Agenda

MCCCDGB

Thursday June 13, 2019 – 9:00 a.m. Originating at: Neal Campus Kingman Room #508 Also Available via Interactive Television at: Bullhead City Campus Room #508 Lake Havasu Campus Room #508 North Mohave Campus Room #403

(Action Items are in bold print)

I. Call to Order (Dr. Julie Bare, President)

II. Roll Call (Amy Curley, Executive Assistant)

III. Approval of Meeting Minutes (Bare)(Appendix 1)

The draft minutes from the May 10 truth in taxation hearing, May 10 regular meeting and the May 23, 2019 special meeting appear in Appendix 1.

Motion to approve the draft minutes from the May 10, 2019 truth in taxation hearing and regular meeting and the May 23, 2019 special meeting as they appear in Appendix 1.

Motion to approve the draft minutes from the May 10, 2019 truth in taxation hearing and regular meeting and the May 23, 2019 special meeting as they appear in Appendix 1 with the following modifications:

IV. Audience of Any Citizen (Board Secretary)

[NOTE: This is an opportunity for any citizen to address the Board on any matter of concern to the citizen. The Board will listen to the remarks, but may not respond or answer questions. Unless the matter is already on the agenda for action, no action can be taken other than to instruct staff to include the matter on a future agenda. The president of the Board may limit the time for individual presentation and may limit the total time for all presentations. Citizens wishing to comment will be limited to one opportunity to speak. If a citizens group wishes to speak on the same subject, the group should choose a representative to deliver the message. The Chairperson may set a limit for organized group presentations and may set limits for each side when many persons request to speak on an agenda item. During Interactive Television (ITV) meetings, the chair will query each campus for those who wish to speak.]

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V. Board Report (Bare)

A. 2019-2020 District Governing Board Meeting Dates (Bare)(Appendix 2)

Per MCC Policy 1.075, at least eight regular meetings of the Board shall be held on dates designated at the June Board meeting for the ensuing fiscal year.

Motion to approve the 2019-2020 Mohave County Community College District Governing Board regular meeting dates as they appear in Appendix 2.

Motion to approve the 2019-2020 Mohave County Community College District Governing Board regular meeting dates as they appear in Appendix 2 with the following modifications:

B. AACCT and ACCT Update (Bare)

i. Arizona Association of Community College Trustees Statewide Conference (McAlpine)

AACCT has confirmed the room block for the September 6-9 conference in Prescott. Room rates at the Hassayampa Inn will be available until July 26, 2019.

ii. Association of Community College Trustees Annual Congress (Bare)

Early-bird registration for the ACCT Annual Congress, October 16-19, 2019 in San Francisco ends on August 9, 2019.

C. Trustee Other Reports (Bare)

An opportunity for individual trustees to speak regarding non-agenda informational items.

VI. President’s Report (Diana Stithem, Interim President)

A. Mohave Minute (James Jarman, Director of Marketing and Public Information)

* RN Program Ranked Among Best in America * RN and PN Pinnings * Dental Hygiene Pinning * Fire Academy Graduates * Engineering Program Graduate * MCC Scholarships Awarded * Meet the New Advisors * Cruisin’ at the College * Consumer Information Certificate *

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B. 2018-2019 Year End Report (Stithem)

MCC Policy 5.020 requires that a report be delivered to the Board at the end of each fiscal year advising the Board on the efficiency and effectiveness of all college operations and providing the estimated numbers for the past year’s: Total full-time equivalent students, Actual total number of students, Number of teachers regularly employed, Total number of students not residing within the district. The 2018-2019 Year End Report can be viewed or downloaded at: https://www.mohave.edu/assets/DRAFT_Year-End_06-06-2019.pdf

C. 2016-2020 Strategic Plan Status Report (Ana Masterson, Chief Student Services Officer)(Appendix 3)

The College is entering the fourth and final year of its current strategic plan, which was approved by the Board of Governors in May 2016 with the vision, “The work and service of Mohave Community College will be directed toward increasing countywide educational attainment levels and contributing to the economic growth and resilience of Mohave County.” The vision was supported with three goals, sixteen objectives, and forty-four strategies, which are addressed and discussed further in the appendix.

