Keywords: JLBC - 10 December, 2025; 9:00 AM, 925, all

Keywords: JLBC - 5 November, 2025; 9:00 AM, 925, all

Keywords: JLBC - 24 September, 2025; 9:00 AM, 925, all

Transcript Highlights:

• So, Madam Chair, members, for the record, Chandler Koiner, JLBC staff.
• The JLBC baseline is an example of something that is not included.
• I heard JLBC; they have some estimates from the CBO, but that's just going to be the upfront cost.
• I heard JLBC they have some estimates from the CBO, but that's just going to be the upfront cost.
• It just says you've got to do these three stakeholder meetings and you have to come to the JLBC.

Bills: HB2190, HB2202, HB2233, HB2251, HB2252, HB2396, HB2437, HB2689, HB2796

Keywords: physician assistants, licensure compact, medical services, multistate practice, patient care access, healthcare workforce, military families, adverse actions, dementia care, telementoring, healthcare education, rural communities, grant funding, HB 2233, rural health transformation, rural health transformation program, AHCCCS, Arizona Health Care Cost Containment System, Joint Legislative Budget Committee, JLBC

Summary: The committee began with a presentation from the Alzheimer’s Association Desert Southwest Chapter and Dr. Anna Burke of Barrow Neurological Institute on the scope of Alzheimer’s disease, the shortage of specialists, low rates of timely diagnosis, and the need for caregiver support and early intervention. Speakers emphasized that Arizona is a leader in Alzheimer’s research and that lifestyle changes, new therapies, and research funding offer hope, but only if patients are diagnosed earlier and providers are better trained. The committee then heard House Bill 2202, which would appropriate $300,000 over three years for a dementia care telemonitoring/telementoring grant program through the Department of Health Services to help providers statewide learn best practices in dementia care. Supporters, including the Alzheimer’s Association, Dr. Danny Cabral, and a patient advocate, said the bill would address major gaps in provider training and improve early diagnosis and treatment. There was no opposition, and the committee voted 11-0 to give HB 2202 a do pass recommendation. The committee next took up House Bill 2251, the “Jordan and MacTerry Act,” which would expand licensed midwives’ authority to administer certain medications, require liability insurance disclosure and reporting, and create an Arizona Midwifery Advisory Committee. Supporters said the bill would improve safety, oversight, and access to emergency medications in home births, while opponents from ACOG and the Arizona Osteopathic Medical Association raised concerns about the adequacy of oversight, the medication list, and whether eight hours of pharmacology training is sufficient. After testimony from midwives, physicians, and stakeholders, the bill was held for further stakeholder work and anticipated floor amendments. House Bill 2252, which would allow certified nurse midwives, certified professional midwives, or licensed midwives to accompany a patient in a ground ambulance during transport if approved by medical direction, also drew support and opposition. Supporters argued it would preserve continuity of care in emergencies, while firefighters and EMS representatives objected to ambiguity and scene control concerns. That bill was likewise held for further stakeholder meetings. The committee then recessed and reconvened for later presentations on federal budget and health-related topics.

Transcript Highlights:

• Representative Travers has this information, according to the JLBC report, in terms of JLBC baseline
• JLBC underestimated the revenues by 10.6%.
• The JLBC baseline consists of three pieces.
• Chairman, for the record, Patrick Mayer, the JLBC staff.
• JLBC believes there will be a need for a supplemental.

Bills: HB2053, HB2116, HB2148

Keywords: stormwater, recharge mapping, water resources, groundwater, appropriation, Arizona, HB2116, Colorado River, litigation fund, water rights, Arizona water law, general fund appropriation, state budget, interstate water compact, Colorado River Compact, water litigation, A.R.S. 45-119, natural resources, water policy, river management

