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

www.azleg.gov/jlbc.htm

“Year-to-date
… FY 2018
General Fund
revenues are
3.3% above

Summary
November 2017 General Fund revenues
were $697.6 million, an amount which was
4.0% above the prior year and $(5.7) million
below forecast.
Most of November's forecast losses occurred
in the Individual Income Tax category, with
collections for that category coming in
$(23.4) million below forecast.
This forecast loss was partially offset by the
Corporate Income Tax category, which
declined by less than was anticipated for the
month. In addition, Sales Tax posted forecast
gains for November as it continued its trend
of moderate growth seen so far during FY
2018.

The operating fund balance consists of the
General Fund and certain dedicated funds.
The operating balance as of mid-November
2017 is $1.15 billion.
In addition to the state’s operating fund, the
Budget Stabilization Fund (BSF) has a balance
of $456.7 million.

Table of Contents
Summary
November Revenues ............................................. 2
Monthly Indicators.................................................. 4
JLBC Summary ........................................................ 7
JCCR Summary ....................................................... 7
Summary of Recent Agency Reports
• ADOA – Repayment of State Debt ................. 9
• AHCCCS – Emergency Dept. Utilization ......... 9
• DCS – Report on Foster Care/Medicaid ......... 9

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

Fiscal year-to-date, General Fund revenues of
$3.82 billion have been exceeded by $5.22
billion of expenditures

In comparison to November revenues of
$697.6 million, November 2017 spending was

and are $12.2

forecast.”

$663.6 million, which is an increase of $79.2
million over the prior year.

Year-to-date, excluding Urban Revenue
Sharing and one-time fund transfers, FY 2018
General Fund revenues are 3.3% above the
prior year and are $12.2 million above
forecast.

the prior year

million above

December 2017

• DCS – CHILDS Replacement Project ............... 9
• DCS – Monthly Hiring Report .......................... 10
• Comm. Colleges – Annual Report ................. 10
• Comm. Colleges – Dual Enrollment Report . 10

• ADC – IT System Replacement ....................... 10
• ACJC – CJEF Report ......................................... 11
• ACJC – Anti-Racketeering Fund .................... 11
• Econ. Opportunity – Annual Report .............. 11
• DES – Domestic Violence Report ................... 11
• ADE – IT System Replacement ........................ 11
• Mine Inspector – Abandoned Mines ............. 12
• Postsecondary Ed – Grant Program .............. 12
• Postsecondary Ed – Teacher Student Loans 12
• ABOR – Financial Aid Report........................... 13
• ABOR – College Credit Incentives Report .... 13

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

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

November Revenues
Table 1

General Fund Revenues ($ in Millions)

November
Year-to-Date

FY 2018
Collections
$
697.6
$ 3,822.1

Sales Tax collections of $382.4 million were 6.8% above
November 2016 and $6.8 million above the forecast for
the month. Year-to-date, collections have increased by
5.7% and are $31.7 million above the enacted budget
forecast.
November 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. November’s revenue gain was largely
attributable to the prime contracting category, which
increased by 19.7%, year over year. Other categories that
performed well were the restaurant/bar and utilities
categories.
Table 2

Sales Tax Growth Rates
Compared to Prior Year

Retail
Contracting
Use
Restaurant & Bar
Utilities

November
3.8%
19.7%
0.5%
6.2%
7.9%

YTD
4.6%
13.1%
7.2%
5.3%
2.6%

Individual Income Tax net revenues of $315.6 million in
November were roughly equal to prior year collections
and were $(23.4) million below the forecast for the
month. Year to date, revenue has grown 3.5% over the
prior year.
As indicated in Table 3, November withholding revenues
increased by 3.6% from last year and were $(4.0) million
below the forecast. Year-to-date withholding collections
are 5.6% above FY 2017.
November estimated and final payments of $20.4 million
were (49.4)% below last year and $(14.2) million below
the forecast. A portion of the decrease from last year
may reflect prior year delays in processing returns of
taxpayers that took extensions on their Tax Year 2015
returns. Year to date, payments are 1.6% above those
collected during the same period of FY 2017.
November Individual Income Tax refunds totaled $(36.0)
million – this compares to $(44.6) million in November
2016 and a forecasted amount of $(30.8) million. Year to
date, refunds have led to a $(20.8) million revenue
decrease compared to the enacted forecast.

Difference From
Enacted Forecast
$ (5.7)
$ 12.2
Table 3

Difference
From FY 2017
$ 27.0
$ 121.7

Individual Income Tax Growth Rates
Compared to Prior Year

Withholding
Estimated/Final Payments
Refunds

November
3.6%
(49.4)%
(19.4)%

YTD
5.6%
1.6%
25.4%

Corporate Income Tax net collections were $11.6 million
in November, which was $(2.7) million less than in the
prior year and $9.7 million above forecast. Year to date,
collections are $(21.3) million below prior year
collections and $1.2 million above the enacted
forecast.
Insurance Premium Tax collections of $0.1 million in
November were $(0.1) million below the prior year and
$(1.0) million below the forecast. Year to date,
collections are 2.4% above last year.
The Lottery Commission reports that November ticket
sales were $71.2 million, which is $5.0 million, or 7.5%,
above sales in November 2016. Year-to-date sales are
19.6% above the prior year. In terms of General Fund
collections, year-to-date lottery revenues are $(5.9)
million below the same period last year and $(1.8)
million below the forecast.
Highway User Revenue Fund (HURF) collections of $118.0
million in November were up 6.5% compared to
November of last year and were $0.8 million above
forecast. Year-to-date collections are 3.4% above last
year.
Due to delays in reporting final October revenues for
various revenues sources, DOR has made technical
adjustments to prior month collection figures. For
November, DOR has decreased the amount of prior
General Fund revenue collections by $(0.9) 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
November 2017
Current Month

FY 2018 YTD (Five Months)

