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… FY 2018
General Fund
revenues are
3.2% above

Summary
October 2017 General Fund revenue
collections totaled $741.5 million, and were
essentially flat compared to October 2016.

Fiscal year-to-date, General Fund revenues of
$3.13 billion have been exceeded by $4.53
billion of expenditures

October collections were close to the
enacted budget projections, only posting a
$(1.0) million forecast loss for the month.

The operating fund balance consists of the
General Fund and certain dedicated funds.
The operating balance as of mid-November
2017 is $1.1 billion. This amount has declined
from the beginning of FY 2018, when the
operating fund balance was at $2.4 billion.
The operating fund balance typically declines
in the beginning of the state's fiscal year as
the state makes large K-12 rollover payments
to school districts.

In terms of the state's individual revenue
categories, modest forecast gains in the
Sales Tax category were offset by losses in
the Corporate Income Tax category. Most of
the state's other revenue categories came in
at or near forecast.
Year-to-date, excluding Urban Revenue
Sharing and one-time fund transfers, FY 2018
General Fund revenues are 3.2% above the
prior year and are $18.8 million above
forecast.

Table of Contents

and are $18.8

forecast.”

Summary
October Revenues ................................................. 2
Monthly Indicators.................................................. 4
JLBC Summary ........................................................ 7
Summary of Recent Agency Reports
• ADOA – Administrative Adjustments ............... 7
• AHCCCS – Immigration Verification Report... 7
• AHCCCS – Uncompensated Care Report ..... 8
• AHCCCS – Prop 206 Provider Rates Report ... 8

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

In addition to the state’s operating fund, the
Budget Stabilization Fund (BSF) has a balance
of $456.1 million.

In comparison to October revenues of $741.5
million, October 2017 spending was $722.6
million, which is an increase of $4.5 million
from the prior year.

the prior year

million above

November 2017

• DCS – Monthly Hiring Report ............................ 8
• Commerce – Arizona Competes Fund........... 8
• DES – TANF Diversion Program .......................... 9
• ADE – Aggregate Expenditure Limit ................ 9

• Executive Clemency – FY 2017 Caseload ...... 9
• DHS – IGA/ISA Fund Report ............................. 10
• Homeland Security – Funding Report ........... 10
• JLBC Staff – Employee Relocation Costs ...... 11
• DOR – Revenue Enforcement Goals ............. 11
• DOR – Income Tax Fraud Prevention ............ 11
• SFB – Credit Enhancement Program ............. 11
• Supreme Court – Probation Funds Report .... 12
• Univ. – ASU Campuses Report ........................ 12
• Veterans – Capital Projects Report ............... 13

October Spending ................................................ 14
Arizona Economic Trends...................Appendix A

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

October Revenues
Table 1

General Fund Revenues ($ in Millions)

October
Year-to-Date

FY 2018
Collections
$
741.5
$ 3,125.4

Sales Tax collections of $386.6 million were 4.9% above
October 2016 and $6.8 million above the forecast for the
month. Year-to-date, collections have increased by 5.4%
and are $24.8 million above the enacted budget
forecast.
October Sales tax collections by category are shown in
Table 2. The 5 major categories of the state’s sales tax
shown in the table account for approximately 90% of total
collections. Most of October’s revenue gain was
attributable to the restaurant/bar and retail categories.
Table 2

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Use
Restaurant & Bar
Utilities

October
6.1%
(2.0)%
(5.7)%
10.9%
4.4%

YTD
4.8%
11.4%
9.0%
5.1%
1.5%

Individual Income Tax net revenues of $367.6 million in
October were $3.3 million more than in the prior year
and $1.1 million above the forecast for the month. Yearto-date, revenue has grown 4.3% over the prior year.
As indicated in Table 3, October withholding increased
by 8.4% from last year and were $6.2 million above the
forecast. Collections during the month were helped by
an increase in the number of processing days compared
to October 2016. Year-to-date withholding collections
are 6.1% above FY 2017.
October estimated and final payments of $76.1 million
were 28.1% above last year and $8.8 million above the
forecast. A portion of the increase from last year may
reflect delays that occurred in October 2016 in
processing returns of taxpayers that took extensions on
their Tax Year 2015 returns. Year to date, payments are
10.6% above those collected during the same period of
FY 2017.
October Individual Income Tax refunds totaled $(80.9)
million – this compares to $(38.8) million in October 2016
and a forecasted amount of $(67.0) million. The increase
in refunds compared to last year also largely reflects
processing delays that occurred in October 2016 on
returns from taxpayers who filed extensions on their Tax
Year 2015 returns.

Difference From
Enacted Forecast
$ (1.0)
$ 18.8

Difference
From FY 2017
$ (0.6)
$ 95.6

Table 3

Individual Income Tax Growth Rates
Compared to Prior Year
October
YTD
Withholding
8.4%
6.1%
Estimated/Final Payments
28.1%
10.6%
Refunds
108.7%
48.1%
Corporate Income Tax net collections were $16.4 million
in October, which was $(14.2) million less than in the
prior year and $(9.0) million below forecast. Year to
date, collections are $(18.6) million below prior year
collections.
Insurance Premium Tax collections of $1.5 million in
October were $(2.5) million below the prior year and
$(3.5) million below the forecast. Year to date,
collections are 2.4% above last year.
The Lottery Commission reports that October ticket sales
were $69.8 million, which is $9.9 million, or 16.6%, above
sales in October 2016. Year-to-date sales are 22.8%
above the prior year. Distributions of Lottery revenues
for ticket sales that occurred from July through October
are not expected to be deposited to the General Fund
until November.
Highway User Revenue Fund (HURF) collections of $118.8
million in October were up 3.1% compared to October
of last year and were $(0.4) million below forecast.
Year-to-date collections are 2.6% above last year.
October collections of $7.0 million in the Transfers and
Reimbursements category were $5.9 million above the
prior year and $5.4 million above the forecast. The
October increase was partly driven by a $3.2 million
payment from Mylan to the state as part of a
nationwide settlement for overbilling Medicaid
programs for the company's EpiPen emergency allergy
shot.
Due to delays in reporting final September revenues for
various revenues sources, DOR has made technical
adjustments to prior month collection figures. For
October, DOR has decreased the amount of prior
General Fund revenue collections by $(0.4) million, and
the adjustment has been included in the reported yearto-date results.

