billion
6.17 million
1,037,655
80,633
36,014

1st Quarter 2007

$11.5 trillion

1.3%

2.1%

April
March
Dec-Feb
Jan-Mar

104.0
137.4
$3.40 billion
203.8

(3.9)%
0.1%
(8.3)%
0.6%

(5.3)%
(0.8)%
(8.6)%
2.4%

0.9%
2.1%
1.4%
3.6%
0.9%
(0.9)%
154 inmates

(3.7)%
(8.6)%
8.0%
3.6%
(0.2)%
(10.8)%
2,290 inmates

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Joint Legislative Budget Committee

to 5,385 but was still 25.9% below the level from a year ago.
The Realty Studies group attributed the rise in home prices to
the relative strength of the “move-up market,” which in
combination with weakness in the starter-home market is
yielding higher median sales prices on lower overall sales
volume.
The Arizona Business Conditions Index (BCI) dipped
(6.8)% in March from February, but remained above the mark
of 50 associated with an expanding economy. Steep drops in
production, new orders and purchases were the drivers in the
decline, while the employment and delivery time components
moved higher. Overall, the BCI stood (11.5)% below its level
from a year ago.
The Department of Corrections’ inmate population
increased by an average of 154 inmates per month from
January through March, a sharp increase from the 3-month
average increase of 40 inmates reported a month ago. The
total population increased by 2,290 inmates from a year ago.
The number of TANF recipients decreased (0.9)% to 80,633
in February and was (10.8)% below the number reported in
February 2006. The AHCCCS caseload climbed 0.9% in
April from the prior month and was (0.2)% below the level
from a year ago. The surge in enrollments reversed much of
the decline in AHCCCS caseloads recorded during the
previous 10 months.
JCCR MEETING
At its April 5, 2007 meeting, the Joint Committee on Capital
Review (JCCR) considered the following issues:
Arizona State University – Review of Polytechnic Central
Plant Facility– The Committee gave a favorable review of the
proposal to inter into indirect financing agreements to
construct the Polytechnic Central Plant Facility at the ASU
Polytechnic Campus with the provision that this does not
constitute endorsement of any future level of General Fund
appropriations. Under the proposal, ASU would enter into a
ground lease agreement with Polytechnic Campus Energy,
LLC to construct a Central Plant Facility to provide chilled
water and emergency power to the Polytechnic Academic
Complex and Auditorium. The LLC would issue up to $18.5
million in bonds to finance the project. The tax exempt bonds
would not count toward the university’s debt ratio. Upon
repayment of the bonds, ownership of the Central Plant
facility would revert to ASU.
Northern Arizona University – Review of New Residence
Hall Bond Project – The Committee gave a favorable review
to the proposal to finance the New Residence Hall project with
a $30 million system revenue bond issuance and $400,000
from auxiliary funds. The project will include a new 102,000
square foot residential complex with classroom, exercise, and
common spaces. The 3-story complex includes 93 residential
suites with 372 beds. The project will be centrally located on
the campus, near several existing residence halls.

Monthly Fiscal Highlights – April 2007

Northern Arizona University – Review of FY 2007
Building Renewal Allocation Plan – The Committee gave a
favorable review to the Northern Arizona University’s 2007
Building Renewal Allocation plan with the provision that
NAU report on any reallocation above $500,000 between the
individual projects in the plan. The $2.6 million building
renewal plan addresses ten projects at the Flagstaff campus.
University of Arizona – Review of FY 2007 Building
Renewal Allocation Plan – The Committee gave a favorable
review to the University of Arizona’s 2007 Building Renewal
Allocation plan with the provision that the university report on
any reallocation above $500,000 between the individual
projects in the plan. The $10.9 million building renewal plan
addresses ten projects at the Tucson campus.
Arizona Game and Fish Department – Review of FY 2007
Building Renewal Allocation Plan – The Committee gave a
favorable review to the FY 2007 Building Renewal Allocation
Plan presented by the Arizona Game and Fish Department.
The $430,800 plan includes $57,600 for fish hatchery projects,
$332,700 for shooting range projects and $40,500 for office,
storage, and wildlife area projects.
Arizona State Schools for the Deaf and Blind – Review
Scope, Purpose and Estimated Cost of Capital Projects –
The Committee gave a favorable review to the Arizona State
Schools for the Deaf and Blind capital projects to be funded
with the FY 2007 capital appropriation with the provision that
ASDB report the final Guaranteed Maximum Price (GMP) for
the projects. The ASDB plans to replace the Middle School
and High School at the Phoenix campus for $12.7 million, air
condition dormitories at the Tucson campus for $1.2 million,
and replace the Vocational Building and Student Health
Center at the Tucson campus for $5.4 million.
Capitol Mall Presentation – The Committee heard a
presentation by Kevin DeMenna on the need for renovation
and replacement of buildings on the Capitol Mall, beginning
with replacement of the House of Representatives and Senate
buildings.
SUMMARY OF RECENT AGENCY REPORTS
City of Phoenix – Report on the Phoenix Convention Center
Expansion Project – The City of Phoenix has issued its sixth
progress report on the Convention Center expansion project.
The state’s obligation for the Convention Center expansion
project is to pay the debt service and related costs on $300
million in construction bonds, beginning in FY 2010.
Based on the City’s report, the following items are
highlighted:

♦ The project is being completed in two phases. Phase 1 of
the project, consisting of a new West Building, has been
completed and hosted its first convention in July 2006.

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Joint Legislative Budget Committee

♦ Phase 2, consisting of a new North Building and a
renovated South Building, has begun and is on schedule
to be completed by December 2008.
Attorney General – Report on Incarceration Costs Offset by
Monetary Judgments – Pursuant to A.R.S. § 31-238, the
Office of the Attorney General is required to report semiannually on the use of monetary judgments awarded to
inmates to offset the costs of incarceration. According to the
statute, if an inmate obtains a monetary judgment against the
state, and the state offsets the cost of incarceration from the
total amount of the judgment, 70% of the monies set off are
transferred to the General Fund and 30% are transferred to the
Attorney General’s office to cover the cost of litigation. From
July 1, 2006 to December 31, 2006, the state did not exercise
its right to offset the costs of incarcerating inmates under this
statute, since no monetary judgments were awarded during
this time period. The agency does, however, indicate that it
believes the existing statute results in reduced negotiated
settlement amounts, which also discourages the filing of
frivolous lawsuits.
Arizona Department of Homeland Security – Quarterly
Report on Homeland Security Funding – The Arizona
Department of Homeland Security (DHLS), in response to a
request by the Joint Legislative Budget Committee, has
submitted a quarterly expenditure and allocation report for
homeland security grant monies.
In FFY 2004, approximately $55.7 million of homeland
security funding was awarded to Arizona. Of this amount,
$53.8 million was reported as obligated or expended, leaving a
balance of $1.9 million which has yet to be spent. In the
December report, the total amount of funds which were
reported as obligated or expended was $53.7 million, which
represents an overall increase of $100,000.
In FFY 2005, Arizona received $41.7 million in homeland
security grants, of which $41.7 million was reported as either
obligated or expended. The amount reported as obligated or
expended in the December report was $41.6 million,
representing an increase of $100,000.
In FFY 2006, Arizona received a total of $20.2 million in
homeland security funds. DHLS reports that all of these funds
have been expended or obligated. The department has not
previously reported any expenditures for FFY 2006 funds. In
addition, the agency reported the state received a supplemental
grant amount of $6.4 million for Operation Stonegarden, a
program that reimburses local law enforcement agencies for
increasing border patrols, and that all of these funds have been
obligated.
Arizona Department of Public Safety – Report on Staffing –
Pursuant to Laws 2006, Chapter 344 (General Appropriation
Act), the Arizona Department of Public Safety (DPS) is
required to report quarterly on staffing levels for both crime
lab and sworn personnel. The department indicates they
currently have 143 authorized crime lab positions. Of this