Change From
Actual

November 2016

November 2017

Amount

Change from
Actual

Budget Forecast

Percent

Amount

Percent

November 2016

November 2017

Amount

Budget Forecast

Percent

Amount

Percent

Taxes
Sales and Use
Income - Individual
- Corporate
Property
Luxury - Tobacco

$382,361,518

$24,372,533

315,576,388

34,266

6.8 %
0.0

$6,797,288
(23,350,052)

1.8 %
(6.9)

$1,920,265,074

$102,835,066

1,813,551,268

61,179,957

11,644,232

(2,671,997)

(18.7)

9,658,603

486.4

109,367,308

10,900,715

3,293,629

43.3

5,543,969

103.5

17,138,981

1,715,737

225,140

(21,276,121)
3,943,069

5.7 %

$31,673,491

3.5

(14,509,580)

1.7 %
(0.8)

(16.3)

1,203,363

1.1

29.9

4,490,579

35.5

15.1

0

0.0

9,216,466

(261,981)

(2.8)

(450,413)

2,978,701

(2,888)

(0.1)

0

0.0

13,577,942

262,386

2.0

437,656

Insurance Premium

67,537

(100,285)

(59.8)

3,623,966

2.4

Other Taxes

35,126

4,687

$725,279,954

$25,155,084

20,779,275

6,837,025

49.0

(1,792,640)

(7.9)

20,779,275

(5,964,768)

(22.3)

(1,792,640)

(7.9)

3,825,763

442,312

13.1

1,226,234

47.2

17,751,498

3,218,134

22.1

5,182,779

41.2

157,873

149.8

- Liquor

Sub-Total Taxes

15.4
3.6 %

(1,008,796)

(93.7)

156,450,174

(165,380)

(82.5)

214,608

($2,524,368)

(0.3) %

$4,039,781,821

(1,001,107)
$149,305,237

(82.3)
3.8 %

(4.7)
3.3

(3,699)

(0.0)

(1,351,992)

(86.3)

$21,489,404

0.5 %

Other Revenue
Lottery
License, Fees and Permits
Interest

3,874

(23,769)

(86.0)

(11,614)

(75.0)

263,247

Sales and Services

1,193,432

(2,110,600)

(63.9)

(1,207,267)

(50.3)

8,160,073

(2,144,318)

(20.8)

(2,386,960)

(22.6)

Other Miscellaneous

2,838,104

3,845,640

--

(722,803)

(20.3)

8,042,342

(10,269,229)

(56.1)

(9,935,524)

(55.3)

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

0
394,317

0
(5,761,001)

-(93.6)

0
(699,516)

114,827

--

0

(64.0)

11,013,400

(4,221,656)
($19,267,008)

$29,034,765

$3,229,607

12.5 %

($3,207,606)

(9.9) %

$66,009,835

$754,314,718

$28,384,691

3.9 %

($5,731,973)

(0.8) %

$4,105,791,656

0

$130,038,228

77.4

-(27.7)
(22.6) %
3.3 %

0
(502,184)
($9,276,655)
$12,212,749

-(4.4)
(12.3) %
0.3 %

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

(56,730,840)
0
(56,730,840)

(1,432,326)
0
(1,432,326)

2.6

0

0.0

--

0

--

2.6 %

0

0.0 %

$697,583,878

$26,952,365

4.0 %

$117,992,080

$7,195,665

6.5 %

($5,731,973)

(283,654,200)
0
(283,654,200)

(7,161,630)

0

(0.0)

(1,191,548) (100.0)

2.6

0

--

(8,353,178)

3.0 %

0

(0.0) %
0.3 %

(0.8) %

$3,822,137,456

$121,685,050

3.3 %

$12,212,749

0.7 %

$590,880,566

$19,280,390

3.4 %

($6,244,933)

Non-General Funds
Highway User Revenue Fund

$834,244

(1.0) %

4

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Monthly Indicators
NATIONAL

ARIZONA

According to the U.S. Department of Commerce Bureau
of Economic Analysis, the U.S. Real Gross Domestic
Product (GDP) increased at an annual rate of 3.3% 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 fixed
investment.

Housing
Single-family housing construction is increasing. In
October, Arizona’s 12-month total of single-family
building permits was 27,099, or 13.1% more than a year
ago. The comparable single-family permit growth rate
for the entire U.S. was 10.4%.

The Conference Board’s U.S. Consumer Confidence
Index increased by 2.6% to 129.5 in November. The
latest reading is 18.4% above the index in November
2016 and is at its highest level since November 2000. The
increase in November reflected continued widespread
improvement in consumers' assessments and near-term
expectations of the economy. Economists expect that
the upward trend in confidence over the past year has
largely been in response to improving labor markets and
rising asset prices.
According to the U.S. Department of Commerce Bureau
of Economic Analysis, the U.S. Personal Consumption
Expenditure Price Index (PCEPI) increased 0.1% in
October. Monthly growth was boosted by prices on
services, which rose 0.3% during the month. Despite the
monthly increase, the index’s year-over-year growth rate
dropped from 1.7% in September to 1.6% during the
month, and remains below the Federal Reserve Bank’s
(Fed) 2.0% annual inflation target. The index for core
inflation (all items less food and energy) was 1.4% above
the reading in October 2016. The Fed chose to raise
short-term interest rates by 0.25% at its December
meeting, under the expectation that inflation is set to
gradually rise to its 2.0% target.
Consumer prices, as measured by the U.S. Consumer
Price Index (CPI), increased 0.4% in November and
increased 2.2% above November 2016 prices. The index
increase is primarily due to a 3.9% increase in the energy
index, driven by a 7.3% increase in the gasoline index.
Core inflation (all items less food and energy) increased
0.1%, and other increases include the indexes for motor
vehicle insurance, used vehicles and shelter. The indexes
for apparel, airline fares, and household furnishings saw
decreases for the month.

