JLBC - Monthly Fiscal Highlights

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

Summary
May General Fund collections declined (9.2)%
compared to the prior year, due to a significant
one-time Corporate Income Tax refund and a
technical delay in the receipt of federal funds.
May General Fund revenues totaled
$664.0 million. Overall May collections were
$(9.2) million below the budget forecast.

www.azleg.gov/jlbc.htm

“In total, year-todate General
Fund collections
through May are
$60.2 million

June 2012

Year-to-date, base revenues are 6.0% higher
than last year. In total, year-to-date General
Fund collections through May are $60.2 million
above the budget forecast. In terms of the
fiscal year overall, June will play a significant
role in whether year-to-date collections remain
above forecast, as the state will be processing
quarterly tax payments for both Individual and
Corporate Income taxes.
In comparison to monthly revenues of
$664.0 million, May 2012 General Fund spending
was $525.6 million, or $3.4 million above last
year. Fiscal year-to-date, General Fund
revenues of $8.0 billion have been offset by
$7.7 billion in spending.

May Revenue Results
In May, the Department of Revenue issued a
$24.3 million Corporate Income Tax refund to
one business claiming a tax credit. Due to
confidentiality statutes, DOR was unable to
provide more information.
This refund demonstrates the challenge of
forecasting Corporate Income Taxes. In
particular, the tax credit carry forward provisions
allow a company to claim some credits for up
to 20 years after they were earned. A business
usually needs to have sufficient tax liability
before being able to use a credit to offset that
obligation. The latest available estimate of
overall Corporate Income Tax carry forward
credits is $266 million.
The other notable May revenue issue was the
$(60.4) million decline in AHCCCS
“disproportionate share hospital” payments.
This loss was the result of a technical timing
issue, as the annual payment occurred entirely
during May in the prior year while the current
year’s payment is being distributed across
several months.

above the
budget
forecast.”

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

Summary ..................................................................1
May Revenues.........................................................2

• EEC – Budget Stabilization Fund............................. 7
• DES – Cash Assistance ....................................... 7
• DES – Transfer of TANF to SSBG ......................... 7

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

• Parks Board – Reservation Surcharge Fund ........ 7

Summary of Recent Agency Reports

May Spending.........................................................8

• ADOA – Surplus Materials Revolving Fund......7

2 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

May Revenues
Table 1

General Fund Revenues ($ in Millions)

May
Year-to-Date

FY 2012
Collections
$ 664.0
$ 7,989.3

Sales Tax collections were $384.2 million, or
7.5% above May 2011 and $14.1 million above
the budget forecast for the month. Excluding
the $77.3 million from the temporary 1-cent
sales tax increase, collections were $306.9
million, or 7.6% above May 2011.
“Net
[Corporate
Income Tax]
collections
were

year’s total,
and below the
current year
forecast, due
to a large
unanticipated
single
corporate
refund during
the month.”

Difference
From FY 2011
$ (66.5)
$ 602.4

forecast, and payments were $(2.7) million
below. Refunds were $8.9 million less than
expected for the month.

Year-to-date, base sales tax collections are
5.3% above the prior year and are $14.5 million
above forecast.

As indicated in Table 3, withholding
decreased by (2.4)% in May, compared to
the April increase of almost 12%. The weaker
May compared to a strong April may simply
reflect timing issues in the collection of the
withholding tax.

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

Total payments were $17.5 million in May,
compared to $19.6 million in May of last year.

Table 2

Refunds were equal to May of last year, and
year-to-date are up 3.1%.

