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

www.azleg.gov/jlbc.htm

“December
2017 General
Fund revenues
were $1.02
billion, which
represents an
increase of
19.5% above

Summary
December 2017 General Fund revenues
were $1.02 billion, which represents an
increase of 19.5% above the prior year and
$129.7 million above the enacted budget
forecast. This level of revenues during
December 2017 was the all-time highest
amount of General Fund revenues collected
during December in the state's history.
The significant increase in the state's revenue
collection was caused by Individual Income
Tax payments, which more than doubled
compared to the prior year and also
reached a record level for the month of
December.
There are several potential reasons for the
surge in Individual Income Tax payments.
Taxpayers may have increased their
December estimated payments to take
advantage of the more generous allowance
for State and Local Tax (SALT) deductions still
in place for Tax Year (TY) 2017 Federal
income tax filings. Recent federal tax
changes will limit these deductions to
$10,000 annually beginning in TY 2018.
While taxpayers may have increased their
estimated payments in December due to
federal changes to the SALT deduction, this
action would not affect a taxpayer's
underlying TY 2017 tax liability. With no

million above
the enacted
budget
forecast.”

This report has been
prepared for the Arizona
Legislature by the Joint
Legislative Budget
Committee Staff on
January 22, 2018.

change occurring in overall tax liability, an
artificial increase in December payments due
to this tax filing strategy would lead to an
associated increase in refunds during the April
tax filing season.
In addition, the stock market saw very healthy
gains during 2017, with the Dow Jones
Industrial Average Index increasing by
approximately 25% during the year. In
response to growing capital gains, taxpayers
may have increased their estimated
payments during December.
There are also more speculative potential
reasons for the payment increase seen in
December. It is unclear how pass-through
businesses may have contributed to these
gains. The income from these business entitles
(typically small businesses) are reported by
owners on their individual tax forms – an
increase in their profitability can trigger a
growth in payments.
And finally, there is the possibility that the
gains seen in December simply relate to a
timing issue. The estimated payments were
due January 15 and may have just been
processed more quickly in December. The
preliminary January data, however, suggests
that payment growth remains strong this
month as well.

Table of Contents

the prior year
and $129.7

January 2018

Summary
• JLBC Baseline Summary .................................... 2

• DCS – Court Authorized Removals ................ 10

December Revenues............................................. 2

• ACJC – State Aid Report ................................. 11

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

• ADE – Broadband Expansion Report ............. 11

JLBC Summary ........................................................ 8

• ADE – Budget Status Report ............................ 11

Summary of Recent Agency Reports

• DEQ – E-Licensing Report ................................ 11

• AHCCCS – Inpatient Psychiatric Treatment... 8

• JLBC Staff – Public Programs Report.............. 12

• AHCCCS – Arnold v. Sarn Report..................... 8

• Ombudsman – Annual Report ....................... 12

• AHCCCS – Reconciliation Payment Report .. 9

• ABOR/Comm. College – Articulation ............ 12

• AHCCCS – Hawaii Data Processing ................ 9

• ABOR – Resident Student Cost Report .......... 12

• DCS – Monthly Hiring Report............................ 9

December Spending............................................ 14

• DCS – Report Consolidation ........................... 10

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

2

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary (Continued)
Year-to-date, excluding Urban Revenue Sharing and
one-time fund transfers, FY 2018 General Fund
revenues are 6.1% above the prior year and are
$142.3 million above forecast.
In comparison to December revenues of $1.02 billion,
December 2017 spending was $596.3 million, which is
a decrease of $(23.6) million below the prior year.
Fiscal year-to-date, General Fund revenues of $4.84
billion have been exceeded by $5.82 billion of
expenditures.
The operating fund balance consists of the General
Fund and certain dedicated funds. The operating
balance as of mid-January 2018 is $2.16 billion.
In addition to the state’s operating fund, the Budget
Stabilization Fund (BSF) has a balance of $455.1 million.

JLBC Baseline Summary
On January 12, JLBC Staff released its FY 2019
Baseline budget. The Baseline reflects a consensus
economic forecast and statutory funding formula
requirements. The following summarizes the FY 2019
Baseline:
•

•

For FY 2019, projected General Fund revenues
are $9.95 billion and projected spending is
$10.06 billion, leading to an estimated FY 2019
cash shortfall of $(108) million.
The ending balance projections exclude the
state's $455 million Budget Stabilization Fund.

In addition, the JLBC Staff has also published a
comparison of the Baseline with the Executive
Budget.

December Revenues
Table 1

December
Year-to-Date

General Fund Revenues ($ in Millions)
FY 2018
Collections
$ 1,017.4
$ 4,839.9

Sales Tax collections of $388.3 million were 7.6% above
December 2016 and $11.9 million above the forecast for
the month. Year to date, collections have increased by
6.0% and are $43.6 million above the enacted budget
forecast.
The 5 major categories of the state’s sales tax shown in
Table 2 account for approximately 90% of total
collections. December’s revenue gain was largely due to
the use tax and prime contracting category, which
increased, year over year, by 24.5% and 15.3%,
respectively.

Difference From
Enacted Forecast
$ 129.7
$ 142.3

Difference
From FY 2017
$ 166.0
$ 288.1

Table 2

Sales Tax Growth Rates
Compared to Prior Year
December
YTD
Retail
4.7%
4.6%
Contracting
15.3%
13.4%
Use
24.5%
10.0%
Restaurant & Bar
6.1%
5.5%
Utilities
(1.0)%
2.2%
Individual Income Tax net revenues of $574.0 million in
December were $162.3 million more than in the prior
year and $137.2 million above the forecast for the
month. Year to date, revenue has grown 10.3% over the
prior year.
As indicated in Table 3, December withholding
revenues increased by 4.6% from last year and were

3

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

December Revenues (Continued)
$3.4 million above the forecast. Year-to-date
withholding collections are 5.4% above FY 2017.
December Individual Income Tax refunds totaled $(3.2)
million – this compares to $(32.6) million in December
2016 and a forecasted amount of $(25.7) million. Year to
date, refunds have led to a $1.7 million revenue increase
compared to the enacted forecast.
Table 3

