JLBC - Monthly Fiscal Highlights

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

Summary
Collections in FY 2012 continued to be above
the prior year, as December General Fund
revenues totaled $903.7 million. Excluding
one-time adjustments, these collections were
5.3% above last year. Year-to-date, General
Fund revenues have grown by 7.6%
compared to the prior year.
December revenue growth was driven by
gains in all 3 major revenues categories. In
particular, Corporate income tax collections
posted a significant gain of 31.5%.

www.azleg.gov/jlbc.htm

“Year-to-date for
the first half of FY
2012, revenues
are $204 million
above forecast.”

January 2012

General Fund collections exceeded the
forecast by $26.3 million in December. Yearto-date for the first half of FY 2012, revenues
are $204 million above forecast.
In comparison, December 2010 General Fund
spending was $570 million, or $(22.5) million
below last year. December expenditures
were lower than the prior year in part due to
decreased spending by the Universities and
the Department of Corrections.
Fiscal year-to-date, General Fund revenues of
$4.6 billion have been offset by $5.3 billion in
spending.
Baseline and Executive Budget Summary
In mid-January the JLBC released its FY 2013
Baseline budget. The Baseline reflects a
consensus economic forecast and statutory
funding formula requirements. The Baseline
does not represent a budget proposal. In
summary:
• The General Fund budget is projected to
have a balance of $583 million in FY 2012
and $431 million in FY 2013. These estimates
exclude any prior year carry-forward
balance.

• FY 2013 General Fund revenues are
forecasted to grow by 5.1% and revenues
would equal $8.8 billion.
• Overall, FY 2013 General Fund spending
would grow by $30 million, or 0.4%. This
includes a $99 million increase for Medicaid
caseload growth and one-time savings
related to an extra pay period in FY 2012.
FY 2013 spending would equal $8.4 billion.
In addition, the Executive budget was
released. The Executive revenue estimates
are $375 million higher than the JLBC Baseline
between FY 2012 and FY 2013. Unlike the
JLBC Baseline, the Executive budget includes
discretionary spending adjustments. Between
the 2 years, Executive spending is
approximately $800 million higher than the
JLBC Baseline. Please see the JLBC
Comparison of the Baseline and Executive
Budget for further information.
Finance Advisory Committee Summary
At its January 19, 2012 meeting, the Finance
Advisory Committee (FAC) heard
presentations on General Fund Revenue
collections, the U.S. economy, and state cash
flows. The JLBC Staff provided members with
the FY 2012 - FY 2015 Baseline estimates along
with a brief summary of the Executive budget
proposal.
In addition to the JLBC Staff presentation,
panel members heard formal presentations
from economist Elliott Pollack and the State
Treasurer Doug Ducey. The presenters and
FAC panelists generally believed that the
current economic recovery could be slower
than typically seen in prior business cycles.

Table of Contents
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
January 20, 2012.

Summary
• Baseline and Executive Budget Summary ..... 1
• Finance Advisory Committee Summary......... 1
December Revenues ............................................. 2
Economic Indicators.............................................. 3
Summary of Recent Agency Reports
• ADC – Incarceration Costs ............................... 7

• DES – Domestic Violence Funding................... 7
• JLBC Staff – FY 2011 Card Transactions........... 7
• Public Programs Eligibility Report ..................... 7
• SFB – Funding Estimate Report.......................... 7

December Spending ............................................. 8

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

December Revenues
Table 1

General Fund Revenues ($ in Millions)

December
Year-to-Date

FY 2012
Collections
$ 903.7
$ 4,552.3

Sales Tax collections were $367.9 million, or
7.8% above December 2010 and $20.5 million
above forecast. Excluding the $73.6 million
from the temporary 1-cent sales tax increase,
collections were $294.3 million, or 7.2% above
December 2010. The temporary 1-cent
continues to grow more than the base tax
because of certain exemptions.
“[December
base sales tax]
collections
were $294.3
million, or 7.2%
above
December
2010.”

