On Monday, Governor Doug Ducey released his proposed executive budget for fiscal year 2017. The proposed budget brings Arizona to a structural balance for the first time since 2007.
| MAJOR GENERAL FUND BUDGET ISSUES | FY 2016 |
| SFB: Building Renewal Grants | $ 15.0 million |
| DCS: Central Administration | $11.0 million |
| DCS: Deferral Elimination | $11.0 million |
| Universities: HITF Correction | $4.1 million |
| Secretary of State: Presidential Primary | $2.1 million |
| MAJOR GENERAL FUND BUDGET ISSUES | FY 2017 |
| K-12: Department of Education | $ 54.3 million |
| DPS: Border Security | $31.5 million |
| K-12: JTED Grant Program | $30.0 million |
| DOA: Capital | $25.7 million |
| Corrections: New Beds | $17.6 million |
| SFB: Building Renewal Grants | $15.0 million |
| Rainy Day Fund Deposit | $10.0 million |
| Parks: Capital Funding | $10.0 million |
| Corrections: Inmate Healthcare | $9.8 million |
| Universities: Resident Student Funding | $8.0 million |
| K-12: AP Incentives Testing | $6.0 million |
| DES: Adult Protective Services | $3.0 million |
| DHS: Additional Staff at ASH | $1.5 million |
| DES & AHCCCS: Adult Preventive Dental | $2.6 million |
| PROJECTED ENDING BALANCES | |
| FY 2017 | $ 620.8 million |
| FY 2018 | $856.6 million |
| FY 2019 | $1,102.0 million |
FY 2016 Budget Recommendation
The Executive Recommendation forecasts a current fiscal year structural deficit of $24.2 million and an ending cash balance of $484 million.
FY 2017 Budget Recommendation
The FY 2017 Executive Budget Recommendation projects a structural balance of $173 million and an ending cash balance of $621 million.
The FY 2017 Executive Budget Recommendation allows for General Fund spending to grow by less than 2% (compared to the previous year), which is less than the 3.2% forecast population growth plus inflation in 2017.
The Recommendation protects key State priorities, addresses immediate operating needs, deposits $10 million into the Budget Stabilization Fund (“rainy day” fund) and recognizes that a legitimately balanced budget must contain funding to maintain and modernize the State’s core infrastructure. Meeting that standard is evidenced by new and continuing investment in capital and information technology.
Governor’s highlights:
Eliminates the structural deficit and brings Arizona to a $173 million positive structural balance by the end of FY 2017.
Includes $106 million in additional money for K-12 education. That’s on top of the $224 million supplemental added with the $3.5 billion funding package approved last year in special session.
Includes a $134 million increase in funding for child safety, with $87 million over the next two fiscal years to fully fund children in state care.
Allocates an additional $31.5 million to expand the border strike force and crack down on illegal drug trafficking and cartels in Southern Arizona.
Directs $1.6 million to open a 100-bed community corrections center in Maricopa County, offering intensive drug treatment with housing and transitional services to reduce recidivism and reverse the growth of our prison population.