Individual Income Tax Growth Rates
Compared to Prior Year
December
YTD
Withholding
4.6%
5.4%
Estimated/Final Payments
116.5%
32.8%
Refunds
(90.2)%
2.7%
Corporate Income Tax net collections were $37.0 million
in December, which was $(27.5) million less than in the
prior year and $(8.8) million below the forecast. Year to
date, collections are $(48.8) million below prior year
collections and $(7.6) million below the enacted
forecast.
Insurance Premium Tax collections of $52.2 million in
December were $2.6 million above the prior year and
$(1.1) million below the forecast. Year to date,
collections are 3.1% above last year.
The Lottery Commission reports that December ticket
sales were $84.7 million, which is $14.3 million, or 20.2%,
above sales in December 2016. Sales during the month
were boosted by high jackpots available for the
Powerball and Mega Millions games. Year-to-date sales
are 19.7% above the prior year. In terms of General Fund
collections, year-to-date lottery revenues are $0.3 million
above the same period last year and $4.5 million above
the forecast.
Highway User Revenue Fund (HURF) collections of $123.8
million in December were up 5.6% compared to
December of last year and were $1.7 million above
forecast. Year-to-date collections are 3.7% above last
year.
Due to delays in reporting final November revenues for
various revenues sources, DOR has made technical
adjustments to prior month collection figures. For
December, DOR has increased the amount of prior
General Fund revenue collections by $0.4 million, and
the adjustment has been included in the reported yearto-date results.

4
Table 4

General Fund Revenue:

Change from Previous Year and Budget Forecast
December 2017
Current Month

FY 2018 YTD (Six Months)

Change From
Actual

December 2016

December 2017

Amount

Change from
Budget Forecast

Percent

Amount

Actual

Percent

December 2016

December 2017

Amount

Budget Forecast

Percent

Amount

Percent

Taxes
Sales and Use

$388,327,446

$27,275,191

574,038,633

162,341,506

39.4

37,044,304

(27,524,457)

(42.6)

(8,753,914)

(19.1)

146,411,612

Property

1,383,304

(3,544,904)

(71.9)

(7,279,225)

(84.0)

18,522,286

398,165

2.2

Luxury - Tobacco

1,967,982

138,346

7.6

0

0.0

11,208,200

(99,883)

(0.9)

3,154,766

(58,770)

(1.8)

0

0.0

17,058,300

529,208

3.2

763,249

6,215,639

3.1

Income - Individual
- Corporate

- Liquor
Insurance Premium

7.6 %

$11,851,844
137,185,365

3.1 %
31.4

$2,308,659,423

$130,177,160

2,387,589,901

223,521,464

10.3

6.0 %

(48,800,578)

(25.0)

$43,592,238
122,675,785

1.9 %
5.4

(7,550,551)

(4.9)

(2,788,646)

(13.1)

(426,661)

(3.7)
4.7

52,176,521

2,591,672

5.2

(1,064,560)

(2.0)

208,626,695

39,553

3,121

8.6

(140,584)

(78.0)

254,162

$1,058,132,511

$161,221,705

Lottery

6,286,112

6,286,112

--

27,065,387

321,344

1.2

4,493,472

License, Fees and Permits

2,929,073

(959,721)

(24.7)

(365,335)

(11.1)

20,680,572

2,258,413

12.3

4,817,444

30.4

3,156

(19,472)

(86.1)

(7,891)

(71.4)

266,403

95,355

55.7

149,983

128.8

Other Taxes
Sub-Total Taxes

18.0 %

$131,798,926

14.2 %

$5,098,330,579

(997,985)
$310,943,189

(79.7)
6.5 %

(1,068,259)

(0.5)

(1,492,577)

(85.4)

$153,704,578

3.1 %

Other Revenue

Interest

--

6,286,112

19.9

Sales and Services

1,116,661

477,706

74.8

(646,155)

(36.7)

9,276,734

(1,666,612)

(15.2)

(3,033,115)

(24.6)

Other Miscellaneous

2,774,890

469,213

20.4

(548,771)

(16.5)

10,817,232

(9,800,016)

(47.5)

(10,484,295)

(49.2)

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

0
2,856,351

0
(43,436)

-(1.5)

$15,966,244

$6,210,401

63.7 %

$1,074,098,754

$167,432,106

18.5 %

0
(6,852,753)
($2,134,793)
$129,664,133

--

0

(70.6)

13,869,751

(4,265,091)

0

(11.8) %

$81,976,078

($13,056,607)

13.7 %

$5,180,306,658

$297,886,582

-(23.5)
(13.7) %
6.1 %

0
(7,354,937)
($11,411,449)
$142,293,129

-(34.7)
(12.2) %
2.8 %

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) %

(340,385,040)
0
(340,385,040)

(8,593,956)

0

(0.0)

(1,191,548) (100.0)

2.6

0

--

(9,785,504)

3.0 %

0

(0.0) %

$142,293,129

3.0 %

$1,017,367,914

$165,999,780

19.5 %

$129,664,133

14.6 %

$4,839,921,618

$288,101,078

6.3 %

$123,775,143

$6,520,428

5.6 %

$1,736,173

1.4 %

$714,655,709

$25,800,818

3.7 %

Non-General Funds
Highway User Revenue Fund

($4,508,760)

