JLBC - Monthly Fiscal Highlights

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

www.azleg.gov/jlbc.htm

“January was
the sixth
consecutive
month of yearover-year
growth in base
General Fund
revenue
collections.”

February 2011

Summary
January was the sixth consecutive month of
year-over-year growth in base General Fund
revenue collections. General Fund revenues
totaled $809.9 million. Excluding the
temporary 1-cent sales tax, these collections
were 7.5% above last year.
January revenue growth was driven by gains
in sales tax collections along with increased
individual income tax collections. While the
increase in Individual income tax collections is
likely due to withholding changes, the growth
in sales tax collections during the holiday retail
season is clearly a significant development in
the state’s economic recovery. January is the
fourth consecutive month to show positive
year-over-year growth in sales tax collections,
however, the 6.2% increase is significantly
higher than in prior months.
Beginning with this February report, we are
comparing actual revenue collections to the
Baseline consensus forecast published last
month. The Baseline forecast is based on
estimates presented at the January Finance
Advisory Committee meeting.
General Fund collections were above the
forecast by $41.4 million in January.
January 2010 General Fund spending was
$773.7 million, or $(199.0) million below last
year. January expenditures were lower than
the prior year due to ADE funding reductions,
along with changes to the University payment
schedule from the prior year.

February Reports
The JLBC Staff released the following 2 reports
in February:
State Appropriations Limit – JLBC Staff is
required to annually report by February 15 on
how state spending compares to the
constitutional appropriations limit. The Arizona
Constitution limits the appropriation of certain
state revenues to no more than 7.41% of
Arizona personal income. Total FY 2011 state
appropriations (both General and Other
Funds) would be $12.76 billion, or 5.74% of
personal income. The FY 2012 JLBC Baseline
includes spending of $13.59 billion, which
continues to be 5.74% of personal income.
Truth in Taxation Report – Every February,
county assessors update their estimates of
assessed property value. Based on that
information, JLBC Staff is statutorily required to
publish the K-12 qualifying tax rate (QTR) for
the upcoming year under the truth in taxation
(TNT) provisions. Based on property data
received from the county assessors this month,
growth in new construction will be 1.5%, which
is (0.8)% less than assumed under the FY 2012
JLBC Baseline.
The impact of the lower-than-projected new
construction growth is that the Arizona
Department of Education’s formula costs will
increase by $14.3 million in FY 2012 relative to
the JLBC Baseline.

Fiscal year-to-date, General Fund revenues of
$4.9 billion have been offset by $5.9 billion in
spending, for a 6-month deficit of $(1.0) billion.

Table of Contents
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
February 25, 2011.

Summary

• ADOA/Treasurer – FY 2010 GF Balance .......... 7

• February Reports................................................ 1

• ACJC – State Aid Funds..................................... 7

January Revenues.................................................. 2

• DPS – GIITEM Quarterly Report ......................... 7
• DPS – Photo Enforcement ................................. 7

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

• Postsecondary Education – Grant Program .. 7

Summary of Recent Agency Reports

• DOR – Temporary Collectors ............................ 8

• ADOA – Working Capital Surplus ..................... 7

January Spending .................................................. 9

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

January Revenues
Table 1

January
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2011
Difference From
Difference
Collections
Budget Forecast
From FY 2010
$ 809.9
$ 41.4
$ (631.3)
$ 4,917.5
$ 41.4
$ 119.1

Sales Tax collections were $421.5 million in
January. Excluding the $82.6 million from the
temporary 1-cent increase, collections were
$339.0 million, or 6.2% above January 2010.
“[Base sales tax]
collections were
$339.0 million, or
6.2% above
January 2010.”

Table 2 displays the January growth rates for
the largest categories.
Table 2

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Utilities
Use
Restaurant & Bar

January
4.2%
4.2%
1.1%
5.4%
10.6%

YTD
1.3%
(12.1)%
1.2%
(0.4)%
3.4%

Retail and contracting together account for
about 60% of all sales tax revenues. Retail
collections were relatively strong compared to
January of last year. Contracting was also
strong compared to January of last year;
however, losses earlier in the year continue to
weigh down the year-to-date growth.
Including the 1-cent increase, collections were
$9.2 million above the January JLBC Baseline
forecast.
Individual Income Tax net revenues were
$362.5 million in January, or 11.0% above the
prior year. Collections were $14.9 million
above the new forecast. Year-to-date,
revenues have grown 10.0% and are $14.9
million above forecast through January.
As indicated in Table 3 below, withholding tax
payments increased by 13.1% in January,
making 10 of the past 11 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.

