JLBC - Monthly Fiscal Highlights

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

www.azleg.gov/jlbc.htm

“While January
collections
showed large
gains, base sales
tax revenues
only increased
2.5%, reflecting a
mild growth in
December
holiday sales.”

February 2012

Summary
January collections continued the trend of
growing revenues in FY 2012, as every month
this year has shown an increase compared to
the prior year. January General Fund
revenues totaled $893.4 million. Excluding
budget transfers, these collections were 10.2%
above last year. Year-to-date, General Fund
revenue is 8.1% higher than the prior year.

prior year in part because of Department of
Health Services (DHS) spending which was
significantly lower due to changes in the
timing of a transfer for the Medicaid state
match for the Behavioral Health program.
Fiscal year-to-date, General Fund revenues of
$5.5 billion have been offset by $6.0 billion in
spending.

While January collections showed large gains,
base sales tax revenues only increased 2.5%,
reflecting a mild growth in December holiday
sales. In addition, the increase in Individual
Income tax collections was due to $60 million
of one-time payments. Absent this one-time
gain, overall base revenue growth would
have been 3.0% in January.

State Appropriations Limit Report – 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 2012 state
appropriations (both General and Other
Funds) would be $13.33 billion, or 5.64% of
personal income. The FY 2013 JLBC Baseline
includes spending of $13.31 billion, which
would be 5.26% of personal income.

Beginning with this February report, actual
revenue collections are compared 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 exceeded that
Baseline forecast by $46.5 million in January.
Without the one-time collections discussed
above, revenues would have been $(13.5)
million below forecast. In addition, Individual
Income tax refunds in February are running
significantly higher than expected, which
could negatively affect February’s forecast
variance.
In comparison to revenue of $893.4 million,
January 2012 General Fund spending was
$650 million, or $(124) million below last year.
January expenditures were lower than the

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 1.43%,
which is slightly higher than the 1.40%
assumed under the FY 2013 JLBC Baseline.
The impact of the higher than-projected new
construction growth is that the Arizona
Department of Education’s formula costs will
decrease by $(6.7) million in FY 2013 relative
to the JLBC Baseline.

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

Summary

Summary of Recent Agency Reports

• State Appropriations Limit Report .................... 1

• ADOA/Treasurer – General Fund Balance ..... 7

• Truth in Taxation Report ..................................... 1

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

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

• DOR – Report on Temporary Collectors.......... 7

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

• SFB – Energy Cost Savings Contracts .............. 7

JLBC Meeting........................................................... 7
JCCR Meeting ......................................................... 7

January Spending .................................................. 8

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

January Revenues
Table 1

General Fund Revenues ($ in Millions)

January
Year-to-Date

FY 2012
Collections
$ 893.4
$ 5,456.8

Sales Tax collections were $435.4 million, or
3.3% above January 2011 and $(3.0) million
below the January JLBC Baseline forecast.
Excluding the $88.0 million from the temporary
1-cent sales tax increase, collections were
$347.4 million, or 2.5% above January 2011.
The temporary 1-cent continues to grow more
than the base tax because of certain
exemptions.
“In recent
months, retail
growth has
continued to
grow, but at as
slower rate,
due in part to
the stronger
base in the
prior year.”

Year-to-date, base sales tax collections are
5.3% above the prior year and are $(2.5) million
below forecast.
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
3.5%
1.3%
1.6%
2.6%
6.2%

YTD
6.7%
9.8%
0.8%
6.3%
7.6%

Retail and contracting together account for
about 60% of all sales tax revenues. January
retail, which reflects December’s holiday
sales, grew by 3.5%. Retail began to grow last
December. In recent months, retail growth
has continued to grow, but at a slower rate,
due in part to the stronger base in the prior
year. This trend may continue considering the
high growth rates last February through June.
Contracting collections also slowed this
month.
Individual Income Tax net revenues were
$423.7 million in January, or 16.9% above the
prior year. Collections were $45.8 million
above the JLBC Baseline forecast. Year-todate, revenues have grown 9.8%.
As indicated in Table 3, withholding increased
by 1.8% in January for a year-to-date increase
of 3.2%. The large increase in Estimated and
Final Payments reflects about $60 million in
what the Department of Revenue called

