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State of Arizona Executive Budget

STATE AGENCY BUDGETS

FISCAL YEAR 2019

Douglas A. Ducey GOVERNOR

JANUARY 2018

Provisions for Individuals with Disabilities

Individuals who have a disability and require reasonable accommo-dation in order to use this document are encouraged to contact the Governors Office of Strategic Planning and Budgeting at 602-542-

Table of Contents

Budget in a Flash

Agency Operating Budget Detail

Accountancy, Board of ........................................................................ 7 Acupuncture Examiners, Board of .................................................. 9 Administration, Department of .................................................... 12 Administrative Hearings, Office of .............................................. 23 African-American Affairs, Commission of ................................ 26 Agriculture, Department of ............................................................ 28 Arizona Health Care Cost Containment System.................... 34 Arts, Commission on the ................................................................. 43 Athletic Training, Board of .............................................................. 46 Attorney General - Department of Law .................................... 49 Automobile Theft Authority ........................................................... 54 Barbers, Board of ................................................................................ 57 Behavioral Health Examiners, Board of ..................................... 60 Charter Schools, Board for ............................................................. 63 Child Safety, Department of .......................................................... 66 Chiropractic Examiners, Board of ................................................ 72 Citizens Clean Elections Commission ....................................... 75 Commerce Authority ........................................................................ 77 Community Colleges......................................................................... 80 Constable Ethics Standards and Training Board ................... 83 Contractors, Registrar of ................................................................. 84 Corporation Commission ................................................................ 87 Corrections, Department of ........................................................... 90 Cosmetology, Board of .................................................................... 95 Criminal Justice Commission, Arizona ....................................... 99 Deaf and Blind, State Schools for the ...................................... 102 Deaf and Hard of Hearing, Commission for the ................. 106 Dental Examiners, Board of .......................................................... 109 Early Childhood Development and Health Board .............. 112 Economic Security, Department of ........................................... 113 Education, Board of ......................................................................... 124 Education, Department of ............................................................ 126 Emergency and Military Affairs, Department of .................. 135 Environmental Quality, Department of .................................. 140 Economic Opportunity, Office of ............................................... 145 Equal Opportunity, Governors Office for .............................. 148 Equalization, Board of ................................................................... 150 Executive Clemency, Board of ..................................................... 152 Exposition and State Fair, Arizona............................................. 155 Financial Institutions, Department of ....................................... 158 Fingerprinting, Board of ................................................................ 164

Forestry and Fire Management, Department of .................. 166 Funeral Directors and Embalmers, Board of.......................... 170 Game and Fish Department ......................................................... 174 Gaming, Department of ................................................................. 178 Governor, Office of the .................................................................. 181 Governors Office of Strategic Planning and Budgeting .. 184 Health Services, Department of .................................................. 186 Highway Safety, Governors Office of ...................................... 192 Historical Society, Arizona ............................................................ 194 Historical Society, Prescott ........................................................... 197 Homeland Security, Department of .......................................... 200 Homeopathic Medical Examiners, Board of .......................... 202 Housing, Department of ................................................................ 205 Independent Redistricting Commission .................................. 209 Industrial Commission of Arizona ............................................. 211 Insurance, Department of ............................................................. 214 Judiciary ................................................................................................ 218 Juvenile Corrections, Department of ........................................ 224 Land Department, State ................................................................. 228 Legislature

Auditor General ............................................................................ 233 House of Representatives ......................................................... 236 Joint Legislative Budget Committee .................................... 238 Legislative Council ....................................................................... 240 Senate ............................................................................................... 242

Liquor Licenses and Control, Department of ........................ 244 Lottery Commission, State ............................................................ 248 Massage Therapy, Board of .......................................................... 251 Medical Board ................................................................................... 254 Mine Inspector, State ...................................................................... 258 Naturopathic Physicians Board of Medical Examiners ...... 261 Navigable Stream Adjudication Commission ....................... 264 Nursing, Board of ............................................................................. 266 Nursing Care Institution Administration Examiners ........... 269 Occupational Therapy Examiners, Board of .......................... 273 Opticians, Board of Dispensing .................................................. 276 Optometry, Board of ....................................................................... 279 Osteopathic Examiners, Board of ............................................... 282 Parks Board, State............................................................................. 285 Personnel Board ................................................................................ 291 Pharmacy, Board of .......................................................................... 294 Physical Therapy Examiners, Board of ..................................... 297 Pioneers Home, Arizona ............................................................... 301 Podiatry Examiners, Board of ..................................................... 304

Postsecondary Education, Commission for ........................... 307 Power Authority ................................................................................ 310 Private Postsecondary Education, Board for ......................... 311 Psychologist Examiners, Board of.............................................. 314 Public Safety, Department of ...................................................... 317 Public Safety Personnel Retirement System ......................... 325 Radiation Regulatory Agency ..................................................... 326 Real Estate, Department of .......................................................... 329 Residential Utility Consumer Office .......................................... 332 Respiratory Care Examiners, Board of ..................................... 335 Retirement System, Arizona State ........................................... 338 Revenue, Department of ............................................................... 341 School Facilities Board ................................................................... 345 Secretary of State - Department of State............................... 351 Tax Appeals, Board of ..................................................................... 356 Technical Registration, Board of ............................................... 359 Tourism, Office of ............................................................................. 362 Transportation, Department of .................................................. 364 Treasurer, State ................................................................................. 375 Tribal Relations, Governors Office on ..................................... 377 Universities

Regents, Board of ........................................................................ 379 Arizona State University ........................................................... 382 Northern Arizona University ................................................... 386 University of Arizona Main Campus ................................ 390 University of Arizona Health Sciences Center .............. 394

Veterans Services, Department of ............................................ 397 Veterinary Medical Examining, Board of ............................... 400 Water Resources, Department of .............................................. 403

Additional Changes

Capital Projects .................................................................................. 409 Executive Budget Capital Outlay Summary ........................... 416 Allocation of Statewide Adjustments ....................................... 417 Fund Transfers ................................................................................... 446 Executive Budget Legislative Changes .................................... 449

Reference

General Fund Revenue by Agency ............................................ 455 Other Fund Revenue by Agency ................................................ 459 Assumptions & Methodology ..................................................... 464

Summary of Appropriated Funds

Expenditure Detail of FY 2017 Appropriations ..................... 467 Expenditure Detail of FY 2018 Appropriations ..................... 481 Expenditure Detail of FY 2018 Executive Budget ................ 495 Expenditure Detail of FY 2019 State Agency Requests..... 509 Expenditure Detail of FY 2019 Executive Budget ................ 523

Glossary - Budget Terms ............................................................... 540 Glossary - Acronyms ....................................................................... 545 State Government Organization Chart .................................... 548 Resources ............................................................................................. 549 Acknowledgement ........................................................................... 550

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BoardofAccountancyTheArizonaStateBoardofAccountancyconsistsoffiveCertifiedPublicAccountants(CPAs)andtwopublicmembers,allofwhomareresidentsofthestateandareappointedbytheGovernor.TheBoardalsohassixadvisorycommitteesconsistingof46membersappointedbytheBoardwhoseworkdirectlysupportstheBoard'smission.TheadvisorycommitteesareAccountingandAuditing,TaxPractice,PeerReview,Certification,ContinuingProfessionalEducation,andLawReview.TheBoardanditscommitteesqualifycandidatesfortheUniformCPAExamination,certifyindividualstopracticeasCPAs,registeraccountingfirmsownedbyCPAs,andbienniallyrenewcertificatesforCPAsandregisteredaccountingfirms.TheBoardanditscommitteesalsoreceiveandinvestigatecomplaints,takeenforcementactionagainstlicenseesforviolationofstatutesandregulations,monitorcompliancewithcontinuingeducationrequirements,andreviewtheworkproductofCPAstoensureadherencetoprofessionalstandardsthroughtheBoard'speerreviewprogram.

Linktothe AGENCY'SWEBSITE http://www.azaccountancy.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary

Actual Exp.Plan Exec.Bud.FY2017 FY2018 FY2019

NetChangeFY2019

OtherAppropriatedFunds 1,521.7 2,042.2 2,042.20.0

1,521.7 2,042.2 2,042.2AgencyTotal 0.0

Adjustmentsforriskmanagementchargesandretirementcontributionsforthisagencyarenotincorporatedintothetotalsshownhere.TheyarelistedseparatedwithadjustmentsforallstateagenciesimmediatelyfollowingtheCapitalProjectssection.FundingfortheseadjustmentsisincludedaspartofthetotalExecutiveBudget.