Year-to-date, base sales tax collections are
5.9% above the prior year and are $58.3 million
above forecast.
Table 2 displays the December growth rates for
the largest categories.
Table 2

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Utilities
Use
Restaurant & Bar

December
4.9%
10.4%
6.2%
58.8%
9.9%

YTD
7.4%
11.4%
0.6%
7.0%
7.9%

Retail and contracting together account for
about 60% of all sales tax revenues. Retail
continues to post significant gains over the
previous year. Contracting posted significant
gains again this month after November’s loss,
which was the only negative month in 2011.
Use Tax continues to be volatile, with this
month growing 58.8% compared to an
unusually low month last year.
Individual Income Tax net revenues were
$352.3 million in December, or 2.9% above the
prior year. Collections were $(1.4) million
below forecast. Year-to-date, revenues have
grown 8.2% and are $84.2 million above
forecast through December.
As indicated in Table 3, withholding increased
by 0.6% in December for a year-to-date
increase of 3.4%. This month’s decrease may
be due to a timing issue. December had 2
fewer processing days than the previous year.
While the table shows a large decrease in

Difference From
Forecast
$ 26.3
$ 203.7

Difference
From FY 2011
$ 47.3
$ 453.6

refunds, collections for December are small
on a total dollar basis.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

December
0.6%
12.3%
(44.7)%

YTD
3.4%
15.6%
(25.3)%

Corporate Income Tax net collections were
$129.8 million in December, which is $31.1
million above the prior year. Collections were
$10.7 million above the forecast. Year-to-date,
collections have grown 33.7% and are $64.0
million above forecast.
The Lottery Commission reports that
December ticket sales were $54.7 million,
which is $1.0 million, or 1.9%, above sales in
the prior year. Year-to-date ticket sales are
$292.8 million, which is 8.8% above last year’s
sales.
Non-General Fund
Tobacco Tax revenues were $29.5 million in
December. Collections were up 15.6%
compared to the prior year. Year-to-date
collections are up 1.4%, and are $1.3 million
above forecast.
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.
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 $101.5
million in December were down $(0.3) million,
or (0.3)%, compared to December of last
year. Year-to-date revenues are down (0.1)%.

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Table 4

General Fund Revenue:
Change from Previous Year and Enacted April Budget Forecast
December 2011
Current Month

FY 2012 YTD (Six Months)

Change From

Change from

December 2010

Actual
December 2011

Forecast

Percent

Amount

Percent

Amount

December 2010

Actual
December 2011

Amount

Forecast

Percent

Percent

Amount

Taxes
Sales and Use - Base*
- 1¢ Increase*
Income - Individual
- Corporate

$294,279,967

$19,823,120

$73,649,842

6,671,907

10.0

7.2 %

$16,183,538
4,347,153

6.3

352,348,784

9,846,129

2.9

(1,380,804)

(0.4)

129,826,100

31,089,267

31.5

10,668,533

9.0

(1,846,431)

(36.3)

(1,486,802)

(31.4)

Property

3,247,020

Luxury - Tobacco

1,500,000

202,234

19.5

195,347

2,791,432

17,203

0.6

(46,509)
(5,977,534)

- Liquor
Insurance Premium
Estate
Other Taxes

36,150,654
0
35,224

(5,146,538)
0
(486,200)

(12.5)
-(93.2)

$22,237,609

$1,783,686,118

$98,923,227

440,992,397

46,106,736

11.7

5.9 %

$58,305,862
24,801,105

3.4 %
6.0

1,725,930,205

131,490,361

8.2

84,207,892

5.1

322,075,750

81,116,832

33.7

63,978,705

24.8

9,100,298

(1,883,769)

(17.2)

(1,818,571)

(16.7)

18.9

6,006,883

(2,034,406)

(25.3)

(2,077,077)

(25.7)

(1.6)

10,530,787

2,294,326

27.9

2,105,169

25.0

(14.2)

159,702,060

(17,629,796)

(9.9)

(20,650,384)

(11.5)

--

220,825

(216,547)

(49.5)

220,825

(88.3)

262,528

(502,445)

(65.7)

(248,879)

$893,829,023

$60,170,692

Lottery

5,726,840

6,417,630

License, Fees and Permits

3,252,401

1,238,150

61.5

1,288,721

65.6

Interest

2,062,864

1,759,557

580.1

1,562,864

Sales and Services

1,228,541

Sub-Total Taxes

7.2 %

0
(265,313)

5.8 %

2.6 %

$4,458,507,852

$337,664,520

8.2 %

-(48.7)