Difference From
Forecast
$ 46.5
$ 46.5

Difference
From FY 2011
$ 83.6
$ 539.2

“unusual activity” in Estimated Payments.
Due to taxpayer confidentiality, the
department was unable to be more specific.
Without this activity, Estimated Payments
would have grown 6% - 7%.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

January
1.8%
74.9%
41.9%

YTD
3.2%
34.1%
(16.4)%

Corporate Income Tax net collections were
$33.1 million in January, which is $7.8 million
above the prior year. Collections were $10.3
million above the JLBC Baseline forecast. Yearto-date, collections have grown 33.4%.
The Lottery Commission reports that January
ticket sales were $52.7 million, which is $(1.7)
million, or (3.1)%, below sales in the prior year.
Year-to-date ticket sales are $345.5 million,
which is 6.8% above last year’s sales.
Non-General Fund
Tobacco Tax revenues were $23.3 million in
January. Collections were down (21.0)%
compared to the prior year. Year-to-date
collections are down (2.0)%, and are $(6.9)
million below 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 $99.2
million in January were down $(3.5) million, or
(3.4)%, compared to January of last year.
Year-to-date revenues are down (0.6)%.

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

Table 4

General Fund Revenue:
Change from Previous Year and January Baseline Forecast
January 2012
Current Month

FY 2012 YTD (Seven Months)

Change From
Actual

January 2011

January 2012

Amount

Change from
Actual

Forecast

Percent

Amount

Percent

January 2011

January 2012

Amount

Forecast
Percent

Amount

Percent

Taxes
Sales and Use - Base*
- 1¢ Increase*
Income - Individual
- Corporate
Property
Luxury - Tobacco
- Liquor
Insurance Premium
Estate
Other Taxes
Sub-Total Taxes

$347,418,964

$8,457,408

$87,970,921

5,409,312

6.6

423,694,950

61,199,096

16.9

45,827,514

33,127,294

7,842,902

31.0

907,433

115,024
(455,943)

2,278,595

2.5 %

($2,533,407)

$2,131,105,082

$107,380,635

528,963,318

51,516,048

10.8

12.1

2,149,625,155

192,689,457

9.8

45,827,514

2.2

10,344,754

45.4

355,203,044

88,959,734

33.4

10,344,754

3.0

14.5

99,853

12.4

10,007,731

(1,768,745)

(15.0)

99,853

1.0

(16.7)

(370,454)

(14.0)

14,599,022

(15,061)

(0.1)

(370,454)

(2.5)

(487,852)

(0.7) %
(0.6)

5.3 %

($2,533,407)
(487,853)

(0.1) %
(0.1)

4,220,768

(28,660)

(0.7)

(126,251)

(2.9)

19,536,819

1,848,648

10.5

(126,251)

(0.6)

40,237

(70,500)

(63.7)

(43,292)

(51.8)

159,742,297

(17,700,296)

(10.0)

(43,292)

(0.0)

0
62,711
$899,721,873

0
(4,544)
$82,464,095

-(6.8)
10.1 %

0
(3,909)
$52,706,956

--

200,825

(236,547)

(54.1)

(5.9)

325,239

(506,989)

(60.9)

6.2 %

$5,369,308,533

$422,166,884

8.5 %

0
(3,909)
$52,706,956

0.0
(1.2)
1.0 %

Other Revenue
Lottery

5,528,740

(1,024,900)

(15.6)

(2,639,605)

(32.3)

29,955,740

6,570,470

28.1

(2,639,605)

License, Fees and Permits

2,225,976

(849,685)

(27.6)

(497,749)

(18.3)

16,577,291

242,486

1.5

(497,750)

(2.9)

6,663

(272,588)

(97.6)

(3,337)

(33.4)

2,098,513

(440,299)

(17.3)

(3,337)

(0.2)

Interest

(8.1)

Sales and Services

1,559,403

229,435

17.3

(3,448,583)

(68.9)

9,394,501

(1,955,134)

(17.2)

(3,448,583)

(26.9)

Other Miscellaneous

6,081,616

3,828,110

169.9

4,351,586

251.5

22,165,564

10,069,895

83.3

4,351,586

24.4

0

0

603,860

270,852

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

-81.3

16,006,258

2,181,224

15.8 %

$915,728,131

$84,645,319

10.2 %

0

--

0

(27,146,306)

