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

www.azleg.gov/jlbc.htm

“From a year-todate
perspective,
base revenues
are 5.8% higher
than last year. In
total, year-todate General
Fund collections
are $185.9
million above
the Baseline

Summary
May General Fund revenue collections totaled
$705.0 million. Base revenues, which exclude
one-time adjustments, were 8.0% above the prior
year. The increase in May collections was largely
due to growth in Sales and Corporate Income
Tax receipts, along with the Department of
Environmental Quality receiving a one-time
settlement payment. Overall May collections
were $16.6 million above the January Baseline
forecast.
From a year-to-date perspective, base revenues
are 5.8% higher than last year. In total, year-todate General Fund collections are $185.9 million
above the Baseline forecast, primarily as a result
of the surge in Income Tax collections seen in
April.
In comparison to revenue of $705.0 million, May
2013 General Fund spending was $560.6 million,
or $35.0 million above last year.
Fiscal year-to-date, General Fund revenues of
$8.11 billion have been offset by $7.99 billion in
General Fund spending. Given the state’s cash
flow through a given fiscal year, May is typically
the first month where year-to-date revenues
exceed spending.
Next month’s Monthly Fiscal Highlights will look at
the year-end estimates of FY 2013 revenues and
expenditures in order to develop a preliminary
projection of the FY 2013 ending balance.

FY 2014 Budget Enactment
The Legislature passed the FY 2014 budget,
which was approved by the Governor on June
17th. For a complete listing of spending changes,
long-term projections, and statutory changes
associated with the budget, please see the JLBC
Special Session Budget Summary.
Updated ADE Spending Estimates
The JLBC Staff recently revised the FY 2014
Arizona Department of Education (ADE) Baseline
estimate upward by $5 million in FY 2014, $22
million in FY 2015 and $39 million in FY 2016 due
to increased reports of “charter conversions.”
This process converts existing traditional district
schools into charter schools, which entitles a
school district to approximately $1,000 in
additional funding per pupil for students in the
converted schools.
The JLBC estimates are based on 30 schools
converting in FY 2014, 60 in 2015 (including the 30
in FY 2014) and 90 in FY 2016. These estimates
are speculative and could be significantly
higher, given the conversion financial incentives.
The enacted 3-year Special Session budget plan
does not include these revised ADE estimates.
For a complete summary of the fiscal impact of
school district charter conversions, please see
JLBC Staff Charter Conversion Memo.

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-June 2013, the
operating balance is $2.4 billion.

forecast…”

This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
June 20, 2013.

June 2013

Table of Contents
Summary

Summary of Recent Agency Reports

• FY 2014 Budget Enactment............................... 1

• ADOA - State Surplus Materials Report............8

• Updated ADE Spending Estimates .................. 1

• AG - Report on Incarceration Costs ................8

May Revenues ........................................................ 2

• DES – Monthly CPS Report .................................8

Economic Indicators.............................................. 4
JLBC Meeting........................................................... 7
JCCR Meeting ......................................................... 7

• ADE – Budget Status Report ..............................8
• DPS – Quarterly Report on GIITEM Fund ..........8

May Spending .........................................................9
Tracking Arizona’s Recovery ............ Appendix A

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

May Revenues
Table 1

May
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2013
Collections
$ 705.0
$ 8,107.3

Sales Tax collections of $404.4 million were 5.3%
above May 2012 and $10.1 million above the
Baseline forecast for the month.

“Year-to-date,
sales tax
collections are
4.5% above the
prior year and
are $22.1 million
above forecast.”

Year-to-date, sales tax collections are 4.5%
above the prior year and are $22.1 million above
forecast.
Table 2 displays the May growth rates for the
largest categories.
Retail and contracting together account for
about 60% of all sales tax revenues. May retail,
which reflects April sales, increased by 3.4%
reducing year-to-date retail growth to 6.1%.
Contracting collections have been much more
volatile than retail. The May increase of 13.4%
brings the year-to-date increase to 4.9%.
Table 2

Sales Tax Growth Rates
Compared to Prior Year
Retail
Contracting
Utilities
Use
Restaurant & Bar

May
3.4%
13.4%
21.5%
2.8%
4.7%

YTD
6.1%
4.9%
3.5%
(2.7)%
5.5%

Individual Income Tax net revenues were $229.2
million in May, which was $(2.6) million less than
the prior year. Collections were $(11.9) million
below the forecast for the month. Year-to-date,
revenues have grown 11.2% and are $145.3
million above forecast.
As indicated in Table 3, withholding was up 4.4%
in May. The May increase brings withholding tax
collections for the fiscal year to 4.1% over the
prior year. This amount is $(15.4) million below
the Baseline forecast.
May estimated and final payments of $27.1
million were 54.7% above last year, and were
$7.1 million above forecast. Year-to-date,
payments are $85.5 million above the forecast.

