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

Summary
July General Fund revenue collections totaled
$754.6 million. Base revenues, which exclude
one-time adjustments, were 5.4% above July of
the prior year. This year-over-year change
excludes the temporary 1-cent sales tax which
expired at the end of May 2013.
July revenues were $8.7 million above the
enacted budget forecast, largely due to
unbudgeted savings related to the refinancing of
several state office building lease-purchase
agreements. Ongoing revenue collections were
$(1.4) million, or (0.2)% below the budget forecast
for the month.

www.azleg.gov/jlbc.htm

“JLBC Staff
preliminarily
estimates that
the FY 2013
ending balance
will total
approximately
$896 million. This
amount is $203
million greater
than

August 2013

FY 2013 Ending Balance Update
At the time of publication of the July Monthly
Fiscal Highlights, the Arizona Department of
Administration had not yet released June
expenditure data. As a result, an estimate of the
FY 2013 ending balance estimate was not
available last month.
Since that time, additional FY 2013 information
has been released. FY 2013 General Fund
revenue collections totaled $9.15 billion
(compared to the previously reported amount of
$9.13 billion). This amount is $175.8 million above
the enacted budget forecast. The FY 2013
amount excludes the transfer of $50 million from
the National Mortgage Settlement to the
General Fund. This shift has been placed on hold
due to ongoing litigation.
Base revenue growth for FY 2013 was 5.2%,
exclusive of one-time adjustments. This growth
was largely driven by Individual Income Tax
estimated and final payments which increased
by 16.3%. This growth was in part caused by the
acceleration of capital gains as a result of
federal fiscal cliff negotiations at the end of
calendar year 2012. If the revenue collections
do reflect only accelerated tax payments, there
may be some offsetting loss to FY 2014.

budgeted...”

In contrast, the 2 revenue categories that
provide the most “real-time” perspective on the
economy – Income Tax withholding and Sales
Tax – both grew by a modest 3.5% in FY 2013.
In terms of overall spending, FY 2013 expenditures
totaled $8.65 billion, an increase of $3.0 million
above the prior year. (Please see the June
spending section for more information).
Including the state’s beginning balance of $397.0
million (which was carried forward from FY 2012)
the total amount of available FY 2013 revenues is
estimated to be $9.55 billion. Given this revenue
level and spending of $8.65 billion, JLBC Staff
preliminarily estimates that the FY 2013 ending
balance will total approximately $896 million. This
amount is $203 million greater than budgeted
and excludes the $450 million in the Budget
Stabilization Fund.
The General Appropriation Act requires that the
Executive Branch provide their own initial
estimate of the FY 2013 ending balance by
September 15, 2013. By law, the Department of
Administration is required to publish its final FY
2013 accounting by December 1, 2013.
Under the enacted June budget and its
associated 3-year spending plan, the FY 2013
ending balance would effectively be spent
down to $0 by FY 2016. The effect of the FY 2013
overage on future budgets will be analyzed in
the months ahead, especially in light of the onetime nature of some gains. The status of the FY
2014 – FY 2016 budget projections will be
updated at the next Finance Advisory
Committee meeting this fall, which is scheduled
for October 4.
In addition to the ending balance, 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-August 2013, the
operating balance was $1.4 billion.

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

Summary
• FY 2013 Ending Balance Update......................1

• DHS – Report on Arnold v. Sarn ........................ 7

July Revenues..........................................................2

June Spending ........................................................ 8

Economic Indicators ..............................................4
Summary of Recent Agency Reports
• DES – Report on CPS ...........................................7

Tracking Arizona’s Recovery.............Appendix A

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

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

July Revenues
Table 1

July
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2014
Collections
$ 754.6
$ 754.6

Sales Tax collections of $339.2 million were 5.4%
above July 2012 and $0.6 million above the
forecast for the month. The year-over-year
change amounts exclude the temporary 1cent sales tax which expired at the end of May
2013.

