JLBC - Monthly Fiscal Highlights

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

www.azleg.gov/jlbc.htm

“August
collections were
…$(90.4) million
below forecast”.

September 2008

Summary
August General Fund revenue collections
were $815.8 million, or 18.9% above August
2007. This amount included $215.5 million in
budgeted fund transfers. Exclusive of these
one-time transfers and Urban Revenue
Sharing (URS), August collections were (11.1)%
below the prior year, and $(90.4) million below
forecast.

would need to grow by 6.1% for the entire year
to meet the budget forecast. Given the
decline of (8.6)% in the first 2 months, revenues
will likely fall significantly short of forecast. A
Finance Advisory Committee meeting is
planned for October 15th which will assist in the
process of updating the FY 2009 revenue
projections.

For the first 2 months of FY 2009, General Fund
collections are down (8.6)% when compared
to last year (excluding URS and the one-time
transfers). (See Table 1 and page 9 for more
information).

Early FY 2009 revenues continue to show larger
declines than FY 2008. The shortfall through the
first 2 months of FY 2008 was $(87.8) million,
while the shortfall through the first 2 months of
FY 2009 is $(180.2) million.

While there were declines in all 3 major
revenue categories, individual income tax
represented the largest dollar decline:

Lottery and Highway User Revenue Fund (HURF)
Revenues – The economic slowdown is
affecting more than the General Fund. As
described below, Lottery and HURF revenues
have experienced losses as well. Lottery sales
have declined by (13)% year-to-date, while
HURF revenues fell (2.7)% in FY 2008.

• August individual income tax collections
were down (13.4)% compared to August
2007 and were $(41.2) million below
forecast.
• August sales tax collections were down
(5.9)% compared to August 2007 and were
$(38.4) million short of the monthly forecast.
August marked the 8th consecutive month
of year-over-year reductions in total sales
tax collections. The largest declines among
the major sub-categories continue to be
reported for contracting (15.7%) and retail
(8.9%).

JLBC/JCCR Meetings – There were no JLBC or
JCCR meetings in September.

• August corporate income tax collections
were down (34.2)% from August 2007, which
was $(7.9) million below forecast.
As we explained in detail last month, revenues

Table of Contents
August Revenues .................................................... 2
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
September 30, 2008.

Economic Indicators .............................................. 4
Summary of Recent Agency Reports
• Corp Commission – Division Filings................... 7

ADC – Inmate Utility Fees .................................. 7
ACJC – Meth Interdiction Efforts ...................... 7
DEQ – Particulate Enforcement ...................... 7
Council on Workforce Policy-Annual Report. 7
• DHS – Homeland Security Report..................... 8
• AZ Dept. of Homeland Security – Funding ... 8
•
•
•
•

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JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

August Revenues
Table 1

August General Fund Revenues
Compared to Enacted Forecast and FY 2008 Collections
($ in Millions)
FY 2009
Difference From
Difference
Collections
June ‘08 Forecast
From FY 2008
August
$815.8
$(90.4)
$129.7
Year-to-Date
$1,453.8
$(180.2)
$80.2

Sales Tax
collections were
“…down (5.9)%
compared to last
August, and were
$(38.4) million
below forecast”.

Sales Tax collections were $345.2 million in
August. These revenues were down (5.9)%
compared to last August, and were $(38.4)
million below forecast. Table 2 displays the
August growth rates for the largest categories.
Table 2

Sales Tax Growth Rates
Compared to Prior Year
Retail
Contracting
Utilities
Use
Restaurant & Bar

August
(8.9)%
(15.7)%
26.6%
4.8%
(3.7)%

Table 4

YTD
(9.7)%
(17.3)%
11.1%
3.0%
(5.6)%

As noted in previous months, retail and contracting together account for two-thirds of all
sales tax revenues. The retail sector decreased
by (8.9)% and contracting fell by (15.7)%.
For July (the latest available subcategory
data), taxable sales in the retail category are
down (10.3)% from the prior year. The largest
subcategory within retail is the General
Merchandise and Miscellaneous Retail
category, which is down (4.8)%. The largest
subcategory decline is in Motor Vehicles,
which represents over 21% of the total, and is
down almost (30)% compared to the prior
year. Taxable retail sales by category are