Difference From
Baseline Forecast
$ 16.6
$ 185.9

Difference
From FY 2012
$ 40.3
$ 152.3

May refunds of $(94.3) million were $(24.7)
greater than last year’s amount. Year-to-date,
refunds are $75.2 million below forecast.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated +
Final Payments
Refunds

May
4.4%

YTD
4.1%

54.7%
35.6%

16.1%
(3.1)%

Corporate Income Tax net collections were $30.7
million in May, which is $20.7 million greater than
the prior year’s net collections of $10.0 million.
Collections for the month were $5.6 million above
the forecast. Year- to-date, collections are up
0.7% compared to the prior year, and are
approximately $5.4 million above the forecast.
The Lottery Commission reports that May ticket
sales were $77.9 million, which is $22.3 million, or
40.1%, greater than sales in the prior year. Yearto-date ticket sales are $644.9 million, which is
7.9% above last year’s sales. While year-to-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 $101.4 million in
May were up $5.9 million, or 6.2%, compared to
May of last year. Year-to-date revenues are
0.2% above collections in the prior year, and
$(4.9) million below forecast.

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

Table 4

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

FY 2013 YTD (Eleven Months)

Change From
Actual

May 2012

May 2013

Amount

Change from
Actual

Baseline Forecast
Percent

Amount

Percent

May 2012

May 2013

Amount

Baseline Forecast
Percent

Amount

Percent

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

$322,843,958

$15,954,087

81,599,140

4,318,562

5.6

5.2 %

$6,003,067
4,119,155

1.9 %
5.3

229,188,191

(2,579,228)

(1.1)

(11,947,087)

(5.0)

$3,490,458,478

$142,699,733

4.3 %

$2,098,635

882,655,407

46,686,206

5.6

20,002,943

0.1 %
2.3

3,066,983,484

309,136,149

11.2

145,338,203

5.0

30,735,404

20,682,832

205.7

5,623,955

22.4

537,433,417

3,792,970

0.7

5,409,620

1.0

Property

1,526,028

220,911

16.9

26,028

1.7

11,176,464

(2,333,560)

(17.3)

(1,858,818)

(14.3)

Luxury - Tobacco

1,103,839

(10,851)

(1.0)

0

0.0

22,589,040

(705,865)

(3.0)

86,959

0.4

2,238,179

(1,306,874)

(36.9)

0

0.0

29,671,160

1,551,441

5.5

(335,828)

(1.1)

40,903,081

5,139,986

14.4

903,081

2.3

(2,346,333)

(0.7)

0

0

39,678

2,178

$710,177,499

$42,421,604

Lottery

9,201,200

748,500

8.9

1,201,200

15.0

48,385,300

(9,989,660)

(17.1)

337,100

0.7

License, Fees and Permits

2,552,381

530,335

26.2

752,381

41.8

26,289,961

1,113,976

4.4

1,333,898

5.3

- Liquor
Insurance Premium
Estate
Other Taxes
Sub-Total Taxes

-5.8
6.4 %

0
(60,322)
$4,667,878

316,139,181

(10,590,884)

(3.2)

--

0

(200,825)

(100.0)

(60.3)

1,522,737

(135,234)

(8.2)

0.7 %

$8,358,629,369

$489,900,132

6.2 %

0
(177,263)

-(10.4)

$168,218,119

2.1 %

Other Revenue

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

(577,885)

(586,363)

--

1,988,756

101,803

5.4

12,660,247

10,122,393

398.9

0

0

1,370,365

1,031,616

-304.5

(587,885)

--

6,819,256

2,245,659

49.1

6,756,611

(11,244)

(0.6)

25,605,740

1,409,186

5.8

834,249

3.4

8,132,432

30.1

9,660,247
0
870,365

322.0
-174.1

35,193,590

4,414,061

14.3

0

(17,869,682)