“Contracting
collections have
generally been
much more
volatile than
retail. However,
the July increase
of 16.3%
represents the
fourth
consecutive
month of
double-digit
increases…”

Table 2 displays the July growth rates for the
largest sales tax categories.
Retail and contracting together account for
about 60% of all sales tax revenues. July retail,
which reflects June sales, increased by 8.8%.
Contracting collections have generally been
much more volatile than retail. However, the
July increase of 16.3% represents the fourth
consecutive month of double-digit increases
compared to the same month in the prior
year.
Table 2

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

July
8.8%
16.3%
1.6%
0.7%
1.7%

YTD
8.8%
16.3%
1.6%
0.7%
1.7%

Individual Income Tax net revenues were
$306.6 million in July, which was 6.5% or $18.7
million greater than the prior year. Collections
were $1.5 million above the forecast for the
month.
As indicated in Table 3, withholding was up
7.8% in July. This amount is $(4.1) million below
the forecast.
July estimated and final payments of $19.0
million were 27.1% above last year, and were
$0.8 million above forecast.
July refunds of $(19.1) million were $(7.5)
million greater than last year’s amount, and
were $0.8 million above forecast.

Difference From
Budget Forecast
$ 8.7
$ 8.7

Difference
From FY 2013
$ 6.1
$ 6.1

Table 3
Individual Income Tax Growth Rates
Compared to Prior Year
Withholding
Estimated +
Final Payments
Refunds

July
7.8%

YTD
7.8%

27.1%
64.7%

27.1%
64.7%

Corporate Income Tax net collections were
$25.1 million in July, which is $4.3 million greater
than July of the prior year. Collections were
$(0.6) million below the forecast.
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 $104.8
million in July were up $7.2 million, or 7.4%,
compared to July of last year.

3
Table 4

General Fund Revenue:
Change from Previous Year and FY 2014 Enacted Budget Forecast
July 2013

Actual
July 2013

Current Month
Change From
July 2012*
Enacted Forecast
Percent
Percent
Amount
Amount

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

$339,218,789
306,584,861
25,081,508
167,864
2,050,000
2,830,000
36,604,607
0
51,604

$17,329,605
18,729,342
4,295,956
(31,051)
87,842
(699,050)
(904,071)
0
4,031

Sub-Total Taxes

$712,589,233

$38,812,604

Other Revenue
Lottery
License, Fees and Permits
Interest
Sales and Services
Other Miscellaneous
Disproportionate Share
Transfers and Reimbursemen
Sub-Total Other Revenue
TOTAL BASE REVENUE
Other Adjustments
Urban Revenue Sharing
Budget Plan Transfers
Sales Tax - 1¢ Increase
Sub-Total Other Adjustments
TOTAL GENERAL FUND REVENUE

0
2,369,295
1,028
835,299
734,754
0
654,493

0
(456,021)
413
308,987
(1,886,586)
0
(263,123)

$4,594,869

($2,296,330)

$717,184,102

$36,516,274

Actual
July 2013

FY 2014 YTD (One Months)
Change from
July 2012*
Enacted Forecast
Percent
Percent
Amount
Amount

5.4 %
6.5
20.7
(15.6)
4.5
(19.8)
(2.4)
-8.5

$632,759
1,518,624
(616,989)
(32,136)
0
0
(1,695,393)
0
(23,396)

0.2 %
0.5
(2.4)
(16.1)
0.0
0.0
(4.4)
-(31.2)

$339,218,789
306,584,861
25,081,508
167,864
2,050,000
2,830,000
36,604,607
0
51,604

$17,329,605
18,729,342
4,295,956
(31,051)
87,842
(699,050)
(904,071)
0
4,031

5.8 %

($216,531)

(0.0) %

$712,589,233

$38,812,604

-(16.1)
67.2
58.7
(72.0)
-(28.7)

0
(430,705)
1,028
(164,701)
(765,246)
0
154,493

-(15.4)
-(16.5)
(51.0)
-30.9

0
2,369,295
1,028
835,299
734,754
0
654,493

0
(456,021)
413
308,987
(1,886,586)
0
(263,123)
($2,296,330)