3
Table 4

General Fund Revenue:

Change from Previous Year and Budget Forecast
October 2017
Current Month

FY 2018 YTD (Four Months)

Change From
Actual

October 2016

October 2017

Amount

Change from
Actual

Budget Forecast

Percent

Amount

Percent

October 2016

October 2017

Amount

Budget Forecast

Percent

Amount

Percent

Taxes
Sales and Use
Income - Individual
- Corporate

$386,557,546

$17,889,639

367,613,957

3,326,618

16,432,091

(14,246,583)

4.9 %
0.9
(46.4)

1,053,410

(8,455,240)

(8.0)
(14.4)

0.0

7,696,624

(291,225)

(3.6)

(254,518)

(3.2)

0.0

10,898,992

565,025

5.5

737,408

7.3

3,724,252

2.4

1,005,097

0
0

1,545,913

(2,531,305)

(62.1)

0.6 %

1.6 %
0.6

(1,053,391)

(4.9)

$4,881,439

8,840,472

11.6

(11.6)

$783,149,691

$24,811,099

(16.0)

(396,282)

Sub-Total Taxes

4.3

649,440

(110,239)

(3,457,854)

(69.1)

156,382,637

(190,068)

(74.6)

179,130

($5,592,309)

(0.7) %

$3,314,932,057

(18,604,123)

5.4 %

6,238,266

3,016,961

25.7

61,145,691

97,723,076

2,158,087

13,252

$78,397,429

1,497,974,880

(35.3)

Luxury - Tobacco

64,797

$1,537,838,452

(12.8)

936,340

Other Taxes

0.3

(846,635)

5,760,338

Insurance Premium

1.8 %

(8,955,982)

Property
- Liquor

19.4

$6,804,820

(1,006,146)
$124,580,342

(84.9)
3.9 %

(1,186,966)
$24,443,962

0.6
(86.9)
0.7 %

Other Revenue
Lottery
License, Fees and Permits
Interest

0

0

2,896,918

480,732

19.9

(14,728)

(78.4)

854,365

66.7

4,055

Sales and Services

2,135,792

Other Miscellaneous

3,035,254

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

(10,453,849)

0

0

6,976,224

5,850,524

$15,048,244
$798,197,934

($3,282,957)

--

(77.5)
-519.7
(17.9) %

$1,598,483

0.2 %

(1,432,326)

2.6

0
120,127
(1,761)
327,289
(1,261,479)
0
5,391,581

-4.3
(30.3)

0

(12,801,793) (100.0)

13,925,735

2,775,822

24.9

259,373

138,597

114.8

0

--

3,956,545

39.7

169,487

188.6

18.1

6,966,641

(33,718)

(0.5)

(1,179,692)

(14.5)

(29.4)

5,633,329

(13,685,777)

(70.8)

(8,783,630)

(60.9)

--

0

0

10,619,083

1,539,345

340.2

$4,575,756

43.7 %

$37,404,161

($1,016,553)

(0.1) %

$3,352,336,219

($22,067,524)
$102,512,818

-17.0
(37.1) %
3.2 %

0
197,331
($5,639,958)
$18,804,003

-1.9
(13.1) %
0.6 %

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

(56,730,840)
0
(56,730,840)
$741,467,094

(729,948) (100.0)

0

0.0

0

--

0

0.0 %

(226,923,360)
0
(226,923,360)

0

(0.0)

(1,191,548) (100.0)

(5,729,304)

2.6

0

--

(6,920,852)

3.1 %

0

(0.0) %
0.6 %

(2,162,274)

4.0 %

($563,791)

(0.1) %

($1,016,553)

(0.1) %

$3,125,412,859

$95,591,966

3.2 %

$18,804,003

3.1 %

($373,555)

(0.3) %

$472,888,486

$12,084,725

2.6 %

($7,079,177)

Non-General Funds
Highway User Revenue Fund

$118,847,503

$3,541,907

(1.5) %

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 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 3.0% in the
third quarter of 2017, following growth of 3.1% in the
second quarter. The latest readings represented the first
consecutive quarters of at least 3.0% growth since the
third quarter of 2014. GDP has been bolstered by strong
growth in consumption expenditures, business fixed
investment, and exports. Increases in these categories
were partly offset by decreases in residential investment
and state and local government spending.
The Conference Board’s U.S. Consumer Confidence
Index increased by 4.4% to 125.9 in October. The latest
reading is 24.9% above the index in October 2016. The
large increase in October reflected broad improvement
in consumers' assessments and near-term expectations
of the economy. The percentage of surveyed individuals
that think jobs are currently plentiful minus the percent
that think jobs are scarce reached 18.8%, which was the
highest reading since July 2001. Economists also expect
that a portion of the monthly increase in confidence
reflected improving stock market performance.
According to the U.S. Department of Commerce Bureau
of Economic Analysis, the U.S. Personal Consumption
Expenditure Price Index (PCEPI) increased 0.4% in
September, building on 0.2% growth in August. Monthly
growth was boosted by energy prices, which rose 6.8%
during the month. The index’s year-over-year growth
rate grew from 1.4% to 1.6% during the month, which
remains below the Federal Reserve Bank’s 2.0% annual
inflation target. The index for core inflation (all items less
food and energy) was 1.3% above the reading in
September 2016.

among them the increasingly strong Institute for Supply
Chain Management (ISM) index for new orders.
ARIZONA
Housing
Single-family housing construction is increasing. In
September, Arizona’s 12-month total of single-family
building permits was 26,719, or 11.7% more than a year
ago. The comparable single-family permit growth rate
for the entire U.S. was 9.5%.
The 12-month total of multi-family building permits has
been up and down. In September, Arizona’s total of
10,103 multi-family building permits was (5.0)% less than
in 2016. Nationwide multi-family permits were (2.5)%
less than in 2016.
Tourism
Revenue per available room was $67.68 in September,
which was (0.8)% below the amount in September
2016. Ridership through Phoenix Sky Harbor Airport
during the month was down (0.6)% compared to
September 2016.
Employment
According to the Office of Economic Opportunity
(OEO), the state added 18,700 nonfarm jobs in
October over September. The average job gain for
October in the prior 5 years was 27,800.
Compared to October 2016, Arizona added 32,000 net
new jobs in October this year, which was an increase
of 1.2%. The average year-over-year job growth rate
through the first 10 months of 2017 is 1.8%. The last time
the state's annual job growth rate was below 2% was in
2011.