As a result, the Department of Revenue has
further revised the withholding schedule by
adding additional lower withholding options.
These options became available on January 1,
2011.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

January
13.1%
(0.8)%

YTD
6.7%
(0.1)%

(6.4)%

(22.1)%

Corporate Income Tax net collections were
$25.3 million in January, or $(10.7) million less
than the prior year. Collections were $19.1
million above the new forecast. Year-to-date
through January, revenues are up 80.1% and
are $19.1 million above forecast.
The Lottery Commission reports that January
ticket sales were $54.4 million, which is $0.8
million, or 1.5%, above sales in the prior year.
Year-to-date, ticket sales are $323.6 million,
which is 6.5% above last year’s sales. The
General Fund share of sales has increased
significantly more than overall sales, however,
due to changes in the distribution formula.
Non-General Fund
Tobacco Tax revenues were $29.6 million in
January. Collections were up 7.7% compared
to the prior year, and were $(2.0) million
below the budget estimate for the month.
Year-to-date collections are down (0.6)% and
are $(3.0) million below 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
of Health Services to defray the General Fund
cost of operating those programs, along with
funding the Early Childhood Development
and Health Board.

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

January Revenues

(Continued)

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 collections of $102.7
million in January were down $(2.3) million or
(2.2)% compared to January of last year.
Year-to-date, revenues have grown 1.6%.
Table 4

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

FY 2011 YTD (Seven Months)

Change From
January 2010

Actual
January 2011

Percent

Amount

Change from
Forecast
Percent

Amount

January 2010

Actual
January 2011

Amount

Forecast
Percent

Percent

Amount

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

$338,961,556

$19,648,117

$5,598,326

1.7 %

$2,023,724,448

$11,781,880

362,495,854

35,896,737

11.0

6.2 %

14,851,646

4.3

1,956,935,699

177,530,654

10.0

0.6 %

$5,598,327
14,851,647

0.3 %
0.8

25,284,392

(10,731,950)

(29.8)

19,131,174

310.9

266,243,308

118,394,807

80.1

19,131,172

7.7

792,409

190,856

31.7

142,409

21.9

11,776,476

(296,303)

(2.5)

142,409

1.2

2,734,538

607,253

28.5

(18,221)

(0.7)

14,614,084

(522,483)

(3.5)

(18,221)

(0.1)

4,249,428

2,018,074

90.4

1,312,479

17,575,849

1,426,534

8.8

1,312,474

8.1

110,737

58,860

113.5

110,737

--

177,442,592

3,684,423

2.1

110,736

0.1

(51,444)

(100.0)

0

--

437,372

52,544

13.7

0

67,255

7,349

12.3

(45.1)

832,227

315,411

61.0

$734,696,169

$47,643,852

$4,469,582,056

$312,367,467

Lottery

6,553,640

3,006,540

84.8

1,553,640

31.1

23,385,269

4,300,569

22.5

1,553,639

7.1

License, Fees and Permits

3,075,661

877,283

39.9

1,275,661

70.9

16,334,804

823,098

5.3

1,275,660

8.5

279,251

342,587

Luxury - Tobacco
- Liquor
Insurance Premium
Estate
Other Taxes
Sub-Total Taxes

0

6.9 %

(55,245)
$41,073,305

44.7

5.9 %

7.5 %

(55,246)
$41,073,299

0.0
(6.2)
0.9 %

Other Revenue

Interest

--

(11,188)

(3.9)

2,538,812

1,427,610

128.5

(11,189)

(0.4)

Sales and Services

1,329,968

(10,896)

(0.8)

(2,670,032)

(66.8)

11,349,635

(1,684,119)

(12.9)

(2,670,033)

(19.0)

Other Miscellaneous

2,253,506

724,974

47.4

(246,494)

(9.9)

12,095,669

(10,107,529)