Table 3

shown in Table 3. (Eric Jorgensen)
Individual Income Tax collections were $231.7
million in August, or (13.4)% below last year.
August collections were $(41.2) million less than
forecast. Table 4 displays August and year-todate growth rates for individual categories.
Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

August
(10.4)%
(45.7)%

YTD
(4.8)%
(21.4)%

(13.7)%

2.9%

The double-digit decline in each of the 3
individual income tax categories – particularly
the withholding category – may be partially
attributable to the fact that there were 2 fewer
processing days in August this year than in the
same month last year. September has 2 more
processing days, and based on preliminary
numbers, it appears as though some of the
decline in withholding will be made up in
September. August is a small collection month
for payments and refunds. (Hans Olofsson)
Corporate Income Tax collections were $19.2
million, which is (34.2)% below last year’s

July Taxable Retail Sales by Subcategory

General/Misc. Merchandise
Motor Vehicles/Misc. Auto.
Bldg Hardware, Mfg Home
Food and Liquor Stores
Furniture, Home Furnishings
Clothing and Accessories
Manufacturing
Other Subcategories
Total

% of
Total Sales
30.0%
21.7%
7.6%
7.3%
6.9%
5.8%
5.6%
15.1%
100.0%

% Change
Over FY 2008
(4.8)%
(28.8)%
(0.6)%
2.3%
(21.0)%
(13.0)%
(12.6)%
1.1%
(10.3)%

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JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

August Revenues

“…FY 2008 HURF
collections
declined due to
economic
factors for the
first time since FY
1992”.

(Continued)

collections. This amount is $(7.9) million below
forecast for the month of August. July and
August are both relatively small collection
months for corporate income tax. September
is a large month due to quarterly estimated
payments. (Martin Lorenzo)

reviewed in the Monthly Fiscal Highlights.
However, FY 2008 HURF collections declined
due to economic factors for the first time
since FY 1992. (Note: HURF collections
decreased in FY 1998 due to a technical
correction.)

Lottery ticket sales were $34.3 million in
August, or (24.1)% below last year. For the first
2 months of the year ticket sales are $(10.5)
million, or (13.3)% below last year.

HURF revenues consist of gas and diesel fuel
taxes, vehicle license taxes and registration
fees, motor carrier fees, and various other
fees. The gas taxes are assessed per gallon of
fuel, and are not based on the cost of the
fuel. The vehicle license tax (along with the
registration fee) is an annual tax on cars and
light trucks, and the motor carrier fee is an
annual fee on commercial trucks.

The General Fund receives a portion of ticket
sales from the prior month. The August
deposit of $2.4 million, representing July sales,
is (32.4)% below the prior year, and $(1.4)
million below the forecast for the month.
The general slowdown in the economy and
higher fuel prices may be factors in the
decline in ticket sales. With less discretionary
income, Lottery ticket purchases tend to
decline.
Increasing Lottery revenues is a key
component of the recently enacted University
$1 billion debt financing proposal to pay for
building renewal projects and new facilities.
The proposal provides that annual debt
service payments will be paid from a fund
comprised of 80% Lottery revenues, and 20%
state university system revenues. The Lottery
contribution would come from increased
sales and would not reduce the funds going
to most of the current beneficiaries.
The proposal removes the prior caps on
lottery advertising, and appropriates funds to
allow Lottery staff to receive performance
incentives. In addition, Lottery proposes to
increase game payouts, and increase
utilization of “Lottery Express” machines.
The Lottery Commission estimated that these
changes would increase proceeds by over
$100 million in FY 2009, or approximately 22%.
As noted above, after 2 months, Lottery ticket
sales are (13.3)% below last year. The
Commission has said that they will not
significantly increase their television
advertising until time becomes more
available after the election.
Highway User Revenue Fund (HURF) is not a
General Fund revenue, and is not generally

