JLBC - Monthly Fiscal Highlights

1716 W. Adams
Phoenix, AZ 85007
Phone:
(602) 926-5491
Fax:
(602) 926-5416

www.azleg.gov/jlbc.htm

“Year-to-date,
General Fund
revenue
collections are
$(72.0) million
below forecast”.

April 2008

This Month
Total March General Fund revenue
collections were $539.7 million, or (13.3)%
below March of last year. This amount was
$(43.8) million below the forecast used for the
recently enacted FY 2008 budget revisions.
Year-to-date, General Fund revenue
collections are $(72.0) million below forecast.
For the first 9 months of FY 2008, General Fund
collections are down $(357.6) million or (5.1)%
when compared to last year. When factoring
in Urban Revenue Sharing and other
adjustments, the year-to-date collections of
$6.19 billion are (6.6)% below last year. (See
page 9 for detail information).
The March decrease of (13.3)% represents the
third consecutive month of decreases in the
(13-17)% range, which are the largest
percentage year over year declines since April
2002. The March decline in revenues includes
all of the 3 main revenue categories:
• Sales tax collections were down (1.0)%
compared to March 2007, and were $(8.7)
million short of the monthly forecast.
• Individual income tax collections were
down (42.0)%, which was $(23.4) million
below forecast. The magnitude of this
decrease, however, probably reflects a
faster processing of individual tax refunds
compared to last year.
• Corporate income tax collections were
down (22.0)%, which was $(9.6) million
below forecast.

FY 2008 Budget Plan
The decline in state revenues has led to a FY
2008 budget shortfall. Based on a compromise
Executive-Legislative revenue forecast in
March, the estimated shortfall was $(1.21)
billion. This projection was based on an overall
FY 2008 revenue decline of (0.9)% compared
to FY 2007 prior to tax law changes. After
adjusting for the latter factor, forecasted
revenues would decline (3.4)% for the year.
On April 18th, the Governor signed House Bill
2620 (Laws 2008, Chapter 53) to address the
state’s current year budget shortfall. The 4
main components of the budget plan are:
•
•
•
•

$310 million in state agency reductions,
$296 million in agency fund balance
sweeps,
A withdrawal of ($487 million) from the
Budget Stabilization Fund (BSF), and
A delay in payment of $272 million to
school districts (K-12 rollover).

These solutions total $1.36 billion, compared to
the compromise revenue shortfall estimate of
$(1.21) billion. The budget plan exceeded the
forecasted shortfall in the event revenues
drop below the compromise forecast. As
noted above, year-to-date revenues through
March are $(72.0) million below that forecast.
April collections are still being tabulated and
their effect on the revenue forecast is
uncertain. Preliminarily, April individual
income tax collections are higher than
forecast, but we continue to be uncertain as
to how much processing speed has affected

Table of Contents
March Revenues..................................................... 2
Recent Economic Indicators ................................ 3
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on April 30,
2008.

JLBC Meeting Summary
• Atty General – Ashley Furniture Settlement ... 6
• Atty General – Caremark Settlement ............. 6
• Atty General – Uncollectible Debts Report.... 6
• DES – Transfer of Appropriations....................... 6
• ADE – Transfer of Appropriations...................... 6
• Pioneers’ Home – Transfer of Appropriations. 6

• DPS – Public Safety Communication Project . 7

Summary of Recent Agency Reports
• ADOA – Self-Insured Health Benefits................ 7
• ADC – Monthly Bed Plan Update .................... 7
• ADC/ADOA – Status of Prison Beds ................. 7
• ACJC – Meth Interdiction Efforts ...................... 7
• DHS – Federal 317 Vaccines Program............ 8
• DPS – Quarterly Report on GIITEM.................... 8
• DWR – Water Supply Program Fees ................. 8

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

This Month

(continued)

the magnitude of the increase. While
individual income tax appears higher than
expected, April corporate income tax
collections will probably fall below forecast.
Given the current uncertainty of revenue
collections, HB 2620 addresses the implications of the year-end budget balance being
either higher or lower than expected:
•

If the state’s budget shortfall is less than
$(1.36) billion, the state would incur a
year-end surplus. Under HB 2620, those
additional monies would reduce the size
of the $272 million K-12 rollover. With
budget solutions of $1.36 billion and a
projected compromise shortfall projection
of $(1.21) billion, the surplus would be
$152 million if the revenue forecast was
accurate to the dollar.

