By Asha Devineni

Legislative Update Week of April 30

The 53rd Legislature adjourned a little after midnight on Friday, May 4. The Governor now has 10 days to take final action on the remaining bills.

Recap of the past week:

On Monday (5/1) afternoon there was an open caucus meeting that consisted of a JLBC presentation outlining the proposed budget as well as the BRBs. The budget bills were introduced late that afternoon and first read.

On Tuesday (5/1) both chambers held an Appropriations Committee to hear all of the budget bills.

On Wednesday (5/2), the House Appropriations Committee reconvened to finish the last of the budget bills. After this both chambers went to caucus for the budget bills. The House and Senate started Committee of the Whole around 8pm Wednesday night and continued until the bills were Third Read. The House finished with budget bills around 9am on Thursday and the Senate finished around 5am.

Below are brief summaries of the major budget bills as well as links to the summaries for further details.

HB2665 general appropriations act; 2018-2019
Amendments: https://apps.azleg.gov/BillStatus/GetDocumentPdf/462674

  • The feed bill includes provisions regarding the teachers pay increase such as the legislative intent that the increase of $273,706,100 in general funding monies for basic state aid in FY2019 be used for teacher salary increases.
    • It appropriates $164,700,000 from the GF in FY2020 to ADE for Basic State Aid.
    • It appropriates $289,200,000 from the GF in 2021 to ADE for Basic State Aid.
      • During FY2021 there will be a one time $50,000,000 increase in funding from the Classroom Site Fund to increase teacher salaries.
    • The above provisions require the appropriation to be used to fund an increase in the base level for teacher salary increase.
  • It appropriates $8 million from the GF in FY2019 to the universities for capital improvement and operation expenditures in further specified amounts.
  • There are several appropriations to AHCCCS that include a 2.5% provider rate increase, skilled nursing provider rate increase and behavioral health services in schools.
  • Directs appropriations and prior year balances for ASU’s School of Civic and Economic Thought and Leadership and UA’s Center for the Philosophy of Freedom be deposited in separate accounts from other university funding.

HB2663/SB1521 K-12 education; budget reconciliation; 2018-2019
Amendments: https://apps.azleg.gov/BillStatus/GetDocumentPdf/462639

  • Increases the Base Level for FY 2019 from $3,683.27 to $3,960.07.
  • Continues to declare that it is the intent of the Governor and Legislature that school districts increase the total percentage of classroom spending over the previous year’s percentages in instruction, student support and instructional support.
  • Directs ADE to reduce the amount of CAA by $13,628,800 that otherwise would be apportioned to charter schools for FY 2019 and requires budget limits to be reduced accordingly.
  • Continues to direct ADE to reduce DAA for school districts that are not eligible to receive Basic State Aid funding by the amount that would be reduced if the district was eligible for Basic State Aid funding and reduce the school district’s budget limits accordingly.
    • Establishes a schedule to reduce the suspension of DAA to $0.00 in FY 2023
  • Requires school districts to prominently post on their websites a copy of the profile page displaying classroom spending percentages from the Auditor General’s Classroom Spending Report.
  • Includes financial expectations in charter school performance frameworks and instructs charter sponsor annual reports to include financial performance of the charter portfolio

HB2662 higher education; budget reconciliation; 2018-2019
Amendments: https://apps.azleg.gov/BillStatus/GetDocumentPdf/462645

  • Outlines information that must be included in a report on commercial projects.
  • Continues the Foster Care Tuition Waiver Scholarship Program.
  • Asserts that the annual Capital Improvement Plan reports must include information about ongoing or recently completed land acquisitions and capital projects of an agency’s component units, in addition to acquisitions and projects of an agency
  • Requires a community college course offered for credit to meet requirements adopted pursuant to district governing board policies, including national standardized examinations and credit by evaluation or exam.
  • Prohibits a community college from offering a course with a prerequisite for enrollment that requires a student to be a member of a labor organization, trade organization or trade guild to participate in an industry apprenticeship program.

HB2659/SB1526 health; budget reconciliation; 2018-2019
Amendments: https://apps.azleg.gov/BillStatus/GetDocumentPdf/462605

  • Requires the Arizona Department of Health Services (ADHS) to deposit the first $300,000 of all radiation related fees for licensure and certification collected each FY into the GF.
  • Repeals the Radiation Regulatory Fee Fund and the State Radiologic Technologist Fund.
  • Permits the Director for ADHS to raise fees in FY 2019 for services provided by the Bureau of Radiation Control.
  • Stipulates that the reimbursement level for behavioral health services provided at an inpatient facility after July 1, 2018 is capped at the fee-for-service schedule adopted by AHCCCS, multiplied by 90%, unless the recognized inpatient facility and a contractor or RBHA enter into a contract.
  • Requires AHCCCS to transfer to the counties the portion necessary to comply with the Patient Protection and Affordable Care Act regarding the counties’ proportional share of the state’s contributions by December 31, 2019.
  • Requires AHCCCS to submit a report to the Director of JLBC by January 2, 2019 on the availability of inpatient psychiatric treatment for adults, children and adolescents who receive services from RBHAs.
  • Sets the annual DSH Payment amount for the District in FY 2019 in the amount of $113,818,500.
  • Sets the annual county ALTCS contributions for FY 2019 at $268,554,800

Thank you for following the legislative session with us; until  next time!