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

www.azleg.gov/jlbc.htm

" Year-todate…
General Fund
revenues are
2.7% above
the prior year
and are $(6.6)
million below
forecast.”

April 2017

Summary
March 2017 General Fund collections of
$562.6 million were (19.1)% below the prior
year and $(12.2) million below the Baseline
forecast.
The large overall revenue decline was mostly
due to one-time fund transfers that occurred
in March 2016 (as a part of the FY 2016
enacted budget), which were not repeated
in March this year. Excluding those transfers,
the state’s ongoing revenues in March were
(3.8)% below the prior year.
Within ongoing revenues, only one of the
state’s large revenue categories, Individual
Income Tax, increased over its March 2016
level. This revenue category was 59.3%, or
$39.5 million, above the prior year. Almost all
of this increase was attributable to
withholding. The large gain in withholding in
March was probably due to a combination of
processing and technical issues (see separate
Individual Income Tax section for details.)
On a year-over-year basis, the Sales Tax
category declined by (0.1)% in March. All of
the large sales tax categories, except for the
Use Tax category, performed poorly in March.
Most notably, the retail category, which
makes up half of sales tax revenue,
decreased by (1.3)%, the first such decline
since January 2015.
The Corporate Income Tax declined by
(72.6)% over March 2016. Net collections
through March were $193.9 million, which is
the lowest cumulative amount for the March
year-to-date period since 1994.

The continuous decline in this revenue
category is likely the result of the multi-year
statutory decline in the Corporate Income Tax
rate and a decline in corporate profits during
the last year.
The Insurance Premium Tax declined by (6.3)%
in March. At least some of this decline was
probably due to processing issues, as the
state’s accounting system allowed certain
transactions to be processed in March 2016
that normally would have been processed in
the following month.
Year-to-date, excluding Urban Revenue
Sharing and one-time fund transfers, General
Fund revenues are 2.7% above the prior year
and are $(6.6) million below forecast.
In comparison to March revenue collections of
$562.6 million, March 2017 spending was $658.5
million, which is an increase of $71.5 million from
the prior year.
Fiscal year-to-date, General Fund revenues of
$6.45 billion have been offset by $7.58 billion of
expenditures.
The operating fund balance consists of the
General Fund and certain dedicated funds.
The operating balance as of mid-April 2017 is
$1.78 billion, while the state's Budget
Stabilization Fund has a current balance of
$458.4 million.

Table of Contents

This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
April 20, 2017.

Summary

• AHCCCS – Third Party Liability Recoveries ..... 9

• April FAC Summary ............................................. 2

• AHCCCS/DES/DCS – Cap Rate Changes ...... 9

• Classroom Site Fund Report .............................. 2

• AG – Quarterly Report on ICAC ..................... 10

March Revenues..................................................... 3

• AG – Quarterly Report on Settlements .......... 10

Monthly Indicators.................................................. 5

• DCS – Monthly Report on Hiring ..................... 11

JLBC Meeting........................................................... 8

• Comm College – STEM Programs ................... 12

JCCR Meeting ......................................................... 8

• County Treasurer – Lease Excise Tax ............. 12

Summary of Recent Agency Reports

March Spending ................................................... 13

• AHCCCS – 340B Drug Program ........................ 9

Arizona Economic Trends...................Appendix A

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Summary (Continued)
April FAC Summary
The Finance Advisory Committee (FAC) met on April 12,
2017 to update its 4-sector revenue forecast. The FAC is
a 14-member panel of private and public sector
economists and their views serve as one of the 4 equal
inputs into JLBC’s Baseline revenue forecast. The
remaining 3 inputs are the JLBC Staff forecast and 2
University of Arizona (UA) econometric models.

Classroom Site Fund Report
The JLBC Staff is required to annually determine by
March 30 of each year the estimated K-12 Classroom
Site Fund (CSF) per pupil amount for the upcoming
budget year. The CSF is funded from the Proposition 301
0.6¢ sales tax and from K-12 trust land endowment
earnings.
Under these parameters, public schools will receive $386
per weighted pupil from the CSF for FY 2018. The $386
per pupil amount would be higher than the $332 per
pupil amount anticipated for FY 2017 because of
projected growth in Proposition 301 sales tax revenues
and land trust earnings for FY 2018.

The FAC heard presentations on General Fund Revenue
collections, the U.S. and Arizona economy, and state
cash flows. The JLBC Staff provided members with
revised FY 2017 – FY 2020 revenue estimates based on
the updated April 4-sector revenue forecast.
In comparison to the January base revenue forecast, the
April FAC projections are lower for FY 2017 but higher for
FY 2018. The projected revenue growth rates for FY 2019
and FY 2020 were lower under the updated April
forecast (See Table 1).
Table 1

Comparison of January and April FAC Forecasts
FY 17
January
April

3.5%
3.4%

FY 18

FY 19

FY 20

3.9%
4.3%

4.2%
3.5%

4.8%
4.4%

March Revenues
Table 2

March
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2017
Collections
$ 562.6
$ 6,447.5

Difference From
Baseline Forecast
$ (12.2)
$
(6.6)

Sales Tax collections of $352.9 million were (0.1)% below
March of last year and $(13.2) million below the forecast
for the month. March tax collections reflect sales activities
that occurred in February. Year-to-date, collections are
up by 3.2% and are $(3.4) million below forecast.
Sales tax collections by category for March are shown in
Table 3. The 5 major categories of the state’s sales tax
shown in the table account for approximately 90% of total
collections.

Table 3

Difference
From FY 2016
$ (133.1)
$
(39.6)

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Use
Restaurant & Bar
Utilities

February
(1.3)%
3.0%
6.9%
1.9%
(6.1)%

YTD
3.3%
6.3%
5.0%
6.2%
(1.6)%

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

March Revenues (Continued)
Individual Income Tax net revenues of $106.1 million in
March were $39.5 million more than the prior year and
were $40.4 million above forecast. Year-to-date,
revenue has grown 7.9% over the prior year and is $70.6
million above forecast.
As indicated in Table 4 March withholding increased by
11.2% from last year and was $16.3 million above the
forecast. While the reason for the large monthly
increase has yet to be determined, it may be related to
timing differences with respect to processing.
Year-to-date withholding collections are 7.1% above FY
2016. Due to technical reasons, DOR underreported
withholding receipts during July – April in FY 2016. If
revenues had not been underreported in the beginning
of FY 2016, growth in withholding would instead equal
5.8% year-to-date in FY 2017.
March estimated and final payments of $68.9 million
were 1.9% above last year. Year to date, payments
have decreased (0.3)% compared to FY 2016 and are
$1.7 million above the forecast.
March Individual Income Tax refunds totaled $(341.9)
million – this matches the $(341.9) million in March 2016
and a forecasted amount of $(366.0) million. Year-todate refunds have led to a $39.7 million increase
compared to the enacted forecast.
Table 4

