Department of Emergency and Military Affairs FY 2019 FY 2020 FY 2021

ACTUAL ESTIMATE BASELINE

PROGRAM BUDGET Administration 1,778,100 1,887,600 1,887,600 Emergency Management 7,694,600 7,732,900 7,732,900 Military Affairs 3,040,600 4,039,800 4,039,800 AGENCY TOTAL 12,513,300 13,660,300 13,660,300

OPERATING BUDGET Full Time Equivalent Positions 69.6 69.6 69.6 1/2/ Personal Services 1,779,300 1,929,200 1,929,200 Employee Related Expenditures 576,000 609,900 609,900 Professional and Outside Services 37,100 6,000 6,000 Travel - In State 58,200 5,000 5,000 Travel - Out of State 19,100 60,000 60,000 Other Operating Expenditures 1,246,700 1,228,200 1,228,200 Equipment 43,200 30,000 30,000

OPERATING SUBTOTAL 3,759,600 3,868,300 3,868,300

SPECIAL LINE ITEMS Emergency Management Matching Funds 1,503,800 1,543,300 1,543,300 Governor's Emergency Fund 4,000,000 4,000,000 4,000,000 3/ Nuclear Emergency Management Program 1,459,900 1,458,700 1,506,100 4/5/ Military Airport Planning 90,000 90,000 90,000 6/ National Guard Matching Funds 1,700,000 1,700,000 1,700,000 7/ National Guard Tuition Reimbursement 0 1,000,000 1,000,000

AGENCY TOTAL 12,513,300 13,660,300 13,707,700 8/

FUND SOURCES General Fund 11,053,400 12,201,600 12,201,600 Other Appropriated Funds Nuclear Emergency Management Fund 1,459,900 1,458,700 1,506,100 SUBTOTAL - Other Appropriated Funds 1,459,900 1,458,700 1,506,100 SUBTOTAL - Appropriated Funds 12,513,300 13,660,300 13,707,700

Other Non-Appropriated Funds 108,400 470,800 2,471,800 Federal Funds 66,106,500 76,465,600 65,562,300

TOTAL - ALL SOURCES 78,728,200 90,596,700 81,741,800

AGENCY DESCRIPTION — The department's Emergency Management Program prepares and coordinates emergency response plans for the state. The Military Affairs Program operates the National Guard and the Military Installation Fund Program.

FOOTNOTES 1/ Includes 5.5 FTE Positions in FY 2020 and FY 2021 appropriated by Laws 2019, Chapter 24 and 1 FTE Position appropriated by A.R.S. § 26-263. 2/ Includes 1 GF and 5.5 OF FTE Positions funded from Special Line Items in FY 2021. 3/ Includes expenditures authorized by A.R.S. § 35-192, which states that up to $4,000,000 may be spent on disaster prevention and mitigation. Because this appropriation is in permanent statute, it is not included in the General Appropriation Act. 4/ Laws 2019, Chapter 24 appropriated $1,458,753 and 5.5 FTE Positions in FY 2020 and $1,506,116 and 5.5 FTE Positions in FY 2021 from the Nuclear Emergency Management Fund to DEMA.

FY 2021 Baseline 194 Department of Emergency and Military Affairs 5/ Pursuant to A.R.S § 26-306.02, the Nuclear Emergency Management Program appropriation is exempt from the provisions of A.R.S. § 35-190, relating to lapsing of appropriation; any unexpended monies, however, shall be used to reduce the assessment and appropriation in future years. 6/ A.R.S. § 26-263 annually appropriates $90,000 and 1 FTE Position from the General Fund for the administration of the Military Installation Fund. Because this appropriation is in permanent statute, it is not included in the General Appropriation Act. 7/ The $1,700,000 National Guard Matching Funds appropriation is exempt from the provisions of A.R.S. § 35-190, relating to lapsing of appropriations, except that all FY 2021 monies remaining unexpended and unencumbered on December 31, 2021 revert to the State General Fund. (General Appropriation Act footnote) 8/ General Appropriation Act funds are appropriated as a Lump Sum by Program with Special Line Items by Agency.

