JLBC - Monthly Fiscal Highlights

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

www.azleg.gov/jlbc.htm

“In total, year-todate General
Fund collections
are $69.5 million
above the
[budget]
forecast.”

May 2012

Summary
April collections were substantially higher than
the prior year, as the state experienced a
significant increase in Individual Income Tax
(IIT) payments. April General Fund revenues
totaled $934.6 million. Excluding one-time
adjustments, these base collections were
14.8% above last year. Overall April
collections were $53.6 million above the
January Baseline forecast.
Year-to-date, base revenues are 7.7% higher
than last year. In total, year-to-date General
Fund collections are $69.5 million above the
January forecast. The recently enacted
budget assumed FY 2012 collections at the
level of the January forecast.
In comparison to monthly revenues of
$934.6 million, April 2012 General Fund
spending was $476.9 million, or $(144.7) million
less than last year. Fiscal year-to-date,
General Fund revenues of $7.3 billion have
been offset by $7.2 billion in spending.
April Individual Income Taxes
Arizona's April Individual Income Tax
collections were 23.1% higher than April 2011.
Withholding and payments both grew
strongly, while refunds were virtually flat.

taken within 2 years of acquisition, the 20102011 stock market recovery could be fueling
the Arizona growth.
In comparison to Arizona's 23.1% growth in
April collections, nationwide federal individual
income tax growth was 14.8%. This disparity
suggests that there may be Arizona-specific
factors affecting IIT payments. The underlying
causes of the Arizona growth may become
clearer in the next several months as more
detailed tax information becomes available.
Even though the processing “season” for tax
returns typically lasts until June, a significant
portion of payments and refunds have
already been processed by the end of April.
Given this schedule and preliminary May
revenue data, it appears that at least some of
the current forecast overage will remain at
the end of FY 2012.
FY 2013 Budget Enactment
The Legislature passed the FY 2013 budget,
which was approved by the Governor on
May 7th. For a complete list of spending
changes, long-term projections, and statutory
changes associated with the budget, please
see the JLBC Budget Proposal Summary.

Historically, stock market capital gains have
played a large role when April IIT revenues
grow more quickly than anticipated. This
factor may help explain at least some of the
April 2012 growth. Over the past 2 years, the
S&P 500 has increased by as much as 56%.
Since approximately 40% of capital gains are

Table of Contents
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
May 18, 2012.

Summary

Summary of Recent Agency Reports

• April Individual Income Taxes ........................... 1

• ACA – Healthy Forests Program Report ..........7

• FY 2013 Budget Enactment............................... 1

• ADOA – Federal Financial Payment................7

April Revenues ........................................................ 2

• DPS – GITEM Quaterly Report............................7

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

April Spending.........................................................8

2 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

April Revenues
Table 1

General Fund Revenues ($ in Millions)

April
Year-to-Date

FY 2012
Collections
$ 934.6
$ 7,325.5

Sales Tax collections were $407.2 million, or
5.0% above April 2011 and $5.6 million above
the January JLBC Baseline forecast for the
month. Excluding the $82.4 million from the
temporary 1-cent sales tax increase,
collections were $324.8 million, or 4.5% above
April 2011. The temporary 1-cent continues to
grow more than the base tax because of
certain exemptions.
Year-to-date, base sales tax collections remain
at 5.1% above the prior year and are $3.9
million above forecast.

“Year-to-date,
[Individual

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

Sales Tax Growth Rates
Compared to Prior Year

Income Tax]
revenues have
grown 9.3%
and are $40.8
million above
forecast.”

Retail
Contracting
Utilities
Use
Restaurant & Bar

April
2.0%
0.8%
1.9%
28.8%
8.3%

YTD
6.0%
7.8%
0.9%
6.6%
7.8%

Retail and contracting together account for
about 60% of all sales tax revenues. April
retail, which reflects March sales, grew by
2.0%. As we have noted in prior reports, the
retail category began to grow in December
2010.
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 in
the last five months of the prior fiscal year,
particularly the double digit growth rates in
April through June of 2011. Contracting
collections have been more volatile than
retail, and increased by only 0.8% this month.
Individual Income Tax net revenues were
$376.8 million in April, or $70.8 million greater
than the prior year. Collections were $54.8
million above the JLBC Baseline forecast. Yearto-date, revenues have grown 9.3% and are
$40.8 million above forecast.