Monthly Fiscal Highlights – April 2007

amount, 127 (or 88.8%) are currently filled, as compared to
124 filled positions at the end of the prior quarter.
DPS currently has 1,358 authorized sworn full-time positions,
including 100 authorized sworn positions for the Gang and
Immigration Intelligence Enforcement Mission (GIITEM). Of
the 1,358 authorized sworn positions, 1,131 (or 83.3%) are
currently filled, representing a net increase of 12 positions in
the 3rd quarter.
Arizona Board of Regents – Credit Hour Threshold FTE
Student Counts – Pursuant to A.R.S. § 15-1626, the Arizona
Board of Regents (ABOR) is required to report on the number
of students that met or exceeded the undergraduate credit hour
threshold at universities under ABOR’s jurisdiction during
FY 2007. A.R.S. § 15-1626 states that the Legislature shall
not appropriate monies to support, and ABOR may
differentiate tuition paid by, university students who have
exceeded 155 credit hours in FY 2006, 150 credit hours in
FY 2007, and 145 credit hours in FY 2008 and each year
thereafter. A.R.S. § 15-1626 exempts certain types of credits
from the undergraduate credit hour threshold, such as credits
earned in a degree program that requires credits above the
threshold.
ABOR reported 235 full-time equivalent (FTE) students over
the 150 credit hour threshold systemwide as of the 21st day of
the fall 2006 semester and 354 FTE students over the
threshold as of the 21st day of the spring 2007 semester.
According to 21st day counts in the fall 2005 semester, there
were 183 FTE students over the threshold of 155 credit hours
for that year. In total, the number of FTE students over the
credit hour threshold increased by 52 from fall 2005 to fall
2006. This increase may be at least partially due to the lower
150 credit hour threshold in FY 2007. Table 5 below
summarizes the number of FTE students in excess of the 150
credit hour threshold by campus:
Table 5

Credit Hour Threshold FTE Students
Campus
ASU–Main
ASU–East
ASU–West
NAU
UofA–Main
UofA–HSC
Total

Fall 2006
141
16
11
14
48
5
235

Spring 2007
196
0
0
17
141
0
354

Arizona Board of Regents – Enrollment Counting Day
Report – Laws 2006, Chapter 352 required the Arizona Board
of Regents (ABOR), by April 15, 2007, to report on full-time
equivalent (FTE) student enrollment counts as of the 21st day
and the 45th day of the spring 2007 semester. Chapter 352
specified the 45th day because A.R.S. § 15-1466.01 requires
community colleges to conduct their enrollment counting at

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Joint Legislative Budget Committee

that time.
Historically, the universities conduct their
enrollment counting on the 21st day.

Monthly Fiscal Highlights – April 2007

eventually generate approximately $1,100,000 per year for the
operations of the AAWS program.

ABOR reports that, throughout the Arizona University
System, enrollment dropped from 103,173 FTE students on
the 21st day to 102,010 FTE students on the 45th day, a decline
of (1,163) FTE students, or (1.1)%. If the part-statutory, partconventional student enrollment funding formula used by
JLBC Staff were applied to the lower, 45th day enrollment
counts, annualized General Fund support for the university
system as a whole would decline by $(8.6) million, or (0.9)%
of FY 2007 General Fund expenditures.
Comparing these figures to those reported by ABOR for the
fall semester, enrollment dropped from 110,580 FTE students
on the 21st day to 108,769 FTE students on the 45th day, a
decline of (1,811) FTE students, or (1.6)%.
Office of Tourism – Report on the Distribution of Monies to
the City of Yuma to Establish an Arizona Welcome Center –
Laws 2006, Chapter 335 appropriated $2,000,000 to the Office
of Tourism for distribution to the City of Yuma for the
construction of an Arizona Welcome Center. The Office of
Tourism is required to inform the Joint Legislative Budget
Committee 1) that all plans for the Welcome Center are
delivered to the City of Yuma and 2) that the City received
ownership of the property. The Welcome Center is to be built
on property that was federally owned and required federal
legislation to transfer ownership to the City.
The Office of Tourism reports that the City of Yuma provided
the necessary plans for the Welcome Center and confirmed
that the required legislation was signed into federal law (P.L.
109-454). Although there is not a specified timeline for the
actual transfer of ownership, the Bureau of Reclamation and
the City of Yuma are currently addressing the issue.
The City of Yuma has requested approximately $60,000 for
part of the design costs, which cannot exceed $500,000 of the
$2,000,000. The City of Yuma estimates the total cost of the
project will be $4,000,000. The City is responsible for the
ongoing operational costs of the Welcome Center.
Arizona Department of Water Resources – Report on Fees
Collections in the Assured and Adequate Water Supply Fund –
Pursuant to a FY 2007 General Appropriation Act footnote,
the Arizona Department of Water Resources (DWR) is
required to report quarterly on the amount of fees collected by
the Assured and Adequate Water Supply (AAWS) Program.
Laws 2005, Chapter 217 established the AAWS
Administration Fund to provide for the costs of the AAWS
Program. New fees were approved in September 2006.
Collections in the first quarter of FY 2007 amounted to
$74,500. The collections in the second and third quarters
amounted to $250,200 and $212,200, respectively. Total
collections in the first 3 quarters of FY 2007 amount to
approximately $536,900. DWR anticipates that the fees will

