JLBC - Monthly Fiscal Highlights

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

www.azleg.gov/jlbc.htm

“October
marked the 3rd
consecutive
month of yearover-year
growth in
General Fund
revenue
collections.”

November 2010

Summary
October marked the third consecutive month
of year-over-year growth in General Fund
revenue collections. General Fund revenues
totaled $565.1 million. Excluding the
temporary 1-cent sales tax, these collections
were 4.8% above last year.
October effectively marked the first time that
base sales tax revenues showed positive yearover-year growth since December 2007. This
growth was largely the result of increased
retail sales. Because consumer spending
accounts for almost 70% of Arizona’s
economy, sales will need to show even further
strength in order for economic conditions to
improve considerably.
While revenues are beginning to grow, they
lagged the forecast by $(12.5) in October.
For the 4 months year-to-date, revenues are
$(41.2) million below forecast.

Projected FY 2011 Shortfall
The JLBC Staff has previously estimated that
the FY 2011 General Fund revenue shortfall
could be up to $(825) million. This high-end
estimate assumed that the Early Childhood
and Land Conservation Fund transfers totaling
$469 million would not be approved in the
November General Election. With the actual
defeat of the 2 propositions, the $(825) million
estimate still applies.
Two other factors contribute to the General
Fund shortfall: revenue collections and
federal Medicaid matching funds both being
lower than expected. Recent data suggests
that these 2 shortfalls may not be as great as
originally projected, but more monthly data is
needed to confirm these trends. Please see
November 19th Revenue and Budget Update
for JLBC Staff's latest presentation on the
overall budget picture.

In comparison, October General Fund
spending was $547.4 million, or slightly below
the $565.1 million in revenue collections. The
spending level was $(552.4) million below last
year. The decrease was largely due to the
K-12 school district payment being deferred in
FY 2011, along with one-time spending in
FY 2010.
Fiscal year-to-date, General Fund revenues of
$2.7 billion have been offset by $4.0 billion in
spending. Due to positive cash flow in
October, the state's operating fund balance
improved slightly to $474.2 million at the end
of October. The state pays its bills out of the
operating fund balance, which consists of
General Fund monies and certain dedicated
funds.

Table of Contents
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
November 29, 2010.

Summary

Summary of Recent Agency Reports

• Projected FY 2011 Shortfall ................................1

• ADOA – Motor Vehicle Fleet............................. 7

October Revenues..................................................2

• ADE – K-12 Aggregate Expenditure Limit ....... 7

Economic Indicators ..............................................4

• DEQ – WQARF Report ........................................ 7
• Comm. on Indian Affairs – Town Hall Fund..... 7

October Spending.................................................. 7

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

October Revenues
Table 1

October
Year-to-Date

“October is
effectively the
first month since
December 2007
to show positive
year-over-year
[sales tax]

General Fund Revenues ($ in Millions)
FY 2011
Difference From
Difference
Collections
Budget Forecast
From FY 2010
$ 565.1
$ (12.5)
$ 109.6
$ 2,674.2
$ (41.2)
$ 415.6

Sales Tax collections were $348.5 million in
October. Excluding the $66.3 million from the
temporary 1-cent increase, collections were
$282.2 million, or 1.5% above October 2009.
October is effectively the first month since
December 2007 to show positive year-overyear growth. Sales tax revenues increased in
April and June 2010, but only due to one-time
technical adjustments.
While positive, collections lagged projections.
Including the 1-cent increase, collections were
$(14.2) million below the forecast. The year-todate loss is $(88.8) million.
Table 2 displays the October growth rates for
the largest categories
Table 2