(100.0)

(3,973,684)

(86.8)

12,113,152

(2,199,929)

(15.4)

(6,211,372)

(28.0) %

92,304,762

5.3 %

$5,461,613,294

$46,495,584

(14,858,816)
$407,308,068

(13.9) %
8.1 %

0
(3,973,684)
(6,211,372)
$46,495,584

-(24.7)
(6.3) %
0.9 %

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

13,075,732

(5,220,248)

0
(22,292,888)
$893,435,243

0
(1,088,325)
$83,556,994

--

0

0.0

(247,580,340)

28,923,461

(28.5)

0

0.0

229,937,809

90,114,271

-64.4

0

0.0

0

0.0

--

0

--

12,867,428

12,867,428

--

0

5.1 %

0

0.0 %

(4,775,103)

131,905,160

-- %

0

(0.0) %

0.0

10.3 %

$46,495,584

5.5 %

$5,456,838,192

$539,213,229

11.0 %

$46,495,584

0.9 %

Non-General Funds
Highway User Revenue Fund

$99,208,602

($3,480,926)

(3.4) %

($4,405,132)

(4.3) %

$690,744,240

($4,177,491)

(0.6) %

($13,374,464)

(1.9) %

Tobacco Tax (All Funds Total)

$23,345,895

($6,218,499)

(21.0) %

($8,193,064)

(26.0) %

$188,376,493

($3,940,376)

(2.0) %

($6,925,797)

(3.5) %

__________
* Total January collections including the temporary 1¢ increase approved by the voters in May 2010 were $435.4 million. This amount is $13.9 million, or 3.3%, above January 2011 and $(3.0) million, or (0.7)%, below
forecast. Year-to-date, total collections including the 1¢ increase were $2,660.1 million. This amount is $158.9 million, or 6.4%, above January 2011 and $(3.0) million below forecast.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

Economic Indicators
NATIONAL

“For the
12 - month
period ending in
December, a
total of 2,749
multi-family
building permits
had been issued
in the state, a
64.7% increase
from the prior
year.”

The Conference Board’s Leading Economic
Index increased 0.4% in December, following a
0.2% increase in November and a 0.6%
increase in October. December’s 0.4% gain,
which was primarily the result of fewer initial
unemployment claims and a favorable
interest-rate spread, signals continued growth
in the next few months. Beginning in
December 2011, there were major changes to
the components and methodology of the
index, in addition to the annual revisions. The
new methodology shows a much sharper
decline in the leading economic index during
the 2007-2009 recession than previously
reported. Additionally, under the new
methodology, the index shows a more gradual
recovery than under prior methodology.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), rose by 0.2% in
January. This increase followed 3 months of
essentially no change to overall consumer
prices. Year-over-year, the CPI was up by 2.9%
in January. Core inflation, which excludes
energy and food prices, also increased by 0.2%
in January. Year-over-year, core inflation was
2.3% in January. With gasoline prices rising, the
CPI is poised to increase in the coming months.

ARIZONA
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.
Most states nationwide saw an increase in their
coincident index in December, with Arizona
posting somewhat lower growth compared to
other states. In December, Arizona’s
coincident index was unchanged compared
to the prior month. Year-over-year, the Arizona
index is 1.7% above last year. While this is a
significant improvement, Arizona’s index is still
(12.9)% 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 1.6% over the next 6 months.
This is lower than the 2.2% revised growth
projection in November, and lower than the
1.9% projection in December 2010.
Housing
The number of Maricopa County pending
foreclosures decreased from 19,979 in
December to 18,287 in January. The January
total is (64.5)% below the peak in December
2009 (51,466). See Tracking Arizona’s Recovery
for additional historical information.
Another measure of the health of the Arizona
real estate market is permitting activity.
Single-family housing permits declined for the
sixth consecutive year in 2011. For the 12 month period through December, a total of
10,637 single-family building permits had
been issued statewide, a (3.1)% 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. For the
12 - month period ending in December, a
total of 2,749 multi-family building permits
had been issued in the state, a 64.7% increase
from the prior year. While this growth is
significant, multi-family permitting activity still
remains approximately (78)% below the peak
of activity in June 2006.
Employment
Due to the 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.

