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

www.azleg.gov/jlbc.htm

“Year-to-date,
revenues are
4.4% higher than
last year and are
$15.7 million

March 2013

Summary
February General Fund revenue collections
totaled $339.6 million. Base revenues, which
exclude one-time adjustments, were 17.4%
above the prior year.

Total February General Fund collections were
$14.1 million above the Baseline forecast. Yearto-date, revenues are 4.4% higher than last year
and are $15.7 million above the Baseline
forecast.

The 17.4% growth rate overstates real economic
activity. February revenue collections are
significantly affected by the processing of
individual income tax refunds, which can make
the year-over-year comparison misleading.

In comparison to revenue of $339.6 million,
February 2013 General Fund spending was
$360.3 million, or $(21.9) million below last year.

February refund checks tend to offset any
withholding and payments. The net collection
amount is usually small and subject to significant
variation. In February 2013, individual income
tax collections were actually a negative $(46.5)
million as refunds were greater than collections.
In comparison, February 2012's net loss was
($72.6) million. This $26.1 million, or 36%, gain
between February 2012 and 2013 may solely
reflect timing in the processing of refunds. The
actual trend in taxpayer liability will require
additional months of income tax data.

Fiscal year-to-date, General Fund revenues of
$5.7 billion have been offset by $6.5 billion in
General Fund spending.

While February income tax data is difficult to
interpret, the sales tax posted a strong gain.
Sales tax revenues were up 7.4% from February
of last year. As noted in Table 2, there were also
relatively high growth rates in all of the largest
sales tax categories.

February expenditures were lower than last year
primarily due to decreased K-12 Education
spending resulting from the timing of school
district payments and land trust disbursements
over the last 2 years.

The state’s fiscal health can also be measured
by the operating fund balance. The state pays
its bills out of the operating fund balance, which
consists of the General Fund and certain
dedicated funds. As of mid-March 2013, the
operating balance is $1.8 billion.

above the
Baseline

Table of Contents

forecast.”

Summary.................................................................. 1
February Revenues ................................................ 2
Economic Indicators.............................................. 4
Summary of Recent Agency Reports
• ADOA/Treasurer – Report on GF Balance ..... 7
This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
March 20, 2013.

• Governor’s Council – Annual Report .............. 7
• JLBC Staff – Report on Credit Card

Transactions ........................................................ 7

• Department of Public Safety – Quarterly

Report on GIITEM Fund ...................................... 7
• DOR – Report on Temporary Collectors ........ 7
• Universities – Report on Research

Infrastructure Income ........................................ 8
February Spending................................................. 8
Tracking Arizona’s Recovery.............Appendix A

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

February Revenues
Table 1

February
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2013
Collections
$ 339.6
$ 5,749.0

Sales Tax collections of $386.6 million were 7.4%
above February 2012 and $16.2 million above the
Baseline forecast for the month.
Year-to-date, sales tax collections are 4.8%
above the prior year and are $17.4 million above
forecast.
“February
retail…
increased by
10.2%...(which)
marks the
highest growth
rate compared
to the prior
year in 20
months (since
June 2011).”

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

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Utilities
Use
Restaurant & Bar

February
10.2%
5.6%
6.9%
8.2%
4.9%

YTD
6.4%
2.8%
3.3%
(1.6)%
6.4%

Retail and contracting together account for
almost 60% of all sales tax revenues. February
retail, which reflects January sales, increased by
10.2%. The February increase marks the highest
growth rate compared to the prior year in 20
months (since June 2011). The increase brings
the growth in retail collections for the fiscal year
up to 6.4%.
Contracting collections have been much more
volatile than retail. The February increase of
5.6% brings the year-to-date increase to a
modest 2.8%.
Individual Income Tax net revenues were $(46.5)
million in February, which was $26.1 million more
than the prior year. Collections were $(4.0)
million below the Baseline forecast. Year-todate, revenues have grown 8.4% and are $10.6
million above forecast.
As indicated in Table 3, withholding was down
(4.2)% in February. The February decrease
brings withholding tax collections for the fiscal
year to 3.7% over the prior year. This amount is
$5.1 million above the Baseline forecast.