HURF collections totaled $1.34 billion in FY
2008. This amount represented a (2.7)%
decline from FY 2007 and was (6.6)% below
the Arizona Department of Transportation
(ADOT) forecast.
ADOT believes that increasing fuel costs
reduced consumption, which was one of the
factors in the (1.0)% decline in Gas Tax
collections, (1.2)% decline in Diesel Fuel Tax,
and (11.2)% decline in Motor Carrier Fees from
FY 2007.
In addition, ADOT noted modest job growth
and fewer people moving to Arizona as
factors contributing to the (2.1)% decline in
Vehicle License Tax (VLT) revenue collections
in FY 2008, which totaled $385.2 million. This
decline can also be seen in the almost (30)%
reduction in sales tax from vehicle sales noted
in Table 3 above. Vehicle registrations subject
to VLT fell by approximately (140,000).
(Juan Beltran)

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JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

Economic Indicators
NATIONAL
The final estimate of the real Gross Domestic
Product (GDP) for the 2nd quarter of 2008
shows that the nation’s output of goods and
services grew more slowly than previously
expected. Instead of 3.3%, as previously
estimated, the federal Bureau of Economic
Analysis (BEA) now pegs the growth rate at
2.8%. The downward revision primarily reflects
lower personal consumption expenditures
and exports than previously estimated.

“…only one
state (Rhode
Island) in the
nation
recorded a
higher job loss
(in percentage
terms) than
Arizona in
August”.

In September, the Conference Board’s U.S.
Consumer Confidence Index totaled 59.8,
2.2% above the August revised reading of
58.5. The Board attributes the increase to an
improved short-term outlook, but cautions
that “…these results did not capture all of the
tumultuous events in the financial sector this
month…” Year-over-year however, the
measure is down (39.9)%.
The Conference Board’s U.S. Index of Leading
Economic Indicators fell by (0.5)% in August,
the third decline in the last 4 months. The
index has fallen (2.7)% since August 2007 and
reached a level not seen since October 2004.
Six of the 10 components that make up the
composite index decreased in August. The
lower reading in August was primarily due to a
combination of decreased delivery time by
suppliers, fewer building permits issued, and
increased initial claims for unemployment
insurance. (A decline in the delivery time to
manufacturers by their suppliers is typically
associated with reduced demand and thus
slower economic activity.)
The U.S. Consumer Price Index decreased by
(0.1%) in August compared to the prior
month. This was the first time since October
2006 that a month-over-month decline in the
index has been reported. The decline was
largely attributable to (3.1)% reduction in
energy prices. The year-over-year increase of
consumer prices was 5.4%. The last time the
nation experienced similar price increases
was during the end of the 1991 recession.
ARIZONA
The release of state economic indicators in
August suggests a further weakening of the
Arizona economy, especially as it relates to
the labor market. Department of Commerce

data shows that conditions in the state’s job
market have softened considerably over the
last 4 months. To provide some perspective,
year-over-year nonfarm job losses have
increased from (6,000) in April to (51,000) in
August.
Compared to a year ago, August’s job loss of
(51,000) represented a decline of (1.9)%.
According to the federal Bureau of Labor
Statistics (BLS), only one state (Rhode Island) in
the nation recorded a higher job loss (in
percentage terms) than Arizona in August.
The last time Arizona experienced a job loss of
(1.9)% or more was in September 1982 when
the nation was in the grip of a recession.
While 8 out of 11 sectors of the state’s
economy had fewer people on their payrolls
in August than a year ago, the job losses have
not been evenly distributed. While the
construction sector has slightly less than 8% of
the state’s jobs, it has accounted for almost
75% of the total net loss in jobs in Arizona. By
way of comparison, the manufacturing sector
has so far seen more modest job losses (down
by (2.4)% in August) especially when
compared to the last downturn in 2001-02.
While Arizona’s unemployment rate still
remains below the nation’s, this gap has
narrowed considerably over the last 4 months,
which suggests that conditions are weakening
at a faster rate here than in the nation as a
whole. The August state unemployment rate
of 5.6% was the highest reading in almost 5
years.
Further evidence of a weakening job market
can also be found in unemployment
insurance statistics. The average year-overyear increase in initial jobless claims for the first
7 months of the current calendar year was
68% above the comparable increase
reported for the same period last year.
The construction employment sector is unlikely
to improve soon. Between May and June,
the number of authorized building permits (3month moving average) statewide totaled
2,668, including 1,948 single-family residential
building permits and 720 multi-family building
permits. Compared to the prior month,
permitting activity in the single family and
multi-family segments have decreased (3.8)%
and (13.4)%, respectively. Year-over-year,