The 12-month total of multi-family building permits has
been increasing recently. In October, Arizona’s total of
11,255 multi-family building permits was 10.9% more
than in 2016. Nationwide multi-family permits were
(1.7)% less than in 2016.
Tourism
Revenue per available room was $82.83 in October,
which was 6.5% above the amount in October 2016.
Ridership through Phoenix Sky Harbor Airport during the
month was up 2.4% compared to October 2016.
Employment
OEO reported that 15,538 initial claims for
unemployment insurance were filed in November, a
decrease of (3.5)% compared to the same month last
year.
According to OEO, the state had a total of 22,900
claimants receiving unemployment insurance benefits
in November, a decrease of (11.9)% from October. This
figure is (11.3)% below the November 2016 level.
In October, the Average Weekly Hours worked by
individuals in Arizona’s private sector was 36.2 hours.
This workload was 4.3% above the level during the prior
month, as well as 4.3% above the level in October
2016.
The Average Hourly Earnings received by private sector
workers was $25.23, which is (1.3)% below the average
in the prior month. Year-over-year growth in earnings
dropped steeply from 5.6% in September to 3.2% in
October and is the lowest annual growth rate since
July 2016. It is not clear if the recent decrease reflects
temporary or ongoing labor market conditions.
The state's November employment data is not
available at the time of publication as it will be
reported on Thursday, December 21.
State Agency Data
At the beginning of December 2017, the total AHCCCS
caseload was 1.86 million members. Since the federal
health care expansion in January 2014, the overall
AHCCCS population has grown by 597,261 members.
Total monthly enrollment decreased by (12,100) during
November and is (0.7)% lower than a year ago. The

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Monthly Indicators (Continued)
monthly decrease was spread across most populations.
The Traditional and Proposition 204 populations of low
income parents and children comprised the largest part
of the decrease, collectively falling (8,800), or (0.7)%.
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 December 1, 2017, enrollment in the
program reached 24,500, 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 November 2017, the childless adult
population decreased by (3,000), or (0.9)%. At 314,000,
this population is (1.3)% lower than a year ago.
The state also opted to expand adult Medicaid
coverage to 133% of FPL. Their enrollment decreased
by (900) in November and now totals 81,200 individuals.
Enrollment is (1.0)% lower than a year ago. The
percentage of this population's cost that the federal
government funds is set to decrease from 95% to 94% in
January 2018.
There were 16,966 TANF recipients in the state in
November, representing a (1.6)% monthly caseload
decrease from October. 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
November, 893,429 people received food stamp
assistance in the state, representing a (1.4)% decrease
over October caseloads. Compared to November
caseloads last year, the level of food stamp
participation has declined by (7.7)%.
The inmate population was 42,167 as of November 30th,
2017. This is a (0.2)% increase since October and a
(0.7)% decrease since last year.
Based on information the Department of Child Safety
provided for October 2017, reports of child
maltreatment totaled 47,496 over the last 12 months, a
decrease of (1.3)% over the prior year. There were
15,867 children in out-of-home care as of September
2017, or (12.1)% less than in September
2016. Compared to the prior month, the number of
out-of-home children decreased by (0.9)%.

According to the most recent information from the
Administrative Office of the Courts, the Maricopa
County probation caseload was 28,289 as of October
2017. This was a decrease of (302) below the prior
month, and a 509 increase since last October. In
addition, the state’s non-Maricopa County probation
caseload was 19,255. This was an increase of 67
above the prior month, and a 276 increase since last
October. These figures represent standard and
intensive probation caseloads, including both adult
and juvenile probation.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 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
November
November
October
October
October
October
October

4.5%
9.9%
15,538
22,900
2,782,500
164,500
140,500
36.2
$25.23

(0.2)%
(0.6)%
(13.8)%
(11.9)%
0.7%
0.4%
0.0%
4.3%
(1.3)%

(0.5)%
(1.0)%
(3.5)%
(11.3)%
1.2%
3.2%
2.2%
4.3%
3.2%

April
April
April

$1,117 million
$342.9 million
$463.6 million

15.3%
4.1%
26.6%

5.4%
4.3%
9.3%

October
October

27,099
11,255

1.4%
11.4%

13.1%
10.9%

October

5,203

8.0%

(7.2)%

October
September
October
October

$259,000
173.15
2,997
23,069

(1.1)%
0.6%
15.5%
5.7%

5.8%
6.1%
(12.2)%
(7.9)%

October
September
September
October

3,651,669
1,539,048
222,465
$82.83

15.9%
(19.4)%
12.6%
22.4%

2.4%
15.8%
17.5%
6.5%

4th Q 2016
October
2nd Q 2017
July 2016

91.7
7.7%
$290.3 billion
6,931,071

3.7%
(1.0)%
0.9%
N/A

12.9%
2.9%
3.9%
1.7%

May
May

AA / Aa2
Stable

N/A
N/A

N/A
N/A

December 1st

1,855,403
1,064,836
314,046
190,323
81,199
24,530
60,916
119,553

(0.6)%
(0.7)%
(0.9)%
(0.9)%
(1.0)%
2.9%
0.5%
(0.4)%

(0.7)%
(2.6)%
(1.3)%
3.2%
(1.0)%
152.9%
3.7%
(1.7)%

October
September
November
November

47,496
15,867
1,329
42,167

0.8%%
(0.9)%
(7)
(0.2)%

(1.3))%
(12.1)%
(14)
(0.7)%

November
November

16,966
893,429

(1.6)%
(1.4)%

October
October

19,255
28,289

3rd Q, 2017
(2nd Estimate)
November
October
November
October

67
(302)

