A Look at Revenue Estimates and Budget Requests

| January 18, 2016

Children’s Action Alliance Newsletter:

State Revenues Are Up & So Are State Funding Needs

Last October, the Joint Legislative Budget Committee staff released new revenue estimates that project Arizona will have a $650 million cash balance by the end of fiscal year 2017.  They cautioned, however, that only about $250 million is likely to be ongoing revenues.   Policymakers should be cautious about dedicating more than the $250 million to tax cuts or ongoing spending increases.

The state’s cash balances have risen as investments per student have dropped dramatically in both K-12 and university education. Strategies to help strengthen families and prevent abuse, neglect and other crises have also shrunk.

While we don’t know what Governor Ducey’s budget proposal will include, we know that the major state agencies are requesting nearly $600 million in new funding. Click here for a breakdown of these requests.

MAJOR AGENCIES IDENTIFY NEED FOR $583 MILLION MORE FOR NEXT FISCAL YEAR

A common theme throughout the major agency budget requests is the need for additional funds to meet the growing demand for services, from more children in the foster care system to more prisoners.

STATE GENERAL FUND APPROPRIATIONS

Agency

FY 15 Funding

FY 16 Funding

FY 17 Request

Increase Requested Above FY 16 Funding Level

Education1

$3,835,253,800

$3,889,519,500

$3,977,981,000

$  88,461,500

2%

AHCCCS2

1,225,882,700

1,205,162,300

1,343,188,900

153,226,600

13%

Corrections

996,845,600

1,029,900,600

1,096,950,000

67,049,400

7%

Universities

768,421,900

660,845,100

731,849,600

71,004,500

11%

Economic Security2

482,542,300

496,181,900

612,794,700

86,113,000

17%

Child Safety

361,005,400

356,448,200

462,344,500

105,896,300

30%

Health Services2

102,184,500

602,738,300

96,875,800

11,442,200

13%

TOTAL

$7,772,136,200

$8,240,995,900

$8,823,984,400

$583,193,500

7%

 

1. FY 17 request includes $75 million for student growth and formula adjustments projected by the Joint Legislative Budget Committee staff but not included in the Department of Education’s budget request.

2. The Division of Behavioral Health Services is being transferred from the Department of Health Services to AHCCCS and the Department of Economic Security in FY 17.  The FY 16 Funding and FY 17 Request columns include the shift of the $517 million from Health Services to  AHCCCS and Economic Security but the columns showing the increase dollar amount and percentage do not.

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Category: General

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