(0.6) %

5

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

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 3.2% 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, inventory investment, and exports. Increases
in these categories were partly offset by decreases in
residential fixed investment.
The Conference Board’s U.S. Consumer Confidence
Index decreased by (5.1)% to 122.1 in December and
represented the largest monthly decrease in over 2
years. The latest reading is 7.8% above the index in
December 2016, slowing substantially from year-overyear growth of 17.6% in November. The decrease in
December reflected greater consumer pessimism about
near-term economic expectations. Economists suggest
the monthly decrease may have been temporarily
caused by the then uncertain outcome of federal tax
law changes.
According to the U.S. Department of Commerce Bureau
of Economic Analysis, the U.S. Personal Consumption
Expenditure Price Index (PCEPI) increased 0.2% in
November. Monthly growth was primarily driven by
energy prices, which rose 4.3% during the month. The
index’s year-over-year growth rate increased from 1.6%
in October to 1.8% during the month, and is starting to
approach the Federal Reserve Bank’s (Fed) 2.0% annual
inflation target. The index for core inflation (all items less
food and energy) was 1.5% above the reading in
November 2016. The Fed chose to raise short-term
interest rates by 0.25% at its December meeting, under
the expectation that overall and core inflation is set to
gradually rise to its 2.0% target.
Consumer prices, as measured by the U.S. Consumer
Price Index (CPI), increased 0.1% in December and
increased 2.1% above December 2016 prices. The index
increase is primarily due to a 0.4% increase in the shelter
index, offsetting a decrease in the energy index. The
monthly increase was also supplemented by a mild
increase in the food index. Core inflation (all items less
food and energy) increased 0.3%, and other increases
include the indexes for medical care and new vehicles.
The indexes for apparel, airline fares, and tobacco saw
decreases for the month.
The Conference Board's U.S. Leading Economic Index
increased 0.4% in November to 130.9 and stands 5.5%

above its November 2016 reading. The downward
pressure of hurricane damage has subsided, and the
index is now following a more typical growth pattern.
The strongest positive contributor for the month was the
Institute for Supply Management (ISM) new orders
index, followed by the indexes for consumer
expectations and stock prices, partially explained by
potential tax cuts. The most significant negative
contributor for the month was the average weekly
initial claims index. Of the index's 10 components, 6
made positive contributions for the month.
ARIZONA
Housing
Single-family housing construction is increasing. In
November, Arizona’s 12-month total of single-family
building permits was 27,355, or 13.0% more than a year
ago. The comparable single-family permit growth rate
for the entire U.S. was 10.2%.
The 12-month total of multi-family building permits has
been up and down. In November, Arizona’s total of
10,722 multi-family building permits was (0.1)% less than
in 2016. Nationwide multi-family permits were (0.5)%
less than in 2016.
Tourism
Revenue per available room was $74.38 in November,
which was 6.1% above the amount in November 2016.
Ridership through Phoenix Sky Harbor Airport during the
month was up 1.1% compared to November 2016.
Employment
According to information released by the Office of
Economic Opportunity (OEO), the state added 5,700
net new nonfarm jobs in December over the prior
month. This was slightly less than the average
employment gain for December in the prior 5 years,
which was 6,400.
Year over year, the state added 42,500 net new jobs in
December. This corresponds to a job growth rate of
1.5%. The average employment gain for all of
calendar 2017 was 46,800, or 1.7%. This is the lowest
number of net new jobs added in Arizona since 2011.
The state’s unemployment rate increased from 4.3% in
November to 4.5% in December. This was the first
increase of the jobless rate since May 2017. The U.S.
unemployment rate remained unchanged at 4.1% in
December.
OEO reported that 14,339 initial claims for
unemployment insurance were filed in December, a
decrease of (7.8)% compared to the same month last
year.

6

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Monthly Indicators (Continued)
According to OEO, the state had a total of 20,478
claimants receiving unemployment insurance benefits
in December, a decrease of (10.5)% from November.
This figure is (13.6)% below the December 2016 level.
In November, the Average Weekly Hours worked by
individuals in Arizona’s private sector was 34.8 hours.
This workload was (1.1)% below the level during the prior
month, as well as 1.8% above the level in November
2016.
The Average Hourly Earnings received by private sector
workers was $25.57, which is (1.0)% below the average
in the prior month. Year-over-year growth in earnings
slowed from 5.7% in October to 5.1% in November, but
remained above 5.0% for the fifth consecutive month.
The U.S. Department of Commerce Bureau of Economic
Analysis quarterly releases estimates of annual Personal
Income received in each state. This measure includes
wages and salaries, proprietors’ income, dividends,
interest, rent, and various supplements to income while
excluding capital gains, contributions for government
social insurance, and pension benefit payments.
In the third quarter of 2017, Arizona personal income
increased year-over-year by 2.4%, to $290.2 billion. The
largest component of personal income, wages and
salaries, grew 1.4%. This rate reflects a slowdown from
growth of 2.9% and 5.4% during the second and first
quarters of 2017, respectively. Weak year-over-year
wage growth does not appear to be consistent with
average growth of 6.2% in average hourly earnings
during the same quarter. The reasons for the
divergence in the 2 measures is not clear.
The latest estimates for personal income are preliminary
and subject to revision. In its most recent estimates, the
Bureau of Economic Analysis revised its prior estimate of
2017 second quarter personal income growth down
from 3.9% to 3.2%.
State Agency Data
At the beginning of January 2018, the total AHCCCS
caseload was 1.84 million members. Since the federal
health care expansion in January 2014, the overall
AHCCCS population has grown by 584,600 members.
Total monthly enrollment decreased by (12,600) during
December and is (1.3)% lower than a year ago. The
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 (9,900), or (0.8)%.
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 January 1, 2018, enrollment in the
program reached 24,800, or 200 more than the prior
month’s enrollment.
In January 2014, the state started accepting new
enrollment to the Proposition 204 childless adults
program. In December 2017, the childless adult
population decreased by (1,100), or (0.4)%. At
312,900, this population is (1.0)% lower than a year
ago.
The state also opted to expand adult Medicaid
coverage to 133% of FPL. Their enrollment decreased
by (900) in December and now totals 80,300
individuals. Enrollment is (1.8)% lower than a year
ago. The percentage of this population's cost that
the federal government funds decreased from 95% to
94% in January 2018.
There were 16,896 TANF recipients in the state in
December, representing a (0.4)% monthly caseload
decrease from November. The year-over-year
number of TANF recipients has declined by
(14.4)%. 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 December, 883,778 people received food
stamp assistance in the state, representing a (1.1)%
decrease over November caseloads. Compared to
December caseloads last year, the level of food
stamp participation has declined by (7.8)%.
The inmate population was 41,964 as of December 31,
2017. This is a (0.5)% decrease since November, and
a (0.8)% decrease since last December.
Based on information the Department of Child Safety
provided for November 2017, reports of child
maltreatment totaled 47,575 over the last 12 months,
a decrease of (1.2)% over the prior year. There were
15,774 children in out-of-home care as of October
2017, or (12.1)% less than in October
2016. Compared to the prior month, the number of
out-of-home children decreased by (0.6)%.

