JLBC - Monthly Fiscal Highlights

December 2015

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

November 2015 General Fund collections of
$729.5 million were 23.2% above the prior year,
and were $84.4 million above the enacted
budget forecast. The significant overall revenue
growth rate was in part driven by one-time fund
transfers, however, base November revenues
(excluding Urban Revenue Sharing and Fund
Transfers) also posted a strong increase of 12.2%
above the prior year.
The November forecast gains happened almost
entirely in the state’s “Big 3” revenue categories
(Sales, Individual Income and Corporate
Income Tax).

www.azleg.gov/jlbc.htm

“Year-to-date,
base General
Fund revenues
are 4.8%
above the
prior year, and
are $207.2
million above
forecast.”

Individual Income Tax collections were helped
by a large growth in withholding collections,
which were 14.2% above last year. The surge in
withholding receipts is mostly due to an
additional processing day that occurred this
November – recent withholding results have
suggested a more typical growth rate is in the
2-3% range.
November Corporate Income Tax revenues
grew by $17.1 million above last year. The
forecast actually assumed a decline in
collections for the month. This projected decline
was due to corporate tax reductions that are
being phased in over several years.
While TY 2014 Corporate returns would typically
be filed in April 2015 (FY 2015), it was assumed
that most large Corporate filers would receive
6-month extensions and file returns during
October 2015. As these returns were processed
in November 2015, the state would then realize
a portion of the revenue loss from the tax
reductions.

Given the growth in collections: 1) corporations
are not filing returns using the lower tax rate; or
2) corporate profitability is much higher than
expected. At this time, there is minimal data to
support either scenario.
Sales Tax had a growth rate of 7.3% during
November, which is a rate much higher than in
prior months during FY 2016. However, due to a
lack of data on sales tax categories (such as
broad components of retail purchases) it is
difficult to determine the cause of this month’s
increase.
Year-to-date, base General Fund revenues are
4.8% above the prior year, and are $207.2
million above forecast. Excluding the one-time
tax amnesty, year-to-date revenues are $180.2
million above forecast. (See the November
issue of the Monthly Fiscal Highlights for more
information.)
In comparison to revenue collections of $729.5
million, November 2015 spending was $532.5
million, which is an increase of $53.6 million from
the prior year.
Fiscal year-to-date, General Fund revenues of
$3.66 billion have been offset by $5.15 billion of
expenditures.
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. The operating balance as of
mid-December 2015 is $1.5 billion. In addition,
the state’s Budget Stabilization Fund has a
balance of $459.1 million.

Table of Contents

This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
December 21, 2015.

Summary
November Revenues.............................................. 2
Monthly Indicators .................................................. 4
JLBC Meeting ........................................................... 7
JCCR Meeting .......................................................... 8
Summary of Recent Agency Reports
• ADOA – Investment Yield Restriction ............... 8
• AHCCCS – Emergency Department Report .. 8
• AHCCCS – Uncompensated Care Report ..... 9
• Comm. Colleges – Annual Report ................... 9
• Commerce Authority – Competes Fund ........ 9
• ACJC – Report on CJEF ................................... 11

• DES – Domestic Violence Report ................... 11
• DEQ – E-Licensing Project Report .................. 11
• DHS – IGA/ISA Funds Report ........................... 11
• Mine Inspector – Abandoned Mines ............ 12
• Postsecondary Ed. – Grant Program ............ 12
• Postsecondary Ed. – Teacher Loans ............. 12
• SFB – Child Removal Process .......................... 12
• SFB – Funding Estimates ................................... 12
• ADOT – MVD Wait Times.................................. 13

November Spending ........................................... 13
Tracking Arizona’s Recovery ............ Appendix A

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

November Revenues
Table 1

November
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2016
Collections
$ 729.5
$ 3,655.6

Difference From
Budget Forecast
$ 84.4
$ 207.2

Difference
From FY 2015
$
137.3
$
181.9

Sales Tax collections of $358.4 million were 7.3% above
November of last year and 4.4% above forecast for the
month. Year to date, sales tax collections are up by 3.5%
compared to last year and $11.2 million below forecast.

Table 3

Table 2 below includes the major categories of the state’s
sales tax, which together account for approximately 90%
of total collections.

Withholding
Estimated/Final Payments
Refunds

Among the major categories, retail, along with the
restaurant and bar category performed well in
November. The retail sales tax increased by 11.7%, year
over year, whereas the restaurant and bar sales tax
grew by 12.2%. Prime contracting decreased by (9.3)%,
the smallest decline since March 2015.
As has been discussed in prior months, the retail growth
and contracting decline appears to be related to “TPT
Simplification” legislation enacted in 2013. Beginning in
2015, the tax base for building materials changed from
contracting to retail.
Table 2

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Use
Restaurant & Bar
Utilities

November
11.7%
(9.3)%
9.1%
12.2%
5.8%

YTD
10.2%
(17.6)%
(1.3)%
5.4%
1.6%

Individual Income Tax net revenues were $323.6 million in
November, which were $39.6 million above the prior year
and $37.6 million above forecast for the month. Year-todate, revenue has grown 6.9% over the prior year to a
level that is $135.2 million above forecast.
As indicated in Table 3, withholding increased by 14.2%
for the month and was $35.5 million above the forecast.
The strong month was likely the result of an additional
major processing day compared to November of 2014.
Year-to-date withholding collections are 3.7% above FY
2015 and $58.6 million above the forecast.
November estimated and final payments of $22.2 million
were 26.3% above last year and $7.2 million above the
forecast. Year-to-date, payments are $60.9 million
above the budget forecast.
November Individual Income Tax refunds totaled $(18.7)
million – this compares to $(14.0) million in November
2014 and a forecasted amount of $(13.6) million. Yearto-date, lower-than-expected refunds have led to a
$15.7 million gain compared to the enacted forecast.

Individual Income Tax Growth Rates
Compared to Prior Year
November
14.2%
26.3%
33.8%

YTD
3.7%
16.3%
(11.4)%

Corporate Income Tax net collections were $20.6 million
in November, which was $17.2 million more than the
prior year. Collections for the month were $33.9 million
above the forecast. Year to date, collections are $65.4
million above forecast.
Lottery General Fund collections year-to-date have
increased by 21.3% compared to the prior year and are
$2.3 million above the forecast. Information regarding
ticket sales during FY 2016 is not available at this time.
Insurance Premium Tax collections of $50,000 in
November were $(0.3) million below the prior year and
$(1.2) million below forecast. Year-to-date, collections
are $5.2 million above forecast.
Highway User Revenue Fund (HURF) collections of $108.4
million in November were up 5.8% compared to
November of last year and were $4.9 million above
forecast while year-to-date collections are $18.4 million
above forecast and 6.1% above last year.
Other Miscellaneous collections of $3.7 million in
November were $(1.3) million below last year and $0.9
million above forecast. Year-to-date collections are
$(0.9) million below forecast. During the month of
October the Department of Revenue (DOR) made a
significant positive transaction under this category, and
a corresponding negative transaction occurred in
November. The October and November issues of the
Monthly Fiscal Highlights have excluded these
transactions to more accurately represent the General
Fund revenue results in both months.
Due to the implementation of a new accounting
system, DOR has made technical adjustments to prior
month collection figures. For November, DOR has
deducted $(1.6) million from prior General Fund revenue
collections, and the adjustment has been included in
the reported year-to-date results.