Summary: The committee first considered House Bill 2116, which would appropriate $1 million in fiscal year 2027 from the State General Fund to the Colorado River Litigation Fund. The sponsor said it was a repeat of last year’s request and was intended as a backup if the seven Colorado River basin states cannot reach a new agreement. Arizona Department of Water Resources staff testified in support, explaining the state’s role in ongoing Colorado River negotiations and distinguishing the litigation fund from the executive’s separate Colorado River Protection Fund. The bill received a due pass recommendation on a 17-1 vote. The committee then took up House Bill 2053, which appropriates $100,000 to ADWR for updated stormwater recharge mapping and expands the mapping effort beyond state trust lands to private lands. The committee adopted Chairman Livingston’s amendment, which extended the coordination timeline to one year, broadened the agencies involved, and revised language on site eligibility and the definition of stormwater. The sponsor said the bill would help identify more places to capture stormwater for recharge, while ADWR testified neutral, supporting the mapping work but raising a concern about language tied to appropriable surface water because that is a legal determination for the courts. The amended bill passed 11-7. House Bill 2148 was then heard, proposing to give the legislature authority to appropriate non-custodial federal monies, with requirements for specifying purposes and allowing agencies to spend such funds if the legislature does not act. An amendment excluded university and Board of Regents research grants from the bill’s scope, which the chair said was intended to avoid implementation problems. The sponsor framed the bill as a transparency measure, and members discussed the large amount of federal pass-through funding Arizona receives. The amended bill passed 11-7. After the bills, the committee received a lengthy JLBC presentation comparing the executive budget with the JLBC baseline. Discussion focused on revenue forecasts, the impact of federal tax conformity, state employee health insurance costs, SNAP administrative and error-rate costs under H.R. 1, developmental disabilities and AHCCCS growth, and K-12/ESA funding trends. Members repeatedly criticized the executive budget for funding some ongoing costs on a one-year basis and expressed concern about rising caseloads and supplemental needs. No formal action was taken on the presentation.

Transcript Highlights:

• These same items, JLBC declined to review at its January 29th meeting.
• , to schedule a JLBC meeting and review the 2.85 million of election items as soon as possible.
• So just ask us to have a JLBC meeting to talk about this issue.
• And yet now what we are seeing is that the failure of JLBC to put this agenda item up...
• the Republican chairs of the JLBC are intentionally sabotaging the elections for 2026.

Keywords: 1182, all

Summary: The Senate convened with prayer, the Pledge of Allegiance, a recorded roll call showing 30 members present, and approval of the previous journal. The President announced receipt of HB 2022 from the governor and made temporary committee substitutions for the Rules Committee. The chamber also received a large calendar of first- and second-reading bills and resolutions covering elections, education, water, public safety, marijuana, housing, taxation, and other topics. A major presentation recognized licensed naturopathic physicians in the gallery, who were invited to support SB 1178, a bill expanding their authority to administer certain intravenous legend drugs, including antibiotics, antivirals, and antifungals. The Senate then recessed to honor public safety personnel with a proclamation commending Deputies Gregory Sanders and Jacob Montoya, along with several Cochise and Pinal County and Border Patrol personnel, for rescuing an eight-year-old boy from a human trafficking situation. The members applauded the honorees and took photos with them. After returning to order, several senators used points of personal privilege to urge the Joint Legislative Budget Committee to review $2.85 million in election-related funding requested by the Secretary of State for IT and election infrastructure needs, arguing the money was already available and necessary for secure 2026 elections. Another senator spoke about the need for long-term water planning and reduced groundwater reliance. Additional announcements covered caucus and committee meeting times, Arizona Aerospace Day, and a mental health advocacy group visiting the chamber. No substantive floor votes on legislation were taken in the portion provided, and the meeting ended with a motion to adjourn until Tuesday, February 10, 2026.

Transcript Highlights:

• Chair and members, for the record, Gordon Robertson with JLBC staff.
• By way of background, the JLBC is annually required to adjust the By way of background, the JLBC is annually
• Gress, I can look into that in the JLBC. I mean, that concerns me.
• For the record, Brian Belkoski, JLBC staff.
• And so I just had a kind of a technical question for JLBC.

Keywords: 1182, all

Summary: The committee first went into executive session and then returned to approve settlements in three risk management cases based on a motion to accept the Attorney General’s proposed settlement. After that, JLBC staff presented item 1 on the School Facilities Division construction cost index, recommending a 4.8% increase for fiscal year 2027 with retroactive application to December 10, 2025; members asked about why prior years had zero adjustments during the Great Recession, and the committee approved the item. Items 2A and 2B concerned Arizona Department of Education reports. For 2A, staff reviewed ADE’s annual federal monies report, noting fiscal 2026 federal funds of $1.38 billion, up from $1.27 billion the prior year, and the committee gave favorable review. For 2B, staff summarized the annual Career and Technical Education District report, including enrollment, expenditures, retention, and credential completion rates; members questioned the low 37% retention rate and asked for more comparative and explanatory data, but the committee still gave favorable review. Item 3A addressed a DES transfer of $3.3 million from the Home and Community-Based Services Medicaid line item to the state-only case management line item for developmental disability services. DES said both areas faced shortfalls and that the transfer would help immediate cash-flow needs, but members raised concerns about growth in the state-only program, possible migration into Arizona for services, fraud controls, and whether the department had formally notified the Legislature of the deficiency. The committee attached conditions requiring formal deficiency letters, monthly reporting on DDD populations by diagnosis, and a review of Minnesota audit findings, then approved the item. Item 3B, the Arizona Training Program at Coolidge annual review, was also approved. Finally, item 4 proposed transferring $650,000 from unused special election funds to the Secretary of State’s cybersecurity monitoring and management budget. The Secretary of State’s office said the money would support 24/7 monitoring, endpoint protection, and remediation of identified vulnerabilities, and members debated the office’s federal outreach and the March 1 deadline tied to county reimbursement for AVID-related costs. Despite concerns from some members about communication and the size of the remaining appropriation, the committee gave favorable review to the $650,000 transfer and then adjourned.