D. Tuition and Fees Correction (Stithem)(Appendix 4)

On January 11, 2019 the Board approved the 2019-2020 tuition and fees “as outlined above and the 2019-2020 fees as presented in the appendix”. In the description of the Western Undergraduate Exchange (WUE) tuition rate and Active Duty Military rate, the Emergency Medical Services (EMS) prefix was included in the list of Allied Health prefixes not eligible for these rates. EMS was removed from the prefixes excluded in 2017 primarily to bolster enrollment at the North Mohave Campus and currently has two students paying the WUE rate. The recommendation is to not include EMS in the allied health exclusions to WUE and active military.

Motion to remove EMS from the list of program prefixes not eligible for WUE or the Active Duty Military rate.

Motion to remove EMS from the list of program prefixes not eligible for WUE or the Active Duty Military rate with the following modifications:

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E. Mohave Valley BLM Lease Renewal Application (Stithem)(Appendix 5)

The District’s twenty-five year recreation & public purposes (R&PP) lease authorization for the parcels surrounding the Bullhead City Campus expires in July 2019. The recommendation is to continue use of this R&PP lease and renew the authorization, working with the Bureau of Land Management, Lake Havasu Field Office.

Motion to renew the authorization for R&PP lease AZA 25589.

Motion to renew the authorization for R&PP lease AZA 25589 with the following modifications:

F. Intergovernmental Agreement Conflict Waiver (Stithem)(Appendix 6)

Mohave Community College has requested that the Mohave County Attorney's Office ("MCAO") provide legal services in connection with the Intergovernmental Agreement for Dual Enrollment Courses. MCAO maintains an attorney-client relationship with the parties, by and through his deputies, and may periodically provide legal advice to them. MCAO may proceed with representation if all affected parties provide a written waiver of the conflict of interest after being informed of the consequences of such a waiver. The request for legal services for the above referenced matter is one of those circumstances.

Motion to approve the Waiver of Conflict concerning Intergovernmental Agreement for Dual Enrollment Courses between Mohave County Community College District and Participating School Districts.

Motion to approve the Waiver of Conflict concerning Intergovernmental Agreement for Dual Enrollment Courses between Mohave County Community College District and Participating School Districts with the following modifications:

G. Transition Update (Stithem)

An opportunity for the Interim President to update the Board on College operations during the transition to a new President.

H. AZ State-Level Reports: Councils, Legislative and State Budget (Stithem)(Appendix 7)

Updates from the meetings of the Arizona Community Colleges Coordinating Council, including state and federal legislative issues effecting Mohave Community College, state revenue collections and other fiscal issues.

I. Update of Current Events (Stithem)

Updates on current events impacting the College.

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VII. Instruction (Stephen Eaton, Chief Academic Officer)

Western Area Law Enforcement Training Association (WALEA) Intergovernmental Agreement (IGA) (Eaton)(Appendix 8)

During past academic years, Mohave Community College has been involved with Western Arizona Law Enforcement Association, which encompasses Mohave, LaPaz and Yuma counties, to create college credit options for police officers participating in the Police Standards and Training program in Lake Havasu City, taught by instructors from the Western Arizona Law Enforcement Training Academy (WALETA). MCC is proposing to establish another agreement for the academic year 2019-2020.

Motion to approve the Intergovernmental Agreement between the Western Arizona Law Enforcement Association and Mohave Community College as it appears in the Appendix.

Motion to approve the Intergovernmental Agreement between the Western Arizona Law Enforcement Association and Mohave Community College as it appears in the Appendix with the following modifications:

VIII. Administrative Services

A. Financial Services (Sonni Marbury, Chief Financial Officer)

1. Procurement (Marbury)

a. IFB # 06-1819 Vehicle Rental Services (Marbury)

On April 1, 2019, Mohave Community College posted an Invitation for Bids (IFB) 06- 1819, Vehicle Rental Services to be used by staff and faculty from Neal Campus Kingman, Bullhead City Campus, Lake Havasu Campus and North Mohave Campus in Colorado City. Enterprise Rent-A-Car was selected as not only the lowest bid but the only one offering services for all four campuses.

b. RFP 07-1819 Asphalt Paving, Sealcoat & Striping (Marbury)(Appendix 9)

On April 16, 2019, the Procurement Department of Mohave Community College released Request for Proposal (RFP) 07-1819, Pavement, Seal Coat & Striping for the Kingman Campus with proposals due on Thursday, May 16, 2019. The College received proposals from McCormick Construction and Sunland Asphalt. (Map and scope of work attached)

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McCormick Construction $ 513,456.24 Combined Asphalt Paving and Sealcoat/Striping work $ 734,842.24 Option Area #3 Pavement instead of Seal Coat

McCormick’s bid is to remove the current asphalt and bring in new 4” base and laying 2” New Asphalt.