$208,824,648

4.9 %

Other Revenue

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

958,476

(72,658)

(5.6)

5,726,840

45.1

4,335,935

21.6

8.2

1,684,000

13.3

2,091,850

(167,711)

(7.4)

(908,150)

(30.3)

7,835,098

(2,184,569)

(21.8)

(2,450,984)

(23.8)

364.0

16,083,948

7,962,097

98.0

--

751,892
0

63,504

(549,516)

(89.6)

(14,492,835)

7,595,370
1,092,171

(36.2)

(100.0)

$45,677,857

24,427,000
14,351,315

312.6

(27,146,306)

13,292,626

--

(696,412)

0

$907,121,649

3,860,308

--

(4,551,555)

6,241,785

63.4

--

0

(27,146,306)

(100.0)

(98.6)

11,509,292

(2,470,781)

(17.7)

(52.2) %

4,082,350

44.3 %

76,298,504

5.3 %

$26,319,959

3.0 %

$4,534,806,355

(17,040,040)
$320,624,479

0
(6,635,041)

-(36.6)

(18.3) %

3,987,858

5.5 %

7.6 %

$212,812,505

4.9 %

Other Adjustments
Urban Revenue Sharing
Budget Plan Transfers
Tax Recovery Program
Sub-Total Other Adjustments
TOTAL GENERAL FUND REVENUE

(35,368,620)

4,131,923

31,922,856

(2,531,695)

0
(3,445,764)
$903,675,886

0

--

0

0.0

(212,211,720)

24,791,538

(7.3)

0

0.0

216,862,077

95,334,519

-78.4

0

0.0

0

0.0

--

0

--

12,867,428

12,867,428

--

(9,132,572)

(41.5)

1,600,228

-- %

0

0.0 %

17,517,786

132,993,486

-- %

(9,132,572)

(34.3) %

$47,278,085

5.5 %

$26,319,959

3.0 %

$4,552,324,141

$453,617,965

11.1 %

$203,679,934

4.7 %

Non-General Funds
Highway User Revenue Fund

$101,522,209

Tobacco Tax (All Funds Total)

$29,526,286

($263,706)
$3,989,345

(0.3) %

($1,179,779)

(1.1) %

$591,535,638

15.6 %

$1,639,152

5.9 %

$165,030,598

($696,565)
$2,278,123

(0.1) %

($8,969,332)

(1.5) %

1.4 %

$1,267,267

0.8 %

__________
* Total December collections including the temporary 1¢ increase approved by the voters in May 2010 were $367.9 million. This amount is $26.5 million, or 7.8%, above December 2010 and $20.5 million, or 5.9%, above
forecast. Year-to-date, total collections including the 1¢ increase were $2,224.7 million. This amount is $145.0 million, or 7.0%, above December 2010 and $83.1 million above forecast.

Economic Indicators
NATIONAL
The Conference Board’s U.S. Consumer Confidence
Index increased by 9.4 points in December to 64.5, the
highest reading in 7 months. The December increase
came on top of a 14.3 point surge in November. The
improvement in the index over the last 2 months indicates
that consumers have become increasingly more
optimistic about the state of the economy. The
improvement is reflected in consumers’ assessment of
current, as well as expected, business and labor market
conditions. Improved consumer sentiments help to
explain the relatively strong growth in 2011 holiday retail
sales. Although consumer confidence is growing
stronger, Americans are still facing considerable

obstacles, especially related to housing and a potential
fallout from the ongoing Euro-zone sovereign debt
problem.
Consumer prices, as measured by the U.S. Consumer
Price Index (CPI), remained unchanged in December for
a second consecutive month. Inflation pressures have
abated over the last 3 months largely due to declines in
energy (especially gasoline) prices. With the price of
gasoline now rising, however, the overall CPI is expected
to increase in the coming months. Year-over-year, the
CPI was up by 3.0% in December. Core inflation, which
excludes energy and food prices, increased by 0.1% in
December. Year-over-year, core inflation was 2.2% in
December. Due to large industrial excess capacity and a
slack labor market, inflation is expected to remain muted
in the near term.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Economic Indicators
ARIZONA

“The number of
Maricopa County
pending
foreclosures
decreased from
20,962 in
November to
19,979 in
December. The
December total is
(61.2)% below
the peak in
December 2009
(51,466).”