Individual Income Tax Growth Rates
Compared to Prior Year
March
YTD
Withholding
11.2%
7.1%
Estimated/Final Payments
1.9%
(0.3)%
Refunds
0.0%
(1.3)%
Corporate Income Tax net collections were $19.7 million
in March, which was $(52.2) million less than in the prior
year. Year to date, collections are $(168.8) million below
prior year collections and $(69.3) million below forecast.
Decreases are probably the result of the multi-year
statutory decline in the Corporate Income Tax rate and
a decline in corporate profits during the last year.
Insurance Premium Tax collections of $118.6 million in
March were $(7.9) million below the prior year. Year-todate, collections are 5.5% above last year and $(5.4)
million below the forecast.
The Lottery Commission reports that March ticket sales
were $83.6 million, which is $10.0 million, or 13.6%, above
sales in March 2016. Year-to-date ticket sales are $620.2
million, which is (6.4)% below last year’s sales. The yearto-date decrease reflects the one-time nature of

January 2016 ticket sales associated with a recordbreaking $1.4 billion Powerball jackpot. In terms of
General Fund collections, year-to-date lottery revenues
through March are $3.2 million above the forecast.
Highway User Revenue Fund (HURF) collections of $116.5
million in March were down (2.1)% compared to March
of last year and were $(7.2) million below forecast. Yearto-date collections are 3.1% above last year.
Due to delays in reporting final February revenues for
various revenues sources, DOR has made technical
adjustments to prior month collection figures. For
March, DOR has decreased the amount of prior
General Fund revenue collections by $(0.1) million, and
the adjustment has been included in the reported yearto-date results.

4
Table 5

General Fund Revenue:

Change from Previous Year and Budget Forecast
March 2017
Current Month

FY 2017 YTD (Nine Months)

Change From
Actual

March 2016

March 2017

Amount

Change from
Baseline Forecast

Percent

Amount

Actual

Percent

March 2016

March 2017

Amount

$3,310,907,934

$101,115,940

2,889,821,104

210,603,835

Baseline Forecast
Percent

Amount

Percent

Taxes
Sales and Use
Income - Individual
- Corporate
Property
Luxury - Tobacco
- Liquor
Insurance Premium
Other Taxes
Sub-Total Taxes

$352,925,348

($276,319)

(0.1) %

($13,242,323)

(3.6) %

3.2 %
7.9

($3,352,416)
70,622,016

(0.1) %

106,126,805

39,522,017

59.3

40,386,705

61.4

19,724,510

(52,187,661)

(72.6)

(35,983,552)

(64.6)

193,885,487

(168,766,122)

(46.5)

(69,329,217)

(26.3)

2.5

615,068

(624,093)

(50.4)

(1,233,353)

(66.7)

21,440,838

(3,384,821)

(13.6)

(1,459,344)

(6.4)

2,126,190

92,111

4.5

0

0.0

17,177,232

(807,072)

(4.5)

(387,712)

(2.2)

2,816,377

(80,446)

(2.8)

0

0.0

25,431,906

674,492

2.7

230,988

118,587,704

(7,913,886)

(6.3)

(5.7)

337,278,726

17,690,350

5.5

1,206,294
$604,128,298

1,173,361
($20,294,916)

-(3.3) %

(7,174,043)
22,144
($17,224,422)

1.9
(2.8) %

2,590,136

(1,557,076)

(37.5)
2.3 %

0.9

(5,415,119)

(1.6)

(2,023,425)

(43.9)

$6,798,533,361

$155,569,524

($11,114,229)

(0.2) %

44,736,343

17,191,893

62.4

3,236,977

7.8

28,812,037

6,454,074

28.9

3,995,275

16.1

Other Revenue
Lottery
License, Fees and Permits
Interest

0

0

3,831,325

1,208,442

(7,239)

Sales and Services

2,052,749

Other Miscellaneous

6,972,414

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

0

-46.1

0
1,786,690

-87.4

(12,059)

--

(10,345)

--

89,400

71,187

390.9

(91,781)

(10,261,024)

(83.3)

(1,176,785)

(36.4)

23,927,775

1,096,096

4.8

(1,607,896)

(6.3)

393.9

5,523,330

381.2

26,840,417

5,189,719

24.0

2,492,208

10.2

5,560,775
0

915,382

(795,138)

$13,764,630
$617,892,928

--

0

(46.5)

(1,107,476)

($4,299,005)

(23.8) %

$5,015,414

($24,593,921)

(3.8) %

($12,209,008)

--

0

(54.7)

21,038,728

0
(3,270,627)

-(13.5)

0
(3,542,058)

(50.7)

-(14.4)

57.3 %

$145,444,701

$26,732,343

22.5 %

$4,482,725

3.2 %

(1.9) %

$6,943,978,063

$182,301,867

2.7 %

($6,631,504)

(0.1) %

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

(55,298,514)

0

(0.0)

(103,653,355) (100.0)

0

--

(108,482,341)

-- %

0

(0.0) %

$562,594,414

($133,076,263)

(19.1) %

($12,209,008)

(2.1) %

$116,522,419

($2,498,014)

(2.1) %

($7,191,660)

(5.8) %

0
(55,298,514)

(4,828,986)

9.6

(497,686,626)
1,191,548
(496,495,078)

(43,460,876)
(178,405,707)

9.6
(99.3)

0

(0.0)

0

0.0

(221,866,583)

80.8 %

0

(0.0) %

$6,447,482,985

($39,564,716)

(0.6) %

($6,631,504)

(0.1) %

$1,040,061,063

$31,114,804

3.1 %

($11,334,315)