Difference From
Baseline Forecast
$ 14.1
$ 15.7

Difference
From FY 2012
$ 31.8
$ 19.4

Total estimated and final payments of $17.0
million were (13.6)% below last year, and were
$(4.8) million below forecast. Year-to-date,
payments are $(8.9) million below the forecast.
Refunds of $(338.5) million were $(40.9) million
less than last year’s amount. Year-to-date,
refunds are $14.0 million below forecast.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

February
(4.2)%
(13.6)%
(10.8)%

YTD
3.7%
1.9%
(15.4)%

Corporate Income Tax net collections were $12.9
million in February, which is $0.6 million greater
than the prior year’s net collections of $12.3
million. Collections for the month were $1.0
million above the forecast. Year- to-date,
collections are down (10.5)% and are $(9.8)
million below forecast.
The Lottery Commission reports that February
ticket sales were $55.8 million, which is $(5.0)
million, or (8.2)%, less than sales in the prior year.
Year-to-date ticket sales are $435.6 million,
which is 7.2% above last year’s sales. While yearto-date sales have increased, net General Fund
revenues actually declined due to an increase
in the payment of debt service for the Lottery
Revenue Bonds issued in FY 2010.
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 $104.0 million in
February were down $(4.1) million, or (3.8)%,
compared to February of last year. Year-todate revenues are (0.3)% below collections in
the prior year.

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

February Revenues (Continued)
Table 4

General Fund Revenue:
Change from Previous Year and January Baseline Forecast
February 2013
Current Month

FY 2013 YTD (Eight Months)

Change From
Actual

February 2012

February 2013

Amount

Change from
Actual

Baseline Forecast

Percent

Amount

Percent

February 2012

February 2013

Amount

Baseline Forecast
Percent

Amount

Percent

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

$308,634,610

$20,854,976

$2,527,799,598

$108,914,884

77,970,099

5,881,940

8.2

5,918,761

8.2

636,921,336

35,869,858

6.0

9,575,843

1.5

(46,521,112)

26,122,384

36.0

(3,970,620)

9.3

2,252,222,207

175,240,548

8.4

10,574,630

0.5

592,360

4.8

1,013,574

8.5

(190,902)

(41.5)

12,939,514
268,608
1,954,075

$10,231,531

(456,392)

3.4 %

4.5 %

$7,832,673

0.3 %

329,075,981

(38,474,216)

(10.5)

(9,799,880)

(2.9)

(63.0)

8,466,703

(2,000,538)

(19.1)

(968,579)

(10.3)
(5.1)

(4.2)

0

0.0

16,493,221

(1,645,296)

(9.1)

(886,322)

2,652,087

1,047,461

65.3

0

0.0

20,744,196

1,190,118

6.1

(806,669)

(3.7)

4,035,695

975,679

31.9

1,035,695

34.5

152,874,548

(9,927,765)

(6.1)

(5,610,966)

(3.5)

--

0

(200,825)

(100.0)

(70.2)

346,678

(15,966)

(4.4)

0
29,804

(85,187)

7.2 %

0
(7,601)

-(20.3)

$13,702,353

3.9 %

$5,944,944,468

$268,950,802

4.7 %

0
(93,769)

-(21.3)

$361,963,380

$55,191,110

Lottery

4,991,580

126,140

2.6

991,580

24.8

26,609,920

(8,211,260)

(23.6)

561,720

2.2

License, Fees and Permits

1,712,201

87,319

5.4

312,201

22.3

19,648,309

1,446,136

7.9

992,246

5.3

(1,552)

(41.9)

(78.5)

4,906,667

2,801,685

133.1

4,874,022

6.8

19,158,506

801,497

4.4

487,014

2.6

(70.7)

17,801,888

(22.4)

(759,270)

(4.1)

--

0

(26.3)

7,888,622

Sub-Total Taxes

18.0 %

0
(70,196)

$9,816,961

0.2 %

Other Revenue

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

2,152
9,610,099
586,308

647,591

7.2

(176,554)

(23.1)

0

0

368,704

267,505

-264.3

(7,848)
610,099
(1,413,692)
0
(131,296)