(33.3) %

($1,205,131)

(20.8) %

$4,594,869

5.4 %

($1,421,662)

(0.2) %

$717,184,102

(46,750,100)
81,541,148
2,611,367

(3,951,430)
51,541,148
(78,040,390)

9.2
171.8
(96.8)

0
7,541,148
2,611,367

37,402,415

(30,450,672)

(44.9) %

10,152,515

0.0
10.2
--

$36,516,274

5.4 %
6.5
20.7
(15.6)
4.5
(19.8)
(2.4)
-8.5

$632,759
1,518,624
(616,989)
(32,136)
0
0
(1,695,393)
0
(23,396)

0.2 %
0.5
(2.4)
(16.1)
0.0
0.0
(4.4)
-(31.2)

5.8 %

($216,531)

(0.0) %

-(16.1)
67.2
58.7
(72.0)
-(28.7)

0
(430,705)
1,028
(164,701)
(765,246)
0
154,493

-(15.4)
-(16.5)
(51.0)
-30.9

(33.3) %

($1,205,131)

(20.8) %

5.4 %

($1,421,662)

(0.2) %

(46,750,100)
81,541,148
2,611,367

(3,951,430)
51,541,148
(78,040,390)

9.2
171.8
(96.8)

0
7,541,148
2,611,367

0.0
10.2
--

37.3 %

37,402,415

(30,450,672)

(44.9) %

10,152,515

37.3 %

$754,586,517

$6,065,602

0.8 %

$8,730,853

1.2 %

$754,586,517

$6,065,602

0.8 %

$8,730,853

1.2 %

$104,798,917

$7,222,392

7.4 %

$6,246,626

6.3 %

$104,798,917

$7,222,392

7.4 %

$6,246,626

6.3 %

Non-General Funds
Highway User Revenue Fund

* July Sales Tax collection amounts and change from July 2012 figures exclude the temporary 1¢ increase that expired at the end of May 2013.

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

Recent Economic Indicators
NATIONAL

“GDP increased
at an annual rate
of 1.7% in the
second
quarter…
estimates were
rebased for
recent prices
and a new
method for
measuring
intellectual
property.”

According to the U.S. Department of
Commerce Bureau of Economic Analysis, the
U.S. Real Gross Domestic Product (GDP)
increased at an annual rate of 1.7% in the
second quarter of 2013. This estimate is little
changed from the estimate of 1.8% for the first
quarter. Consumption spending, exports, and
private domestic investment increases more
than offset decreases in federal government
spending in the quarter. In the latest release,
GDP estimates were rebased for recent prices
and a new method for measuring intellectual
property.
The Conference Board’s U.S. Consumer
Confidence Index fell (2.2)% in July, after
several months of large increases. The index still
shows significant growth of 22.8% over the
reading in July 2012. The recent monthly
decrease was due to a slight decline in the 6month outlook on the job market and overall
economy.

last year, which is the thirty-third 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 2.8% over the next 6 months.
This is higher than the revised 2.3% growth
projection in May and higher than the 2.6%
projection in June 2012.

The Conference Board’s U.S. Leading Economic
Index remained flat in June, after reaching its
highest post-recession reading in May. A
decrease in the new building permit
component of the index kept the overall index
from improving in June.

Housing

Consumer prices, as measured by the U.S.
Consumer Price Index (CPI), increased 0.2% in
July and 2.0% above July 2012 prices. Monthly
price increases were broad-based, spanning
shelter, gas, medical care, new vehicles,
clothing, and food. Core inflation (all items
except food and energy) grew by 0.2% during
the month. July increases to gasoline prices
were largely offset by decreases in other
energy areas such as natural gas and
electricity.

The total housing inventory in the Greater
Phoenix area decreased from 20,384 in July
2012 to 20,049 in July 2013, a (1.6)% decrease.
This continues the decline in inventory that
started in January 2011.