(1.1) %

Non-General Funds
Highway User Revenue Fund

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Monthly Indicators
NATIONAL
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
fourth quarter of 2016. This estimate reflects a slowdown
from the strong growth of 3.5% experienced in the prior
quarter. The slowdown relative to the prior quarter was
primarily due to declines in exports and federal spending
and a deceleration in business investment. Declining
performance in these categories was partly offset by
growth in residential investment, inventory investment
and consumption expenditures.
The Conference Board’s U.S. Consumer Confidence
Index increased by 8.2% in March, the strongest monthly
gain since August 2015. The index rose to 125.6 during
the month, which was 30.7% above the reading in
March 2016 and was the highest level since December
2000. The monthly increase reflected improvement to
consumers' assessment of current economic conditions
and expectations of future economic and job
circumstances. The difference in the percentage of
people who think that jobs are plentiful minus the
percent who think that jobs are hard to get grew from
7.0% to 12.2% during the month.
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
February. The overall monthly increase was driven by a
0.2% increase in core inflation (all items less food and
energy). The index's year-over-year growth increased to
2.1%, which is the highest annual rate since April 2012.
Moreover, year-over-year growth now exceeds the
Federal Reserve Bank's (Fed) 2.0% annual inflation target.
The year-over-year growth rate has quickly accelerated
from 1.3% in November to 2.1% in February. If inflation
continues to rise above the 2.0% target in coming
months, the Fed may face challenges in choosing how
quickly to raise interest rates.
Consumer prices, as measured by the U.S. Consumer
Price Index (CPI), increased 0.1% in February and 2.7%
above February 2016 prices. Indexes for food, shelter,
and recreation were primary contributors to the monthly
increase, which was the smallest since July 2016. Ending
a 5-month trend of increases, the gasoline index
declined by (3.0)% for the month. Energy prices
decreased (1.0)% while core inflation (all items less food
and energy) increased 0.2% for the month.
The Conference Board's U.S. Leading Economic Index
increased 0.6% in February to 126.2 and stands 3.1%
above its February 2016 reading. Of the index's 10
components, 9 made positive contributions for the

month. Particularly strong contributors include the
Institute of Supply Management (ISM) index for new
orders, interest-rate spread and average weekly initial
claims, the last of which reached a 44-year low in
February. Stock prices and consumer expectations
also made positive contributions. Building permits was
the sole negative contributor to the index.
ARIZONA
Housing
Single-family housing construction is increasing. Multifamily construction had previously peaked, but has
recently started to increase again. Arizona’s 12-month
total of single-family building permits is 24,498, or 4.7%
more than a year ago. The comparable single-family
permit growth rate for the entire U.S. is 9.0%.
The 12-month total of multi-family building permits has
started to increase again. Arizona’s total of 10,750
multi-family building permits is 11.6% more than 2016.
Nationwide multi-family permits are (12.1)% lower than
2016.
Employment
According to the latest employment report released by
the Office of Economic Opportunity (OEO), the state
added 27,100 net new nonfarm jobs in February
compared to the prior month. This was more than the
10-year average net job gain for February of 22,300
jobs. Most of the month-over-month job gains came
from the public state and local education sector
(+15,300), as teachers and other employees returned
from the winter recess.
Compared to the same month in the prior year,
Arizona added 54,600 net new jobs in February. This
represents a year-over-year job growth rate of 2.0%.
The largest year-over-year job gains in February
occurred in the following industries: Leisure and
Hospitality (+14,000), Education and Health Services
(+11,900), and Professional and Business Services
(+11,000).
The state’s regular unemployment rate increased from
5.0% in January to 5.1% in February. Compared to
February last year, the jobless rate has declined by
(0.4)%. The U.S. unemployment rate decreased from
4.8% to 4.7% in February.
In January, the Average Weekly Hours worked by
individuals in Arizona’s private sector was 34.4 hours.
This workload was (0.9)% below the level during the
prior month. The monthly decrease lowered the yearover-year growth rate from 1.5% in January to 0.3% in
February.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Monthly Indicators (Continued)
The Average Hourly Earnings received by private sector
workers was $24.72, which is nearly the same as the
average in the prior month. February earnings were
4.3% above the average in February 2016. Year-overyear growth has now been at or above 3.0% in each
month since February 2016.
The U.S. Department of Commerce Bureau of Economic
Analysis quarterly releases estimates of annual Personal
Income received in each state. This measure includes
wages and salaries, proprietors’ income, dividends,
interest, rent, and various supplements to income while
excluding capital gains, contributions for government
social insurance, and pension benefit payments. In the
fourth quarter of 2016, Arizona personal income
increased year-over-year by 4.6%, to $284.3 billion. The
year-over-year increase reflected strong wage growth
of 5.2% and growth of 4.1% from all other sources of
income.
The Office of Economic Opportunity (OEO) reported
that 15,031 initial claims for unemployment insurance
were filed in February, a decrease of (3.3)% compared
to the same month last year.
According to OEO, the state had a total of 23,382
claimants receiving unemployment insurance benefits
in February, a decrease of (6.3)% from January. This
figure was (9.2)% below the February 2016 level, and
represented the largest monthly year-over-year
decrease in number of claimants receiving jobless
benefits since April 2016.
Revenue per available room was $104.32 in February,
which was 5.8% above the amount in February 2016.
Compared to February 2016, the Phoenix Sky Harbor
Airport passenger count decreased (1.4)% while state
park visitation decreased (5.6)% in February. The yearover-year declines in these indicators may partly reflect
one fewer day in February in 2017 compared to 2016.
State Agency Data
At the beginning of April 2017, the total AHCCCS
caseload was 1.87 million members. Since the federal
health care expansion in January 2014, the overall
AHCCCS population has grown by 611,500 members.
Total monthly enrollment was nearly flat in March,
having increased by 100 members. The Traditional
population of low income parents and children
decreased (3,200), or (0.3)%, in March to a level of 1.10
million members. This drop was accompanied by an
enrollment decrease of (500), or (0.3)%, in the
Proposition 204 parent population. The recent
decreases in these populations were likely driven by

seasonal variations in eligibility determinations.
Enrollment growth in other populations offset the
monthly decrease in Traditional and Proposition 204
low income parents and children.
Laws 2016, Chapter 112 reopened enrollment in the
KidsCare program for children with family incomes
above those in the Traditional population, beginning
September 1, 2016. Following the enrollment freeze in
January 2010, the KidsCare caseload had dropped to
500 members by August 2016. Through April 1,
enrollment in the program reached 17,300, or 2,000
more than the prior month’s enrollment.
In January 2014, the state started accepting new
enrollment to the Proposition 204 childless adults
program. In March 2016, the childless adult
population increased by 800, or 0.3%. At 317,200, this
population is 2.6% higher than a year ago.
The state also opted to expand adult Medicaid
coverage to 133% of FPL. Their enrollment increased
by 600 in March and now totals 82,000 individuals.
Enrollment is (4.8)% lower than a year ago. The share
of this population's cost that is funded by the federal
government decreased from 100% to 95% in January.
There were 17,800 TANF recipients in the state in
March, representing a (2.9)% monthly caseload
decrease from February. The year-over-year number
of TANF recipients has declined by (13.1)%. The
statutory lifetime limit on cash assistance is 12 months.
The Supplemental Nutrition Assistance Program
(SNAP), formerly known as Food Stamps, provides
assistance to low-income households to purchase
food. In March, 924,673 people received food stamp
assistance in the state, representing a (0.2)% decrease
over February caseloads. Compared to March
caseloads last year, the level of food stamp
participation has declined by (3.5)%.
The inmate population was 42,349 as of March 31,
2017. This is a (1.0)% decrease since last March. The
population increased by 0.3% since February 2017.
Based on information the Department of Child Safety
provided for February 2017, reports of child
maltreatment totaled 47,633 over the last 12 months,
a decrease of (6.0)% over the prior year. There were
17,174 children in out-of-home care as of January
2017, or (8.9)% less than in January 2016. Compared
to the prior month, the number of out-of-home
children increased by 0.1%.