Transcript Highlights:

• Chairman, we were excited to see the JLBC baseline on Friday of last week.
• Consistent with JLBC, we did not do that dynamic forecasting.
• So how far away is the executive and the legislature, the JLBC? Mr.
• That's the JLBC baseline. And secondly, Mr.
• That's the JLBC baseline. And secondly, Mr.

Keywords: 1182, all

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.

Transcript Highlights:

• The January budget update from JLBC includes revised revenue and expenditure projections.
• JLBC is on the top line.
• The JLBC numbers, is that including conformity? No. None of this.
• Chairman, Senator Fernandez, for the record, Jeff Paulson with JLBC staff.
• JLBC staff does not.

Bills: SB1024, SB1032, SB1059, SB1062, SB1064, SB1097, SCM1001, SCR1004

Keywords: roadable aircraft, registration, vehicle title, license plates, aviation safety, corrections oversight, funding, state budget, criminal justice, reform, appropriation, Department of Transportation, right turn lane, traffic improvement, infrastructure funding, transportation funding, authorization, road improvements, intersection safety, transportation

Summary: The committee began with a JLBC presentation comparing the baseline budget to the governor’s proposal. JLBC said the baseline shows a positive cash balance in each year, with about $577–$578 million available above statutory formulas, but that major items such as tax conformity, state employee health subsidies, school repairs, SNAP administrative changes, and possible SNAP error-rate costs are not fully funded. JLBC also reviewed executive revenue and spending proposals, including border-security funding, sports betting tax changes, data-center tax changes, short-term rental and water surcharges, and several one-time items that JLBC said appear to be ongoing in practice. Members questioned SNAP error rates, Medicaid/Access enrollment and costs, possible fraud involving Access-to-Marketplace shifting, prison receivership risk, and the need for more oversight of waste and fraud. The committee then heard and passed SB 1032, which appropriates $1.5 million to fund the Independent Correctional Oversight Office created last year. The sponsor and several advocates said the office is needed to provide independent oversight, improve transparency, help whistleblowers, and reduce the risk of federal receivership over the prison system. Testimony from advocacy groups and former incarcerated individuals strongly supported the bill, and the committee approved it 10-0. Next, the committee considered several transportation appropriations. SB 1064 would provide $3 million to Flagstaff for improvements along U.S. Route 66; the mayor and local planning officials described safety problems, congestion, and housing growth along the corridor, while some members objected to using general fund dollars for roads instead of HURF and to bypassing the normal transportation board process. The bill passed 7-3. SB 1059 would appropriate $9.2 million for a right-turn lane at SR 87 and SR 260 in Payson, and SB 1062 would appropriate $1 million for a left-turn lane at US 60 and Superstition Mountain Drive in Gold Canyon; both were supported by local witnesses citing congestion and safety concerns and both received do-pass recommendations, 7-3 and 6-4 respectively. The committee also began hearing SCR 1004, a voter-referral measure to prohibit photo enforcement systems, with the sponsor and public commenters arguing that photo radar is unconstitutional, abusive, and tied to ticket revenue, but the transcript cuts off before any committee action on that measure.

Transcript Highlights:

• These same items JLBC declined to review at its January 29th meeting.
• to schedule a JLBC meeting as soon as possible and review the $2.85 million for election items.
• to review 2.8 of State Adrian Fontes, urging JLBC to review $2.85 million for election items.
• These same items JLBC declined to review at its January 29th meeting.
• to schedule a JLBC meeting as soon as possible and review the $2.85 million for election items.