(14.1)%
(7.7)%
276
509

$17.2 trillion

2.3%

3.3%

129.5
130.4
247.6
113.2

2.6%
1.2%
0.4%
0.1%

18.4%
5.2%
2.2%
1.6%

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

JLBC Meeting
At its December 19, 2017 meeting, the Joint Legislative
Budget Committee considered the following issues:
Arizona Department of Administration/Arizona
Strategic Enterprise Technology – Review of FY 2018
Cyber Security Projects (Automation Projects Fund) The Committee gave a favorable review of $3,069,300
in proposed FY 2018 expenditures from the
Automations Projects Fund for information technology
Cyber Security projects for the ASET Office in ADOA.
The favorable review included a provision that the
Committee review does not commit the Legislature to
additional funding.
Arizona Department of Administration/Department of
Revenue – Review of Data Center Equipment Upgrade
– The Committee gave a favorable review of $5.5
million in proposed FY 2018 expenditures from the
Automations Projects Fund for replacing data center
infrastructure and relocating that infrastructure to a
third party co-located data center vendor. The total

budget for the Data Center Upgrade project is $11.0
million. The Committee reviewed the first half of the
project budget of $5.5 million at its June 2007
meeting. This favorable review included a provision
requiring DOR to continue to contract with a thirdparty consultant to provide quarterly reviews of the
project and provide those third-party reviews to the
JLBC Staff.
Department of Public Safety – Review of the
Microwave System Upgrade Project (Automations
Projects Fund) – The Committee gave a favorable
review of $1.5 million for the Microwave System
Upgrade project. The FY 2018 budget appropriated
$2.5 million from the Automations Projects Fund for
continued work on the ongoing project to convert
the statewide radio system's microwave backbone
from analog to digital technology. At its September
2017 meeting, the Committee reviewed $1.0 million to
build a new tower and storage building near
Flagstaff.

JCCR Meeting
At its December 19, 2017 meeting, the Joint
Committee on Capital Review considered the
following issues:
Arizona Department of Administration – Consider
Recommending FY 2018 Partial Rent Exemptions – The
Committee recommended partial rent exemptions for
the Registrar of Contractors, the Department of Health
Services, the Automobile Theft Authority, the
Naturopathic Physicians Medical Board, and the
Department of Liquor Licenses and Control ranging
from $3,700 to $57,300. The Committee also
recommended rent increases for the State Treasurer
and Attorney General as a result of these agencies
occupying space vacated by other agencies.
Arizona Department of Corrections – Review of FY 2017
Building Renewal Plan Reallocation – The Committee
gave a favorable review of a reallocation of ADC's FY
2017 Building Renewal Plan. ADC proposes using
$460,000 in savings from the ASPC - Tucson Santa Rita
locking project to increase the monies allocated for
the locking systems repairs at ASPC – Lewis and the
structural dining room repairs at ASPC – Eyman. The
favorable review included provisions with reporting
requirements.

Arizona Game and Fish Department – Review of FY
2018 Building Renewal Allocation Plan – The
Committee gave a favorable review of AGFD's FY
2018 Building Renewal Allocation Plan for $488,300.
The 11 capital projects in this plan include 5 regional
office projects, 3 wildlife area projects, and 3 setasides for maintenance and emergency expenses.
The FY 2018 Capital Outlay Bill (Laws 2017, Chapter
306) appropriated a total of $530,000 from the Game
and Fish Fund for building renewal. The remaining
$41,700 of the FY 2018 appropriation will be reviewed
at a future meeting. The favorable review included
provisions with reporting requirements. Additionally,
AGFD agreed to implement procedures that will help
ensure compliance with JCCR oversight statutes.
Arizona State Lottery Commission – Review of FY 2018
Building Renewal Allocation Plan – The Committee
gave a favorable review of the Arizona State Lottery
Commission's FY 2018 Building Renewal Plan for
$122,200, which includes projects to prevent roof
leaks, improve building security, repair landscape
irrigation, and replace interior lighting the agency's
Phoenix headquarters. The FY 2018 Capital Outlay Bill
(Laws 2017, Chapter 306) appropriated a total of
$122,200 from the State Lottery Fund to the State
Lottery Commission to fund 100% of the building
renewal formula in FY 2018 for capital improvement
projects. The favorable review included provisions
with reporting requirements.

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

JCCR Meeting (Continued)
Arizona Board of Regents and Arizona State University –
Recommendations Concerning Commercial
Development of University Lands – The Committee
heard testimony from ASU on the proposed
development of a senior retirement community and
hotel/conference center on university land at Mill
Avenue and University Drive. Statute permits the
Committee to make recommendations concerning
commercial development on university land that does
not primarily serve a university population.
The Committee approved a motion that it is the intent
of the Committee that commercial developments of
this type fall under A.R.S. § 15-1682.02. Under this
statute, the universities are required to report on these
types of projects to the Committee for possible
recommendations.
The Committee's action included a provision that its
motion does not constitute a review of the planned
multi-level parking garage project or any bond
issuances necessary for its financing. Additionally, the
Committee included a standard university financing
provision.
Arizona State University – Consider Approval and
Review of the Hayden Library Renovation – The
Committee gave an approval and favorable review of
the $90 million Hayden Library renovation. Of the $90
million, $35 million will be financed as part of the
Capital Infrastructure Fund (CIF). The remaining $55
million will be financed with system revenue bonds.
Committee review is required for this portion of the
transaction. The CIF portion of the project will
constitute ASU's first use of the recently enacted $1
billion universitywide capital investment program. The
approval and favorable review included a provision
that ASU provide the Committee a copy of its Tax
Certificate in compliance with Internal Revenue Service
requirements concerning the expected economic life
of the projects. Additionally, the approval and
favorable review included standard university financing
provisions.
Arizona State University – Informational Item on West
Campus Property – ASU discussed its plans for the use of
undeveloped property at the ASU – West Campus and
plans to move the ASU – Thunderbird School of Global
Management campus from Glendale to Downtown
Phoenix.
University of Arizona – Review of Athletics Facilities
Projects – The Committee gave a favorable review of a
$67.9 million project to construct a new indoor athletics
practice facility and to renovate the softball field,
aquatic center, football stadium, and the McKale
Center locker rooms. To finance these projects, UA will
issue bonds totaling $67.2 million. The annual debt
service of $4.4 million will be paid primarily through a

new mandatory student athletic fee of $100 per
year. The project is not funded with any monies
from the $1 billion universitywide capital investment
program. The favorable review included standard
university financing provisions.