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 June, 29 out of 50 states had increases in their
coincident indexes. Arizona’s coincident index
increased by 0.2% compared to the prior month.
Year-over-year, the Arizona index is 2.2% above

The number of Maricopa County pending
foreclosures decreased from 8,027 in June to
7,191 in July. The July total is significantly
below the peak in December 2009 (51,466).
See Appendix A – Tracking Arizona’s Recovery.

Another measure of the health of the Arizona
real estate market is permitting activity. For
the 3-month period through June, a total of
1,818 single-family building permits had been
issued statewide, a 12.3% 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 seen
recent gains, with the 3-month period ending
in June resulting in a total of 592 multi-family
building permits being issued in the state.
However, this figure remains well below the
peak of activity in April 2007.

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

Recent Economic Indicators (Continued)
Employment
According to the Arizona Department of
Administration’s employment report for July,
the state lost a total of (15,100) net nonfarm
jobs between June and July. Due to seasonal
variations in employment, month-over-month
job losses are typical for July. The July job loss
this year was the smallest in 8 years. Almost all
of the July net job losses occurred in the
government sector (-9,600) and the leisure
and hospitality industry (-4,800).
“The state
unemployment
rate was
unchanged at
8.0% in July. This
means that the
Arizona jobless
rate has
remained
essentially
unchanged since
November 2012.”

Compared to July 2012, nonfarm
employment in July 2013 was up by 2.8% or
67,600 jobs, the largest year-over-year net
gain since January 2007. The largest
contributors to these gains were the following
sectors of the economy: leisure and
hospitality (+13,000), education and health
services (+12,000), and trade, transportation
and utilities (+9,600).
Although July saw an acceleration in the
year-over-year increase in payroll
employment, the average job growth rate for
the first 7 months of CY 2013 is a modest 2.1%.
As of July, total nonfarm employment
remained (9.8)%, or (265,800) jobs, below
peak employment in December 2007. See
Appendix A – Tracking Arizona’s Recovery.
The state unemployment rate was unchanged
at 8.0% in July. This means that the Arizona
jobless rate has remained essentially
unchanged since November 2012. By way of
comparison, the U.S. unemployment rate
declined from 7.8% in November 2012 to 7.4%
in July 2013.
State Agency Data
At the beginning of August, total AHCCCS
caseloads equaled 1.28 million members, a
(0.2)% decrease from the prior month.
Overall, AHCCCS caseloads are currently
(0.9)% below August 2012 levels. The
traditional acute care AHCCCS population,
which consists primarily of lower income
children and their parents, remained about
the same since last month while decreasing
(0.6)% 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 (151,371) since then
to 73,121. As a whole, the Proposition 204

program has declined (0.7)% compared to
the prior month, and (14.2)% from the prior
year. KidsCare I provides coverage for 6,975
children with incomes above those in the
traditional population. Its enrollment has
declined since a freeze was implemented in
January 2010. Enrollment declined (1.3)%
compared to the prior month and (26.1)%
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 August,
37,747 children were enrolled in KidsCare II.
There were 35,919 TANF recipients in the state
in June, a monthly caseload decrease of
(2.3)%. Year-over-year, the number of TANF
recipients has declined by (9.9)%. The
statutory lifetime limit on cash assistance is
24 months.
The appropriation for TANF cash assistance in
the FY 2013 budget funded 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 June, there
were a total 1.1 million food stamp recipients
in the state, a 0.4% increase over the prior
month. Compared to the same month last
year, food stamp participation was down by
(0.9)%. 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 40,607 inmates in July
2013. Relative to the prior 3-month period,
the population has increased by 95 inmates.
Compared to a year ago, the population has
increased by 729 inmates.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 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)

Time Period

Current Value

Change From
Prior Period

Change From
Prior Year

July
July
June
July
July
July
June
May-July
May-July

8.0%
25,052
41,455
2.45 million
156,800
126,200
41.9
$43.9 million
$164.8 million