Keywords: 1182, all

Summary: The House opened with prayer, the Pledge of Allegiance, approval of the prior journal, and recognition of Dr. Jimmy Sade as Doctor of the Day. Members also read a proclamation commending law enforcement and Border Patrol personnel involved in rescuing an eight-year-old boy from a human trafficking situation, with several members praising the interagency cooperation and the officers’ actions. The chamber then handled routine desk business, committee substitutions, first and second readings of numerous bills, and reported attendance at 56 present, three absent, and one excused. The Committee of the Whole considered HB 2096, HB 2173, HB 2451, and HCR 2001. HB 2096, HB 2173, and HB 2451 each received do-pass recommendations, while HB 2121 was retained on the calendar. HCR 2001, a proposed constitutional amendment on election requirements, drew extended debate over voter ID, mail ballots, ballot deadlines, and election security. A subfloor amendment was adopted by a 32-26 vote, and the amended resolution then received a do-pass recommendation. The Committee of the Whole report was adopted, and the measures were assigned accordingly. On third reading, the House passed HB 2010 on digital consumer licensing disclosures by 59-0, HB 2132 on drug offenses by 59-0, HB 2155 on the Arizona Beef Council by 57-2, HB 2178 on state agency licensure requirements by 51-9, HB 2310 on employment relationships by 59-0, and HB 2395 on a Department of Education fitness-related measure by 59-0. HCR 2001 also passed on third reading by 32-27 and was sent to the Senate. Several members explained their votes, with supporters emphasizing election integrity and consumer or public-safety benefits, and opponents criticizing the election measure as restrictive and unnecessary. The House then heard multiple personal privilege remarks and announcements, including a proclamation for Cary Elwes Day, birthday and community notices, and a request for JLBC to review election-related funding. Committee meeting announcements followed, additional bill referrals and withdrawals were announced, and the House adjourned until 1:15 p.m. Tuesday, February 10, 2026.

Transcript Highlights:

• So I don't see the point of getting approval from JLBC. It's not going to be transparent or fair.
• I also don't like the idea of JLBC getting veto power.
• So if the veto power were taken out, where JLBC hears but doesn't have the ability to say absolutely
• I'm actually generally okay with this, except JLBC is probably one of the least democratic committees
• This bill adds unnecessary bureaucracy by requiring multiple public meetings and JLBC approval before

Keywords: 1182, all

Summary: The Senate opened with prayer, the Pledge of Allegiance, a roll call showing 27 present, and approval of the prior journal. Members then introduced guests, including representatives of the Arizona Fair Association, Mohave County Parks and Fair officials, a constituent guest, a candidate shadowing a senator, Father David Myers, and the Doctor of the Day. The chamber then moved into Committee of the Whole and considered three bills. SB 1268/HB 2792, a veterans property tax exemption cleanup measure, was explained as clarifying that the exemption applies to a primary residence and jointly owned property for spouses; it received a due pass recommendation and later passed 29-1 with an emergency clause. SB 1051, requiring hospitals to collect and report patient immigration-status information tied to public spending, drew extensive debate over privacy, public health, cost, and immigration enforcement; supporters framed it as accountability for taxpayer spending, while opponents called it discriminatory and harmful to care-seeking, and it passed 17-13. SB 1316, creating a process for Arizona rural health transformation funds and requiring public hearings and JLBC involvement, was defended as a transparency measure for a $167 million federal rural health award; opponents argued it added bureaucracy and could delay rural care, but it passed 17-13. After the Committee of the Whole report was adopted, the Senate took up third readings. HB 2792 passed 29-1 with an emergency clause, SB 1123 passed 29-1, SB 1125 passed 30-0, SB 1145 passed 29-1, SB 1316 passed 17-13, and SB 1051 passed 17-13. Several members explained votes, with repeated arguments over immigration, public health, transparency, and the role of JLBC. The Senate then announced committee meetings for the next day and adjourned until February 11, 2026, at 1:15 p.m.

Transcript Highlights:

• Chair, I understand it from the JLBC analysis that I read, on JLBC's list they have a number three that
• Chair, I understand it from the JLBC analysis that I read, on JLBC's list they have a number three that
• Chair, I understand it from the JLBC analysis that I read, on JLBC's list they have a number three that
• And I would also just remind lawmakers that while your JLBC analysis... ...does take these and makes
• A couple of things: I think the SALT deduction is $40 million, according to JLBC.