3
Table 4

General Fund Revenue:
Change from Previous Year and Budget Forecast
November 2015
Current Month

FY 2016 YTD (Five Months)

Change From
Actual

November 2014

November 2015

Amount

Change from
Budget Forecast

Percent

Amount

Actual

Percent

November 2014

November 2015

Amount

Budget Forecast

Percent

Amount

Percent

Taxes
Sales and Use

$358,438,490

$24,379,706

323,581,752

39,614,394

14.0

37,595,499

20,601,844

17,151,589

497.1

33,911,547

Property

4,649,544

2,154,298

86.3

224,921

Luxury - Tobacco

2,392,025

330,359

16.0

0

2,813,925

8,532

0.3

0

Income - Individual
- Corporate

- Liquor
Insurance Premium
Other Taxes
Sub-Total Taxes

48,839

(267,811)

2,167,103

1,754,316

$714,693,522

$85,125,383

7.3 %

$15,003,489

4.4 %

$1,768,554,473

$59,054,020

3.5 %

1,667,970,033

107,884,543

6.9

135,198,221

8.8

189,352,161

8,865,382

4.9

65,397,316

52.8

5.1

13,179,687

7,141,109

118.3

5,313,405

67.5

0.0

10,561,105

613,229

6.2

847,286

8.7

0.0

12,717,447

(37,244)

(0.3)

(362,022)

(2.8)

13.1
--

(84.6)

(1,222,548)

(96.2)

425.0

1,779,519

459.1

13.5 %

$87,292,427

13.9 %

138,779,785
2,335,692

8,342,098
(111,038)

$3,803,450,383

$191,752,101

12,931,475

2,266,875

6.4
(4.5)
5.3 %

$7,904,065

4,020,046
(50,200)
$218,268,119

0.4 %

3.0
(2.1)
6.1 %

Other Revenue
Lottery
License, Fees and Permits
Interest

0

0

2,505,337

265,588

11.9

100,023

1,524

250

19.6

(38,811)

Sales and Services

1,439,657

Other Miscellaneous

3,746,055

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

0
(797,555)
$6,895,019
$721,588,541

250,490
(1,261,195)
0
(5,759,981)
($6,504,847)
$78,620,536

--

0

-4.2

21.3

2,294,285

21.6

12,168,000

(82,869)

(0.7)

(250,846)

(2.0)

(96.2)

9,501

(3,432)

(26.5)

(1,684,569)

(99.4)

21.1

(115,467)

(7.4)

4,582,292

(2,487,395)

(35.2)

(2,991,376)

(39.5)

(25.2)

925,339

32.8

8,985,213

(1,988,041)

(18.1)

(908,436)

(9.2)

--

0

-(48.5) %
12.2 %

(3,797,555)
($2,926,471)
$84,365,956

--

0

0

--

7,462,425

(11,491,257)

(29.8) %

$46,138,905

($13,786,119)

13.2 %

$3,849,589,288

$177,965,981

-(60.6)
(23.0) %
4.8 %

0
(7,537,575)
($11,078,517)
$207,189,602

-(50.3)
(19.4) %
5.7 %

Other Adjustments
Urban Revenue Sharing
One-Time Transfers
Sub-Total Other Adjustments
TOTAL GENERAL FUND REVENUE

(50,469,528)

275,114

--

(3)

0.0

58,382,000

58,382,000

--

0

0.0

7,912,472

58,657,114

-- %

$729,501,013

$137,277,650

23.2 %

$84,365,953

13.1 %

$108,351,314

$5,933,260

5.8 %

$4,919,425

4.8 %

(3)

(0.0) %

(252,347,639)
58,382,000
(193,965,639)

1,375,576
2,512,953

-4.5

(14)
0
(13)

0.0
0.0

3,888,529

-- %

0.0 %

$3,655,623,649

$181,854,510

5.2 %

$207,189,588

6.0 %

$549,601,379

$31,423,559

6.1 %

$18,402,984

3.5 %

Non-General Funds
Highway User Revenue Fund

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Monthly Indicators
NATIONAL

ARIZONA

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 2.1% in the
third quarter of 2015. This estimate represents a
slowdown from the 3.9% growth in the second quarter of
2015. The deceleration was primarily due to a reduction
in inventory investment and slower growth in
consumption, state and local government spending,
residential and non-residential investment and exports.
Declining performance in these categories was partly
offset by deceleration in imports.

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.

The Conference Board’s U.S. Consumer Confidence
Index fell (8.7) points, to 90.4 in November. Year-overyear growth dropped to (0.7)%, the first negative annual
percentage change since October 2013. The decrease
was the result of widespread pessimism over both
present economic conditions and the 6-month outlook.
Declining sentiment over the labor market was the
leading driver of the negative change. The index’s
November results have surprised economists, given the
largely positive jobs report released during the time of
the study.
The Conference Board’s U.S. Leading Economic Index
increased by 0.6% in October, following 3 months of flat
or declining readings. The index stands 3.5% above its
October 2014 reading. Of the index’s 10 components, 9
made positive contributions and 1 made a negative
contribution. Movement in interest rates was once
again the largest positive contributor to the index. The 1
negative contribution came from a decline in
manufacturing orders.
According to the U.S. Department of Commerce Bureau
of Economic Analysis, the U.S. Personal Consumption
Expenditure Price Index (PCEPI) increased 0.1% in
October, relative to September. The measure stands at
just 0.2% above the October 2014 level. The index’s
annual growth has been pulled well below the Federal
Reserve Bank’s (Fed) 2% annual inflation target, largely
due to a (18.4)% year-over-year decrease in energy
prices. Annual growth in the core index (all items except
food and energy), however, has grown by a steadier
1.3% through October. The Fed’s recent announcement
that it will begin increasing short-term interest rates
before the end of 2015 suggests that the bank is
focusing on the measure of core inflation.

Arizona’s coincident index increased by 3.5% compared
to October 2014. Over the same time period, the U.S.
coincident index increased by 3.2%. Currently, Arizona’s
rate of annual coincident index growth is 23rd in the
nation. Last year at this time, Arizona’s rate was 33rd
highest among states. See Appendix A – Tracking
Arizona’s Recovery for additional historical information.
Housing
Single-family housing construction is accelerating, while
multi-family construction has peaked. Arizona’s 12month total of single-family building permits is 21,691,
or 24.3% more than a year ago. The comparable
single-family permit growth rate for the entire U.S. is
8.2%. See Appendix A – Tracking Arizona’s Recovery for
historical information.
The 12-month total of multi-family building permits was
increasing strongly compared to last year, but has
recently leveled off. Arizona’s total of 9,721 multifamily building permits is (1.1)% below 2014. Arizona’s
rate of increase is now significantly less than the
comparable multi-family permit growth for the U.S. as a
whole, which is 16.5% above 2014.
Employment
The state added a net total 29,800 nonfarm jobs from
October to November. The comparable 10-year
average net job increase is 20,600.
Compared to the same month in the prior year,
Arizona added 65,400 net new jobs in November,
which resulted in a year-over-year growth rate of 2.5%.
The year-over-year job gains in November were
concentrated to the following 3 sectors of the
economy: education and health services (+13,800),
leisure and hospitality (+10,900) and trade,
transportation, and utilities (+10,800).
The state’s seasonally adjusted unemployment rate
declined from 6.1% in October to 6.0% in November, the
lowest jobless rate since April. Compared to the same
month last year, the state unemployment rate is down
by (0.6)%. The U.S. jobless rate was unchanged at 5.0%
in November.

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Monthly Indicators (Continued)
In October, the Average Weekly Hours worked by
individuals in Arizona’s private sector was 34.4 hours.
This workload is 0.8% above the October 2014 level.

10.8% more than in September 2014. Compared to
the prior month, the number of out-of-home children
increased by 2.1%.

The Average Hourly Earnings received by these private
sector workers was $23.37, which is 0.5% above the
average in the prior month. October earnings were
2.8% above the average in October 2014. This marks 7
consecutive months of positive year-over-year increases
in average wages.