Difference From
January Forecast
$ 53.6
$ 69.5

Difference
From FY 2011
$ 107.6
$ 668.9

The April increase relative to the forecast was
the result of greater than expected
withholding tax collections, as well as higher
than anticipated final payments. Withholding
was $22.2 million over forecast, and payments
were $33.4 million over.
As indicated in Table 3, withholding increased
by 11.8% in April for a year-to-date increase of
3.9%. The large withholding gain this month is
related to an extra main processing day in
April compared to the prior year.
Total Payments grew by 11.2% in April for a
year-to-date increase of 19.8%.
Refund were slightly greater compared to
April of last year, and year-to-date are up
3.3%.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

April
11.8%

YTD
3.9%

11.2%
0.7%

19.8%
3.3%

Corporate Income Tax net collections were
$90.1 million in April, which is $6.2 million above
the prior year. Collections were $(8.4) million
below the JLBC Baseline forecast. Year-todate, collections have grown 28.2% and are
$33.7 million above forecast.
The Lottery Commission reports that April
ticket sales were $54.6 million, which is $3.0
million, or 5.9%, above sales in the prior year.
Year-to-date ticket sales are $539.3 million,
which is 11.0% above last year’s sales.
Non-General Fund
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 $107.8
million in April were down $(2.9) million, or
(2.6)%, compared to April of last year. Yearto-date revenues are up 0.2% compared to
the prior year.

3 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012
Table 4

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

FY 2012 YTD (Ten Months)

Change From
April 2011

Actual
April 2012

Percent

Amount

Change from
January Forecast

Actual

Percent

Amount

April 2012

April 2011
Amount

January Forecast
Percent

Percent

Amount

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

$324,812,322

14,001,072

4.5 %

1,149,822

0.4 %

$3,040,868,875

$146,299,817

$82,418,332

5,309,786

6.9

4,421,592

5.7

758,688,622

67,014,634

376,806,890

70,766,022

23.1

54,761,661

17.0

2,526,079,916

215,687,464

9.3

40,846,634

1.6

90,149,454

6,244,711

7.4

(8,397,595)

(8.5)

523,587,876

115,164,506

28.2

33,740,734

6.9

(90,723)

(8.9)

12,204,908

(1,551,572)

(11.3)

(39,728)

(0.3)

0.0

20,526,607

(233,808)

(1.1)

(411,327)

(2.0)

929,089
1,957,338
2,821,830
42,003,825
0
71,038

11,775

1.3

(775,408)

(28.4)

(99,567)

(3.4)

974,465
0
(5,106)

$921,970,118

$96,427,750

2.4
-(6.7)
11.7 %

0
0
(66,054)
0
(15,337)
$51,763,366

5.1 %

$3,934,753

0.1 %

9.7

11,255,071

1.5

0.0

26,304,948

1,420,560

5.7

(0.2)

290,966,969

(23,348,707)

(7.4)

--

200,825

(236,547)

(54.1)

0

0.0

(17.8)

1,620,469

(442,682)

(21.5)

186,446

13.0

5.9 %

7.8 %

329,111
(7,672,283)

$7,201,050,016

$519,773,665

$82,169,412

20.2

49,922,260

7,148,070

16.7

(7,156,760)

(3.6)

23,153,940

235,417

1.0

(839,988)

--

4,561,285

2,671,706

141.4

1.3
(2.6)

1.2 %

Other Revenue
Lottery

9,639,340

2,318,600

31.7

License, Fees and Permits

2,249,557

534,096

31.1

Interest

2,456,344

2,455,066

Sales and Services

1,799,690

343,202

Other Miscellaneous

3,278,519

3,779,750

17,869,682

17,869,682

211,259

91,224

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

-23.6
--76.0

1,619,926
(84,132)
2,446,344
(984,891)
2,388,580
0
(3,549,154)