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017
Table 6

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)

Change From
Prior Period

Change From
Prior Year

Time Period

Current Value

February
4th Q 2016
February
February
February
February
February
February
February

5.1%
10.8%
15,031
23,382
2,747,000
162,700
133,200
34.4
$24.72

0.1%
(0.1)%
(22.8)%
(6.3)%
1.0%
0.8%
0.2%
(0.9)%
0.0%

(0.4)%
(2.0)%
(3.3)%
(9.2)%
2.0%
1.6%
1.8%
0.3%
4.3%

February
February
February

$952.9 million
$331.7 million
$379.8 million

(12.6)%
(27.7)%
(1.9)%

5.8%
3.1%
11.4%

February
February

24,498
10,750

0.5%
(2.0)%

4.7%
11.6%

February

6,629

24.7%

3.8%

February
January
February
February

$245,900
164.72
3,187
24,762

2.5%
0.0%
(0.6)%
1.7%

7.0%
5.1%
(23.3)%
(9.6)%

February
December
February
February

3,353,388
646,020
256,236
$104.32

(4.0)%
(17.0)%
32.2%
35.2%

(1.4)%
7.5%
(5.6)%
5.8%

4th Q 2016
January
December
4th Q 2016
July 2016

91.7
265.48
3.6%
$284.3 billion
6,931,071

3.7%
0.1%
(0.1)%
0.9%
N/A

12.9%
4.7%
0.0%
4.6%
1.7%

May
May

AA / Aa2
Stable

N/A
N/A

N/A
N/A

April 1st

1,869,611
1,100,599
317,249
172,263
82,017
17,271
59,329
120,883

0.0%
(0.3)%
0.3%
(0.3)%
0.7%
13.4%
0.6%
0.0%

February
January
March
March

47,633
17,174
1,354
42,349

March
March

17,800
924,673

February
February

19,078
28,049

4th Q, 2016
(3rd Estimate)
March
February
February
February

(0.7)%
0.1%
10
0.3%
(2.9)%
(0.2)%
98
97

4.0%
5.7%
2.6%
(7.4)%
(4.8)%
NA%
2.7%
4.3%
(6.0)%
(8.9)%
74
(1.0)%
(13.1)%
(3.5)%
469
532

$16.8 trillion

2.0%

2.1%

125.6
126.2
244.5
112.2

8.2%
0.6%
0.6%
0.1%

30.7%
3.1%
2.7%
2.1%

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

JLBC Meeting
At its March 29, 2017 meeting, the Joint Legislative
Budget Committee considered the following issues:
Arizona Health Care Cost Containment System –
Review of Behavioral Health Capitation Rate
Changes – The Committee gave a favorable review
of the proposed changes to behavioral health
capitation rates for plan year (CYE) 2017.
Department of Child Safety – Review of FY 2017
Second Quarter Benchmarks – The Committee gave
a favorable review of the report assessing DCS's
progress towards meeting benchmarks for the
number of caseworkers, the number of backlog and
open reports, and the number of children in out-ofhome care.
Department of Child Safety – Review of FY 2017
Fourth Quarter Funding for New Case Aides and
Overtime – The Committee gave a favorable review
of $765,200 for new case aides and $2,092,500 for
overtime in FY 2017 for fourth quarter funding.
Department of Child Safety – Review of Alternative
Use of Backlog Privatization Resources/Line Item
Transfers – The Committee gave a favorable review
of the transfer of $2,700,000 from the FY 2017
Backlog Privatization line item to the Out-of-Home
Support Services line item, and $1,700,000 from the
Foster Care Placement line item to the Adoption
Services line item.

Department of Economic Security – Review of
Development Disabilities Line Item Transfers – The
Committee gave a favorable review of the transfer of
$10,600,000 of General Fund and Federal Fund money
from the Medicaid Home and Community Based Services
line item to the DDD Operating Budget line item and
$6,500,000 to the Medicaid Case Management line item
for a total transfer of $17,100,000. The Committee added a
provision requiring DES to seek a favorable review from the
Committee prior to any further transfers.
Northern Arizona University – Review of Expenditure and
Performance Report of Nonprofit Biotechnology Research
Appropriation – The Committee gave a favorable review
of the annual report from the Translational Genomics
Research Institute on the use of $3,000,000 in state funding
appropriated to NAU for biomedical research.
Arizona Department of Transportation – Review of Motor
Vehicle Modernization (MvM) Project Annual Progress
Report – The Committee gave a favorable review of the
annual progress report for the 5-year, $56 million project
approved in FY 2014 and designed to enhance the Motor
Vehicle Division's vehicle registration, driver licensing,
finance, partner licensing and contracting, and other
customer and business services.

JCCR Meeting
At its April 5, 2017 meeting, the Joint Committee on
Capital Review considered the following issues:
Northern Arizona University – Review of Student
Housing Indirect Financing Project – The
Committee gave a favorable review of a
$58,790,000 project for Honors College student
housing and academic and administrative spaces
and utilities infrastructure at the Flagstaff campus.
The project will be funded using indirect financing,
including system revenue bonds. The Committee
added standard university financing provisions.
Arizona Game and Fish Department – Review of FY
2017 Building Renewal Allocation Plan – The
Committee gave a favorable review of $104,100
from AGFD's FY 2017 Building Renewal Allocation
Plan for a roofing replacement project at the
Tucson Regional Office.

Department of Juvenile Corrections – Review of 2017
Building Renewal Allocation Plan – The Committee held
this item for future consideration.
Arizona Department of Administration – Consider
Recommending FY 2017 Partial Rent Exemption – The
Committee recommended a partial rent exemption of
$(28,275) for the Department of Revenue and a
corresponding rent payment of $28,275 for the Attorney
General, who will take over DOR space at 416 West
Congress in Tucson.