The Federal Reserve Bank of Philadelphia’s
coincident index gauges current economic
activity in each state. The index combines 4
indicators: employment, average hours
worked in manufacturing, unemployment rate,
and inflation-adjusted wages.
Almost all states nationwide saw an increase in
their coincident index in November, with
Arizona posting moderate growth compared
to other states. In November, Arizona’s
coincident index increased by 0.2% compared
to the prior month. Year-over-year, the Arizona
index is 1.9% above last year, the largest gain
since June 2007. While this is a significant
improvement, Arizona’s index is still (12.8)%
below its peak, which occurred in August 2007.
See Tracking Arizona’s Recovery for additional
historical information.
The Federal Reserve Bank of Philadelphia also
publishes a leading index for each state that
forecasts economic conditions for the next 6
months. In addition to the coincident index,
Arizona’s leading index is based on Arizona
housing permits, Arizona initial unemployment
insurance claims, national delivery times from a
manufacturing survey, and the interest rate
spread between the 3-month and 10-year
Treasury instruments.
Using a 3-month average, Arizona’s leading
index projects that state GDP will grow at an
annualized rate of 3.2% over the next 6 months.
This is unchanged from the 3.2% growth
projection in October, but higher than the 0.9%
projection in November 2010.
Housing
The number of Maricopa County pending
foreclosures decreased from 20,962 in
November to 19,979 in December. The
December total is (61.2)% below the peak in
December 2009 (51,466). See Tracking
Arizona’s Recovery for additional historical
information.
While the decline in the number of pending
foreclosures is a positive development in the
Maricopa County real estate market, home
prices in the area continue to fall. In the
Phoenix Metropolitan area in December,
there were a total of 7,940 existing singlefamily home sales that resulted in a median
resale home price of $125,000. Compared to
the prior year, the number of sales have

(Continued)

decreased (2.6)%, while prices are (3.8)%
lower.
Of the existing sales in the area, a significant
portion (28.6%) were foreclosures. This is an
improvement from the worst of the recession,
where over half of existing home sales were
foreclosures. However, data suggests this
decline is partially due to lenders agreeing to
short sales rather than foreclosing properties.
The exchanging of these 2 transaction types
has a minimal impact on the real estate
market, as a large volume of distressed sales
weighs down housing prices.
Another measure of the health of the Arizona
real estate market is permitting activity. It
appears that single-family housing permits will
decline for the sixth consecutive year in 2011.
Through November, a total of 9,826 singlefamily building permits had been issued
statewide, a (5.0)% decrease from last year.
While the single-family sector appears to still
be struggling, the multi-family housing sector
seems to be more healthy, in part due to
declining apartment vacancy rates. As of
November, multi-family building permits for a
total of 2,535 units had been issued in the
state, a 70% increase from the prior year.
While this growth is significant, multi-family
permitting activity still remains approximately
(64)% below the peak of activity in June 2006.
Employment
The Employment and Population Statistics Unit
(EPSU) of the Arizona Department of
Administration reported that the state
incurred a month-over-month net loss of
(3,000) nonfarm jobs in December. This is an
anomaly since the state typically adds jobs in
December. To provide some perspective,
nonfarm employment has declined only 4
times in the month of December over the last
50 years. The average December net
increase in the prior 10 years was 6,400 jobs.
The unexpected job loss in December was
due to a combination of factors: a historically
small gain in private sector employment (less
than half the average increase) and an
unusually large loss of government jobs (more
than twice the average decline) for the
month of December. Perhaps most
surprisingly, the retail sector did not add any
jobs in December, which typically marks the
height of the holiday shopping season. It
remains to be seen whether these numbers