•

If the revenues decline faster than the
compromise estimate and we incur a
shortfall greater than $(1.36) billion, the
state may utilize the $212 million
remaining in the BSF to balance the
budget.

During the month of May, the deposit of
individual income tax payments should be
completed and most refunds will have been
processed. This additional month of activity,
while not being definitive, will shed more light
on the status of the shortfall.
JLBC/JCCR Meetings – The Monthly Fiscal
Highlights include a summary of the April JLBC
meeting (page 6). There was no JCCR
meeting in April.

March Revenues

“In the first 9
months of FY
2008, sales
tax revenues
are down
(1.6)%
compared to
last year ”.

Sales Tax collections were $349.6 million in
March. This amount was down (1.0)%
compared to last March, and $(8.7) million
below the compromise forecast. In the first 9
months of FY 2008, sales tax revenues are
down (1.6)% compared to last year. Table 1
displays the March and year-to-date growth
rates for selected categories.
Table 1

Sales Tax Growth Rates

Retail
Contracting
Utilities
Use
Restaurant & Bar
Hotel/Motel
Amusement
Transportation

March
(4.7)%
(14.9)%
16.3%
19.0%
4.0%
12.4%
22.7%
9.1%

Year-to-Date
(3.1)%
(8.7)%
7.9%
10.4%
0.5%
3.0%
8.8%
(29.2)%

There were significant variations in March
collections by sector. Retail and contracting
collections together account for two-thirds of
all sales tax revenues. The retail sector
declined by (4.7)%, and contracting fell by
(14.9)%.
Certain March tourism-related collections,
representing February transactions outperformed the yearly average collections.
Specifically, revenue from hotel/motel bed

taxes, amusement, transportation, and
restaurants and bars was up $3.4 million from
the same period the previous year (see
growth rates in Table 1 above).
As additional data becomes available over
the next few months, JLBC Staff will assess
whether this revenue increase was an
anomaly associated with the Super Bowl
hosted in Glendale on February 3rd or was the
beginning of a recovery in the tourism
industry. In the October 2007 edition of the
Monthly Fiscal Highlights, JLBC Staff estimated
that the Super Bowl would generate between
$3.6 and $5.5 million in State General Fund
revenues, based on projected sales tax
collections. Staff will revisit this estimate as
more data becomes available.
Individual Income Tax collections were $61.9
million, or (42.0)% below last year. Year-todate, income tax collections are (6.7)% below
last year. March collections were $(23.4)
million less than the compromise forecast.
Table 2 displays individual category growth
rates.

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

March Revenues

3

(Continued)

Table 2

Individual Income Tax Growth Rates
March
Year-to-Date
Withholding
2.2%
2.2%
Estimated +
6.6%
(12.3)%
Final Payments
Refunds
23.6%
21.4%
March withholding was 2.2% above last year,
which is the same growth rate as that reported
on a fiscal year cumulative basis.
Estimated and final payments increased yearover-year by 6.6% in March, the first positive
growth rate reported in this category since
October 2007. This increase may be
attributable to early filing of tax returns by efilers. A Department of Revenue report
indicates that year-to-date e-filing was up by
14.3% at the end of March.
March refunds of $284.2 million were $54.2
million, or 23.6% over the prior year. The
actual amount of refunds for the month
exceeded the forecast by $28.7 million.
The final forecast variance will be highly
dependent on the outcome of this year’s
filing season, most of which will be known by
the end of May.