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Summary of Recent Agency Reports
Arizona Health Care Cost Containment System – Report
on 340B Drug Program – Pursuant to a provision in the
FY 2017 Health Budget Reconciliation Bill (Laws 2016,
Chapter 122), the Arizona Health Care Cost
Containment System (AHCCCS) submitted a report on
the feasibility of extending the state's 340B drug
program reimbursement requirements to hospitals. The
federal 340B program allows safety net hospitals and
other providers to obtain certain outpatient drugs from
manufacturers at a discount.
AHCCCS currently recoups 340B savings from nonhospital providers that participate in the 340B program
by reimbursing them at the lesser of the discounted
price or the actual price paid to the manufacturer.
AHCCCS reports that recouping those 340B savings
from participating hospitals would reduce General
Fund costs of Medicaid by an estimated $(2.7) million
and $(17.0) million in total funds annually. The report
indicates that several hospitals independently
estimated greater impacts, but that those findings
could not be reconciled with the agency's findings.
Prior rate studies conducted for the agency have
found that reducing hospital reimbursement below
current levels may negatively impact access to
care. While recouping 340B savings from participating
hospitals would lower drug costs to the state, AHCCCS
concluded that any savings would be offset with
provider rate increases to ensure network adequacy
for no net impact. (Jon Stall)
Arizona Health Care Cost Containment System – Report
on Third Party Liability Recoveries – Pursuant to Laws
2015, Chapter 14 as amended by Laws 2016, Chapter
122, the Arizona Health Care Cost Containment System
(AHCCCS) reported on its efforts to increase Third Party
Liability (TPL) recoveries for behavioral health services.
AHCCCS is not financially liable for health care
expenses incurred by AHCCCS enrollees if the enrollee
has third party coverage, such as Medicare,
commercial insurance, or an estate. The TPL program
ensures that AHCCCS only reimburses expenses for
which there is no other third party already liable.
AHCCCS was expected to achieve savings associated
with the TPL program after the transfer of behavioral
health services from the Department of Health Services
(DHS) to AHCCCS in FY 2017 due to AHCCCS'
experience with overseeing the TPL program for Acute
Care services.
AHCCCS reports that the following steps have been
taken to increase TPL recoveries since the behavioral
health transfer:

1.

2.

3.

4.

A full operational review of each Regional
Behavioral Health Authority's (RBHA) TPL program
in the summer of 2017. Each of the RBHAs has
already contracted with TPL vendors used in the
Acute Care program.
Reporting requirements on "post-payment"
recoveries made by the RBHAs. Post-payment
recoveries are claims for which AHCCCS has
already made a payment, but later discovers a
third party should have been responsible for
paying the claim. AHCCCS reports that postpayment recoveries for behavioral health
services increased from $0 in FY 2014 to $220,000
from May 2016 to December 2016.
Allowing RBHAs to use AHCCCS' Credit Balance
Audit Recovery program. This program audits
claims submitted by high-volume providers to
ensure no overpayments were made.
Increasing "cost avoidance." Cost avoidance
involves prospectively identifying whether
AHCCCS members have Medicare or
commercial insurance coverage. AHCCCS is
now directly reporting Medicare and commercial
insurance coverage data to the RBHAs for each
enrollee. As a result, cost avoidance for the
RBHAs increased from $(16.7) million in FY 2014 to
$(88.3) million in FY 2016. These savings are
included in capitation rates. (Patrick Moran)

AHCCCS, DES, & DCS – Report on Preliminary Actuarial
Estimates for FY 2018 Capitation Rate Changes –
Pursuant to FY 2017 General Appropriation Act
footnotes, the Arizona Health Care Cost Containment
System (AHCCCS) has submitted a report on
preliminary Medicaid capitation rate increases for
contract year (CYE) 2018. Their submission includes
information for AHCCCS, the Department of
Economic Security (DES), and the Department of
Child Safety (DCS).
In their report, AHCCCS provided information on
components of potential CYE 2018 capitation rate
changes. The report listed few specific preliminary
capitation rate adjustment amounts and no overall
growth projection. Potential changes include:
•

•

Increases based on medical expense and
utilization trends. AHCCCS’ actuaries have
observed growth in brand-name drugs exceeding
10% in recent years. The agency's actuaries will
continue to analyze trends through the summer of
2017.
Modifications to rate differentials for hospitals and
nursing facilities that meet requirements under a
value-based performance program. In the long
run, AHCCCS expects that the rate differential

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Summary of Recent Agency Reports (Continued)
•

•

•

program will incentivize provider behavior that
reduces capitation rate growth.
Annualization of mid-year rate increases for the
long term care program to reimburse providers for
added costs of increasing the state minimum wage
to $10.00 on January 1, 2017 under Proposition 206.
AHCCCS has not yet submitted CYE 2017 capitation
rates for these adjustments for the long term care
program.
Annualization of a mid-year rate increase for
inpatient care provided to children with a severe
illness. The mid-year increase previously received a
favorable review at the JLBC meeting held on
September 21, 2016.
Potential capitation adjustments for implementation
of stakeholder recommendations on care for
individuals in foster care, with autism spectrum
disorder, or with substance addiction.

(Jon Stall)
Attorney General – Quarterly Report on Internet Crimes
Against Children Enforcement Fund Expenditures –
A.R.S. § 41-199 requires the Attorney General (AG) to
report quarterly on expenditures from the Internet
Crimes Against Children (ICAC) Enforcement Fund and
progress made towards ICAC goals. The ICAC
Enforcement Fund was created in FY 2015 with an
annual deposit of $900,000 in revenues from lottery
games that are sold from a vending machine in agerestricted areas. Monies in the fund are utilized to
support the ICAC Task Force housed within the Phoenix
Police Department which works with federal, state,
and local law enforcement to investigate technologyfacilitated sexual exploitation of children.
Through the third quarter of FY 2017, a total of $121,800
in lottery revenues were deposited into the ICAC
Enforcement Fund. Additionally, a total of $422,900
was expended in the third quarter of FY 2017 to help
pay for 4 new positions and other operating costs of
the ICAC Task Force. These expenditures are in
addition to $21,800 expended in the second quarter,
bringing total FY 2017 expenditures to $444,700.
As reported by the AG, the FY 2017 expenditure plan
for the ICAC Enforcement Fund allocates monies to
the hiring of 4 new positions within the Phoenix Police
Department; one-time equipment costs of the task
force including computers, unmarked vehicles,
educational materials, monitors, cameras, software,
hardware, a forensic van, and a crime scene van;
annual equipment costs including computers,
software, and hardware; and law enforcement
training.