(45.5)

(246,494)

(2.0)

0

0

--

27,146,306

27,146,306

(3,166,992)

(90.5)

14,313,081

(19,159,355)

(3,265,405)

(19.1) %

107,163,576

2,746,581

2.6 %

5.3 %

$4,576,745,632

$315,114,048

7.4 %

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

333,008

(547,790)

-(62.2)

13,825,034

4,392,698

46.6 %

$748,521,203

$52,036,550

7.5 %

0

$37,807,900

-(57.2)

0
(3,166,992)
(3,265,407)
$37,807,892

0.0
(18.1)
(3.0) %
0.8 %

Other Adjustments
(39,500,543)

12,886,509

--

0

0.0

(276,503,802)

90,205,563

--

0

0.0

1¢ TPT Increase*

Urban Revenue Sharing

82,561,609

82,561,609

--

3,554,523

4.5

477,447,269

477,447,269

--

3,554,522

0.8

Budget Plan Transfers

18,295,980

(43,338,632)

(70.3)

0

0.0

139,823,539

(28,274,843)

(16.8)

0

0.0

Leaseback Proceeds

0

(735,419,300)

(100.0)

0

0

(735,419,300)

(100.0)

0

61,357,046

(683,309,814)

(91.8) %

3,554,523

6.1 %

340,767,006

(196,041,311)

$809,878,249

($631,273,264)

(43.8) %

$41,362,423

5.4 %

$4,917,512,638

Highway User Revenue Fund

$102,690,000

($2,343,000)

(2.2) %

($3,918,611)

(3.7) %

Tobacco Tax (All Funds Total)

$29,564,394

$2,115,758

7.7 %

($1,974,565)

(6.3) %

Sub-Total Other Adjustments
TOTAL GENERAL FUND REVENUE

--

--

(36.5) %

3,554,522

1.1 %

$119,072,737

2.5 %

$41,362,414

0.8 %

$694,922,000

$10,666,000

1.6 %

$402,540

0.1 %

$192,316,869

($1,136,436)

(0.6) %

Non-General Funds

($2,985,421)

(1.5) %

__________
* 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 January collections including the 1¢ increase were
$421.5 million. This amount is $102.2 million, or 32.0%, above January 2009 and $9.2 million, or 2.2%, above forecast. Year to date, total collections including the 1¢ increase were $2.50 billion. This amount is $489.2
million, or 24.3%, above January 2009 and $9.2 million, or 0.4%, above forecast.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Economic Indicators
NATIONAL

“AHCCCS
caseloads are
currently (1.3)%
below February
2010 levels. Total
enrollment
reached its peak
in June 2010, and
has declined
slowly since
then.”

The Conference Board’s U.S. Consumer
Confidence Index increased by 7.6 points in
January to 60.6, the highest reading since May
2010. January’s rise in consumer confidence
resulted from both an improved economic
outlook over the next 6 months as well as a
more positive assessment of current conditions.
The report indicated that the share of
respondents that plan to purchase an
automobile within the next 6 months increased
to 5.1%, the highest reading since November
2010.
The Conference Board’s U.S. Index of Leading
Economic Indicators rose 0.1% in January,
following a 0.8% increase in December,
signaling that the economic expansion may
extend into this year. Slower delivery times, an
increase in stock prices, and a favorable
interest-rate spread outweighed negative
contributions from higher first-time jobless
claims and lower building permitting activity.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), increased by 0.4%
in January, following a 0.4% increase in
December. Excluding food and energy, core
consumer prices rose by 0.2%. Compared to
January 2010, overall consumer prices were up
by 1.7% and the core CPI was up by 0.9%.
Outside of food and energy prices, the inflation
rate remains relatively muted.
ARIZONA
Employment
Due to the Arizona Department of
Commerce’s annual revision of employment
data (also known as “benchmarking”),
January’s employment and unemployment
figures will not be released until the first week
of March. For this reason, this month’s issue of
Monthly Fiscal Highlights does not include any
employment statistics.
The state’s unemployed filed a total of 29,123
initial claims for unemployment insurance in
January, a 25.5% increase over the prior
month. Initial claims typically rise in January
due to the layoff of seasonal retail workers.
Compared to the same month in the prior
year, first-time claims in January were down
by (7.7)%, the 15th consecutive month with
year-over-year declines.