Bills: SB1638

Keywords: taxation, income tax, internal revenue code, deductions, tax benefits, retroactive, standard deduction, 1182, all

Summary: The Senate Finance Committee took up SB 1638, a tax conformity bill that would update Arizona’s tax code to the Internal Revenue Code as of January 1, 2026 and incorporate federal changes from 2025. The bill also included individual income tax subtractions for tips, overtime, seniors, and auto loan interest, along with changes to the standard deduction and charitable contribution deduction. Committee discussion focused heavily on whether Arizona should conform broadly to federal changes or limit the bill to more targeted, temporary provisions. Two amendments were considered. The chair’s amendment was described as clarifying only, addressing retroactivity and foreign dividend language, and it was adopted. Senator Epstein’s amendment would have removed the broader conformity provisions and the modified charitable deduction, limited the standard deduction change to tax year 2025, and kept the individual subtractions; she argued the business-related conformity items mainly benefited corporations and should be negotiated in the budget. Opponents said the amendment would create unnecessary recalculations and uncertainty for taxpayers and businesses, while supporters of the underlying bill said conformity was needed quickly to match Department of Revenue forms and avoid filing-season confusion. Epstein’s amendment failed. Public testimony split along similar lines. Business and tax group representatives supported prompt conformity, saying taxpayers and small businesses needed certainty and that the department’s forms should be codified. Opponents argued the bill would reduce state revenue substantially and mainly benefit higher-income taxpayers and corporations, while diverting money from education, child care, and health care. After debate, the committee voted to move SB 1638 as amended with a do-pass recommendation, passing it by about 4-3, and then adjourned.

Transcript Highlights:

• Chairman and members, Michaela Andrews, JLBC staff. Mr.
• Chairman and members, Michaela Andrews, JLBC staff.
• party to, as well as cleaning up some of those lines of communication that you referenced in our last JLBC
• They're willing to engage in that conversation, give as much information as has been requested by JLBC
• , 2026, and the 15th of every month thereafter through December 2026, SOS shall submit a report to JLBC

Keywords: 1182, all

Summary: The Joint Legislative Budget Committee approved the January 29, 2026 minutes and then took up a Secretary of State budget transfer tied to unused funds from the U.S. Congressional District 7 special election line item. JLBC staff explained that $2.49 million would be transferred to the operating budget, including $500,000 for 2026 primary and general election costs, $240,000 for Secretary of State physical security costs from March through June 2026, and $1.7 million for county-related expenses, including $1 million for the state’s voter registration database share. Staff said the request was smaller than the Secretary of State’s original $2.9 million request because it excluded $200,000 for future database replacement planning and $160,000 in already-incurred security costs. The Secretary of State’s representative said the security funding covered physical security measures and presence at public events, but declined to provide operational details in open session for safety reasons. Members questioned the size and purpose of the security request, the status of communications with the U.S. Department of Justice regarding voter rolls, and whether litigation costs related to that dispute were being tracked. The Secretary of State’s representative said the office had been in active communication with federal officials and had participated in virtual meetings, but could not discuss litigation details or confirm face-to-face DOJ meetings. One member asked for a written or verbal list of meetings and another requested ongoing litigation cost information, expressing concern about spending on legal disputes. The representative said none of the transferred special-election funds would be used for litigation and that the office would discuss budget questions further if needed. The vice chair said the issue had been discussed for months and noted dissatisfaction with the office’s response to DOJ and voter-roll issues, but said the transfer was still needed. He moved a favorable review of the item with provisions requiring monthly expenditure reports to JLBC staff beginning April 15, 2026, and prohibiting the transferred money from being used for contracts with individuals. The transcript cuts off before the full vote or any additional provisions were completed.

Transcript Highlights:

• There is a fiscal note from JLBC on this bill.
• There is a fiscal note from JLBC on this bill.
• There is a fiscal note from JLBC on this bill.
• Well, and behold, there's a fiscal note that was done by JLBC.
• It's on the JLBC website. All you have to do is look it up, and I'll quote from it.

Keywords: 1182, all

Summary: The Committee on Government opened with a lengthy chair statement about Department of Child Safety oversight, describing prior hearings that identified systemic failures in communication, child placement oversight, response times, transparency, and accountability. The chair said the committee would continue pursuing reforms through legislation and ongoing reporting requirements. During that discussion, members also raised concerns about child trafficking in congregate care settings and the need for separate legal representation for child victims, which was tied to recommendations and a bifurcation bill. The committee then considered and advanced several bills. SB 1141, concerning presidential electors if a candidate dies, withdraws, or becomes incapacitated before the Electoral College meets, received testimony in support from election-law and ethics groups and passed 4-3. SB 1186, requiring disclosure of things of value given by companies or their affiliates when seeking government contracts or grants, also passed 3-3 after a tie-breaking due-pass outcome. SB 1808, allowing certain flags, including the Israeli flag, to be displayed in HOA communities, passed 4-3. SB 1050, as amended, would create a lifetime free state parks pass for qualifying veterans and a related Game and Fish license provision; state parks and Game and Fish testified about fiscal impacts and requested further work, but the bill passed 6-0 with one present vote after the amendment was adopted. The committee also passed SB 1140, which creates a court-based expungement process for certain misdemeanor records, especially for trafficking survivors and others who have remained crime-free for five years; survivor advocates, anti-trafficking organizations, and legal service providers testified in support, and the bill passed 7-0 after an amendment clarifying limited uses of expunged records. SB 1437, requiring public records to be provided in the least expensive available format and favoring electronic delivery, passed 4-3 amid debate over transparency versus agency costs. SB 1246, raising the delinquency threshold before condominium lien foreclosure, passed 7-0. SB 1664, lowering signature requirements for constable nomination petitions in large counties, passed 7-0. SB 1338, addressing eligibility for state or local public benefits for certain noncitizens and unauthorized persons, passed 4-3. The committee adjourned after the final vote.

