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Sources include Arizona Legislature bill records, LegiScan session dumps, and published veto letters. Bill numbers cited throughout.

← The Veto Ledger

Vetoed May 5, 2026 · 57th Legislature, 2nd Regular Session

HB4138

2026-2027; general appropriations act.

BLAME HOBBS!

Taxes & economy

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 require that ADOA distribute $377,100 for county support for corrections officer employer contributions in FY 2027 and specifies the amounts to be distributed to each county. ADOA School Facilities Division (SFD) Building Renewal Grant Funding GF Onetime $183,300,000 New School Construction Projects GF Onetime prior year project savings $(20,200,000), allow SFD to use the unencumbered balance of $20,622,600 in the New School Facilities Fund for facilities and land costs for districts that received final approval on or before December 15,, and arizona Health Care Cost Containment System (AHCCCS) Formula GF Ongoing $(42,000,000) Department of Child Safety (DCS) Congregate Care GF Onetime $36,900,000 Extended Foster Care Comprehensive Service Model GF Onetime $8,200,000 Arizona Commerce Authority (ACA) Eliminate Annual Competes Fund General Fund Deposit GF Ongoing $(500,000) Department of Corrections (DOC) 4% Correctional Officer Stipend GF Onetime $21,400,000.

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 require that ADOA distribute $377,100 for county support for corrections officer employer contributions in FY 2027 and specifies the amounts to be distributed to each county. ADOA School Facilities Division (SFD) Building Renewal Grant Funding GF Onetime $183,300,000 New School Construction Projects GF Onetime prior year project savings $(20,200,000), and would also allow SFD to use the unencumbered balance of $20,622,600 in the New School Facilities Fund for facilities and land costs for districts that received final approval on or before December 15,, rather than leave the current rule unchanged.

Legislature recordOfficial bill summaryVeto letter

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