Bill
SB 1834
Funds major capital projects including a new northwestern veterans’ home with federal match, plus building renewal, DOT highways/aviation, and enhanced project oversight.
SB 1834 (Arizona, 57th Legislature, 2nd Regular Session, 2026)
Capital Outlay; 2026-2027; Appropriations; Review of Capital Outlay Projects
Summary purpose
- The bill amends Laws 2024, Chapter 211, Section 6 to adjust and add capital outlay appropriations for 2026-2027 and related review/oversight provisions for state capital projects, including veterans’ facilities, building renewal, transportation, and airport planning.
Key provisions and changes
1) Veterans’ home facility (Department of Veterans’ Services)
- Creates a new appropriation: $25,000,000 from the state general fund in fiscal year 2027-2028 (and 2028-2029 in the amended text) to construct and establish a veterans’ home facility in the northwestern part of Arizona.
- State share condition: the $25M is contingent on irrevocable commitments from the United States government to fund at least 65% of total project costs.
- Site approval and feasibility: department must present proposed northwestern site to the Arizona Veterans’ Service Advisory Commission for approval, with a feasibility analysis provided.
- Prior review: before spending the appropriation, the department must submit project scope, purpose, and estimated cost to the Joint Committee on Capital Review (JCCR) for review under A.R.S. 41-1252.
- Lapsing: the appropriation is exempt from lapsing provisions (will not lapse if not spent in a specific period).
2) Building renewal (Major maintenance/repair of state buildings)
- Section 2 sets 2026-2027 capital outlay appropriations for major maintenance and repair, to be used by agencies per Title 41, Chapter 4, Article 7.
- Department of Administration: $16,800,000 from the Capital Outlay Stabilization Fund for building renewal; allows retrofitting projects for space consolidation.
- Department of Corrections: $5,864,300 (no personnel or overhead costs allowed for funded projects).
- Arizona Game and Fish Department: $1,932,900 (from Game and Fish Fund).
- Arizona State Lottery Commission: $237,800 (from State Lottery Fund).
- Department of Transportation: $23,385,300 (split sources: $22,990,400 State Highway Fund; $394,900 State Aviation Fund).
3) Statewide transportation (Department of Transportation)
- Appropriation: $432,663,000 for state highways, rights-of-way, field administration/engineering, and debt service on highway bonds.
- Reporting requirements: by Nov. 1, 2026, DOT must report:
- Actual prior year, estimated current year, and upcoming budget year highway construction expenses (format to mirror prior years unless modified with JLBC GOBP approval).
- Capital outlay information for fiscal years 2025-2026, 2026-2027, 2027-2028 (same format as FY 2025-2026 appropriations report).
- Estimated outstanding debt principal balance end of FY 2027-2028 and debt service payments for 2027-2028 through 2030-2031, across all related bond funds and notes.
- Review exemption: the appropriation in this section is not subject to JCCR review (41-1252).
4) U.S. Route 191 pavement rehabilitation transfer
- By June 30, 2026, transfer a past reduction (totaling $2.5M over several years) from the State Highway Project to the State General Fund for state agency support and maintenance.
5) Rural transportation fund match (State match advantage)
- FY 2028-2029: $26,300,000 appropriated from the state general fund to the State Match Advantage for Rural Transportation Fund (per §28-339).
6) Airport Planning and Development (Department of Transportation)
- FY 2026-2027: $29,048,900 from the State Aviation Fund to plan, construct, develop, and improve airports determined by the State Transportation Board.
- Balances/collections: any excess in the State Aviation Fund beyond appropriations are re-appropriated to DOT for aviation purposes in FY 2026-2027.
- Reporting: by Dec 31, 2026, DOT must report status of all aviation grant awards and distributions, by airport and year.
- Review exemption: this section is not subject to JCCR review.
7) Use of appropriations (administrative controls)
- DOT may spend up to 5% of the act’s departmental appropriations (excluding funds for nonstate entities) for project management of building renewal and capital projects.
- Other monies cannot be spent on personal services or maintenance contracts without JCCR review, except inmate-construction-program-related activities for corrections.
Procedural/timeline highlights
- Notable review requirements include: JCCR review for veterans’ facility scope/costs and feasibility; DOT reporting deadlines by November 1, 2026; airport grant reporting by December 31, 2026.
- Some transportation appropriations are exempt from JCCR review (41-1252).
- Lapsing provisions for the veterans’ facility appropriation are waived, contingent on federal funding commitments.
- Multiple sections provide cross-references to existing statutory frameworks (e.g., capital outlay stabilization fund, 41-1252, and 41-792.01) for administration and funding mechanisms.
Affected entities
- Department of Veterans’ Services; Department of Administration; State Department of Corrections; Arizona Game and Fish Department; Arizona State Lottery Commission; Department of Transportation; Arizona Department of Aviation (via DOT).
- State government agencies undertaking building renewal and capital projects; budget committees (JLBC) and the Governor’s Office of Strategic Planning and Budgeting (OSPB) through reporting requirements; the Arizona Veterans’ Service Advisory Commission.
Impact overview
- Expands capital outlay funding for a new northwestern veterans’ home facility, with stringent federal funding match requirements and oversight.
- Increases and specifies funding for major maintenance across several agencies, enabling planned building renewal and retrofitting, including space-consolidation efforts.
- Enhances DOT capital outlay for highways, aviation, and airport projects, with detailed reporting on debt and spending.
- Introduces new or clarified oversight and reporting obligations to improve transparency and review of capital projects.
Compiled from official sources — confirm details with the bill’s official record.
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