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.
January’s Arizona Consumer Confidence Index
of 62.8 was the highest reading since May 2008
when the index was 73.4. Most of January’s
advance of 5.6 points was driven by improved
expectations over the next 6 months as
opposed to assessments of current conditions.
The fact that consumer confidence has
improved in each of the last 3 quarters
suggests that Arizonans are becoming
increasingly more optimistic about their nearterm employment and income prospects. This
bodes well for the future, as improved
consumer sentiments typically result in
additional spending on durable goods, such as
electronic appliances and autos.
Housing
In January, the number of new Maricopa
County foreclosure notices increased 17.6%
from December levels to 6,783.
The number of Maricopa County pending
foreclosures decreased in January. The
January total of 39,958 is (22.4)% 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 January, there were a total of 8,325
existing single-family home sales that resulted
in a median resale home price of $131,660.
Relative to the prior year, the number of sales
is up 7.8%, while prices are (7.9)% lower. Of
the existing sales, 43.5%, or 3,620 were
foreclosures.
State Agency Data
In February, AHCCCS caseloads equaled 1.34
million members, a 0.1% increase over the prior
month. AHCCCS caseloads are currently
(1.3)% below February 2010 levels. Total
enrollment reached its peak in June 2010, and
has declined slowly since then. The FY 2011
budget funded a projected February 2011
caseload growth of 4.5% above February 2010
levels, for a total of 1.42 million members.

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Economic Indicators

“In January, there
were a total of
1.1 million food
stamp recipients
in the
state…compared
to the same
month last year,
food stamp
participation was
up by 3.3%.”

There were 43,800 TANF recipients in the state
in January, a monthly caseload decrease of
(2.7)%. Year-over-year, the number of TANF
recipients has declined by (47.7)%. This
decline is the result of changes to the
statutory lifetime limit a person may receive
cash assistance. Beginning in July, recipients
can only receive benefits for a maximum of
36 months in a lifetime. Previously, the
maximum had been 60 months. This change
resulted in a caseload decline of
approximately (16,000) recipients. 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 January,
there were a total of 1.1 million food stamp
recipients in the state, a 1.1% increase over
the prior month. Compared to the same
month last year, food stamp participation was
up by 3.3%. The number of food stamp
recipients began increasing steadily in July
2007, after several years in the 550,000 to
575,000 range.
The 3-month average count of the Department
of Correction’s (ADC) inmate population
declined to 40,146 inmates between October
and December 2010. Relative to the prior
period the population has decreased by (110),
and compared to a year ago the population
has declined by (433) inmates.

(Continued)

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Economic Indicators

(Continued)

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)
*Adjusted for 1¢ sales tax

Change From
Prior Period

Change From
Prior Year

Time Period

Current Value

December
January
December
December
December
December
December
Nov-Jan
Nov-Jan

9.4%
29,123
65,644
2.45 million
149,900
113,700
40.8
$33.9 million
$150.3 million

0.0%
25.5%
(7.3)%
0.1%
0.9%
(3.6)%
0.5%
3.3%
13.5%

Sep-Nov
Sep-Nov

689
199

(13.0)%
21.8%

(33.4)%
245.7%

January
January

8,325
1,320

2.1%
(0.4)%

7.8%
14.8%

January
January

$131,660
$85,000

1.4%
1.3%

(7.9)%
(14.6)%

January
January
December

6,783
39,958
103.10

17.6%
(3.7)%
(1.7)%

0.3%
(19.5)%
(8.3)%

January
December
November

6.6 months
3.33 million
$6.01

1st Quarter 2011
December
3RD Quarter 2010
April 1, 2010
February
January
January
Oct-Dec

62.8
180.33
$225.4 billion
6.39 million
1,344,227
43,800
1,063,898
40,146

11.5%
0.2%
0.7%
N/A
0.1%
(2.7)%
1.1%
(110) inmates

25.1%
1.4%
3.4%
N/A
(1.3)%
(47.7)%
3.3%
(433) inmates

December
December

19,595
26,093

0
(148)

(290)
(3,181)