Income tax return data through the third
week of April suggests that the Department
of Revenue is slightly ahead of last year’s
processing.
Corporate Income Tax collections were $61.3
million, or (22.0)% below last year. This
amount is $(9.6) million below the revised
JLBC Baseline forecast for the month.
Luxury Tax collections for March were $(2.1)
million below the compromise forecast. This
shortfall was primarily due to a large, onetime refund of liquor tax revenues. Year to
date, revenues are $(2.0) million below
forecast due to the shortfall in March.
Budget Plan Transfers for March were $15.0
million. As noted above, the recently
enacted FY 2008 Budget Plan includes fund
sweeps and transfers totaling $295.9 million.
The $15.0 million transferred in March was
from the Clean Elections Fund. That
amount, combined with $3.9 million
transferred in December 2007, totals $18.9
million, which is $(1.1) million below the
amount included in the Budget Plan.

Table 3

General Fund Revenues
Compared to Enacted Forecast and FY 2007 Collections
($ in Millions)
FY 2008
Difference From
Difference
Collections Compromise Forecast
From FY 2007
March
$ 539.7
$ (43.8)
$ (83.1)
Year-to-Date
$ 6,194.9
$ (72.0)
$(438.7)

Recent Economic Indicators
NATIONAL
According to the Bureau of Economic
Analysis’ advance 2008 1st quarter estimate of
U.S. Real Gross Domestic Product (GDP), the
economy grew by 0.6% over the 4th quarter of
2007. The real GDP also increased by 0.6% in
the 4th quarter, the lowest quarterly growth
since 2002. The common definition of a

recession is two consecutive quarters of
negative change in the GDP.
The Conference Board’s U.S. Consumer
Confidence Index fell from 75.0 in March to
64.5 in March. Currently, the index is (40.4)%
below March 2007 levels. While the
Consumer Confidence Index stands at a 5year low, the Expectations Index, a

“Year-to-date,
income tax
collections are
(6.7)% below
last year”.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

Recent Economic Indicators

(Continued)

component of the Consumer Confidence
Index, reached a 35-year low.
U.S. semiconductor billings (3-month moving
average) decreased March by (4.6)% and by
(3.5)% year over year. The Semiconductor
Industry Association attributes slow growth in
the U.S. economy to the decline in consumer
purchases of electronic products.
The U.S. Consumer Price Index (CPI) (3-month
moving average) increased by (0.3)% in
March. The year over year increase was 4.4%.
Nine of the 10 CPI sub-indices increased
slightly in the month of March.
ARIZONA
March total statewide non-farm employment
decreased, year over year, by (0.3)%. Six of
the 11 major industries reported employment
gains from the previous month, while 3
reported losses and 2 remained flat. By
comparison, the March year-over-year
average growth rate in the prior 10 years was
3.2%. Arizona’s unemployment rate remained
flat at 4.0%. In comparison, the national
unemployment rate was 4.8%.
“Construction
employment
decreased by
(0.4)% from
February and
by (10.9)% year
over year with
losses spread
among all subsectors ”.

Construction employment decreased by
(0.4)% from February and by (10.9)% yearover-year with losses spread among all subsectors. March was the seventh consecutive
month of job losses. The average year-overyear growth rate for March in the past 10
years was 5.5%. Manufacturing employment
was essentially unchanged from February and
decreased by (2.1)% year-over-year.
Permitting activity in the state provides
perspective on future construction projects in
the state. Statewide, the number of building
permits authorized (3-month moving average)
totaled 2,183, including 1,575 single-family
residential building permits and 608 multifamily building permits. The number of
permits authorized in the single family
segment increased 6.7% over the prior period,
while the number of permits in the multi-unit
segment decreased (43.0)%. Year-over-year
permitting activity in the single-family and
multi-family segments are down (54.8)% and
(42.4)%, respectively. While permitting activity
in the multi-unit market remains volatile,
activity in the single-family segment is
hovering around levels not seen since 1991.
The Real Estate Center at Arizona State