Sales Tax Growth Rates
Compared to Prior Year

significantly
below last

Difference From
Budget Forecast
$ (9.2)
$ 60.2

Retail
Contracting
Utilities
Use
Restaurant & Bar

May
2.6%
4.2%
3.2%
11.2%
6.3%

Table 3

YTD
5.7%
7.4%
1.1%
7.0%
7.7%

Retail and contracting together account for
about 60% of all sales tax revenues. May
retail, which reflects April sales, grew by 2.6%.
As we have noted in prior reports, the retail
category began to grow in December 2010.
In recent months, retail growth has continued,
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 4.2% this month.
Individual Income Tax net revenues were
$231.8 million in May, or $(9.0) million less than
the prior year. Collections were $(8.0) million
below the budget forecast. Year-to-date,
revenues have grown 8.1% and are $32.8
million above forecast.
The May decline relative to the forecast was
the result of less than expected withholding
tax collections and final payments, partially
offset by less than anticipated refunds.
Withholding was $(13.7) million below

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

May
(2.4)%

YTD
3.3%

(10.6)%
0.0%

19.0%
3.1%

Corporate Income Tax net collections were
$10.1 million in May, which is $(32.4) million
below the prior year. Collections were $(19.6)
million below the forecast. Net collections
were significantly below last year’s total, and
below the current year forecast, due to a large
unanticipated single corporate refund during
the month. Year-to-date, collections have
grown 18.4% and are $14.1 million above
forecast.
The Lottery Commission reports that May
ticket sales were $55.6 million, which is $4.2
million, or 8.2%, above sales in the prior year.
Year-to-date ticket sales are $594.9 million,
which is 10.7% 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 $95.5
million in May were up $0.4 million, or 0.4%,
compared to May of last year. Year-to-date
revenues continue at 0.2% greater than the
prior year.

3 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012
Table 4

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

FY 2012 YTD (Eleven Months)

Change From
Actual

May 2011

May 2012

Amount

Change from
Actual

January Forecast
Percent

Amount

Percent

May 2012

May 2011
Amount

January Forecast
Percent

Amount

Percent

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

$306,889,871

21,703,160

$77,280,578

4,976,786

6.9

7.6 %

10,585,030
3,466,810

4.7

3.6 %

$3,347,758,746

$168,002,977

835,969,200

71,991,420

231,767,419

(8,987,643)

(3.7)

(8,028,522)

5.3 %
9.4

$14,519,783
14,721,881

0.4 %
1.8

(3.3)

2,757,847,335

206,699,821

8.1

32,818,112

1.2

10,052,572

(32,355,542)

(76.3)

(19,634,994)

(66.1)

533,640,448

82,808,964

18.4

14,105,740

2.7

Property

1,305,117

(1,090,935)

(45.5)

(1,588,368)

(54.9)

13,510,025

(2,642,507)

(16.4)

(1,628,096)

(10.8)

Luxury - Tobacco

1,741,242

(392,453)

(18.4)

0

0.0

22,421,222

(472,888)

(2.1)

(257,954)

(1.1)

2,219,465

(367,689)

(14.2)

0

0.0

28,294,366

822,824

3.0

99,064

0.4

8,378,978

30.6

326,730,064

(14,949,131)

(4.4)

706,695

0.2

200,825

(236,547)

(54.1)

0

0.0

1,657,969

(437,190)

(20.9)

196,180

13.4

- Liquor
Insurance Premium
Estate
Other Taxes
Sub-Total Taxes

35,763,095

8,399,576

0

0

37,500

5,492

$667,056,859

($8,109,248)

30.7
-17.2
(1.2) %

0
9,734
($6,811,332)

-35.1
(1.0) %

$7,868,030,201

$511,587,743

7.0 %

$75,281,406

1.0 %

Other Revenue
Lottery

8,452,700

176,900

2.1

333,826

4.1

58,374,960

7,324,970

14.3

(6,822,934)

License, Fees and Permits

2,022,046

(29,382)

(1.4)

118,363

6.2

25,175,986

206,035

0.8

(721,625)

(1,522)

(15.2)

4,569,763

2,676,391

141.4

Interest

8,478

4,685

123.5

2,427,913

(10.5)
(2.8)
113.4

Sales and Services

1,886,953

(606,666)

(24.3)

(584,064)