(35.4)

22,309,603

268.4

28,241,675

(955,982)
9,508,668

2,429,435

(12.5)
(3.5)
114.0

(4.1)

(1,918,839)

(7.9)

50.8

4,854,361

20.8

0.0

17,869,682

(9,276,624)

(34.2)

(94.4)

12,907,175

(2,312,464)

(15.2)

37,504,391

27,391,620

270.9 %

1,836,673

5.1 %

158,965,621

7,018,792

4.6 %

$959,474,509

$123,819,370

14.8 %

$53,600,039

5.9 %

$7,360,015,636

$526,792,457

7.7 %

0
(10,084,008)
(12,715,798)
$69,453,614

0.0
(43.9)
(7.4) %
1.0 %

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

10,497,532

(20,392,931)

0
(24,871,088)
$934,603,421

0
(16,261,008)
$107,558,362

--

0

0.0

(353,686,200)

41,319,230

(66.0)

0

0.0

306,259,907

87,924,099

--

0

--

12,867,428

12,867,428

188.9 %

0

0.0 %

(34,558,865)

13.0 %

$53,600,039

6.1 %

(3.5) %

-40.3

0

0.0

0

0.0

--

0

142,110,757

-- %

0

(0.0) %

0.0

$7,325,456,772

$668,903,215

10.0 %

$69,453,614

1.0 %

$1,009,762,191

$1,907,599

0.2 %

Non-General Funds
Highway User Revenue Fund

$107,830,689

($2,884,622)

(2.6) %

($3,881,060)

($7,163,092)

(0.7) %

__________
* Total April collections including the temporary 1¢ increase approved by the voters in May 2010 were $407.2 million. This amount is $19.3 million, or 5.0%, above April 2011 and $5.6 million, or 1.4%, above forecast. Year-todate, total collections including the 1¢ increase were $3,799.6 million. This amount is $213.3 million, or 5.9%, above April 2011 and $15.2 million above forecast.

4 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

Economic Indicators
NATIONAL

“The leveling off
of prices in April
was mainly due
to a (2.6)%
decline in the
price of
gasoline.”

According to the U.S. Department of
Commerce Bureau of Economic Analysis, the
U.S. Real Gross Domestic Product for the first
quarter of 2012 increased at an annual rate of
2.2%. This growth represents a deceleration
however, from the 3.0% rate estimated for the
fourth quarter of 2011. The slow-down was
mainly due to reduced non-residential fixed
investment and slowing inventory investment,
relative to the fourth quarter of 2011. Federal
spending also decreased significantly for a
second consecutive quarter.
The Conference Board’s U.S. Leading
Economic Index shrank by (0.1)% in April from
March, but was 1.9% above the April 2011
reading. The decline in April was the first
monthly drop in the index since September
2011 and was primarily due to a decrease in
building permits.
The Conference Board’s U.S. Consumer
Confidence Index declined by (0.4)% in April.
The latest drop was caused by lowered
optimism of job prospects and scaled back
expectations of making large purchases and
investments, in the short term. Though April’s
reading is the index’s second consecutive
monthly decrease, the size of the decline was
modest and the reading is still 4.8% above the
April 2011 amount.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), were unchanged
in April and increased 2.3% for the year. The
leveling off of prices in April was mainly due to
a (2.6)% decline in the price of gasoline. Core
inflation, which excludes energy and food
prices, increased by 0.2% in April and 2.3% over
the past year.
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.
In March, 48 out of 50 states had increases in
their coincident indexes. Arizona’s coincident
index increased by 0.4% compared to the prior