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Summary of Recent Agency Reports
Arizona Department of Administration – Report on
Repayment of State Debt and Obligations – Pursuant
to A.R.S. § 41-726, the Arizona Department of
Administration (ADOA) is required to report on the
amount of potential savings if the state repays the
balance of any outstanding long-term General Fund
financing obligations, under the following repayment
scenarios: $50 million, $100 million, $150 million, and
$200 million. Under the 4 repayment scenarios, ADOA
reported the following net lifetime savings in debt
service payments:
•
$50 million repayment – $24.5 million
•
$100 million repayment – $48.3 million
•
$150 million repayment – $71.4 million
•
$200 million repayment – $91.8 million
(Josh Hope)

classifications (totaling $145.6 million) to be
“reasonable” indicators of non-emergency use of ED
utilization data. Table 6 below provides a breakout by
AHCCCS recipient and total amounts paid. (Jon Stall)
Department of Child Safety – Quarterly Report on
Foster Care and Medicaid – Laws 2013, Chapter 220,
as amended by Laws 2016, Chapter 273, requires the
Department of Child Safety (DCS) to report on foster
care and Medicaid eligibility. During the first quarter
of FY 2018, DCS reports the following trends in foster
care and Medicaid eligibility:
1.

AHCCCS – Report on Emergency Department
Utilization – Pursuant to A.R.S. § 36-2903.11, AHCCCS
reported on Arizona emergency department (ED)
utilization. Currently there is no national standard for
identifying whether an ED visit was the result of an
emergency or non-emergency situation. Therefore,
AHCCCS continues to use the American College of
Emergency Physicians’ facility coding for the state’s
Medicaid population which assigns visits to 1 of 5
categories. Level I represents conditions such as acute
upper respiratory infection, removal of sutures, or
cough. Conditions such as severe burns or toxic
ingestions are classified as a Level V visit, the most
severe.
In FY 2016, total ED visits increased from FY 2015 by
59,836, or 5.6%, and cost a total of $544.6 million.
Compared to the prior year, that amount represented
an increase of $39.6 million in total payments for
AHCCCS recipients receiving ED services. Although
imperfect, AHCCCS believes the Level I-III

There were 14,849 children eligible for Medicaid in
foster care at the end of the first quarter, down
(6)% from 15,800 at the end of the fourth quarter
of FY 2017.
The percentage of foster care children eligible for
Medicaid decreased from 95% at the end of the
fourth quarter of FY 2017 to 94% at the end of the
first quarter of FY 2018.
The amount of non-Medicaid expenditures for
behavioral health inpatient facilities and
behavioral health residential facilities was $956,700
in the first quarter of FY 2018.
The amount of non-Medicaid behavioral health
counseling/psychiatric services expenditures was
$150,200 in the first quarter of FY 2018. (Patrick
Moran)

2.

3.

4.

Department of Child Safety – Third-Party Report on
CHILDS Replacement Project – Pursuant to an FY 2015
General Appropriation Act footnote, the Department
of Child Safety (DCS) provided an independent thirdparty assessment of the status of the Children’s
Information Library and Data Source (CHILDS)
Replacement Project for the second quarter of FY
2018.

Table 6
FY 2016 Emergency Department Utilization
By AHCCCS Recipients

Level

FY 2016
# Visits

FY 2016
% Total
Visits

I
II
III
IV
V
Total

40,106
148,109
388,003
374,985
174,924
1,126,127

3.6%
13.2
34.5
33.2
15.5
100.0%

% Change
From 2015
8.5%
4.4
3.6
5.0
12.3
5.6%

FY 2016
Amount Paid
($ in Millions)
$

4.2
24.7
116.7
206.2
192.8
$544.6

FY 2016
% Paid
Amount
0.8%
4.5
21.4
37.9
35.4
100.0%

Difference in
Amount Paid
from FY 2015
($ in Millions)
$ 0.8
1.2
6.1
12.2
19.3
$39.6

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Summary of Recent Agency Reports (Continued)
The vendor concluded that overall the CHILDS
replacement project continues to be positioned for
success. The report includes evaluations of several
indicators of plan viability, including plan completeness,
timeline, and staffing levels and skill sets. Of the 10
metrics gauging plan viability, the vendor concluded
that 7 metrics indicated “strong health," a decrease from
8 in the first quarter. The decrease is partly due to a
delay in the selection of the contractor for technical
integration of the new Guardian system.

Arizona Community Colleges – Annual Report –
Pursuant to A.R.S. § 15-1427, the Arizona Community
Colleges are required to report by December 1 of
each year on their progress during the previous
year. They have just submitted their FY 2017 report,
which includes the following summary information
on the state system:

The vendor also evaluated project management
practice, including communication risks to the project,
project scope, and resource management, and
concluded that the project exhibited strong health on 6
of 9 measures and moderate health on the remaining 3
measures. The overall project management practice
rating is unchanged compared to the prior quarter.
(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 November 2017. (See Table 7 below.)

•

The number of direct line child safety staff (caseworkers,
caseworkers in training, caseworkers awaiting training
and hotline staff) was 1,329 in November, or (77) 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
decreased by (7) since October.
There were also 1,390 non-direct line child safety staff in
November, or (121) fewer staff than the funded staffing
level. The budgeted staffing level is 1,511 excluding
Attorney General positions. Total non-direct line positions
decrease by (2) compared to October. (Patrick Moran)

•

•
•

283,010 students (headcount) were enrolled for
credit, resulting in a Full-Time Student
Equivalent count of 115,859.
92.0% of enrolled students resided within the
district, while 8.0% did not reside within the
district.
Total number of instructors employed was
9,409, of which 2,377 (25.3%) were full-time and
7,032 (74.7%) were part-time.
Total operating revenues were $1.6 billion (this
amount excludes bond proceeds and fund
balance which total $99.0 million).
Total expenditures were $1.7 billion. (Geoffrey
Paulsen)

Arizona Community Colleges – Report on Dual
Enrollment Threshold - Pursuant to A.R.S. § 15-1821.01,
the Arizona Community Colleges are required to
report by October 1 of each year if dual enrollment
by high school freshman and sophomore students
at a community college are in excess of 25% of the
high school students enrolled in dual enrollment at
that college. For FY 2017, no college exceeded the
25% limit. (Geoffrey Paulsen)
Arizona Department of Corrections - Third-Party
Report on Arizona Inmate Management System
(AIMS) Replacement – Pursuant to a FY 2017
General Appropriation Act footnote, the Arizona
Department of Corrections (ADC) provided
quarterly updates of the AIMS Replacement project
for the period ending August 31, 2017. The thirdparty reviewer reported a stable fiscal status and
cooperation between the vendor and department.
The review described revision of the implementation