Transcript Highlights:

• I met with JLBC and Corrections.
• Right now, according to JLBC, schools have $823 million of unused Classroom Site Fund monies available
• The response was that it came from JLBC and that it reflected fiscal year 2025 data.
• JLBC is looking for other funds, if that is a concern.
• And JLBC is looking for other funds, if that is a concern.

Bills: HB2063, HB2271, HB2416, HB2478, HB2593, HB2692, HB2813, HB2992, HB2993, HB4044

Keywords: corrections oversight, appropriation, independent office, public safety, funding, firefighters, insurance rates, workers' compensation, firefighter cancer reimbursement, rate deviations, cost analysis, premiums, border security, drug trafficking, human smuggling, law enforcement funding, Arizona, immigration, education reform, K-12

Summary: The committee heard several appropriations and policy bills, with testimony often focused on public safety, education, and procurement. HB 263 would appropriate $1.5 million in FY2027 to the Independent Correctional Oversight Office; the sponsor and supportive testimony argued the office is needed to address serious problems in the corrections system, and the bill received a due pass recommendation, 17-1. HB 2993, as amended, would allow DPS to spend on legal services independent of the Attorney General and redirect $5 million from the Consumer Protection/Consumer Fraud Revolving Fund to the Gang and Immigration Intelligence Team Enforcement Mission Fund; the Speaker framed it as supporting law enforcement and public safety, and it passed 17-0. HB 2271 dealt with firefighter cancer coverage and insurance rates. The bill would allow an insurer covering firefighters and fire investigators to file a uniform rate deviation only if it is not reimbursed by the municipal firefighter cancer reimbursement fund. Testimony described the measure as a temporary shell pending a broader consensus agreement to bring fire districts into the reimbursement system; members stressed that firefighters should not see changes in claim handling, but several said the bill still needed work. It received a due pass recommendation on a 16-1-1 vote. HB 2416 would appropriate $20 million to DPS for local border support, including law enforcement positions, prosecution and detention costs, and equipment; sheriffs and the Arizona Sheriffs Association supported it as a continuation of existing funding for drug interdiction and border-related crime, and it passed 11-6-1. The committee also advanced HB 2692, which revises public construction procurement rules and authorizes progressive design-build and one-step competition for certain federally funded projects. Construction and procurement stakeholders said the bill was the product of a long consensus process, while some members worried about taxpayer impacts and the move away from standard procurement; it passed 10-7-1. HB 2478, as amended, creates the Arizona Commission on Student Outcomes to study K-12 accountability, standards, graduation requirements, early childhood education, and a trade pathways diploma, funded by Classroom Site Fund dollars; members debated whether the work should instead be done by ADE or the State Board, and the bill passed 11-7. The committee also heard HB 4044, which would create a Public Safety Parity Fund to support DPS and corrections salaries using investment earnings from the Budget Stabilization Fund and proceeds from forfeited digital assets; the sponsor and a troopers association witness argued it would provide a stable long-term funding source to address chronic vacancies and pay gaps.

Transcript Highlights:

• And Richard from JLBC will speak a little more on that, so hopefully I'll answer it for now.
• And then, of course, working with JLBC to figure out how we answer those questions. Absolutely.
• I'm Richard Stabnick with the JLBC staff.
• It only seems like I've been here since Richard Stabnick with the JLBC staff.
• So we need a clear line item with CMS and JLBC. Thank you.