7

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018
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 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

December
3rd Q 2017
December
December
December
December
December
November
November

4.5%
9.9%
14,339
20,478
2,815,500
167,700
142,500
34.8
$25.57

0.2%
(0.6)%
(7.7)%
(10.5)%
0.2%
1.8%
0.4%
(1.1)%
(1.0)%

(0.5)%
(1.0)%
(7.8)%
(13.6)%
1.5%
3.5%
6.3%
1.8%
5.1%

April
April
April

$1,117 million
$342.9 million
$463.6 million

15.3%
4.1%
26.6%

5.4%
4.3%
9.3%

November
November

27,355
10,722

0.9%
(4.7)%

13.0%
(0.1)%

November

5,286

1.6%

(1.9)%

November
October
November
November

$264,900
173.64
2,889
21,847

2.3%
0.3%
(3.6)%
(5.3)%

9.1%
6.0%
(13.3)%
(11.5)%

November
September
November
November

3,597,660
1,539,048
225,879
$74.38

(1.5)%
(19.4)%
(8.9)%
(10.2)%

1.1%
15.8%
14.9%
6.1%

6.1%
$290.2 billion
7,016,270

(1.5)%
0.7%
N/A

1.8%
2.4%
1.6%

May
May

AA / Aa2
Stable

N/A
N/A

N/A
N/A

January 1st

1,842,780
1,057,141
312,944
188,088
80,306
24,767
61,015
118,519

(0.7)%
(0.7)%
(0.4)%
(1.2)%
(1.1)%
1.0%
0.2%
(0.9)%

(1.3)%
(3.2)%
(1.0)%
2.4%
(1.8)%
85.0%
3.6%
(2.4)%

November
October
December
December

47,575
15,774
1,321
41,964

0.1%
(0.6)%
(6)
(0.5)%

(1.2))%
(12.1)%
(19)
(0.8)%

December
December

16,896
883,778

(0.4)%
(1.1)%

October
October

19,255
28,289

November
3rd Q 2017
July 2017

3rd Q, 2017
(3rd Estimate)
December
November
December
November

67
(302)

(14.4)%
(7.8)%
276
509

$17.2 trillion

2.3%

3.2%

122.1
130.9
248.0
113.5

(5.1)%
0.4%
0.1%
0.2%

7.8%
5.5%
2.1%
1.8%

8

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

JLBC Meeting
At its January 9, 2018 meeting, the Joint Legislative
Budget Committee considered the following issues:
Arizona Department of Administration/Automation
Projects Fund – Review of FY 2018 Data Center Project
(Automation Projects Fund) – The Committee gave a
favorable review to $3,405,100 in proposed FY 2018
expenditures from the Automation Projects Fund for
information technology projects related to the State
Data Center at the ASET Office in ADOA. The review
included several provisions related to ADOA's future
plans for the 1510 W Adams facility and operational
savings from the data center project.
AHCCCS – Review of Capitation Rate Changes for
Plan Years 2017 and 2018 – The Committee gave a
favorable review of AHCCCS' plans to adjust
capitation rates for numerous programs. In
aggregate, the rate adjustments are 2.7%. This rate
increase is within the 3.0% budgeted rate increase
funded in the enacted FY 2018 budget, primarily due
to savings associated with lower-than-expected
growth in utilization and unit costs. These savings will
fund $27 million of substance abuse and behavioral
health initiatives. The Committee, however, gave an
unfavorable review to AHCCCS' timing of its
submission as it did not comply with statutory
requirements for JLBC review of new rates prior to
implementation.

Arizona Department of Education – Review of
Additional Empowerment Scholarship Account
Administrative Funding – The Committee gave a
favorable review of the expenditure plan for the
additional $400,000 appropriated in FY 2018 for
Empowerment Scholarship Account administration.
ADE indicates it will use approximately $263,000 for
salaries and benefits, $96,000 for information
technology upgrades to simplify application and
expense reporting processes, and $41,000 for
indirect and capital costs.
JLBC Staff – Consider Approval of Index for School
Facilities Board Construction Costs – The Committee
gave a favorable review of a 3.12% adjustment in
the cost-per-square-foot factors. The adjustment is
based on the change in the Rider Levett Bucknall
(RLB) Phoenix construction cost index since the cost
factors were last adjusted in December 2016. The
Committee has used the methodology for the last 3
years. The adjusted index does not apply to schools
approved for funding in FY 2019. This adjustment will
cost the state an estimated $771,400 in total for
school construction projects that start in FY 2020
based on preliminary school construction approvals
by SFB.

Summary of Recent Agency Reports
Arizona Health Care Cost Containment System –
Report on Availability of Inpatient Psychiatric
Treatment – Pursuant to Laws 2017, Chapter 309, the
Arizona Health Care Cost Containment System
(AHCCCS) reported on the availability of inpatient
psychiatric treatment for enrollees in Arizona's
behavioral health system. AHCCCS' report included
the following findings:
1.

2.

3.