0.0 %
13.0%
0.7%
(0.6)%
0.2%
(0.6)%
1.0%
6.0%
(2.4)%

(0.4)%
(9.1)%
(28.7)%
2.8%
0.6%
6.9%
(0.7)%
17.9%*
7.5%*

Apr-Jun
Apr-Jun

1,818
592

4.7%
0.4%

12.3%
271.8%

May
May

9,843
1,608

6.6%
2.2%

2.0%
5.1%

May
May
May

$185,000
$122,000
134.97

2.0%
1.8%
1.9%

25.9%
27.1%
20.6%

July

7,191

(10.4)%

(56.6)%

July
June
June
May

20,049
3.49 million
$49.08
$4.58

2.8%
(0.7)%
(14.7)%
0.2%

(1.6)%
(0.2)%
0.5%
26.9%

2nd Quarter 2013
June
Apr-Jun
1st Quarter 2013
July 1, 2012
August

June
June
May-July

69.6
181.54
2.8%
$238.0 billion
6.55 million
1,276,094
889,074
73,121
147,482
6,975
37,747
53,850
67,845
35,919
1,106,860
40,607

May
May

17,748
25,328

2nd Quarter 2013
(1st Estimate)
July
June
Apr-June
July

$15.7 trillion

1.7%

1.4%

80.3
95.3
$4.76 billion
233.3

(2.2)%
0.0%
3.5%
0.2%

22.8%
2.8%
10.6%
2.0%

* Excludes the temporary 1¢ increase that expired at the end of May 2013.

N/A
0.2%
0.4%
(1.5)%
N/A
(0.2)%
0.0%
(1.3)%
(0.1)%
(1.3)%
(0.6)%
0.2%
(0.4)%
(2.3)%
0.4%
95 inmates
26
49

1.5%
2.2%
0.2%
2.5%
1.3%
(0.9)%
(0.6)%
(30.6)%
(2.8)%
(26.1)%
203.4%
2.4%
8.3%
(9.9)%
(0.9)%
729 inmates
(435)
(253)

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

Summary of Recent Agency Reports
Department of Economic Security (DES) - Monthly Report
on CPS - Pursuant to Laws 2013, Chapter 1, DES has
submitted the July financial and program accountability
report. According to the report, out-of-home placements
increased from 14,541 in April 2013 to 14,632 in May 2013.
Caseloads are above the department’s goals, and
turnover for Child Protective Services (CPS) case
managers for the month was approximately 3.4%. The
highlights of this report are summarized below.
•

The CPS Training Academy had 222 new CPS case
managers in training as of May, or (3) fewer than in
April.
•
As of May, the number of filled case manager
positions was 1,199, including those in training, an
increase of 6 positions from April. In May, caseloads
per worker remained considerably higher than
caseload goals but were better than the prior month.
In May, caseloads were 75% 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 81% above caseload goals in
April.
•
DES reports that monthly case manager turnover
during May was 3.4%, up from a 1.8% rate in April.
•
In addition to 3,143 continuing in-home cases, an
increase of 37 from April, there were 2,074 new inhome cases in May, a decrease from (322) from April.
The number of closed in-home cases in May was
2,359, compared to 2,139 in April.
•
There were 1,237 new out-of-home children in May, a
decrease of (258) from April. The total number of
continuing out-of-home children increased to 13,395
in May from 13,046 in April. The number of children
who left CPS care in May was 1,146, which is down
when compared to 1,268 in April.
•
The ratio of filled supervisor positions to filled CPS case
manager positions increased from the April level of
about 1:5 to 1:7 in May.
•
DES plans to spend $740.0 million from all funds on
CPS in FY 2014, an increase of 12.9% from $655.3
million in FY 2013.
(Ben Beutler)
Department of Health Services – Report on Arnold v. Sarn –
Pursuant to a FY 2013 General Appropriation Act footnote,
the Department of Health Services (DHS) has submitted
the fourth quarter report on settling the Arnold v. Sarn
lawsuit.
The state has been a longstanding defendant in the
Arnold v. Sarn litigation concerning the level of services
provided to the Seriously Mentally Ill (SMI) population. Due
to the state’s fiscal condition, the plaintiffs and the state
agreed in March 2010 to suspend the lawsuit for 2 years
because of insufficient funding. The latest agreement with
the plaintiffs does not contain exit criteria or a schedule for
compliance.