Sunland Asphalt $ 247,028.00 Combined Asphalt Paving and Sealcoat/Striping work $ 371,758.00 Option Area #3 Pavement instead of Seal Coat

Sunland’s bid is to remove old asphalt, re-milling on site and using recycled materials as the 4” base and laying 2” new Asphalt. Sunland has given a warranty of all material and workmanship for two years from the completion of the project.

Work is to be completed between July 5, 2019 and August 3, 2019 so that it is complete prior to the Fall Semester.

The College recommends Sunland Asphalt as the preferred vendor for the Pavement and Seal Coat/Striping with Optional Area #3 Pavement

Motion to accept the bid from Sunland Asphalt for the amount not to exceed $390,346 ($371,758.00 plus a five-percent contingency) for pavement, including area #3, and sealcoat/striping on the Neal Campus Kingman

Motion to accept the bid from Sunland Asphalt for the amount not to exceed $390,346 ($371,758.00 plus a five-percent contingency) for pavement, including area #3, and sealcoat/striping on the Neal Campus Kingman with the following modifications:

2. Monthly Financial Reports (Marbury)(Appendix 10a and 10b)

a. Monthly Cash Flow Report – A report that visually represents the College’s fund balance, expenses, deposits and amount invested with the state treasurer.

b. Expenditures & Revenue Report – A report that visually represents the College’s expenditures by function and object and its primary revenue sources with Year to Date Actuals.

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B. Human Resources (Jennie Dixon, Chief Human Resources Officer)

1. Human Resources Reports (Dixon)(Appendix 11)

The College’s human resources reports for the month ending May 31, 2019, reflecting new hires, transfers, reclassifications, title changes and separations.

Motion to approve the Human Resources report for the month ending May 31, 2019 as presented in the appendix.

Motion to approve the Human Resources report for the month May 31, 2019 as presented in the appendix with the following modifications:

IX. Next Meeting (Bare)

The next regular meeting of the Mohave County Community College District, if approved, will be Friday August 9, 2019 at the North Mohave Campus, Colorado City AZ starting at 12:00 p.m. Arizona time.

X. Adjournment (Bare)

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Minutes Truth in Taxation Hearing

Interactive Television (ITV) Originating at Bullhead City Campus, ITV Room # 508 May 10, 2019, 12:00 p.m.

Lake Havasu City Campus, ITV Room #508

Kingman Campus, ITV Room # 508

North Mohave Campus, ITV Room # 301 (Action Items are in bold print)

I. Call to Order (Dr. Julie Bare, Governing Board President)

Dr. Bare called the hearing to order at 12:00 p.m.

II. Pledge of Allegiance

III. Roll Call (Amy Curley, Executive Assistant)

Julie Bare Present Susan McAlpine Absent Vance Miller Present Ashley Pascual Present Judy Selberg Present

IV. Truth in Taxation Hearing (Bare)

Board Secretary Judy Selberg stated that pursuant to A.R.S. 15-1461.01, the Governing Board shall hold a public hearing relative to Truth in Taxation. At this time, comments from any concerned citizen will be heard.

The Board will listen to remarks, but may not respond or answer questions. In the interest of completing business in a timely manner, individual presentations will be limited to three (3) minutes, and the total time for all presentations will be limited to twenty (20) minutes. Citizens wishing to comment will be allowed one opportunity to speak. During Interactive Television (ITV) meetings, the chair will query each campus for those who wish to speak.

Each year, the Mohave County Assessor notifies the college of the Levy Limit Calculations completed by that office. The maximum 2019-2020 Levy Limit for Mohave Community College is $25,293,210.

The highest amount that may be levied without a hearing is the previous year’s levy plus tax on new construction. The maximum tax levy is the previous year’s levy, plus new construction, plus 2% for inflation. The 2% for inflation requires a Truth in Taxation hearing.