Operating Budget annually from the General Fund for disaster prevention and mitigation without specific appropriation authority. The Baseline includes $3,868,300 and 63.1 FTE Positions Monies in this line item, therefore, are not included in the from the General Fund in FY 2021 for the operating General Appropriation Act. budget. These amounts are unchanged from FY 2020. Nuclear Emergency Management Program Emergency Management Matching Funds The Baseline includes $1,506,100 and 5.5 FTE Positions The Baseline includes $1,543,300 from the General Fund from the Nuclear Emergency Management Fund (NEMF) in FY 2021 for Emergency Management Matching Funds. in FY 2021 for the Nuclear Emergency Management These amounts are unchanged from FY 2020. Program line item. FY 2021 adjustments are as follows:

The line item provides funding for the required 1:1 match NEMF Increase for the Federal Emergency Management Performance The Baseline includes an increase of $47,363 from NEMF Grant (EMPG) not covered with existing DEMA resources. in FY 2021 for the NEMF line item. EMPG monies are allocated to DEMA who then either expends them or passes monies on to other state, county, Laws 2019, Chapter 24 appropriates $1,458,753 and 5.5 and municipal agencies to help provide planning, training, FTE Positions from NEMF in FY 2020 and $1,506,116 and and other preparation for natural hazards and 5.5 FTE Positions from NEMF in FY 2021. As a result, emergencies. In FY 2019, DEMA was awarded $7,178,600 these monies do not appear in the General Appropriation by the federal government. Act. The Department of Health Services, the Department of Emergency and Military Affairs (DEMA), and the In FY 2019, the state match for these monies was funded Department of Agriculture received monies from Chapter by $780,900 from the General Fund operating budget 24. The NEMF appropriation amounts for FY 2019-2021 appropriation, $1,472,400 from the Emergency are displayed in Table 1. (Please see the Department of Management Matching Funds line item appropriation, Agriculture and the Department of Health Services for $101,700 in In-Kind Assistance, $766,500 of the Nuclear more information.) Emergency Management Fund appropriation, and a $4,057,100 match from the local government sub- The Legislature is required to biennially assess a fee recipients. against each group of public service and municipal corporations operating the Palo Verde Nuclear Generating In FY 2020, DEMA expects to receive $7,795,600 in EMPG Station. The fee is set at a level to offset the NEMF funds. appropriation.

Monies in the NEMF are used for the development and Governor’s Emergency Fund maintenance of a state plan for off-site responses to an emergency caused by an accident at a commercial nuclear The Baseline includes $4,000,000 from the General Fund generating station. NEMF monies are also used to in FY 2021 for the Governor’s Emergency Fund. This provide for the equipment, personnel, facilities, training, amount is unchanged from FY 2020. and testing necessary to comply with federally prescribed criteria. Under A.R.S. § 35-192, the Governor may, through emergency declarations, authorize up to $4,000,000

FY 2021 Baseline 195 Department of Emergency and Military Affairs Table 1

Nuclear Emergency Management Fund

FY 2019 FY 2020 FY 2021 Agency FTEs Approp. FTEs Approp. FTEs Approp. Emergency and Military Affairs 1/ 5.5 $1,461,602 5.5 $1,458,753 5.5 $1,506,116 Health Services 5.5 789,663 5.5 789,663 5.5 789,663 Agriculture 2.88 275,012 2.88 301,376 2.88 280,512 Total 13.88 $2,526,277 13.88 $2,549,792 13.88 $2,576,291 ______1/ The Emergency and Military Affairs appropriation includes the appropriations for the Maricopa County Department of Emergency Management and the City of Buckeye.

Military Airport Planning A.R.S. § 35-190, relating to lapsing of appropriations, except that all FY 2021 monies remaining unexpended The Baseline includes $90,000 and 1 FTE Position from the and unencumbered on December 31, 2021 revert to the General Fund in FY 2021 for Military Airport Planning. state General Fund. These amounts are unchanged from FY 2020. In FY 2019, DEMA received $40,857,300 in National Guard A.R.S. § 26-263 annually appropriates $90,000 and 1 FTE Military Operations and Maintenance Projects monies. Of Position to the department and $85,000 to the Attorney this amount, $3,130,200 required a 50% match, or General for administration of the Military Installation $1,565,100; $2,742,100 required a 25% match, or Fund. Since these monies are appropriated in statute, $685,500; and $2,705,200 required a 5.5% match, or they do not appear in the General Appropriation Act. $148,800, for a total required match of $2,399,400.