The latest agreement focuses on the conditions for
admission and the length of stay for Arnold class members
at the Arizona State Hospital (ASH). DHS and the Regional
Behavioral Health Authorities (RBHAs) have continued to
coordinate discharges to provide appropriate community
support and services, in addition to ensuring that ASH has
a census of 55 or fewer class members. DHS did not
exceed this limit at any time during the fourth quarter.
As agreed upon by the parties, DHS has not encouraged,
recommended, or provided funding for class members in
supervisory care homes, as the department has secured
alternative housing for class members in these homes.
During the fourth quarter, 23 additional class members
received community based housing.
The latest agreement also focuses on employment
support for class members. DHS reports that employment
remained virtually flat during the fourth quarter. Of the
Non-Title XIX class members, 7.6% received supported
employment services, 39.2% received rehabilitation
services (i.e., skills training, peer support, or pre-vocational
training), and 19.3% worked part- or full-time.
The agreement further states that DHS will implement
Quality Service Reviews (QSR) in order to evaluate network
sufficiency, identify service gaps, and maximize customer
satisfaction. DHS contracts with an independent third
party to perform QSRs, which include chart reviews and
inquiries with clients and families. (Matt Gress)
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. In FY
2013, the GIITEM Fund was appropriated $2.6 million in
General Fund monies for grants to local law enforcement
agencies to help with border security. During the fourth
quarter of FY 2013 DPS expended $325,900 in GIITEM
Immigration Enforcement Grant monies, bringing the yearto-date total to $2.4 million. Year-to-date, DPS has
expended $1.6 million for a grant to the Maricopa County
Sheriff’s Office and $500,000 for a grant to the Pinal
County Sheriff’s Office. Both distributions are required by
statute. The remaining $327,900 in total year-to-date
expenditures was utilized by DPS to support local law
enforcement operations.
Additionally, the GIITEM Border Security and Law
Enforcement Subaccount received $656,007 in criminal
fine and fee revenues in the fourth quarter of FY 2013, for a
total of $2.4 million year-to-date. DPS expended $412,100
in the fourth quarter and $1.2 million year-to-date from the
Subaccount for border detectives, detention liaison
officers, and a grant to the Pima County Sheriff’s Office.
(Eric Billings)

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

June Spending
At the time of publication of the July Monthly Fiscal
Highlights, the Arizona Department of Administration
had not yet released June expenditure data. As a result,
this month’s edition includes a discussion of June 2013
and FY 2013 total expenditures.
June 2013 General Fund spending totaled $620.2 million,
while the state posted an additional $36.7 million of
transactions during the “13th month” as the state closed
the books for the fiscal year. During the “13th month”
state agencies are able to continue to process FY 2013
expenditure transactions into July so as to properly
account for obligations incurred during FY 2013.
Year-to-date, FY 2013 spending totaled $8.65 billion,
which is $3.0 million above the prior year. (See Tables 6 &
7).

•

•

•

•

Among the most significant changes in overall FY 2013
spending were:
•

The state’s total General Fund debt service level
increased by $40.7 million, which includes: $35.1
million related to the state’s FY 2010 operating
financing and $5.6 million for the Phoenix
Convention Center.