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

Economic Indicators

(Continued)

State Agency Data
In February, total AHCCCS caseloads equaled 1.32
million members, a (0.6)% decrease from the prior
month. Overall AHCCCS caseloads are currently (2.0)%
below February 2011 levels.
The traditional AHCCCS population, which consists
primarily of lower-income children and their parents,
increased 0.1% from January and 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 (71,633) since July to 145,493.
Of the decline, (10,603) is attributed to members who
were transferred to the SSI program. As a whole, the
Proposition 204 program has declined (2.8)% compared
to the prior month, and (20.7)% from the prior year.
There were 39,748 TANF recipients in the state in
January, a monthly caseload increase of 0.3%. Year
over-year, the number of TANF recipients has declined
by (9.3)%. 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 January,
there were a total 1.1 million food stamp recipients in
the state, a (0.5)% decrease over the prior month.
Compared to the same month last year, food stamp
participation was up by 8.9%. 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
39,965 inmates between November 2011 and January
2012. Relative to the prior 3-month period, the population
has decreased by (66) inmates. Compared to a year
ago, the population has declined by (181) inmates.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 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
December
December
December
December
December
December
Nov-Jan
Nov-Jan

8.7%
21,373
55,173
2.45 million
152,000
112,500
41.3
$34.5 million
$157.8 million

(0.0)%
0.1%
(5.7)%
(0.1)%
(0.3)%
(1.9)%
2.2%
(1.2)%
11.8%

(0.9)%
(7.9)%
(16.0)%
1.6%
2.1%
2.8%
1.5%
1.7%*
5.0%*

Oct-Dec
Oct-Dec

780
262

(6.9)%
(0.1)%

21.2%
60.9%

December
December

7,940
1,190

11.8%
10.7%

(2.6)%
(10.2)%

December
December
November

$125,000
$78,265
101.12

(0.8)%
(3.2)%
0.6%

(3.8)%
(6.7)%
(3.6)%

January
January
November
November

18,287
25,025
3.30 million
$5.48

(8.5)%
1.3%
0.1%
8.9%

(54.2)%
(41.6)%
4.0%
(8.8)%

1st Quarter 2012
December
Oct-Dec
3rd Quarter 2011
July 1, 2011
February

January
January
Nov-Jan

69.5
178.48
1.6%
$232.2 billion
6.48 million
1,317,035
896,002
145,493
154,896
12,149
51,773
56,722
39,748
1,142,242
39,965

20.9%
0.0%
(0.6)%
0.2%
N/A
(0.6)%
0.1%
(100.0)%
(5.2)%
(0.4)%
(5.4)%
(0.2)%
1.6%
0.3%
(0.5)%
(66) inmates

10.7%
1.7%
(0.3)%
4.3%
1.1%
(2.0)%
5.7%
(100.0)%
(34.6)%
2.8%
(45.2)%
2.0%
27.4%
(9.3)%
8.9%
(181) inmates

December
December

18,630
25,637

21
87

(965)
(456)

4th Quarter 2011
(1st Estimate)
January
December
Oct-Dec
January

$13.4 trillion

2.8%

1.6%

61.1
94.3
$4.36 billion
227.51

(5.7)%
0.4%
(4.9)%
0.2%

(5.7)%
2.8%
(4.6)%
2.9%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

JLBC Meeting
At its January 31, 2012 meeting, the Joint Legislative
Budget Committee considered the following issues:
Arizona Department of Administration – Review of the
Arizona Public Safety Communication Advisory

Commission – The Committee gave a favorable review
of ADOA’s FY 2011 annual report, which summarized the
commission’s progress for the statewide interoperability
design project.

JCCR Meeting
At its February 7, 2012 meeting, the Joint Committee on
Capital Review considered the following issues:

favorable review of a $4.7 million bond issuance to fund
renovations of 9 athletic facilities on the Tempe campus.

Arizona State University – Review of Recreation Facilities
Bond Projects – The Committee gave a favorable review
of a $56.9 million bond issuance to build a new Student
Services Recreation Facility at the Downtown Phoenix
campus and expanded recreation facility space at the
Tempe campus.