Consumer prices, as measured by the U.S. Consumer
Price Index (CPI), increased 0.1% in October and
increased 2.0% above October 2016 prices. The index
increase is primarily due to a 0.3% increase in the shelter
index. The energy index slightly decreased due to a
gasoline index decrease outweighing increases in other
indexes. Core inflation (all items less food and energy)
increased 0.2%, and other increases include the indexes
for medical care, used vehicles, and education. The
indexes for new vehicles, recreation and apparel saw
decreases for the month.

The slowdown in job growth over the last 4 months is
primarily due to the private service-providing industries
in the state, including retail trade, information, and
other services.

The Conference Board's U.S. Leading Economic Index
decreased (0.2)% in September to 128.6 and stands 4.0%
above its September 2016 reading. Partially because of
hurricane disasters, average weekly initial claims and
average workweek of production worker components
made significant negative contributions. The volatile
building permits index also contributed to the monthly
decrease. Of the index's 10 components, 6 made
positive contributions for the month, most notable

The U.S. Bureau of Labor Statistics releases estimates
quarterly for a broader measure of labor
underutilization called the total unemployment rate.
Besides the “regularly” unemployed, the measure also
includes persons who are available to work but
stopped looking for a job (“discouraged workers”), and
persons who had to settle for part-time employment
(“underemployed workers”).

The state’s regular unemployment rate decreased from
4.7% in September to 4.5% in October. This is the lowest
recorded jobless rate since December 2007.
Compared to October 2016, the jobless rate is down by
(0.5)%. The U.S. unemployment rate decreased from
4.2% in September to 4.1% in October.

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Monthly Indicators (Continued)
The Arizona rate averaged 9.9% from the third quarter
of 2016 through the third quarter of 2017. This rate is
(0.6)% below the reading issued for the prior period. The
state’s 9.9% rate was the eighth highest of any state. The
national average for the measure was 8.9% during the
quarter.
OEO reported that 18,027 initial claims for
unemployment insurance were filed in October, an
increase of 1.4% compared to the same month last
year, the largest year-over-year increase for a month
since January 2017.
According to OEO, the state had a total of 26,024
claimants receiving unemployment insurance benefits
in October, a decrease of (4.7)% from September. This
figure is (8.3)% below the October 2016 level.
In September, the Average Weekly Hours worked by
individuals in Arizona’s private sector was 34.8 hours.
This workload was 0.6% above the level during the prior
month and 2.1% above the level in September 2016.
The Average Hourly Earnings received by private sector
workers was $25.46, which is (0.7)% below the average
in the prior month. September earnings were 5.2%
above the average in September 2016.
State Agency Data
At the beginning of November 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 609,320 members.
Total monthly enrollment decreased by (3,600) during
October and is 0.2% higher than a year ago. The
monthly decrease was largely driven by enrollment in
the Traditional and Proposition 204 populations of low
income parents and children, which collectively
decreased by (3,100), or (0.2)%.
Laws 2016, Chapter 112 reopened enrollment in
KidsCare program in September 1, 2016. Following the
enrollment freeze in January 2010, the KidsCare
caseload had dropped to 500 members by August
2016. Through November 1, 2017, enrollment in the
program reached 23,800, or 700 more than the prior
month’s enrollment.
In January 2014, the state started accepting new
enrollment to the Proposition 204 childless adults
program. In October 2017, the childless adult
population decreased by (800), or (0.2)%. At 317,000,
this population is 0.1% higher than a year ago.
The state also opted to expand adult Medicaid
coverage to 133% of FPL. Their enrollment decreased

by (500) in October and now totals 82,100 individuals.
Enrollment is 1.2% higher than a year ago. The federal
government currently funds 95% of this population's
cost.
There were 17,242 TANF recipients in the state in
October, representing a (2.2)% decrease from
September. The year-over-year number of TANF
recipients has declined by (14.1)%. The statutory
lifetime limit on cash assistance is 24 months.
The Supplemental Nutrition Assistance Program
(SNAP), formerly known as Food Stamps, provides
assistance to low-income households to purchase
food. In October, 905,694 people received food
stamp assistance in the state, representing a (0.8)%
decrease over September caseloads. Compared to
October caseloads last year, the level of food stamp
participation has declined by (7.2)%.
The inmate population was 42,261 as of October 31,
2017. This is a 0.1% increase since September and a
(0.8)% decrease since last year.
Based on information the Department of Child Safety
provided for September 2017, reports of child
maltreatment totaled 47,093 over the last 12 months,
a decrease of (3.0)% over the prior year. There were
16,005 children in out-of-home care as of August
2017, or (11.4)% less than in August 2016. Compared
to the prior month, the number of out-of-home
children decreased by (1.9)%.
According to the most recent information from the
Administrative Office of the Courts, the Maricopa
County probation caseload was 28,591 as of
September 2017. This was a decrease of (14) below
the prior month, and a 839 increase since last
September. In addition, the state’s non-Maricopa
County probation caseload was 19,188. This was an
increase of 88 above the prior month, and a 220
increase since last September. These figures represent
standard and intensive probation caseloads,
including both adult and juvenile probation.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017
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 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

October
3rd Q 2017
October
October
October
October
October
September
September

4.5%
9.9%
18,027
26,024
2,782,500
164,500
140,500
34.8
$25.46

(0.2)%
(0.6)%
18.8%
(4.7)%
0.7%
0.4%
0.0%
0.6%
(0.7)%

(0.5)%
(1.0)%
1.4%
(8.3)%
1.2%
3.2%
2.2%
2.1%
5.2%

April
April
April

$1,117 million
$342.9 million
$463.6 million

15.3%
4.1%
26.6%

5.4%
4.3%
9.3%

September
September

26,719
10,103

0.9%
(6.1)%

11.7%
(5.0)%

September

4,817

(14.9)%

(20.1)%

September
August
September
September

$262,000
172.20
2,595
21,820

1.6%
0.8%
(7.0)%
1.7%

7.4%
5.8%
(26.0)%
(9.4)%

September
July
September
September

3,151,034
2,251,309
222,465
$67.68

(10.7)%
22.1%
12.6%
17.7%

(0.6)%
7.5%
17.5%
(0.8)%

4th Q 2016
September
2nd Q 2017
July 2016

91.7
9.8%
$290.3 billion
6,931,071

3.7%
4.7%
0.9%
N/A

12.9%
5.2%
3.9%
1.7%

May
May

AA / Aa2
Stable

N/A
N/A

N/A
N/A

November 1st

1,867,462
1,071,917
317,026
192,028
82,052
23,849
60,600
119,990

(0.2)%
(0.2)%
(0.2)%
(0.4)%
(0.6)%
2.8%
0.3%
0.0%

0.2%
(1.7)%
0.1%
3.5%
1.2%
159.7%
3.1%
(1.0)%

September
August
October
October

47,093
16,005
1,336
42,261

October
October

17,242
905,694

September
September

19,188
28,591

3rd Q, 2017 (1st
Estimate)
October
September
October
September

(0.1)%
(1.9)%
3
0.1%
(2.2)%
(0.8)%
88
(14)