There were 24,130 TANF recipients in the state in
October, representing a (0.6)% decrease in monthly
caseloads from September. The year-over-year
number of TANF recipients has declined by (19.8)%.
The statutory lifetime limit on cash assistance is 24
months.

Tourism
Revenue per available room reached $72.93 in
October, which was 8.7% above the amount in October
2014. Year to date, revenue per available room is 12.5%
above the 2014 year-to-date amount through October.
Ridership during October through Phoenix Sky Harbor
Airport increased 5.8% above the level in October 2014.

The Supplemental Nutrition Assistance Program
(SNAP), formerly known as Food Stamps, provides
assistance to low-income households to purchase
food. This October, there were 1,004,425 food stamp
recipients in the state, representing a (0.6)%
decrease from September caseloads. Compared to
October of last year, food stamp participation
declined by (5.0)%.

State Agency Data
At the beginning of December 2015, the total AHCCCS
caseload was 1.81 million members. Since the federal
health care expansion in January 2014, the overall
AHCCCS population has grown by 548,115 members.
Total monthly enrollment increased 1.1% during
November.
Population growth during the month was spread evenly
across categories. Enrollment in the Traditional
population of the lowest income parents and children
increased 4,800 to a level of 1.06 million members. The
November level represents an increase of 0.5% since last
month and an 8.8% increase since last year. This growth
was accompanied by an enrollment increase of 3.1%,
or 5,700 members of the Proposition 204 Parents
population.
In January 2014, the state started accepting new
enrollment to the Proposition 204 childless adults
program. In November 2015, the childless adult
population increased by 5,300, or 1.7%. At 308,600, this
population is 11.5% higher than a year ago.
The state also opted to expand adult Medicaid
coverage to 133% of FPL. Their enrollment increased by
2,300 in November and now totals 78,700 individuals.
Enrollment is 141.6% higher than a year ago. The federal
government is currently paying 100% of this cost.
Based on information the Department of Child Safety
provided for September 2015, reports of child
maltreatment totaled 51,207 over the last 12 months, an
increase of 8.0% over the prior year. There were 18,822
children in out-of-home care as of September 2015, or

The Arizona Department of Corrections reported an
inmate population of 42,794. The population
decreased (0.2)% since October. This is a 1.7%
increase since November 2014.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015
Table 5

MONTHLY INDICATORS

Indicator
Arizona
Employment
- Regular Unemployment Rate
- Total Unemployment Rate (discouraged/underemployed)
- Initial Unemployment Insurance Claims
- Unemployment Insurance Recipients
- Non-Farm Employment - Total
Manufacturing
Construction
- Average Weekly Hours, Private Sector
- Average Hourly Earnings, Private Sector
Sales
- Retail Taxable Sales
Motor Vehicles/Misc. Auto
Furniture/Home Furnishings
Building Material/Lawn & Garden
Building
- Residential Building Permits (12-month avg)
Single-family
Multi-family
- Maricopa County/Other, Home Sales (ARMLS)
Single-Family (Pending Sales)
- Maricopa County/Other, Median Home Price (ARMLS)
Single-Family (Pending Sales)
- Phoenix S&P/C Home Price Index (2000 = 100)
- Maricopa Pending Foreclosures
- Greater Phoenix Total Housing Inventory, (ARMLS)
Tourism
- Phoenix Sky Harbor Air Passengers
- National Park Visitors
- State Park Visitors
- Revenue Per Available Hotel Room
General Measures
- Arizona Consumer Confidence Index (1985 = 100)
- Arizona Coincident Index (July 1992 = 100)
- Arizona Leading Index -- 6 month projected growth
- Arizona Personal Income
- Arizona Population
- State Debt Rating
Standards & Poor’s/Moody’s
Outlook
Agency Measures
- AHCCCS Recipients
Acute Care Traditional
Prop 204 Childless Adults
Other Prop 204
Adult Expansion
Kids Care I
Long-Term Care – Elderly & DD
Emergency Services
- Department of Child Safety (DCS)
Annual Reports of Child Maltreatment (12-month total)
DCS Out-of-Home Children
Filled Caseworkers (1406 Budgeted)
- ADC Inmate Growth
- Department of Economic Security
- TANF Recipients
- SNAP (Food Stamps) Recipients
- Judiciary Probation Caseload
Non-Maricopa
Maricopa County
United States
- Gross Domestic Product
(Chained 2009 dollars, SAAR)
- Consumer Confidence Index (1985 = 100)
- Leading Indicators Index (2010 = 100)
- Consumer Price Index, SA (1982-84 = 100)
- Personal Consumption Price Index (2009 = 100)

Time Period

Current Value

Change From
Prior Period

Change From
Prior Year

November
3rd Q 2015
October
August
November
November
November
October
October

6.0%
13.6%
17,117
29,157
2.70 million
157,000
133,300
34.40
$23.37

(0.0)%
(0.2)%
9.6%
(23.0)%
1.1%
0.6%
1.2%
0.0%
0.5%

(0.6)%
(1.5)%
(12.2)%
(32.2)%
2.5%
0.4%
5.5%
0.8%
2.8%

July
July
July

$945.5 million
$328.6 million
$393.6 million

(6.6)%
1.3%
5.5%

11.1%
(1.8)%
26.5%

October
October

21,691
9,721

2.5%
0.6%

24.3%
(1.1)%

October

4,588

(13.2)%

1.5%

October

$225,000

0.0%

9.8%

September
October
October

155.23
4,494
24,652

0.2%
(2.6)%
5.8%

5.3%
(26.3)%
(10.7)%

October
September
August
October

3.71 million
1,256,306
194,241
$72.93

14.4%
(18.7)%
(24.0)%
21.6%

5.8%
2.1%
10.0%
8.7%

3rd Q 2015
October
October
2nd Q 2015
July 2014

84.3
220.57
6.5%
$264.8 billion
6.73 million

6.6%
0.8%
3.8%
4.4%
N/A

17.7%
3.5%
2.0%
4.2%
1.5%

May
May

AA / Aa2
Stable

N/A
N/A

N/A
N/A

December 1st

1,806,257
1,056,024
308,564
187,447
78,747
826
57,643
117,006

1.1%
0.5%
1.7%
3.1%
3.1%
(2.5)%
0.0%
0.7%

13.2%
8.8%
11.5%
12.3%
141.6%
(56.5)%
2.0%
29.6%

September
September
December
November

51,207
18,822
1,279
42,794

October
October

24,130
1,004,425

(0.6)%
(0.6)%

October
October

18,474
27,394

177
130

502
1,294

$16.4 trillion

2.1%

2.2%

90.4
124.1
238.1
109.7

(8.8)%
0.6%
0.0%
0.1%

(0.7)%
3.5%
0.4%
0.2%

3rd Q, 2015
(2nd Estimate)
November
October
November
October

(0.3)%
2.1%
N/A
(0.2)%

8.0%
10.8%
(65)
1.7%
(19.8)%
(5.0)%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