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Economic Indicators

(Continued)

will be revised as a result of the annual benchmarking
process that will be released in March 2012.
(Benchmarking refers to the annual process when
historical employment estimates are revised to reflect
actual unemployment insurance records.)
The latest employment report showed that the state had
37,800 more payroll employees in December 2011 than
in the same month in the prior year. This net increase
represented a percentage gain of 1.6%. All sectors but
1 (other services) expanded their payrolls, year-over year, in December. It is noteworthy that year-over-year
employment growth has declined in each consecutive
month since September when job growth peaked at
2.3%. Average annual employment growth in 2011 was
1.0%, a net increase of 23,500 jobs over 2010. The 2011
job increase followed 3 consecutive years of job losses.
While the state has enjoyed year-over-year employment
gains for 12 consecutive months, nonfarm employment
in the state remained 10%, or (271,700) jobs, below peak
employment levels reached in December 2007. This
figure suggests that the state may still be years away
from returning to pre-recession employment levels. See
Tracking Arizona’s Recovery for additional historical
information.
The state’s unemployment rate in December remained
unchanged at 8.7%. By way of comparison, the U.S.
jobless rate was 8.5%. Arizona unemployment rate was
9.6% in December 2010 and peaked at 10.4% in
December 2009. While the jobless rate has declined over
the last year, most analysts expect the decrease to be
slow and gradual over the next 3 to 5 years.
State Agency Data
In January, total AHCCCS caseloads equaled 1.33
million members, a (0.8)% decrease from the prior
month. Overall AHCCCS caseloads are currently (1.3)%
below January 2011 levels.
The traditional AHCCCS population, which consists
primarily of lower-income children and their parents, saw
virtually no growth from December, but was up 5.8%
from a year ago. The total population in this program is
almost 900,000.
This growth has been offset by declines in other
populations. The Proposition 204 childless adult program
has not allowed new participants since July and this
population has declined (64,206) since July to 153,512.
Of the decline, (10,443) is attributed to members who
were transferred to the SSI program. The Proposition 204
program has declined (3.8)% compared to the prior
month, and (16.9)% from the prior year.

There were 39,616 TANF recipients in the state in
December, a monthly caseload increase of 3.4%. Yearover-year, the number of TANF recipients has declined
by (12)%. This decline is the result of changes to the
statutory lifetime limit a person may receive cash
assistance. The FY 2011 budget reduced the lifetime
limit to 36 months. The FY 2012 budget further reduces
this limit to 24 months. Previously, the maximum had
been 60 months. The FY 2012 budget assumed
caseloads of approximately 36,000 in FY 2012.
The Supplemental Nutrition Assistance Program (SNAP),
formerly known as Food Stamps, provides assistance to
low-income households to purchase food. In
December, there were a total 1.1 million food stamp
recipients in the state, a 0.1% increase over the prior
month. Compared to the same month last year, food
stamp participation was up by 8.3%. 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 decreased to
40,031 inmates between October and December 2011.
Relative to the prior 3-month period, the population has
decreased by (27) inmates. Compared to a year ago,
the population has declined by (225) inmates.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Economic Indicators

(Continued)

Table 5

ECONOMIC INDICATORS
Indicator
Arizona
- Unemployment Rate (SA)
- 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-family
Multi-unit
- Greater Phoenix Existing Home Sales
Single-Family
Townhouse/Condominium
- Greater Phoenix Median Resale Home Price
Single-Family
Townhouse/Condominium
- Greater Phoenix S&P/Case-Shiller Home Price Index
(Jan. 2000 = 100)
- Foreclosure Activity, Maricopa County
Pending Foreclosures (Active Notices)
- Greater Phoenix Total Housing Inventory, (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 Leading Index -- 6 month projected growth rate
- Arizona Personal Income
- Arizona Population
- AHCCCS Recipients
Acute Care Traditional
Spend Down
Prop 204 Childless Adults
Other Prop 204
Kids Care
Long-Term Care – Elderly & DD
Emergency Services
- 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

Time Period

Current Value

Change From
Prior Period

Change From
Prior Year

December
November
November
December
December
December
November
Oct-Dec
Oct-Dec

8.7%
21,348
58,496
2.45 million
152,000
112,500
40.3
$34.9 million
$141.2 million