Table 7
DCS Filled FTE Positions as of November 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

November
1,048
68
213
1,329
1,390
2,719

Difference
(142)
(8)
73
(77)
(121)
(198)

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Summary of Recent Agency Reports (Continued)
schedule to accommodate testing and integration
needs. Subsequent to the report, ADC indicated that
the current implementation of the system at all sites will
take place in March 2018 rather than the January 2018
deadline in the report. (Micaela Larkin)
Arizona Criminal Justice Commission – Report on
Criminal Justice Enhancement Fund – Pursuant to A.R.S.
§ 41-2401C, the Arizona Criminal Justice Commission
(ACJC) provided its annual report on Criminal Justice
Enhancement Fund (CJEF) monies distributed to law
enforcement agencies. CJEF consists of a 47%
assessment on certain fines, penalties, and forfeitures
imposed and collected by the courts. In FY 2017, CJEF
revenues totaled $32.6 million, a (16.0)% decrease from
FY 2016. Total funds available for the fiscal year,
including the beginning balance, interest, and
adjustments, was $57.7 million. FY 2017 CJEF
expenditures totaled $33.6 million. (Josh Hope)
Arizona Criminal Justice Commission – Report on AntiRacketeering Revolving Fund – Pursuant to A.R.S. §132314.01 and §13-2314.03, the Arizona Criminal Justice
Commission (ACJC) is required to report quarterly on the
activities of the Anti-Racketeering Revolving Fund
(ARRF). ACJC is required to compile quarterly
expenditures of the Attorney General, department,
agency, county attorney, and political subdivision
reports into a single comprehensive report of sources
and expenditures as well as report on forfeiture orders.
Laws 2017, Chapter 250 changed the timeframe for
ACJC's comprehensive report from annual to quarterly.
Laws 2017, Chapter 149 added new reporting
requirements for ARRF and requires additional details on
ARRF monies.
In the first quarter of FY 2018, ARRF received revenues
totaling $7.0 million and had expenditures totaling $2.6
million. Revenues for investigating and prosecuting
agencies were highest in Maricopa County at $5.4
million. Agencies participating in Maricopa County
cases also accounted for the highest expenditure total
for FY 2017 with $2.0 million in ARRF monies spent.
ARRF consists of monies derived from seized property
and assets that result from judgments pursuant to antiracketeering statutes. Once a settlement or conviction
is reached, the Attorney General disperses the monies to
the involved state and local investigative and
prosecutorial agencies. Additionally, assets seized as
part of a federal investigation are deposited into the
fund and used in accordance with state and federal
guidelines. Monies in ARRF are used to help fund the
investigation and prosecution of any offense defined as
racketeering pursuant to Arizona statutes. (Josh Hope)

Office of Economic Opportunity – Program Year 2016
Annual Report – Pursuant to A.R.S. § 41-5401, the
Office of Economic Opportunity's Workforce Arizona
Council (WAC) submitted its annual report on
workforce development, which addresses
performance metrics such as number of participants
and statewide program costs.
In Program Year 2016, WAC reported $315.9 million in
expenditures on the following 5 workforce programs.
The largest groups served were low income
individuals, the long-term unemployed, English
language learners, and single parents.
•

•

•

•

•

Adult, youth, and dislocated worker programs
provided career services and training to 16,673
individuals at an average cost of $2,677 per
person funded via the Department of Economic
Security (DES).
Adult education and literacy programs provided
basic educational opportunities for 13,205 adults
at an average cost of $44 per participant
funded via the Arizona Department of
Education.
Employment service offices, which provide onestop assistance to job seekers, served 53,555
individuals at an average cost of $254 per person
funded via DES.
Vocational rehabilitation programs provided
services to 8,697 persons with disabilities at an
average cost of $7,044 per person funded via
DES.
The state's community colleges expended $195.8
million of federal, state, and local funds on
career and training services. (Sam Beres)

Department of Economic Security – Report on
Domestic Violence – Pursuant to an FY 2017 General
Appropriation Act footnote, the Department of
Economic Security reported the amount of state and
federal monies available for domestic violence
funding in FY 2017. Six agencies spent a total of $32.4
million in domestic violence funding, a 18.6% increase
in revenue from FY 2016. The extra funding is due
almost entirely to a $3.6 million increase in Federal
Funds and a $1.5 million increase from the Domestic
Violence Services Fund, authorized by the Legislature
in the FY 2017 General Appropriation Act. (Chris
Gustafson)
Department of Education – Report on Education
Learning and Accountability System – Pursuant to
A.R.S. § 18-104, the Arizona Department of Education
(ADE) must contract with an independent third-party
vendor to provide additional oversight on the
development of ADE’s Arizona Education Learning

12

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Summary of Recent Agency Reports (Continued)
and Accountability System (AELAS). The vendor’s
most recent quarterly review, based on its July site
visit, was received on November 27, 2017.
The report states that a new 35% cap on the total
markup allowed for contracted staff is causing ADE
to experience a loss of contract staff due to their
salaries and/or benefits being reduced or because
their vendors prefer to serve other non-government
customers where the cap does not apply. ADE has
clarified that this cap refers to a change that took
effect as part of a renegotiated statewide contract
with the state procurement office. The review notes
that contract staff represent over 60% of ADE's IT
department staff.
The report also included feedback from districts that
suggests very limited use of the AzDash component
of AELAS due to the lack of student performance
data being loaded into the system on an ongoing
basis for teachers to use. As a result, districts have
begun purchasing dashboards and learning
management systems from other sources.
The report estimates that the Opt-in Statewide
Student Information System (SIS) "is anticipated to
remain cash positive only until December 31, 2018,"
and that ADE has not yet made a decision as to the
long-term future of the program.
The report states that "districts that were interviewed
reported that overall acceptance of AELAS is good.
It has much better system up-time and availability
for data submittal, is more user friendly, and provides
reports much quicker than the old SAIS system."
(Matt Beienburg)
State Mine Inspector – Report on Abandoned Mines
Safety Fund Expenditures and Contributions – The
State Mine Inspector is required by A.R.S. § 27-131 to
establish a program to address public safety hazards
at abandoned mines. A.R.S. § 27-131 created the
Abandoned Mines Safety Fund (AMSF) to fund the
program. The Mine Inspector submitted its annual
report for FY 2017 detailing the contributions to the
AMSF and the expenditures by the fund during the
preceding fiscal year.
For FY 2017, the State Mine Inspector reports that the
AMSF received $10,000 in new revenue. The State
Mine Inspector located, inventoried, and evaluated
18 mine sites during FY 2017, 5 of which were closed
using AMSF monies. The Mine Inspector expended
$11,700 on these activities, of which $6,300 was
funded from the AMSF and $5,400 was funded from