4th Quarter 2010
(Second Estimate)
January
January
Aug-Oct
January

$13.4 trillion

3.2%

2.8%

60.6
112.3
$4.81 billion
221.1

13.7%
0.1%
0.0%
0.4%

7.3%
4.4%
30.7%
1.7%

1.5 months
4.2%
9.1%

0.2%
(7.7)%
(33.0)%
1.5%
(0.3)%
(0.6)%
5.2%
(1.3)%*
3.2%*

(0.6) months
2.8%
(19.2)%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Summary of Recent Agency Reports
Arizona Department of
Administration – Report on Working
Capital Surplus – Pursuant to A.R.S. §
41-707, the Arizona Department of
Administration (ADOA) reported on
the FY 2010 working capital surplus
requirements for tax-exempt deficit
financing entered into by the state
after January 1, 2009. Since this
date, the state has entered into 3
deficit financing agreements: 2
transactions involving the
sale/leaseback of state properties
totaling $1.0 billion and lottery
revenue bonds totaling $450 million.
Federal tax law requires states using
tax-exempt financing to begin
paying down these long-term
obligations when the state’s
working capital exceeds a certain
level. Working capital is defined as
the fiscal year ending balance in
the following funds: the state
General Fund, the Budget
Stabilization Fund, and any
Department of Revenue clearing
accounts. Repayment is required
when working capital exceeds the
lesser of the 2 following amounts: 1)
the average working capital
balance for the 36 months prior to
the tax-exempt financing issuance;
2) 5% of General Fund expenditures
for the given fiscal year.
For each of the 3 tax-exempt
financing agreements entered into
since January 1, 2009, ADOA found
that no working capital surplus
existed for FY 2010. This means the
state will not currently be required
to begin paying down the
outstanding balance on these
agreements. (Jack Brown)
ADOA/Treasurer – Report on
Reconciliation of General Fund
Balance for FY 2010 – Pursuant to
A.R.S. § 41-172A and A.R.S. § 35131F the Office of the State
Treasurer and the Arizona
Department of Administration
(ADOA) are required to submit
reports reconciling any difference
between agencies in the year-end
General Fund balance. ADOA and

the Treasurer currently report FY
2010 year-end General Fund
balances (including dedicated
subaccounts and excluding claims
payable) of $34.8 million and $34.5
million, respectively. After final
accounting, the unreserved
General Fund balance was $(5.7)
million. The difference leaves an
unreconciled General Fund
balance of $242,000. ADOA and
the Treasurer report that they will
continue to try to isolate the source
of the difference. (Eric Billings)
Arizona Criminal Justice
Commission – Report on State Aid
to County Attorneys Fund and the
State Aid to Indigent Defense Fund
– Pursuant to A.R.S. § 41-2409E, the
Arizona Criminal Justice Commission
(ACJC) is required to report on the
expenditures of monies for the prior
fiscal year in the State Aid to
County Attorneys Fund and State
Aid to Indigent Defense Fund by
January 8 of each year.
In FY 2010, the State Aid to County
Attorneys Fund received revenues
totaling $973,600. The State Aid to
Indigent Defense Fund received
revenues totaling $551,800.
ACJC reports that counties used the
monies in 3 main areas: additional
staffing, technological purchases,
and specialized courts. Additional
staffing helps with providing services
such as case management and
archiving. Technological purchases
enhance productivity and case
tracking. Specialized courts assist
both driving under the influence
(DUI) and Drug Courts with random
drug testing. ACJC also states that
case processing times have not met
the Supreme Court guidelines.
(James Alcantar)
Department of Public Safety –
Quarterly Report on GIITEM –
Pursuant to the General
Appropriation Act, the Department
of Public Safety (DPS) is required to
report quarterly on the Gang and
Immigration Intelligence Team