The Military Installation Fund itself currently has no In FY 2019, DEMA utilized $1,714,600 from the National ongoing revenue source. At the end of FY 2019, the fund Guard Matching Funds appropriations (including monies had an unreserved balance of $488,800. from the FY 2018 appropriation) and $383,800 from the Military Affairs appropriation. No funds were provided by Of the monies deposited into the Military Installation the Arizona Department of Administration (ADOA) Fund, DEMA is required to award 80% to acquire private building renewal appropriation in FY 2019. property, real estate, property rights, and related infrastructure. The remaining 20% is awarded to cities, DEMA estimates their FY 2020 match expenditures will be towns, and counties. The purchasing entity — whether it $1,700,000. is the state or a local government — owns the property and state properties are managed by DEMA. National Guard Tuition Reimbursement

National Guard Matching Funds The Baseline includes $1,000,000 from the General Fund in FY 2021 for the National Guard Tuition Reimbursement The Baseline includes $1,700,000 from the General Fund line item. This amount is unchanged from FY 2020. in FY 2021 for the National Guard Matching Funds line item. This amount is unchanged from FY 2020. DEMA estimates that the $1,000,000 appropriation will provide tuition reimbursement to 369 National The line item provides state funding to DEMA that serves Guardsmen. as a match to federal grants for the operational and maintenance costs associated with National Guard Other Issues facilities. These matching funds are for military grants, whereas the Emergency Management Matching Funds line item is for emergency-related grants. These military Statutory Changes grants have a matching requirement of 5-50%. The Baseline would: The operations and maintenance for these facilities are paid through service contracts. The Baseline continues to • As session law, extend the lapsing date for the make this appropriation exempt from the provisions of $3,759,000 FY 2019 appropriation from the General

FY 2021 Baseline 196 Department of Emergency and Military Affairs Fund to DEMA for construction of a new Tucson Baseline would extend authority to utilize this Readiness Center. These funds are currently appropriation until June 30, 2023. (Please see the scheduled to lapse at the end of FY 2020. The Arizona Department of Administration Building Baseline would extend authority to utilize this System Capital Outlay section footnotes for more appropriation until June 30, 2022. information.) • As session law, extend the lapsing date for the • As session law, extend the provision allowing the $3,875,000 FY 2020 appropriation from the General department to expend up to $1,250,000 from the Fund to DEMA for construction of a new West Valley Military Installation Fund through June 30, 2022 for Readiness Center. These funds are currently the construction of a new Readiness Center. This scheduled to lapse at the end of FY 2021. The authority previously was only in effect for FY 2020.

FY 2019 FY 2020 SUMMARY OF FUNDS Actual Estimate

Camp Navajo Fund (MAA2106/A.R.S. § 26-152) Non-Appropriated

Source of Revenue: Federal fees for storage and use of Camp Navajo, a munitions storage depot and National Guard training site. Purpose of Fund: To operate and maintain the Camp Navajo National Guard training and storage facility and for the operation and maintenance of National Guard facilities in Arizona. Funds Expended 15,816,200 13,960,700 Year-End Fund Balance 9,093,600 8,911,300

Emergency Management Assistance Compact Revolving Fund (MAA2602/A.R.S. § 26- Non-Appropriated 403) Source of Revenue: Monies appropriated by the Legislature and monies received as reimbursement for costs incurred by this state while rendering aid as prescribed in A.R.S. § 26-402. Purpose of Fund: To pay costs incurred by the state while assisting other states with emergencies or natural disasters. Funds Expended 0 0 Year-End Fund Balance 234,800 234,800

Federal Funds - Emergency (MAA2000/A.R.S. § 35-142) Non-Appropriated

Source of Revenue: Federal program grants. Purpose of Fund: To pay for the federal share of emergency planning, response and management programs. Funds Expended 7,957,200 12,574,700 Year-End Fund Balance 0 0

Federal Funds - Military (MAA2000 B/A.R.S. § 35-142) Non-Appropriated

Source of Revenue: contracts for security, maintenance and operations of the National Guard. Purpose of Fund: To provide the federal share of costs for and positions, capital and operating expenses. Funds Expended 40,857,500 48,165,600 Year-End Fund Balance 224,200 3,228,000