JLBC Meeting
At its December 15, 2015 meeting, the Joint Legislative
Budget Committee considered the following issues:
Arizona Board of Regents – Review of FY 2016 Tuition
Revenues – The Committee gave a favorable review of
the expenditure plan for tuition revenue amounts
greater than the amounts appropriated by the
Legislature and all non-appropriated tuition and fee
revenue expenditures for the current fiscal year. The
Committee added a provision requiring ABOR to report
by January 31, 2016 on the major changes in
combined General Fund and Tuition and Fees budget
in FY 2015 and FY 2016.
Arizona Department of Administration – Review of
Public Safety Broadband – The Committee gave a
favorable review of the annual report on expenditures
for the State and Local Government Grant program
(SLIGP). These monies are part of the nationwide
planning effort associated with a public safety
broadband effort. The Committee added a provision
requiring ADOA to report to the JLBC Staff when they
receive Phase 2 funding from the federal government
and their expenditure plans for the funds.
Arizona Department of Administration – Review of
Automation Projects Fund Expenditure Reallocation –
The Committee gave a favorable review of the
reallocation of the ADOA Arizona Strategic Enterprise
Technology (ASET) Office’s FY 2015 Automation
Projects Fund (APF) appropriation relating to the
replacement of the mainframe at the State Data
Center.
Arizona Department of Administration – Review of
Health Impact Program Update – The Committee gave
a favorable review of ADOA’s health incentives
program for state employees.
JLBC Staff – Consider Approval of Index for School
Facilities Construction Costs – The Committee
approved a 0% adjustment in the cost-per-square- foot
factors used in SFB funding formulas, based on the
overall change in construction costs since November
2008.
AHCCCS/Department of Health Service/Department of
Economic Security – Review of Revised Capitation
Rate Changes – The Committee gave a favorable
review of AHCCCS’ proposed revisions in capitation
rate changes for the state’s Medicaid system. The
proposed rate changes would reimburse Medicaid
health insurers for costs of paying a federal health
insurer fee in 2015.

Department of Child Safety – Review of FY 2016 First
Quarter Benchmarks - The Committee gave an
unfavorable review of the first quarter report on the
progress in increasing the number of FTE Positions and
in reducing the number of backlog cases.
Arizona Department of Administration – Review of
Emergency Telecommunication Services Revolving
Fund Expenditure Plan - The Committee gave a
favorable review of the $6,147,100 wireless services
portion of ADOA’s Emergency Telecommunications
Services Revolving Fund (ETSF) expenditure plan. The
Committee added a provision requiring ADOA to
report to the Committee on the results of the text-to911 network proposal upon the completion of its
review.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

JCCR Meeting
At its December 15, 2015 meeting, the Joint Committee
on Capital Review considered the following issues:

review if there is significant change of scope in the
reallocation.

Cochise Community College District – Review of
Revenue Bond Project – The Committee gave a
favorable review of the $15.2 million Cochise County
Community College District bond project. The project
would finance the renovation of the Sierra Vista
Regional Health Center in order to establish a Nursing
and Allied Health Center on the district’s Sierra Vista
Campus. The project would be financed with the $7.9
million revenue bond issuance, $1.0 million in donations,
and $6.3 million from district reserve funds.

Arizona Lottery Commission – Review of FY 2015 and FY
2016 Building Renewal Allocation Plans - The Committee
gave a favorable review of the Arizona State Lottery
Commission’s building renewal allocation plans of
$97,400 in FY 2015 and $103,600 in FY 2016 out of the
State Lottery Fund. The Committee added a standard
provision requiring review if there is significant change of
scope in the reallocation.

Arizona State University – Review of Student Pavilion –
The Committee gave a favorable review of $39.9 million
in system revenue bond issuances over the next year to
fund the construction of the Student Pavilion, which will
be located on ASU’s Tempe Campus. The bond debt
service would be paid from a combination of ASU’s
existing Student Service Facility Fee and tuition. The
Committee added standard university financing
provisions.
Arizona Department of Corrections – Review of FY 2014,
FY 2015, and FY 2016 Building Renewal Allocation Plans –
The Committee gave a favorable review of ADC’s FY
2014, FY 2015, and FY 2016 Building Renewal
Reallocation Plans. The changes to the FY 2014 Building
Renewal Plan are to account for the actual costs and
bids that ADC encountered for the projects. With the FY
2015 and FY 2016 Building Renewal Plans, a significant
number of the proposed reallocations are to account
for increased costs for air conditioning conversions. The
Committee added a standard provision requiring

Arizona Department of Administration – Consider
Recommending FY 2016 Full and Partial Rent Exemptions
- The Committee recommended full and partial rent
exemptions: the Secretary of State (SOS) was granted a
rent exemption of $238,500 for the Talking Book Library
facility; the Arizona Department of Education was
granted a $32,500 rent exemption due to the State
Board of Education beginning to pay for conference
room space; and SOS and the Independent
Redistricting Commission were granted a partial
exemptions of $13,700 and $14,100, respectively, in light
of the State Parks Board taking over a portion of their
office space.

Summary of Recent Agency Reports
Arizona Department of Administration – Report on
Investment Yield Restriction – Pursuant to A.R.S. 41-707,
the Arizona Department of Administration (ADOA) is
required to annually report by October 1 of each year
any costs associated with the Investment Yield Restriction
requirement for the tax-exempt deficit financing used to
solve the FY 2010 budget shortfall. This restriction limits
the investment return on the state’s operating balance
to the interest rate paid on the outstanding tax-exempt
financing. The state is required to restrict the yield on
investments with a value equal to the current level of
outstanding financing. This requirement replaced the
Working Capital Surplus limitation in May 2014, which
placed limits on the state’s total cash reserves.

ADOA reported that there were no costs associated
with meeting the Investment Yield Restriction
requirements. ADOA stated the requirements have
not reduced the yield of investments and there have
been no penalties paid to the federal government.
(Josh Hope)
AHCCCS – Report on Emergency Department
Utilization – Pursuant to an FY 2016 Health and Welfare
Budget Reconciliation Bill (Laws 2015, Chapter 14)
provision, AHCCCS submitted their report on
emergency department (ED) utilization. Currently
there is no national standard or code set that
identifies whether an ED visit was the result of an

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Summary of Recent Agency Reports (Continued)
emergency or non-emergency situation. Therefore,
AHCCCS continues to use the American College of
Emergency Physicians’ facility coding for the state’s
Medicaid population which assigns visits into 1 of 5
categories. Level I represents conditions such as acute
upper respiratory infection, removal of sutures, or
cough. Conditions such as severe burns or toxic
ingestions would be classified as a Level V visit, the
most severe.

not result in a commensurate increase in profitability,
which was largely due to a coinciding $(246) million
reduction in Safety Net Care Pool payments made to
hospitals during this time. Figures above exclude
impacts to the publicly operated Maricopa Medical
Center. (Jon Stall)
Arizona Community Colleges – Annual Report – Pursuant
to A.R.S. § 15-1427, the Arizona Community Colleges are
required to report by December 1 of each year on their
progress during the previous year. They have just
submitted their FY 2014 report, which includes the
following summary information on the state system:

From FY 2013 to FY 2014, total ED visits increased by
46,076, or 5.6%, which resulted in an increase of $47.8
million in total amounts paid for AHCCCS recipients
receiving ED services. Level I ED visits, however,
declined by (14.8)% from FY 2013. Although imperfect,
AHCCCS believes the Level I-V classifications to be
“reasonable” indicators of non-emergency use of ED
utilization data. Table 6 below provides a breakout by
AHCCCS recipient and total amounts paid.

•
•
•

(Jon Stall)
AHCCCS – Report on Uncompensated Hospital Costs
and Hospital Profitability – Pursuant to A.R.S. § 362903.08, AHCCCS is required to report on the
uncompensated hospital costs and hospital
profitability for Arizona hospitals for the previous fiscal
year. AHCCCS used data from the 2013 and 2014
Uniform Accounting Reports (UAR), statutorily required
audited financial statements.