There were 1,847 licensed psychiatric beds in
Arizona hospitals as of 2016, a 16.2% increase
compared to 2015. An average of 79% of those
beds were occupied in 2016.
AHCCCS expended $298.5 million in Total Funds
for inpatient psychiatric stays in FY 2017,
including $87.2 million for members under 22
years of age and $211.3 million for members 22
years of age or older.
There were 1,636 AHCCCS enrollees that were
sent out of state for inpatient psychiatric care,

4.

including 454 members under the age of 22 and
1,182 members age 22 and older.
There were 905 AHCCCS members that
experienced "psychiatric boarding" in SFY 2017,
including 298 members under age 22 and 607
members age 22 or older. Psychiatric boarding
refers to the holding of psychiatric patients in an
emergency room for at least 24 hours before
transferring to a psychiatric treatment setting.
(Patrick Moran)

Arizona Health Care Cost Containment System –
Report on Arnold v. Sarn – Pursuant to an FY 2018
General Appropriation Act (Laws 2017, Chapter 305)
footnote, the Arizona Health Care Cost Containment
System (AHCCCS) reported on its implementation of
the Arnold v. Sarn joint agreement. The state has
been a longstanding defendant in the Arnold v. Sarn
litigation concerning the level of services provided to
the Seriously Mentally Ill (SMI) population in Maricopa
County. In January 2014, a joint agreement was filed

9

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary of Recent Agency Reports
with the court to terminate the lawsuit, and the
agreement received court approval in February 2014.
The agreement requires availability of certain
behavioral health services for individuals with a serious
mental illness in Maricopa County ("class members").
These services include assertive community treatment
teams, peer support services, supported employment,
supportive housing, and crisis services. AHCCCS
continues to comply with these service capacity
requirements. The agency is also working with a
consultant to ensure that services are delivered in
accordance with best practices prescribed by the
federal Substance Abuse and Mental Health Services
Administration (SAMHSA). AHCCCS estimates that the
annual cost of providing Arnold v. Sarn services is
approximately $62 million, including $29 million from the
General Fund.
The agreement also limits the census of class members
at the Arizona State Hospital (ASH) to 55 members.
AHCCCS reports that there are currently 55 members
receiving treatment at ASH. (Patrick Moran)
AHCCCS – Report on Reconciliation Payments –
Pursuant to the FY 2018 General Appropriation Act
(Laws 2017, Chapter 305), the Arizona Health Care
Cost Containment System (AHCCCS) submitted a
report on reconciliation payments and penalties made
or received during the first 6 months of FY 2018.
AHCCCS reports that during that 6-month period they
paid a net amount of $1.2 million from the General
Fund. The net outflow of General Fund money reflects
$5.6 million in payments to limit losses of the state's
Children's Rehabilitative Services contractor, partly
offset by $4.4 million in reconciliation payments and
penalties received from other sources. AHCCCS also
reports that it deposited a net $5.6 million into the
Hospital Assessment Fund and used a net $17.1 million
to offset Federal Medicaid Authority expenditures from
reconciliation payments and penalties/sanctions
during that time. DHS reports that $0.6 million from the

(Continued)

General Fund and $3.8 million from Federal Medicaid
Authority in payments was returned from
penalties/sanctions, net of any prior period
adjustments.
AHCCCS limits financial risks and profits for health
plans and Regional Behavioral Health Authorities
(RBHAs) for most Medicaid populations (the maximum
percentage of loss and profit varies by Medicaid
population). Reconciliation payments are made by
health plans/RBHAs to the state if profits exceed the
set level. A penalty, or sanction, may be assessed
against health plans/RBHAs for the failure to
demonstrate compliance with their contractual
responsibilities.
Pursuant to A.R.S. § 35-142.01, AHCCCS is required to
deposit monies received for reconciliation payments
and penalties received into the General Fund or the
fund from which the appropriation was originally
made. (Jon Stall)
AHCCCS – Report on Interstate Agreement with
Hawaii – Pursuant to A.R.S. § 36-2925H, the Arizona
Health Care Cost Containment System (AHCCCS)
submitted its annual report on the status of an
Interstate Agreement with the State of Hawaii.
This report summarizes the continued activities
associated with the agreement between AHCCCS
and Hawaii for Medicaid data processing. In FY 2017,
Arizona received $7.7 million in revenues from Hawaii
while spending $7.1 million for staffing and automation
costs associated with implementing the agreement.
During FY 2017, the balance of 2 funds used for the
agreement increased by $522,900, from $1.9 million to
$2.5 million. (Jon Stall)
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 December 2017. (See Table 6
below.)

Table 6
DCS Filled FTE Positions as of December 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

December
1,054
65
202
1,321
1,398
2,719

Difference
(136)
(11)
62
(85)
(113)
(198)

10

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary of Recent Agency Reports (Continued)
The number of direct line child safety staff (caseworkers,
caseworkers in training, caseworkers awaiting training
and hotline staff) was 1,321 in December, or (85) 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 (6) since November.
There were also 1,398 non-direct line child safety staff in
December, or (113) 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 8 compared to November. (Patrick Moran)
Department of Child Safety – Report on Report
Consolidation – Laws 2017, Chapter 282 requires the
Department of Child Safety (DCS) to report on
consolidation of its reports to the Legislature and other
stakeholders. DCS reported the following outcomes of
the report consolidation process:
1.
2.
3.

4.

5.

The department met with stakeholders throughout
calendar year 2017 to receive feedback on and
refine its proposal for report consolidation.
Beginning in January 2017, DCS began posting a
sample of its proposed new reporting format on a
monthly basis.
The department proposes to consolidate 2 existing
semi-annual reports and a quarterly benchmark
report into a single semi-annual report. Existing data
elements for each report would be continued unless
recommended for omission.
The department also recommends consolidating
reports on kinship, independent living, and housing
assistance into a single annual report on
permanency support services.
DCS did not concur with stakeholder
recommendations concerning enhanced reporting
of behavioral health data and outcomes of cases
referred to the Office of Child Welfare Investigations.
The department believes that some of the data
requested by stakeholders is published elsewhere or
would be challenging to collect. (Patrick Moran)

Department of Child Safety – Report on Court Authorized
Removals – Pursuant to Laws 2017, Chapter 282, the
Department of Child Safety (DCS) reported on
implementation of court authorized removals.
Under current law, a child may be taken into DCS
custody without a court order for up to 72 hours prior to
the filing of a petition for dependency with the Juvenile
Court under specific circumstances outlined in statute. In

the absence of these circumstances, DCS or
another interested party must file a dependency
petition (which is typically prepared by an Assistant
Attorney General) with the court and receive an
order from the court prior to removing a child from
the home.
Effective July 1, 2018, Chapter 282 continues to
allow temporary DCS custody without a court order
in the circumstances described above, but clarifies
that a court order is required if the child is not
imminently at risk of abuse or neglect in the time it
would take to obtain a court order. For cases that
are not eligible for temporary removal without a
court order, Chapter 282 allows the court to issue an
order for removal on the sworn testimony of a DCS
caseworker or investigator prior to the filing of a
dependency petition, called a "pre-petition"
removal. A dependency petition would still need to
be filed, however, within 72 hours of the initial
removal of the child.
DCS and the Courts met during the summer and fall
of 2017 and took the following steps to implement
these new procedures:
1.