(0.0)%
(15.5)%
(8.5)%
(0.1)%
(0.3)%
(1.9)%
0.0%
(4.4)%
2.3%

(0.9)%
(8.5)%
(17.4)%
1.6%
2.1%
2.8%
(0.7)%
6.3%*
6.6%*

Sep-Nov
Sep-Nov

838
263

(10.7)%
2.6%

21.6%
31.8%

December
December

7,940
1,190

11.8%
10.7%

(2.6)%
(10.2)%

December
December
October

$125,000
$78,265
100.54

(0.8)%
(3.2)%
0.3%

(3.8)%
(6.7)%
(5.1)%

December
December
October
October

19,979
24,712
3.33 million
$5.03

(4.7)%
(7.8)%
8.5%
(7.0)%

(51.8)%
(41.8)%
2.3%
(8.7)%

1st Quarter 2012
November
Sep-Nov
3rd Quarter 2011
July 1, 2011
December

December
December
Oct-Dec

69.5
178.76
3.2%
$232.2 billion
6.48 million
1,325,006
895,389
153,512
155,570
12,839
51,872
55,824
39,616
1,154,159
40,031

20.9%
0.2%
0.0%
0.2%
N/A
(0.8)%
0.0%
(100.0)%
(6.6)%
(0.8)%
(5.1)%
0.3%
2.4%
3.4%
0.1%
(27) inmates

10.7%
1.9%
2.3%
4.3%
1.1%
(1.3)%
5.8%
(100.0)%
(30.6)%
3.1%
(44.0)%
2.3%
24.6%
(12.0)%
8.3%
(225) inmates

November
November

18,609
25,550

(138)
(189)

(986)
(691)

3rd Quarter 2011
(3rd Estimate)
December
November
Sep-Nov
December

$13.3 trillion

1.8%

1.5%

64.5
118.0
$4.59 billion
226.75

16.8%
0.5%
(1.8)%
0.0%

1.7%
5.9%
(2.5)%
3.0%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Summary of Recent Agency Reports
Arizona Department of Corrections - Report on Proposed
Schedule of County Charges for “Less Than a Year”
Incarceration Costs - Pursuant to a provision in the FY
2012 Criminal Justice Budget Reconciliation Bill (Laws
2011, Chapter 33), the Arizona Department of
Corrections (ADC) has submitted to the Committee its
proposed schedule of charges to counties for
incarceration costs in reimbursement agreements
associated with the transfer of responsibility for inmates
sentenced to ADC for less than a year. Chapter 33
requires sentencing counties to house these inmates or to
pay ADC to house them for the counties. ADC proposes
to charge those counties $55.59 per inmate per day,
based on ADC’s reported minimum custody operating
cost. The Executive is proposing to repeal the transfer of
responsibility for inmates to counties in its FY 2013 budget.
(Stefan Shepherd)
Department of Economic Security - Report on Available
State and Federal Domestic Violence Funding - Pursuant
to a General Appropriation Act Footnote, the
Department of Economic Security (DES) is submitting its
annual report on state and federal domestic violence
funds. A total of $24.0 million was used by 6 state entities
for domestic violence services in FY 2011, the same
amount as FY 2010. (Ben Beutler)
JLBC Staff - FY 2011 Reports on Credit Card Transactions A.R.S. § 35-142 requires agencies that accept credit
cards to annually report the number and dollar amount
of those transactions, compared to the number and
dollar amount of all transactions. Statute also requires
information on the total dollar amounts of any discount,
processing, or convenience fees paid. Lastly, each
agency must issue a cost benefit report when its
percentage of electronic transactions exceeds 30%.
For FY 2011, 20 agencies reported accepting credit
cards. Credit card transaction volumes vary widely
among the various departments. The total number of
transactions processed by these agencies was 380,436.
The dollar amount for these transactions was $40.5
million. The amount paid in transaction fees was
$770,000. During FY 2011, agency transaction fee
percentages ranged from 0% to 3.06%, with an average
of 1.90%. (Brett Searle)
Public Programs Eligibility Report - As enacted in the 2006
election, Proposition 300 limits participation in certain
state programs to citizens, legal residents, or other
persons lawfully present in the United States, and requires
semi-annual reports to the Joint Legislative Budget
Committee. Below is a summary of the reports:
Universities - At the 3 universities, 135,746 students
registered for the fall 2011 semester. Of the total students