Arizona State University – Review of Student Housing
Bond Refinance – The Committee gave a favorable
review of a $17.1 million bond issuance to refinance a
student housing bond at the East campus.

Arizona State University – Review of Athletic Facilities
Renovations Bond Projects – The Committee gave a

Arizona Department of Administration – Consider
Recommending FY 2012 Rent Exemption – The
Committee recommended a technical rent exemption.

Summary of Recent Agency Reports
ADOA/Treasurer – Report on Reconciliation of General
Fund Balance for FY 2011 – Pursuant to A.R.S. § 41-172A
and A.R.S. § 35-131F 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
2011 year-end General Fund balances (including
dedicated subaccounts and excluding claims payable)
of $60.1 million and $59.4 million, respectively. After final
accounting, the unreserved General Fund balance was
$3.2 million. The difference leaves an unreconciled
General Fund balance of $704,000. ADOA and the
Treasurer report that they will continue to try to isolate the
source of the difference. (Eric Billings)
Department of Public Safety – Quarterly Report on the
GIITEM Fund – Pursuant to A.R.S. § 41-1724, the
Department of Public Safety (DPS) is required to report
quarterly on Gang and Immigration Intelligence Team
Enforcement Mission (GIITEM) Fund expenditures. During
the second quarter of FY 2012, DPS expended $572,600 in
the form of a grant to the Maricopa County Sheriff’s
Office. Year-to-date, DPS has expended $1.4 million of
the FY 2012 non-lapsing $2.6 million appropriation for
local law enforcement grants. Additionally, DPS spent or
encumbered $1.7 million of the FY 2011 non-lapsing $2.6
million appropriation. The remaining $919,600 in the FY
2011 and $1.2 million in the FY 2012 appropriations will be
available for use through FY 2012 and FY 2013,
respectively.
Additionally, the GIITEM Border Security and Law
Enforcement Subaccount received $710,523 in criminal
fine and fee revenues in the second quarter of FY 2012 or
a total of $748,323 year-to-date. These monies are being

used to reimburse the General Fund for a $1.0 million
appropriation made to the Pinal County Sheriff pursuant
to Laws 2011, Chapter 308. (Eric Billings)
Department of Revenue – Report on Temporary
Collectors – A FY 2012 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 December 2011, 56 temporary
collectors have been hired and trained at a cost of $1.6
million. Through December, DOR estimated that these
temporary collectors have generated approximately
$34.1 million in total funds, which resulted in $25.2 million
in additional revenue to the General Fund. It was
originally estimated that they would generate a total of
$52.9 million in additional General Fund revenue in
FY 2012. (Eric Billings)
School Facilities Board – Report on Energy Cost Savings
Contracts – Pursuant to Laws 2009, Chapter 101, the
School Facilities Board (SFB) is required to submit an
annual report outlining energy cost savings contracts
entered into by school districts pursuant to A.R.S. § 15213.01, including details on actual energy cost savings.
Over 2 fiscal years (FY 2010 and FY 2011), SFB reported
that school districts completed 64 projects which
produce $12.4 million in annual energy cost savings.
These projects include the installation of solar
photovoltaic systems along with upgrading the energy
efficiency of traditional facilities items such as HVAC units
and lighting. (Jack Brown)

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

January Spending
January 2012 spending of $649.7 million was $(124.0)
million less than December 2010 (See Table 6).
This decline was primarily due to changes in the timing of
a transfer for the Medicaid state match for the
Behavioral Health program.

In addition, Universities spending was $(11.3) 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.

Table 6
General Fund Spending ($ in Millions)

January 12
Agency
AHCCCS
Corrections
Economic
Security
Education
Health Services
Public Safety
School Facilities
Board
Universities
Leaseback
Debt Service
Other
Total

Change from
January 11

Year to
Date

YTD
Change
from FY 11

120.9
74.2
49.4

(4.4)
(13.3)
27.0

948.3
543.2
483.6

58.0
8.3
27.6

260.5
11.2
2.4
30.6

(43.9)
(92.7)
0.1
30.4

2,480.4
443.0
37.0
163.5

(41.1)
102.5
5.1
130.1

47.7
0.0

(11.3)
0.0

513.0
49.1

(93.0)
3.0

52.8
649.7

(15.7)
(124.0)