Sales Tax Growth Rates
Compared to Prior Year

growth.”
Retail
Contracting
Utilities
Use
Restaurant & Bar

October
4.8%
(9.0)%
3.9%
(15.7)%
2.0%

YTD
(0.3)%
(19.3)%
0.2%
(3.2)%
2.1%

Retail and contracting together account for
about 60% of all sales tax revenues. Retail
collections increased 4.8% compared to
October of last year, the largest increase since
May 2007. While contracting had another
month of decline, a (9.0)% decrease
compared to October of last year, it was the
first month since December 2007 that the
decline has been in the single digits.
Individual Income Tax net revenues were
$203.8 million in October, or 19.5% above the
prior year. Collections were $10.7 million
above the forecast. Year-to-date, revenues
have grown 9.1% and are $31.8 million above
forecast through October.
As indicated in Table 3 below, withholding tax
payments increased by 7.3% in October,
making 7 of the past 8 months positive. This
increase continues to be difficult to interpret
due to changes in the state withholding

system. (See the August MFH for additional
information.)
Given the relatively flat growth in wages and
salaries, however, it is increasingly likely that
taxpayers are over-withholding and some of
those gains will result in higher refunds in April.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

October
7.3%
(3.6)%

YTD
4.3%
(0.3)%

(15.3)%

(20.1)%

Corporate Income Tax net collections were
$19.9 million in October, or 5.6% above the
prior year. Collections were $(3.8) million
below the forecast.
Year-to-date through October, revenues are
up 42.1% and are $26.9 million above forecast.
October is typically a low collection month for
the corporate income tax.
The Lottery Commission reports that October
ticket sales were $43.4 million, which is $2.7
million, or 6.6%, above sales in the prior year.
Year-to-date, ticket sales are $169.5 million,
which is $2.3 million above last year’s sales.
The General Fund share of sales has increased
significantly more than sales, however, due to
changes in the distribution formula.
Non-General Fund
Tobacco Tax revenues were $25.9 million in
October. Collections were down (8.3)%
compared to the prior year, and were $(0.1)
million below the budget estimate for the
month. Year-to-date collections are down
(1.8)% and are $0.6 million above the budget
estimate.
Less than 10% of tobacco taxes are deposited
directly into the General Fund. The remainder
primarily goes to AHCCCS and the Department

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

October Revenues

(Continued)

collections of $96.9 million in October were down $(0.8)
million or (0.8)% compared to October of last year.
Year-to-date, revenues have grown 1.3%.

of Health Services to defray the General Fund cost of
operating those Programs, along with funding the Early
Childhood Development and Health Board.
Highway User Revenue Fund (HURF) revenues consist of
gasoline and use fuel (diesel) tax, motor carrier fees
(commercial carriers), vehicle license tax and
registration fees, and various other fees. HURF

Table 4

General Fund Revenue:
Change from Previous Year and Enacted Budget Forecast
October 2010
Current Month

FY 2011 YTD (Four Months)

Change From
Actual

October 2009

October 2010

Amount

Change from
Actual

Forecast

Percent

Amount

Percent

October 2009

October 2010

Amount

Forecast

Percent

Amount

Percent

Taxes
Sales and Use w/o 1¢ *
Income - Individual
- Corporate

$282,177,988

$4,267,340

203,824,200

33,295,655

19.5

1.5 %

($7,295,692)
10,723,349

(2.5) %
5.6

$1,123,820,436
985,743,799

82,314,029

9.1

31,795,631

3.3

19,860,400

1,048,427

5.6

(3,837,000)

(16.2)

179,400,160

53,144,755

42.1

26,873,560

17.6

Property

2,642,220

1,081,948

69.3

1,442,220

120.2

2,139,858

Luxury - Tobacco

1,164,165

(1,016,259)

(46.6)

(1,447,835)

(55.4)

8,041,290

- Liquor
Insurance Premium
Estate
Other Taxes

315,341

(1.8) %

17.3

(1,134,873)

(12.4)

(39,381)

(0.5)

($58,491,313)

689,858
(654,540)

(7.4)

(122,514)

(5.2)

(241,109)

(9.8)

8,236,460

(950,975)

(32.9)

(1,363,804)

(41.3)

136,662,722

3,946,812

3.0

8,562,722

--

437,372

143,266

48.7

437,372

56,334

0
(40,260)

--

0

(41.7)

3,834

$37,563,362

7.9 %

($2,016,037)

Lottery

4,328,655

1,287,955

42.4

(871,345)

License, Fees and Permits

2,356,795

361,706

18.1

56,795

435,874

503,201

7.3
(0.4) %

219,566

(1,346)

(0.6)
5.1 %

47.6
(24.3)