registered, the universities were able to verify the legal
immigration status of 122,854 students. Additionally, the
universities reported that 11,191 of these students did not
require verification because they have either not
requested, or received in-state tuition or state supported
financial aid. The universities reported that a total of 25
students were unverifiable due to their inability to provide
the requisite documentation.
Department of Economic Security - The department
reported that 8,671 applications were received for child
care assistance during the reporting period of June 1,
2011 to November 30, 2011. Of this number, 18 were
denied because criteria for citizenship or legal residency
were not met.
Community Colleges - Statewide, the Community
Colleges reported a total of 273,004 students classified as
in-state for the fall 2011 semester. They reported 1,329
students who were not entitled to be classified as in-state
because of a lack of lawful immigration status.
Additionally, 117,788 students applied for financial aid.
Of those who applied, the community colleges reported
that 283 were not entitled to any aid because they were
not lawfully present in the United States.
Department of Education - The department reported
that 16,401 people applied for instruction in Arizona Adult
Education during the reporting period of June 1, 2011 to
December 1, 2011. Of this amount, 510 were denied
instruction because they failed to provide evidence of
citizenship or legal residence in the United States.
(James Alcantar)
School Facilities Board - Report on Funding Estimates Pursuant to A.R.S. § 15-2002, the School Facilities Board
(SFB) is required to report the estimated amounts
necessary in FY 2013 and FY 2014 for the New School
Facilities, Building Renewal, and Emergency Deficiencies
Correction Programs.
In FY 2013, SFB estimates a total funding requirement of
$423,217,100, including $174,319,800 of lease-purchase
authority for the New School Facilities Program (or
$53,736,000 in FY 2013 to pay on a cash basis), and
$248,897,300 for the Building Renewal Program. The new
construction estimate assumes the current construction
limitation is lifted in FY 2013. The Building Renewal
amount is based on the current statutory formula, which
was suspended in FY 2012 in favor of a $2,667,900
discretionary grant program.
For FY 2014, the board estimates it will need funding in
the amount of $341,320,100. Of this total, $75,000,000 is
for the New School Facilities Program and $266,320,100 is
for the Building Renewal Program.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Summary of Recent Agency Reports
SFB did not request to transfer any monies from the New
School Facilities Fund to the Emergency Deficiencies
Correction Fund in FY 2013 or FY 2014, due to insufficient
monies in the New School Facilities Fund.
The FY 2013 Executive Budget recommended no funding
for SFB New Construction program. This funding level was
based on changes that would: 1) expand the
calculation of school district capacity to include areas

(Continued)

adjacent to the high growth section of a given district; 2)
increase local school district Class B bonding limits.
In addition, the Executive requested $100 million for the
Building Renewal Grant program, and proposed
eliminating the building renewal formula and replacing it
with a grant system based on a newly developed
building inventory system. This $100 million is intended to
fund all building repairs for the next 3 years. (Jack Brown)

December Spending
December 2011 General Fund spending was $570.0
million. December expenditures were less than the prior
year primarily due to decreased spending by the
Universities and the Department of Corrections.

•

In December, Universities spending was $(13.4) million
less than the prior year. The Universities received a
$198 million lump sum reduction in FY 2012, which will
be spread out throughout the fiscal year.

FY 2012 Spending
December 2011 spending of $570.0 million was $(22.5)
million less than December 2010 (See Table 6).

Table 6
General Fund Spending ($ in Millions)

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

December 11

Change from
December 10

Year to
Date

YTD
Change
from FY 11

137.5
69.3
6.8

15.8
(10.6)
5.1

827.4
469.0
434.2

62.4
21.5
0.1

282.4
10.0
2.0
0.1

(11.0)
(3.3)
0.1
(0.1)

2,219.9
431.7
34.6
133.0

2.8
195.2
4.8
99.7

42.7
0.0

(13.4)
0.0

465.4
49.1

(81.7)
3.0

19.2
570.0

(5.1)
(22.5)

262.8
5,327.1

(76.3)
231.5

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Table 7

Agency
Department of Administration
Department of Admin Sale/Leaseback D/S
Office of Administrative Hearings
Department of Agriculture
AHCCCS
Attorney General
AZ Capital Post Conviction Public
Defender
State Board of Charter Schools
Department of Commerce/AZ Commerce
Authority
Community Colleges
Corporation Commission
Department of Corrections
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 Forester
Arizona Geological Survey
Government Information Tech.
Governor/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
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.
Legislative Council

General Fund Spending
($ in Thousands)
Change from
December 11
December 10
578.1
(629.7)
62.9
62.9
288.4
(351.9)
137,491.3
15,781.1
1,401.3
51.6
58.5
(5.5)
52.2
2,625.0