315.7
5,976.8

(93.1)
107.4

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 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
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 of 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

General Fund Spending
($ in Thousands)
Change from
January 12
January 11
680.4
(51.9)
62.8
(97.9)
659.6
478.4
120,898.6
(4,356.5)
1,125.7
27.9
55.5
(38.4)
49.1
2,625.0
17,144.3
40.1
74,203.1
1,622.8
49,406.1
260,513.9
713.3
11.2
21.9
52.3
179.3
221.2
245.7
80.9
693.8
11,217.4
200.3
96.8
607.0
0.1
403.0
1,978.1
9,085.1
1,079.2
4,166.2
118.2
4.7
1,333.8
991.0

8.1
2,513.1
(15,962.2)
7.5
(13,297.6)
(479.4)
26,994.4
(43,851.9)
(1,149.0)
(12.6)
(60.1)
3.9
17.6
229.2
(106.3)
(12.9)
(37.4)
148.8
(92,710.8)
9.7
59.5
607.0
(3.3)
38.3
1,564.3
(383.8)
(363.1)
718.7
(129.4)
(0.3)
254.0
63.6

Year-to-Date
10,698.7
49,050.7
493.6
4,839.0
948,255.8
10,201.7
355.3
443.0
18,375.0
51,433.0
317.8
543,247.6
12,745.2
483,625.5
2,480,438.7
4,104.6
7,000.0
104.6
389.0
490.2
1,631.9
1,127.0
3,225.5
540.1
(3.1)
3,681.8
442,957.5
2,035.1
429.0
2,560.9
27.9
3,166.8
8,914.5
45,913.5
8,194.6
28,594.0
700.7
33.0
10,375.4
7,079.1

YTD Change from
FY 11
(2,757.6)
(3,016.2)
(126.9)
(641.1)
57,994.3
(1,479.1)
(68.8)
(43.6)
15,668.7
(47,886.8)
(18.2)
8,251.4
(1,945.1)
27,615.3
(41,056.8)
(3,207.6)
(0.6)
(15.8)
(43.5)
(86.1)
(162.9)
(275.2)
1,464.1
137.1
(311.2)
(2,046.0)
102,464.7
(2,386.8)
52.8
2,560.9
(3.4)
(592.8)
(5,741.6)
(502.1)
(1,636.6)
(6,479.1)
(1,497.5)
(13.4)
(762.0)
(568.5)

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – FEBRUARY 2012

Agency
Joint Legislative Budget Comm.
Legislative Council
Senate
Board of Medical Student Loans
Mine Inspector
Department of Mines & Mineral Resources
Navigable Stream Adjudication Comm.
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

January 12
138.8
269.8
753.6
79.8
6.8
398.9
698.4
2,350.7
30.5
239.0
148.0
1,634.4
30,566.5
731.1
28.4
7.1
87.4
5,191.2
19,169.4
6,431.6
16,872.6
1,098.6
(287.8)
84.0
403.6
649,719.9

Change from
January 11
24.8
(32.2)
191.3
5.5
(20.9)
0.6
0.0
257.7
698.4
295.9
(102.7)
(85.7)
(1.2)
19.8
(4,251.8)
30,428.3
111.3
13.5
1.5
(94.6)

Year-to-Date
1,155.0
3,266.6
4,859.9
20.5
669.1
96.9
1,507.3
1,396.8
36,975.6
2,701.0
989.0
1,465.1
30,368.9
163,521.0
5,764.8
164.3
24.2
1,949.9

2,310.2
(6,231.5)
(2,120.3)
(5,262.5)
612.3
(1,748.8)
(25.5)
364.7
(124,002.9)

15,706.8
224,761.0
75,516.2
197,037.8
4,994.2
2,811.9
627.5
647.0
5,976,792.1

YTD Change from
FY 11
(187.4)
213.5
(506.0)
(323.3)
(71.8)
(793.1)
0.1
(20,000.0)
690.1
786.4
5,111.9
(600.4)
(33.3)
(8.3)
(448.7)
4,219.1
130,129.1
(4,972.0)
(3.3)
(0.8)
156.6
2,252.3
(43,622.8)
(14,840.9)
(36,836.5)
(2,054.1)
(1,785.3)
(64.1)
204.4
107,447.5