$17,271,044

$950,449

5.8 %

$361,044

2.1 %

$96,013,912

$379,234,424

$56,141,559

17.4 %

$14,063,397

3.9 %

$6,040,958,379

(5,126,538)
0
(4,325,729)
($12,614,209)
$256,336,592

-(35.4)

0
(268,589)

--

-(3.3)

(11.6) %

$5,887,143

6.5 %

4.4 %

$15,704,104

0.3 %

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

(42,798,670)

(7,430,050)

21.0

0

0.0

(342,389,360)

(59,440,400)

21.0

0

3,194,598

(16,937,906)

(84.1)

0

0.0

50,425,927

(164,644,386)

(76.6)

0

0.0

(39,604,072)

(24,367,956)

159.9 %

0

0.0 %

(291,963,433)

(236,952,214)

430.7 %

0

0.0 %

10.3 %

$14,063,397

4.3 %

$5,748,994,947

0.3 %

$15,704,104

0.3 %

(4.4) %

$796,056,284

$339,630,352

$31,773,603

$19,384,379

0.0

Non-General Funds
Highway User Revenue Fund

$103,970,781

($4,119,867)

(3.8) %

($4,768,411)

($2,778,604)

(0.3) %

($7,571,613)

* Total February collections including the temporary 1¢ increase approved by the voters in May 2010 were $386.6 million. This amount is $26.7 million, or 7.4%, above February 2012 and $16.2 million, or 4.4%, above
forecast.

(0.9) %

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Recent Economic Indicators
NATIONAL
According to the U.S. Department of
Commerce Bureau of Economic Analysis, the
U.S. Real Gross Domestic Product (GDP)
increased at a revised annual rate of 0.1% in
the fourth quarter of 2012. This deceleration
from third quarter growth of 3.1% was largely
due to fluctuations in inventory investment and
federal defense spending. Consumer spending
and business fixed investment increased,
compared to the third quarter.

“[The] U.S.
Consumer
Confidence
Index grew
19.2% in
February,
following three
months of
decreases.”

The Conference Board’s U.S. Consumer
Confidence Index grew 19.2% in February,
following three months of decreases. February’s
reading represents the largest monthly increase
since November 2011, though it does not fully
reflect recent impacts of the sequester and gas
prices on confidence. The index decreased
(2.8)% from the reading in February 2012.
The Conference Board’s U.S. Leading Economic
Index increased by 0.2% in January and 2.1%
above the measure in January 2012. This
modest monthly improvement was primarily the
result of increases to several financial market
sub-indices. Gains were partially offset by
reduced consumer expectations and new
manufacturing orders.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), were unchanged
in January and grew by 1.6 % above the prior
year. For a second month in a row, declining
gas prices offset inflation in other product
categories. During January, a 0.3% increase in
core inflation (all prices except for food and
energy) was offset by a (3.0)% decrease in gas
prices.
ARIZONA
Housing
The number of Maricopa County pending
foreclosures decreased from 11,124 in January
to 10,596 in February. The February total is
significantly below the peak in December 2009
(51,466). See Appendix A – Tracking Arizona’s
Recovery.
The total housing inventory in the Greater
Phoenix area decreased from 23,736 in
February 2012 to 21,718 in February 2013, a
(8.5)% decrease. This continues the decline in
inventory that started in January 2011.

As the supply of housing has declined, the
price has increased. In the Metropolitan
Phoenix area, the median price of a single
family home was $163,000 in January. This
represents a (0.6) decrease from December,
and a 35.3% increase from January of last
year.
Another measure of the health of the Arizona
real estate market is permitting activity. For
the 3-month period through January, a total
of 1,152 single-family building permits had
been issued statewide, a 41.3% increase from
last year. While permitting activity has seen
gains, the current level of permitting remains
far below a more normal 3-month average of
3,000 to 4,000 permits. See Appendix A –
Tracking Arizona’s Recovery.
The multi-family housing sector has also seen
gains, with the 3-month period ending in
January resulting in a total of 723 multi-family
building permits being issued in the state.
However, this figure remains well below the
peak of activity in April 2007.
Employment
As a result of the annual benchmarking
revision of establishment survey data, the
Department of Administration (DOA) reported
in March that Arizona nonfarm employment
growth in 2011 and 2012 was marginally
higher than previous estimates had indicated.
By incorporating more comprehensive data
based on unemployment insurance records,
the Bureau of Labor Statistics (BLS)
determined that the state added on average
5,925 and 4,325 more jobs per month in 2011
and 2012, respectively, than previously
reported. On an average annual basis, the
job growth in 2011, as well as 2012, was 0.2%
higher than previously estimated.
The latest estimate of nonfarm employment
showed that the state shed (45,500) jobs in
January over December in the prior year. Job
losses typically occur in January when the
holiday season comes to an end. The
average job reduction for the month of
January in the prior 10 years was (58,600).
Compared to January 2012, nonfarm
employment is up by 2.0%, or 47,700 jobs.
The household survey data used to estimate
the state’s unemployment rate was also
revised in March. The historical revision,
which covered the period from 2008 to 2012