(3.0))%
(11.4)%
(5)
(0.8)%
(14.1)%
(7.2)%
220
839

$17.2 trillion

2.3%

3.0%

125.9
128.6
246.6
113.1

4.4%
(0.2)%
0.1%
0.4%

24.9%
4.0%
2.0%
1.6%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

JLBC Meeting
At its November 16, 2017 meeting, the Joint Legislative
Budget Committee considered the following issues:
Department of Administration – Review of Public Safety
Broadband – The Committee gave a favorable review
of ADOA’s annual report on expenditures for the State
and Local Implementation Grant Program (SLIGP).
These monies are part of a nationwide planning effort
associated with a public safety broadband network.
Attorney General – Review of Allocation of Settlement
Monies – The Committee gave a favorable review a
$469,000 expenditure plan for a staff attorney and
other litigation costs associated with opioid
manufacturers. These monies were deposited into the
Consumer Remediation Subaccount resulting from the
State v. McKesson Corporation settlement. The
favorable review includes a provision that clarifies the
one-time nature of these monies.
Department of Child Safety – Review of FY 2018 First
Quarter Benchmarks – The Committee gave a
favorable review of the report assessing DCS’ progress
toward meeting benchmarks for the number of
caseworks, caseload standards, the number of
backlog cases and open reports, and reducing the
number of children in out-of-home care.

Department of Economic Security – Review of Staffing
Plan for the Division of Developmental Disabilities –
The Committee gave a favorable review of the
department’s plan to hire 90 positions mandated by
the federal government at the Arizona Training
Program at Coolidge, and an unfavorable review of
DES' lack of data on their out-of-home placement
costs. The review included provisions with cost data
and long-term plan reporting requirements.
Department of Education – Review of State Aid
Correction for Bonita Elementary – The Committee
gave a favorable review of a plan to provide Bonita
Elementary School with $115,600 in corrected state
aid funding following the settlement of two tax
appeals in Arizona Tax Court.
Department of Education – Review of Joint Technical
Education District Quarterly Reports – The Committee
gave a favorable review of ADE’s June 2017 and
September 2017 JTED quarterly reports.

Summary of Recent Agency Reports
Arizona Department of Administration – Report on
Administrative Adjustments – Pursuant to A.R.S § 35191, the Arizona Department of Administration
(ADOA) submitted their report on administrative
adjustments. A.R.S § 35-191 allows administrative
adjustments for goods and services received after the
end of the fiscal year if written documentation is
provided by an agency and approved by ADOA.
Statute requires ADOA to report any approvals for
goods or services ordered in one fiscal year but
received beyond August 30 of the following fiscal
year. For FY 2017, ADOA did not grant any approvals
for administrative adjustments for orders for goods or
services made in FY 2017 and received after August
31, 2017. (Rebecca Perrera)

AHCCCS – Report on Systematic Alien Verification
for Entitlements Program – Pursuant to A.R.S. § 362903.03, the Arizona Health Care Cost Containment
System (AHCCCS) provided its latest report on the
collection and verification of documentation
associated with the Systematic Alien Verification for
Entitlements (SAVE) program.
AHCCCS, in conjunction with the Department of
Economic Security (DES), performed 149,549
verifications of immigration status in FY 2017. During
this period, AHCCCS and DES referred 63 individuals
(52 citizens, 11 non-citizens) for prosecution for
fraudulent schemes, prohibited acts, theft, or
forgery. AHCCCS and DES identified 2 fraudulent
permanent residency documents utilizing the SAVE
program during FY 2017. (Jon Stall)

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
AHCCCS – Report on Uncompensated Hospital Costs
and Hospital Profitability – Pursuant to A.R.S. § 362903.08, AHCCCS reported on uncompensated
hospital costs and hospital profitability for Arizona
hospitals for the previous fiscal year. AHCCCS used
data from the 2015 and 2016 Uniform Accounting
Reports (UAR), statutorily required audited financial
statements.
From 2015 to 2016, total uncompensated care costs
decreased by $(6.8) million, from $349.3 million to
$342.5 million (1.9% decrease). The average
uncompensated care costs per hospital decreased
from $3.4 million to $3.3 million during this time. Total
net operating profitability increased by $167.0 million,
from $667.6 million in 2015 to $834.6 million in 2016
(25.0% increase).
The reduction to uncompensated care and increase
to net operating profitability during this time was partly
driven by an 8.3% increase in Medicaid enrollment.
Figures above exclude impacts to the publiclyoperated Maricopa Medical Center. (Jon Stall)
AHCCCS – Report on Proposition 206 Provider Rate
Adjustments – Pursuant to a provision adopted by JLBC
at its June 2017 meeting, AHCCCS reported on long
term care provider rate adjustments associated with
Proposition 206 paid sick leave implemented on July 1,
2017. The rates had not been finalized at the time of
the meeting. AHCCCS reports that the rate
adjustments were as follows:
•
•
•

0.6% for Elderly and Physically Disabled (EPD) home
and community-based services (HCBS) providers;
0.4% for Developmental Disabilities (DD) HCBS
providers; and
0.3% for Nursing Facility services.

The estimated total funds costs of the adjustment are
$4.0 million for the EPD program and $3.6 million for the
DD program in FY 2018. The agency indicated that
these costs are within budget. (Patrick Moran)

Department of Child Safety – Monthly Report on Hiring
– Pursuant to a FY 2018 General Appropriation Act
footnote, the Department of Child Safety (DCS)
reported on its progress in hiring and retaining child
safety staff through October 2017. (See Table 6
below.)
The number of direct line child safety staff
(caseworkers, caseworkers in training, caseworkers
awaiting training and hotline staff) was 1,336 in
October, or (70) 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-than-budgeted staff in
training. Total direct line staff increased by 3 since
September.
There were also 1,392 non-direct line child safety staff
in October, or (119) 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 11 compared to
September. (Patrick Moran)
Arizona Commerce Authority – Annual Report on
Arizona Competes Fund – Pursuant to A.R.S. § 411545.04, the Arizona Commerce Authority (ACA)
provided its annual report on 1) grants from the
previous fiscal year and other projects currently
funded from the Arizona Competes Fund, and 2)
performance measures for the recipients including job
creation, capital investment and average wages.
New FY 2017 Grants
ACA awarded 15 grants from the Arizona Competes
Fund totaling $13.6 million in FY 2017.
ACA awarded new 8 grants totaling $11.9 million for
the purpose of expanding or retaining businesses in
Arizona. The largest grant of $4.0 million was awarded
to Caterpillar Global Mining LLC.