Bills: HB2014, HB2156, HB2180, HB2554, HCR2047, HR2002

Keywords: air emissions, fuel blends, environmental quality, feasibility study, Arizona Department of Agriculture, livestock, compensation, funding, ranching, agriculture, appropriation, University of Arizona, education, state budget, biennial budget, state funding, appropriations, budget procedures, fiscal years, Judea

Summary: The committee first took up HCR 2047 and the identical HCR 2002, both sponsored by the chair. The resolutions recognize the historical, biblical, and legal legitimacy of Judea and Samaria, encourage those terms in official state communications, and reject the term West Bank as a modern political construct. Staff and several proponents, including representatives of an Israel-Arizona business coalition, a rabbi, and a StandWithUs representative, argued the language is historically accurate and important for truth, legal clarity, and Arizona’s relationship with Israel. No one testified against either measure. HCR 2047 passed 10-6 with 2 not voting, and HCR 2002 passed 11-6 with 1 not voting, both with due pass recommendations. The committee then considered HB 2554, which would move Arizona to a biennial state budget process and biennial capital planning. The sponsor argued the change would make government smaller, more disciplined, and less prone to long budget fights and spending growth. JLBC staff provided historical context, explaining Arizona’s past use of annual, bifurcated, and biennial budgeting and noting that second-year budgets are often adjusted for revenue and caseload changes. Members raised concerns about legislative leverage, executive flexibility, and whether the state already effectively budgets on a multi-year basis. Testimony was mixed: one supporter said the change could improve budget clarity, while others voted present or no, citing uncertainty and the need for more study. HB 2554 received a due pass recommendation on a 9-7 vote with 2 present. Next, HB 2014 was amended and passed. The bill directs ADEQ and the Department of Agriculture to study gasoline blend emissions and feasibility for seasonal fuel use in certain areas, with appropriations for the studies. The sponsor said Arizona’s fuel supply is vulnerable because of federal EPA rules and reliance on out-of-state refineries, especially California. Some members supported the study as a way to address possible fuel shortages, while others said prior stakeholder work had shown little could be done and questioned the cost. After adopting the Livingston amendment, the committee gave HB 2014 a due pass recommendation on a 12-2 vote with 4 present. The committee also advanced HB 2180, which funds the University of Arizona’s AZ Reach program, after adopting an amendment reducing the appropriation from $2.5 million to $500,000. The sponsor and a rural physician testified that AZ Reach helps small hospitals coordinate patient transfers, freeing clinicians to focus on care and improving access for rural communities. A program director explained that AZ Reach handles the administrative logistics of transfers for sending hospitals. Some members supported the program but noted concerns about the amount and ongoing budget negotiations, while others said the receiving hospitals needed to be part of the discussion. The bill passed with a due pass recommendation. Finally, HB 2156, as amended, appropriates $250,000 for the livestock compensation fund to help ranchers with wolf depredation losses and conflict-avoidance measures. A Game and Fish representative said the current federal grant funding is insufficient and unstable, while members debated the use of general funds and the program’s priorities. The bill received a due pass recommendation on a 10-7 vote with 1 not voting.

Transcript Highlights:

• Chair and members, for the record, Gordon Robertson with JLBC staff.
• The first item on your agenda is the Attorney General... ...with JLBC staff.
• Chair and members, for the record, Ethan Scheider with JLBC staff.

Keywords: 1182, all

Transcript Highlights:

• Chairman, for the record, Patrick Moran of JLBC staff. So to your first question, Mr.
• We are a pass-through agency for, as the JLBC stated, $54 million, which is scholarships and other kinds
• ASDB must prepare an expenditure plan for the use of the monies and submit the plan to JLBC for review
• Okay, for the record, Pat Brand of JLBC staff again, roughly every 1% is in the ballpark of about $80
• Volk, according to the JLBC information that I have, it would be a savings of $19 million.

Bills: HB4138, HB4139, HB4140, HB4141, HB4142, HB4143, HB4144, HB4145, HB4146, HB4147, HB4148, HB4149, HB4150, HB4151, HB4152, HB4153, SB1831, SB1832, SB1833, SB1834, SB1835, SB1836, SB1837, SB1838, SB1839, SB1840, SB1841, SB1842, SB1843, SB1844, SB1845, SB1846

Keywords: appropriations, education funding, health care, general fund, state budget, local funding, gaming, pari-mutuel, horse racing, regulatory assessment, first-time starters, budget implementation, federal funds, government services, budget stabilization, financial reporting, capital outlay, infrastructure, veterans services, highway construction