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Recent Economic Indicators
was relatively small. The state’s jobless rate
increased from 7.9% in December to 8.0% in
January, which was 0.1% higher than the
national average.
State Agency Data

“Compared to
the same month
last year, SNAP
participation was
down by (2.0)%.”

At the beginning of March, total AHCCCS
caseloads equaled 1.26 million members, a
(0.1)% decrease from the prior month. Overall,
AHCCCS caseloads are currently (3.1)% below
March 2012 levels. The traditional acute care
AHCCCS population, which consists primarily of
lower income children and their parents, stayed
flat since last month and decreased (1.0)% from
a year ago. The total population in this program
is almost 900,000.
The childless adult program has not allowed
new participants since July 2011. This population
has declined (142,837) since then to 81,655. As
a whole, the Proposition 204 program has
declined (1.0)% compared to the prior month,
and (21.5)% from the prior year. KidsCare I
provides coverage for 7,694 children with
incomes above those in the traditional
population. Its enrollment has declined since a
freeze was implemented in January 2010.
Enrollment declined (2.4)% compared to the
prior month and (33.9)% from the prior year.
Beginning on May 1, 2012, AHCCCS began a
new program, entitled KidsCare II, which
provides coverage for children up to 175% of
the Federal Poverty Level. The state match is
provided by voluntary payments from political
subdivisions. As of the beginning of March,
28,273 children were enrolled in KidsCare II.
There were 38,587 TANF recipients in the state in
January, a monthly caseload decrease of
(6.3)%. Year-over-year, the number of TANF
recipients has declined by (2.9)%. The statutory
lifetime limit on cash assistance is 24 months.
The appropriation for TANF cash assistance in
the FY 2013 budget funds a caseload of
approximately 36,200 recipients in FY 2013.
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
(1.4)% decrease over the prior month.
Compared to the same month last year, SNAP
participation was down by (2.0)%.

(Continued)

The 3-month average count of the Department
of Corrections (ADC) inmate population
decreased to 40,045 inmates in February 2013.
Relative to the prior 3-month period, the
population has decreased by (30) inmates.
Compared to a year ago, the population has
increased by 144 inmates.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Recent Economic Indicators

(Continued)

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
- Revenue Per Available Hotel Room
- 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
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
Non-Maricopa
Maricopa County
United States
- Gross Domestic Product
(Chained 2005 dollars, SAAR)
- Consumer Confidence Index (1985 = 100)
- Leading Indicators Index (2004 = 100)
- U.S. Semiconductor Billings (3-month moving average)
- Consumer Price Index, SA (1982-84 = 100)
*Adjusted for 1¢ sales tax

Change From
Prior Period

Change From
Prior Year

Time Period

Current Value

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

8.0%
24,929
38,966
2.47 million
154,800
116,700
40.7
$36.1 million
$169.6 million