•
•

319,941 students (headcount) were enrolled for
credit, resulting in a Full-Time Student Equivalent
count of 129,692.
91.0% of enrolled students resided within the
district, while 9.0% did not reside within the district.
Total number of instructors employed was 10,879,
of which 2,623 (24.1%) were full-time and 8,256
(75.9%) were part-time.
Total operating revenues were $1.6 billion (this
amount excludes bond proceeds and fund
balance which total $190.4 million).
Total expenditures were $1.8 billion. (Tom Ritland)

Arizona Commerce Authority – Annual Report on
Arizona Competes Fund – Pursuant to A.R.S. § 411545.04, the Arizona Commerce Authority (ACA) is
required to report annually on grants from the previous
fiscal year and other projects currently funded from the
Arizona Competes Fund and performance measures for
the recipients including job creation, capital investment
and median wages.

From 2013 to 2014, total uncompensated care costs
decreased by $(217.6) million, from $743.9 million to
$526.3 million (29.3% decrease). The average
uncompensated care costs per hospital decreased
from $7.6 million to $5.4 million during this time.
Uncompensated care is expected to further decline in
2015, due to increased enrollment from the Medicaid
expansion program.

ACA awards 3 types of grants from the Arizona
Competes Fund: business attraction and retention
grants, Rural Economic Development Grants (REDG),
and Arizona Innovation Challenge (AIC) grants. The
business attraction and retention grants are awarded to
businesses for the purpose of retaining businesses in
Arizona or to encourage a business to expand to the

Total net operating profitability grew by $56.3 million,
from $729.6 million in 2013 to $785.9 million in 2014 (7.7%
increase). The reduction in uncompensated care did
Table 6

FY 2014 Emergency Department Utilization
By AHCCCS Recipients

Level

FY 2014
# Visits

FY 2014
% Total
Visits

I
II
III
IV
V
Total

37,270
116,455
319,294
282,037
120,654
875,710

4.3%
13.2
36.5
32.2
13.8
100.0%

% Change
From 2013
(14.8)%
(6.6)
1.8
12.2
25.4
5.6%

FY 2014
Amount Paid
($ in Millions)
$

3.5
20.5
93.2
151.8
126.0
$395.0

FY 2014
% Paid
Amount
0.9%
5.2
23.6
38.4
31.9
100.0%

Difference in
Amount Paid
from FY 2013
($ in Millions)
$ (0.4)
(0.2)
1.8
17.0
29.6
$47.8

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Summary of Recent Agency Reports (Continued)
state. In FY 2015, ACA awarded 2 grants for this
purpose. Grantees are statutorily required to pay
average compensation that exceeds 100% of the
median wage in the respective county, pay at least
65% of the health insurance premium for employees,
and demonstrate by third-party analysis that the
estimated tax and fee revenue to the state and local
governments in Arizona will exceed the grant amount.
Additionally, the contracts that ACA develops for the
grantee include agreed-upon metrics for job creation,
salary, and capital investment. Grantees have 3 years
from the time that the grant is awarded to complete
the agreed-upon job creation and capital
investments.

received funds as part of this program. Additionally, the
AIC grant program helps fund the start-up costs of small
businesses. In FY 2015, ACA awarded AIC grants to 12
recipients. Grants for both the REDG and AIC grant
programs provide funding once contractually agreedupon performance milestones are reached. Grant
recipients have 1 year to meet their performance metrics.
In total, ACA has awarded $35.3 million from the Arizona
Competes Fund from FY 2012 through FY 2015. Table 7
below displays the award amounts as well as the
performance commitments and actuals for the 3 grant
categories.
The Arizona Competes Fund received an annual $21.5
million deposit of income tax withholding monies and
$3.5 million in state lottery revenues from FY 2012 – FY
2015. Laws 2015, Chapter 12 reduced the General Fund
deposit to $16.5 million in FY 2016 and $11.5 million in FY
2017 and each year thereafter for an ongoing total of
$15.0 million yearly. The monies are used to retain,
attract, and expand businesses in Arizona through the
provision of grants and loans. As of June 30, 2015, the
Arizona Competes Fund had a balance of $89.9 million,
although the FY 2016 General Appropriation Act (Laws
2015, Chapter 8) sweeps $75.0 million from the Arizona
Competes Fund in FY 2016. (Eric Billings)

Although some business attraction and retention
grants awarded in FY 2012 provided funding up front,
all subsequent grants only release funding once
certain performance milestones are achieved. One of
the FY 2012 grantees which was provided funding up
front has not accomplished their performance metrics
within the agreed-upon 3-year timeframe.
The REDG program provides funding to local
government and economic development entities to
help rural communities enhance economic
development programs. In FY 2015, 7 local
government and economic development entities
Table 7

Arizona Competes Fund Activity FY 2012 – FY 2015 as of June 30, 2015

Business Attraction Grants
Amount Awarded
Job Commitments
Jobs Created
Average Annual Wage of
Jobs Committed
Average Annual Wage of
Jobs Created
Capital Investment
Commitment
Capital Investment Made
REDG and AIC Grants
Amount Awarded
Job Commitments
Jobs Created
Average Annual Wage of
Jobs Committed2/
Average Annual Wage of
Jobs Created
Capital Investment
Commitment5/
Capital Investment Made

FY 2012
$ 5,200,000
956
619
$
55,800

FY 2013

FY 2014

$ 3,500,000
741
618
$62,000

67,500

$65,200

$17,680,000

$ 46,520,000

$ 30,538,300

$19,272,500

$117,732,993

$

$ 1,897,100
106
155
$
39,800

$ 4,453,000
843
941
$
31,200

$

$

$

$

$

52,600

32,300

$

FY 2015
$

$

4,300,000
2,217
682
66,200

$

5,500,000
2,300
6201/
68,700

$

78,000

$

46,5001/

$ 18,500,000
6,214
2,539
$
65,000
$

64,600

$ 39,000,000

$133,738,300

N/A

$158,617,033

4,680,100
960
7
42,300

$ 16,759,400
2,890
1,227
$
35,300

1,611,540

5,729,200
981
124
$
31,500

Total

$
$

48,100

N/A3/

$

36,4004/

N/A6/

$77,126,200

$182,140,000

$124,500,000

$383,766,200

$ 5,508,900

$99,846,100

$ 18,290,600

$

$124,012,300

366,700

____________
1/ One of the grantees was not required to provide performance metrics in FY 2015.
2/ Average wage commitment information was only provided for the REDG category.
3/ No salary information was provided for either grant category in FY 2015 due to confidentiality concerns.
4/ Salary information for 19 total jobs across both grant categories was not included due to confidentiality concerns.
5/ AIC grant recipients did not make a capital investment commitment; however, they did provide actual figures for
capital investments made.
6/ No capital investment commitments were made for REDG or AIC grants in FY 2012.

