HB2962

THE CONTEXT: The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt.

WHAT THE BILL DID: The final vetoed version would allow DES, beginning April 1, 2026, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants, require DES, before using BSF monies, to notify the Directors of the Joint Legislative Budget Committee (JLBC) and Governor's Office of Strategic Planning and Budgeting, and require the BSF appropriation to be fully reimbursed by September 1, 2026 and to be reimbursed in full as part of the closing process for FY.

WHY IT MATTERED: The practical reason for this bill was to put public resources toward the named state purpose through an accountable appropriation. It would allow DES, beginning April 1, 2026, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants, and would also require DES, before using BSF monies, to notify the Directors of the Joint Legislative Budget Committee (JLBC) and Governor's Office of Strategic Planning and Budgeting, rather than leave the current rule unchanged.