University reported the Greater Phoenix
single-family median resale home price in
March, was unchanged from February’s price
of $220,000. The number of single-family
homes sold in March however, increased
16.8% from the prior month to 4,335 homes.
Year-over-year, the number of single family
homes sold and median resale home price
are down (19.5)% and (17.1)%, respectively.
Relative to February, the townhousecondominium median price also remained
unchanged in March, totaling $165,000. In
total, 685 units were bought and sold. Yearover-year, the median resale price and
number of units sold has decreased (8.8)% and
(49.3)%, respectively.
The Phoenix metropolitan area supply of
housing indicator continues to show some
improvement. This indicator uses the ratio
between the number of homes listed for sale
on the Arizona Regional Multiple Listing
Service (ARMLS) and the number of homes
sold in a given month to gauge the supply
and demand of homes. Based on March MLS
data, it would take 13.3 months to sell the
current inventory of homes, 6.3 months less
than January levels and 5.1 months longer
than a year ago.
The Arizona Business Conditions Index (BCI)
increased 6.5% in March to 49.3 and is down
(11.0)% year over year. March was the first
month in which an increase in the index
reported since November 2007. A reading
below 50 suggests a slowdown in the overall
level of economic activity in the near term.
Four of the 5 components that make up the
composite index increased in March, with the
largest increase occurring reported for the
production component.
In April, AHCCCS caseload’s totaled 1,101,367
members, an increase of 1.0%, or 11,124
members, above the March totals. Year-overyear, the AHCCCS caseload has increased by
6.1%, or 63,712 members.
The number of TANF recipients has declined
(0.4)% year-over-year, and (0.3)% relative to
last month, to 79,814 recipients. The state
budget projects 84,700 recipients in FY 2008.
Between January and March, the Department
of Corrections’ (ADC) inmate population
increased by 205 inmates per month to an
average population of 38,121 inmates. Fiscal
year-to-date however, ADC’s inmate
population growth totals 142 inmates, less than
the budgeted increase of 160 inmates per
month.

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

Recent Economic Indicators

(Continued)

Table 5

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
S&P/Case-Shiller Home Price Index
- Months Supply of Housing (ARMLS)
- 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
- Real 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)

Change From
Prior Period

Change From
Prior Year

Time Period

Current Value

March
March
March
March
Jan-Mar
Jan-Mar

4.0%
2.68 million
179,600
203,700
$65.6 million
$166.7 million

0.0%
0.4%
(0.1)%
(0.4)%
(7.9)%
(2.0)%

8.1%
(0.3)%
(2.1)%
(10.9)%
(17.7)%
(6.0)%

Dec-Feb
Dec-Feb

1,575
608

6.7%
(43.0)%

(54.8)%
(42.4)%

March
March

4,335
685

16.8%
(10.5)%

(19.5)%
(49.3)%

March
March
January
March
February
December

$220,000
$165,000
180.06
13.3 months
3.3 million
$7.86

December
March

118.5
49.3

4th Quarter 2007
1 st Quarter 2008
4th Quarter 2007
July 1, 2007
April
February
Jan-Mar

79.8
40.4
$212.5 billion
6.34 million
1,101,367
79,814
38,121

1st Quarter 2008

$11.7 trillion

0.6%

2.5%

March
February
Dec-Feb
Jan-Mar

64.5
135.0
$3.29 billion
212.8

(15.6)%
(0.3)%
(4.6)%
0.3%

(40.4)%
(1.7)%
(3.5)%
4.4%

(0.0)%
(0.0)%
(4.1)%
(3.4) months
(0.8)%
(22.4)%
(0.5)%
6.5%
(21.7)%
(4.9)%
0.8%
173,066
1.0%
(0.3)%
205 inmates

(17.1)%
(8.8)%
(18.2)%
5.1 months
0.6%
(8.7)%
(0.4)%
(11.0)%
(24.2)%
(22.2)%
5.5%
2.8%
6.1%
(0.4)%
2,108 inmates