2,228,891
0

(4.9) %

(2,586,710)

1,936,196

$513,890,394

Sub-Total Taxes

($20,151,147)

9,566

$2,444,701,663

$118,537,456

$6,636,146

(16.8)

12,956,264

3,709,364

40.1

2.5

9,347,246

519,000

5.9

847,246

--

1,677,001

567,852

51.2

1,677,001

6.7
-4.6
0.3 %

Other Revenue

Interest

--

435,874

(2,643,736)

(16.9)
10.0
--

Sales and Services

1,428,623

(785,966)

(35.5)

(871,377)

(37.9)

6,167,810

(3,677,507)

(37.4)

(3,332,191)

(35.1)

Other Miscellaneous

1,978,230

(5,140,263)

(72.2)

(121,770)

(5.8)

10,391,501

(6,587,727)

(38.8)

(8,508,499)

(45.0)

--

0

(2,212,898)

(92.2)

4,041,201

(56.1) %

(3,584,721)

(25.1) %

44,581,023

4.8 %

($5,600,758)

(1.1) %

$2,489,282,686

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

0
187,102
10,715,279
$524,605,673

0
(9,898,107)
(13,671,474)
$23,891,888

-(98.1)

0

0

--

0

(74.2)

(17,068,630)

(27.7) %

(17,518,977)

(28.2) %

4.2 %

($10,882,831)

(0.4) %

$101,468,826

(5,558,799)

--

(11,599,613)

(57.9)

Other Adjustments
Urban Revenue Sharing
1¢ TPT Increase*
Budget Plan Transfers
Sub-Total Other Adjustments
TOTAL GENERAL FUND REVENUE

(39,500,543)

12,886,509

--

(0)

66,278,389

66,278,389

--

(6,909,580)

91.4

0

0.0

(158,002,173)

51,546,036

--

(0)

(9.4)

261,254,573

261,254,573

--

(30,308,159)

1.7

0

0.0
(10.4)

13,687,094

6,534,611

0.0

81,667,800

1,326,357

40,464,940

85,699,509

-- %

(6,909,580)

(14.6) %

184,920,200

314,126,966

-- %

(30,308,159)

(14.1) %

0.0

$565,070,613

$109,591,397

24.1 %

($12,510,338)

(2.2) %

$2,674,202,886

$415,595,792

18.4 %

($41,190,991)

(1.5) %

Non-General Funds
Highway User Revenue Fund

$96,885,000

($760,000)

(0.8) %

($2,225,000)

(2.2) %

$394,298,000

$5,062,000

1.3 %

($777,000)

(0.2) %

Tobacco Tax (All Funds Total)

$25,883,310

($2,337,392)

(8.3) %

($58,534)

(0.2) %

$108,269,923

($1,991,914)

(1.8) %

$564,960

0.5 %

__________
* Sales and Use line excludes revenue from the temporary 1¢ increase approved by the voter in May 2010. That revenue is shown under One-Time Revenues. Total October collections including the 1¢ increase were
$348.5 million. This amount is $70.5 million, or 25.4%, above October 2009 and $(14.2) million, or (3.9)%, below forecast. Year to date, total collections including the 1¢ increase were $1,385.1 million. This amount is
$241.1 million, or 21.1%, above October 2009 and $(88.8) million, or (6.0)%, below forecast.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Economic Indicators
NATIONAL

“According to
the Arizona
Department of
Commerce, the
state had a net
gain of 27,400
nonfarm jobs in
October. This
was a 1.1%
increase over the
prior month and
the best
performance for
the month of
October since
2004."