month. Year-over-year, the Arizona index is
2.7% above last year. While this is a significant
improvement, Arizona’s index is still (11.7)%
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 4.6% over the next 6 months.
This is higher than the 4.2% growth projection in
January, and higher than the 2.4% projection in
March 2011.
Housing
The number of Maricopa County pending
foreclosures increased slightly from 18,029 in
March to 18,056 in April. This represents the
second monthly increase in this measure after
15 consecutive months of declines in pending
foreclosures. The April total, however, is
substantially below the peak in December
2009 (51,466). See Tracking Arizona’s Recovery
for additional historical information.
The total housing inventory in the Greater
Phoenix area decreased from 34,515 in April
2011 to 20,676 in April 2012, a (40.1)%
decrease. In the Metropolitan Phoenix area,
the median price of a single family home was
$134,900 in March. This represents an increase
of 8.4% from February, and a 4.7% increase
from March of last year.
Another measure of the health of the Arizona
real estate market is permitting activity.
Single-family housing permits increased in
March 2012. For the 3-month period through
March, a total of 1,112 single-family building
permits had been issued statewide, a 38.9%
increase from last year. However, this is still far
below a more normal 3-month average of
3,000 to 4,000 permits. See Tracking Arizona’s
Recovery for additional historical information.

5 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

Economic Indicators

(Continued)

Although the performance of the single-family housing
sector has improved recently, multi-family housing
continues to be the strongest sector. For the 3-month
period ending in March, a total of 475 multi-family
building permits had been issued in the state, a 140.7%
increase from the prior year. Even with this growth,
multi-family permitting activity still remains (71.8)% below
the peak of activity in April 2007.
Employment
The state added 9,300 nonfarm jobs in April over March.
This monthly increase of 0.4% was twice the average
growth rate for April in the prior 10 years. The major
sectors leading the job gains in April were professional
and business services (+3,600), trade, transportation, and
utilities (+2,800), and construction (+1,900). Additionally,
April marked the third consecutive month with monthover-month job gains.
Year over year, employers in the state added 46,000, or
1.9%, net new jobs in April. Most major sectors
contributed to this net increase in nonfarm employment.
The construction industry alone can be credited for
more than 15% of these gains, or 7,200 net new jobs.
Year over year, construction employment is up by 6.6%.
While this increase is impressive, it is worth noting that
small net gains will result in large percentage increases
since the construction industry lost more jobs than any
other sector of the economy during the last recession.
In spite of 9 consecutive months with year-over-year job
gains, the construction sector remains more than 50%
below peak employment in July 2006.
In spite of the recent improvement, the state would
need to add another 250,000 jobs to return to prerecession employment levels. At the current job growth
rate, the Arizona economy remains several years away
from regaining all the job losses incurred during the last
recession.
The latest unemployment figures released by the Arizona
Department of Administration (ADOA) showed that the
state’s seasonally adjusted jobless rate fell from 8.6% in
March to 8.2% in April. This was also the third straight
month with a falling unemployment rate. A closer look
at the survey data, however, indicates that a little more
than half of the reduction in unemployment was
attributable to people exiting the labor force as
opposed to gaining new employment. Many of these
individuals were likely discouraged by the prospect of
finding a new job and therefore opted to abandon their
job search. This suggests that the unemployment rate
could increase somewhat when these discouraged
workers decide to resume their job search.
See Tracking Arizona’s Recovery for additional historical

information.
State Agency Data
At the beginning of May, total AHCCCS caseloads
equaled 1.29 million members, a (0.5)% decrease from
the prior month. Overall AHCCCS caseloads are
currently (4.5)% below May 2011 levels.
The traditional AHCCCS population, which consists
primarily of lower-income children and their parents,
decreased (0.1)% from April and increased 4.0% 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 (100,879) since July to
123,613. Of the decline, (11,050) is attributed to
members who were transferred to the SSI program. As a
whole, the Proposition 204 program has declined (2.7)%
compared to the prior month, and (26.8)% from the prior
year.
Enrollment for KidsCare, which provides coverage for
children with incomes above those in the traditional
population, has declined since an enrollment freeze was
implemented in January 2010. Enrollment declined
(4.7)% compared to the prior month and (44.6)% from
the prior year. Beginning on May 1, 2012, AHCCCS
began a new program, entitled KidsCare II. KidsCare II
provides coverage for children up to 175% of the
Federal Poverty. The state match is provided by
voluntary payments from political subdivisions. At the
beginning of May, 352 children were enrolled in
KidsCare II.
There were 39,467 TANF recipients in the state in April, a
monthly caseload increase of 0.6%. Year-over-year, the
number of TANF recipients has declined by (5.5)%. 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 April, there
were a total 1.1 million food stamp recipients in the
state, a (0.6)% decrease over the prior month.
Compared to the same month last year, food stamp
participation was up by 6.2%. The number of food stamp
recipients began increasing steadily in July 2007, after
several years in the 550,000 to 575,000 range.