Indirect Cost Recovery Fund (MAA9000/A.R.S. § 35-142) Non-Appropriated

Source of Revenue: Federal FEMA Grants and Non-Appropriated Funds. Purpose of Fund: To pay administrative expenditures not directly attributable to any one program, but associated with Federal Grant and Non-Appropriated funds. Funds Expended 815,800 1,000,800 Year-End Fund Balance 546,700 445,200

FY 2021 Baseline 197 Department of Emergency and Military Affairs FY 2019 FY 2020 SUMMARY OF FUNDS Actual Estimate Interagency Service Agreement Fund (MAA2500/A.R.S. § 35-142) Non-Appropriated

Source of Revenue: Funds from federal grants. Purpose of Fund: Support of the agency's centralized personnel plan which allocates support staff costs to National Guard grants and the agency's mail distribution program in addition to agreements within and outside the agency. Funds Expended 659,800 763,800 Year-End Fund Balance 566,400 238,000

Military Installation Fund (MAA1010/A.R.S. § 26-262) Non-Appropriated

Source of Revenue: The FY 2015 General Appropriation Act provided a one-time deposit of $2,500,000 into the fund. Currently, the fund's sole revenue source is the collection of interest from the balance in the fund. Expenditures from this fund are not displayed below to avoid double counting. Purpose of Fund: Grants for military installation preservation and enhancement projects as well as costs associated with administering the fund. DEMA must utilize 80% of the monies to acquire private property, real estate, property rights and related infrastructure to preserve, support, or enhance a military installation. Up to 20% of this amount may be awarded to cities, towns, and counties for land acquisition purposes. The remaining 20% is awarded to cities, towns, and counties for military installation preservation and enhancement projects. In addition, $90,000 is appropriated each Fiscal Year from the General Fund to the department for the costs associated with 1 FTE Position to administer the fund. Funds Expended 0 0 Year-End Fund Balance 2,268,500 639,300

Morale, Welfare and Recreational Fund (MAA2124/A.R.S. § 26-153) Non-Appropriated

Source of Revenue: A portion of National Guard Member Special License Plate fees, funds generated from federally-defined recycling activities, monies from the disposal of unserviceable military property belonging to the state, or other non-state-appropriated monies. Purpose of Fund: To support morale, welfare, and recreational activities for guardsmen and non-state-employed support personnel. Funds Expended 24,600 165,000 Year-End Fund Balance 257,900 152,900

National Guard Fund (MAA2140/A.R.S. § 26-152) Non-Appropriated

Source of Revenue: Monies appropriated to the fund by the Legislature and proceeds, deposited into a separate subaccount, from National Guard facilities that are utilized for commercial purposes. Purpose of Fund: For general operating expenses of the National Guard and maintenance and capital improvements to any National Guard facility. Funds Expended 83,800 255,800 Year-End Fund Balance 244,400 92,600

Nuclear Emergency Management Fund (MAA2138/A.R.S. § 26-306.02) Appropriated

Source of Revenue: An assessment levied against a consortium of corporations that operate the Palo Verde Nuclear Generating Station. The Nuclear Emergency Management Program was previously funded by Laws 2015, Chapter 132, which appropriated $1,385,913 and 5.5 FTE Positions from the General Fund in FY 2016 and $1,424,377 and 5.5 FTE Positions in FY 2017 for the program. Chapter 132 offset this General Fund appropriation with the NEMF fees, which were deposited into the General Fund. Purpose of Fund: To administer and enforce the state plan for off-site response to an emergency caused by an accident at a commercial nuclear generating station. Expenditures from this fund are not displayed to avoid double counting of appropriated funds. Funds Expended 1,459,900 1,458,700 Year-End Fund Balance 2,564,700 2,591,300

State Armory Property Fund (MAA2146/A.R.S. § 26-231) Non-Appropriated

Source of Revenue: Sale of surplus armory property. Purpose of Fund: For the construction and capital improvement of National Guard armories. Funds Expended 0 50,000 Year-End Fund Balance 960,200 2,160,200

FY 2021 Baseline 198 Department of Emergency and Military Affairs

FY 2020 Baseline 199 Department of Emergency and Military Affairs