According to the U.S. Department of
Commerce Bureau of Economic Analysis (BEA),
the second estimate of the U.S. Real Gross
Domestic Product (GDP) for the third quarter of
2010 was revised up from 2.0% to 2.5%. The
upward revision was primarily due to higher
personal consumption expenditures than
previously estimated.
The Conference Board’s U.S. Index of Leading
Economic Indicators rose 0.5% in October,
following another 0.5% gain in the previous
month. Increasing stock prices, expanding
money supply, and a favorable interest-rate
spread outweighed the negative contributions
from worsening vendor performance and
decreased manufacturers’ new orders for
nondefense capital goods. Apart from June
2010, the forward-looking index has advanced
in each of the last 19 months, suggesting that
the economic recovery has some momentum.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), increased by 0.2%
in October. According to the Bureau of Labor
Statistics, gasoline accounted for 90% of the
overall price increase in October. The core
CPI, which exclude food and energy prices,
was flat for the third consecutive month. Year
over year, the index was up by 0.6%, the lowest
such increase in more than 50 years. The
Federal Reserve Bank’s recent decision to
purchase $600 billion in government securities
through June 2011 was in part designed to
prevent deflationary price expectations from
forming.
The Semiconductor Industry Association (SIA)
reported that Semiconductor Billings (3-month
moving average) in the U.S. were $4.86 billion
in September, a 0.5% gain over the prior month
and a year-over-year increase of 39.5%.
According to SIA, the strong growth in
semiconductor sales in the third quarter of 2010
was due to healthy demand for consumer and
industrial electronic products. In a recent
forecast released by SIA, the trade association
indicated that semiconductor sales are
expected to grow more moderately in 2011
and 2012.

ARIZONA
Employment
According to the Arizona Department of
Commerce, the state had a net gain of 27,400
nonfarm jobs in October. This was a 1.1%
increase over the prior month and the best
performance for the month of October since
2004. October also marked the third
consecutive month with a year-over-year
growth in nonfarm employment. Over the last
12 months, the state has added 24,400 jobs (a
net gain of 1%). However, since the beginning
of the recession in December 2007, the state
has seen its workforce shrink by (10.4)%, or
(281,200) jobs. See Tracking Arizona’s
Recovery, for additional historical information.
The construction sector added 5,100 jobs in
October, the largest monthly gain since April
2005. October also marked the first year-overyear increase (1,700 jobs or 1.4%) in
construction employment since December
2006. With 121,100 construction workers on
payrolls in October, the state was nonetheless
more than 50% off peak employment in June
2006.
October also marked the first month since
December 2006 that the goods-producing
sector as a whole (which includes construction,
manufacturing, and mining) expanded when
compared to the same month in the prior year.
By way of comparison, the private serviceproviding sector began such a turnaround
already in April this year.
All but 3 of the 10 industry sectors that
comprise private sector employment
(information, financial activities and other
services) have yet to experience positive yearover-year job growth. Government
employment (federal, state, and local), which
typically lags private sector employment
growth, is down by (2.0)% over the last 12
months.
The state’s unemployment rate fell from 9.7% to
9.5% in October, the first decline since April this
year. Compared to October 2009, the jobless
rate is up by 0.2%. While the unemployment
rate has yet to reach the peak of the 1981-82
recession (11.6%), it has stayed above the 9%
mark for a longer period this time around.
During the severe recession of the early 1980s,
the state’s jobless rate was 9% or higher for 17
consecutive months. By way of comparison,

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Economic Indicators
as of October 2010, the unemployment rate
has already been at that level for 19 straight
months.

foreclosure
notices and
pending
foreclosures
continue their
decline from
recent highs,
they continue to
be a major
influence on
existing home
sales and the
respective
prices.”

Currently, monthly initial claims range from
25,000 to 30,000 compared to a range of
15,000 to 20,000 during the pre-recession
years of 2005 to 2007. Claims peaked in April
2009 when more than 41,000 individuals filed
for initial jobless benefits. See Tracking
Arizona’s Recovery, for additional historical
information.
The average weekly hours of production
workers in manufacturing industries is a leading
indicator since “factory hours” tend to lead
the business cycle as employers usually adjust
work hours before increasing or decreasing
the size of their workforce.
According to the Arizona Department of
Commerce, preliminary data indicates that
the average work week in October was 40.2
hours, a (0.2)% decrease over the prior month,
but a 3.9% improvement since October 2009.
As shown in the graph below, the average
work week for production workers has steadily
trended up since it reached its trough in
August 2009. While businesses remain
cautious to add new employees to their
payrolls, this trend is a positive sign that more
hiring will follow in the coming months.
Average Weekly Hours of Production Workers
42.0
41.5

Average Work Week

“While

The state’s unemployed filed a total of 26,397
initial claims for unemployment insurance in
October, a 12% increase over the prior month.
The increase, which was primarily attributable
to seasonal factors, was less than the 10-year
pre-recession average of 16.5%. Compared
to the same month in the prior year, first-time
claims in October were down by (15.6)%, the
12th consecutive month with year-over-year
declines.