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JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

Economic Indicators
authorized permits in the single family
segment are down (48.7)%, while permits in
the more volatile multi-family segment are
down just(2.4)%.
The large inventory of foreclosed homes
continues to adversely affect the housing
market as evidenced by falling home prices.
Data from ASU’s Real Estate Center shows
that the median price for single-family homes
declined by more than 30% from the peak in
June 2006 to August 2008. There is still
uncertainty as to how much further prices
have to fall before the bottom of this market is
reached.
Based on the August report, the Greater
Phoenix single-family median resale home
price in August for traditional and foreclosed
properties was $178,000. At current levels, the
median resale price for single-family homes is
similar to levels seen in mid 2004, and (33.3)%
below the June 2006 peak of $267,000.
“In August the
sale of
foreclosed
homes increase
of 260.1% from a
year ago, and
accounted for
43.9% of all
transactions”.

The only good news in the housing market is
that the number of single-family homes sold
in August totaled 7,505 homes, or 64.4%
above sales a year ago. The increased
volume however, continues to be a result of
significant increases in the number of sales of
foreclosed homes. In August, the sale of
foreclosed homes increased 260.1% from a
year ago and accounted for 43.9% of all
transactions.
Arizona Personal Income grew by 4.6% in the
2nd quarter of 2008 compared to the same
quarter in the prior year. The comparable
growth rate for the nation as a whole was
5.2%. The Bureau of Economic Analysis (BEA)
reports that a significant portion of the
increase in personal income was directly
attributable to the recent federal tax rebate
program.
The Phoenix Sky Harbor International Airport
publishes passenger statistics monthly. In July,
a total of 3,486,964 passengers entered and
exited aircraft, 1.6% more than June totals
and (6.4)% fewer than the number of
passengers in July 2007.
Month-over-month, AHCCCS caseloads
increased by 1.2%, or 13,315 members, to
1,131,557. At current levels, the AHCCCS
caseloads are 5.8% above September 2007

(Continued)

levels. The FY 2009 budget funded a projected
caseload growth of 2.6%, or a total of 1,189,224
members.
There were a reported 78,955 TANF recipients
in the state in July, an increase of 3.5% from
June. Year-over-year, caseload is down
(0.2)%. The FY 2009 budget assumes the
TANF caseload will grow by 2.5% during the
fiscal year.
The Department of Corrections’ (ADC) inmate
population increased by an average of 102
inmates per month between June and Augustto an average population of 38,968 inmates.
Fiscal year-to-date, the ADC population has
increased by 114 inmates, well below the
budgeted increase of 180 inmates per month
in FY 2009. (Hans Olofsson, Martin Lorenzo)

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JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

Economic Indicators

(Continued)

Table 5

ECONOMIC INDICATORS
Indicator
Arizona
- Unemployment Rate
- Initial Unemployment Insurance Claims
- 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, Traditional Sales
Single-Family, Foreclosed Sales
Townhouse/Condominium, Traditional Sales
Townhouse/Condominium, Foreclosed Sales
- Greater Phoenix Median Home Sales Price
Single-Family, Traditional Sales
Single-Family, Foreclosed Sales
Townhouse/Condominium, Traditional Sales
Townhouse/Condominium, Foreclosed Sales
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)
- 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 (2004 = 100)
- U.S. Semiconductor Billings (3-month moving average)
- Consumer Price Index

Time Period

Current Value

Change From
Prior Period

Change From
Prior Year

August
August
August
August
August
June-Aug
June-Aug

5.6%
22,508
2.60 million
177,700
190,100
$68.1 million
$150.6 million

0.5%
(15.8)%
1.3%
(0.2)%
(1.1)%
(4.3)%
(2.7)%

1.9%
41.5%
(1.9)%
(2.3)%
(16.4)%
(16.1)%
(8.1)%

May-July
May-July

1,948
720

(3.8)%
(13.4)%

(48.7)%
(2.4)%

August
August
August
August

4,210
3,295
550
265

(10.3)%
(5.0)%
(6.8)%
(5.4)%

15.0%
260.1%
(41.8)%
253.3%

August
August
August
August
July
August
July
June

$193,550
$161,875
$157,000
$125,330
149.09
10.3 months
3.5 million
$9.34

1st Quarter 2008
3rd Quarter 2008
2nd Quarter 2008
July 1, 2007
September
July
June-Aug

