• The budget aims to solve a $678 million FY16 shortfall that does not include the ongoing K-12 litigation
• The plan assumes $74 million in new revenue and $216 million in fund transfers
• Total revenue is $9.11 billion, compared to Ducey’s proposed $9.24 billion
• Total spending is $9.109 billion, compared to Ducey’s proposed $9.104 billion
• Net spending is decreased by $338 million from the JLBC baseline level: There are $168 million in increases over the baseline and $506 million in cuts to the baseline
• While Ducey’s budget had a cash balance of $137 million, a lower projected revenue increase over FY15 leaves the current proposal with a $2.1 million ending balance
• The budget assumes revenue growth that is less than half of what Ducey projected: $52 million (for each of the next three years) compared with $105 million in FY16, $188.6 million in FY17 and $195.6 million in FY18.
• Ducey’s expected revenue increase from additional TPT collectors in DOR is scrapped. The expected revenue increase of $32.6 million is replaced by an increase in “fraud detection” savings from $9.3 million to $41.9 million in FY16.
• The deal also anticipates $15 million in revenues from a tax amnesty.
• The plan puts off private prison bed funding until FY17, at which time it funds 1,000 beds and calls for an RFP for an additional 2,000 beds.
• The budget eliminates Ducey’s proposed $9 million increase to Dept of Child Safety.
• The tax that funds the Job Training Fund will be eliminated beginning in CY16.
• A measure would be sent to the 2016 ballot asking voters to allow the Land Dept to self-fund. The courts previously ruled that the Constitution prevents the agency from self-funding.