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Summary of Recent Agency Reports (Continued)
Arizona Criminal Justice Commission – Report on
Criminal Justice Enhancement Fund – Pursuant to
A.R.S.§ 41-2401C, the Arizona Criminal Justice
Commission (ACJC) has provided its annual report on
Criminal Justice Enhancement Fund (CJEF) monies
distributed to law enforcement agencies. CJEF consists
of a 47% assessment on certain fines, penalties, and
forfeitures imposed and collected by the courts. In FY
2015, CJEF revenues totaled $36.3 million and the total
funds available for the fiscal year, including the
beginning balance and adjustments, was $59.9 million.
In FY 2015, CJEF revenues decreased by (10.1)% from FY
2014 and CJEF expenditures totaled $39.3 million.
(Krista MacGahan)
Department of Economic Security – Report on Domestic
Violence – Pursuant to an FY 2016 General
Appropriation Act footnote, the Department of
Economic Security reported the amount of state and
federal monies available for domestic violence funding
in FY 2015. Six agencies spent a total of $24.1 million in
domestic violence funding, a 3.0% increase in spending
from FY 2014. (Tom Ritland)
Department of Environmental Quality – Third-Party
Report on E-Licensing Project – Pursuant to a FY 2015
General Appropriation Act footnote and a provision of
the Committee’s favorable review of the initial ELicensing proposal in June 2014, the Department of
Environmental Quality (DEQ) has provided a quarterly
update of the E-Licensing project. In the report, the
vendor reiterated its prior positive evaluations of DEQ’s
approach. The report stated that “the view of the
credible path to [project] success is much clearer.” The
vendor gave an overall favorable evaluation of DEQ’s
progress in incorporating recommendations from the
previous third-party report.
The report attributed earlier delays in Phase 2
deliverables to a number of factors, including changes
in scope, changing project strategies, turnover of DEQ
management as well as ADOA-ASET senior IT
management, and changes in consulting partnerships.
The report also provided 12 recommendations for the
project, such as implementing a long-term budget and
staffing plan, quantifying long-term operational costs,
and establishing greater collaboration and alignment
of strategies between DEQ and state IT agencies. No
foreseeable end date to the project was provided.
(Josh Hope)
Department of Health Services – Annual Report on
Intergovernmental Agreement/Interagency Service
Agreement Funds – Pursuant to the FY 2016 General
Appropriation Act (Laws 2015, Chapter 8, Section 50)
and A.R.S. § 36-108.01E, DHS is required to report
annually on the fund balances, revenues, and
expenditures of its 4 Intergovernmental and
Interagency Service Agreement (IGA/ISA) funds. These

funds include monies that DHS receives from federal,
state, and local public agencies to deliver behavioral
health services, nutrition education in schools, and
teenage pregnancy prevention programs, among
other services.
Prior to FY 2016, all monies that DHS received from IGAs
and ISAs were included in a single fund. The FY 2016
Health Budget Reconciliation Bill (Laws 2015, Chapter
14) split the IGA/ISA Fund into 4 separate funds to
improve the transparency of IGA/ISA revenues and
expenditures. The 4 funds include the Health Services
Lottery Fund, the IGA/ISA Fund, the ISA for Behavioral
Health Services Fund, and the County IGA for
Behavioral Health Services Fund.
The Health Services Lottery Fund consists of revenues
from the state lottery for teenage pregnancy
prevention, the Health Start program, and the Women,
Infants, and Children (WIC) program. DHS estimates
that the fund will have revenues and expenditures
equal to $7.1 million in FY 2016, and an ending balance
of $11.7 million. DHS projects that revenues,
expenditures, and the ending balance in FY 2017 for
the fund will be unchanged from FY 2016.
The IGA/ISA Fund primarily consists of monies from an
ISA between DHS and the Department of Economic
Security (DES) that requires DHS to provide nutrition
education in public schools using funds from the
Supplemental Nutrition Assistance Program (SNAP).
Due to delays in payment from DES, the fund had a
negative balance of $(5.7) million at the beginning of
FY 2016. DHS states that in FY 2016 this fund is estimated
to have $17.7 million in revenues and $11.9 million in
expenditures, and have an ending balance of $0. FY
2017 revenues and expenditures are estimated to be
$17.1 million.
The ISA for Behavioral Health Services Fund consists of
state and federal monies that DHS receives from the
Arizona Health Care Cost Containment System
(AHCCCS) for the delivery of Medicaid-funded
behavioral health services. DHS estimates that in FY
2016 this fund will have $1.68 billion in revenues and
expenditures, and will carry a balance forward of $70.6
million. This fund will have no revenues or expenditures
in FY 2017 because behavioral health services are
being transferred to AHCCCS.
The IGA for County Behavioral Health Services Fund
consists of monies received from Maricopa County and
Pima County for the delivery of behavioral health
services to individuals with a serious mental illness. DHS
estimates that this fund will have $59.9 million in
revenues and expenditures in FY 2016, along with a
balance forward of $945,000. These funds will be shifted
to AHCCCS following the transfer of behavioral health
services. (Patrick Moran)

12

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Summary of Recent Agency Reports (Continued)
State Mine Inspector – Report on Abandoned Mines
Safety Fund Expenditures and Contributions – The State
Mine Inspector is required by A.R.S. § 27-131 to
establish a program to address public safety hazards
at abandoned mines. A.R.S. § 27-131 created the
Abandoned Mines Safety Fund (AMSF) to fund the
program. The Mine Inspector must submit an annual
report to JLBC on or before December 1 detailing the
contributions to the AMSF, and the expenditures by the
fund during the preceding fiscal year.
For FY 2015, the State Mine Inspector reports that the
AMSF received no new revenue. The State Mine
Inspector located, inventoried, and evaluated mine
sites during FY 2015 but did not close any of those sites
using AMSF monies. The Mine Inspector has
completed preliminary planning for closure of 21 mine
sites in FY 2016, at an estimated cost of $43,100. The
Mine Inspector financed these activities through the
fund’s carry-forward balance. (Krista MacGahan)
Commission for Postsecondary Education – Report on
Postsecondary Education Grant Program – A.R.S. § 151855 requires the Commission for Postsecondary
Education (ACPE) to report annually on its
Postsecondary Education Grant (PEG) program.
The PEG program provides grants to students
attending private postsecondary institutions. The
program was launched in March 2007 and received
funding through FY 2010. In FY 2010, a total of $2.2
million was disbursed to 1,400 grantees representing 20
private postsecondary schools. Funding was
eliminated after FY 2010 and the program continues to
be suspended.
Since its inception, 4,084 students received a PEG loan.
Of those recipients, approximately 2,800 have already
graduated with a baccalaureate degree. The
remaining recipients are either currently enrolled and
working on completing their degree or not enrolled or
attending the last institution on file at the time of their
last grant award.
The FY 2016 Higher Education Budget Reconciliation Bill
(BRB) (Laws 2015, Chapter 16), allows the commission
to contract with a third-party vendor to collect
outstanding PEG debt. The BRB also allows the
commission to use Postsecondary Education Student
Financial Assistance funds to administer PEG
collections. The commission has not yet selected a
third-party vendor to collect debt, but plans to once it
identifies students who did not meet loan forgiveness
requirements. Those who fail to meet the requirements
of the forgivable loan must enter into the PEG
repayment program. (Rebecca Perrera)
Commission for Postsecondary Education – Report on
Math, Science, and Special Education Teacher Loan
Forgiveness Program – A.R.S. § 15-1782 requires the

Commission for Postsecondary Education to report
annually on its Math, Science, and Special Education
Teacher Loan Forgiveness (MSSE) program.
The MSSE program provides forgivable loans to eligible
students attending any regionally or nationally
accredited institution in Arizona (public or private) that
agree to a service commitment to teach in an Arizona
public K-12 school. The program was created in 2007.
In FY 2015, the MSSE program had 46 applicants and
disbursed 32 loans. This total includes 18 new loans and
14 renewals. The total disbursement was $165,100. Of the
32 recipients, 5 are studying mathematics, 3 are studying
science, 18 are studying special education, and 6 are
studying elementary education. Eight recipients attend
private postsecondary institutions and 24 attend public
universities.
The commission is responsible for collecting retention
data for loan recipients. At the conclusion of FY 2015, 254
students have participated in the MSSE program. Of
those, 23 are still enrolled in a postsecondary institution,
19 are in the 12-month grace period, 24 are teaching in a
public K-12 school in Arizona, 134 had their loan forgiven
for completing their teaching service, 33 are in
repayment, 8 have paid their loan balance in full, 1 loan
is in deferment and 12 have had their loans referred to
the Attorney General. (Rebecca Perrera)
School Facilities Board – Report on Costs for Current and
Potential Litigation – Pursuant to A.R.S. § 15-2041L, the
School Facilities Board (SFB) is required to annually report
on the costs associated with current and potential
litigation against the agency. The litigation account was
created to pay for attorney fees, expert witness fees and
other costs associated with litigation in which SFB pursues
the recovery of damages for alleged construction or
design defects that SFB believes caused the failure of a
school building to conform to the building adequacy
requirements.
SFB is not currently in litigation and does not expect there
to be potential litigation in pursuing the recovery of
damages for construction defects. The account currently
has a zero balance. (Josh Hope)
School Facilities Board – Report on Funding Estimates –
Pursuant to A.R.S. § 15-2002A10, the School Facilities
Board (SFB) is required to report by December 1 on the
estimated amounts necessary in FY 2017, FY 2018, and FY
2019 for the Emergency Deficiencies Correction and New
School Facilities Programs.
SFB estimates no funds will be available for the
Emergency Deficiencies Correction Program in FY 2017,
FY 2018, and FY 2019.
In FY 2017, SFB estimates total project costs of $35.7 million
for 2 projects (Agua Fria Union High School District and