6 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

Economic Indicators

(Continued)

The 3-month average count of the Department of
Correction’s (ADC) inmate population increased to 39,940
inmates between February 2012 and April 2012. Relative
to the prior 3-month period, the population has increased
by 22 inmates. Compared to a year ago, the population
has declined by (191) inmates.
Table 5

ECONOMIC INDICATORS
Indicator
Arizona
- Unemployment Rate (SA)
- Initial Unemployment Insurance Claims
- Unemployment Insurance Recipients
- 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 Home Sales
Single-Family
Townhouse/Condominium
- Greater Phoenix Median 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
Kids Care II
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

April
April
April
April
April
April
March
Feb-Apr
Feb-Apr

8.2%
29,208
57,118
2.47 million
150,300
116,800
41.2
$30.9 million
$150.0 million

(0.4)%
42.3%
9.1%
0.4%
0.1%
1.7%
(0.2)%
(3.8)%
(5.7)%

(1.4)%
(2.1)%
(12.7)%
1.9%
0.9%
6.6%
1.7%
2.7%*
4.7%*

Jan-Mar
Jan-Mar

1,112
475

14.6%
(5.1)%

38.9%
140.7%

March
March

9,632
1,640

17.7%
15.2%

(12.9)%
(8.1)%

March
March
February

$134,900
$81,000
104.12

8.4%
4.5%
1.2%

4.7%
(4.7)%
3.3%

April
April
March
February

18,056
20,676
3.83 million
$5.35

0.1%
(5.4)%
21.4%
3.9%

(43.9)%
(40.1)%
1.7%
(14.1)%

2nd Quarter 2012
March
Jan-Mar
4th Quarter 2011
July 1, 2011
May

April
April
Feb - April

68.6
181.49
4.6%
$235.5 billion
6.48 million
1,286,796
888,046
123,613
152,142
10,614
352
52,213
59,816
39,467
1,133,042
39,940

(1.3)%
0.4%
0.4%
0.9%
N/A
(0.5)%
(0.1)%
(5.5)%
(0.1)%
(4.7)%
0.2%
2.1%
0.6%
(0.6)%
22 inmates

32.2%
2.7%
2.2%
4.5%
1.1%
(4.5)%
4.0%
(100.0)%
(44.3)%
0.6%
(44.6)%
2.2%
32.6%
(5.5)%
6.2%
(191) inmates

February
February

18,368
25,481

(49)
(149)

(709)
(585)