As of December 31, 2016, the ICAC Enforcement Fund
had a balance of $1.8 million. (Eric Billings)
Attorney General – Quarterly Reports on Legal
Settlements – Statute requires the Attorney General
(AG) to report quarterly to the JLBC on the receipts to
and disbursements from the Antitrust Enforcement
Revolving Fund, the Consumer Protection - Consumer
Fraud (CPCF) Revolving Fund and the Consumer
Restitution and Remediation Revolving Fund (including
its 2 subaccounts), as well as deposits made to the
General Fund.
In the third quarter of FY 2017, the AG deposited a total
of $7.6 million into various consumer accounts. Of that
amount, $415,700 was deposited into the Antitrust
Enforcement Revolving Fund, $3.5 million into the CPCF
Revolving Fund, $3.2 million into the Consumer
Restitution Subaccount, and $520,900 into the
Consumer Remediation Subaccount. No monies were
deposited into the General Fund this quarter. Only the
$520,900 deposit to the Consumer Remediation
Subaccount requires JLBC review prior to expenditure.
Deposits to the Antitrust Enforcement Revolving Fund
The AG deposited $415,700 in the third quarter of FY
2017 to the appropriated Antitrust Enforcement
Revolving Fund to pay for antitrust enforcement
expenses undertaken by the AG. The amount was
derived from a settlement with Infineon Technologies
regarding allegations that the computer chip maker
engaged in anti-competitive conduct and price fixing.
Deposits to the CPCF Revolving Fund
The AG deposited $3.5 million in the third quarter of FY
2017 to the appropriated CPCF Revolving Fund, which
may be used for any purpose permitted by statute. Of
that amount, $2.0 million was a settlement with Moody's
Corporation, $568,200 was from a settlement with BristolMyers Squibb Company, $555,800 was from a
settlement with Hyundai Motor Company and Kia
Motors, and $350,900 was derived from settlements
under $250,000 in value and interest income.
Moody's
Arizona along with 20 other states and the District of
Columbia sued Moody's alleging the company
misrepresented the credit-worthiness of mortgagebacked securities and collateralized debt obligations
during the great recession. In January, Moody's
reached a settlement with the plaintiffs in which Arizona
received a total of $12.7 million of which $2.0 million was
deposited into CPCF Revolving Fund for attorneys' fees,
$2.5 million was deposited into the Consumer Restitution
Subaccount for restitution to victims, and the remaining

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Summary of Recent Agency Reports (Continued)
$8.2 million was allocated to a separate holding
account. (See Deposits to the Consumer Restitution
Subaccount below for more information.)

settlement (see below), and $77,100 came from small
legal settlements under $250,000 in value and interest
income.

Bristol-Myers Squibb
The AG along with 41 other states and the District of
Columbia filed suit against Bristol-Myers Squibb alleging
that the company had promoted their antipsychotic
drug Abilify for off-label uses not approved by the
Food and Drug Administration. As part of the
settlement, Bristol-Myers Squibb agreed to restrictions
on their marketing of Abilify and to limitations on the
financial incentives they can offer to sales
representatives and health care providers. Of the
$19.5 million settlement, the Attorney General received
$568,200 which was deposited into the CPCF Revolving
Fund.

Diamond Resorts Corporation
The AG filed suit against Diamond Resorts Corporation
alleging that the company had made false statements
and misrepresentations of its timeshares to potential
customers. In December 2016, the AG reached a
settlement with the company in which the state
received a total of $800,000 of which, $650,000 was
deposited into the Consumer Restitution Subaccount
and $150,000 was deposited into the CPCF Revolving
Fund.

Hyundai Motor and Kia Motors
Arizona, the District of Columbia, and 32 other states
sued Hyundai Motor and Kia Motors companies for
alleged misrepresentation of the mileage and fuel
economy ratings for some of their model year 2011,
2012, and 2013 vehicles. The plaintiffs alleged that the
companies misrepresented mileage estimates to
consumers in a variety of deceptive or false
advertisements, promotional campaigns, and on
window stickers of cars. As a result of the settlement,
Arizona received a total of $1,055,800, of which
$555,800 was deposited into the CPCF Revolving Fund
and the remaining $500,000 was deposited into the
Consumer Remediation Subaccount. (See Deposits to
the Consumer Remediation Subaccount below for
more information.)
Deposits to the Consumer Restitution Subaccount
The AG deposited $3.2 million in the third quarter of FY
2017 to the non-appropriated Consumer Restitution
Subaccount to compensate specific entities for
economic loss resulting from consumer fraud. Of that
amount, $2.5 million was from the Moody's settlement,
$650,000 was from the Diamond Resorts Corporation

Deposits to the Consumer Remediation Subaccount
The AG deposited $520,900 in the third quarter of FY
2017 to the partially-appropriated Consumer
Remediation Subaccount to rectify violations of
consumer protection laws. Of that amount $500,000
was a settlement with the Hyundai Motor Company and
Kia Motors and the remaining $20,900 was interest
income on the fund balance. An expenditure plan
must be reviewed by the JLBC before any funds are
spent from this account. Those reviews have not yet
occurred. (Eric Billings)
Department of Child Safety – Monthly Report on Hiring –
Pursuant to a FY 2017 General Appropriation Act
footnote, the Department of Child Safety (DCS)
reported on its progress in hiring and retaining child
safety staff through March 2017. (See Table 7 below.)
The number of direct line child safety staff (caseworkers,
caseworkers in training, caseworkers awaiting training
and hotline staff) was 1,354 in March, or (52) fewer staff
than the number of funded positions. Most of the
difference between funded positions and filled positions
was driven by lower-than-budgeted staffing of
caseworkers, which was partly offset by higher-thanbudgeted staff in training. Total direct line staff
increased by 10 since February.

Table 7

DCS Filled FTE Positions as of March 2017
Caseworkers
Hotline Staff
Staff in Training
Subtotal - Direct Line
Subtotal - Non-Direct Line Staff
Grand Total 1/

____________
1/ Excludes 276.2 Attorney General Staff.

Funded
1,190
76
140
1,406
1,511
2,917

March
1,069
69
216
1,354
1,404
2,758

Difference
(121)
(7)
76
(52)
(107)
(159)

12

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Summary of Recent Agency Reports (Continued)
There were also 1,404 non-direct line child safety staff
in March 2017, or (107) fewer staff than the funded
staffing level. The budgeted staffing level is 1,511
excluding Attorney General positions. Total non-direct
line positions increased by 12 since February. (Patrick
Moran)

GPLET was enacted in 1996 (Laws 1996, Chapter 349) to
allow cities, towns, counties and county stadium districts
("government lessors") to lease property that they own
to private parties ("prime lessees") for commercial,
residential rental, or industrial purposes for at least 30
days.