2.

3.

4.

The Arizona Supreme Court adopted new rules
allowing DCS caseworkers and investigators to
request a court-ordered removal prior to the
filing of a dependency petition, effective July 1,
2018.
The Maricopa County Superior Court is
developing an online portal through which DCS
caseworkers and investigators from around the
state, not just Maricopa County, may submit
requests for pre-petition removals. Caseworkers
would receive the ruling of the judge
electronically. This online system will be
financed within the Court's existing budget.
DCS may require its vehicles to be equipped
with mobile printers to provide a printed copy of
a court order for removal to parents or
guardians upon removal of the child from the
home. The department estimates the cost of
equipping its 758 vehicles with a printer would
be $227,000, with ongoing annual costs for
supplies and maintenance of $75,000.
The courts hired 1.5 Court Commissioners and a
Judicial Clerk to assist with the new procedures
at an annualized cost of $315,800. (Patrick
Moran)

11

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary of Recent Agency Reports (Continued)
Arizona Criminal Justice Commission – Report on State
Aid to County Attorneys Fund and the State Aid to
Indigent Defense Fund – Pursuant to A.R.S. § 41-2409E,
the Arizona Criminal Justice Commission (ACJC)
reported on expenditures for the prior fiscal year from
the State Aid to County Attorneys Fund and State Aid to
Indigent Defense Fund.
In FY 2017, the State Aid to County Attorneys Fund
received revenues totaling $727,800. ACJC reports that
county attorneys, out of their $973,700 appropriation,
reported expenditures of $914,000 in FY 2017, leaving an
ending cash balance of $554,800 in the State Aid to
County Attorneys Fund. Of the $914,000, $876,300 was
spent on salary and benefits, $32,300 on equipment,
$2,700 for contractual services, $1,100 on operating costs
and supplies, and $1,600 on case management
software.
ACJC reports that counties used the monies in 3 main
areas: additional staffing, technological purchases, and
training on data systems.
ACJC also states that no prosecuting agencies reported
case processing times that met the Supreme Court
guidelines as no agency reported adjudicating 100% of
eligible felony cases within 180 days of filing. Of the 14
agencies who provided case processing statistics, 7
reported an increase in the number of felony cases filed
in FY 2017 and 12 reported an increase in the
percentage of felony cases adjudicated within 180 days
from FY 2016 to FY 2017.
ACJC did not distribute State Aid to Indigent Defense
Fund revenues to counties in FY 2017, as they were
appropriated for other non-Indigent Defense areas.
(Josh Hope)
Department of Education – Report on Broadband
Expansion Fund – Pursuant to A.R.S. § 15-249.07, the
Arizona Department of Education (ADE) must report
semi-annually on the status of broadband connectivity
construction projects that ADE has certified to receive
state matching contributions.
The FY 2018 General Appropriation Act included a onetime $3 million appropriation to the newly-established
Broadband Expansion Fund for state matching
contributions for broadband construction projects for
schools and libraries. Including another $8 million raised
by a temporary surcharge on consumer phone bills
approved by the Arizona Corporation Commission, the
$11 million of state funds are anticipated to generate up
to a 9:1 match from federal "E-Rate" funds for the
projects.

ADE reports that through June 2017, it certified $1.1
million in state matching funds for projects whose
total construction costs were $14.4 million. ADE states
that these projects are resulting in broadband
connectivity for 30,000 additional students across 84
sites. (ADE and the nonprofit organization Education
Superhighway have previously estimated that up to
250,000 students lack broadband internet statewide).
Consortia of schools and libraries in Apache and
Yavapai Counties accounted for over 60 of the sites
and $809,280 of the certified state funds. (Matt
Beienburg)
Department of Education – Budget Status Report –
Pursuant to a General Appropriation Act footnote
and A.R.S. § 35-131D, the Arizona Department of
Education (ADE) recently provided an update
regarding its budget status for FY 2018. In that report,
ADE estimates that it will experience a $10.4 million
net funding surplus for formula programs for FY 2018.
This consists of an estimated $20.2 million surplus for
Basic State Aid and estimated $(9.8) million shortfall
for Additional State Aid (the Homeowner’s Rebate
and 1% Cap programs). ADE’s current $10.4 million
shortfall estimate is subject to revision as additional
data become available.
The FY 2019 JLBC Baseline includes a $10.5 million
supplemental to address anticipated shortfalls in
Additional State Aid and Results-Based Funding for FY
2018. These shortfalls, however, could be offset by
surpluses for Basic State Aid depending on actual
enrollment growth for the year. (Steve Schimpp)
Department of Environmental Quality – Third-Party
Report on E-Licensing Project – Pursuant to an FY 2015
General Appropriation Act footnote, the Department
of Environmental Quality (DEQ) provided a quarterly
update on its E-Licensing project. The vendor gave
an overall favorable evaluation of DEQ’s progress in
incorporating recommendations from the previous
third-party report. Approximately 25% of DEQ's 28,000
annual transactions are now being managed online.
Customer adoption rates for myDEQ are also steadily
increasing. As of December 2017, the overall
average adoption rate is at 80%. The vendor
continued its recommendation to create a DEQ
Data Governance Board, which would make
decisions relating to data management, data quality
assurance, data analysis and business intelligence,
and data security. The vendor also emphasized that
DEQ should focus on finalizing the long planned
transition of myDEQ to ADOA's cloud infrastructure.
(Josh Hope)