The tax rate without this hearing will be 1.2996. The tax rate if approved at this hearing will be 1.3255. The difference in the rate equates to an additional levy of $2.59 per year on property valued at $100,000. The recommendation is to approve the additional tax levy for inflation for the 2019-20 fiscal year by roll call vote.

Dr. Bare started the public hearing portion of the meeting. There were no citizens wishing to address the Board in the Kingman, Lake Havasu or North Mohave locations. Two citizens address the Board from Bullhead City.

A speaker who wished to remain anonymous questioned why the Board bothered to hold a hearing as it approved the two-percent every year. The speaker asked for clarification as to why the College needed the two-percent?

Mr. Tom Benson addressed the Board. Mr. Benson stated that he understood the importance of education having attended a junior college in Florida in the mid-1970's, however, costs have skyrocketed. Mr. Benson provided an example of a friend’s daughter who attended a college in Utah, didn’t pass a single class and is now in debt $30,000. When asked why she chose to attend this school, she indicated it had a sushi bar, rock-climbing wall and was the only school in Utah that had a bar on campus. Mr. Benson stated the following: that more than fifty percent of the taxes collected by MCC go to administrative costs and not the education of students, referencing Lyndon B. Johnson’s “Great Society”; that the Board should consider the compounding factor of raising the tax two-percent every year, equating to thousands of dollars; that the money collected goes into the general fund and could be spent on other things like roads; that he supports a direct education tax that goes straight to the school.

Dr. Bare thanked the citizens for their comments and called for a motion.

Vance Miller moved, Judy Selberg seconded, to increase the district’s total primary property tax rate for a total rate of 1.3255 ($494,224).

Roll Call Vote: Bare Yes McAlpine Absent Miller Yes Pascual Yes Selberg Yes

Without further discussion, the motion carried 4-0. (Bare, Miller, Pascual, Selberg)

V. Adjournment (Bare)

Dr. Bare adjourned the meeting at 12:09 p.m. 2018 LEVY LIMIT WORKSHEET

Date: 02/09/2018 MOHAVE COUNTY - MOHAVE COMMUNITY COLLEGE

MAXIMUM LEVY 2017

A.1. Maximum Allowable Primary Tax Levy $23,364,864 A.2. A.1 multiplied by 1.02 $23,832,161

CURRENT YEAR NET ASSESSED VALUE SUBJECT TO TAXATION IN PRIOR YEAR 2018 B.1. Centrally Assessed $174,808,390 B.2. Locally Assessed Real Property $1,565,084,557 B.3. Locally Assessed Personal Property $37,095,331 B.4. Total Assessed Value (B.1 through B.3) $1,776,988,278 B.5. B.4. divided by 100 $17,769,883

CURRENT YEAR NET ASSESSED VALUES 2018 C.1. Centrally Assessed $182,573,704 C.2. Locally Assessed Real Property $1,587,794,309 C.3. Locally Assessed Personal Property $40,821,476 C.4. Total Assessed Value (C.1 through C.3) $1,811,189,489 C.5. C.4. divided by 100 $18,111,895

LEVY LIMIT CALCULATION 2018 D.1. LINE A.2 $23,832,161 D.2. LINE B.5 $17,769,883 D.3. D.1/D.2 (MAXIMUM ALLOWABLE TAX RATE) 1.3412 D.4. LINE C.5 $18,111,895 D.5. D.3 multiplied by D.4 = MAXIMUM ALLOWABLE LEVY LIMIT $24,291,673 D.6. Excess Collections/Excess Levy D.7. Amount in Excess of Expenditure Limit D.8. ALLOWABLE LEVY LIMIT (D.5 - D.6 - D.7) $24,291,673

2018 New Construction $34,201,211

MOHAVE COUNTY COMMUNITY COLLEGE DISTRICT Truth in Taxation Hearing Notice of Tax Increase

In compliance with section 15-1461.01, Arizona Revised Statutes, the Mohave Community College District is notifying its property taxpayers of Mohave Community College District’s intention to raise its primary property taxes over last year’s level. The Mohave Community College District is proposing an increase in primary property taxes of $476,342 or 2.0%.

For example, the proposed tax increase will cause Mohave Community College District’s primary property taxes on a $100,000 home to increase from $131.49 (total taxes that would be owed without the proposed tax increase) to $134.12 (total proposed taxes including the tax increase). The total increase on a $100,000 home would be $2.63.