(23.6)

24,196,556

(1,562,648)

(6.1)

(2,502,903)

(9.4)

Other Miscellaneous

2,537,854

(250,543)

(9.0)

375,846

17.4

30,779,529

9,258,125

43.0

5,230,207

20.5

0

(60,432,285)

(100.0)

338,749

(273,024)

(44.6)

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

--

17,869,682

(69,708,909)

(79.6)

(2,639,720)

0

(88.6)

13,245,924

(2,585,488)

(16.3)

15,246,780

(61,410,315)

(80.1) %

(2,397,271)

(13.6) %

174,212,401

$682,303,639

($69,519,563)

(9.2) %

($9,208,603)

(1.3) %

$8,042,242,601

(54,391,523)
$457,196,220

(23.8) %
6.0 %

0
(12,723,728)
(15,113,069)
$60,168,337

0.0
(49.0)
(8.0) %
0.8 %

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

17,023,427

(1,077,349)

0
(18,345,193)
$663,958,446

0
3,054,574
($66,464,989)

--

0

0.0

(389,054,820)

45,451,153

(6.0)

0

0.0

323,283,334

86,846,750

--

0

--

12,867,428

12,867,428

-- %

0

0.0 %

(52,904,058)

-36.7

0

0.0

0

0.0

--

0

145,165,331

-- %

0

(0.0) %
0.8 %

(9.1) %

($9,208,603)

(1.4) %

$7,989,338,544

$602,361,552

8.2 %

$60,168,337

0.4 %

($428,113)

(0.4) %

$1,105,236,259

$2,334,907

0.2 %

($7,591,205)

0.0

Non-General Funds
Highway User Revenue Fund

$95,474,068

$427,308

(0.7) %

__________
* Total May collections including the temporary 1¢ increase approved by the voters in May 2010 were $384.2 million. This amount is $26.7 million, or 7.5%, above May 2011 and $14.1 million, or 3.8%, above forecast. Yearto-date, total collections including the 1¢ increase were $4,183.7 million. This amount is $240.0 million, or 6.1%, above May 2011 and $29.2 million above forecast.

4 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

Economic Indicators
NATIONAL
The U.S. Department of Commerce Bureau of
Economic Analysis revised its estimate of U.S.
Real Gross Domestic Product for the first
quarter of 2012 down, from an annual rate of
2.2% to 1.9%. This lower growth rate represents
an even further deceleration from the 3.0%
rate estimated for the fourth quarter of 2011. A
reduction in inventory and non-residential fixed
investment and an increase in imports were
the primary contributors to this slow down.
“The Conference
Board’s U.S.
Consumer Index
declined by
(5.5)% in
May…the index’s
third consecutive
month of
decreases”

The Conference Board’s U.S. Consumer
Confidence Index declined by (5.5)% in May to
64.9. The reading represents the index’s third
consecutive month of decreases, though the
May value was still 5.2% above that seen in
May 2011. As was the case in April’s reading,
new optimism from reduced gasoline prices
was outweighed by worsening expectations of
employment and growth.
The Semiconductor Industry Association (SIA)
reported that Semiconductor Billings (3-month
moving average) in the Americas were $4.56
billion in April. This 2.4% increase was the
indicator’s second consecutive month of
growth and the largest monthly increase since
May 2010. Though year over year growth in
chip sales for the region was still negative at
(0.4)%, the decline was the smallest since June
of 2011.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), dropped by (0.3)%
in May and increased by 1.7% over the last
year. The monthly price decrease was the
index’s first in two years and largely the result of
a (6.8)% decline in the price of gasoline.
Meanwhile, core inflation, which excludes food
and energy prices, increased by 0.2% in May
and 2.3% over the last 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 April, 46 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
2.9% above last year, which is the 25th highest
growth in the country. While this is a significant
improvement, Arizona’s index is still (11.3)%
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 4.9% over the next 6 months.
This is unchanged from the revised 4.9% growth
projection in March, and higher than the 1.5%
projection in April 2011.
Employment
According to the Arizona Department of
Administration’s employment report for May,
the private sector added 6,700 jobs while the
government sector lost (14,800) jobs, for a net
loss of (8,100) nonfarm jobs in May. The
average month-over-month job loss for May in
the prior 10 years was (300).
The larger-than-average job loss in May
appears to be attributable to state and local
public education. While the government
sector typically sheds jobs in May as the
school year ends, the job loss this year
(14,800) was significantly higher than the
average in the prior 10 years (1,200). This may
be due to an earlier ending of the school year
this year than normally. If so, next month’s
(June) seasonal job loss should be smaller
than typically reported.
Year over year, nonfarm employment grew
by 1.7%, or 41,600 jobs, in May. This was less
than March’s and April’s growth rates of 2.0%
and 1.9%, respectively. Although Arizona’s
job growth, year over year, remains above
the national average, it appears to follow a
similar trajectory as the rest of the U.S., for
which job growth also slowed in April and
May.