0.1 %
36.0%
2.3%
(1.8)%
(1.3)%
(1.0)%
0.7%
(0.2)%
13.2%

(0.6)%
(7.2)%
(30.9)%
2.0%
1.4%
7.3%
(2.6)%
4.6%*
7.5%*

Nov-Jan
Nov-Jan

1,152
723

(0.2)%
1.4%

41.3%
129.9%

January
January

6,939
1,100

(12.8)%
(7.3)%

(12.5)%
(9.8)%

January
January
December

$163,000
$101,500
125.33

(0.6)%
1.6%
0.9%

35.3%
45.0%
23.0%

February
February
December
January
December

10,596
21,718
3.39 million
$58.15
$4.80

(4.7)%
(1.7)%
(0.6)%
45.3%
(12.2)%

(40.6)%
(8.5)%
0.0%
5.0%
(4.2)%

4th Quarter 2012
December
Oct-Dec
3rd Quarter 2012
July 1, 2012
March

January
January
Dec-Feb

71.3
181.23
2.5%
$236.8 billion
6.55 million
1,263,560
881,399
81,655
147,608
7,694
28,273
53,204
63,727
38,587
1,108,674
40,045

3.9%
0.1%
(0.3)%
0.6%
N/A
(0.1)%
0.0%
(3.0)%
0.1%
(2.4)%
3.7%
(0.1)%
1.2%
(6.3)%
(1.4)%
(30) inmates

24.0%
2.6%
(0.2)%
4.2%
1.3%
(3.1)%
(1.0)%
(3.9)%
(33.9)%
2.3%
10.7%
(3.1)%
(2.9)%
(2.0)%
144 inmates

January
January

17,872
25,073

(111)
(208)

(545)
(557)

4th Quarter 2012
(2nd Estimate)
February
January
Nov-Jan
January

$13.7 trillion

0.1%

1.6%

69.6
94.1
$4.77 billion
231.2

19.2%
0.2%
(3.5)%
0.0%

(2.8)%
2.1%
10.5%
1.6%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Summary of Recent Agency Reports
ADOA/Treasurer – Report on Reconciliation of General
Fund Balance for FY 2012 – 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
2012 year-end General Fund balances (including
dedicated subaccounts and excluding claims payable)
of $523.5 million and $522.6 million, respectively. The
difference leaves an unreconciled General Fund
balance of $918,000. ADOA and the Treasurer report
that they will continue to try to isolate the source of the
difference. (Eric Billings)
Governor’s Council on Workforce Policy – Report on
2012 Annual Report – Pursuant to A.R.S. § 41-1542, the
Governor’s Council on Workforce Policy (GCWP)
submitted its annual report on workforce development.
The total workforce spending from state, federal, and
local sources for FY 2011 was $396.9 million. Of this total,
the Department of Economic Security accounted for
$203.5 million, Department of Education for $13.0 million,
Arizona Commerce Authority for $2.9 million, and
Community Colleges for $177.5 million.
Excluding the community colleges, the largest programs
in FY 2011 include Unemployment Insurance ($58.7
million), Vocational Rehabilitation ($51.8 million), the
Workforce Investment Act program ($50.5 million), and
the Jobs program, which provides employment and
training services to Temporary Assistance for Needy
Families (TANF) recipients ($15.9 million). (Eric Billings)
JLBC Staff – FY 2012 Reports on Credit Card Transactions
– A.R.S. § 35-142 requires agencies that accept credit
cards to annually report the number and dollar amount
of those transactions, compared to the number and
dollar amount of all transactions. Statute also requires
information on the total dollar amounts of any discount,
processing, or convenience fees paid. Lastly, each
agency must issue a cost benefit report when its
percentage of electronic transactions exceeds 30%.
Credit card transaction volumes vary widely among the
various agencies. The total number of transactions
processed by these agencies was 2.4 million, of which
electronic transactions totaled 674,970. The total dollar
amount of all transactions was $641.9 million. Electronic
transactions accounted for $130.6 million of that total.
The amount paid in discount fees was $1.1 million, in
processing fees was $336,800, and in other fees was
$700. The total amount of any convenience fee
charged, deducted, or paid for the transaction totaled
$404,500. Discount fees totaled 0.87% of the amount of