the General Fund. The fund's carry-forward balance
totaled $134,800 at the end of FY 2017. The Mine
Inspector has completed preliminary planning for
closure of 19 mine sites in FY 2018, at an estimated
cost of $19,000. (Henry Furtick)
Commission for Postsecondary Education – Report on
Postsecondary Education Grant Program – A.R.S. §
15-1855 requires the Commission for Postsecondary
Education (ACPE) to report annually on its
Postsecondary Education Grant (PEG) program.
The PEG program provides grants to students
attending private postsecondary institutions. The
program was launched in March 2007 and received
funding through FY 2010. In FY 2010, a total of $2.2
million was disbursed to 1,400 grantees representing
20 private postsecondary schools. Funding was
eliminated after FY 2010 and the program was
repealed by Laws 2017, Chapter 243.
Since its inception, 4,466 students received a PEG
loan. Of those recipients, 3,340 have already
graduated with a baccalaureate degree. The
remaining recipients are either currently enrolled and
working on completing their degree or not enrolled or
attending the last institution on file at the time of their
last grant award.
The FY 2016 Higher Education Budget Reconciliation
Bill (BRB) (Laws 2015, Chapter 16), allows the
commission to contract with a third-party vendor to
collect outstanding PEG debt. The BRB also allows
the commission to use Postsecondary Education
Student Financial Assistance funds to administer PEG
collections. The commission has begun a PEG
repayment program for those who do not meet loan
forgiveness requirements and indicates available
monies are not sufficient to contract with a thirdparty. (Morgan Dorcheus)
Commission for Postsecondary Education – Report on
the Arizona Teacher Student Loan Program – A.R.S. §
15-1782 requires the Commission for Postsecondary
Education to report annually on the Arizona Teacher
Student Loan (ATSL) program, formerly the Math,
Science, and Special Education Teacher Loan
Forgiveness (MSSE) program.
Since 2007, the MSSE program has provided
forgivable loans to eligible students attending any
regionally or nationally accredited institution in
Arizona (public or private) who agree to a service
commitment to teach in an Arizona public K-12
school. Laws 2017, Chapter 244 changed the name

13

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Summary of Recent Agency Reports (Continued)
of the program to the ATSL program and expanded
program to also include non-MSSE teachers practicing
in rural, low-income, and tribal schools.
In FY 2017, the ATSL program had 49 applicants and
disbursed 31 loans. This total includes 22 new loans
and 9 renewals. The total disbursement was $168,700.
Of the 31 recipients, 15 are studying special
education, 9 are studying elementary education, 4
are studying mathematics, and 3 are studying
science. Ten recipients attend private postsecondary
institutions and 21 attend public universities.
The commission is responsible for collecting retention
data for loan recipients. At the conclusion of FY 2017,
289 students have participated in the ATSL program.
Of those, 23 are still enrolled in a postsecondary
institution, 20 are in the 12-month grace period, 25 are
teaching in a public K-12 school in Arizona, 160 had
their loan forgiven for completing their teaching
service, 29 are in repayment, 10 have paid their loan
balance in full, and 22 have had their loans referred to
the Attorney General. (Morgan Dorcheus)
Arizona Board of Regents – Report on University
System’s Financial Aid – Pursuant to A.R.S. § 15-1650,
the Arizona Board of Regents has submitted its annual
report on financial aid. Highlights from the FY 2017
report include:
•
•

•

•

•

•

Approximately $2.5 billion in total financial aid was
provided to students.
Of this amount, $1.05 billion (43.7%) came from
federal sources, $865.1 million (34.1%) came from
tuition and other sources, $581.6 million (22.9%)
came from private sources and the Arizona
Financial Aid Trust (AFAT) (AFAT distributed $20.2
million of both state General Fund and institutional
monies in FY 2017), and $861,300 (0.03%) came
from state scholarships, grants and loans.
A total of 158,888 students received aid, including
129,981 undergraduate students and 28,907
graduate students.
Of the undergraduate students receiving aid,
33,646 received non-need-based gift aid, 68,761
received need-based gift aid, and 55,549 were
awarded miscellaneous types of non-gift aid (i.e.
work study). Some students received multiple
types of aid.
The average aid package for undergraduate
students was $12,295, which includes both need
and non-need-based aid.
58.1% of undergraduate students and 53.7% of
graduate students have debt. Of those students

with debt, the average undergraduate student
debt was $23,844 upon graduation, while the
average graduate student debt was $49,365.
(Matt Beienburg)
Arizona Board of Regents – Report on List of Qualifying
Examinations for College Credit by Examination
Incentive Program – Pursuant to A.R.S. § 15-249.06,
the Arizona Board of Regents (ABOR) is required to
annually submit for JLBC review a report on the list of
qualifying examinations—and passing scores—high
school students may take to obtain college credit
and trigger bonus funding for their teachers and
schools. At its December 2016 review of ABOR's list of
qualifying examinations, the JLBC adopted a
provision that ABOR must continue to submit a report
each year, but that Committee review is not required
unless the list of examinations and scores is changed
from the prior year.
ABOR reports that the list of tests and passing scores in
FY 2018 is unchanged from FY 2017 and includes
Advanced Placement (AP), Cambridge International
Exam (CIE), and International Baccalaureate (IB)
courses in science, mathematics, English language
arts. (Matt Beienburg)