(100.0)

0

9,930,391

(3,315,533)

(25.0)

273,180

$27,195,064

$11,948,284

78.4 %

$11,885,064

77.6 %

$152,224,239

$737,372,563

$54,369,888

8.0 %

$16,552,942

2.3 %

$8,510,853,608

($21,991,992)
$467,908,140

--

-2.8

(12.6) %

$17,667,470

13.1 %

5.8 %

$185,885,589

2.2 %

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

(42,798,670)

(7,430,050)

21.0

0

0.0

(470,785,370)

(81,730,548)

21.0

0

0.0

10,387,984

(6,635,443)

(39.0)

0

0.0

67,247,316

(221,036,018)

(76.7)

0

0.0

--

0

--

0

(12,867,428)

(100.0)

0

--

76.7 %

0

0.0 %

359.1 %

0

0.0 %

$185,885,589

2.3 %

0
(32,410,686)

0
(14,065,493)

(403,538,054)

(315,633,994)

$704,961,877

$40,304,395

6.1 %

$16,552,942

2.4 %

$8,107,315,554

$152,274,146

1.9 %

$101,381,406

$5,907,340

6.2 %

$5,334,495

5.6 %

$1,106,918,365

$1,682,108

0.2 %

Non-General Funds
Highway User Revenue Fund

($4,949,310)

(0.4) %

* Total May collections including the temporary 1¢ increase approved by the voters in May 2010 were $404.4 million. This amount is $20.3 million, or 5.3%, above May 2012 and $10.1 million, or 2.6%, above forecast.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

Recent Economic Indicators
NATIONAL
The Conference Board’s U.S. Consumer
Confidence Index grew 7.2 points in May to
76.2, the highest reading since February 2008.
Recent increases in confidence reflect a
widespread improved outlook on the labor
market and economy. This has largely been
attributed to better housing and jobs reports,
reduced gas prices, and diminished fears over
impacts of sequestration.

“The Conference
Board’s U.S.
Consumer
Confidence
Index grew 7.2
points in May to
76.2, the highest
reading since
February 2008.”

The Conference Board’s U.S. Leading Economic
Index increased by 0.6% in April and 2.3%
above the measure in April 2012. The index’s
current reading of 95 is the highest since early
months of the recession. While 7 of the 10
components of the index contributed to the
improved reading, growth was largely due to
increased building permits—the national total
of permits in April were at its highest level since
June 2008.
Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), increased 0.1% in
May. A (0.1)% decline in food prices was more
than offset by increases in rent, lodging, and
energy. The latest price increase follows 2
months of decreases.
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, 45 out of 50 states had increases in their
coincident indexes. Arizona’s coincident index
increased by 0.1% compared to the prior month.
Year-over-year, the Arizona index is 1.9% above
last year, which is the thirty-seventh highest
growth rate in the country. While this is a
significant improvement, Arizona’s index is still
(10.3)% below its peak, which occurred in August
2007. See Appendix A – 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 manufacturing

delivery times, and the interest rate spread
between the 3-month and 10-year Treasury
instruments.
Using a 3-month average, Arizona’s leading
index projects that state GDP will grow at an
annualized rate of 1.8% over the next 6 months.
This is lower than the revised 2.0% growth
projection in March and lower than the 2.4%
projection in April 2012.
Housing
The number of Maricopa County pending
foreclosures decreased from 9,424 in April to
8,826 in May. The May 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 20,162 in May
2012 to 19,734 in May 2013, a (2.1)%
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 $181,399 in April. This
represents a 3.7% increase from March, and a
29.6% increase from April of last year.
Another measure of the health of the Arizona
real estate market is permitting activity. For
the 3-month period through April, a total of
1,562 single-family building permits had been
issued statewide, a 16.6% 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 seen
recent gains, with the 3-month period ending
in April resulting in a total of 403 multi-family
building permits being issued in the state.
However, this figure remains well below the
peak of activity in April 2007.
State Agency Data
At the beginning of June, total AHCCCS
caseloads equaled 1.27 million members, a
0.2% increase from the prior month. Overall,
AHCCCS caseloads are currently (0.4)%
below June 2012 levels. The traditional acute
care AHCCCS population, which consists
primarily of lower income children and their
parents, decreased by (0.1)% since last month

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

Recent Economic Indicators
and remained the same as 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 (148,842) since then to
75,650. As a whole, the Proposition 204
program has declined (0.7)% compared to the
prior month, and (16.5)% from the prior year.
KidsCare I provides coverage for 7,185 children
with incomes above those in the traditional
population. Its enrollment has declined since a
freeze was implemented in January 2010.
Enrollment declined (1.0)% compared to the
prior month and (30.5)% from the prior year.
“Compared to
the same month
last year, food
stamp
participation was
down by (1.1)%.”