electronic transactions, processing fees totaled 0.26%,
and convenience fees totaled 0.31%. (Krista
MacGahan)
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 2013, DPS expended $658,600
in GIITEM Immigration Enforcement Grant monies
bringing the year-to-date total to $1.4 million. Year-todate, DPS has expended $1.3 million for a grant to the
Maricopa County Sheriff’s Office from the FY 2013 nonlapsing $2.6 million appropriation for local law
enforcement grants. Included in this amount is $650,900
in second quarter spending. Per statute, Maricopa
County receives $1.6 million annually. Pinal County also
is statutorily required to receive $500,000 annually, but
those monies have not been distributed yet. The
remaining $137,000 in total year-to-date expenditures
was funded from the FY 2011 non-lapsing $2.6 million
appropriation and was utilized to fund border detectives
and detention liaison officers. Included in this amount is
$7,700 in second quarter spending. There remains a
balance of $158,700 in the FY 2011, $190,400 in the FY
2012, and $1.3 million in the FY 2013 appropriations
available for use.
Additionally, the GIITEM Border Security and Law
Enforcement Subaccount received $551,141 in criminal
fine and fee revenues in the second quarter of FY 2013,
for a total of $1.1 million year-to-date. DPS expended
$389,800 in the second quarter and $465,000 year-todate from the Subaccount for border detectives,
detention liaison officers, and a grant to the Pima
County Sheriff’s Office. (Eric Billings)
Department of Revenue – Report on Temporary
Collectors – A FY 2013 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 annually for temporary collectors to assist
in the collection of already established debt.
DOR reports that through December 2012, 47 temporary
collectors have been hired and trained at a cost of $1.2
million. Through December, DOR estimated that these
temporary collectors have generated approximately
$39.4 million in total funds, which resulted in $26.4 million
in additional revenue to the General Fund. The
collectors were originally estimated to generate a total
of $33.9 million in additional General Fund revenue in
FY 2013. (Eric Billings)

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Summary of Recent Agency Reports
Universities – Report on University Research Infrastructure
Income – Pursuant to A.R.S. § 15-1670, Arizona State
University (ASU), Northern Arizona University (NAU), and
the University of Arizona (UA) are required to submit an
annual report on the amount of the previous year’s
income from licensure and royalty payments, the sale or
transfer of intellectual property developed by the
university, and to deposit a portion of that income into
the state General Fund. ASU and NAU reported that no

(Continued)

deposits were made in FY 2012, as they believe that their
income is net of expenses instead of gross income. UA did
not supply a report for FY 2012. ASU and NAU reported no
net income from licensure and royalty payments, or the
sale or transfer of intellectual property in FY 2012. In terms
of FY 2012 gross income, ASU reported $1.7 million of
licensing and royalty revenues and NAU reported $22,300
of licensing and royalty revenues.
(Marge Zylla)

February Spending
February 2013 General Fund spending of $360.3 million
was $(21.9) million lower than February 2012. Year-todate, spending is $6.5 billion, or $154.6 million above last
year.

Table 6
General Fund Spending ($ in Millions)

Agency
AHCCCS
Corrections
Economic Security
Education
Health Services
Public Safety
School Facilities
Board
Universities
Leaseback Debt
Service
Other
Total
Budget Stabilization
Fund Deposit
Grand Total

Feb 13

Change from
Feb 12

109.3
71.2
1.3
92.9
13.0
1.5
0.1

(6.0)
4.4
(5.9)
(24.6)
3.0
0.0
0.0

43.0
0.0

0.5
0.0

28.0
360.3

6.7
(21.9)

0.0
360.3

0.0
(21.9)

Year to Date

YTD Change
from FY 12

906.6
601.5
525.9
2,589.8
523.6
20.2
172.4

(157.1)
(8.6)
35.1
(8.3)
70.6
(18.3)
8.9

544.4
84.1

(11.1)
35.1

347.7
6,316.2

8.3
(45.4)

200.0

200.0

6,516.2

154.6

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Table 7

General Fund Spending
($ in Thousands)
Agency
Department of Administration
ADOA Sale/Leaseback Debt Service
Office of Administrative Hearings
Department of Agriculture
AHCCCS
Arts, AZ Commission on the
Attorney General
AZ Capital Post Conviction Public
Defender
State Board of Charter Schools
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
DEQ – WQARF
Office of Equal Opportunity
State Board of Equalization
Board of Executive Clemency
Department of Financial Institutions
Department of Fire, Life, Bldg Safety
Office of the State Forester
Arizona Geological Survey
Government Information Tech.
Governor/OSPB
Department of Health Services
Arizona Historical Society
Prescott Historical Society of AZ
Independent Redistricting Comm.
Commission on Indian Affairs
Department of Insurance
Judiciary
Supreme/Superior Court
Court of Appeals
Department of Juvenile Corrections