14

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

November Spending
November 2017 General Fund spending was $663.6
million, which is an increase of $79.2 million above
November 2016. (See Tables 8 & 9).
•

Year-to-date, Department of Education (ADE)
spending has increased by $69.8 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 8
General Fund Spending ($ in Millions)
Change From

YTD Change

Nov 17

Nov 16

Year-to-Date

from FY 17

AHCCCS

143.8

28.2

824.0

112.8

Corrections

77.0

(3.2)

476.7

36.7

Child Safety

24.5

(3.7)

160.5

(4.3)

Agency

5.8

(5.2)

490.6

23.9

295.1

45.3

2,303.1

69.8

Health Serv ices

7.0

(0.6)

42.0

0.8

Public Safety

2.6

0.2

46.4

3.6

School Facilities Board

0.1

0.0

210.9

39.9

Univ ersities

62.1

3.7

295.7

11.3

Economic Security
Education

Leaseback Debt Serv ice

0.0

0.0

84.1

(0.0)

Other

45.6

14.5

282.1

3.9

Total

663.6

79.2

5,216.1

298.4

15

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Table 9

General Fund Spending
($ in Thousands)
Agency

November 17

Change from
November 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

1,577.2
55.4
19.5
742.4
143,800.5
1,636.4
65.4
24,527.5

75.8
(10.5)
10.3
(305.0)
28,199.5
43.3
(78.1)
(3,659.3)

20,582.9
84,115.1
456.3
59.7
4,271.1
823,957.2
11,005.0
448.1
160,530.1

634.3
(2.3)
65.5
9.8
61.8
112,774.7
1,181.6
(3.4)
(4,260.0)

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

1,791.7
290.2
56.1
76,967.5
15,650.7
2,129.8
55.3
5,791.9
108.3
295,085.0
693.8
12.9
34.3
96.7
164.2
430.6
814.7
6,950.6
173.1
78.1
342.7

(21.9)
(237.1)
(3,184.6)
15,650.7
1,377.8
55.3
(5,160.3)
(14.9)
45,330.4
122.9
(5.2)
(0.6)
47.8
(37.6)
(1.2)
105.0
(573.7)
(564.2)
(30.1)
19.1
(69.8)
(169.2)
(307.0)

9,108.5
26,334.0
1,248.2
476,741.7
15,650.7
10,684.5
218.1
490,611.0
525.6
2,303,132.0
5,048.4
2,823.6
82.8
308.7
452.4
836.2
4,539.4
1,779.5
5,023.7
42,016.8
1,059.0
366.5
248.9
0.6
2,334.7

75.0
673.2
759.9
36,671.5
1,650.2
(569.3)
(352.2)
23,929.5
80.5
69,782.4
1,245.1
(5.4)
(27.3)
189.1
(410.7)
2.4
1,655.0
711.6
831.9
(446.2)
20.0
(142.4)
(558.9)
158.5

2,366.8
1,078.6
2,350.3

715.4
58.3
(50.9)

45,750.0
5,995.6
9,764.2

954.0
62.1
(1,722.1)

16

JLBC – MONTHLY FISCAL HIGHLIGHTS – DECEMBER 2017

Table 9 (Continued)

Agency
State Land Department
Legislature
Auditor General
House of Representatives
Joint Legislative Budget Comm.
Legislative Council
Senate
Mine Inspector
Nav. Streams & Adjudication
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 - ADOT Capital
Other
Total

November 17
552.3

Change from
November 16
(633.2)

1,582.8
1,015.9
237.5
481.1
646.4
85.3
8.5
2,608.2
113.0
158.7
1,425.2
89.8
763.0
20.5
2,489.2
1.3
1.1
3,979.2
26,688.3
9,051.1
22,384.2
394.4
2,846.2
33.6
663,594.7

Year-to-Date

YTD Change
from FY 17

5,331.6

474.2

(218.2)
90.5
82.9
(401.6)
47.4
13.0
(0.4)
223.4
25.0
9.2
(444.3)
5.6
(441.1)
(1.3)
(640.2)
1.3
(1.0)

9,200.9
5,489.8
1,072.9
2,901.5
3,713.0
529.4
57.7
22,499.0
823.4
46,413.3
6,000.0
567.7
1,164.0
13,389.9
210,864.0
7,412.1
136.5
4,978.4
27.5
13.4

774.6
336.4
77.3
71.1
126.6
22.1
(3.6)
2,050.0
127.1
3,645.7
(356.1)
(81.3)
(496.1)
39,949.1
(6,312.8)
2.2
71.4
26.8
(16.8)

41.3
2,012.1
614.7
1,072.6
(70.6)
2,080.9
(9.1)
(1,500.0)
(50.8)
79,238.2

5,038.3
133,441.2
45,255.3
111,992.3
2,310.4
6,868.5
(1.0)
482.8
62.5
5,216,147.2

(7,339.7)
10,060.3
3,123.0
5,434.6
(147.8)
2,400.6
(1.0)
(1,500.0)
167.3
298,364.8

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

3.2% Y/Y Growth
(October 2017)

Jan 09

$19

3

JLBC
100%

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

$25.23 / Hour
(October 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

December 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

Jan 08
July 08

$21

Jul-15

Jan 07
July 07

$ / Hour
$22

Jan-16

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

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

30,000

15,538 Claims
(November 2017)

25,000

20,000

15,000

10,000
5,000

150%

(3.5)% Y/Y Growth
(November 2017)

50%

0%

-50%

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

Single Family Unit
Multi-Family Unit

3.8% Y/Y Growth
(November 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

- 27,099 Permits

40,000

- 11,255 Permits
(October 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

$191.1 million
(November 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 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

$44.5 million
(November 2017)

$150
$25

$0

19.7% Y/Y Growth
(November 2017)

6