5

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

JLBC Meeting
Attorney General – Review of Allocation of
Settlement Monies – The Committee gave a
favorable review to the allocation plan for
$410,000 received by the state from the
Southwestern Furniture of Wisconsin consent
judgment. The company does business as
Ashley Furniture Homestore. They will pay
about $2,000 in restitution to consumers who
were charged a restocking fee and will
replace furniture or provide refunds totaling
$8,000 for consumers who received defective
furniture. In addition, Ashley Furniture
Homestore will pay the Attorney General (AG)
$400,000 for the costs of the investigation. In
January 2008, the AG entered into a consent
judgment with Ashley Furniture Homestore
based on a large number of consumer
complaints concerning very late or defective
deliveries.
Attorney General – Review of Allocation of
Settlement Monies – State v. Caremark – The
Committee gave a favorable review to the
AG’s allocation plan for the $659,000 that
Arizona will receive as a result of the multistate suit brought against Caremark, a
pharmacy benefit manager. The suit alleged
that Caremark falsely interchanged
consumers’ prescriptions without physician
approval. The $659,000 must be used by nonprofit organizations to benefit lower-income,
disabled, or elderly consumers concerning the
cost differences among medications or for
similar purposes. In addition, the AG will
receive $1 million for attorney’s fees and
investigative costs, consumer fraud
education, and for investigations and
enforcement of the Consumer Fraud Act.
Attorney General – Review of Uncollectible
Debts – The Committee gave a favorable
review to the AG’s recommendation that $9.1
million in state debts be classified as
uncollectible. Of the $9.1 million identified as
uncollectible by the AG, 94% are classified as
debt that was discharged in bankruptcy,
settled, the debtor is a defunct corporation,
or the debtor has no assets, wages, and/or a
negative credit report. The remaining is
classified as uncollectible because the AG
was unable to locate the debtor or the cost
of collection exceeds the amount of debt
owed.

Department of Economic Security – Review of
Requested Transfer of Appropriations – The
Committee gave a favorable review to the
Department of Economic Security’s (DES)
request to transfer funds from the Day Care
Subsidy Special Line Item (SLI) to the
Temporary Assistance for Needy Families
(TANF) Cash Benefits SLI. Under this request
$45.3 million in General Fund monies will be
transferred in order to fulfill technical and
federal requirements associated with the
receipt of $30 million in additional TANF
funding.
DES currently receives $226.6 million in TANF
Block Grant funding from the federal
government each year. These monies are
spent for a variety of purposes. In FY 2008,
DES applied for and received an additional
$30 million in money from the TANF
Contingency Fund. These monies will be used
to fund supplemental appropriations for
Children Services, Adoption Services, Child
Protective Services caseworkers, and eligibility
workers in the Family Assistance Administration.
Department of Education – Review of Request
to Transfer Surplus FY 2008 Basic State Aid
Monies to Address Shortfalls in Other Programs
– The Committee gave a favorable review to
the department’s proposal to transfer $7.1
million in surplus FY 2008 Basic State Aid
monies to the Additional State Aid program in
order to address anticipated funding
shortfalls.
The Additional State Aid program funds the
“Homeowners’ Rebate,” which currently pays
37% of each homeowner’s primary property
taxes for schools and 100% of primary
property taxes that exceed 1% of the taxable
value of a home.
Arizona Pioneers’ Home – Consider Approval
of Requested Transfer of Appropriations – The
Committee gave a favorable review to the
agency’s plan to transfer $301,100 from the
Personal Services Line and $49,600 from the
Prescription Drug Special Line Item to the
Employee Related Expenditures (ERE) line in
FY 2008. In FY 2008, ERE expenses such as
state employee health insurance and other
non-salary personnel costs are estimated at
$1.9 million as compared to the appropriated
amount of $1.6 million.