5 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

Economic Indicators

(Continued)

After several consecutive years with year-over job losses,
the construction sector is now leading job creation in
the state (+10,200), closely followed by private
education and health services (+9,900) and leisure and
hospitality (+9,900). The government sector (-8,900)
along with other services (-2,500) remain the only
negative contributors to year-over-year job growth.

permits had been issued in the state, a 122.7% increase
from the prior year. Even with this growth, multi-family
permitting activity still remains (71.1)% below the peak of
activity in April 2007.

In May, the state remained (9.4)%, or (256,000) jobs,
below peak employment in December 2007. At the
current rate of job growth, Arizona is several years away
from returning to the employment level at the outset of
the last recession.

State Agency Data

Arizona’s unemployment rate of 8.2% in May was the
same as in the prior month. The U.S. jobless rate,
however, increased from 8.1% in April to 8.2% in May, the
first such increase since June 2011. May marked the first
time in 4 years that Arizona’s unemployment rate was
not higher than the nation’s.
See Tracking Arizona’s Recovery for additional historical
information.
Housing
The number of Maricopa County pending foreclosures
increased slightly from 18,056 in April to 18,596 in May.
This represents the third monthly increase in this measure
after 15 consecutive months of declines in pending
foreclosures. The May 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 31,661 in May 2011 to 20,162 in May
2012, a (36.3)% decrease. In the Metropolitan Phoenix
area, the median price of a single family home was
$140,000 in April. This represents an increase of 3.8% from
March, and a 12.0% increase from April of last year.
Another measure of the health of the Arizona real estate
market is permitting activity. Single-family housing
permits increased in April 2012. For the 3-month period
through April, a total of 1,339 single-family building
permits had been issued statewide, a 46.4% 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.
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 April, a total of 415 multi-family building

See Tracking Arizona’s Recovery for additional historical
information.

At the beginning of June, total AHCCCS caseloads
equaled 1.28 million members, a (0.5)% decrease from
the prior month. Overall AHCCCS caseloads are
currently (6.0)% below June 2011 levels.
The traditional AHCCCS population, which consists
primarily of lower-income children and their parents,
decreased (0.1)% from May and increased 2.9% 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 2011 and
this population has declined (108,089) since July to
116,403. Of the decline, (11,193) is attributed to
members who were transferred to the SSI program. As a
whole, the Proposition 204 program has declined (2.9)%
compared to the prior month, and (29.0)% 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
(2.7)% compared to the prior month and (44.1)% 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. As of the
beginning of June, 1,907 children were enrolled in
KidsCare II.
There were 39,573 TANF recipients in the state in May, a
monthly caseload increase of 0.3%. Year over-year, the
number of TANF recipients has declined by (5.1)%. 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.