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 June, 36,026
children were enrolled in KidsCare II.
There were 36,864 TANF recipients in the state in
April, a monthly caseload decrease of (1.1)%.
Year-over-year, the number of TANF recipients
has declined by(6.6)%. 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 April, 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, food
stamp participation was down by (1.1)%. The
number of SNAP 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 Corrections (ADC) inmate population
increased to 40,331 inmates in May 2013.
Relative to the prior 3-month period, the
population has increased by 160 inmates.
Compared to a year ago, the population has
increased by 331 inmates.

(Continued)

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 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

Time Period

Current Value

Change From
Prior Period

Change From
Prior Year

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

7.9%
27,564
41,439
2.52 million
154,800
119,600
41.7
$35.6 million
$163.0 million

0.0 %
48.8%
12.1%
0.2%
(0.3)%
(0.1)%
2.5%
6.3%
1.2%

(0.5)%
(5.6)%
(27.5)%
2.0%
0.3%
6.5%
2.0%
11.2%*
5.2%*

Feb-Apr
Feb-Apr

1,562
403

10.9%
18.2%

16.6%
(2.8)%

April
April

9,233
1,574

4.2%
10.5%

3.9%
(0.6)%

April
April
March

$181,399
$119,900
130.29

3.7%
3.4%
1.7%

29.6%
34.6%
22.5%

May

8,826

(6.3)%

(52.5)%

May
April
April
March

19,734
3.41 million
$67.68
$5.50

(1.7)%
(10.0)%
(25.3)%
19.8%

(2.1)%
1.1%
5.3%
12.7%

2nd Quarter 2013
April
Feb-Apr
4th Quarter 2012
July 1, 2012
June

April
April
Mar-May

69.6
181.44
1.8%
$240.2 billion
6.55 million
1,274,732
886,795
75,650
147,885
7,185
36,026
53,628
67,563
36,864
1,099,471
40,331

N/A
0.1%
(0.2)%
2.1%
N/A
0.2%
(0.1)%
(1.2)%
(0.4)%
(1.0)%
12.7%
0.3%
(0.4)%
(1.1)%
(1.4)%
160 inmates

2.5%
11.1%
(6.6)%
(1.1)%
331 inmates

April
April

17,722
25,279

(17)
(22)

(442)
(350)

1st Quarter 2013
(2nd Estimate)
May
April
Feb-April
May

$13.7 trillion

2.4%

1.8%

76.2
95.0
$4.36 billion
231.8

10.4%
0.6%
(0.6)%
0.1%

18.3%
2.3%
(4.4)%
1.4%

1.5%
1.9%
(0.6)%
4.8%
1.3%
(0.4)%
(0.0)%
(35.0)%
(2.3)%
(30.5)%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

JLBC Meeting
At its June 11, 2013 meeting, the Joint Legislative Budget
Committee considered the following issues:
Attorney General – Review of Allocation of Settlement
Monies – The Committee gave a favorable review to the
allocation plan of $4.7 million from 3 settlements: 1) a
$3.8 million consent judgment with Lender Processing
Services, Inc.; 2) a $682,100 consent judgment with
Toyota; and 3) a $326,300 consent judgment with
Google. The settlements will be deposited into the
Consumer Fraud Revolving Fund.

Committee gave a favorable review to the
department’s $5.1 million expenditure plan for the
reimbursement of federal monies related to FY 2012 fund
transfers from the Special Employee Health Insurance
Trust Fund (HITF).