February 13
4,726.6
52.0
484.4
109,325.4
1,538.8
0.3

Change from
February 12
4,116.2
(10.9)
322.5
(6,045.8)
390.4
(54.1)

Year-to-Date
20,349.8
84,119.8
583.8
5,022.4
906,557.5
14,403.9
4.4

YTD Change
from FY 12
9,040.6
35,069.1
27.5
21.5
(157,069.5)
(10.4)
3,053.9
(405.3)

50.5
2,625.0
45.0
71,220.1
2,141.0
1,255.3
92,931.9
338.8
17.5
60.2
214.0
148.2
202.6
45.7
685.4
13,027.3
207.6
64.7
31.4
3.3
335.7

(0.2)
8.5
4,436.0
620.3
(5,973.0)
(24,643.4)
(90.0)
(11.9)
(2.6)
8.9
39.7
34.6
15.3
(5.0)
(8.3)
2,996.6
17.4
17.5
(449.8)
(0.1)
(7.8)

508.0
21,000.0
48,144.5
377.6
601,450.8
15,540.9
525,934.1
2,589,753.6
5,399.4
7,000.0
55.5
376.7
525.9
1,817.3
1,231.2
3,981.1
633.8
5,781.8
523,587.2
2,191.8
456.5
1,091.5
33.7
3,238.5

14.2
(4,041.6)
23.3
(8,581.0)
1,275.0
35,080.3
(8,260.3)
866.0
(61.0)
(32.4)
(15.6)
11.2
(9.5)
568.2
42.9
3.1
1,449.4
70,599.1
(33.5)
(19.7)
(1,950.6)
2.4
(271.7)

2,480.2
1,020.0
3,001.2

275.1
24.2
(84.5)

57,491.6
8,910.3
27,305.4

458.5
(280.2)
(4,374.3)

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – MARCH 2013

Agency
State Land Department
Law Enforcement Merit System
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.
Legislative Council
Senate
Mine Inspector
Nav. Streams & Adjudication
Pioneers’ Home
Comm. for Postsecondary Ed.
Department of Public Safety
Arizona Department of Racing
Radiation Regulatory Agency
Real Estate Department
Department of Revenue
School Facilities Board
Secretary of State
Tax Appeals Board
OOffice of Tourism
Department of Transportation
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
Total
Budget Stabilization Fund Deposit
Grand Total

February 13

Change from
February 12

Year-to-Date

YTD Change
from FY 12

71.9
5.0

50.5
0.2

703.8
43.6

(18.3)
5.8

1,423.8
1,101.0
195.9
356.9
702.7
49.2
9.0
39.6
610.3
1,528.9
50.3
148.8
2,504.0
104.1
703.3
17.4
254.2
0.6

94.2
99.0
21.6
34.6
(5.2)
(22.0)
2.2
(21.3)
610.3
14.1
(33.3)
6.4
(13.8)
112.8
38.7
23.5
1.3
254.2
(7.0)

11,327.2
7,432.5
1,252.5
5,049.3
5,073.2
730.7
80.1
657.4
1,396.7
20,222.5
1,874.1
1,020.7
1,522.2
27,196.3
172,437.9
12,822.7
175.8
3,293.9
19.4

(377.8)
(648.6)
(76.8)
1,460.4
(494.6)
(9.7)
(23.5)
(910.8)
(0.1)
(18,267.9)
(860.2)
(12.3)
(105.4)
(5,563.8)
8,851.5
6,378.1
(4.6)
3,293.9
(12.4)

3,828.9
17,381.2
5,924.2
15,870.8
340.4
766.0
94.3
(2,460.3)
360,272.8
360,272.8

3,801.6
(1,788.1)
(507.4)
(1,001.8)
(298.5)
249.0
12.3
(4.0)
(21,927.2)
(21,927.2)