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

JLBC Meeting

7

(Continued)

Department of Public Safety –
Quarterly Review of the Arizona
Public Safety Communication
Advisory Commission – The
Committee gave a favorable
review to the FY 2008 second
quarter expenditures and progress

report for the statewide
interoperability design project. The
interoperability design project was
created to allow public safety
personnel from one agency to
communicate, via mobile radio,
with personnel from other agencies
in order to coordinate their actions

in the event of an emergency.
Second quarter expenditures
totaled $404,300 of approximately
$3.9 million in FY 2008 appropriated
funding.

Summary of Recent Agency Reports
Arizona Department of Administration
– Annual Actuarial Report on SelfInsured Health Benefits – Pursuant to
A.R.S. § 38-654 the Department of
Administration has submitted its
annual report on the status of the
self-insured state employee health
benefit program. The report finds
that the system is actuarially sound in
the current year, with a projected
ending balance of $90.4 million. The
estimated amount needed to cover
the Incurred But Not Reported (IBNR)
reserve is $59.8 million in FY 2008.
Total enrollment in the plan is 65,018
and is estimated to grow at 0.6%
annually. The report provides a
preliminary estimate of a 9.4%
increase in premiums for Plan Year
2009, which begins October 1, 2008
for active employees.
Arizona Department of Corrections –
Report on Monthly Bed Plan Update
–The Department of Corrections
(ADC) has provided a report to JLBC
Staff with updated information
related to their bed plan. Based on
the report, all vendors in which the
department contracts with are
largely in compliance with the terms
and conditions of their contracts.
Relative to the contracted beds in
the State of Indiana however, ADC
indicates that they have agreed to
transfer all 630 inmates out of the
facility later this fiscal year. As a
result, the department issued a
Request for Proposal for replacement
beds on March 13 and responses
were due April 14.

Department of Corrections/Arizona
Department of Administration –
Report on the Status of Public and
Private Beds – Laws 2007, Chapter
261 authorized the Arizona
Department of Administration
(ADOA) to contract for 2,000 new
private prison beds as well as the
construction of 4,000 new public
beds – to be funded via a 20-year,
$200 million lease-purchase
agreement.
2,000 Private Beds:
On February 15, the Arizona
Department of Corrections and
ADOA awarded a contract to build
and operate 2,000 private prison
beds to Management and Training
Corporation (MTC). The beds will
be located in Kingman, Arizona
and are anticipated to be
constructed in 16 months from the
time MTC secures financing for the
facility. When financing would be
secured however, was not included
in the report.
4,000 Public Beds:
During the third quarter, ADOA
awarded the contract for Architectural and Engineering Services. In
addition, ADOA awarded the
contract for Construction Manager
at Risk. Currently, vendors are
working on the conceptual design
of the facilities and ADOA
anticipates the first 1,000 (of the
4,000) beds will now open in July
2009, as opposed to May 2009. With
the revised completion date for the
initial 1,000 beds, the opening of the
final 1,000 beds is projected to be
delayed until March 2010.

Arizona Criminal Justice
Commission – Report on Statewide
Methamphetamine Interdiction
Efforts – Pursuant to Laws 2006,
Chapter 337, the Arizona Criminal
Justice Commission (ACJC) is
required to report quarterly on the
use of $3 million appropriated in FY
2007 for increased
methamphetamine interdiction
efforts by the counties.
All monies have been allocated to
counties based on the formula in
Chapter 337, which appropriates
$50,000 to each county and
distributes the remaining monies
based on county population.
ACJC reported that as of
December 31, 2007, $2.6 million has
been spent by the counties. Of this
amount, 9 counties have spent a
total of $2 million on the Arizona
Meth Project, a prevention
program modeled after the
Montana Meth Project, whose goal
is to reduce first-time
methamphetamine use among
Arizona youth. Maricopa County
has taken on the role of project
coordinator and has finalized
intergovernmental agreements
with other counties to use Chapter
337 funding for the project.
The remaining $623,900 was spent
on meth education programs, drug
task forces, prosecution costs, and
treatment programs. The remaining
unspent funds total $345,400 and
are unencumbered as of the end of
the second quarter of FY 2008.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