12

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary of Recent Agency Reports (Continued)
JLBC Staff – Public Programs Eligibility Report – As
enacted in the 2006 election, Proposition 300 limits
participation in certain state programs to citizens,
legal residents, or other persons lawfully present in
the United States, and requires semi-annual reports
to the Joint Legislative Budget Committee. Below is
a summary of the reports:
Universities – At the 3 universities, 178,898 students
registered for the fall 2017 semester. Of the total
students registered, the universities were able to
verify the legal immigration status of 163,868
students. Additionally, the universities reported that
18,897 of these students did not require verification
because they have either not requested or received
in-state tuition or state-supported financial aid. The
universities reported that no students were
unverifiable due to their inability to provide the
requisite documentation.
Department of Economic Security – The department
reported that 7,481 applications were received for
child care assistance during the reporting period of
June 1, 2017 to November 30, 2017. Of this number,
7 were denied assistance because criteria for
citizenship or legal residency were not met.
Community Colleges – Statewide, the Community
Colleges reported a total of 216,617 students
classified as in-state for the fall 2017 semester. They
reported 304 students who were not entitled to be
classified as in-state because of a lack of lawful
immigration status. Additionally, 72,805 students
applied for financial aid. Of those who applied, the
community colleges reported that 39 were not
entitled to any aid because they were not lawfully
present in the United States.
Department of Education – The department
reported that 10,361 people applied for instruction in
Arizona Adult Education during the reporting period
of June 1, 2017 to November 30, 2017. Of this
amount, 492 were denied instruction because they
failed to provide evidence of citizenship or legal
residence in the United States. The Arizona Adult
Education program is funded with a combination of
state and Federal Funds. (Samuel Beres)
Ombudsman-Citizens' Aide Office – Annual Report –
Pursuant to A.R.S. § 41-1376, the OmbudsmanCitizens' Aide is to submit an annual written report by
January 1 summarizing their activities during the
previous fiscal year (FY). The FY 2017 annual report
cites examples of cases in the office’s 3 focus areas:
general complaints about state agencies,

Department of Child Safety (DCS) cases, and public
access cases. There were 5,017 total cases in FY 2017
including 3,230 involving coaching, 1,466 needing
assistance, and 321 requesting investigations.
Department of Child Safety cases now account for
47.0% of the total workload. (Steve Grunig)
Arizona Board of Regents/Arizona Community
Colleges – Report on Articulation – Pursuant to A.R.S.
§ 15-1824, the Arizona Board of Regents (ABOR) and
the community colleges are required to submit an
annual report by December 15 of their progress on
both articulation and meeting statewide
postsecondary education needs.
This year’s progress in implementing the transfer
model and support systems include:
During the 2016-2017 academic year, 10,853
community college students transferred to the
public university system. This is an increase of
7.2% from the 2011-2012 academic year.
•
52.8% of new transfer students had 60 or more
credit hours transferred to a university in 20162017 versus 51.5% in 2011-2012.
•
55.5% of transfer students completed an
associate’s degree prior to transfer in 2015-2016
versus 54.0% in 2011-2012.
•
Minority students accounted for 47% of new
community college transfers in 2016-2017.
(Matt Beienburg)
•

Arizona Board of Regents – Report on Resident
Student Cost Study – Pursuant to A.R.S. § 15-1650.03,
the Arizona Board of Regents (ABOR) is required to
conduct a comprehensive study to determine the
actual cost of educating a full-time resident
undergraduate student at each public Arizona
university by December 15, 2017 and every 5 years
thereafter.
ABOR reports an average annual academic cost per
student, including both operating and capital costs,
of $16,813, including:
•

$8,047 in instruction related costs.

•

$2,451 in academic support (Dean's offices,
libraries, academic advising, etc.).

•

$1,339 in student services (registrar, financial aid,
health services, student recreation, counseling,
etc.).

•

$1,276 in institutional support (office of the
president, HR, finance, IT, etc.).

•

$1,474 in cash payments to students for living
expenses beyond tuition (e.g. housing, meal

13

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Summary of Recent Agency Reports (Continued)
plans, books, etc.) as part of scholarship and
fellowship awards.
•

$1,020 in capital costs and $857 for operations
and maintenance of academic buildings.

•

$349 in academic public service (activities for
individuals outside the university including
conferences, advisory services, UA's Biosphere,
etc.).

The total includes the average costs for
undergraduate and graduate students, excluding
those in certain programs such as the UA Colleges of
Medicine, due to the uniquely higher costs of those
programs. The total also excludes costs associated
with research and auxiliary functions (e.g. athletics,
dining halls, etc.).
As part of the study, A.R.S. § 15-1650.03 requires ABOR
to report on the following:
1.

The use of instructional fees: ABOR reports that
approximately 25% of courses include a course
fee, which must be used for expenses directly
related to the class and cannot be used for
general expenditures. Combined with differential
tuition and program fees (charged for specific
colleges or programs such as Nursing), student
fees generated $291 million in FY 2016, or roughly
11% of gross tuition and fee revenues.

2.

Differentiated costs between programs of study:
Costs per student vary significantly across program
and university. For example, Agriculture and Life
Sciences students cost an average of $13,153 per
year to educate, compared to $33,775 per
student at ASU's School of Sustainability.

3.

The costs of faculty and administration
differentiated between time related to instruction
versus conducting research: The universities did
not provide data on the allocation of their faculty
members' time nor the shares of faculty salaries
that go to support instruction versus research.
ABOR reported that nationwide, however, faculty
and instructional staff spend approximately 58% of
their time on instruction related activities, and 42%
on research, administrative duties, personal
growth, and service. ABOR believes Arizona
faculty time allocation is likely consistent with this
pattern.

4.

A breakdown of the use of tuition dollars: ABOR
reports that "since tuition dollars are comingled
with general fund dollars, a comprehensive and
isolated review of tuition expenditures is not
available at this time," but adds that, "starting in FY

2019, university budget procedures will change to
allow universities to track tuition expenditures
separately."
5.

