HIGHLIGHTS OF THE 52ND LEGISLATURE

Budget

After years of papering over imbalanced state budgets, the new Governor and Republican Leadership in the Legislature committed to achieving a structurally balanced budget. A budget that spends only those monies that are available provides the state with fiscal stability, improves credit ratings, and establishes a better climate for businesses looking to expand.

As our state economy slowly continues to improve after the recession, there is a temptation to immediately expand state services. By holding to a conservative approach as revenues increase, Arizona will be in a stronger position to prioritize and allocate available resources to help the most crucial areas of our state.

• Structurally Balanced Budget by FY 2018:

• $717 million projected shortfall in FY 2015

• $257 million projected shortfall in FY 2016

• $125 million projected shortfall in FY 2017

• $33 million projected positive structural balance in FY 2018.

Even as difficult decisions were made to produce a structurally balanced budget, leaders made sure K-12 education was not harmed. In fact, K-12 spending has a net increase of $105 million General Fund spending from FY 2015 to FY 2016. That growth is significant given that Arizona was facing a $1 billion deficit going into budget discussions.

• K-12 – Overall Total K-12 Spending Increased by $105 million:

• $91 million to fully fund formula increases

• $85 million increase in K-12 inflation funding

• $74 million for additional K-12 inflation funding

• $0.5 million for Teach For America

• $1.0 million for JTED Soft Capital