1st Quarter 2012
(1st Estimate)
April
April
Dec-Feb
April

$13.5 trillion

2.2%

2.1%

69.2
95.5
$4.35 billion
229.2

(0.4)%
(0.1)%
(1.7)%
0.0%

4.8%
1.9%
(5.8)%
2.3%

7 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

Summary of Recent Agency Reports
Arizona Commerce Authority – Annual Report on the
Healthy Forest Enterprise Incentives Program – Pursuant to
A.R.S. § 41-1516 I the Arizona Commerce Authority is
required to report on the Healthy Forest Enterprise
Incentives Program regarding the: 1) quantity and
measured weight of qualifying forest products reported;
2) number of new full-time employees hired in qualified
employment positions; and 3) number of all full-time
employees employed in qualified employment positions.
In calendar year 2011 the total weight of qualified
harvest, processed, or transported forest products was
355,818 tons; however, none of the companies
participated in the tax credit portion of the program.
The Healthy Forest Enterprise Incentives Program allows
businesses primarily engaged in the harvesting, initial
processing, or transporting of forest products in Arizona to
exempt qualified purchases from use and transaction
privilege taxes, a 50% reduction in the use fuel tax, a
reduction in the assessment ratio of personal and real
property from 25% to 5%, and an income tax credit of up
to $3,000 per employee on new jobs created.
(Eric Billings)
Arizona Department of Administration – Report on FY 2010
Federal Financial Participation Repayment – Pursuant to
the FY 2013 General Appropriation Act (Laws 2012,
Chapter 294, Section 107), $10.4 million is appropriated to
the Department of Administration (ADOA) from the Risk
Management Revolving Fund in FY 2012 for the
settlement of debts incurred due to disallowed fund
transfers and expenditures of federal participation
monies in FY 2010 and FY 2011. Prior to expending these
monies, the bill requires ADOA to report to the Joint
Legislative Budget Committee regarding the final
agreement with the federal government.
ADOA reports that the current total repayment amount
to date is $5.9 million. Disallowed fund transfers to the
General Fund constitute $5 million of the total
repayment. The amount owed to the federal
government from disallowed expenditures associated
with the Information Technology and Attorney General
pro rata charges total $290,000 and $619,000,
respectively. Subsequent to submitting the report, ADOA
made the FY 2010 repayment in order meet the May 9
deadline established by the federal government. The
final agreement for the FY 2011 repayment has yet to be
reached. (Brett Searle)
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 third quarter of FY 2012, DPS expended $572,700 in
GIITEM Immigration Enforcement Grant monies. Year-todate, DPS has expended $1.9 million of the FY 2012 nonlapsing $2.6 million appropriation for local law
enforcement grants. Of this amount, $1.6 million was
provided to the Maricopa County Sheriff’s Office and the
remaining $326,500 was granted to the Pinal County
Sheriff’s Office per statute. Additionally, to date, DPS
spent or encumbered $2.0 million of the FY 2011 nonlapsing $2.6 million appropriation, including $356,800 in
the third quarter. The remaining $562,800 in the FY 2011
and $677,800 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 $471,300 in criminal
fine and fee revenues in the third quarter of FY 2012, for a
total of $892,000 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. The GIITEM Border Security
and Law Enforcement Subaccount also received
$232,800 in Indigent Defense Fund revenue in the third
quarter and $598,200 year-to-date, of which, $315,500
was used for a grant to the Pima County Sheriff’s Office
including $98,212 in the third quarter. (Eric Billings)

8 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

April Spending
April 2012 General Fund spending was $476.9 million.
April expenditures were less than the prior year primarily
due to the timing of education formula payments.

•
•

FY 2012 Spending
April 2012 spending of $476.9 million was $(144.7) million
less than May 2011 (See Table 6).

•

The Department of Education spent $241.1 million, or
$(98.5) million less than the previous year due to the
timing of formula payments.
The Community College’s spending was $(16.0)
million less than the prior year, as the system’s
quarterly state aid payment declined due to
reductions enacted in the FY 2012 budget.
In April, Universities spending was $(12.0) million less
than the prior year. The universities received a $198
million lump sum reduction in FY 2012, which is spread
out throughout the fiscal year.

Table 6

General Fund Spending ($ in Millions)
Change
from
April 11

Year to
Date

7.3
80.4
36.4

(20.9)
(4.2)
11.9

1,196.6
757.7
532.5

24.6
21.8
15.4

241.1
10.6
2.8
0.1

(98.5)
0.1
0.1
(0.1)

2,903.6
473.2
42.4
163.7

(116.5)
61.0
5.1
96.4

44.1
-

(12.0)
-

641.1
49.1

(136.4)
3.0

54.1
476.9

(21.1)
(144.7)

424.6
7,184.5

(105.9)
(131.5)

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

YTD
Change
from FY 11

9 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 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
Gov. - OSPB
Department of Health Services
Arizona Historical Society
Prescott Historical Society of AZ
Independent Redistricting Comm.
Commission on Indian Affairs
Department of Insurance
Judiciary
Supreme Court/Superior Court
Court of Appeals
Department of Juvenile Corrections
State Land Department
Law Enforcement Merit System
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.