30,945.0
229,625.1
77,888.4
205,895.8
3,605.8
6,027.6
897.9
2,151.7
6,316,230.2
200,000.0
6,516,230.2

15,210.8
(14,305.2)
(4,059.4)
(8,014.6)
(2,027.3)
2,698.6
188.3
152.2
(45,384.3)
200,000.0
154,615.7

Tracking Arizona’
Arizona’s Recovery

Total Non‐
Non‐Farm Employment
2,800

March 2013
Appendix A

2,700

Thousands of Jobs

Slide:
2……Total Non‐Farm Employment
3……Initial Claims for Unemployment Insurance
4……State Sales Tax Collections – Retail Category
5……State Sales Tax Collections – Contracting
Category
6……Single Family Building Permits
7……Maricopa County Pending Foreclosures
8……Coincident Index

2,600

2,500

2,400

2,300

2,200

2001

1

JLBC

Initial Claims for Unemployment Insurance

2005

2006

2008

2010

2011

JAN

JULY

JUL

JAN

JUL

JAN

JUL

2009

JAN

JUL

2007

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

JAN

2004

2012

2

Not seasonally adjusted

State Sales Tax Collections – Retail Category
$225

40,000
$200
35,000

$ in Millions

30,000
25,000
20,000
15,000

$175

$150

$125

2007

Not seasonally adjusted

Jan‐13

Oct‐12

Jul‐12

Apr 12

Jan 12

Oct 11

Apr 11

July 11

Jan 11

Oct 10

July 10

Jan 10

Apr 10

Oct 09

July 09

Jan 09

Apr 09

Oct 08

July 08

Jan 08

Apr 08

Oct 07

Apr 07

July 07

JAN

JULY

JUL

2011

JAN

JUL

2010

JAN

JUL

2009

JAN

JUL

2008

JAN

JUL

JAN

JUL

2006

JAN

JUL

2005

JAN

JUL

2004

JAN

JUL

2003

JAN

JUL

2002

JAN

JUL

JAN

JAN

2001

Jan 07

$100

5,000

Oct 06

10,000
July 06

Total Monthly Claims for UI Benefits

2003

JLBC

45,000

JLBC

2002

JAN

JUL

JAN

JAN

2,100

2012

3

JLBC

Excludes temporary 1 ¢ sales tax

4

State Sales Tax Collections – Contracting Category

Single Family Building Permits
100,000

$100

Single Family Building Permits

90,000

$ in Millions

$75

$50

$25

80,000
70,000
60,000
50,000
40,000
30,000
20,000

Jan‐13

JLBC

5

2003

2004

JLBC

2006

2007

2008

2009

2010

2011

JAN

JULY

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

2005

JAN

JUL

JAN

JUL

JAN

JUL

2002

2012

6

12‐Month Moving Sum

Maricopa County Pending Foreclosures

Economic Activity Index
210

60,000

200

Coincident Index Value

50,000

40,000

30,000

20,000

10,000

190
180
170
160
150

2003

2004

2005

2006

2008

2009

2011

An initial notice of trustee sale has been recorded but final sale has not yet occurred

2012

7

JLBC

2002

2003

2004

2005

2006

2007

2009

2010

2011

JULY

JUL

JAN

JUL

JAN

JAN

JUL

JUL

2008

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2001

JAN

JAN

JAN

JULY

JAN

JUL

JUL

2010

JAN

JAN

JUL

JAN

JUL

JUL

2007

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2002

JAN

140
JAN

0

JLBC

JAN

JUL

2001
Excludes temporary 1 ¢ sales tax

JAN

0
JAN

Jul‐12

Oct‐12

Jan 12

Apr 12

Oct 11

July 11

Jan 11

Apr 11

Oct 10

July 10

Jan 10

Apr 10

Oct 09

July 09

Jan 09

Apr 09

Oct 08

July 08

Jan 08

Apr 08

Oct 07

July 07

Jan 07

Apr 07

Oct 06

July 06

10,000

$0

2012

Source: Coincident Index – Federal Reserve Bank of Philadelphia. Combines four state‐level
indicators (employment, average hours worked in manufacturing, the unemployment rate, and wage
and salary disbursements) to summarize current economic conditions.

8