This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides. All interested citizens are invited to attend the public hearing on the tax increase to be held via Interactive Television (ITV) originating at the Bullhead City Campus, 3400 Highway 95, Bullhead City, Arizona 86442, at 12:00 p.m., on Friday, May 11, 2018, in Room #508. The hearing may also be attended at these additional campus locations: 1971 Jagerson Ave., Kingman, AZ 86409, Room 508; 1977 W. Acoma Blvd., Lake Havasu City, AZ 86403, Room 508; 480 S. Central, Colorado City, AZ 86021, Room 301.

Minutes

MCCCDGB

Friday May 10, 2019 – 12:00 p.m. Originating at: Bullhead City Campus Room #508 Also Available via Interactive Television at: Neal Campus Kingman Room #508 Lake Havasu Campus Room #508 North Mohave Campus Room #403

(Action Items are in bold print)

I. Call to Order (Dr. Julie Bare, President)

Dr. Bare called the regular meeting to order at 12:09 p.m.

II. Pledge of Allegiance (Bare)

III. Roll Call (Amy Curley, Executive Assistant)

Julie Bare Present Susan McAlpine Absent Vance Miller Present Ashley Pascual Present Judy Selberg Present

IV. Approval of Meeting Minutes (Board President)(Appendix 1)

The draft minutes from the April 12 regular meeting, April 23 special meeting, April 26 special meeting and the May 6 special meeting appear in Appendix 1.

Judy Selberg moved, Vance Miller seconded to approve the draft minutes from the April 12 regular meeting, April 23 special meeting, April 26 special meeting and the May 6, 2019 special meeting as they appear in Appendix 1. Without further discussion, the motion carried 4-0. (Bare, Miller, Pascual, Selberg)

V. Audience of Any Citizen (Board President)

Board Secretary Judy Selberg stated that this is an opportunity for any citizen to address the Board on any matter of concern to the citizen. The Board will listen to the remarks, but may not respond or answer questions. Unless the matter is already on the agenda for action, no action can be taken other than to instruct staff to include the matter on a future agenda.

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The president of the Board may limit the time for individual presentation and may limit the total time for all presentations. Citizens wishing to comment will be limited to one opportunity to speak. If a citizens group wishes to speak on the same subject, the group should choose a representative to deliver the message. The Chairperson may set a limit for organized group presentations and may set limits for each side when many persons request to speak on an agenda item. During Interactive Television (ITV) meetings, the chair will query each campus for those who wish to speak.]

There were no citizens who wished to address the Board from any location.

VI. Board Report (Bare)

A. Presidential Search Conclusion (Bare)(Appendix 2)

Dr. Bare announced that with Dr. Klippenstein’s acceptance of the position, the search for the sixth president of Mohave Community College is concluded and thanked everyone for their participation in the process.

B. Trustee Other Reports (Bare)

No individual trustees wished to speak regarding non-agenda informational items.

VII. President’s Report (Diana Stithem, Interim President)

A. Mohave Minute (James Jarman, Director of Marketing and Public Information)

Mr. Jarman presented the newcast covering April 2019 events including: Licari Winner profile * Macebearer profile * Financial Aid Specialist presentation * PTK Awards * Kingman Recruiting drive * Denim Day * Culinary Dinner/HS Student * Truck driving couple * Computers to elementary school * Art Show at Bullhead campus * Ovis Spring Edition

B. MCC Summer Bridge Update (Stithem)

Interim President Stithem reported that the College’s Summer Bridge program is a joint partnership with Mohave County high schools that encourages qualified high school students to move forward with college careers. These courses prepare students for dual enrollment during high school, and/or for college after they graduate.

The STU 103 course prepares students for college level work. Other courses can be applied to the Arizona General Education Curriculum (AGEC). Credits can be used toward an Associate Degree that students complete at the same time as high school graduation.

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C. Transition Update (Stithem)

The Interim President to updated the Board on College operations during the transition to a new President.

D. AZ State-Level Reports: Councils, Legislative and State Budget (Stithem)(Appendix 3)

The interim president provided an update from the meetings of the Arizona Community Colleges Coordinating Council, including state and federal legislative issues effecting Mohave Community College, state revenue collections and other fiscal issues.