PerformanceMeasures

ExpectedExpectedActualActualFY2016 FY2017 FY2018 FY2019

NumberofexamcandidatesapprovedbyBoardtositfortheUniformCPAexam

704 764 802 425

Numberofcertificatesissued 408 424 416 416

Numberoffirmsregistered 148 100 112 89

Linktothe AGENCY'SSTRATEGICPLAN

10,000

10,500

11,000

11,500

12,000

12,500

13,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

NumberofCertifiedPublicAccountants

AgencyOperatingDetail BoardofAccountancy7

AgencyExpenditures

1,200

1,300

1,400

1,500

1,600

1,700


Al l Funds

(in$1,000s)

StateAppropriations

Actual Approp. Exec.Bud.FY2017 FY2018 FY2019

NetChangeFY2019

BYPROGRAM

Certification,Registration,andRegulation 1,521.7 2,042.2 2,042.20.0

1,521.7 2,042.2 2,042.2AgencyTotalAppropriatedFunds 0.0


NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 766.3 827.5 827.50.0EREAmount 299.2 343.8 343.80.0Prof.AndOutsideServices 187.8 436.5 436.50.0TravelInState 1.5 5.0 5.00.0TravelOutofState 6.3 11.9 11.90.0OtherOperatingExpenses 225.5 386.7 386.70.0Equipment 32.1 15.8 15.80.0TransfersOut 3.0 15.0 15.00.0



NetChangeFY2019

BYAPPROPRIATEDFUND

AccountancyBoardFund 1,521.7 2,042.2 2,042.20.0


FORMOREDETAILABOUTEACHFUNDSEETHESTATEFUNDSBOOK

TheExecutiveBudgetprovidesalumpsumappropriationtotheagency.

8BoardofAccountancy FY2019ExecutiveBudget

http://www.azospb.gov/Documents/2018/FY%202019%20S%20&%20U%20of%20State%20Funds%20Book.pdf

AcupunctureBoardofExaminersTheBoardlicensesandregulatesacupuncturistsandcertifiesauricular(ear)acupuncturistsfordetoxificationorsubstanceabuseprograms.TheBoardalsooverseesthelicensingandcertificationofacupuncturetraining,continuingeducationprograms,andvisitingprofessors.TheBoardevaluatesprofessionalcompetency,investigatescomplaints,andenforcesthestandardsofpracticefortheacupunctureprofession.TheBoardregulatestheeducational,clinical,andcleanneedletechniqueprogramsapprovedtoteachthepracticeofacupunctureintheState.

Linktothe AGENCY'SWEBSITE http://www.azacupunctureboard.us/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

OtherAppropriatedFunds 159.2 185.5 169.6(15.9)

159.2 185.5 169.6AgencyTotal (15.9)

MajorExecutiveBudgetInitiativesandFunding

ELicensingOngoingCosts

TheExecutiveBudgetincludesanincreaseinfundingfortheBoardsshareofongoingoperatingcostsassociatedwiththenewelicensingsystemthatwasestablishedinFY2018andiscurrentlyusedby14agencies.Thesystemisexpectedtoprovideafastandefficientonlineexperienceforapplicantsandlicensees.

TheBoardwillbeginusingtheelicensingsysteminearly2018.TheBoardwillpayannuallicensingcostsfortheonlineplatformsonwhichtheelicensingsystemisbuiltandwillsharetheservicesofafulltimesystemadministratorattheDepartmentofAdministration.

FY2019Funding

6.2AcupunctureBoardofExaminersFund

6.2IssueTotal

Relocationto1740WestAdams

TheExecutiveBudgetincludesanincreaseinfundingfortheBoardsnewsharedservicescostsassociatedwithrelocatingtotheStateownedbuildingat1740W.AdamsSt.inPhoenix.ThefundingassociatedwiththisissuedoesnotreflectthechangeinStaterentalpayments,whichappearsintheStatewideAdjustmentssection.TheBoardsfundingissuebelowresultsinanetincreaseincosts.TheBoardwillrelocatebytheendofJanuary2018.

Twentysixboardsandcommissionsaremovingtothenewlocation,whichisdesignedtooperatemoreefficientlythantheagenciespreviousspaces.Theexpectedsavingsinrentandsharedservicesacrossall26agenciesisestimatedtobe$349,500.

Inanefforttoconsolidateservicesforthoseagencies,thenewlocationwillfeaturesharedconferenceroomsandothercommonspacesandsharedcontractsforWiFiservices,buildingsecurity,andconferenceroomphones,costingatotalof$150,900forallofthetenantagencies.Additionally,21oftheagencieswillshare1.0FTEreceptionistpositiononthefirstfloorofthebuilding.

InFY2019,theBoardwillspend$1,300forsharedservicescostssuchasWiFiandsecurity,comparedto200foranysimilarservicesatitspreviouslocation.Newfundingisrequiredtocoverthe$1,100increase.

AgencyOperatingDetail AcupunctureBoardofExaminers9

AtthepreviousStateownedspace,theagencypaid$4,600forrent.Atthenewspace,theagencywillpay$5,300.Thechangeintheagencysrentalpaymentsof$700appearsintheStatewideAdjustmentssection.

FY2019Funding

1.1AcupunctureBoardofExaminersFund

1.1IssueTotal

RemoveOneTimeFY2018AppropriationsTheExecutiveBudgetincludesadecreaseinonetimeFY2018fundingforRulemakingandanAnnualLeavePayout.

FY2019Funding

(23.2)AcupunctureBoardofExaminersFund

(23.2)IssueTotal


PerformanceMeasures


Numberofrenewalsissued 595 585 625 625

Numberofinvestigationsconducted 0 0 10 10

Totalnumberoflicensees 599 616 620 630

Totalnumberofauricularacupuncturecertificateholders 37 33 55 55

Numberofapplicationsreceived 66 82 87 91


0

100

200

300

400

500

600

700


NumberofRenewalsIssued

10AcupunctureBoardofExaminers FY2019ExecutiveBudget

AgencyExpenditures

0

50

100

150

200


Al l Funds

(in$1,000s)

StateAppropriations


NetChangeFY2019

BYPROGRAM

LicensingandRegulation 159.2 185.5 169.6(15.9)

159.2 185.5 169.6AgencyTotalAppropriatedFunds (15.9)


NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 111.2 85.2 85.20.0EREAmount 20.1 32.6 32.60.0Prof.AndOutsideServices 0.2 5.0 5.00.0TravelInState 1.7 3.0 3.00.0TravelOutofState 0.0 5.0 5.00.0OtherOperatingExpenses 25.7 54.7 38.8(15.9)Equipment 0.3 0.0 0.00.0



NetChangeFY2019

BYAPPROPRIATEDFUND

AcupunctureBoardofExaminersFund 159.2 185.5 169.6(15.9)



TheExecutiveBudgetprovidesalumpsumappropriationtotheagency.

AgencyOperatingDetail AcupunctureBoardofExaminers11


DepartmentofAdministrationTheDepartmentofAdministration(DOA)wasestablishedbytheArizonaStateLegislaturein1973tosupporttheoperationofstategovernment.Astheadministrativeandbusinessoperationshubofstategovernment,DOAprovidesmedicalandotherhealthbenefitstostateemployees,processesclaimswhenemployeesgetinjured,maintainsofficebuildingsforemployeestoworkin,purchasesgoodsandservicesneededtoconductbusiness,providesinformationtechnologyandtelecommunicationservicesforemployees,andmuchmore.Thesecentralizedsupportservicesenablestateagenciestofocustheireffortsontheirownuniquemissions.

Linktothe AGENCY'SWEBSITE http://www.azdoa.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

GeneralFund 176,857.5 110,131.1 107,767.1(2,364.0)OtherAppropriatedFunds 192,124.4 246,282.9 251,215.14,932.2NonAppropriatedFunds 1,142,727.7 1,208,990.4 1,203,808.1(5,182.3)

1,511,709.6 1,565,404.4 1,562,790.3AgencyTotal (2,614.1)


AutomationProjectsAppropriationExtension

TheExecutiveBudgetincludesanincreaseinfundingtoextendautomationprojectappropriationauthoritythroughFY2019.