6 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

Economic Indicators

(Continued)

The Supplemental Nutrition Assistance Program (SNAP),
formerly known as Food Stamps, provides assistance to lowincome households to purchase food. In May, there were a
total 1.1 million food stamp recipients in the state, a (0.1)%
decrease over the prior month. Compared to the same
month last year, food stamp participation was up by 4.5%.
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
increased to 39,999 inmates between March 2012 and
May 2012. Relative to the prior 3-month period, the
population has increased by 59 inmates. Compared to a
year ago, the population has declined by (194) 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

May
April
April
May
May
May
April
Mar-May
Mar-May

8.2%
29,208
57,118
2.46 million
150,600
120,300
40.9
$32.0 million
$155.0 million

0.0 %
42.3%
9.1%
(0.3)%
0.1%
2.5%
(0.5)%
3.8%
3.3%

(1.4)%
(2.1)%
(12.7)%
1.7%
0.5%
9.3%
0.5%
0.6%*
3.7%*

Feb-Apr
Feb-Apr

1,339
415

20.4%
(12.6)%

46.4%
122.7%

April
April

8,890
1,584

(7.7)%
(3.4)%

(13.4)%
(5.4)%

April
April
March

$140,000
$89,050
106.38

3.8%
9.9%
2.2%

12.0%
4.8%
6.1%

May
May
March
March

18,596
20,162
3.83 million
$4.88

3.0%
(2.5)%
21.4%
(8.8)%

(35.1)%
(36.3)%
1.7%
(18.5)%

2nd Quarter 2012
April
Feb-Apr
4th Quarter 2011
July 1, 2011
June

May
May
Mar - May

68.6
181.93
4.9%
$235.5 billion
6.48 million
1,280,177
887,077
116,403
151,328
10,331
1,907
52,322
60,809
39,573
1,131,620
39,999

(1.3)%
0.4%
(0.1)%
0.9%
N/A
(0.5)%
(0.1)%
(5.8)%
(0.5)%
(2.7)%
441.8%
0.2%
1.7%
0.3%
(0.1)%
59 inmates

32.2%
2.9%
3.3%
4.5%
1.1%
(6.0)%
2.9%
(100.0)%
(48.1)%
(0.7)%
(44.1)%
2.3%
29.1%
(5.1)%
4.5%
(194) inmates

April
April

18,164
25,629

(62)
76

(863)
(628)

1st Quarter 2012
(2nd Estimate)
May
April
Feb.-April
May

$13.5 trillion

1.9%

2.0%

64.9
95.5
$4.56 billion
228.5

(5.5)%
(0.1)%
2.4%
(0.3)%

5.2%
1.9%
(0.4)%
1.7%

7 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

Summary of Recent Agency Reports
Arizona Department of Administration – Report on State
Surplus Materials Revolving Fund Excess Revenue –
Pursuant to the FY 2012 General Appropriation Act, all
State Surplus Materials Revolving Fund revenues received
by the Arizona Department of Administration (ADOA) in
excess of the $1.3 million appropriation to State Surplus
Property Sales Proceeds line item in FY 2012 are
appropriated to ADOA. Prior to expending the additional
State Surplus Materials Revolving Fund receipts, ADOA is
required to report the intended use of the monies to the
Joint Legislative Budget Committee.
Monies appropriated to the State Surplus Property Sales
Proceeds line item are used to reimburse agencies for the
sale of surplus materials and are funded out of the State
Surplus Property Revolving Fund. ADOA indicates the
Surplus Property Management Program has experienced
an increase in proceeds from the sale of materials and
that the Surplus Materials Revolving Fund will receive
$300,000 above the appropriated amount in FY 2012.
ADOA will expend the additional $300,000 from the State
Surplus Materials Revolving Fund to reimburse agencies for
the sale of surplus materials. (Brett Searle)
Economic Estimates Commission – Report on the Budget
Stabilization Fund – Pursuant to A.R.S. § 35-144F, the
Economic Estimates Commission (EEC) is annually required
to calculate the amount of monies that may be
deposited to or withdrawn from the Budget Stabilization
Fund (BSF). The EEC estimate is calculated based on a
formula that compares the growth rate of real adjusted
Arizona personal income in the most recent calendar
year to the average in the last 7 calendar years (hereafter
referred to as the “trend” growth rate).
The formula recommends a BSF deposit whenever the
annual adjusted personal income growth rate exceeds the
trend growth rate. According to an EEC report issued May
25, 2012, the calendar year 2011 growth rate was 3.42%
compared to the trend growth rate of 1.35%. Since the
requirement for a fund deposit was met, the BSF formula
recommends that $167.4 million be transferred from the
General Fund to the BSF in FY 2012. In comparison, Laws
2012, Chapter 294 transferred $250.0 million from the
General Fund to the BSF in FY 2012. (Hans Olofsson)
Department of Economic Security – Report on Cash
Assistance – Pursuant to the FY 2012 General
Appropriation Act, the Department of Economic Security
reported its intent to use $500,000 in appropriation
authority for TANF Cash Benefits in FY 2012. These monies