13

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Summary of Recent Agency Reports (Continued)
Chandler Unified School District) expended over
several years. In addition, an amount of $1.2 million
has already been budgeted for additional space in
Benson Unified School District in FY 2017. In FY 2018,
SFB estimates total project costs of $32.7 million for 2
projects expended over 2 years. In FY 2019, SFB
estimates total project costs of $50.4 million for 2
projects expended over several years. SFB capital
plans are subject to change.

vehicle registration renewal by mail turnaround times.
In metropolitan areas, the average customer wait time
from receiving a ticket until arriving at the counter
increased from 25.3 minutes in FY 2014 to 35.6 minutes
in FY 2015. Average customer wait times in
metropolitan areas ranged from 19.1 minutes in the
Apache Junction office to 48.2 minutes in the
Glendale office in FY 2015. These same offices were
the low and the high in FY 2014.

SFB estimates that the Lease-to-Own Debt Service
will be $170.0 million, $169.8 million, and $134.3
million in FY 2017, FY 2018, and FY 2019, respectively.
(Josh Hope)

In non-metropolitan areas, the average customer wait
time decreased from 16.5 minutes in FY 2014 to 7.8
minutes in FY 2015.
Fewer customers visited MVD field offices last year,
declining by (3.6)% from 4.1 million customer visits in FY
2014 to 3.9 million in FY 2015.

Arizona Department of Transportation – Annual
Report on Motor Vehicle Division Wait Times – A FY
2015 General Appropriation Act footnote requires
the Arizona Department of Transportation to report
to the Legislature annually on customer wait times in
Motor Vehicle Division (MVD) field offices and

The average turnaround time for vehicle registration
renewal by mail increased by 136% from 1.3 days in FY
2014 to 3.1 in FY 2015. (Ben Beutler)

November Spending
November 2015 General Fund spending of $532.5 million
was $53.6 million more than November 2014. Year to date,
spending is $5.15 billion, or $(53.1) million below last year.
(See Tables 8 & 9).
•

Year to date, the Department of Education has spent
$75.4 million more than the prior year.

•

Due to technical reporting issues with the newlycreated Department of Child Safety (DCS) in FY 2015,
the figures reported below for DCS and the Department
of Economic Security do not accurately reflect changes
in spending levels from the prior year.

•

Even after accounting for issues relating to DCS, the
significant decline in DES spending year-to-date is
due to technical timing issues relating to the
disbursement of Medicaid matching funds.

•

During FY 2016, Universities spending has declined by
$(48.3) million. This is related to changes enacted in
the FY 2016 budget, which contained a $(99.0)
million spending reduction for the Universities system.

Table 8
General Fund Spending ($ in Millions)
Change From

YTD Change

Nov 15

Nov 14

Year-to-Date

from FY 15

AHCCCS

72.5

4.2

498.9

(30.3)

Corrections

78.2

4.8

454.7

37.4

Child Safety

24.0

24.0

157.1

157.1
(195.1)

Agency

Economic Security

6.2

1.5

394.5

Education

259.4

23.7

2,199.5

75.4

Health Serv ices

19.2

6.7

502.2

(3.1)

Public Safety

1.6

0.0

38.2

0.9

School Facilities Board

0.1

(0.0)

161.8

5.9

Univ ersities

41.7

(4.5)

394.9

(48.3)

Leaseback Debt Serv ice

0.0

0.0

84.1

(0.0)

Other

29.6

(6.8)

261.6

(53.0)

Total

532.5

53.6

5,147.5

(53.1)

14

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Table 9

General Fund Spending
($ in Thousands)
Agency
Dept. of Admin./Automation Projects Fund
ADOA – Sale/Leaseback Debt Service
Office of Administrative Hearings
Commission of African-American Affairs
Department of Agriculture
AHCCCS
Attorney General
State Board of Charter Schools
Department of Child Safety
AZ Commerce Authority
Community Colleges
Corporation Commission
Department of Corrections
County Funding
AZ State Schools for the Deaf & Blind
Department of Economic Security
State Board of Education
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
Department of Gaming
Arizona Geological Survey
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/Superior Court
Court of Appeals
Department of Juvenile Corrections

Nov 15
1,401.1
71.2
7.0
466.8
72,517.9
1,580.2
76.7
24,000.2
2,625.0
252.3
22.6
78,215.3
6,000.5
1,028.6
6,211.7
105.0
259,386.3
350.5
18.3
47.5
57.9
218.3
121.6
272.1
83.4
594.9
19,244.5
208.8
55.5
167.1
2.2
324.4

Change from
Nov 14
(2,737.7)
6.4
7.0
(165.5)
4,220.5
135.2
16.7
24,000.2
(384.8)
(25.7)
4,791.8
6,000.5
(1,194.6)
1,495.4
105.0
23,707.7
131.6
10.0
14.4
(13.1)
(7.7)
(37.7)
51.2
(115.4)
(495.2)
6,715.2
(9.6)
6.8
0.2
1.3
(7.0)

Year-to-Date
10,841.4
84,114.6
385.4
46.1
3,675.0
498,891.7
8,753.6
483.3
157,064.4
13,125.0
25,705.7
238.9
454,695.1
6,000.5
12,815.0
394,487.7
512.0
2,199,522.1
3,728.7
67.7
307.1
431.5
1,318.6
878.5
2,380.9
1,794.4
366.8
3,820.8
502,238.1
1,660.0
374.3
446.7
17.6
2,311.0

YTD Change
from FY 15
(24,797.8)
(7.1)
(20.3)
46.1
(126.8)
(30,258.4)
(297.2)
91.1
157,064.4
(8,705.1)
(19.1)
37,442.1
(1,650.0)
2,011.3
(195,095.5)
512.0
75,362.8
1,545.3
(7,000.0)
6.2
10.0
(7.0)
(20.8)
(96.1)
862.8
1,794.4
(60.5)
(821.5)
(3,099.9)
42.7
81.6
(0.3)
(4.9)
(94.3)

2,087.5
1,072.2
1,649.9

(67.1)
23.2
(1,219.5)

42,773.5
6,115.9
12,268.4

(2,450.5)
60.4
(4,967.9)

15

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2015

Table 9 (Continued)

Agency
State Land Department
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.
Legislative Council
Senate
Mine Inspector
Nav. Streams & Adjudication
Occupational Safety and Health Review
Arizona State Parks Board
Phoenix Convention Center
Pioneers’ Home
Comm. for Postsecondary Ed.
Department of Public Safety
Public Safety Personnel Retirement System
Arizona Department of Racing
Radiation Regulatory Agency
Real Estate Department
Department of Revenue
Rio Nuevo Distribution
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
Department of Veteran Services
Department of Water Resources
Water Infrastructure Finance Authority
Department of Weights & Measures
Other - JP Salaries Distribution
Other
Total