E. Update of Current Events (Stithem)

VIII. Student Services (Ana Masterson, Chief Student Services Officer)

Digital Credential Service – Parchment Inc. (Michelle Brehmeyer, Associate Dean of Enrollment Management)(Appendix 4)

Ms. Brehmeyer the Registrar’s Office understands that a fundamental component of a student’s higher education experience is the conferral of study and the final diploma that documents their accomplishments. On average, the processing of MCC print diplomas can take 8-10 weeks. The Registrar’s Office has teamed up with Parchment, a digital credential service located in Scottsdale, Arizona, that will be able to expedite MCC’s diploma processing. Upon receipt of the list of conferred student credentials, Parchment will process diplomas within a 5-7 day period as well as provide MCC students with an instant, digital diplomas that they can share on social media.

Ms. Pascual asked if the service would add any additional cost to students. Ms. Brehmeyer responded that it would not. Dr. Bare asked what precautions were in place to prevent students from altering the digital format. Ms. Brehmeyer responded that Parchment provides a “Blue Ribbon PDF” which means a certifying signature has been added to electronic document. This validates that MCC is the author of the document, has finalized its contents, and secured it against tampering after it has been distributed. Certified documents display a blue ribbon across the top of the document containing the signer's name and the Certificate issuer - a clear, visual indicator of document authenticity.

IX. Administrative Services

A. Financial Services (Sonni Marbury, Chief Financial Officer)

1. Monthly Financial Reports (Marbury)(Appendix 5a and 5b)

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a. Monthly Cash Flow Report – Ms. Marbury presented a report that visually represents the College’s fund balance, expenses, deposits and amount invested with the state treasurer.

b. Expenditures & Revenue Report – Ms. Marbury presented a report that visually represents the College’s expenditures by function and object and its primary revenue sources with Year to Date Actuals.

B. Human Resources (Jennie Dixon, Chief Human Resources Officer)

1. Human Resources Reports (Dixon)(Appendix 6)

Ms. Dixon presented the College’s human resources reports for the month ending April 30, 2019, reflecting new hires, transfers, reclassifications, title changes and separations.

Vance Miller moved, Judy Selberg seconded, to approve the Human Resources report for the month ending April 30, 2019 as presented in the appendix. The motion carried 4-0. (Bare, Miller, Pascual, Selberg)

X. Next Meeting (Bare)

Dr. Bare stated that the next regular meeting of the Mohave County Community College District will be Thursday June 13, 2019 starting at 9:00 a.m., originating from the Neal Campus Kingman. A ribbon-cutting ceremony will be held immediately following for the opening of the building that will house the lab and classrooms for MCC’s Electrical Technology Program.

XI. Adjournment (Bare)

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Special Meeting

MCCCDGB

Thursday May 23, 2019 Neal Campus Kingman, Building 100 Members may participate telephonically 5:00 p.m.

(Action Items are in bold print)

I. Call to Order (Julie Bare, President)

Dr. Bare called the meeting at 5:00 p.m.

II. Pledge of Allegiance (Bare)

The Board recited the Pledge of Allegiance.

III. Roll Call (Bare)

Julie Bare Present Susan McAlpine Present Vance Miller Present Ashley Pascual Present Judy Selberg Present

All members participated telephonically.

IV. Executive Session (Bare)(Appendix – Executive Session Agenda)

Dr. Bare stated that pursuant to ARS § 38-431.03(A)(3), the Mohave County Community College District Governing Board (MCCCDGB) is allowed to hold an executive session for specific purposes. Legal action involving a final vote or decision shall not be taken at an executive session. The purpose of the executive sessions is as follows: Consultation for legal advice with attorney of the public body.

Judy Selberg moved, Vance Miller seconded, to hold an executive session for the purpose of consultation for legal advice with attorney of the public body. The motion carried 5-0 (Bare, McAlpine, Miller Pascual, Selberg)

V. Recess to Executive Session (Bare)

The Board recessed to Executive Session at 5:02 p.m. 1

VI. Reconvene Special Meeting and Possible Action Regarding Legal Advice (Bare)

Dr. Bare reconvened the special meeting at 5:32 p.m.

VII. Adjourn Special Meeting (Bare)

Dr. Bare adjourned the special meeting at 5:32 p.m.