Arizona Community Colleges – Report on STEM and
Workforce Programs – Pursuant to A.R.S. § 15-1464H,
the Arizona Community College Coordinating Council
(ACCCC) recently reported on each Community
College District's science, technology, engineering
and mathematics (STEM) and workforce programs
plan activities for FY 2015 and FY 2016.

Because the Arizona Constitution exempts federal,
state, county, and municipal property from taxation,
government lessors do not have to pay any property
taxes. Instead, the prime lessees are required to pay a
GPLET on the building ("government property
improvement") that they lease from the government
lessor. Unlike the property tax, GPLET is based on factors
other than a property’s assessed value, such as a
building’s square footage and usage.

In FY 2015 and FY 2016, Arizona Community Colleges
received a total of $13,205,500 from the state for STEM
and workforce programs. The monies were distributed
based on each district's share of the total statewide
Full-Time Student Equivalent (FTSE) enrollment.
However, the FY 2016 Higher Education BRB eliminated
STEM and Workforce aid for Maricopa and Pima
counties, and limited funding for Pinal County to
$96,500.
The ACCCC report describes the activities supported
by the appropriation in each district and provides a
breakout of expenditures. The STEM and Workforce
Program aid is required to be used for the following
purposes:
•
•
•
•
•

Partnerships with business and educational
institutions.
Additional faculty for improved and expanded
classroom instruction and course offerings.
Technology, equipment and technology
infrastructure for the advanced teaching and
learning in classrooms or laboratories.
Student services such as assessment, advisement
and counseling for new and expanded job
opportunities.
The purchase, lease or lease-purchase of real
property, for construction, remodeling or repair of
buildings or facilities on real property. (Geoffrey
Paulsen)

County Treasurers’ Report – Report on the
Government Property Lease Excise Tax – Laws 2015,
Chapter 10, Section 8 requires each county treasurer
to report to the Joint Legislative Budget Committee
(JLBC) by February 15 of each year the amount of
Government Property Lease Excise Tax (GPLET)
collected in the preceding calendar year.

Table 8 below shows the reported GPLET collections by
county in Calendar Year (CY) 2016.
Table 8

County

Total GPLET
Collections

Apache
Cochise
Coconino
Gila
Graham
Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma

$

38,765
0
935,877
0
0
0
0
8,284,278
0
8,528
203,088
21,623
0
0
0

Statewide Total

$9,492,158

As shown in the table, statewide GPLET collections
totaled $9.5 million in CY 2016, which represented an
increase of 8.1% over the prior year. Eighty-seven
percent of statewide GPLET revenue was collected in
Maricopa County. Several counties, including Cochise,
Gila, Graham, Greenlee, La Paz, Mohave, Santa Cruz,
Yavapai and Yuma, reported that no GPLET revenue
was collected in CY 2016. (Hans Olofsson)

13

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

March Spending
March 2017 General Fund spending was $658.5 million,
which represents an increase of $71.5 million above
March 2016. (See Tables 9 & 10). Year-to-date, General
Fund spending is $7.58 billion, or $86.7 million above the
prior year.
The spending information originally provided to the
JLBC Staff by the General Accounting Office (GAO)
included $80 million of General Fund expenditures
related to the Public School Credit Enhancement
Program established by Laws 2016, Chapter 129 (FY
2017 Credit Enhancement Budget Reconciliation Bill).

Under the legislation, it was intended that the
Treasurer invest $80 million of the state's operating
fund in "Program Funding Obligations" issued by
the Credit Enhancement Eligibility Board which
operates the program. This $80 million, when
combined with other prior funding amounts, are
deposited into the Arizona Public School Credit
Enhancement Fund to serve as collateral for
school debt issuances.
Because the $80 million amount was not a General
Fund appropriation, it has been excluded from the
figures displayed in Table 9 and Table 10.

Table 9
General Fund Spending ($ in Millions)
YTD Change

Change From
March 17

March 16

Year-to-Date

from FY 16

AHCCCS

191.0

68.9

1,358.1

379.4

Corrections

89.3

(1.0)

780.3

(0.8)

Child Safety

11.7

(30.3)

280.2

(32.8)

Agency

Economic Security

3.7

(2.2)

490.4

60.7

248.7

13.3

3,279.5

126.6

Health Serv ices

6.8

(10.0)

64.9

(496.4)

Public Safety

14.8

12.4

79.7

20.5

Education

School Facilities Board

0.5

0.4

213.4

27.4

Univ ersities

54.7

17.9

504.6

(43.5)

Leaseback Debt Serv ice

0.0

0.0

84.1

0.0

Other

37.3

2.1

448.3

45.6

Total

658.5

71.5

7,583.5

86.7

14

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Table 10

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
Office of Economic Opportunity
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
Department of Forestry and Fire Management
Department of Gaming
Arizona Geological Survey
Governor/OSPB
Department of Health Services
Arizona Historical Society
Prescott Historical Society of AZ
Department of Housing
Independent Redistricting Comm.
Department of Insurance
Judiciary
Supreme/Superior Court
Court of Appeals
Department of Juvenile Corrections

March 17
828.9
35.7
5.9
514.0
190,978.7
2,341.2
102.1

Change from
March 16

Year-to-Date

YTD Change
from FY 16

(430.3)
(0.6)
(6.2)
(368.8)
68,864.4
(55.1)
(10.9)

28,174.2
84,117.4
624.3
91.8
6,598.6
1,358,059.1
17,355.9
759.0

9,236.0
2.8
11.7
(1.4)
462.5
379,394.7
301.2
(70.9)

11,680.2
1,791.7
239.3
60.6
89,345.7
1,425.1
11.7
3,713.3
80.7
248,703.9
475.7
32.9
75.9
281.3
525.4
960.6
6,774.5
147.1
91.5
68.8
95.5
548.9

(30,300.4)
(416.6)
(18.3)
(90.2)
(1,045.9)
479.1
11.7
(2,150.6)
(83.0)
13,295.6
68.0
(7.9)
(3.0)
(11.4)
41.1
(157.7)
117.9
(53.5)
(395.4)
(9,992.8)
(21.6)
(20.9)
68.8
(131.1)
108.7

280,156.6
16,231.2
40,642.9
671.9
780,339.3
14,000.5
17,775.5
11.7
490,442.3
691.0
3,279,530.9
6,082.8
2,823.6
133.9
441.3
579.1
2,140.9
(2.4)
4,910.5
1,854.5
7,143.5
64,870.0
2,344.1
617.8
649.7
854.0
3,781.0