Summary of Recent Agency Reports
Department of Health Services –
Report on Federal 317 Vaccines
Program – Pursuant to a footnote in
the FY 2008 General Appropriation
Act, the Department of Health
Services (DHS) has submitted a
report on the amount of federal
monies received for FY 2007 for the
Federal 317 Vaccines program.
The Federal 317 Vaccines program
provides immunizations to children
in public settings, such as malls and
clinics. The department reports
that as of February 29, 2008, it has
received $41,100 in Federal 317
monies. The vaccine orders for the
Vaccines for Children Direct
Assistance and 317 Direct
Assistance amounts are no longer
shared with the department.
Instead, DHS is provided with an
estimated target budget which
serves as a ceiling for Arizona’s
vaccine purchase. For FY 2008, the
target amount is approximately $74
million. In FY 2007, the target
amount was $81 million.
Arizona Department of Public
Safety – Quarterly Report on GIITEM
– Pursuant to Laws 2007, Chapter
255 (General Appropriation Act),
the Arizona Department of Public
Safety (DPS) is required to report
quarterly on the Gang and
Immigration Intelligence Team
Enforcement Mission (GIITEM).
DPS Personnel:
In the second quarter of FY 2008,
DPS spent or encumbered $2.1
million of the $10 million
appropriation for the 100 DPS
immigration staff. Fiscal year-todate, DPS has spent a total of $3.8
million from this appropriation. Of
the 100 DPS personnel, at least 50
sworn DPS positions are to be used
for immigration and border security
and up to 50 DPS positions are to
expand GIITEM’s public awareness,
investigation and intelligence
efforts. As of December 31, 2007,
57 of the 100 DPS positions were
filled, of which 28 were assigned to
immigration enforcement, and 29
work with gang enforcement.

During the second quarter, DPS
hired 1 new DPS sworn officer and 1
civilian for GIITEM efforts.
Local Law Enforcement Efforts
(Multi-Jurisdictional Task Force):
In the first 2 quarters of FY 2008, DPS
spent or encumbered $633,300 of
the $10 million for local law
enforcement grants. As of
December 31, 2007, 14 agencies
statewide contributed one
detention officer to the Detention
Liaison (DLO) Program that assists
with collection of gang and human
smuggling intelligence information
at various correctional facilities.
Currently, 23 federal, county and
local law enforcement agencies
provide 49 officers to GIITEM efforts.
In the second quarter, 5 new
agencies provided 24 officers, and
another 6 have agreements but
are unable to provide GIITEM staff.
Department of Water Resources –
Report on Assured and Adequate
Water Supply Program Fees –
Pursuant to a FY 2008 General
Appropriation Act footnote, the
Department of Water Resources
(DWR) has submitted the amount of
fees collected by the Assured and
Adequate Water Supply (AAWS)
program.
Laws 2005, Chapter 217 established
the fund to provide for the costs
and expenses incurred by DWR
when determining and declaring
assured and adequate water
supplies. The AAWS Administration
Fund consists of monies that are
paid to the DWR for applications
related to assured and adequate
water supplies. Previously, fees
were deposited into the General
Fund.
DWR reports that for the quarter
ending March 31, 2008, the
department collected $188,900,
bringing year-to-date collections
for FY 2008 to $462,400. This
amount is $74,500, or 14% below
collections for the same period in
FY 2007. Actual collections have
been lower than expected, which

(Continued)

DWR notes is due to the declining
housing market. The department
previously estimated total FY 2008
revenues of $1.1 million.