Page 6

State of Arizona
General Fund Revenue: Change from Previous Year and January Baseline Forecast
March 2007
Current Month

FY 2007 YTD (Nine Months)

Change From
Actual

March 2006

March 2007

Amount

Change from
Actual

Revised Forecast
Percent

Amount

Percent

March 2006

March 2007

Amount

Revised Forecast
Percent

Amount

Percent

Taxes
Sales and Use

353,088,173

$7,320,177

Income - Individual

106,837,038

31,601,874

42.0

65,856,989

- Corporate

78,660,729

3,832,354

5.1

(7,534,713)

Property
Luxury
Insurance Premium

2.1 %

($22,190,827)

(8.7)

$3,381,044,081

$238,352,108

2,521,715,798

211,979,184

9.2

77,655,885

3.2

627,961,885

117,950,325

23.1

5,396,010

0.9

563,132

(50,212)

(8.2)

113,132

25.1

14,825,462

4,598,417

(214,290)

(4.5)

(358,583)

(7.2)

49,647,687

1.9

248,135,124

99,883,905

(3,459,527)

(3.3)

1,883,905

Estate

52,430

(415,449)

(88.8)

52,430

Other Taxes

47,257

(5,502)

(10.4)

(29,868)

Sub-Total Taxes

(5.9) %
160.7

$643,731,081

$38,609,425

6.4 %

$37,792,465

-(38.7)
6.2 %

(825,566)
484,420
$6,842,988,891

(538,251)

7.6 %

(3.5)

($40,968,279)

636,102

1,037,629

2.1

(2,984,216)

6,087,819

2.5

(1,185,745)

(12,320,512)

--

(9,295)

(1.9)

$562,539,007

9.0 %

(1.2) %

4.5
(5.7)
(0.5)

127,107

(13.3)

(61,225)

(11.2)

$38,615,639

0.6 %

Other Revenue
Lottery

2,978,600

License, Fees and Permits

3,044,821

7,886

0.3

Interest

9,540,153

3,333,861

53.7

3,240,153

Sales and Services

4,097,726

5.2

(1,499,074)

Other Miscellaneous

1,646,108

(285,192)

Disproportionate Share
Transfers and Reimbursements
Sub-Total Other Revenue
TOTAL BASE REVENUE

(6,068,600)

202,856
(1,284,122)

0

0

3,642,984

2,382,188

24,950,392

(1,425,931)

$668,681,473

$37,183,494

(67.1)

(43.8)
-188.9

(2,921,400)

(49.5)

27,981,000

(8,975,700)

(24.3)

(151,979)

(4.8)

30,319,685

6,582,712

27.7

51.4

73,126,439

31,366,175

75.1

9,414,180

(26.8)

36,689,584

(2,627,929)

(6.7)

(2,365,331)

(6.1)

(14.8)

24,255,344

5,459,270

29.0

3,903,905

19.2

0
2,492,984

-216.8

(3,544,300)
(27,821)

0

0

--

0

11,683,224

(7,071,237)

(37.7)

4,750,327

(11.2)
(0.1)
14.8

-68.5

(5.4) %

875,492

3.6 %

204,055,276

24,733,291

13.8 %

12,130,960

6.3 %

5.9 %

$38,667,957

6.1 %

$7,047,044,167

$587,272,298

9.1 %

$50,746,599

0.7 %

One-Time Revenue
Urban Revenue Sharing
Sub-Total Transfers In
TOTAL REVENUE

(45,935,888)

(10,500,144)

29.6

0

0.0

(413,422,992)

(94,501,297)

29.6

0

0.0

(45,935,888)

(10,500,144)

29.6 %

0

0.0 %

(413,422,992)

(94,501,297)

29.6 %

0

0.0 %

4.5 %

$38,667,957

6.6 %

8.0 %

$50,746,599

0.8 %

$622,745,585

$26,683,350

$6,633,621,175

$492,771,001

Table 6