Bill
SB 1831
SB 1831 sets the comprehensive 2026-2027 Arizona state budget across agencies, with detailed fund sources and extensive reporting, oversight, and program-specific conditions.
SB 1831 — 57th Legislature, 2nd Regular Session (Arizona)
Subject: General Appropriations Act for 2026-2027
Overview
- This bill is a comprehensive general appropriations act setting the state budget for fiscal year 2026-2027 across many state departments and programs. It specifies funding levels, funding sources, and various special conditions, reporting requirements, and programmatic directives.
Key Provisions and Changes
- Statewide appropriations framework (Sec. 1): Establishes that appropriations come from enumerated funding sources and that if a source is unavailable, no alternative funding source may be used.
- Individual agency allocations (Secs. 2-29, 31-39, etc.): Detailed line-item budgets by agency, including:
- Arizona State Board of Accountancy: 14.0 FTE; $2,257,400 from the Board of accountancy fund.
- Acupuncture Board of Examiners: 1.0 FTE; $217,000 from its fund.
- Department of Administration: broad operating and programmatic allocations totaling $297,824,500 across multiple funds; includes automation operations fund, risk management, IT, state surplus property, etc. Includes specific reporting and project oversight requirements for automation funds.
- Department of Administration (Division of School Facilities): $230,177,500 (general fund), with restrictions on new school facilities funding, reporting, and potential end-of-useful-life adjustments for 2027-2028.
- Department of Administration (Automation Projects): $19,756,800 for the Department of Revenue integrated tax system modernization; requires project specifications (data capture, confidentiality, modeling capabilities), quarterly reporting to JLB, and lapsing exemptions through 2028 for certain automation funds.
- Office of Administrative Hearings; Arizona Department of Agriculture; AHCCCS (Arizona Health Care Cost Containment System); and many other departments receive substantial appropriations with fund source breakdowns and specific programmatic directives.
- Health care and social services (Secs. 9, 21-27): AHCCCS and the Department of Economic Security receive large program budgets covering:
- AHCCCS: Total operating budget of $22.8 billion across numerous sub-items (administration, eligibility, Medicaid services, ALTCS, behavioral health, hospitals, etc.), with fund sources including state general fund, various dedicated funds, and federal funds. Provisions include:
- Capitation rate planning, actuarial estimates, and expenditure plans required before policy or rate changes.
- Transfers to fund enforcement efforts (e-cigarette enforcement, tobacco settlement litigation) and enforcement-related reporting.
- Reporting requirements related to Arnold v. Sarn settlement (behavioral health capacity expansion).
- Long-term care, DDD (developmental disabilities) program provisions, and graduate medical education (GME) funding with prioritization by county populations and shortages.
- Department of Economic Security (DES): Total operating budget of $9.89 billion across multiple programs (SNAP, TANF, childcare, Medicaid-related services, developmental disabilities, employment services, etc.). Includes:
- Monthly and quarterly reporting on expenditures, revenues, and caseloads.
- Specific stipends and allowances (e.g., kinship care stipend) and transfer rules between blocks (e.g., TANF to social services).
- Requirements for actuarial estimates, policy change reviews, and cost analyses before rate or policy changes.
- Reporting on the high-need client supplement, domestic violence funding, and other targeted programs.
- Education and higher education (Secs. 28-39): Funds for the State Board of Education, Superintendent of Public Instruction, and Arizona’s public colleges.
- Onetime and ongoing supplements for districts and charters; basic state aid and expenditure authority.
- Department of Education also manages non-formula programs, accountability testing, English learners, gifted programs, and other K-12 initiatives with specified funding sources (state general fund, expenditure authority, foundation funds, etc.).
- Equalization aid for community colleges, operating state aid, STEM/workforce programs, rural aid, and specific targeted grants (Diné college remedial education, Diné college reporting requirements).
- Public safety and corrections (Secs. 11, 21, 22): Arizona Department of Corrections and related entities receive substantial funding and programmatic instructions, including:
- Private prison per diem and stipends; inmate health care contracts; injunction-related IT upgrades; staffing and overtime controls; reporting on staffing metrics; and mandatory reporting to budget committees.
- Support for organized retail crime task force; law enforcement investigations; and various interagency services.
- Professional and regulatory boards (Secs. 12-17, 25-26): Funding for Barbering and Cosmetology Board, Behavioral Health Examiners, Chiropractic Examiners, Dental Examiners, and Economic Opportunity, among others. Each includes FTEs and lump-sum appropriations funded by respective boards or general funds.
- Arizona Commerce Authority and other agencies (Secs. 17, 20): Commerce Authority funded at $12.55 million (state general fund), with tax withholding-related allocations to its special fund; requires reporting on trade office operations.
- Other notable items:
- Stipends for kinship care; targeted county investments to support specific retirement contributions for corrections officers; and special distributions to counties for corrections officer retirement costs.
- Various reporting timelines for 2026-2027 activities (e.g., by September 1, 2026; March 31, 2027; November 1, 2027; etc.), including joint legislative budget committee (JLBC) oversight and gubernatorial planning office involvement.
- Several sections include requirements to revert or deposit funds to the State General Fund or to report on surplus/deficit scenarios, ensuring transparency of one-time funds and restricted programs.
Procedural and Timeline Aspects
- Annual appropriation act designates fiscal year 2026-2027 funding, with detailed start-of-year and reporting obligations.
- Numerous sections require:
- Quarterly or periodic reporting to JLBC and the governor’s Office of Strategic Planning and Budgeting.
- Specific expenditure plans before reallocations or significant program changes.
- Audits, dashboards, and performance reporting for program effectiveness, staffing, and caseload metrics for agencies like DCS (Department of Child Safety) and corrections.
- Sunset-like lapsing exemptions and exceptions for certain funds through 2026-2028.
- Conditional distributions to counties and counties’ use of funds for specific purposes.
Bottom Line
- SB 1831 establishes the comprehensive state budget for 2026-2027, allocating funds across the executive, judicial, and legislative branches, regulatory boards, public health, education, social services, and public safety. It embeds extensive reporting, oversight, and performance requirements, sets specific fund-source allocations, and prescribes targeted uses and conditions for many one-time or restricted funds. It also emphasizes actuarial analyses, capacity-building (notably in behavioral health and health care), and accountability measures for program changes and capital projects.
Compiled from official sources — confirm details with the bill’s official record.
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