Table 6
DCS Filled FTE Positions as of October 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

October
1,019
71
246
1,336
1,392
2,728

Difference
(171)
(5)
106
(70)
(119)
(189)

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
Each recipient agreed, as part of the granting process,
to meet certain metrics regarding job creation. The 8
recipients agree, over the next 3 years, to create a
collective total of 5,226 new jobs, retain 3,202 existing
jobs, provide average annual wages above the county
median wage, make a collective capital investment of
$250.7 million, and pay for at least 65% of health
insurance costs.
Additionally, ACA made $1.5 million in new grants as part
of the Arizona Innovation Challenge (AIC) grant program
to 6 early-stage companies for the purposes of funding
the start-up costs of small businesses. There are no
specific job creation requirements for these companies;
however, ACA estimates they will create 19 jobs over the
next year.
The remaining $151,500 was awarded under the Rural
Economic Development Grant (REDG) program to the
City of Yuma. Grants made under this program are
meant to fund rural infrastructure projects that will
generate or retain private sector jobs.
Performance Measures
ACA awarded 27 grants from FY 2012 through FY 2017
totaling $34.0 million for the purpose of expanding or
retaining business in Arizona. Through FY 2017, these
grantees created 3,921 jobs with average annual wages
of $77,200 and capital investment of $248.7 million. This
compares to commitments of 12,832 jobs created,
average annual wages of $64,300, and capital
investment of $460.6 million. The grantees have 3 years
to reach the agreed upon metrics. Grantees that did not
perform the agreed upon metrics were only funded for
the job creation and capital investments that were
completed.
From FY 2012 through FY 2017, ACA made 84 REDG and
AIC grants totaling $21.4 million for the purpose of
supporting rural and small businesses. As of June 30,
2017, these grantees created 1,722 jobs and $145.5
million in capital investment compared to commitments
of 2,996 jobs and $389.8 million in capital investment.
These grantees also created an additional $7.8 million in
capital investment that was not subject to a contractual
commitment. The average wage of the jobs created
was $40,100.
Fund Status
The Arizona Competes Fund receives a General Fund
deposit of $11.5 million and an additional deposit of $3.5
million in lottery revenues. As of June 30, 2017, the
Arizona Competes Fund had a balance of $37.5 million.
(Sam Beres)

Department of Economic Security – Report on
Temporary Assistance for Needy Families (TANF)
Grant Diversion Program – Pursuant to A.R.S. § 46298, the Department of Economic Security (DES)
provided the 2017 annual report on the TANF Grant
Diversion Program. The program’s purpose is to
divert applicants from long-term TANF cash
assistance by offering immediate, one-time
assistance to resolve a financial crisis. In FY 2017,
8,891 applicant households chose the grant
diversion option and were diverted from long-term
assistance. A total of 7,398 households obtained
employment within 90 days of receiving assistance
under the diversion program during the 12-month
period of April 2016 through March 2017. Through
February 2017, the most recent month for which
complete data is available, 519 of 6,138 households,
or 8.5%, reapplied for long-term assistance within
180 days of their participation in the diversion
program. Complete data for FY 2016 indicates 848
of the total 8,890 households receiving diversion
payments, or 9.5%, reapplied within 180 days. (Chris
Gustafson)
Arizona Department of Education – Report on K-12
Aggregate Expenditure Limit – Pursuant to A.R.S. §
15-911B, the State Board of Education recently
reported that currently budgeted expenditures for
all school districts collectively statewide for FY 2018
are $(586.3) million below the Constitution’s
aggregate expenditure limitation (AEL). For FY 2017
the difference was $(532.3) million. The AEL limits
growth in non-exempted statewide K-12
expenditures for school districts (excluding charter
schools) to the combined rate of growth for
enrollment and inflation, with certain exceptions.
(Steve Schimpp)
Board of Executive Clemency – Report on FY 2017
Caseload – Pursuant to a footnote in the FY 2018
General Appropriation Act, the board is required to
submit a report on its FY 2017 caseload by
November 1, 2017.
The board conducted 3,110 case hearings in FY
2017, as described below:
Phases 1 and 2 Commutation (308): After reviewing
an inmate’s request to have their sentence
commuted, the board can decide to deny the
request or allow the request to move to a Phase 2
Commutation hearing.
Pardon (14): The board may recommend that the
Governor pardon an offender.

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
Absolute Discharge (9): The board can discharge a
person from imprisonment or parole supervision prior to
the sentence expiration date or prior to the expiration of
parole.
Modification (0): The board can recommend to the
Governor that an inmate’s sentence be modified or
commuted.
Reprieve (0): The board can make a recommendation
to the Governor to delay or temporarily suspend the
carrying out of an inmate’s punishment.
Parole (388): These hearings only apply to offenders
sentenced prior to 1994. The board may place these
offenders on parole or deny their application for parole
and return them to the Department of Corrections.
Violator (2,391): These hearings are conducted when an
offender has violated the terms of community
supervision. (Micaela Larkin)
Department of Health Services – Report on
Intergovernmental Agreement/Interagency Service
Agreement Funds – Pursuant to A.R.S. § 36-108.01E, DHS
is required to report annually on the fund balances,
revenues, and expenditures of its Intergovernmental and
Interagency Service Agreement (IGA/ISA) funds. These
funds include monies that DHS receives from federal,
state, and local public agencies to deliver nutrition
education in schools and teenage pregnancy
prevention programs, among other services.
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 equal to $7.6 million and
expenditures equal to $13.6 million, with an ending
balance of $1.2 million in FY 2018. DHS projects the fund