41.0
40.5
40.0
39.5
39.0
38.5
38.0
37.5
Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

(Continued)

Housing
In October, the number of new Maricopa
County foreclosure notices declined (5.6)%
from September levels to 7,078. The level of
notices has fallen (33.8)% from its peak of
10,689 in March 2009.
The number of Maricopa County pending
foreclosures increased slightly in October.
Despite the increase, the October total of
41,579 is (19.2)% below the peak in December
2009 (51,466). See Tracking Arizona’s
Recovery, for additional historical information.
While foreclosure notices and pending
foreclosures continue their decline from
recent highs, they continue to be a major
influence on existing home sales and the
respective prices. In the Metropolitan Phoenix
area in October, there were a total of 8,075
existing single-family home sales that resulted
in a median resale home price of $138,600.
Relative to the prior year, the number of sales
and prices are down (18.9)% and (3.2)%
respectively. Of the existing sales, 41.9%, or
3,380 were foreclosures.
State Agency Data
In November, the AHCCCS caseload was 1.36
million members, a 1.0% increase over the prior
month. The AHCCCS population is 0.2% above
November 2009 levels. The FY 2011 budget
funded a projected November 2010 caseload
of 1.40 million members.
There were 44,353 TANF recipients in the state
in October, a monthly caseload increase of
5.6%. Year-over-year, the number of TANF
recipients has declined by (49.4)%. This
decline is the result of changes to the
statutory lifetime limit a person may receive
cash assistance. (See the September MFH for
additional information). The FY 2011 budget
assumed caseloads of approximately 70,000
in FY 2011.
The Supplemental Nutrition Assistance
Program (SNAP), formerly known as Food
Stamps, provides assistance to low-income
households to purchase food. In October,
there were a total of 1.1 million food stamp
recipients in the state, a 1.0% increase over
the prior month. Compared to the same
month last year, food stamp participation was
up by 8.5%. The number of food stamp
recipients began increasing steadily in July
2007, after several years in the 550,000 to
575,000 range.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Economic Indicators

(Continued)

The 3-month average count of the Department of
Correction’s (ADC) inmate population fell to 40,281
inmates between August and October 2010. Relative to

the prior month and a year ago, the population has
declined by (30) and (373) inmates, respectively.

Table 5

ECONOMIC INDICATORS
Indicator
Arizona
- Unemployment Rate
- Initial Unemployment Insurance Claims
- Unemployment Insurance Claimants
- Non-Farm Employment - Total
Manufacturing
Construction
- Average Weekly Hours, Manufacturing
- 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
- Foreclosure Activity, Maricopa County
Foreclosure Notices (Notice of Trustee’s Sales Recorded)
Pending Foreclosures (Active Notices)
Greater Phoenix S&P/Case-Shiller Home Price Index
(Jan. 2000 = 100)
- Arizona Months Supply of Housing, (ARMLS)
- Phoenix Sky Harbor Air Passengers
- Arizona Average Natural Gas Price
($ per thousand cubic feet)
- Arizona Consumer Confidence Index (1985 = 100)
- Arizona Coincident Index (July 1992 = 100)
- Arizona Personal Income
- Arizona Population
- AHCCCS Recipients
- TANF Recipients
- SNAP (Food Stamps) Recipients
- ADC Inmate Growth (3-month average)
- Probation Caseload (Adult/Juvenile)
Non-Maricopa
Maricopa County
United States
- Gross Domestic Product
(Chained 2005 dollars, SAAR)
- Consumer Confidence Index (1985 = 100)
- Leading Indicators Index (2004 = 100)
- U.S. Semiconductor Billings (3-month moving average)
- Consumer Price Index, SA (1982-84 = 100)