are intended to ensure sufficient cash flow for tribes
operating their own programs. Instead, the department
will use the authority to pay for benefits.
Report on the Transfer of TANF to SSBG – Pursuant to the
FY 2013 General Appropriation Act, the Department of
Economic Security (DES) has submitted a FY 2013
expenditure plan for the transfer of $20.0 million from
the Temporary Assistance to Needy Families (TANF)
Block Grant to the Social Services Block Grant (SSBG) in
the following line items:
•
•
•

$4.8 million - Children Support Services
$10.8 million - CPS Emergency and Residential
Placement
$4.4 million - Foster Care Placement

The transfer to SSBG provides additional funding
flexibility to DES. The federal government caps the
amount of TANF Block Grant monies that can be
transferred to the SSBG at 10% of the base TANF Block
Grant to the state. The $20.0 million request is 10% of
the base. Once deposited in SSBG, the monies are
spent on the Children Services program in the line items
listed above. Should any changes be made to the
amounts allocated in the expenditure plan, DES will
notify JLBC. (Ben Beutler)
Arizona State Parks Board – Report on Reservation
Surcharge Fund Revenue – Pursuant to a FY 2012
General Appropriation Act footnote, the State Parks
Board is submitting a report on Reservation Surcharge
Fund revenue in excess of its appropriation of $203,800
and the intended use of these additional monies. The
footnote stipulates that during FY 2012, all Reservation
Surcharge Fund receipts received by the Parks Board in
excess of $203,800 are appropriated to the fund.
However, prior to expenditure of any excess revenue,
the Parks Board must report the intended use of these
monies to the JLBC.
The State Parks Board estimates that the Reservation
Surcharge Fund will generate additional receipts of
about $384,400, or $588,200 in total revenue, due to the
implementation of a new electronic reservation system.
Since the new system is also creating additional
expenses, the Parks Board intends to use the additional
revenues for administering and maintaining the
reservation system. The Parks Board expects to spend
$483,200 from the fund, plus transfer $105,000 to the
General Fund for a required fund sweep. (Art Smith)

8 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2012

May Spending
May 2012 spending of $525.6 million was $3.4 million more
than May 2011 (See Tables 6 and 7). While there was
more variation in individual agency spending, these
changes were due to technical timing issues.

Year to date, General Fund spending is $7.7 billion, or
$(128) million less than FY 2011.