will have revenues of $7.7 million and expenditures of
$8.3 million, with an ending balance of $690,200 in FY
2019.
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).
DHS estimates that in FY 2018 this fund will have $17.3
million in revenues and $16.2 million in expenditures,
and have an ending balance of $2.9 million. DHS
projects revenues and expenditures will be
unchanged in FY 2019, with an ending balance of
$4.1 million. (Morgan Dorcheus)
Arizona Department of Homeland Security – Report
on Homeland Security Funding – Pursuant to A.R.S. §
41-4255, the Arizona Department of Homeland
Security has submitted its annual report detailing
grant allocations and expenditures for Homeland
Security grants from Federal Fiscal Year (FYY) 2014
through FFY 2016. The report indicates that 28.5% of
the FFY 2016 allocation has been expended.
Information for FFY 2014 - FFY 2016 is included in
Table 7 below.
The state was allocated and the Arizona Department
of Homeland Security awarded $22.2 million in
Homeland Security grants for FFY 2016. The
department reported total expenditures of $6.3
million, leaving $15.9 million unexpended. State
agencies were awarded $2.0 million, of which
$669,200 has been expended. Local governments
were awarded $20.2 million, of which $5.7 million has
been expended. The largest local grantee was the
Pima County Sheriff’s Department ($1.5 million). The
largest state grantee was the Department of Public
Safety ($2.0 million). The largest individual grant of
$1.2 million went to the Pima County Sheriff’s

Table 7

Awards and Expenditures by Homeland Security Grant Recipients
State Awards
Local Government Awards
Total Awards

FFY 2014
$2,122,000
20,349,200
$22,471,200

FFY 2015
$1,694,300
20,062,900
$21,757,200

FFY 2016
$2,004,200
20,228,000
$22,232,200

State Expenditures
Local Government Expenditures
Total Expenditures

$2,122,000
20,349,200
$22,471,200

$1,387,000
17,635,000
$19,022,000

$669,200
5,667,900
$6,337,100

100%

87.4%

Percentage of Total Awards
Currently Expended

28.5%

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
Department for overtime and mileage payments
while working in support of U.S. Customs and Border
Protection border security efforts.

•

Total combined state and local awards for FFY 2016
represented a decrease from the amount received
in FFY 2014 and an increase over FFY 2015. Arizona
received $21.8 million in total combined state and
local awards in FFY 2015 and $22.5 million in
FFY 2014. Of the funds received, 100% have been
expended for FFY 2014 and 87.4% have been
expended for FFY 2015. (Josh Hope)

•

JLBC Staff – Report on FY 2017 Travel and Relocation
Expenses – A.R.S. § 35-196.01 requires agencies to
annually report relocation expenses for their
employees. As of November 1, 2017, 9 agencies
reported spending a total of $63,482 on these
purposes in FY 2017. See Table 8. (Steve Grunig)
Table 8
Agency
Corrections, State Department of
Criminal Justice Commission, AZ
Game and Fish Department, Arizona
Governor, Office of the
Arizona State Schools for the Deaf
and the Blind
Public Safety, Department of
Public Safety Personnel Retirement
System
Secretary of State, Department of
State
Tourism, Office of
Total

FY 2017
Travel
Expense
$8,032
2,979
3,548
345
33,500
8,829
4,366
660
1,223
$63,482

Department of Revenue – Report on Annual
Enforcement Goals – Pursuant to 2 General
Appropriation Act footnotes, the Department of
Revenue (DOR) is required to report on their FY 2018
revenue enforcement goals, and to provide an
annual progress report to the JLBC on the
effectiveness of the department’s overall
enforcement and collections program for FY 2017.
In FY 2017, DOR’s total enforcement goal was $479.0
million but they actually collected $574.2 million.
DOR’s FY 2018 goal for enforcement collections is
unchanged, totaling $479.0 million.
Compared to actual FY 2017 total enforcement
revenue, DOR’s FY 2018 goals consist of:

•

A decrease in audit revenue of $(21.7) million, or
(26.9)%.
An increase in collections revenue of $10.5
million, or 4.6%.
An decrease in accounts receivables revenue of
$(83.9) million, or (31.8)%.

Audit enforcement revenue includes revenue due to
DOR’s auditing of taxpayer returns, and finding and
licensing unlicensed businesses. Accounts
Receivable revenue includes taxpayer accounts paid
before they would have been moved to collections,
which allows DOR’s collectors to work on other
accounts. After certain periods of time, unpaid
taxpayer accounts are moved from Accounts
Receivable to DOR’s Collections section. (Jeremy
Gunderson)
Department of Revenue – Report on Individual
Income Tax Fraud Prevention – Pursuant to an FY 2018
General Appropriation Act footnote, on or before
November 1, 2017 the Department of Revenue is
required to report the results of private fraud
prevention investigation services during FY 2017,
including the total number of fraudulent returns
prevented and the total dollar amount of fraudulent
returns prevented. Funds are used to contract with a
vendor to provide investigation services to identify
potentially fraudulent Individual Income Tax returns
and prevent fraudulent refunds from being sent by
the department. The department reports that the
fraud prevention efforts stopped 22,971 returns from
being sent to filers totaling $25.0 million in FY 2017,
compared to 41,186 returns totaling $78.5 million in FY
2016. (Jeremy Gunderson)
School Facilities Board – Quarterly Report on Credit
Enhancement Program – Pursuant to A.R.S. § 15-2158,
the School Facilities Board (SFB) is required to submit
quarterly reports on the Public School Credit
Enhancement Program. The program is currently
operated by the Governor’s Office of Education. As
of September 30, 2017, 6 schools have been
approved financing through the program –
Academy of Math and Science, Arizona Agribusiness
and Equine Center, Great Hearts Academies (2
projects), BASIS Schools, and American Leadership
Academy.
Of those approved, 2 schools have issued
guaranteed financing as of September 30 –
Academy of Math and Science in an amount of
$23.5 million and Great Hearts Academies in the
amount of $34.2 million. To date, there are no
guaranteed financings for which the program has