Average and marginal costs of different
programs, including online programs: ABOR
reports that "at this time the universities are
unable to provide separate cost data" for online
and marginal costs, stating that "any cost
allocations between online and on-campus
programs would be arbitrary." ABOR does,
however, cite a Western Interstate Commission
for Higher Education (WICHE) survey in which
"nearly every administrator surveyed scored each
factor [of online education] the same as or more
expensive than face-to-face education." (Matt
Beienburg)

14

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

December Spending
December 2017 General Fund spending was $596.3
million, which is a decrease of $(23.6) million below
December 2016. (See Tables 7 & 8).
•

Year-to-date, Department of Education (ADE)
spending has increased by $65.2 million
compared to the prior year.

•

School Facilities Board spending has increased by
$40.0 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 7
General Fund Spending ($ in Millions)
YTD Change

Change From
Dec 17

Dec 16

Year-to-Date

from FY 17

AHCCCS

145.0

(14.3)

969.0

98.5

Corrections

65.6

(14.5)

542.3

22.2

Child Safety

21.6

(1.7)

186.6

(1.5)

Agency

Economic Security

6.7

10.2

501.9

38.8

268.3

(4.5)

2,571.4

65.2

Health Serv ices

5.6

(0.3)

47.6

0.5

Public Safety

2.2

0.1

48.6

3.8

School Facilities Board

0.1

0.0

211.0

40.0

Univ ersities

58.8

3.8

354.5

15.1

Education

Leaseback Debt Serv ice

0.0

0.0

84.1

(0.0)

Other

22.4

(2.4)

304.6

1.3

Total

596.3

(23.6)

5,821.6

283.9

15

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Table 8

General Fund Spending
($ in Thousands)
Agency

December 17

Change from
December 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

1,800.4
8.9
639.2
145,045.6
1,565.5
68.6
21,562.5

(604.8)
(38.4)
0.7
76.1
(14,272.4)
(388.6)
2.4
(1,691.8)

22,383.2
84,115.1
456.3
68.6
4,910.3
969,002.8
12,570.6
516.7
186,590.2

29.5
(2.3)
27.1
10.6
137.9
98,502.4
793.0
(1.0)
(1,454.1)

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
1,569.2
25.7
65,563.2
353.3
28.2
6,706.0
53.5
268,295.0
452.0
12.8
23.2
56.5
142.9
594.7
880.5
5,609.8
174.8
54.9
0.2
345.0

(75.0)
1,327.7
(17.5)
(14,514.0)
(1,135.2)
28.2
10,228.3
16.6
(4,533.9)
(411.3)
3.8
(0.1)
(85.8)
(59.3)
131.0
162.9
(304.5)
46.0
(3.9)
(61.0)
(74.8)
45.5

10,900.2
27,903.2
1,273.8
542,304.9
15,650.7
11,037.9
246.3
501,928.6
579.1
2,571,427.0
5,500.4
2,823.6
95.6
331.9
508.9
979.1
5,134.1
1,779.5
5,904.2
47,626.6
1,233.8
421.4
248.9
0.8
2,679.7

2,000.9
742.4
22,157.6
1,650.2
(1,704.5)
(443.6)
38,769.5
97.1
65,248.5
833.8
(1.6)
(27.4)
103.4
(470.0)
2.4
1,785.9
874.5
527.5
(400.3)
16.1
(203.5)
(633.7)
204.0

2,234.8
1,068.0
(49.8)

(109.3)
69.9
136.4

47,984.8
7,063.7
9,714.4

844.8
131.9
(1,585.7)

16

JLBC – MONTHLY FISCAL HIGHLIGHTS – JANUARY 2018

Table 8 (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

December 17
609.4

Change from
December 16
4.1

1,599.4
1,178.1
170.2
393.4
676.7
75.9
8.8
2,178.5
55.0
153.5
1,619.0
102.6
531.4
0.7
0.8
498.4
26,688.3
9,051.1
22,526.9
450.1
1,050.0
4.4
596,299.5

Year-to-Date

YTD Change
from FY 17

5,940.9

478.2

239.7
65.6
11.5
(188.5)
3.0
(1.6)
3.8
132.3
(49.1)
8.5
220.6
23.1
(2,042.1)
(0.2)
0.7
1.9

10,800.3
6,667.9
1,243.2
3,294.9
4,389.7
605.3
66.5
22,499.0
823.4
48,591.8
6,000.0
622.8
1,317.5
15,008.9
210,966.6
7,943.4
136.5
4,978.4
28.2
14.2

1,014.3
402.0
88.7
(117.4)
129.6
20.5
0.2
2,050.0
127.1
3,778.0
(405.2)
(72.8)
(275.5)
39,972.2
(8,354.9)
2.0
71.4
27.5
(14.8)

(30.6)
2,012.1
614.7
1,215.4
80.4
272.3
4.4
(119.5)
(23,623.5)

5,536.7
160,129.5
54,306.4
134,519.3
2,760.5
7,918.5
(1.0)
487.3
62.5
5,821,556.0

(7,370.3)
12,072.3
3,737.7
6,650.0
(67.4)
2,672.9
(1.0)
109.3
(1,500.0)
62.5
283,850.5

JLBC
Jul-16

5.1% Y/Y Growth
(November 2017)

Jan 09

3

JLBC
100%

Jul 05
Jul 06

Jul 16
Jul 17

Jan 17

35,000

Jul 15

40,000

Jan 16

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

Jul 14

2,200

Jan 15

2,300

Jan 14

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

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

Jan 06

$25.57 / Hour
(November 2017)

Jul 04

$23

Jan 05

$24

Jul 03

$25

Jan 04

$27

Jul 02

Average Hourly Earnings – Private Sector

Jan 03

JLBC

Jan 02

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:

Jul 01

$26

Total Monthly Claims

January 2018
Appendix A

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

$19

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)
2,815,500
(December 2017)

2,100

1.5% Y/Y Growth
(December 2017)

2

Initial Claims for Unemployment Insurance

45,000

30,000

14,339 Claims
(December 2017)

25,000

20,000

15,000

10,000
5,000

150%

(7.8)% Y/Y Growth
(December 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

4.7% Y/Y Growth
(December 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

- 27,355 Permits

40,000

- 10,722 Permits
(November 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

$208.1 million
(December 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

$40.8 million
(December 2017)

$150
$25

$0

15.3% Y/Y Growth
(December 2017)

6