Enforcement Mission (GIITEM). In
the second quarter of FY 2011, DPS
spent or encumbered $4.2 million of
the $9.2 million appropriation for the
direct DPS immigration staff. In
terms of local law enforcement
grants, DPS spent $2.3 million of the
non-lapsing FY 2010 $2.6 million
appropriation. The $2.6 million in
new FY 2011 local law enforcement
grants will be available for use
through FY 2012. (Eric Billings)
Department of Public Safety –
Quarterly Report on Photo
Enforcement – Pursuant to a
footnote in the General
Appropriation Act, the Department
of Public Safety (DPS) is required to
report quarterly on the Photo
Enforcement program in FY 2011.
Since the inception of the program
in September 2008, a total of
1,695,625 Notices of Violation
(NOVs) and citations have been
issued and 452,147, or 26.7%, have
been paid.
DPS ended the photo radar
program effective July 15. During
the second quarter of FY 2011, 3,359
citations that were issued prior to
July 15 were paid.
The NOVs and citations issued by
the Photo Enforcement Program
generated $2.9 million in revenue
for the second quarter of FY 2011
and $77.3 million since the
program’s inception. The General
Fund received $4.2 million in the
second quarter, which includes
balances from revenue in prior
quarters, and $44.1 million since the
program’s start. (Eric Billings)
Commission for Postsecondary
Education – Report on
Postsecondary Education Grant
Program – A.R.S. § 15-1855 requires
the Commission for Postsecondary
Education to report annually on its
Postsecondary Education Grant
(PEG) program.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Summary of Recent Agency Reports
The PEG program provides grants to
students attending private
postsecondary institutions. The
program was launched in March
2007. In FY 2010, a total of $2.2
million was disbursed to 1,400
grantees representing 20 private
postsecondary schools. The PEG
application process was temporarily
suspended by the Executive for
several months in FY 2010.
According to the commission, there
was a waiting list of 2,627 unfunded
PEG students at the end of FY 2010
due to budget reductions. (Marge
Zylla)
Department of Revenue – Report on
Temporary Collectors – A FY 2011
General Appropriation Act footnote
requires the Department of
Revenue (DOR) to report on the
results of temporary collectors.
Beginning in FY 2010, DOR was
appropriated $3 million from the
General Fund for temporary
collectors to assist in the collection
of already established debt.
DOR reports that through November
2010, 70 temporary collectors have
been hired and trained at a cost of
$1.1 million. Through November,
DOR estimated that these
temporary collectors have
generated approximately $29.8
million in total funds, which resulted
in $20.0 million in additional revenue
to the General Fund. It was
originally estimated that they would
generate a total of $38.7 million in
additional General Fund revenue in
FY 2011. (Eric Billings)

(Continued)

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

January Spending
“January 2011
spending of

January 2011 spending of $773.7 million was
$(199.0) million lower than January 2010 (See
Table 6).

•

$773.7 million
was $(199.0)
million lower
than January

•

2010.”

•

•

In January, the Arizona Department of
Education spending was $(63.4) million
lower than the prior year. January
expenditures were lower due to ADE
funding reductions and paying a lower
percentage of yearly funding compared
to the prior year.
University spending was $59.0 million in
January, or $(93.7) million lower than the
prior year. The decreased expenditure
amount reflects a change in the monthly
payment schedule. This year the rollover
has been spread out over the course of
the fiscal year.
School Facilities Board spending was
$(19.3) million lower than January of the

prior year. This reflects a change in the
timing of debt service payments.
In January, Department of Economic
Security (DES) spending was $22.4 million,
or $(54.4) million lower than the prior year.
The lower expenditure amount reflects
operating transfers among agency funds
and does not reflect actual expenditures.

Table 6
General Fund Spending ($ in Millions)

Jan 11
Agency
AHCCCS
Corrections
Economic
Security
Education
Health Services
Public Safety
School Facilities
Board
Universities
Leaseback Debt
Service
Other
Total

Change
from
Jan 10

Year to
Date

YTD Change
from FY 10

125.5
87.5
22.4

25.9
(0.6)
(54.4)

890.3
535.0
456.0

45.6
26.8
(68.5)

304.4
103.9
2.1
0.1

(63.4)
12.5
5.6
(19.3)

2,521.5
340.5
31.9
33.4

(195.8)
(52.9)
(6.6)
(68.3)

59.0
-

(93.7)
-

606.1
52.1

(28.8)
52.1

68.8
773.7

(11.6)
(199.0)

402.5
5,869.3

(43.7)
(340.1)

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Table 7

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
Board of Cosmetology
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