Theincreasedfundingwillsupportthefollowingprojects:FY2017Eprocurementreplacement,FY2018ASETinitiatives,FY2018DEQelicensing,FY2018claimsprocessingsystematICA,FY2018updatestoITatLottery,FY2018MicrowaveBackbone,FY2018CJISatPublicSafety,FY2018ELASatDepartmentofEducation,andFY2018CHILDSreplacement.

TheStateslargeinformationtechnologyandautomationprojectsareinherentlycomplexandrequireextensiveplanning.Themoniesappropriatedtothoseprojectsareonetimeappropriations,butmanyoftheprojectscannotbecompletedwithinasinglefiscalyear.

FY2019Funding

0.0AutomationProjectsFund

0.0IssueTotal

AutomationProjectsFundRevenue

TheExecutiveBudgetincludesfundingfromthefollowingagenciestobetransferredtotheAutomationProjectsFundforInformationTechnology(IT)projectsinFY2019:DepartmentofAdministration,OfficeoftheAttorneyGeneral,BoardofBehavioralHealthExaminers,DepartmentofChildSafety,BoardofCosmetology,DepartmentofEnvironmentalQuality,DepartmentofFinancialInstitutions,andtheDepartmentofPublicSafety.TheseresourceswillbeusedfortheITprojectsdescribedintheLargeAutomationProjectsinitiative.

TheExecutiveBudgettransfersfundsfromnonappropriatedsources,whichdonotappearbelow,including:$1.5millionfromtheConsumerRestitutionandRemediationRevolvingFundattheAttorneyGeneral'sOffice;$800,000fromtheIGA/ISAFundattheDepartmentofEnvironmentalQuality;and$500,000fromtheReceivershipRevolvingFundattheDepartmentofFinancialInstitutions.TheExecutiveBudgetalsotransfersthe

12DepartmentofAdministration FY2019ExecutiveBudget

$5.0millionGeneralFundappropriationfortheCHILDSreplacementprojectfromtheDepartmentofChildSafetysagencybaselinetotheAutomationProjectsFund.

FY2019Funding

9,460.0GeneralFund

450.0CosmetologyBoardFund

2,806.2ArizonaHighwayPatrolFund

450.0BehavioralHealthExaminersFund

1,400.0UndergroundStorageTankRevolvingFund

1,000.0PermitAdministrationFund

1,250.0PublicSafetyEquipmentFund

3,517.0StateWebPortalFund

5,330.0AutomationOperationsFund

25,663.2IssueTotal

AzNETContractSavings

TheExecutiveBudgetincludesadecreaseinfundingtoDOAsoperatingbudgetduetoanegotiatedlowercostcontractforAzNETservices,whichincludephoneandinternetcapabilities.

FY2019Funding

(45.0)GeneralFund

(45.0)IssueTotal

CentralServicesBureauExpenditureIncrease

TheExecutiveBudgetincludesanincreaseinfundingfortheCentralServicesBureau(CSB)tomakepaymentsonbehalfoftheagenciesforsharedservicesintheStateownedbuildingat1740W.AdamsSt.inPhoenix.

ByJanuary2018,26boardsandcommissionswilloccupythenewlyrenovatedbuildingandsharesuchservicesassecurityandWiFi.Additionally,21oftheboardsandcommissionswillshare1.0FTEpositiontostaffaservicewindowforthepublic.TheagencieswillpaytheirportionoftheseservicestoCSB,whichwillremitpaymentfortheservices.

FY2019Funding

186.6SpecialServicesFund

186.6IssueTotal

EfficiencySavings

TheExecutiveBudgetincludesadecreaseinfundingasaresultofefficiencysavingsidentifiedbyDOA.ThosesavingswillbeappliedtoDOAsoperatingbudget.

FY2019Funding

(500.0)GeneralFund

(500.0)IssueTotal

GeneralServicesDivisionOperatingIncrease

TheExecutiveBudgetincludesanincreaseinfundingforoperatingexpensesattheGeneralServicesDivision,whichhasexperiencedavarietyofcostpressuresinrecentyears.

Thecosthasincreasedforservicessuchaslandscaping,janitorialservices,andgeneralmaintenance,aswellasvendorcontracts.Forexample,thetransitionofcustodialservicesfrominmatelabortocontractedlaborentailedanoverallincreaseof$280,000inFY2016and$300,000inFY2017.ElevatorandHVACmaintenance

AgencyOperatingDetail DepartmentofAdministration13

contractshaveincreasedby$12,000and$42,000,respectively,sinceFY2015.

Tocovertheseaddedcosts,buildingrenewaldollarshavebeenusedbecausethebudgetforfacilities,operations,andmaintenanceintheGeneralServicesDivisionisinsufficient.TheExecutiveBudgetwouldincreasetheGeneralServicesDivisionbudgetcapacitytocoverongoingcostsinsteadofrelyingononetimebuildingrenewalmonies.

FY2019Funding

500.0CapitalOutlayStabilizationFund

500.0IssueTotal

GovernmentTransformationOfficeFunding

TheExecutiveBudgetincludesadecreaseoffundingfortheGovernmentTransformationOffice(GTO),leaving$500,000availableforGTOtogeneratebetterStateagencyperformanceandcustomerservice.

GTOworkswithagenciestofacilitateprocessimprovementprojects.ThedemandforGTOservicesacrossStategovernmenthasincreasedsinceFY2016,asagencieshaveadoptedprocessimprovementprojects.

GTOplanstobecomeselfsustainingbychargingagenciesforservicesrendered.

FY2019Funding

(1,000.0)GeneralFund

(500.0)StateWebPortalFund

(1,500.0)IssueTotal

HealthInsuranceTrustFund,AgencyPremiums

TheExecutiveBudgetincludesanincreaseinonetimefundingforagencypremiumincreasestotheHealthInsuranceTrustFund(HITF).

HITFsupportstheState'sselfinsuredmedical,pharmacy,anddentalinsuranceforStateemployees.SinceFY2016,claimsgrowthhasbeenhigherthanforecasted.

TheagencyandfundimpactfromthispremiumincreaseisincludedintheStatewideAdjustmentssectionoftheExecutiveBudget.

FY2019Funding

0.0GeneralFund

0.0IssueTotal

HealthServicesCOPPaymentFundShift

TheExecutiveBudgetincludesanincreaseinfundingfortheDepartmentofHealthServices(DHS)topaytheCertificateofParticipation(COP)liabilityontheStateownedbuildinglocatedat150N.18thAve.inPhoenixandtheutilitiesattheDHSStateHealthLab.

ThroughFY2018,theCapitalOutlayStabilizationFund(COSF)hasborne$1.5millionincosts;however,thesebuildingsdonotcontributetotheCOSF,and,thus,itismoreappropriatetofundbothitemsfromtheIndirectCostFundatDHS.

FY2019Funding

0.0CapitalOutlayStabilizationFund

0.0IssueTotal

HumanResourceInformationSystemSupport


TheExecutiveBudgetincludesanincreaseinfundingforthepurchaseofdisasterrecoveryhardwaretosafeguardtheagingHumanResourceInformationSystem.

FY2019Funding

171.9PersonnelDivisionFund

171.9IssueTotal

LargeAutomationProjects

TheExecutiveBudgetincludesanincreaseinfundingforneworcontinuingInformationTechnology(IT)projects.TheExecutivecontemplatesthatthisfundingremainnonlapsingfortwoyears(June30,2020)consistentwiththebudgetarytreatmentofotherlargescalecapitalprojects.SeetheFY2019ProjectSummaryformoredetails.

DOAsArizonaStrategicEnterpriseandTechnologyOffice(ASET)evaluatesandcentrallymanagesnearlyallchangestoITsystemsacrossstategovernment.Automationprojects,withtheexceptionofverysmallprojects,arefundedbytransferringmoniesfromanagencywheretheprojectislocatedtotheAutomationProjectFund.AppropriationsfromtheAutomationProjectFundforeachITprojectaremadetoDOA,whichtasksASETwithoversightandprojectmanagement.

TheFY2018budgetincluded$58.8millionfromtheAutomationProjectsFundforthefollowingnewandcontinuingprojects:ASETinitiatives(DOA);HumanResourceInformationSystemreplacementfeasibilitystudy(DOA);implementationofastatewidelicensingsystem(DOA);implementationelicensingprojects(DepartmentofEnvironmentalQuality);upgradestotheclaimsprocessingsystem(IndustrialCommissionofArizona);updatestotheITsystem(ArizonaStateLotteryCommission);microwavebackboneupdates(DepartmentofPublicSafety);CriminalJusticeInformationSystemupdates(DepartmentofPublicSafety);updatesandmaintenancetotheEducationLearningandAccountabilitySystem(DepartmentofEducation);upgradestotheInformationTechnologyInfrastructure(DepartmentofRevenue);andreplacementoftheChildrensInformationLibraryandDataSource(CHILDS)(DepartmentofChildSafety).