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MCCCDGB 2019-2020 Meeting Dates

July 2019 No Meeting N/A N/A

North Mohave 12:00 P.M. August 2019 Friday August 9, 2019 Campus ITV ROOM #403

AACCT Conference September 6-8, 2019 Prescott, AZ

Neal Campus 9:00 A.M. September 2019 Friday September 13, 2019 Kingman ITV ROOM #508

9:00 A.M. October 2019 Friday October 11, 2019 Bullhead City Campus ITV ROOM #508

ACCT Congress October 16-19, 2019 San Francisco, CA

9:00 A.M. November 2019 Friday November 8, 2019 Lake Havasu Campus ITV ROOM #508

December 2019 No Meeting N/A N/A

Neal Campus 9:00 A.M. January 2020 Friday January 10, 2020 Kingman ITV ROOM #508

9:00 A.M. February 2020 Friday February 14, 2020 Bullhead City Campus ITV ROOM #508

9:00 A.M. March 2020 Friday March 13, 2020 Lake Havasu Campus ITV ROOM #508

Neal Campus 9:00 A.M. April 2020 Friday April 10, 2020 Kingman ITV ROOM #508

12:00 P.M. May 2020 Friday May 15, 2020 Bullhead City Campus ITV ROOM #508

COMMENCEMENT Friday May 15, 2020 Anderson Fieldhouse 3:00 P.M.

9:00 A.M. June 2020 Thursday June 11, 2020 Lake Havasu Campus ITV ROOM #508 Mohave Community College 2016-2020 Strategic Plan Final Report

Executive Summary

Enclosed is the status of Mohave Community College’s 2016 – 2020 Strategic Plan that was developed with the vision, “The work and service of Mohave Community College will be directed toward increasing countywide educational attainment levels and contributing to the economic growth and resilience of Mohave County.” The vision was supported with three goals, sixteen objectives, and forty-four strategies, which are addressed and discussed further throughout this document.

With more than 80 percent of the Strategic Plan strategies “met” or “ongoing,” the 2016 – 2020 Strategic Plan is concluding in fall 2019 due to presidential transition as well as a shift in approach and need. While the goals provide a solid foundation for MCC to build upon, some of the original strategies were infeasible, leading to less than optimal outcomes. At this level of completion, the College has the opportunity to review the plan’s direction and identify new initiatives.

For the purpose of this document, “met” is defined as a completed initiative, while “ongoing” is an initiative that is in progress. Both definitions represent success with momentum and development in moving the College and its mission forward.

Further, it is significant to note that there is a careful balance with labeling strategies “met” versus “ongoing” in that some initiatives can continually be enhanced and improved. For example, the College will continue to look for opportunities to develop new programs, credit and non-credit, certificates and degrees, which are based on comprehensive labor market research (goal 1, strategy 1) – regardless of how much it has done in this area prior. Strategies termed as “not met” are incomplete initiatives without progress. The majority of the eight initiatives in this category are due to lack of available resources (finances, staffing) or a calculated change in focus.

Established metrics for the 2016 – 2020 Strategic Plan indicate that MCC evolved with its environment and maintained progress in making higher education accessible, attainable and beneficial in Mohave County.

Mohave Community College Mission, Vision, and Values

MCC Mission Statement The mission of Mohave Community College is to be a learning-centered institution, serving all constituencies, inspiring excellence through innovation and empowering students to succeed.

MCC Vision Statement Mohave Community College strives to be recognized as a resource for educational, cultural and civic activities by the communities it serves.

MCC Values Statements A. Building a Better Tomorrow through Learning Learning is the core of the Mohave Community College mission. We acknowledge the importance of continuous learning to ensure the best possible future for everyone. B. Accountability for the Future The decisions made today affect individuals in the future. At Mohave Community College, we accept responsibility for our actions and decisions. We hold ourselves accountable to our students, our communities and to the generations that come after us. MCC decisions will be designed to fulfill its vision for the future, aiming to achieve reliable, long-term improvements over short-term expediency. C. Integrity We remain committed to our values. Our decisions are consistently and courageously made in alignment with our convictions. We consciously foster an atmosphere of openness and trust, making data-driven decisions that are balanced by a cultivated sense of compassion. D. Responsiveness We take pride in flexibly responding to our changing environment, promptly providing programs that are needed by our students and communities. E. Quality We aim for excellence in all that we do, while embracing the concept of efficiency. F. Providing a Supportive Environment Mohave Community College is committed to student success. We show respect to all and work to overcome barriers to honesty, trust and sincerity. We take pride in providing friendly service to our students and communities. G. Having Fun We embrace the concept of having fun and finding joy in our work and services.