General Fund Spending
($ in Thousands)
Change from
January 11
January 10
732.3
(600.1)
160.8
27.4
181.2
(323.0)
125,255.2
25,937.6
39.0
(55.6)
1,097.8
(113.9)
93.9
44.3

Year-to-Date
13,456.3
52,066.9
620.5
5,480.1
890,261.5
414.4
11,680.8
424.1

YTD Change from
FY 10
1,662.9
52,066.9
(38.1)
(556.6)
45,628.8
(37.3)
(869.3)
8.8

41.1
111.9
33,106.6
32.6
87,500.7
2,102.2
22,411.7
304,365.8
1,862.3
23.8
81.9
48.4
161.7
(8.0)
352.0
93.8
37.4
298.8
246.2
103,928.2
190.5
37.3
3.5
364.6

(1.3)
(481.4)
10.0
(671.7)
(1,999.9)
(54,435.7)
(63,431.3)
509.8
(371.5)
(7.0)
40.8
(6.6)
(20.5)
(129.8)
352.0
20.7
9.1
(141.0)
57.0
12,472.0
(179.3)
(123.3)
(0.6)
(4.1)
(0.4)

486.7
2,706.3
99,319.7
336.0
534,996.2
14,690.3
456,010.2
2,521,495.5
7,312.1
0.6
7,000.0
120.4
432.6
576.3
1,794.9
1,402.2
1,761.4
403.1
308.0
4,529.1
1,198.7
340,492.8
4,421.9
376.2
31.3
3,759.6

11.7
(148.0)
355.3
4.6
26,847.4
(252.0)
4.6
787.3
(68,453.7)
(195,821.2)
1,612.6
(3,454.7)
(20.1)
2.7
(99.7)
(424.4)
(260.6)
1,761.4
(100.0)
(118.6)
17.8
(816.6)
(97.0)
(52,865.5)
1,468.8
(98.3)
(26.1)
(39.8)
(119.7)

413.80
9,468.90
1,442.3
3,447.5
247.6

-619.9
-1,015.2
(122.0)
(2,584.9)
(1,217.2)

14,656.1
46,415.6
9,831.2
35,073.1
2,198.2

2,748.9
2,748.9
573.7
(9,483.6)
(9,749.7)

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2011

Agency
Law Enforcement Merit System
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
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

January 11
5.0

Change from
January 10
(6.1)

Year-to-Date
46.4

YTD Change from
FY 10
(4.4)

1,079.9
927.3
114.0
302.0
562.3
74.3
20.9
6.2
141.2
2,054.9
133.2
324.7
1.2
128.3
5,886.1
138.2
619.8
14.9
5.5
-

(117.0)
83.3
(30.2)
(113.7)
(51.5)
(21.2)
(30.6)
(1.6)
(0.6)
100.0
141.2
5,622.0
(470.6)
29.2
(31.7)
(2,421.9)
(19,304.9)
(97.5)
(11.3)
1.1
(1,729.7)

11,137.4
7,647.6
1,342.3
3,053.0
5,365.9
3.2
343.8
741.0
793.1
96.8
-

945.5
(204.6)
(146.0)
(332.6)
(219.1)
(736.6)
(423.4)
(107.6)
363.6
2.5
(7.8)

20,000.0
817.2
25.0
610.4
31,863.7
3,301.3
1,022.3
8.2
1,913.8
26,149.8
33,391.9
10,736.8
167.5
25.1
-

(1,900.3)
817.2
(275.0)
(761.7)
(6,606.6)
(601.5)
(44.5)
0.1
(364.2)
2,622.3
(68,250.7)
4,428.9
(4.3)
(200.0)
(12.2)
(3,292.7)

2,881.0
25,400.9
8,551.9
22,135.0
486.3
1,461.0
109.5
182.0
773,722.8

(2,603.3)
(41,251.6)
(13,888.5)
(35,947.8)
(355.6)
104.6
4.5
2,557.7
(199,019.8)

13,454.5
268,383.8
90,357.0
233,874.3
7,048.2
4,597.2
691.6
1,793.6
5,869,344.6

(6,333.4)
(10,198.4)
(3,425.4)
(8,876.3)
(250.0)
2,153.7
(6,173.7)
(101.3)
(17,401.3)
(340,138.0)