FY2019ITProjectSummary:

TheExecutiveBudgetremovestheFY2018fundingof$58.8millionandincludes$28.5millionfortheprojectslistedbelow.Thesenewmonieswouldbenonlapsingfortwoyears.

DepartmentofAdministration:

TheExecutiveBudgetincludes$8.8million: $5.3milliontocompletetherelocationofthestatedatacenterfrom1510WAdamstoaprivatefacility. $3.0milliontocompletethereplacementofthestatewideeprocurementsystem.ThisprojectisunderwaywithanexpectedcompletiondateduringFY2019.Thenewsystemwillallowforbettervisibilityandtrackingofprocurementdataaswellascompatibilitybetweentheprocurementsystemandthestatewideaccountingsystem,whichisnotcurrentlypossible. $500,000toimprovestateagencywebsites.

OfficeoftheAttorneyGeneral:

TheExecutiveBudgetincludes$1.5milliontoupdatetheCaseManagementSystem,whichtracksallphasesofcriminalandcivilcases.TheAttorneyGeneralsOfficeisusingasystemandsoftwarethatisnolongersupportedbythevendor.Thesoftwaremustbeupgraded,includingtherequiredlicensesandannualsupportandmaintenanceofthesystemandsoftware.

BoardofBehavioralHealthExaminersandBoardofCosmetology:


TheExecutiveBudgetincludes$900,000,equallydivided,fortheseboardstojoinamultiagencyelicensingsystemthatwasestablishedinFY2018andwillbeusedby14agencies.Theseboardsareusingoutdatedonlinesoftwareorpaperrecordstomanagetheirnearly11,000and111,000licenses,respectively.Thenewsystemismoresecurethanagencydevelopedapplicationsandwillprovideafastandefficientonlineexperienceforcustomers.

DepartmentofChildSafety(DCS):

TheExecutiveBudgetincludes$9.5millionforthethirdofafouryearprojectforanewinformationmanagementsystem(Guardian)toreplacetheCHILDSsystem.Guardianwillbeusedtodocumentthestatus,demographics,locations,andoutcomesforeverychildintheDCScare.DCShasalreadylaunchedthemobilecomponentofGuardian,whichallowscaseworkerstouseamobiletablettotakepictures,completeforms,runbackgroundchecks,reviewandenterreports,andaccessotherinformationmanagementtoolswhileworkingoffsite.InFY2019,DCSplanstocompletetheplatformdevelopment,hostingenvironment,businessintegration,documentmanagement,technicalintegration,andqualitymanagementforGuardian.Thisamountdoesnotinclude$5.0millionfromtheGeneralFundinDCSbaselinebudgetthatisalsoappropriatedfortheGuardianITproject.

DepartmentofEnvironmentalQuality(DEQ):

TheExecutiveBudgetincludes$3.2millionforthenextphaseoftheMyDEQproject.Thisisthefifthphaseofwhatisexpectedtobeaneightphaseproject.MyDEQisanonlineplatformintendedtomakeiteasierforindustrybystreamliningthepermittingandcomplianceprocess.Todate,44ofDEQs147servicesarenowavailableonlinewith16moreservicesbeingaddedinFY2018.AutomatingmuchofDEQ'spermitting,inconjunctionwithotherprocesschanges,hasshortenedtheaveragepermitdecisiontimefrom121daysinFY2008to8daysinFY2018.TheExecutiveBudgetwilladdmoreservicestotheonlineplatform,prioritizedbystakeholderinput.Thetotalprojectcostisestimatedat$41.1million.ThroughFY2018,$21.6millionhasbeenappropriatedforthisproject.

DepartmentofFinancialInstitutions(DFI):

TheExecutiveBudgetincludes$500,000forDFItobuildacomprehensiveenterprisesoftwareanddatabasesystemtomanageDFI'soperations.ThesystemwillintegrateDFI'sdocumentmanagementsystem,andallowDFItoofferpaperlessoptionsfortheirconstituentstoapplyforandrenewlicenses,andsubmitandmanagecomplaints.

DepartmentofPublicSafety(DPS):

TheExecutiveBudgetincludes$4.1million: $2.8millionforthesecondofathreeyearprojecttoupdatetheArizonaCriminalJusticeInformationSystem(ACJIS).ACJISismovingfromamainframeenvironmenttoanewopensystemthatcanutilizemodernapplications,databases,andlanguages. $1.3millionforthenextphaseofupgradingthestatemicrowavecommunicationsystem,whichconsistsofthreeloops.ThesouthernloopwascompletedinFY2011.ThewesternloopisexpectedtobecompletedinFY2019.Thereremainsseveralyearsofworkbeforethenorthernloopiscompleted.TheExecutiveBudgetwouldfundcommercialpowerupgradestotheDPSNetworkOperationsCenterinPhoenixandforpreventivemaintenanceonDPSradiotowers.

Additionalinformationforeachoftheseprojectscanalsobeviewedwithintheoperatingbudgetdetailoftheagencyaffected.


FY2019Funding

(25,312.3)AutomationProjectsFund

(25,312.3)IssueTotal

StatewideInformationSecurityFunding

TheExecutiveBudgetincludesanincreaseinfundingtopayforthelicensesfor13cybersecuritycontrolsthatwereintroducedacrossStategovernmentinFY2018,aswellassupportotheroperationsoftheStatewideInformationSecurityOffice.

Inordertocoverthecostofthe13StatewidecybersecuritycontrolsimplementedinFY2018,theExecutiveBudgetincreasestheInformationTechnologyFundproratachargefrom0.2%to0.3%.TheseadjustmentsaredisplayedintheStatewideAdjustmentssectionofthispublication.

FY2019Funding

5,825.7InformationTechnologyFund

5,825.7IssueTotal

UtilitySavings

TheExecutiveBudgetincludesadecreaseinfundingforlowerenergyusefromefficiencyinitiatives.ThesesavingswillbeappliedtoDOAsUtilitiesSpecialLineItem.

FY2019Funding

(625.7)GeneralFund

(625.7)IssueTotal

WorldWarIMonumentRepair

TheExecutiveBudgetincludesanincreaseinonetimefundingforrepairstotheWorldWarIMonumentandsurroundinggroundsontheCapitolMallinpreparationofthecentennialoftheArmisticeonNovember11,2018.

FY2019Funding

25.3StatewideMonumentandMemorialRepairFund

25.3IssueTotal

ExecutiveBudgetBaselineChanges

AdjustInsuranceClaimsRelatedExpenditures

TheExecutiveBudgetincludesanincreaseinfundingforexpectedliabilityandworkerscompensationclaimsagainstStateagencies.

Eachyear,anindependentactuarypreparesastudyofeachagencysexposureandclaimshistoryforitsproperty,liability,andworkers'compensationinsuranceprograms.TheExecutiveBudgetalignstheexpectedexposureandtheamountofappropriationavailabletopayclaims.

FY2019Funding

6,207.7RiskManagementFund

6,207.7IssueTotal


RemoveOneTimeFY2018Appropriations

TheExecutiveBudgetincludesadecreaseforonetimeFY2018appropriations,includingcountypaymentsandtheOfficeGrantsandFederalResources'temporaryfundingsolution.

FY2019Funding


(375.9)AdminAFISIICollectionsFund


SaleLeaseBackPaymentAdjustment

TheExecutiveBudgetincludesadecreaseinfundingtoaligntheappropriationfortheStatebuildingsaleleasebackagreementswiththeFY2019payments.

FY2019Funding

(3.1)GeneralFund

(3.1)IssueTotal

StatewideProjectManagementandOversight

TheExecutiveBudgetincludesanincreaseinfundingforprojectmanagementandoversightintheArizonaStrategicEnterpriseTechnologiesOffice(ASET).ASETmanagesandoverseesinformationtechnologyprojectsthatarefundedthroughtheAutomationProjectsFund.

FY2019Funding

1,500.0AutomationOperationsFund

1,500.0IssueTotal


ExecutiveBudgetSupplementalChanges

FederalRepayment

TheExecutiveBudgetincludesanonlapsing,FY2018supplementalappropriationforfederalreimbursementsthatmaybeduebeforeJune30,2018.