General Fund Spending
($ in Thousands)
Change from
April 12
April 11
715.0
(888.4)
64.8
(71.6)
634.0
110.6
7,305.2
(20,906.1)
1,161.3
73.2
52.9
(17.8)
55.3
2,625.0
17,144.3
32.0
80,418.3
1,829.0
36,387.5
241,136.9
959.9
13.7
24.1
67.9
206.2
216.8
240.4
88.0
419.5
122.3
10,562.6
199.3
40.5
173.4
9.3
406.2
12,304.3
985.7
3,072.3
117.7
4.9
1,318.0
998.7
141.7

10.3
2,503.7
(15,962.3)
(12.0)
(4,208.9)
(1,862.9)
11,944.4
(98,505.9)
425.6
5.1
2.1
19.8
53.0
109.8
(1,310.0)
59.6
(26.1)
26.1
(14.0)
324.6
30.7
(11.0)
169.7
5.5
50.0
1,280.8
(266.1)
67.3
(385.2)
(0.4)
226.3
140.1
26.6

Year-to-Date
12,721.0
49,050.7
682.1
6,384.3
1,196,608.5
13,576.3
516.5
600.9
26,250.0
68,577.3
419.3
757,686.9
17,202.7
532,478.4
2,903,648.4
5,750.8
7,000.0
143.6
455.5
660.6
2,184.9
1,505.9
3,842.7
736.4
(3.1)
3,911.6
1,476.8
473,161.9
2,602.1
558.3
3,620.7
44.5
4,256.1
79,906.1
11,089.9
37,730.4
861.6
47.3
14,318.0
10,084.3
1,613.5

YTD Change from
FY 11
(5,067.4)
(3,016.2)
(119.6)
(728.0)
24,615.9
(306.1)
(82.2)
3.7
23,232.1
(63,849.0)
(92.0)
21,814.0
(2,579.6)
15,432.8
(116,530.5)
(3,238.6)
(0.6)
(3.6)
(34.4)
(69.8)
(68.0)
(243.2)
296.1
166.8
(410.4)
(1,345.8)
(90.0)
60,979.7
(2,337.8)
(57.0)
3,616.3
(5.9)
(507.0)
(2,932.5)
(1,467.6)
(5,685.2)
(2,114.9)
(12.9)
(113.0)
(70.8)
(104.7)

10 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2012

Agency
Legislative Council
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

April 12
330.0
786.3
104.1
7.9
5.7
2,751.0
28.9
219.5
157.6
1,847.1
80.3
970.8
20.5
7.2
1,754.2
495.8
20,335.7
6,431.6
16,872.6
1,011.6
148.0
98.0
212.2
476,931.5

Change from
April 11
42.6
155.9
22.3
2.0
(80.7)
(609.9)
487.9
(115.6)
(63.7)
26.5
(4,959.7)
(140.2)
(777.1)
4.9
(6.7)
462.9

Year-to-Date
4,230.2
6,934.1
41.1
931.1
118.1
1,582.8
1,396.8
42,441.5
2,800.9
1,297.1
1,922.1
37,080.1
163,729.9
7,975.1
213.3
44.9
3,866.3

415.0
(5,065.2)
(2,120.3)
(5,262.5)
(149.5)
(214.0)
23.7
(24.1)
(144,729.3)

16,399.1
282,269.1
94,811.0
247,655.5
7,101.5
3,873.0
887.4
891.6
7,184,457.3

YTD Change from
FY 11
291.6
(267.7)
(319.7)
(13.9)
(815.8)
5.5
(20,000.0)
315.3
176.0
5,108.0
(884.4)
(17.4)
(8.3)
(417.6)
(1,038.1)
96,415.4
(5,885.0)
(2.1)
(6.5)
572.7
(237.4)
(62,317.4)
(21,201.8)
(52,623.9)
(3,359.1)
(1,678.9)
(20.1)
(101.4)
(131,459.0)