Summary: The committee met in a special joint appropriations session to review the FY 2027 budget package, including House Bill 4138 and Senate Bill 1831, the general appropriations or “feed” bills. Staff described the budget as including a one-time transfer of state funds, a 5% lump-sum reduction to most agencies’ discretionary general-fund budgets, continued funding for the state health insurance plan and school facilities, and various one-time restorations or reversions of prior appropriations. Members spent much of the meeting clarifying how the 5% reductions would work, noting that formula and mandatory funding such as K-12 basic aid are excluded, while the governor’s executive branch would decide how to implement the cuts within agencies. The chair repeatedly emphasized that the committee was not specifying line-item cuts and that agencies would have discretion over implementation. A large portion of the discussion focused on the practical effects of the budget on universities, public safety, health care, rural programs, and fund sweeps. Arizona Board of Regents and university representatives said the proposed reductions would amount to more than $85 million statewide and could affect programs such as the Arizona Promise Program, Teachers Academy, and tuition freezes, though no specific program cuts were written into the bill. Other testimony raised concerns about fund sweeps from encumbered balances, including university research funds, housing trust funds, utility regulation funds, and ADOT-related accounts, with some members warning about possible impacts on rural infrastructure and federal matching dollars. The committee also discussed the state employee health plan, including a $228 million general-fund infusion and proposed employee premium increases over three years, as well as questions about corrections, forestry and fire management, and rural critical access hospitals. Public testimony was largely opposed to the budget. Speakers from Opportunity Arizona, the Arizona Board of Regents, health care, and local government argued that the package would reduce support for education, housing, SNAP, health care access, and rural communities while preserving tax benefits for data centers and wealthy taxpayers. A mayor from Globe described severe flood damage and asked for state help for a flood relief fund, while a motorcycle safety advocate questioned a proposed transfer from the motorcycle safety fund. Committee members debated whether the budget’s effects should be described as speculative or as likely consequences of the broad cuts, and several exchanges became contentious over comparisons to the Great Recession and references to federal tax policy. The meeting ended with continued public testimony and no final vote taken in the portion provided, though leadership had earlier said the committee planned a mass roll-call vote on all the bills at the end.

Transcript Highlights:

• JLBC scores the bill in year one at a negative $441.3 million, and the amount decreases over the next
• After that, the first thing JLBC staff did on July 10th, the week after, they put out the first major
• And then JLBC, the third one came out, or July 17th, I didn't remember so old. Sorry about that.

Keywords: 1182, all

Summary: The caucus focused on HB 2153, a tax conformity bill that would align Arizona statute with the Internal Revenue Code as of January 1, 2026, including retroactive provisions affecting tax year 2025. Staff explained that the bill excludes three federal provisions from H.R. 1: the additional $6,000 senior deduction, the increase in the state and local tax (SALT) deduction to $40,000, and the deduction for interest on new car loans. It also adds several Arizona-specific provisions, including a $6,000 deduction for certain retirement distributions for taxpayers age 65 or older, a $6,000 deduction for Roth IRA contributions, an increase in the dependent tax credit from $100 to $125, and a deduction for child and dependent care expenses above the federal credit. JLBC’s fiscal note was cited as a negative $441.3 million in year one, declining over the next two years. Chairman Livingston and other Republican members argued the bill was needed immediately because the Department of Revenue had already issued tentative forms assuming full conformity, creating confusion for taxpayers and businesses. They said the state needed a signed law as soon as possible to avoid amended returns, inconsistent filing rules, and uncertainty for small businesses. Livingston emphasized that the bill was intended to protect small businesses from having to keep two sets of books and said he was advising taxpayers not to file until the issue was resolved. Members also discussed the practical impact on small businesses, citing testimony that Arizona has about 700,000 small businesses employing well over a million people. Several exchanges clarified the difference between the governor’s November direction to the Department of Revenue and the bill before the committee. Staff explained that DOR normally assumes “simple conformity” and that the governor’s directive attempted to add “below-the-line” deductions through a worksheet, but that those items still require statutory authorization. Members said the governor’s action was confusing and characterized it as a press release rather than binding law. The committee also discussed the child care provisions, describing them as a federal-style deduction Arizona has not previously adopted and as one of the main new benefits in the bill. The caucus ended without a vote, and members were told the floor would begin at 10 a.m.

Transcript Highlights:

• Chair, members, for the record, Grace Tempini with JLBC staff. What was described is correct.
• ASDB must submit an expenditure plan to JLBC for review in any year in which the legislature appropriates
• JLBC. Mr. Chair, for the record, Gordon Robertson, JLBC staff.
• JLBC would be able to answer that. Thank you. JLBC may be able to answer that.
• Chairman, on the Sarsson from the JLBC staff, to address your questions? Closer to the microphone?

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.