73.4
38.5
$216.6 billion
6.34 million
1,131,557
78,955
38,968

2nd Quarter 2008

$11.7 trillion

2.8%

2.1%

September
August
May-Jul
Aug

59.8
100.8
$3.35 billion
218.9

2.2%
(0.5)%
(1.6)%
(0.1)%

(39.9)%
(2.7)%
(3.8)%
5.4%

(3.6)%
1.7%
(1.9)%
(0.4)%
(2.7)%
0.2 months
1.6%
(5.8)%
(8.0)%
4.3%
1.6%
173,066
1.2%
3.3%
102 inmates

(25.0)%
(26.4)%
(15.1)%
(11.5)%
(29.3)%
(3.8) months
(6.4)%
15.2%
(31.0)%
(23.8)%
4.6%
2.8%
5.8%
(0.2)%
1,706 inmates

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

Summary of Recent Agency Reports
Corporation Commission – Report on
Corporations Division Filings – Pursuant to a
footnote in the General Appropriation Act,
the Corporation Commission submitted an
annual report on the total number of filings
received and processed by the Corporations
Division and the amount of time, in business
days, to process each type of service.
For expedited filings, the amount of time
required to process corporate filings fell from
an average of 4.0 business days in FY 2007 to
3.5 business days in FY 2008. The commission’s
goal for processing expedited filings is 5
business days or less.
For regular filings, the amount of time required
to process corporate filings fell from an
average of 27.0 business days in FY 2007 to
21.8 business days in FY 2008. The
commission’s goal for processing regular
filings is 30 business days or less.
The commission also reported that in FY 2008
all of the 102,040 corporate filings received
were processed and of the 183,638 annual
report filings received, 183,442 were
processed. (Juan Beltran)
Department of Corrections – Report on Inmate
Utility Fees – Pursuant to A.R.S. § 31-239, the
Department of Corrections (ADC) shall
annually report on monies collected from
inmates who use electrical appliances. The
report shall also include information on the
expenditure of any monies collected. Statute
requires the department to charge a fee, not
to exceed $2.00 per month, to inmates
possessing at least one electrical appliance.
For FY 2008, the department assessed a
monthly utility fee of $1.00 and collected
$225,989.66. The department reports that the
monies collected were utilized to reduce
electrical expenditures at the institutions from
which fees were collected. Total inmate utility
collections represent approximately 1.8% of
ADC’s total electrical expenditures of
$12,278,715 in FY 2008. (Martin Lorenzo)
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
June 30, 2008, $3 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 $947,360 was spent on meth
education programs, drug task forces,
prosecution costs, and treatment programs.
The remaining unspent funds total $21,957
and are unencumbered as of the end of the
fourth quarter of FY 2008. (Jon McAvoy)
Department of Environmental Quality – Report
on Particulate Enforcement – Pursuant to
Laws 2007, Chapter 292, Section 23, Maricopa
County and cities within the county are
required to report on efforts to reduce
particulate pollution. The county and 19 of 23
cities have submitted reports to JLBC. Reports
were not received from Avondale, El Mirage,
Guadalupe and Peoria. The submissions show
that a total of 42 miles of streets and 190 miles
of alleys have been paved or stabilized in the
past year. The reports also list 216 inspectors,
including air compliance officers, law
enforcement personnel and park rangers,
who are responsible for enforcing particulate
pollution violations. These inspectors reported
a total of 932 violations. (Dan Hunting)
Governor’s Council on Workforce Policy –
Report on FY 2008 Annual Report – Pursuant to
A.R.S. § 41-1542, the Governor’s Council on
Workforce Policy (GCWP) submitted its annual
report on workforce development. The total
workforce spending from state, federal, and
local sources for FY 2008 was $357.1 million.
Of this total, DES accounted for $152.3 million,
ADE for $17.5 million, ADOC for $21.3 million,
and Community Colleges for $166.0 million.
Excluding the community colleges, the largest
programs in FY 2008 include the JOBS
program, which provides employment and
training services to TANF recipients ($24.4