Arizona Department of Administration – Review of
Federal Reimbursement for FY 2012 Fund Transfers – The

JCCR Meeting
At its June 12, 2013 meeting, the Joint Committee on
Capital Review considered the following issues:
Arizona Department of Administration – Review of the
Arizona Department of Corrections 500 Public Prison
Beds – The Committee gave a favorable review of the
Arizona Department of Administration’s (ADOA)
proposed plan to construct 500 male state-run
maximum security prison beds at a cost of $50 million.
The favorable review includes the provision that the
Arizona Department of Corrections (ADC) report to the
Committee on: the final cost details and timeline for
each of the 5 bid components, any increase in costs
above the current non-contingency estimate of $49.7
million, and the timing for opening the 500 beds.
Arizona Game and Fish Department – Review of Lake
Havasu (Tri-State Shooting Park) Shooting Range FY 2005
Appropriation Expenditures– The Committee gave a
favorable review of the Arizona Game and Fish

Department’s (AGFD) plan for construction of the Lake
Havasu (Tri-State) Shooting Range at a cost of $600,000,
which includes $484,000 of already completed design
and construction projects along with $116,000 for
planned expenditures to complete the shooting range.
Arizona Exposition & State Fair Board – Review of New
Power Distribution Line and Meter Appropriation
Expenditures – The Committee gave a favorable review
of the Arizona Exposition and State Fair’s (AESF) plan for
the construction of a new electrical power line and
meter at a cost of $300,000.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

Summary of Recent Agency Reports
Arizona Department of Administration – Report on State
Surplus Materials Revolving Fund Excess Revenue –
Pursuant to a FY 2013 General Appropriation Act
footnote, 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 2013 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 $325,000 above the appropriated amount in
FY 2013. ADOA will expend the additional $325,000 from
the State Surplus Materials Revolving Fund to reimburse
agencies for the sale of surplus materials.
In addition, last year ADOA reported that the Surplus
Property Management Program experienced an
increase in proceeds from the sale of materials and that
the Surplus Materials Revolving Fund would receive
$300,000 above the appropriated amount in FY 2012.
ADOA has reported that it was only necessary for the
program to utilize $147,000 of the projected $300,000
increase in expenditure authority in FY 2012. (Ben
Henderson)
Office of the Attorney General – Report on Incarceration
Costs Offset by Monetary Judgments – Pursuant to A.R.S.
§ 31-238, the Office of the Attorney General is required
to report semi-annually on the use of monetary
judgments awarded to inmates to offset the costs of
incarceration. From June 30, 2012 to January 1, 2013,
the state did not exercise its right to offset the costs of
incarcerating inmates under this statute, since no
monetary judgments were awarded during this time
period. The agency does, however, indicate that it
believes the existing statute results in reduced
negotiated settlement amounts, which also discourages
the filing of frivolous lawsuits. (Andrew Hartsig)
Department of Economic Security (DES) - Monthly Report
on CPS - Pursuant to Laws 2013, Chapter 1, DES has
submitted the April financial and program
accountability report. According to the report, out-ofhome placements increased from 14,095 in January
2013 to 14,158 in February 2013. Caseloads are above
the department’s goals, and turnover for Child

Protective Services (CPS) case managers was
approximately 2.0%. The highlights of this report are
summarized below.
•
The CPS Training Academy had 280 new CPS case
managers in training as of February, or (15) fewer
than in January.
•
As of February, the number of filled case manager
positions was 1,163, including those in training, an
increase of 20 from January. In February, caseloads
per worker remained considerably higher than
caseload goals but were better than the prior
month. In February, caseloads were 87.9% above
the department’s caseload goals of 10
investigations, 19 in-home cases, or 16 out-of-home
children per case manager, compared to being
101.4% above caseload goals in January.
•
DES reports that monthly case manager turnover
during February was 2.0%, down from a 2.2% rate in
January.
•
In addition to 3,446 continuing in-home cases, an
increase of 416 from January, there were 2,050 new
in-home cases in February. The total number of
continuing out-of-home children, however,
declined slightly to 12,785 in February from 12,845 in
January.
•
The number of children who left CPS care in
February was 1,310, essentially flat when compared
to 1,314 in January.
•
The ratio of filled supervisor positions to filled CPS
case manager positions in February remained at
the January level of about 1:7.
•
DES plans to spend $650.2 million from all funds on
CPS in FY 2013, an increase of 11.1% from $585.3
million in FY 2012.
(Ben Beutler)
Department of Education – Budget Status Report –
Pursuant to A.R.S. § 35-131D, the Arizona Department of
Education (ADE) recently provided an update
regarding its budget status for FY 2013. In that report,
ADE estimates that it will experience a $56.9 million net
funding surplus for formula programs for FY 2013. The
estimated surplus includes a $36.4 million savings from
prior year (FY 2012) overpayments that are being
recaptured in the current year on a one-time basis. The
remaining $20.5 million represents an ongoing savings.
The FY 2014 budget assumes an ongoing savings of
$25.5 million based on previous reports. ADE’s final
formula costs for FY 2013 will not be known until later in
the year due to ongoing data updates and corrections.
(Steve Schimpp)
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