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2008

9

State of Arizona
General Fund Revenue:

Change from Previous Year and Compromise Forecast
March 2008
Current Month

FY 2008 YTD (Nine Months)

Change From
Actual

March 2007

March 2008

Amount

Change from
Actual

Forecast

Percent

Amount

Percent

March 2007

March 2008

Amount

Forecast

Percent

Amount

Percent

Taxes
Sales and Use
Income - Individual
- Corporate
Property
Luxury
Insurance Premium
Estate
Other Taxes
Sub-Total Taxes

349,634,579

($3,453,594)

$3,326,958,548

($54,085,534)

(1.6) %

61,916,270

(44,920,768)

(42.0)

(23,411,745)

(27.4)

2,353,448,166

(168,267,633)

(6.7)

(34,116,623)

(1.4)

61,341,384

(17,319,345)

(22.0)

(9,553,516)

(13.5)

482,301,166

(145,660,720)

(23.2)

(7,384,810)

(1.5)

18.6

12,548,397

(2,277,065)

(15.4)

711,366

148,234

(1.0) %

26.3

($8,654,231)

111,366

(2.4) %

($27,074,732)

163,923

(0.8) %

1.3

3,178,461

(1,419,956)

(30.9)

(2,074,539)

(39.5)

44,572,772

(5,074,915)

(10.2)

(1,972,238)

(4.2)

81,182,866

(18,701,039)

(18.7)

(817,134)

(1.0)

240,323,544

(7,811,580)

(3.1)

1,891,381

0.8

--

268,122

--

0

(30.1)

432,380

(52,040)

$6,460,853,095

($382,135,799)

0

(52,430) (100.0)

35,194

(12,063)

$558,000,120

($85,730,961)

(25.5)
(13.3) %

0
(15,127)
($44,414,926)

(7.4) %

1,093,688

(10.7)
(5.6) %

(18,985)
($68,512,084)

0.0
(4.2)
(1.0) %

Other Revenue
Lottery

3,354,100

375,500

12.6

(448,800)

(11.8)

25,353,519

(2,627,481)

(9.4)

(1,030,400)

License, Fees and Permits

2,351,653

(693,168)

(22.8)

(1,316,747)

(35.9)

26,453,161

(3,866,524)

(12.8)

(565,185)

(2.1)

Interest

6,383,037

(3,157,116)

(33.1)

(499,463)

(7.3)

76,279,137

3,152,698

4.3

(2,563,739)

(3.3)

Sales and Services

3,190,621

(22.1)

(1,927,579)

(37.7)

36,979,970

290,386

0.8

(3,194,244)

(8.0)

Other Miscellaneous

8,060,818

389.7

5,681,718

238.8

27,780,887

3,525,543

14.5

4,866,293

21.2

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

0
378,906

(907,105)
6,414,710
0
(3,264,078)

--

0

(89.6)

278,906

23,719,135

(1,231,257)

(4.9) %

$581,719,255

($86,962,218)

(13.0) %

1,768,035
($42,646,891)

-278.9

0

0

35,710,087

24,026,863

8.1 %

228,556,761

(6.8) %

$6,689,409,856

24,501,485
($357,634,314)

-205.7

0
164,414

(3.9)

-0.5

12.0 %

(2,322,861)

(1.0) %

(5.1) %

($70,834,945)

(1.0) %

Other Adjustments
Urban Revenue Sharing
Budget Plan Transfers
Sub-Total Other Adjustments
TOTAL REVENUE

(57,044,911)

(11,109,023)

15,000,000

15,000,000

--

(1,123,821)

(42,044,911)

3,890,977

(8.5) %

(1,123,821)

2.7 %

(13.3) %

($43,770,712)

(7.5) %

$539,674,344

($83,071,241)

24.2

0

0.0

(513,404,196)

(99,981,200)

(7.0)

18,876,179

18,876,179

--

(1,123,821)

(494,528,017)

(81,105,021)

19.6 %

(1,123,821)

0.2 %

($438,739,335)

(6.6) %

($71,958,766)

(1.1) %

$6,194,881,839

24.2

0

0.0
(5.6)