Arizona state budget (2010-2011)

Note: This article was last updated in 2011. Click here for more recent information on state budgets and finances.

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government online.

2011 State spending & deficit in billions

Total spending	Healthcare	Education	Protection	Economic security	Other
$8.4	$1.7	$4.4	$1.1	$.67	$.6

2011 Local spending & deficit in billions

Total spending	Pension	Healthcare	Education	Welfare	Protection	Transport	Deficit
$38.8	$0.3	$1.3	$10.6	$0.8	$4.5	$3.3	$50.2

At the end of FY2011, Arizona's revenues had increased 11.6 percent over FY2010. This increase in revenue was separate from the temporary 1-cent-per-dollar increase in the state sales tax that was in effect at the time. That increase generated $873 million, which the state accounted for separately since it was slated to expire in two years. The money generated at the end of FY2011 was in line with projections made in spring 2010.

At the conclusion of FY2011 budget officials determined that the FY2011 deficit was close to $32 million.

Budget background

See also: Arizona state budget and finances

The Governor releases a budget proposal shortly after each session of the Legislature convenes (2nd Monday in January). The Joint Legislative Committee (JLBC) then releases its estimate of baseline spending. The JLBC:

• 8 members from each house.
• Chairmanship rotates between 2 Appropriations Committee Chairmen.
• Committee meets monthly – had 188 statutory responsibilities.
• Publishes a monthly update on revenue collections and other fiscal issues.
• Especially during the interim between sessions, the JLBC provides legislative oversight of state fiscal issues.
• The Joint Committee on Capital Review was comparable committee for capital issues.

State Constitution

While Arizona had a balanced budget provision, the Arizona Constitution allows shortfalls to carry over to the next fiscal year.

Article 9, sections 4 and 5 read:

“The fiscal year shall commence on the first day of July in each year. An accurate statement of the receipts and expenditures of the public money shall be published annually, in such manner as shall be provided by law. Whenever the expenses of any fiscal year shall exceed the income, the legislature may provide for levying a tax for the ensuing fiscal year sufficient, with other sources of income, to pay the deficiency, as well as the estimated expenses of the ensuing fiscal year.”

“The state may contract debts to supply the casual deficits or failures in revenues, or to meet expenses not otherwise provided for; but the aggregate amount of such debts, direct and contingent, whether contracted by virtue of one or more laws, or at different periods of time, shall never exceed the sum of three hundred and fifty thousand dollars; and the money arising from the creation of such debts shall be applied to the purpose for which it was obtained or to repay the debts so contracted, and to no other purpose. In addition to the above limited power to contract debts the state may borrow money to repel invasion, suppress insurrection, or defend the state in time of war; but the money thus raised shall be applied exclusively to the object for which the loan shall had been authorized or to the repayment of the debt thereby created. No money shall be paid out of the state treasury, except in the manner provided by law.”

Accounting principles

The Joint Legislative Audit Committee, which oversees all audit functions of the Arizona Legislature, provides direction for the Auditor General’s Office. Subject to approval by a majority vote of both legislative houses, the Committee also appoints the Auditor General for a 5-year renewable term. The Auditor General’s Office publishes their audits and must:

• ascertain whether public entities were making wise use of their resources—public money, personnel, property, equipment, and space;
• determine whether public entities were complying with applicable laws, regulations, and governmental accounting and financial and reporting standards;
• define standards and establish procedures for accounting and budgeting, as the Legislature requires; and
• provide technical assistance to state and local governmental entities.

Arizona Revised Statutes §41-1279 established the Joint Legislative Audit Committee (JLAC). Among other duties, it was charged to:

• Oversee all audit functions of the legislature and state agencies including sunset, performance, special and financial audits, special research requests and the preparation and introduction of legislation resulting from audit report findings.
• Appoint an auditor general subject to approval by a concurrent resolution of the legislature and direct the auditor general to perform all sunset, performance, special and financial audits and investigations.
• Require state agencies to comply with findings and directions of the committee regarding sunset, performance, special and financial audits.

Credit Ratings

Credit Rating	Fitch	Moody's	S&P
Arizona	NR	Aa1	AA+

See also

• Arizona state budget and finances