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

Summary of Recent Agency Reports
million), Vocational Rehabilitation
($66.3 million), the Workforce
Investment Act program ($38.0
million), and the Department of
Commerce Job Training program
($20.5 million), which provides
incentives to companies to provide
training programs. (Eric Billings)
Department of Health Services –
Report on Homeland Security
Allocation and Expenditure Report –
Pursuant to A.R.S. § 41-4255, the
Department of Health Services
(DHS) has submitted its annual
Homeland Security report. DHS
receives 2 federal grants related to
bioterrorism and emergency
preparedness: the Coordinating
Office for Terrorism Preparedness
and Emergency Response
(COTPER) grant and the Hospital
Preparedness Program (HPP) grant.
The program years (PY) for these
grants run from September 1
through August 31.
Funding from the COTPER grant is
allocated to DHS, county
governments, and tribal regions for
preparedness planning,
surveillance, education, and
training. From PY 2004 to PY 2008,
Arizona was awarded $99.9 million,
of which $3.4 million was specifically
for pandemic influenza
preparedness. In PY 2008, the state
received $19.5 million of which $9.7
million went to DHS and $9.8 million
was distributed to tribes and

counties. Arizona will receive $14.2
million from this grant in PY 2009;
DHS has not yet determined how
monies will be distributed.
The HPP grant provides funding for
emergency preparedness at
hospitals, community health
centers, and DHS. From PY 2004 to
PY 2008, Arizona was awarded
$45.4 million. Monies are currently
awarded to 74 hospitals and 66
community health centers in
addition to DHS. In PY 2008, the
state received $9.6 million, of which
$1.4 million went to DHS and $8.2
million was distributed to hospitals
and community health centers.
Arizona will receive approximately
$8.0 million in PY 2009, but DHS has
not yet determined how monies will
be distributed. (Art Smith)
Arizona Department of Homeland
Security – Report on Homeland
Security Funding – Pursuant to
A.R.S. § 41-4255, the Arizona
Department of Homeland Security
has submitted an annual report
detailing grant allocations and
expenditures for Homeland Security
Grants from FFY 2004 through FFY
2007. (See Table 1 below)

(Continued)

leaving $37.9 million unexpended.
State agencies were awarded
$14.7 million, of which $355,800 has
been expended. Local
governments were awarded $27.0
million, of which $3.5 million has
been expended. The largest local
grantee was the City of Phoenix
($6.0 million). The largest state
grantee was the Arizona
Department of Emergency and
Military Affairs (DEMA) ($5.6 million).
The largest individual grant of $3.6
million went to DEMA to help
structure individual emergency
management programs,
strengthen emergency
management capabilities, and
develop systems that encourage
the building of partnerships with the
public and private sector.
FFY 2007 represented an increase
from the amount received in FFY
2006 and a decrease from the
amount received in FFY 2005. While
Arizona received $41.7 million in FFY
2007, the state received $43.3
million and $30.7 million in FFY 2005
and FFY 2006, respectively. Of the
funds received, 100% have been
expended for FFY 2005, and 49%
have been expended for FFY 2006.
(Eric Billings)

The state was allocated and the
Arizona Department of Homeland
Security awarded $41.7 million in
homeland security grants for FFY
2007. The department reported
total expenditures of $3.8 million,

Table 1

Awards and Expenditures by Homeland Security Grant Recipients
State Awards
Local Government Awards
Total Awards

FFY 2005
$13,447,600
29,857,200
$43,304,800

FFY 2006
$6,745,400
23,958,600
$30,704,000

FFY 2007
$ 14,683,200
27,015,400
$41,698,600

State Expenditures
Local Government Expenditures
Total Expenditures

$13,447,600
29,857,200
$43,304,800

$3,330,600
11,904,700
$15,235,300

$355,800
3,484,300
$3,840,100

Percentage of Total Awards Currently Expended

100%

49.62%

9.21%

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – SEPTEMBER 2008

State of Arizona
General Fund Revenue:

Change from Previous Year and Enacted Forecast
August 2008
Current Month

FY 2009 YTD (Two Months)

Change From
Actual

August 2007

August 2008

Amount

Change from
Actual

Forecast

Percent

Amount

Percent

August 2007

August 2008

Amount

Forecast

Percent

Amount

Percent

Taxes
Sales and Use

345,178,741

($21,448,814)

$701,432,459

($58,084,918)

Income - Individual

231,680,201

(35,758,017)

(13.4)

(41,153,899)

(15.1)

497,041,091

(36,810,663)

(6.9)

(60,478,809)

19,150,891

(9,949,771)

(34.2)

(7,883,009)

(29.2)

42,445,669

(20,458,202)

(32.5)

(18,196,931)

(30.0)

59,452

(25,132)

(29.7)

(772,548)

(92.9)

227,319

(129,055)

(36.2)

(890,181)

(79.7)

(3,012)

(0.0)

- Corporate
Property
Luxury

(5.9) %

($38,435,459)

(10.0) %

(7.6) %

($98,617,141)

(12.3) %
(10.8)

5,429,420

1,331,510

32.5

491,220

9.9

9,772,088

895,125

10.1

44,381,026

(1,507,864)

(3.3)

3,245,626

7.9

86,481,340

(276,698)

(0.3)

4,210,540

Estate

19,614

(11,606)

(37.2)

19,614

--

22,662

(231,414)

(91.1)

22,662

Other Taxes

36,299

(3,111)

(7.9)

(16,201)

(30.9)

93,142

(10,759)

(10.4)

(11,858)

$645,935,644

($67,372,805)

$1,337,515,770

($115,106,584)

Lottery

2,406,500

(1,150,919)

(32.4)

(1,415,800)

(37.0)

2,406,500

(1,150,919)

(32.4)

(1,415,800)

License, Fees and Permits

3,404,357

(71,689)

(2.1)

(897,743)

(20.9)

5,304,735

(122,055)

(2.2)

(1,355,365)

(20.4)

Interest

2,323,510

(4,620,402)

(66.5)

(2,527,390)

(52.1)

2,208,626

(5,366,533)

(70.8)

(2,642,274)

(54.5)

Sales and Services

3,051,754

(158,201)

(4.9)

(1,545,346)

(33.6)

4,977,661

(4.4)

(2,209,439)

(30.7)

Other Miscellaneous

2,394,591

844,493

54.5

41.5

4,780,372

2,405,872

101.3

Insurance Premium

Sub-Total Taxes

(9.4) %

($84,504,656)

(11.6) %

(7.9) %

($173,964,730)

5.1
-(11.3)
(11.5) %

Other Revenue

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

0

0

-(87.4)

701,791
0

1,413,613

(9,767,429)

(246,387)

14,994,325

(14,924,147)

(49.9) %

(5,930,875)

$660,929,969

($82,296,952)

(11.1) %

($90,435,531)

(230,425)
3,190,679

--

0

(14.8)

2,305,730

(9,349,623)

0

(28.3) %

21,983,624

(12.0) %

$1,359,499,394

200.7
--

0

(37.0)

--

(80.2)

(1,014,270)

(30.6)

(13,028,876)

(37.2) %

(6,231,276)

(22.1) %

($128,135,460)

(8.6) %

($180,196,006)

(11.7) %

Other Adjustments
Urban Revenue Sharing

(60,639,783)

0

0.0

(121,279,566)

0

0.0

Budget Plan Transfers

215,546,792

215,546,792

--

0

0.0

215,546,792

215,546,792

--

0

0.0

Sub-Total Other Adjustments

154,907,009

211,951,920

-- %

0

0.0 %

94,267,226

208,357,047

-- %

0

0.0 %

$815,836,978

$129,654,968

18.9 %

(10.0) %

$1,453,766,620

$80,221,587

5.8 %

TOTAL REVENUE

(3,594,872)

6.3

($90,435,531)

(7,189,745)

6.3

($180,196,006)

(11.0) %