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 2013

Summary of Recent Agency Reports
Enforcement Mission (GIITEM) Fund expenditures. During
the third quarter of FY 2013, DPS expended $757,700 in
GIITEM Immigration Enforcement Grant monies, bringing
the year-to-date total to $2.1 million. Year-to-date, DPS
has expended $1.6 million for a grant to the Maricopa
County Sheriff’s Office from the FY 2013 non-lapsing $2.6
million appropriation for local law enforcement grants.
Included in this amount is $319,500 in third quarter
spending. Per statute, Maricopa County receives $1.6
million annually. Pinal County also is statutorily required
to receive $500,000 annually, but only $352,600 has
been distributed, all in the third quarter. The remaining
$222,600 in total year-to-date expenditures was funded
from the FY 2011 non-lapsing $2.6 million appropriation

(Continued)

and was utilized to fund border detectives and detention
liaison officers. Included in this amount is $85,600 in third
quarter spending. There remains a balance of $73,100 in
the FY 2011, $41,000 in the FY 2012, and $651,700 in the FY
2013 appropriations available for use.
Additionally, the GIITEM Border Security and Law
Enforcement Subaccount received $554,512 in criminal
fine and fee revenues in the third quarter of FY 2013, for a
total of $1.7 million year-to-date. DPS expended $371,100
in the third quarter and $836,100 year-to-date from the
Subaccount for border detectives, detention liaison
officers, and a grant to the Pima County Sheriff’s Office.
(Eric Billings)

May Spending
•

May 2013 General Fund spending of $560.6 million was
$35.0 million higher than May 2012. Year-to-date,
spending is $8.0 billion, or $275.2 million above last year.
FY 2013 Spending

The Department of Education spent $71.0 million
more than in May 2012. The higher expenditure
amount reflects higher General Fund funding for
the agency, as well as increased charter school
enrollment.

May 2013 spending of $560.6 million was $35.0 million
lower than May 2012 (See Tables 6 & 7).

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

May 13

Change from
May 12

120.3
96.8
(3.7)
239.9
17.6
2.0
0.2

15.6
(1.7)
(28.2)
71.0
(6.2)
0.6
(11.5)

1,119.5
851.6
621.9
3,173.4
566.3
41.0
173.6

(181.8)
(4.5)
64.9
100.8
69.4
(2.8)
(1.8)

40.1
0.0

(2.7)
0.0

668.0
84.1

(15.8)
35.1

47.4
560.6

(1.9)
35.0

485.8
7,785.2

11.7
75.2

Year to Date

YTD Change
from FY 12

0.0

0.0

200.0

200.0

560.6

35.0

7,985.2

275.2

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 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, Bldg and Life Safety
State Forester
Arizona Geological Survey
Government Information Tech.
Governor/OSPB
Department of Health Services
Arizona Historical Society
Prescott Historical Society of AZ
Independent Redistricting Comm.
Commission of Indian Affairs
Department of Insurance
Judiciary
Supreme Court
Superior Court
Court of Appeals
Department of Juvenile Corrections

May 13

Change from
May 12

Year-to-Date

YTD Change
from FY 12

1,428.8
73.6
857.4
120,269.9
2,674.8
-

508.3
(19.5)
(91.5)
15,571.6
1,056.9
(78.7)

27,402.9
84,119.8
758.2
7,063.3
1,119,500.8
20,310.4
4.4

13,761.3
35,069.1
(17.0)
(269.9)
(181,805.9)
(10.4)
5,116.2
(590.8)

87.9
2,625.0
64.0
96,776.9
2,538.2
(3,659.5)
239,879.5
447.7
88.0
40.3
98.0
345.1
118.3
2,409.9
93.4
1,099.7
17,578.7
287.8
65.3
621.8
5.7
556.1