MoniescollectedfromavarietyoffundingsourcesatStateagenciesandusedforstatewidefunctions,suchasemployeehealthcareorgeneralliabilityinsurance,areakeyfundingmechanismfortheState.Onefundingsourceforthoseservicesismoneyfromthefederalgovernment.Stateagenciesreceivefederalmoneyforuseinspecificwaysandwithdetailedrestrictions.FederalauditorshavenotifiedtheStatethatsomeusesoffederalfundsinFY2017havebeendisallowed,andtheStatewilllikelyberequiredtoreimbursethedisallowedcosts.Thisreimbursementhasoccurredeachspringforseveralyears.

FY2018Funding

15,802.5RiskManagementFund

15,802.5IssueTotal

18 DepartmentofAdministration FY2019ExecutiveBudget

0

100200

300

400500

600

700800

900


StateAppropriations


NetChangeFY2019

BYPROGRAM

Administration 2,946.4 4,671.4 2,750.5(1,920.9)ArizonaStrategicEnterpriseTechnologyOffice

53,478.1 92,191.1 100,367.78,176.6

BenefitsDivision 4,884.8 5,302.0 5,302.00.0FinancialServices 181,540.5 115,020.0 105,553.3(9,466.7)GeneralServicesDivision 26,038.6 33,148.8 33,048.4(100.4)HumanResources 11,679.6 12,951.5 13,123.4171.9RiskManagement 86,374.0 90,951.4 97,159.16,207.7StateProcurementOffice 2,039.9 2,177.8 1,677.8(500.0)

368,981.9 356,414.0 358,982.2AgencyTotalAppropriatedFunds 2,568.2


NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 31,034.8 35,734.7 36,735.21,000.5EREAmount 10,675.1 13,390.9 13,610.6219.7Prof.AndOutsideServices 34,544.4 45,274.1 47,411.82,137.7TravelInState 138.5 278.1 278.10.0TravelOutofState 47.1 116.2 116.20.0AidtoOthers 63,139.4 15,650.7 6,500.5(9,150.2)OtherOperatingExpenses 182,602.3 186,027.3 194,352.88,325.5Equipment 5,426.2 12,623.6 12,623.60.0CapitalOutlay 158.4 0.0 0.00.0DebtService 0.2 0.0 0.00.0CostAllocation 1,837.7 2,341.9 2,376.935.0TransfersOut 39,377.8 44,976.5 44,976.50.0



NetChangeFY2019

BYAPPROPRIATEDFUND

GeneralFund 176,857.5 110,131.1 107,767.1(2,364.0)AdminAFISIICollectionsFund 0.0 375.9 0.0(375.9)


FilledEmployeePositions


NetChangeFY2019

BYAPPROPRIATEDFUND

AdminSurplusProperty/FederalFund 34.9 465.7 465.70.0AirQualityFund 406.0 927.3 927.30.0ArizonaFinancialInformationSystemCollectionsFund

9,295.4 9,457.5 9,457.50.0

ArizonaHighwayPatrolFund 0.0 0.0 2,806.22,806.2AutomationOperationsFund 19,771.2 24,067.0 30,897.06,830.0AutomationProjectsFund 26,064.7 58,764.9 33,952.6(24,812.3)BehavioralHealthExaminersFund 0.0 0.0 450.0450.0CapitalOutlayStabilizationFund 15,316.7 18,159.9 18,659.9500.0CorrectionsFund 422.9 573.6 573.60.0CosmetologyBoardFund 0.0 0.0 450.0450.0InformationTechnologyFund 2,908.7 2,948.9 8,774.65,825.7MotorPoolRevolvingFund 6,834.3 10,154.1 10,154.10.0PermitAdministrationFund 0.0 0.0 1,000.01,000.0PersonnelDivisionFund 11,679.6 12,951.5 13,123.4171.9PublicSafetyEquipmentFund 0.0 0.0 1,250.01,250.0RiskManagementFund 86,374.0 90,951.4 97,159.16,207.7SpecialEmployeeHealthFund 4,884.8 5,302.0 5,302.00.0SpecialServicesFund 412.8 812.3 998.9186.6StateSurplusPropertyFund 2,643.7 2,960.6 2,960.60.0StateWebPortalFund 3,368.6 5,551.6 8,568.63,017.0StatewideMonumentandMemorialRepairFund

0.0 0.0 25.325.3

TelecommunicationsFund 1,706.2 1,858.7 1,858.70.0UndergroundStorageTankRevolvingFund 0.0 0.0 1,400.01,400.0





SpecialLineAppropriations


NetChangeFY2019

ADEStudentDatabase 7,300.0 7,300.0 7,300.00.0ArizonaFinancialInformationSystem 9,295.4 9,457.5 9,457.50.0ASETITConsolidationAssessment 750.0 0.0 0.00.0CountyServices 14,000.5 15,650.7 6,000.5(9,650.2)DCSCHILDSDatabase 3,687.0 11,103.0 11,103.00.0DEQElisencing 1,070.0 3,200.0 3,200.00.0DOADataCenter 1,769.9 3,405.1 3,405.10.0DOCInmateDatabase 7,390.9 0.0 0.00.0DORITInfrastructure 0.0 11,000.0 11,000.00.0DPScriminaljusticeinfosystem 0.0 2,343.0 2,343.00.0DPSmicrowavebackbone 0.0 2,500.0 2,500.00.0EGovernmentProjects 738.4 500.0 1,000.0500.0EnhancingStatewideDataSecurity 2,015.2 7,303.5 7,303.50.0EnterpriseArchitecture 222.2 0.0 0.00.0eProcurementSystemReplacement 204.8 0.0 0.00.0FederalTransferPayment 0.0 0.0 0.00.0GovernmentTransformationOffice 1,298.0 2,010.8 510.8(1,500.0)HRISAssessment 0.0 500.0 500.00.0ICAclaimsprocessing 0.0 1,017.4 1,017.40.0LotteryITsystem 0.0 3,497.4 3,497.40.0ProjectManagement 916.2 4,500.0 6,000.01,500.0RiskManagementAdministrativeExpenses 7,351.4 8,747.2 9,777.91,030.7RiskManagementLosses 44,618.2 42,530.3 46,178.43,648.1SouthwestDefenseContracts 25.0 25.0 25.00.0StateBuildingsDebtService 84,117.4 84,115.1 84,112.0(3.1)StateSurplusPropertySalesProceeds 1,645.4 1,810.0 1,810.00.0statewideelicensing 0.0 595.5 595.50.0StatewideInformationSecurityandPrivacyOffice

871.7 874.3 6,700.05,825.7

TelecommunicationsInfrastructure 118.8 0.0 0.00.0Utilities 6,140.6 8,275.6 7,649.9(625.7)WorkersCompensationLosses 28,062.8 31,830.4 33,359.31,528.9



NonAppropriatedFundsExpenditures


NetChangeFY2019

2010ALotteryRevenueBondDebtService 37,502.1 37,500.8 37,502.92.1AdminAFISIICollections (3.1) 0.0 0.00.0AdminSpecialServicesFund 658.1 785.9 785.90.0ADOASpecialEventsFund 16.4 9.0 9.00.0CertificateofParticipation 134,768.8 138,705.9 139,344.8638.9ConstructionInsuranceFund 1,896.4 6,805.0 6,324.0(481.0)ConsumerRestitutionandRemediationRevolvingFund

0.0 0.0 1,489.00.0

CoopStatePurchasing 3,513.9 3,200.0 4,100.0900.0DOA911EmergencyTelecommunicationServiceRevolving

16,669.7 18,107.2 18,107.20.0

ERE/BenefitsAdministration 33,015.0 32,931.3 32,931.30.0FederalGrant 3,572.3 1,686.7 1,686.70.0IGAandISAFund 8,701.0 6,075.4 6,075.40.0OilOverchargeFund 385.8 231.3 0.0(231.3)PayrollAdministrationFund 796.8 64.4 64.40.0ReceivershipRevolvingFund 0.0 0.0 500.00.0RetireeAccumulatedSickLeave 15,481.1 16,240.4 16,240.40.0SpecialEmployeeHealth 885,384.4 915,771.1 937,771.122,000.0StateEmployeeRideShare 305.9 833.9 833.90.0StatewideDonations 15.3 4.5 4.50.0TransparencyWebsite 47.8 37.6 37.60.0

1,142,727.7 1,178,990.4 1,203,808.1AgencyTotalNonAppropriatedFunds 22,828.7


FederalFundsExpenditures

Actual Exp.Plan Exp.PlanFY2017 FY2018 FY2019

1,914.3 2,519.1 1,010.5AgencyTotal

Linktothe ALLFEDERALGRANTSFORTHISAGENCYAREDISPLAYEDINTHEFEDERALFUNDSREPORT

ThesearetheFederalExpendituresreportedbytheagenciesand,inmostcases,areincludedintheAppropriatedorNonAppropriatedFundsexpenditureslistedabove.