2.3
2,668.5

42.7
69,313.1
1,068.5
6,811.7
282,383.8
(189.7)
12.0
32.9
52.0
182.4
(0.7)
217.8
36.3
(1098.8)
10,001.1
193.5
47.4
336.1
0.2
345.9
599.4
776.8
860.0
2,224.5
2.3
4.6

(4.6)
(10,638.8)
(1,440.2)
5,109.2
(11,039.8)
(971.6)
14.3
(76.9)
(6.3)
(23.2)
(71.9)
171.2
(9.0)
(38.9)
(1,517.1)
(3,331.6)
(8.8)
(6.7)
336.1
(3.2)
(72.4)
(167.7)
(666.6)
99.4
(1,650.4)
(407.1)
(1.7)

1,280.9
895.0
136.2
303.2

(407.8)
(57.0)
(44.0)
(67.6)

Year-to-Date
10,018.3
49,050.7
430.7
4,179.5
827,357.1
9,076.0
299.8
393.9
15,750.0
34,288.7
277.7
469,044.5
11,122.4
434,219.4
2,219,924.8
3,391.2
7,000.0
93.5
367.1
437.9
1,452.6
905.9
2,979.9
459.2
(3.1)
2,988.0
431,740.1
1,834.8
332.2
1,953.8
27.8
2,763.9
6,936.5
36,828.4
7,115.5
24,427.8
582.5
28.2
9,041.6
6,088.1
1,016.2
2,996.7

YTD Change from
FY 11
(2,705.7)
(3,016.2)
(29.0)
(1,119.5)
62,350.9
(1,507.0)
(30.5)
(51.7)
13,155.6
(31,934.5)
(25.8)
21,549.1
(1,465.7)
620.9
2,795.1
(2,058.6)
(0.6)
(3.1)
16.5
(90.0)
(180.6)
(504.4)
1,570.4
150.0
(273.8)
(2,194.9)
195,175.4
(2,396.5)
(6.7)
1,953.8
(0.1)
(631.1)
(120.9)
(7,303.3)
(1,273.4)
(7,197.8)
(1,368.1)
(13.1)
(1,016.0)
(632.2)
(212.2)
245.7

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2012

Agency
Senate
Board of Medical Student Loans
Mine Inspector
Department of Mines & Mineral Resources
Nav. Streams & Adjudication
OSHA
Arizona State Parks Board
Pioneers’ Home
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
Department of Transportation
State Treasurer
Universities
Board of Regents
Arizona State University
Northern Arizona University
University of Arizona
Department of Veteran Services
Department of Water Resources
Department of Weights & Measures
Other
Grand Total

December 11
625.4
59.3
14.8
277.1
1,953.3
45.2
9.7
135.9
2,048.8
69.9
536.9
5.5
3.0
1,530.3

Change from
December 10
(99.5)
(135.1)
(52.2)
(28.1)
7.8
130.2
(452.7)
(62.6)
(81.8)
8.8
(1.2)
(34.4)
(236.3)
(33.4)
(145.6)
(17.4)
0.8
269.0

201.6
19,169.4
6,431.6
16,872.6
(22.8)
505.5
82.8
569,984.8

195.9
(6,231.5)
(2,120.3)
(5,262.5)
1,414.7
(118.7)
38.0
(49.9)
(22,519.4)

Year-to-Date
4,106.3
20.5
589.4
90.0
1,108.3
698.4
34,624.8
2,670.4
750.0
1,317.1
28,734.6
132,954.5
5,033.8
135.8
17.2
1,862.5
10,515.6
205,591.6
69,084.5
180,165.2
3,895.6
3,099.7
543.5
243.4
5,327,072.2

YTD Change from
FY 11
(697.3)
(323.3)
(77.3)
(772.2)
(0.6)
(20,000.0)
432.4
88.0
4,816.0
(497.7)
52.4
(7.1)
(468.5)
8,470.9
99,700.8
(5,083.3)
(16.8)
(2.3)
251.2
(57.9)
(37,391.3)
(12,720.5)
(31,574.0)
(2,666.4)
(36.6)
(38.6)
(150.3)
231,450.4