8.7
14.4
(1,667.2)
(131.3)
(28,199.7)
70,960.5
(432.5)
59.1
3.0
25.3
74.4
(11.0)
597.3
(15.9)
252.5
(6,212.0)
(1,127.5)
1.5
453.2
(0.7)
(20.4)

702.9
28,875.0
64,192.6
549.0
851,637.0
20,875.2
621,907.3
3,173,387.0
7,085.1
7,000.0
155.6
457.9
748.1
2,652.9
1,665.5
6,895.3
805.6
8,007.6
566,324.1
2,867.6
621.8
2,357.7
48.2
4,529.1

22.7
5,350.0
80.1
(4,494.0)
1,002.9
64,888.7
100,819.5
454.0
(16.9)
(34.9)
14.8
197.3
30.3
1,240.0
(40.1)
3.1
1,771.9
69,371.5
(1,149.7)
(0.3)
(1,431.6)
(2.7)
(303.5)

1,489.9
9,838.0
1,654.6
3,900.9

(844.9)
(357.6)
(75.6)
(759.9)

13,449.7
75,803.6
12,610.0
37,072.7

(1,823.8)
(1,359.4)
(210.1)
(5,318.5)

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – JUNE 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

May 13

Change from
May 12

Year-to-Date

YTD Change
from FY 12

287.2
8.7

18.3
1.2

1,165.9
63.5

35.3
8.7

1,927.2
1,469.2
207.9
506.0
965.0
123.3
13.4
53.4
0.1
2,038.1
2.8
77.1
236.3
4,457.3
153.1
914.3
27.5
556.4
1.1

66.2
90.0
(6.5)
42.6
9.4
(4.1)
2.2
67.8
0.1
617.3
(10.3)
8.0
(37.6)
653.2
(11,492.3)
(2,269.3)
0.5
556.4
(5.3)

15,913.6
10,924.5
1,745.5
6,277.8
7,409.9
1,036.0
110.8
1,118.2
1,396.8
41,031.6
1,980.3
1,368.1
2,241.3
37,844.3
173,563.6
15,045.6
239.2
4,414.3
21.0

(265.4)
(538.9)
(82.3)
1,584.1
(479.9)
(22.5)
(18.5)
(450.1)
(2,830.7)
(833.8)
1.9
45.2
(3,039.8)
(1,811.7)
3,886.8
(1.1)
4,414.3
(30.3)

866.1
17,381.2
5,924.2
15,879.7
613.1
1,389.7
109.0
37.0
560,581.5
560,581.5

609.3
(1,788.1)
(507.4)
(992.8)
(132.0)
14.5
(31.0)
(34.3)
34,986.9
34,986.9

37,089.6
281,768.8
95,661.0
253,517.0
5,065.5
9,016.2
1,431.8
4,304.9
7,785,210.2
200,000.0
7,985,210.2

20,433.7
(19,669.7)
(5,581.7)
(11,011.1)
(2,781.1)
3,767.9
404.5
(10,248.6)
75,158.3
200,000.0
275,158.3

Tracking Arizona’
Arizona’s Recovery

Total NonNon-Farm Employment
2,800

June 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

2009

2011

JAN

JULY

JUL

2010

JAN

JUL

JAN

JUL

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

2009

Jan-13

Apr-13

Jul-12

Oct-12

Jan 12

Apr 12

Oct 11

Apr 11

July 11

Jan 11

Oct 10

Apr 10

July 10

Jan 10

Oct 09

July 09

Jan 09

Apr 09

Oct 08

July 08

Jan 08

Apr 08

Oct 07

July 07

Apr 07

JAN

JULY

JUL

2011

JAN

JUL

2010

JAN

JUL

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

2001
Excludes temporary 1 ¢ sales tax

JLBC

5

2003

2004

JLBC

2005

2006

2007

2010

2011

JAN

JULY

JUL

JAN

JUL

2009

JAN

JUL

2008

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

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

2007

2008

2009

2010

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

2008

2009

2010

JAN

JULY

JUL

2011

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2001

JAN

JAN

JAN

JAN

2011

JULY

JUL

JUL

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2002

JAN

140
JAN

0

JLBC

JAN

JUL

JAN

0
JAN

Jan-13

Apr-13

Jul-12

Oct-12

Jan 12

Apr 12

Oct 11

July 11

Jan 11

Apr 11

Oct 10

Jan 10

July 10

Oct 09

Apr 10

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