Table 6

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

•

AHCCCS expenditures were $(139.5) million below
the prior year, due to declining enrollment as a
result of the freeze on new participants in the
childless adult program since July 2011.
Department of Education spent $50.1 million more
than the prior year. The higher expenditure amount
reflects increased funding for the K-3 reading
program, increased per-pupil district and charter
school funding and $21.9 million to repay the annual
K-12 rollover for school districts with fewer than 600
students.
Department of Health Services expenditures
increased by $72.3 million, mostly due to $38.7
million of increased funding for non-Medicaid
behavioral health services and $33.9 million to
backfill spending which was previously sourced from
Other Funds.
In FY 2013 the state began a multi-year funding
process for various IT projects, which are funded
through the Automation Projects Fund overseen by
the Department of Administration. This lead to an
increase of $16.8 million in FY 2013.
A significant declining component of FY 2013
spending was the state’s deposit to the Budget
Stabilization Fund, which declined by $(50.0) million
as the state deposited $200.0 million in FY 2013
compared to $250.0 million in FY 2012.

General Fund Spending ($ in Millions)
Year-to-Date

YTD Change
from FY 12

June 13

13th Month

155.3
84.6
5.4
287.4
14.8
2.3
0.1

0.5
18.9
0.2
4.7
4.7
0.9
0.0

1,275.3
955.2
627.5
3,465.4
585.9
44.3
173.7

(139.5)
3.3
37.5
50.1
72.3
(4.3)
(1.8)

35.6
0.0

0.0
0.0

703.6
84.1

(26.6)
35.1

34.7
620.2

6.8
36.7

534.6
8,449.6

0.0

0.0

200.0

620.2

36.7

8,649.6

26.9
53.0
(50.0)
3.0

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

Table 7
General Fund Spending
($ in Thousands)
Agency
Department of Administration
ADOA – Automation Projects Fund
ADOA – Capital Projects
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

June 13

13th Month

YTD Change
from FY 12

Year-to-Date

1,042.7

709.1

12,267.9

(4,117.9)

-

-

16,800.0

16,800.0

686.7

-

1,309.2

1,309.2

69.6

-

84,119.8
827.8

35,069.1
(11.8)

819.9

134.6

8,017.8

(134.5)

155,286.5

512.3

1,275,299.6

(139,505.8)

-

-

-

(10.4)

2,936.3

134.6

23,381.3

5,762.3

0.1

-

4.4

(693.4)

61.0

-

763.9

21.9

2,625.0

-

31,500.0

-

-

-

68,932.8

(5,411.5)

51.0

0.3

600.3

0.2

84,619.2

18,913.8

955,169.9

3,284.1

154.4

511.9

21,541.5

738.5

5,420.3

202.4

627,530.0

37,482.5

287,406.8

4,655.5

3,465,449.3

50,076.5

591.3

346.9

8,023.2

991.1

-

-

7,000.0

-

Office of Equal Opportunity

21.9

-

177.5

(13.7)

State Board of Equalization

49.0

9.8

516.8

(18.9)

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

72.6

3.5

824.1

11.8

282.8

16.7

2,952.4

207.3

57.5

0.1

1,723.2

(25.3)

210.7

(6.9)

7,099.1

844.3

66.0

-

871.7

(4.6)

-

-

-

3.1

1,317.2

718.0

10,042.8

3,460.5

14,796.3

4,732.2

585,852.5

72,263.0

194.3

-

3,061.9

(1,166.9)

48.7

-

670.6

(1.0)

231.0

-

2,588.7

(1,505.2)

4.1

1.2

53.4

(1.9)

433.9

18.0

4,980.9

(217.0)

Supreme/Superior Court

4,609.5

538.6

94,401.5

(1,036.9)

Court of Appeals

1,248.7

66.5

13,925.1

(328.9)

Independent Redistricting Comm.
Commission of Indian Affairs
Department of Insurance
Judiciary

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – AUGUST 2013

General Fund Spending (Continued)
($ in Thousands)
Agency
Department of Juvenile Corrections
State Land Department
Law Enforcement Merit System

June 13

13th Month

Year-to-Date

YTD Change
from FY 12

3,854.9

398.7

41,326.3

(5,832.3)

38.8

13.3

1,217.9

(17.7)

5.5

0.5

69.5

3.4

378.2

16,090.9

504.4

-

11,850.5

(433.1)

Legislature
Auditor General

(200.9)

House of Representatives

926.0

Joint Legislative Budget Comm.