Change From
Prior Period

Change From
Prior Year

Time Period

Current Value

October
October
August
October
October
October
October
Aug-Oct
Aug-Oct

9.5%
26,397
86,789
2.43 million
147,700
121,100
40.2
$31.0 million
$126.3 million

(0.2)%
12.0%
0.2%
1.1%
0.1%
4.4%
(0.2)%
(1.6)%
(0.3)%

0.2%
(15.6)%
(26.0)%
1.0%
(0.9)%
1.4%
3.9%
(16.2)%
(0.1)%

Aug-Oct
Aug-Oct

792
164

(6.0)%
15.3%

(29.3)%
255.8%

October
October

8,075
1,215

(10.3)%
(10.7)%

(18.9)%
(12.6)%

October
October

$138,600
$85,000

1.2%
(1.9)%

(3.2)%
(15.0)%

October
October
August

7,078
41,579
108.84

(5.6)%
1.3%
(1.3)%

(9.7)%
(17.2)%
0.4%

October
September
August

6.9 months
2.91 million
$6.14

4th Quarter 2010
September
2nd Quarter 2010
July 1, 2009
October
October
October
Aug-Oct

56.3
199.12
$223.6 billion
6.60 million
1,357,243
44,353
1,096,046
40,281

14.7%
0.1%
1.3%
N/A
1.0%
5.6%
1.0%
(30) inmates

N/A
0.8%
1.7%
1.5%
0.2%
(49.4)%
8.5%
(373) inmates

September
September

19,628
26,674

(11)
(262)

(296)
(2,595)

3rd Quarter 2010
(Second Estimate)
October
October
Jul-Sep
October

$13.3 trillion

2.5%

3.2%

50.2
110.4
$4.86 billion
218.9

3.3%
0.5%
0.5%
0.2%

3.1%
6.3%
39.5%
1.2%

0.2 months
(6.4)%
(2.4)%

2.0 months
2.5%
(1.6)%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Summary of Recent Agency Reports
Arizona Department of
Administration – Motor Vehicle Fleet
– Pursuant to A.R.S. § 41-803R, the
Arizona Department of
Administration reported on the
FY 2010 year-end inventory of stateowned alternative fuel vehicles. Of
the 11,842 state vehicles, 4,625, or
39.1% are subject to the alternative
fuel vehicle requirements.
Of the 4,625 state vehicles subject
to the alternative fuel vehicle
requirements, 3,038, or 65.7% are
alternative fuel vehicles. This
percentage remained unchanged
from the prior year and exceeds the
40% target established by statute.
Statute also requires 90% of the
state vehicles in Maricopa County
to be capable of using alternative
fuels. The state reports that 83.4% of
its Maricopa County vehicles are
alternative fuel vehicles. This is an
increase of 1.8% from the prior year.
Notwithstanding the quantity of
vehicles capable of using
alternative fuel, only 4.1% of the fuel
budget was for alternative fuels.
(Juan Beltran)
Arizona Department of Education –
Report on K-12 Aggregate
Expenditure Limit – Pursuant to
A.R.S. 15-911B, the State Board of
Education reported on November 1,

2010 that currently budgeted
expenditures for all school districts
collectively statewide for FY 2011
are $(637,026,500) below the
Constitution’s aggregate
expenditure limitation (AEL). The
AEL limits growth in statewide K-12
expenditures to the combined rate
of growth for enrollment and
inflation, with certain exceptions.
(Steve Schimpp)
Department of Environmental
Quality – Report on Water Quality
Assurance Revolving Fund for
FY 2010 – Pursuant to a General
Appropriation Act footnote, the
Department of Environmental
Quality (DEQ) is required to report
annually by September 1 to the
Joint Legislative Budget Committee
(JLBC) on the progress of activities
in the Water Quality Assurance
Revolving Fund (WQARF) Program.
The WQARF Program is similar to the
federal Superfund program in that it
is designed to monitor, contain, and
remediate contaminated
groundwater at specified sites.
Based on the report, FY 2010
expenditures were $7,258,200.
Unexpended funds at the end of FY
2010 totaled $5,060,200.
The WQARF Program maintains a list
of contaminated sites, called the
Registry. According to the report,
as of December 31, 2006 there were