TheExecutiveBudgetprovidesalumpsumappropriationbyfundwithspeciallines.


http://www.azospb.gov/Documents/2018/FY%202019%20S%20&%20U%20of%20State%20Funds%20Book.pdfhttp://www.azospb.gov/Documents/2018/FY%202019%20Federal%20Funds%20Report.pdf

OfficeofAdministrativeHearingsTheOfficeisthemainvenueforadministrativelawhearingsinArizona,inwhichAdministrativeLawJudgespresideovercontestedcases.

Linktothe AGENCY'SWEBSITE http://azoah.com/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

GeneralFund 860.5 870.9 884.213.3NonAppropriatedFunds 828.1 812.6 812.60.0

1,688.6 1,683.5 1,696.8AgencyTotal 13.3


Relocationto1740WestAdams

TheExecutiveBudgetincludesanincreaseinfundingfortheOfficesnewsharedservicescostsassociatedwithrelocatingtotheStateownedbuildingat1740W.AdamsSt.inPhoenix.ThefundingassociatedwiththisissuedoesnotreflectthechangeinStaterentalpayments,whichappearsintheStatewideAdjustmentssection.TheOfficesfundingissuebelowresultsinanetdecreaseincosts.TheOfficewillrelocatebytheendofJanuary2018.

Twentysixboardsandcommissionsaremovingtothenewlocation,whichisdesignedtooperatemoreefficientlythantheagenciespreviousspaces.Theexpectedsavingsinrentandsharedservicesacrossall26agenciesisestimatedtobe$349,500.

Inanefforttoconsolidateservicesforthoseagencies,thenewlocationwillfeaturesharedconferenceroomsandothercommonspacesandsharedcontractsforWiFiservices,buildingsecurity,andconferenceroomphones,costingatotalof$150,900forallofthetenantagencies.Additionally,21oftheagencieswillshare1.0FTEreceptionistpositiononthefirstfloorofthebuilding.

InFY2019,theOfficewillspend$23,800forsharedservicescostssuchasWiFiandsecurity,comparedto$10,500foranysimilarservicesatitspreviouslocation.Newfundingisrequiredtocoverthe$13,300increase.

AtthepreviousStateownedspace,theagencypaid$204,500forrent.Atthenewspace,theagencywillpay$144,000.Thechangeintheagencysrentalpaymentsof$(60,500)appearsintheStatewideAdjustmentssection.

FY2019Funding

13.3GeneralFund

13.3IssueTotal


AgencyOperatingDetail OfficeofAdministrativeHearings23

PerformanceMeasures


Percentofevaluationsratingtheadministrativelawjudgeexcellentorgoodinimpartiality

94.95 88.01 94.95 94.95

Averagedaysfromrequestforhearingtofirstdateofhearing 53.48 53.45 53.45 53.45

Averagenumberofdaysfromtheconclusionofthehearingtotransmissionofthedecisiontotheagency

10.85 11.76 11.76 11.76

Numberofhearingsheld 1,776 1,831 1,831 1,831


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


TotalCases

AgencyExpenditures

0

500

1,000

1,500

2,000

2,500

3,000


Al l Funds GF

(in$1,000s)

StateAppropriations


NetChangeFY2019

BYPROGRAM

Hearings 860.5 870.9 884.213.3

860.5 870.9 884.2AgencyTotalAppropriatedFunds 13.3


NetChangeFY2019

BYEXPENDITUREOBJECT

24OfficeofAdministrativeHearings FY2019ExecutiveBudget


NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 565.0 564.6 564.60.0EREAmount 195.9 215.5 215.50.0OtherOperatingExpenses 99.6 90.8 104.113.3



NetChangeFY2019

BYAPPROPRIATEDFUND

GeneralFund 860.5 870.9 884.213.3





NetChangeFY2019

IGAandISAFund 828.1 812.6 812.60.0

828.1 812.6 812.6AgencyTotalNonAppropriatedFunds 0.0


AgencyOperatingDetail OfficeofAdministrativeHearings25

http://www.azospb.gov/Documents/2018/FY%202019%20S%20&%20U%20of%20State%20Funds%20Book.pdfhttp://www.azospb.gov/Documents/2018/FY%202019%20S%20&%20U%20of%20State%20Funds%20Book.pdf

AfricanAmericanAffairsTheCommissionofAfricanAmericanAffairsadvisesstateandfederalagenciesonpolicies,legislationandrulesthataffecttheAfricanAmericanCommunity.TheCommissiondevelops,reviewsandrecommendspoliciesthataffecttheareasofhealthandhumanservices,housing,education,employment,businessformationanddevelopment,publicaccommodationsandcontractingandprocedurestoensurethatprogramsaffectingAfricanAmericansareeffectivelyimplementedwithinputfrommembersoftheAfricanAmericancommunity.

Linktothe AGENCY'SWEBSITE http://azcaaa.az.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

GeneralFund 119.9 125.8 125.80.0NonAppropriatedFunds 7.8 15.0 15.00.0

127.7 140.8 140.8AgencyTotal 0.0


StateAppropriations


NetChangeFY2019

BYPROGRAM

AfricanAmericanAffairsCommission 119.9 125.8 125.80.0



NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 83.1 83.1 83.10.0EREAmount 24.9 24.9 24.90.0Prof.AndOutsideServices 0.3 0.0 0.00.0TravelInState 0.0 3.2 3.20.0OtherOperatingExpenses 11.6 14.6 14.60.0



NetChangeFY2019

BYAPPROPRIATEDFUND

GeneralFund 119.9 125.8 125.80.0



26AfricanAmericanAffairs FY2019ExecutiveBudget




NetChangeFY2019

CommissionOfAfricanAmericanAffairs 7.8 15.0 15.00.0

7.8 15.0 15.0AgencyTotalNonAppropriatedFunds 0.0


AgencyOperatingDetail AfricanAmericanAffairs27


DepartmentofAgricultureTheArizonaDepartmentofAgriculture,oftenincooperationwithfederalentities,regulatesfacetsoftheagricultureindustrytopromotethegeneralwelfareoftheagriculturalcommunity,informconsumers,andprotectpublichealthandsafety.TheDepartmentconductsfoodqualityandsafetyinspectionsofmeat,dairy,vegetable,citrus,fruit,andeggproducts;registers,licensesandsamplesfeed,fertilizer,seedandpesticidecompaniesorproducts;regulatesagriculturalpesticideuse;trainsandcertifiespesticideapplicators;protectsnativeplants;guardsagainsttherisksassociatedwiththeentry,establishmentandspreadofplantpests,diseasesandnoxiousweeds;licensesproducedealersandshippers;provideseducationonpesticidesafetyandairquality;providesforensic,productquality,foodsafetyandotheragriculturallaboratoryanalysis,identification,certificationandtrainingservices;providesadministrativesupportforthecitrus,lettuceandgraincommoditycouncilsandtheAgriculturalEmploymentRelationsBoard;inspects,testsandlicensescommercialweighingandmeasuringdevices;andregulatespestmanagementandpestmanagementservices.

Linktothe AGENCY'SWEBSITE http://www.azda.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

GeneralFund 9,045.2 9,563.7 8,887.1(676.6)OtherAppropriatedFunds 1,369.7 1,716.5 1,816.5100.0NonAppropriatedFunds 17,281.4 19,329.5 19,329.50.0

27,696.3 30,609.7 30,033.1AgencyTotal (576.6)


EfficiencySavings

TheExecutiveBudgetincludesdecreaseinfundingasaresultofefficiencysavingsidentifiedbytheDepartmentinitsoperatingbudget.

FY2019Funding

(766.1)GeneralFund

(766.1)IssueTotal

LivestockInspectorsSalaryIncrease

TheExecutiveBudgetincludesanincreaseinfundingfora22%payincreasetoretainLivestockOfficersandInspectors.