12

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
been required to disperse funds. The Credit
Enhancement Fund balance is $104,545,200 and has a
leverage ratio of 0.55 (based only on issued
financings). The statutory limit for the program's
leverage ratio is 3.5. (Rebecca Perrera)
Supreme Court – Report on Adult Probation Services
Fund and the Juvenile Probation Fund – Pursuant to a
General Appropriation Act footnote and A.R.S. § 12262, the Administrative Office of the Courts (AOC)
reported on the FY 2017 actual, FY 2018 estimated,
and FY 2019 requested amounts of the following: 1)
the number of authorized and filled case carrying and
non-case carrying probation positions by county; 2)
the total receipts and expenditures by county and
fund source for each of the probation Special Line
Items (SLI), including the Personal Services expended
from each revenue source of each account; and 3)
the amount of monies from the probation SLIs that the
AOC does not distribute as direct aid to counties. The
figures in this report are for all counties except
Maricopa as the state does not pay any of the
county’s costs of probation.
Adult Standard Probation
Adult Standard Probation county expenditures
statewide for probation officers were $38.8 million in FY
2017, of which $13.6 million were General Fund monies
and $3.4 million were non-General Fund state
expenditures. The remaining $21.8 million were county
expenditures. These monies funded 251.5 authorized
case carrying positions and 376.8 authorized non-case
carrying positions. Of these positions, 237.5 case
carrying and 344.4 non-case carrying positions were
filled. AOC estimates total expenditures of $39.9
million in FY 2018 and $42.8 million in FY 2019.
AOC reports Adult Standard Probation SLI
expenditures of $17.1 million in FY 2017 which included
$13.4 million in General Fund and $3.7 million in other
appropriated funds. All of these monies were
distributed to county probation departments for
probation officer costs. The AOC also reports
expenditures of $427,500 from the Interstate Compact
SLI.
Adult Intensive Probation
AOC reports statewide Adult Intensive Probation
county expenditures for probation officers of $10.1
million in FY 2017, of which $9.2 million were General
Fund monies and $0.9 million were non-General Fund
state expenditures. These monies funded 104.5
authorized case carrying positions and 62.8 authorized
non-case carrying positions. Of these positions, 99.5

case carrying and 59.1 non-case carrying positions
were filled. AOC estimates total expenditures of $10.6
million in FY 2018 and $11.0 million in FY 2019.
AOC reports Adult Intensive Probation SLI
expenditures of $10.2 million in FY 2017, of which $9.2
million were General Fund monies and $1.0 million
were other appropriated funds. All of these monies
were distributed to county probation departments for
probation officer costs.
Juvenile Standard Probation
The statewide total for Juvenile Standard Probation
county expenditures for probation officers were $15.5
million in FY 2017, of which $3.2 million were General
Fund monies. The remaining $12.3 million were
county expenditures. These monies funded 50.3
authorized case carrying positions and 352.4
authorized non-case carrying positions. Of these
positions, 45.8 case carrying and 350.1 non-case
carrying positions were filled. AOC estimates total
expenditures of $18.2 million in both FY 2018 and FY
2019.
AOC reports Juvenile Standard Probation SLI
expenditures of $3.4 million in General Fund monies in
FY 2017. All of these monies were distributed to
county probation departments for probation officer
costs.
Juvenile Intensive Probation
AOC reports statewide Juvenile Intensive Probation
county expenditures for probation officers of $4.7
million in FY 2017, all of which were General Fund
monies. These monies funded 41.7 authorized case
carrying positions and 34.7 authorized non-case
carrying positions. Of these positions, 39.7 case
carrying and 33.1 non-case carrying positions were
filled. AOC estimates total expenditures of $4.8
million in both FY 2018 and FY 2019.
AOC reports Juvenile Intensive Probation SLI General
Fund expenditures of $5.3 million in FY 2017. All of
these monies were distributed to county probation
departments for probation officer costs. (Geoffrey
Paulsen)
Universities – Arizona State University – Report on
University Campuses – Pursuant to A.R.S. § 15-1601, as
amended by Laws 2017, Chapter 199, Arizona State
University (ASU) has reported required financial and
operational information for each of the university's
campuses.

13

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Summary of Recent Agency Reports (Continued)
•

•

•

•

Total capital expenditures in FY 2017 (and FY
2016): $269.2 M ($205.5 M)
o Tempe: $225.0 M ($124.3 M)
o Downtown: $24.1 M ($75.2 M)
o West: $8.3 M ($2.9 M)
o East: $7.2 M ($1.1 M)
o Multiple Campuses: $4.6 M ($1.9 M)
21st day Full-time Equivalent (FTE) student (and
head count of students enrolled in one or more
courses by campus): 97,950 (148,570)
o Tempe: 63,589 (80,364)
o Downtown: 18,042 (31,121)
o West: 9,000 (20,127)
o East: 7,319 (16,958)
Revenues: $1.0 B (ASU excluded all nonappropriated revenues, including the nonappropriated share of tuition revenues, from the
reported amounts).
o Tempe: $721.1 M
o Downtown: $145.4 M
o West: $72.7 M
o East: $66.4 M
ASU is also required to report any long-term
capital or expansion plans for each campus. The
university has made available its Campus Master
Plans and highlighted the following targets for the
"physical population capacity" of each campus
(excluding online enrollments):
o Tempe: 60,000
o Downtown: 15,000
o West: 15,000
o East: 15,000 (Matt Beienburg)

Department of Veterans’ Services – Report on Capital
Projects – Pursuant to A.R.S. § 41-610, the Department
of Veterans’ Services (DVS) is required to submit an
annual report on capital projects for which they have
requested federal monies in the past 12 months. DVS
reports it has completed 2 veteran cemetery projects
which were previously awarded. The state is
responsible for paying the ongoing operational costs
of cemeteries.
The FY 2015 and FY 2017 budgets appropriated $9.2
million and $10.0 million, respectively, from the
General Fund for the state's portion (35%) of the
construction cost for veterans’ homes in Yuma and
Flagstaff. DVS reports it has not received the federal
portion (65%) of construction costs for either home.
(Morgan Dorcheus)

14

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

October Spending
October 2017 General Fund spending was $722.6
million, which is an increase of $4.5 million above
October 2016. (See Tables 9 & 10).
•

Year-to-date, Department of Education (ADE)
spending has increased by $24.5 million
compared to the prior year.

•

School Facilities Board spending has increased by
$39.9 million so far during FY 2018 compared to
the prior year. The agency received additional
funding for the construction of 6 schools in the
FY 2018 budget.