36 sites on the WQARF Registry. Sites
on the registry have not changed
since 2004. The report contained
no information regarding the
expected duration or total
remediation costs for these sites.
In response to lowered funding,
DEQ issued stop work directives to
WQARF contractors on January 30,
2009 for all site activities not related
to the operation and maintenance
of soil and groundwater treatment
systems. In FY 2011, program
expenditures for 22 sites that remain
active are projected to be
$5,500,000.
The program showed decreases in
groundwater treated, and volatile
organic compounds removed, due
to the increased difficulty of
removing the contamination from
the soil over time. (James
Alcantar)
Arizona Commission of Indian Affairs
– Report on Uses of Monies in the
Arizona Indian Town Hall Fund –
Pursuant to A.R.S. § 41-545, the
Arizona Commission of Indian Affairs
is providing the annual Indian Town
Hall Fund expenditure report for
FY 2010. New fund revenues
totaled $5,000. For FY 2010, the
commission had $4,930 in
disbursements. (Bob Hull)

October Spending
FY 2011 Spending
October 2010 spending of $547.4
million was $(552.4) million lower
than October 2009.

•

In October, the Arizona
Department of Education
spending was $(416.0) million
lower than the prior year.
October expenditures were
lower in part due to ADE not
making a monthly payment to

•

school districts in October
which was made in the prior
year. While most of the rolledover payments were at the end
of the year in FY 2010, they are
being spread more throughout
the year in FY 2011. In addition,
FY 2010 included one-time
spending related to the use of
district cash balances.
University spending was $64.1
million in October, or $(18.5)
million lower than the prior year.

•

The decreased expenditure
amount reflects a rollover of the
monthly payment, which is
spread out over the course of
the fiscal year.
Department of Health Services
(DHS) spending was $52.7
million in October, or $(67.9) less
than the prior year. The lower
expenditure amount reflects a
transfer to AHCCCS for DHS
Medicaid expenditures.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Table 6

Agency
Department of Administration
Department of Admin Sale/Leaseback D/S
Office of Administrative Hearings
Department of Agriculture
AHCCCS
Arizona Commission on the Arts
Attorney General
AZ Capital Post Conviction Public
Defender
State Board of Charter Schools
Board of Chiropractic Examiners
Department of Commerce
Community Colleges
Corporation Commission
Department of Corrections
AZ Criminal Justice Commission
AZ State Schools for the Deaf & Blind
Department of Economic Security
Department of Education
DEMA
Department. of Environmental Quality
DEQ – WQARF
Office of Equal Opportunity
State Board of Equalization
Board of Executive Clemency
Department of Financial Institutions
Department of Fire, Life, Bldg Safety
Office of the State Forrester
Board of Funeral Directors
Arizona Geological Survey
Government Information Tech.
Governor
Gov. - OSPB
Department of Health Services
Arizona Historical Society
Prescott Historical Society of AZ
Independent Redistricting Comm.
Commission on Indian Affairs
Department of Insurance
Judiciary
Supreme Court
Superior Court
Court of Appeals
Department of Juvenile Corrections
State Land Department
Law Enforcement Merit System

General Fund Spending
($ in Thousands)
Change from
October 10
October 09
933.0
(605.6)
137.7
(51.0)
492.0
(1,148.3)
91,297.7
(23,103.5)
71.4
(44.7)
4,541.5
3,035.4
52.8
32.7

Year-to-Date
10,343.1
52,066.9
418.0
4,212.7
521,944.5
277.7
8,099.7
219.4

YTD Change from
FY 10
2,764.7
52,066.9
(47.5)
(153.1)
4,672.9
7.9
(904.0)
(6.8)

140.4
68.3
33,106.6
40.0
83,294.1
3,467.6
71,918.1
93,449.2
749.6
31.1
71.6
47.4
153.2
381.0
480.5
132.1
56.9
1,039.0
288.1
52,707.3
456.5
96.2
2.6
353.4