TheworkofLivestockInspectorsandOfficersservesacriticalroleinthemovementofinterstatelivestockcommerce.Inspectorsandofficersareresponsibleformonitoringthehealthandownershipoflivestockthroughonsitereviewsatranches,feedlots,dairies,exhibitions,andauctionmarkets.Theyalsoinvestigatefraudandanimalabuse.OfficersarePoliceOfficerStandardandTraining(POST)certifiedandcanenforcelawsrelatedtolivestockwhennecessary.

Dueinlargeparttobelowmarketcompensationrates,theDepartmentfacesahighlevelofturnoveramongLivestockInspectorsandOfficers.InFY2017,InspectorandOfficerturnoverrateswere21%and29%,respectively.

28DepartmentofAgriculture FY2019ExecutiveBudget

FY2019Funding

100.0GeneralFund

20.0LivestockCustodyFund

80.0AgricultureDesignated/DonationsFund

200.0IssueTotal

SaltRiverHorseManagement

TheExecutiveBudgetincludesanincreaseinfundingand1.0FTEliaisonpositiontomanagetheSaltRiverhorseherd.

OnMay11,2016,GovernorDuceysignedLaws2016,Chapter136,toprotecttheSaltRiverhorseherdfrombeingharassed,injured,orkilled.Inordertobecomeeffective,thislawdirectstheDepartmentofAgriculture(DA)toenterintoanintergovernmentalagreement(IGA)withtheUnitedStatesForestService(USFS)toimplementChapter136andaddressanyissuesrelatingtotheSaltRiverhorseherd.OnDecember28,2017bothpartiesagreedtoanIGAregardingthemanagementoftheSaltRiverhorses.AprovisionoftheagreementrequestsDAtoemployaSaltRiverHorseLiaison,whichwillbejointlyfundedbytheDAandtheUSFS.ThispositionwillserveasaliaisonforDAandcollaboratewithcommunitystakeholdersandUSFStocreateandimplementamanagementplanfortheSaltRiverhorses.

FY2019Funding

50.5GeneralFund

50.5IssueTotal

ExecutiveBudgetBaselineChanges

RemovalofOnetimeFunding

TheExecutiveBudgetincludesadecreaseinonetimefundingincludedinLaws2016,Chapter280.

FY2019Funding

(61.0)GeneralFund

(61.0)IssueTotal

ExecutiveBudgetSupplementalChanges

EfficiencySavings

TheExecutiveBudgetincludesdecreaseinfundingasaresultofefficiencysavingsidentifiedbytheDepartmentinitsoperatingbudget.

FY2018Funding

(125.0)GeneralFund

(125.0)IssueTotal

AgencyOperatingDetail DepartmentofAgriculture29


SaltRiverHorseManagement

TheExecutiveBudgetincludessupplementalfundingand1.0FTEliaisonpositiontomanagetheSaltRiverhorseherd.Thissupplementalfundingincludesonetimefundingforavehicleandequipmentassociatedwiththisposition.

OnMay11,2016,GovernorDuceysignedLaws2016,Chapter136,toprotecttheSaltRiverhorseherdfrombeingharassed,injured,orkilled.Inordertobecomeeffective,thislawdirectstheDepartmentofAgriculture(DA)toenterintoanintergovernmentalagreement(IGA)withtheUnitedStatesForestService(USFS)toimplementChapter136andaddressanyissuesrelatingtotheSaltRiverhorseherd.OnDecember28,2017bothpartiesagreedtoanIGAregardingthemanagementoftheSaltRiverhorses.AprovisionoftheagreementrequestsDAtoemployaSaltRiverHorseLiaison,whichwillbejointlyfundedbytheDAandtheUSFS.ThispositionwillserveasaliaisonforDAandcollaboratewithcommunitystakeholdersandUSFStocreateandimplementamanagementplanfortheSaltRiverhorses.

FY2018Funding

40.3GeneralFund

40.3IssueTotal

PerformanceMeasures


Percentofmeatandpoultryproducttestsincompliancewithbacteria,drugandchemicalresiduerequirements

100 99 100 100


0

50,000

100,000

150,000

200,000

250,000


LicensesIssued

ThenumberoflicensesandpermitsissuedforFY2003andFY2004wasnotavailablefromtheDepartment.


AgencyExpenditures

05,00010,00015,00020,00025,00030,00035,000


Al l Funds GF

(in$1,000s)

StateAppropriations


NetChangeFY2019

BYPROGRAM

AdministrativeServices 1,133.9 1,147.7 692.7(455.0)AgriculturalConsultationandTraining 263.5 265.8 230.8(35.0)AnimalDisease,OwnershipandWelfareProtection

1,999.5 2,295.5 2,546.0250.5

FoodSafetyandQualityAssurance 1,282.5 1,396.0 1,335.0(61.0)PestExclusionandManagement 2,469.3 2,700.7 2,700.70.0PesticideComplianceandWorkersafety 119.2 183.2 176.2(7.0)StateAgriculturalLaboratory 914.6 927.6 927.60.0WeightsandMeasures 2,232.4 2,363.7 2,094.6(269.1)

10,414.9 11,280.2 10,703.6AgencyTotalAppropriatedFunds (576.6)


NetChangeFY2019

BYEXPENDITUREOBJECT

PersonalServices 5,358.5 6,215.4 6,096.1(119.3)EREAmount 2,277.7 2,715.7 2,578.3(137.4)Prof.AndOutsideServices 455.9 270.0 220.7(49.3)TravelInState 561.4 633.8 614.8(19.0)TravelOutofState 48.9 64.5 64.50.0AidtoOthers 0.0 0.0 (1.7)(1.7)OtherOperatingExpenses 1,322.4 1,355.1 1,105.2(249.9)Equipment 190.2 25.7 25.70.0TransfersOut 199.9 0.0 0.00.0



NetChangeFY2019

BYAPPROPRIATEDFUND

GeneralFund 9,045.2 9,563.7 8,887.1(676.6)AgricultureDesignated/DonationsFund 0.0 0.0 80.080.0



NetChangeFY2019

BYAPPROPRIATEDFUND

AirQualityFund 1,369.7 1,441.5 1,441.50.0LivestockCustodyFund 0.0 0.0 20.020.0NuclearEmergencyManagementFund 0.0 275.0 275.00.0



SpecialLineAppropriations


NetChangeFY2019

AgriculturalConsultationandTrainingPariMutuel

128.4 128.5 128.50.0

AgriculturalEmploymentRelationsBoard 23.3 23.3 23.30.0AnimalDamageControl 50.4 65.0 65.00.0RedImportedFireAnt 23.2 23.2 23.20.0






NetChangeFY2019

AgriculturalConsulting/TrainingProgramFund

0.2 11.7 11.70.0

AgriculturalDangerousPlants 94.4 127.2 127.20.0AgricultureAdministrativeSupport 40.8 40.3 40.30.0AgricultureCommercialFeed 252.8 278.5 278.50.0AgricultureDesignated/DonationsFund 476.5 843.6 843.60.0AgricultureSeedLaw 54.0 61.4 61.40.0AquacultureFund 0.0 6.2 6.20.0ArizonaFederal/StateInspectionFund 2,779.6 3,090.5 3,090.50.0AZCitrusResearchCouncil 50.8 66.8 66.80.0AZIcebergLettuceResearchFund 98.5 100.0 100.00.0AZProtectedNativePlant 78.9 83.8 83.80.0BeefCouncilFund 301.8 300.0 300.00.0Citrus,Fruit,&VegetableRevolving 332.5 395.0 395.00.0CommodityPromotionFund 10.4 9.0 9.00.0CottonResearchandProtectionCouncilFund

2,357.0 3,339.0 3,339.00.0

EggInspectionFund 1,455.1 1,623.4 1,623.40.0FederalGrant 5,238.1 5,447.8 5,447.80.0FertilizerMaterialsFund 254.6 321.9 321.90.0GrainCouncil 150.3 144.9 144.90.0IGAandISABetweenStateAgencies 56.7 0.0 0.00.0IndirectCostRecoveryFund 273.0 313.3 313.30.0LeafyGreenMarketingCommittee 399.0 405.3 405.30.0LivestockandCropConservationFund 481.3 232.5 232.50.0LivestockCustodyFund 61.5 153.1 153.10.0NuclearEmergencyManagementFund 178.2 0.0 0.00.0PestManagementTrustFund 1,492.3 1,600.0 1,600.00.0PesticideFund 313.1 334.3 334.30.0

17,281.4 19,329.5 19,329.5AgencyTotalNonAppropriatedFunds 0.0


FederalFundsExpenditures

Actual Exp.Plan Exp.PlanFY2017 FY2018 FY2019

5,238.1 5,447.8 5,447.8AgencyTotal

Linktothe ALLFEDERALGRANTSFORTHISAGENCYAREDISPLAYEDINTHEFEDERALFUNDSREPORT

ThesearetheFederalExpendituresreportedbytheagenciesand,inmostcases,areincludedintheAppropriatedorNonAppropriatedFundsexpenditureslistedabove.