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

Change From
Oct 17

Oct 16

Year-to-Date

from FY 17

AHCCCS

144.3

(26.2)

680.2

84.6

Corrections

107.2

34.7

399.8

39.9

Child Safety

17.2

(16.2)

118.4

(18.2)

Agency

Economic Security

7.6

(12.5)

479.6

23.9

286.3

1.2

2,008.0

24.5

Health Serv ices

7.8

0.8

35.1

1.4

Public Safety

9.9

0.5

43.8

3.4

School Facilities Board

18.5

18.4

210.8

39.9

Univ ersities

58.2

2.5

233.6

7.5

Leaseback Debt Serv ice

0.0

0.0

84.1

(0.0)

Other

65.6

1.3

236.3

(10.6)

Total

722.6

4.5

4,529.7

196.3

Education

15

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 2017

Table 10

General Fund Spending
($ in Thousands)
Agency

October 17

Change from
October 16

Year-to-Date

YTD Change
from FY 17

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

1,931.1
144.1
8.9
726.1
144,264.3
3,390.0
70.5
17,161.8

234.4
68.9
(0.0)
(22.2)
(26,155.5)
856.9
8.2
(16,223.4)

19,005.7
84,115.1
400.9
40.2
3,528.7
680,156.6
9,368.6
382.7
118,356.0

558.4
(2.3)
76.0
(0.5)
366.8
84,575.3
1,138.3
74.7
(18,247.2)

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
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

1,866.7
12,675.6
649.6
107,195.3
2,562.7
29.9
7,594.0
152.6
286,251.2
409.8
2,823.6
12.9
85.9
66.5
176.8
594.2
1,123.6
7,836.5
209.7
60.0
0.5
357.9

75.0
(160.3)
604.5
34,716.8
(306.3)
29.9
(12,468.8)
173.2
1,198.6
(615.7)
2,823.6
(5.3)
(49.1)
9.5
(168.1)
11.4
651.2
847.1
(281.3)
2.1
(76.9)
(96.1)
(8.9)

7,316.8
26,043.9
1,192.1
399,774.2
8,554.7
162.9
479,618.8
417.2
2,008,046.9
4,354.6
2,823.6
69.9
274.4
355.7
672.0
4,108.8
1,779.5
4,209.0
35,066.2
885.9
288.4
248.9
0.6
1,992.1

75.0
695.1
997.0
39,856.1
(14,000.5)
(1,947.1)
(356.6)
23,889.4
95.5
24,452.0
1,122.3
(0.2)
(26.7)
141.3
(373.0)
3.6
1,550.0
1,285.3
1,396.2
(416.2)
0.8
(72.6)
(389.7)
465.4

18,618.9
998.4
1,785.8

(2,666.9)
(390.3)
720.2

43,383.2
4,917.0
7,413.9

238.7
3.8
(1,671.2)

16

JLBC – MONTHLY FISCAL HIGHLIGHTS – NOVEMBER 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
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
Department of Weights & Measures
Other - State Treasurer/JP Salaries
Other
Total

October 17

Change from
October 16

Year-to-Date

YTD Change
from FY 17

1,499.6

113.9

4,779.3

1,107.4

1,689.0
988.6
166.7
503.0
710.7
82.1
12.0
0.9
9,864.9
103.7
179.3
3,300.6
18,454.6
3,475.1
36.3
25.5
6.2

219.8
(59.4)
(19.9)
(34.5)
120.8
(69.6)
(5.9)
0.9
516.9
(188.2)
(229.4)
(1,900.7)
18,364.1
1,896.3
(14.2)
25.5
(4.8)

7,618.1
4,473.9
835.4
2,420.4
3,066.7
444.1
49.2
22,499.0
823.4
43,805.1
6,000.0
454.7
1,005.4
11,964.8
210,774.2
6,649.1
116.0
2,489.2
26.2
12.2

992.8
245.9
(5.6)
472.7
79.2
9.1
(3.2)
2,050.0
127.1
3,422.4
(381.1)
(90.5)
(51.8)
39,943.5
(5,871.7)
3.5
711.6
25.5
(15.8)

76.1
26,688.2
9,051.1
22,384.2
415.0
844.9
186.4
62.5
722,642.3

(1,249.4)
2,012.0
618.2
1,072.7
(53.8)
(81.4)
33.1
43.0
4,462.2

1,059.0
106,753.0
36,204.3
89,608.2
1,916.0
4,022.2
(1.0)
449.3
62.5
4,529,705.5

(7,381.0)
8,048.2
2,508.3
4,362.0
(77.2)
319.7
(1.0)
113.9
62.5
196,279.6

JLBC
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
Jul 17

5.2% Y/Y Growth
(September 2017)

Jan 09

$19

3

JLBC
140%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%

Jul 06

Jul 16
Jul 17

Jan 17

35,000

Jul 15

40,000

Jan 16

2,200

Jul 14

2,300

Jan 15

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
Jul 17

Thousands of Jobs
2,400

Jan 14

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

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

$20

Jul 05

$25.46 / Hour
(September 2017)

Jan 06

$23

Jul 04

$24

Jan 05

$25

Jul 03

$27

Jan 04

Average Hourly Earnings – Private Sector

Jul 02

JLBC

Jan 03

1

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
Jul 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 (%)

Page:

Jan 02

$26

Total Monthly Claims

November 2017
Appendix A

Jul 01

Jan 01

Jul-17

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

Year Over Year Growth (%)

Jul-17

Jan-17

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

Jul-15

Jan 08
July 08

$21

Jan-16

Jan 07
July 07

$ / Hour
$22

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

Jan 08

July 07

Jan 07

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)
2,782,500
(October 2017)

2,100

1.2% Y/Y Growth
(October 2017)

2

Initial Claims for Unemployment Insurance

45,000

18,027 Claims
(October 2017)

30,000

25,000

20,000

15,000

10,000
5,000

1.4% Y/Y Growth
(October 2017)

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
Jul 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

Jul 16

6.1% Y/Y Growth
(October 2017)

* January 2014 estimate adjusted downward by $30 million to reflect one-time
category shift.

5

Residential Building Permits

100,000

90,000

80,000

70,000

Single Family Unit - 26,719 Permits
Multi-Family Unit - 10,103 Permits

40,000

(September 2017)

30,000

20,000

10,000

0

7

JLBC
Jan 08

Excludes temporary 1 ¢ sales tax

Jul 15

Jul 17

Jan 17

Jul 16

Jan 16

Jan 08

Jul 17

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

$ in Millions
$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

$196.3 million
(October 2017)
July 06

Jul 17

$175

July 07

Jul 16
Jan 17

$200

Jan 07

Jul 15
Jan 16

$ in Millions
$225

July 06

Year Over Year Growth (%)

Jul 17

Jan 17

Jul 14
Jan 15

$125

Jan 16

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

$36.3 million
(October 2017)

$150
$25

$0

(2.0)% Y/Y Growth
(October 2017)

6