Nov 15
1,815.3

Change from
Nov 14
584.4

Year-to-Date
5,064.6

YTD Change
from FY 15
(612.9)

1,941.2
919.7
181.1
468.4
519.7
67.2
7.3
2.5
1,634.5
59.1
180.1
132.4
91.1
873.3
16.9
-

385.9
22.3
15.2
(296.2)
(102.0)
(12.2)
(2.6)
2.5
(268.2)
40.0
(6,000.0)
22.3
(0.6)
(1,330.7)
(11.1)
144.0
(0.3)
-

8,556.3
5,757.0
976.2
2,785.5
3,129.6
509.7
54.2
1.6
275.3
20,449.0
698.4
38,218.7
6,000.0
815.3
1,183.8
24,237.0
161,792.0
4,619.5
128.1
4,977.3
-

(15.2)
696.3
19.3
(1,333.1)
(209.2)
(25.1)
(24.3)
0.7
275.3
(823.7)
941.4
(1,789.7)
65.8
2.7
(274.6)
5,915.2
(2,201.6)
(0.1)
(1,995.3)
-

5,131.4
16,627.6
5,826.9
14,080.3
421.4
774.0
159.5
66.8
532,542.6

4,538.1
(4,931.6)
(1,488.6)
(2,586.1)
97.0
(85.7)
44.2
(158.3)
53,581.4

12,248.1
173,713.2
59,629.3
149,331.1
2,205.9
4,414.3
539.6
503.9
25.7
5,147,498.2

(3,290.4)
(24,658.2)
(7,443.2)
(12,930.7)
223.1
(21.7)
(1,000.0)
(34.8)
82.5
21.7
(53,107.4)

JLBC
Jul 14

3

JLBC
Jul 13
Jul 14
Jul 15

Jan 15

35,000

Jan 14

Jul 12
Jul 13

Jul 15

Jan 15

Jul 14

Jan 14

8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Jan 13

Jul 12

Jul 15

Jan 15

Jul 14

Jan 14

Jul 13

Jan 13

2,200

Jul 12

Jan 12

Jul 11

Jan 11

Jul 10

Jan 10

Jul 09

Jan 09

Jul 08

Jan 08

Jul 07

Jan 07

Jul 06

Jan 06

Jul 05

Jan 05

Jul 04

Jan 04

Jul 03

Jan 03

Jul 02

Jan 02

Jul 01

Jan 01

Thousands of Jobs
2,300

Jan 13

Jan 12

Jul 11

Jan 11

Jul 10

Jan 10

Jul 09

Jan 09

Jul 08

Jan 08

Jul 07

Jan 07

Jul 06

Jan 06

Jul 05

Jan 05

Jul 04

Jan 04

Jul 03

Jan 03

Jul 02

Jan 02

Jul 01

Jan 01

Year Over Year Growth (%)

2,400

Jan 12

Jul 11

Jan 11

Jul 10

Jan 10

Jul 09

Jan 09

Jul 08

Jan 08

Jul 07

Jan 07

2.8% Y/Y Growth
(October 2015)

Jul 06

$19

Jan 06

$20

Jul 05

$23.37 / Hour
(October 2015)

Jan 05

$23

Jul 04

$25

Jan 04

Average Hourly Earnings – Private Sector

Jul 03

$22

Total Monthly Claims for UI Benefits

Jul-15

Jan-15

Jul 14

Jan 14

Jul 13

Jan 13

Jul 12

Jan 12

JLBC

Jan 03

Jan 11
July 11

1

Jul 02

Jan 10
July 10

2……Total Non-Farm Employment
3……Average Hourly Earnings – Private Sector
4……Initial Claims for Unemployment Insurance
5……State Sales Tax Collections – Retail Category
6……State Sales Tax Collections – Contracting
Category
7……Residential Building Permits
8……Economic Activity Index

Jan 02

Jan 09
July 09

December 2015
Appendix A

Jul 01

Jan 01

Jul-15

Jan-15

Jan 08
July 08

$21

Jan 14

12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 07
July 07

$ / Hour

Page:

Jan 10

July 09

Jan 09

July 08

Jan 08

July 07

Jan 07

Year Over Year Growth (%)

Tracking Arizona’s Recovery

Total Non-Farm Employment

2,800

2,700

2,600

2,500

$22.73 / Hour
(Octoberjobs
2014)
2,698,000
(November 2015)

2,100

2.5% Y/Y Growth
(November 2015)

2

Initial Claims for Unemployment Insurance

$24

45,000

40,000

30,000

17,117 Claims
(October 2015)

25,000

20,000

15,000

10,000

5,000

Not seasonally adjusted

4

State Sales Tax Collections – Retail Category

State Sales Tax Collections – Contracting Category
$100

$225
$75

$ in Millions

$175

$150

$25

$181.4 million
(November 2015)

* January 2014 estimate adjusted downward by $30 million to reflect onetime category shift.

Excludes temporary 1 ¢ sales tax

5

Jul 15

Jul 14

Jan 15

Jul 13

Jan 14

Jul 12

Jan 13

Jan 12

Jan 11

July 11

Jan 10

July 10

Jan 09

July 09

Jan 08

July 08

Jan 07

Jul 15

Jul 14

Jan 15

Jul 13

Jan 14

Jan 13

Jul 12

Jan 12

Jan 11

July 11

Jan 10

July 10

Jan 09

July 09

Jan 08

Economic Activity Index
240

100,000

220.6 Index Value
(October 2015)

230

90,000

220

80,000

Coincident Index Value

70,000
60,000

Single Family Unit- 21,691 Permits
Multi-Family Unit- 9,721 Permits
(Oct. 2015)

50,000
40,000
30,000

210
200
190
180
170
160

20,000

150

10,000

7

JLBC

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.

Jul 15

Jan 15

Jul 14

Jul 13

Jan 14

Jul 12

Jan 13

Jul 11

Jan 12

Jan 11

Jul 10

Jul 09

Jan 10

Jul 08

Jan 09

Jul 07

Jan 08

Jul 06

Jan 07

Jan 06

Jul 05

Jul 04

Jan 05

Jul 03

Jan 04

Jan 03

Jul 02

Jul 15

Jul 14

Jan 15

Jul 13

Jan 14

Jul 12

Jan 13

Jan 12

Jul 11

Jan 11

Jul 10

Jul 09

Jan 10

Jan 09

Jul 08

Jul 07

Jan 08

Jul 06

Jan 07

Jul 05

Jul 04

Jan 05

Jul 03

Jan 04

Jan 03

Jul 02

Jan 02

Jul 01

Jan 01

Jan 06

12-Month Moving Sum

Jan 02

Jan 01

140

0

Jul 01

Building Permits

6

Excludes temporary 1 ¢ sales tax

Residential Building Permits

JLBC

July 08

JLBC

July 07

(9.3)% Y/Y Growth
(November 2015)
July 07

Year Over Year Growth (%)

Jul 15

Jul 14

Jan 15

Jul 13

Jan 13

Jul 12

Jan 12

Jan 11

July 11

Jan 10

July 10

Jan 09

July 09

Jan 08

July 08

* Jan 14

JLBC

July 07

Jan 07

11.7 % Y/Y Growth
(November 2015)

40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%

July 06

$0

Jul 15

Jul 14

Jan 15

Jul 13

* Jan 14

Jul 12

Jan 13

Jan 12

Jan 11

July 11

Jan 10

July 10

Jan 09

July 09

Jan 08

July 08

Jan 07

July 06

20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
July 06

Year Over Year Growth (%)

July 07

$100

Jan 07

$125

$37.2 million
(November 2015)

$50

July 06

$ in Millions

$200

8