Table 6
General Fund Spending ($ in Millions)

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

Change
from
May 11

Year to
Date

YTD
Change
from FY 11

104.7
98.4
24.5

0.6
25.7
4.4

1,301.3
856.1
557.0

25.2
47.5
19.8

168.9
23.8
1.4
11.6

(61.3)
17.3
(0.4)
11.6

3,072.6
497.0
43.9
175.4

(177.8)
78.3
4.7
108.0

42.7
0.0

(13.8)
0.0

683.9
49.1

(150.2)
3.0

49.6
525.6

19.3
3.4

473.8
7,710.1

(86.6)
(128.1)

9 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 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, Bldg, Life 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
May 12
May 11
920.6
780.5
93.1
39.5
948.9
400.0
104,698.3
552.6
1,617.9
28.4
78.7
41.1
79.2
2,625.0
49.6
98,444.1
2,669.5
24,540.2
168,919.1
880.2
28.9
37.4
72.7
270.7
129.3
1,812.6
109.3
647.9
199.3
23,790.6
1,415.3
63.8
168.6
6.4
576.5
2,334.8
10,195.6
1,730.2
4,660.8
268.9
7.5
1,861.0
1,379.1
214.4

37.1
2,534.4
13.2
25,682.5
1,790.5
4,357.0
(61,295.2)
(62.6)
19.6
20.0
17.6
93.0
20.7
1,658.6
69.2
(37.0)
155.9
63.0
17,347.9
1,250.2
30.1
136.5
3.7
247.4
866.5
(801.2)
776.7
785.5
120.1
2.5
605.7
622.4
92.2

Year-to-Date
13,641.6
49,050.7
775.2
7333.2
1,301,306.7
15,194.2
595.1
680.1
28,875.0
68,577.3
468.9
856,131.0
19,872.2
557,018.6
3,072,567.5
6,631.1
7,000.0
172.5
492.9
733.3
2,455.6
1635.2
5,655.3
845.7
(3.1)
4,559.5
1,676.1
496,952.6
4,017.3
622.1
3,789.2
50.9
4,832.6
15,273.5
77,163.1
12,820.1
42,391.2
1,130.6
54.8
16,179.0
11,463.5
1,827.8

YTD Change from
FY 11
(4,286.8)
(3,016.2)
(80.1)
(328.0)
25,168.5
(277.7)
(41.1)
40.9
25,766.5
(63,849.0)
(78.8)
47,496.5
(789.1)
19,789.8
(177,825.7)
(3,301.2)
(0.6)
16.0
(14.4)
(52.1)
25.0
(222.4)
1,954.7
236.0
(447.4)
(1,189.9)
(27.0)
78,327.6
(1,087.7)
(26.9)
3,752.8
(2.2)
(259.6)
(3,461.9)
594.7
(690.9)
(4,899.8)
(1,994.8)
(10.3)
492.8
551.7
(12.4)

10 JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 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 Education
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/JP Salaries
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

May 12
463.4
955.7
127.4
11.2
(14.5)
1,420.8
13.1
69.1
273.9
3,804.1
11,645.4
3,183.7
27.0
6.4
256.8
19,169.4
6,431.6
16,872.6
745.1
1,375.3
139.9
71.3
525,594.6

Change from
May 11
184.0
427.2
108.0
6.3
(307.2)
(372.3)
(95.8)
5.9
138.1
3,347.3
11,554.2
2,647.1
10.8
7.3
(186.0)
(6,231.5)
(2,120.3)
(5,262.5)
(500.2)
973.9
60.5
(94.5)
3,366.2

Year-to-Date
4,693.6
7,889.8
41.1
1,058.5
129.3
1,568.3
1,396.8
43,862.3
2,814.0
1,366.2
2,196.0
40,884.2
175,375.3
11,158.8
240.3
51.3
818.7
16,655.9
301,438.4
101,242.7
264,528.1
7,846.6
5,248.2
1,027.3
4,010.5
7,710,051.9

YTD Change from
FY 11
475.6
159.5
(319.7)
94.0
(815.8)
11.8
(20,000.0)
8.0
176.0
4,735.7
(980.1)
(11.5)
(8.3)
(279.6)
2,309.2
107,969.6
(3,237.9)
8.7
0.8
31.2
(423.4)
(68,548.9)
(23,322.1)
(57,886.3)
(3,859.3)
(705.0)
40.4
345.6
(128,092.8)