(32,828.4)
(3,868.5)
1,707.3
232.9
(765.3)
8,000.0
(1,348.7)
11.7
60,743.7
(215.7)
126,576.6
(46.1)
(4,176.4)
0.2
24.9
(133.5)
(89.7)
(1,625.5)
963.1
60.1
(738.7)
(538.5)
(496,419.2)
(90.0)
(82.5)
649.7
(527.5)
22.0

11,548.9
1,597.9
2,318.1

1,503.6
219.0
(576.4)

70,643.7
10,586.5
16,806.9

4,046.0
9.9
(3,048.2)

15

JLBC – MONTHLY FISCAL HIGHLIGHTS – APRIL 2017

Table 10 (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
Comm. for Postsecondary Ed.
Department of Public Safety
Public Safety Personnel Retirement System
Radiation Regulatory Agency
Real Estate Department
Department of Revenue
School Facilities Board
Secretary of State
Tax Appeals Board
Office of Tourism
Department of Transportation
Governor's Office on Tribal Relations
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 - State Treasurer/JP Salaries
Other - ADOT Capital (Navajo Nation Projects)
Other - ADOT Capital (Local HURF Distribution)
Other
Total

March 17

Change from
March 16

Year-to-Date

YTD Change
from FY 16

909.9

(56.1)

7,675.4

(363.9)

990.5
1,608.5
247.9
625.6
1,089.8
129.9
8.8
14,799.9
219.4
2,415.4
521.6
1,000.5
9.2
0.2
0.5

(540.2)
20.6
5.0
47.1
81.6
10.3
(0.5)
12,403.6
(19.3)
3,652.6
401.8
(569.4)
(8.6)
(6.9)
(8.9)

13,812.4
10,202.7
1,756.7
5,210.7
6,807.6
864.7
95.4
20,449.0
1,392.0
79,749.3
6,000.0
1,228.0
1,920.0
22,137.7
213,449.8
20,719.5
195.9
6,187.2
38.0
34.6

(794.5)
(515.6)
(2.8)
382.8
822.1
2.1
6.3
(2.5)
(277.8)
(4.8)
20,547.6
37.7
17.8
(4,109.2)
27,437.7
10,113.6
(2.2)
(212.1)
30.9
3.2

292.1
24,676.2
8,466.5
21,311.5
686.9
1,101.2
4.4
658,518.3

195.2
7,995.6
2,514.6
7,231.3
(76.9)
(146.8)
(10.9)
(92.4)
71,452.0

14,777.7
222,085.8
75,907.9
191,803.9
4,375.8
7,885.4
500.0
0.8
762.0
1,500.0
30,000.0
457.9
7,583,519.6

(4,397.7)
(18,117.7)
(7,154.0)
(13,848.3)
208.1
(295.8)
500.0
(830.9)
(152.5)
1,500.0
30,000.0
321.1
86,691.0

JLBC
Jul-15

Jul-16

Jan 01
Jul 01
Jan 02
Jul 02
Jan 03
Jul 03
Jan 04
Jul 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
Jul 11
Jan 12
Jul 12
Jan 13
Jul 13
Jan 14
Jul 14
Jan 15
Jul 15
Jan 16
Jul 16
Jan 17

Jan-17

Jan 08

$24.72 / Hour
(February 2017)

$20

$19

4.3% Y/Y Growth
(February 2017)
Total Monthly Claims for UI Benefits

Jan-17

Jul-16

Jan-16

Jul-15

Jan-15

Jul 14

Jan 14

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

$21

Jan-16

Jan 07
July 07

$ / Hour
$22

Jan-15

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

Jul 14

Jan 14

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

Jan 08

July 07

Jan 07

Year Over Year Growth (%)

1

JLBC

Average Hourly Earnings – Private Sector

$26

3

JLBC

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

35,000

Jul 15

Jan 17

Jul 16

Jan 16

2,200
Jul 14

2,300

Jan 15

2,400

Jan 14

Jul 13

Jan 13

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

Page:
Thousands of Jobs

April 2017
Appendix A

Jan 01
Jul 01
Jan 02
Jul 02
Jan 03
Jul 03
Jan 04
Jul 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
Jul 11
Jan 12
Jul 12
Jan 13
Jul 13
Jan 14
Jul 14
Jan 15
Jul 15
Jan 16
Jul 16
Jan 17

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
Year Over Year Growth (%)

Arizona Economic Trends

Total Non-Farm Employment

2,900

2,800

2,700

2,600

2,500

$22.73 / Hour
(Octoberjobs
2014)
2,747,000
(February 2017)

2,100

2.0% Y/Y Growth
(February 2017)

2

$25

Initial Claims for Unemployment Insurance

$24

$23

45,000

40,000

30,000

15,031 Claims
(February 2017)

25,000

20,000

15,000

10,000

5,000

Not seasonally adjusted

4

Jan 01
Jul 01
Jan 02
Jul 02
Jan 03
Jul 03
Jan 04
Jul 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Jan 11
Jul 11
Jan 12
Jul 12
Jan 13
Jul 13
Jan 14
Jul 14
Jan 15
Jul 15
Jan 16
Jul 16
Jan 17

Building Permits

JLBC
Excludes temporary 1 ¢ sales tax

60,000

50,000

12-Month Moving Sum
Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

Jan 08

July 07

Jul 14

(1.3)% Y/Y Growth
(March 2017)

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

5

Residential Building Permits

100,000

90,000

80,000

70,000

Single Family Unit - 24,498 Permits
Multi-Family Unit - 10,750 Permits
(Feb. 2017)

40,000

30,000

20,000

10,000

0

7

JLBC
Jan 08

Excludes temporary 1 ¢ sales tax

Jul 15

Jan 17

Jul 16

Jan 16

Jan 08

Jan 17

Jul 16

Jan 16

Jul 15

Jan 15

Jul 14

Jan 14

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

$50

Jan 15

Jul 14

Jan 14

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Jan 07

$100

July 07

$184.7 million
(March 2017)
July 06

$ in Millions

$175

July 07

Jul 16
Jan 17

$200

Jan 07

Jul 15
Jan 16

$ in Millions
$225

July 06

Year Over Year Growth (%)

Jan 17

Jul 16

Jan 16

Jul 14
Jan 15

$125

Jul 15

Jan 15

Jul 13

Jan 13

Jul 12

Jan 12

July 11

Jan 11

July 10

Jan 10

July 09

Jan 09

July 08

Jan 08

July 07

Jan 07

July 06

* Jan 14

20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
* Jan 14

JLBC
Jan 07

July 06

Year Over Year Growth (%)

State Sales Tax Collections – Retail Category
State Sales Tax Collections – Contracting Category

$250
$100

$75

$33.5 million
(March 2017)

$150
$25

$0

3.0% Y/Y Growth
(March 2017)

6