27.0
(119.4)
(5.2)
(6,768.7)
(602.1)
(8,378.3)
(415,965.8)
(607.1)
(960.6)
(4.1)
(38.8)
(15.6)
(475.0)
(290.9)
480.5
27.0
46.9
(181.8)
203.2
(67,883.0)
134.0
25.1
(0.7)
(15.3)

359.5
2,411.7
66,213.2
219.6
300,626.8
9,046.3
423,665.0
1,694,641.5
4,008.6
0.6
7,000.0
89.9
211.7
428.2
1,283.2
1,215.5
1,201.6
230.7
206.1
3,396.5
839.7
175,926.3
3,863.1
216.8
14.2
2,676.2

17.2
(148.0)
1,876.7
29.1
17,577.4
4.6
(213.1)
14,696.2
101,980.2
698.5
(2,208.4)
6.7
(78.6)
(74.6)
(284.4)
20.1
1,201.6
(100.0)
(123.1)
18.8
484.3
339.4
(97,609.9)
1,637.1
(15.2)
(24.8)
2.7
(66.5)

(107.5)
17,504.1
1,528.3
3,574.2
356.1
5.1

(2,007.2)
(861.1)
85.5
(10,043.6)
(1,332.0)
(6.0)

12,319.5
34,919.7
6,725.4
24,538.2
1,124.4
30.0

3,092.1
(3,450.1)
1,688.1
(5,215.9)
(5,314.0)
(1.7)

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2010

Agency
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.
Legislative Council
Senate
Department of Liquor Licenses
Board of Medical Student Loans
Mine Inspector
Department of Mines & Mineral Resources
Nav. Streams & Adjudication
OSHA
Board of Osteopathic Examiners
Arizona State Parks Board
Board of Pharmacy
Pioneers’ Home
Board of Psychologist Examiners
Comm. for Postsecondary Ed.
Department of Public Safety
Arizona Department of Racing
Radiation Regulatory Agency
Arizona Rangers Pension
Real Estate Department
Department of Revenue
School Facilities Board
Secretary of State
Tax Appeals Board
Office of Tourism
Department of Transportation
State Treasurer
Universities
Board of Regents
Arizona State University
Northern Arizona University
University of Arizona
Veterinary Medical Examiners Board
Department of Veteran Services
Department of Water Resources
Department of Weights & Measures
Other
Grand Total

October 10

Change from
October 09

1,136.0
2,405.8
122.3
288.3
476.0
17.0
69.0
17.2
22.5
76.8
2,077.0
151.0
229.4
1.2
131.3
7,091.9
65.1
2,430.6
15.4
3.8
-

(67.7)
1,432.5
(65.4)
(421.3)
(68.6)
(122.1)
17.0
(34.9)
(148.1)
2.1
(4.0)
200.0
76.8
(223.7)
6,688.0
(273.1)
(155.7)
(854.6)
528.4
(28.3)
1,717.0
(16.9)
(18.3)
(638.4)

4,375.5
29,018.9
8,551.9
22,135.0
2,811.8
296.9
244.3
186.7
547,366.1

(1,210.5)
(7,832.8)
(2,629.4)
(6,815.7)
2,237.4
(2,515.5)
11.1
(3,772.2)
(552,424.6)

Year-to-Date

YTD Change from
FY 10

7,261.1
5,056.3
922.7
2,120.5
3,591.6
208.7
482.1
725.7
78.7
20,000.0
357.8
157.7
26,358.1
2,771.7
626.3
4.7
1,479.4
18,412.8
32,950.5
8,383.4
113.3
15.9
-

1,042.4
(33.5)
(51.8)
(274.6)
(15.7)
(659.9)
(174.4)
(79.5)
389.9
4.0
(4.0)
(100.0)
(1,900.3)
357.8
(300.0)
(648.4)
(11,956.4)
(362.1)
(172.4)
0.1
(191.8)
1,355.2
(49,068.4)
5,243.1
(2.5)
(200.0)
(16.8)
(1,399.8)

10,148.4
192,181.1
64,701.2
167,469.2
4,745.7
1,951.4
473.5
307.0
3,951,288.4

(274.7)
13,947.8
4,735.0
12,205.3
(250.0)
2,335.6
(4,824.0)
(69.0)
(18,528.1)
38,901.7