TheExecutiveBudgetprovidesalumpsumappropriationtotheagencywithspeciallines.


http://www.azospb.gov/Documents/2018/FY%202019%20S%20&%20U%20of%20State%20Funds%20Book.pdfhttp://www.azospb.gov/Documents/2018/FY%202019%20Federal%20Funds%20Report.pdf

ArizonaHealthCareCostContainmentSystemArizonaHealthCareCostContainmentSystem(AHCCCS),theState'sMedicaidAgency,usesfederal,stateandcountyfundstoprovidehealthcarecoveragetotheState'sacuteandlongtermcareMedicaidpopulationandlowincomegroups.Since1982,whenitbecamethefirststatewideMedicaidmanagedcaresysteminthenation,AHCCCShasoperatedinaccordancewithafederalResearchandDemonstrationWaiverthatallowsforatotalmanagedcaremodelofservicedelivery.

Unlikeprogramsinotherstates,thatrelysolelyonfeeforservicereimbursement,AHCCCSmakesprospectivecapitationpaymentstocontractedhealthplansresponsibleforthedeliveryofcare.Theresultisamanagedcaresystemthatmainstreamsrecipients,allowsthemtoselecttheirproviders,andencouragesqualitycosteffectivecareandpreventiveservices.

TheAHCCCSAdministrationisresponsibleforplanning,developing,implementing,andadministeringthehealthcareprogramsforlowincomeArizonans.Specifically,theAHCCCSAdministrationprovidesdirectionandoversightofoperationsrelatedtoeligibility,enrollment,qualityofcare,contractedhealthplansandproviders,andprocurementofcontractedservices.

Majormedicalprogramsincludeacutecare,longtermcare,andbehavioralhealthservices.TheAHCCCSAdministrationdetermineseligibilityfortheArizonaLongTermCareSystem(ALTCS),Children'sHealthInsuranceProgram(KidsCare),QualifiedMedicareBeneficiaries,andotherSupplementalSecurityIncome(SSI)relatedMedicalAssistanceOnlyprograms.FederalfundingthroughTitleXIXandTitleXXIoftheSocialSecurityActisprovidedtoAHCCCSbytheCentersforMedicareandMedicaidServices(CMS),afederalagencywithintheU.S.DepartmentofHealthandHumanServices.

Linktothe AGENCY'SWEBSITE http://www.azahcccs.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2019

GeneralFund 1,693,816.6 1,775,264.1 1,792,199.816,935.7OtherAppropriatedFunds 234,232.0 361,527.4 356,427.6(5,099.8)NonAppropriatedFunds 10,081,004.6 11,199,732.1 12,108,846.5909,114.4

12,009,053.1 13,336,523.6 14,257,473.9AgencyTotal 920,950.3


TransferDDCRSfundingtoDES

TheExecutiveBudgetincludesadecreaseinAHCCCSintheGeneralFundandnonappropriatedAHCCCSfundandcommensurateincreasesintheDepartmentofEconomicSecuritybudgettobetterintegratethedelivery,management,andfinancingofhealthcare.

Arizona'sdevelopmentallydisabled(DD)childrenwhohavechronicanddisablingconditionsandwhoneedtheenhancedlevelofcareprovidedbytheChildrensRehabilitativeServices(CRS)programreceivetheirDDtherapiesthroughDepartmentofEconomicSecurity(DES)contractors.TheirCRSandbehavioralhealthservicesareprovidedthroughacontractoverseenbyAHCCCS.Similarly,fundingforDDisbudgetedinDESandCRS,andfundingforbehavioralhealthservicesisbudgetedinAHCCCS.

Aspartofastatewideefforttobetterintegratethedelivery,management,andfinancingofhealthcare,the

34ArizonaHealthCareCostContainmentSystem FY2019ExecutiveBudget

ExecutiveistransferringfromAHCCCStoDESthecontractmanagementforCRSandbehavioralhealthservicesforDDmembers,effectiveOctober1,2018.TheExecutivebudgettransfersfromAHCCCStoDESthreequartersoftheFY2019budgetforDDCRSandbehavioralhealthservices,whichwillrequireanannualizationintheFY2020budgettomovethelastquarterofthisfundingtoDES.Specifically,theExecutiveincludesareductionof($15.2million)ofGeneralFundinAHCCCSandacorrespondingincreaseofthesameamountintheDESbudget.TheExecutivebudgetalsotransfersthenonappropriatedfederalmatchof($35,177,400)fromAHCCCStoDES.

Thisbudgetwillimprovethecoordinationofmemberservicesbygivingoneagency(DES)bothoversightandfundingforallservicesforDDmembersreceivingCRSservices.

FY2019Funding



AIHPBaseModification

TheExecutiveBudgetincludesadecreaseinfundingfortheadministrativecostofbehavioralhealthservicesforNativeAmericans,duetosavingsfromtheintegrationofbehavioralandphysicalhealthcareforthosemembers.

NativeAmericansmaychoosetoreceivetheirphysicalhealthcarethrough(a)theAHCCCSAmericanIndianHealthProgram(AIHP),(b)directfeeforservicepaymentstoproviders,or(c)anAHCCCScontractedhealthplan.TheirbehavioralhealthservicesareprovidedthroughaRegionalBehavioralHealthAuthority(RBHA)or,formemberswhomeetcertaincriteriaandchoosethisoption,atribalRBHA.

Tofurtherthegoalofprovidingbettermemberservicesthroughintegratedcare,AHCCCSisofferingNativeAmericanswhoreceivetheiracutecarethroughtheAIHPtheoptionofreceivingintegratedbehavioralandacutecarethroughtheAIHP.

RBHAskeepa9%administrativeallotmentandpassthroughtoAHCCCSanadditional2%forpremiumtaxliability,whiletheAIHPwouldpayfortheadministrativecostsformembers'behavioralhealthservicesfromitsfeeforserviceadministrationbudget.TheRBHAsavingsamounttoabout($2.5million)intotalfund,ofwhich($545,300)isGeneralFund.Ofthissavings,AHCCCSwouldreallocate$1milliontotalfund,whichincludes$347,900GeneralFund,for12.0FTEpositionstoadministertheintegratedprogram.ThenetresultisaGeneralFundsavingsof($197,400).

FY2019Funding

(197.6)GeneralFund

(197.6)IssueTotal

AgencyOperatingDetail ArizonaHealthCareCostContainmentSystem35

ConsolidateAgencySpecialLineItems

TheExecutiveBudgetconsolidatestheAHCCCSbehavioralhealthservicesandchildren'srehabilitativeservicesspeciallineitemsintotheAHCCCSacutespeciallineitems.

Formemberswithcomplicatedmedicalneeds,thetraditionaldeliveryandfundingofcareintheArizonaMedicaidprogramhasbeensomewhatfragmented.Forexample,achildwithmultipledisablingconditionsandbehavioralhealthneedswouldreceiverehabilitativetherapiesunderacontractorwiththeChildren'sRehabilitativeServices(CRS)program;acutecareneedswouldbeoverseenbyanAHCCCShealthplan;andbehavioralhealthwouldbeprovidedthroughtheRegionalBehavioralHealthAuthority(RBHA)contractor.

Aspartofitsefforttoimprovethecoordinationofcare,onNovember2,2017,AHCCCSissuedarequestforproposalforwhatittermstheAHCCCSCompleteCare(ACC)contracttoprovideintegratedphysical,behavioral,andchildren'srehabilitativeservicestoitsmembers,startingOctober1,2018.Accordingly,theExecutiveconsolidatesAHCCCSbehavioralhealthandchildren'srehabilitativeservicesspeciallineitemsintothecorrespondingAHCCCSacutespeciallineitems.

FY2019Funding