133.6

-

1,879.1

(89.6)

Legislative Council

439.7

-

6,717.5

1,741.8

Senate

620.0

-

8,029.9

(427.9)

110.5

44.7

1,191.3

(4.5)

7.9

1.0

119.7

(16.5)

Mine Inspector
Nav. Streams & Adjudication
Phoenix Convention Center
Pioneers’ Home
Comm. for Postsecondary Ed.

-

-

5,595.0

5,595.0

22.3

26.2

1,166.6

(468.5)

-

-

1,396.8

-

2,325.2

949.4

44,306.1

(4,286.1)

Arizona Department of Racing

33.0

16.3

2,029.5

(789.2)

Radiation Regulatory Agency

60.3

8.0

1,436.5

(14.1)

Real Estate Department

325.0

98.1

2,664.4

6.8

Department of Revenue

5,562.4

1,625.4

45,032.2

(109.1)

141.9

23.3

173,728.7

(1,783.8)

1,191.9

147.0

16,384.5

3,129.6

16.9

1.1

257.2

0.4

1,221.2

371.6

6,007.1

6,007.1

0.0

29.4

50.4

(0.5)

99.4

0.8

37,189.7

20,202.8
(24,954.0)

Department of Public Safety

School Facilities Board
Secretary of State
Tax Appeals Board
Office of Tourism
Department of Transportation
Universities
Board of Regents
Arizona State University
Northern Arizona University
University of Arizona

15,513.7

-

297,282.5

5,924.2

-

101,585.2

(6,666.7)

14,045.5

-

267,562.5

(15,223.1)

Department of Veteran Services

307.8

5.0

5,378.4

(3,004.1)

Department of Water Resources

1,853.3

258.9

11,128.3

5,304.4

Department of Weights & Measures

71.3

-

1,503.1

320.7

Other - JP Salaries Distribution

95.0

52.0

1,106.7

69.8

Other

-

-

71.2

155.3

Total
Budget Stabilization Fund Deposit

620,162.0
-

36,668.0
-

8,449,637.2
200,000.0

53,000.5
(50,000.0)

Grand Total

620,162.0

36,668.0

8,649,637.2

3,000.5

Tracking Arizona’
Arizona’s Recovery

Total Non‐
Non‐Farm Employment
2,800

August 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

2007

2008

2009

2010

2011

JUL

JAN

JULY

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

JAN

2004

2012 2013

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

Apr‐13

Jul‐12

Oct‐12

Jan 12

Oct 11

Apr 12

Apr 11

July 11

Jan 11

Oct 10

Apr 10

July 10

Jan 10

Oct 09

Jan 09

Apr 09

July 09

Oct 08

July 08

Jan 08

Apr 08

Oct 07

July 07

Apr 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 2013

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

2008

2009

2010

2011

JAN

JULY

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

2002

2012 2013

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

2010

2011

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

2012

2013

7

JLBC

2002

2003

2004

2005

2006

2007

2008

2010

2011

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.

JAN

JULY

JAN

JUL

JAN

JUL

JUL

2009

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2001

JAN

JAN

JUL

JAN

JAN

JULY

JUL

JUL

JAN

JAN

JUL

JAN

JUL

JUL

2007

JAN

JAN

JUL

JAN

JUL

JAN

JUL

JAN

JUL

JUL

2002

JAN

140
JAN

0

JLBC

JAN

JAN

JUL

0
JAN

Jan‐13

Apr‐13

Jul‐12

Oct‐12

Jan 12

Oct 11

Apr 12

July 11

Jan 11

Apr 11

Oct 10

July 10

Jan 10

Apr 10

Oct 09

Jan 09

July 09

Oct 08

Apr 09

July 08

Jan 08

Apr 08

Oct 07

July 07

Jan 07

Apr 07

Oct 06

July 06

10,000

$0

2013

8