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Mohave Community College Strategic Plan Metrics and Measurements

The metrics established in MCC’s Strategic Plan to assess its effectiveness as well as the outcomes are addressed below.

Goal 1: MCC will drive educational attainment and student success

Educational attainment rate for associate degrees in Mohave County Associate degree attainment was 8 percent in 2016 and is projected to remain flat through 20221.

Inflation-adjusted median household income In 2016, the median household income was $39,856. In 2018, median household income increased 4% to $41,5672. Research shows that the cost of goods also increased about 4% during this time1. This is the equivalent of no real wage increase, a situation known as salary stagnation.

Goal 2: MCC will enhance its value to the community by

strengthening its outreach, involvement and partnerships

Public Service Activity MCC provides employees with the opportunity to give back in the communities the College serves through MCC Cares hours, a bank of paid time employees can use to volunteer at a College-approved agency or organization. Employees used their hours to help at the Food Bank as well as assist at numerous schools with reading programs. Campus deans and other staff also utilized their connections to public service organizations, such as Rotary and Kiwanis, to provide additional support in the community on behalf of MCC.

Community Partnerships MCC enhanced, renewed and established community partnerships through Strategic Plan initiatives. The College has more than forty partnerships through academic, community, and service endeavors. Examples include Club for Youth, Boys and Girls Clubs of the Colorado River, Mohave County school districts, Grand Canyon Resort, DOT Foods, Goodwill of Northern Arizona and clinical sites for allied health programs.

1 Data obtained from Economic Modeling Specialists International (EMSI), https://www.economicmodeling.com/, a third-party agency specializing in labor market research.

2 Data obtained from Data USA, https://datausa.io/about/background, a third-party agency specializing in labor market research.

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Mohave County Employment & Business Trends Job growth is projected to increase by 13% between 2016 (49,000) and 2020 (55,500) with allied health and career and technical education fields having the largest demand1. While the unemployment rate fluctuates, it has continued a relatively downward trend from 2010. In July 2016, unemployment was 6.6% while in March 2019 it was 5.6%3.

Goal 3: MCC will plan and manage sustainable, quality growth

Climate Survey While resources were not allocated for climate surveys throughout the duration of the Strategic Plan, the internal climate of MCC was assessed and addressed, as needed, based on observations, committee meetings and collaborations between staff and departments. The climate of the communities MCC serves was also assessed informally by community interactions and outreach by staff in various modalities.

Current and Future Financial Positions of the College The College’s financial ratios continue to exceed average standards of MCC’s accreditation agency, the Higher Learning Commission, allowing for strategic investment in programs and facilities to benefit students.

These metrics can be complemented with the performance metrics found in the “Mohave Community College 2018 Strategic Vision Outcomes Report” created as part of the “Arizona Community Colleges: Long-Term Strategic Vision” by Arizona Community College Presidents Council (ACCPC).

3 Data obtained from the Bureau of Labor Statistics, https://www.bls.gov/

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Strategic Goals and Implementation Activities

Strategies and objectives were provided for each of the goals in MCC’s 2016 – 2020 Strategic Plan. Each goal and supporting objective is listed along with the corresponding strategies and status below.

Goal 1: MCC will drive educational attainment and student success

Objectives: ⋅ Institutionalize a philosophy of student success ⋅ Offer competitive academic programs that meet student and community needs and opportunities ⋅ Provide teaching and learning environments that foster excellence and encourage inquiry/creativity ⋅ Strengthen the College’s policies, processes and business practices to facilitate student access ⋅ Strengthen student support services to facilitate student completion ⋅ Cultivate a campus environment that encourages student success and engagement ⋅ Support initiatives that close the achievement gap for underserved populations in our communities

Goal 1 Strategies “met” (completed):

Engage community partners in actively assessing curricula and program content to meet market demands and standards. All programs under the Perkins Career and Technical Education Grant at MCC (such as welding and culinary), as well as allied health programs, hold community advisory meetings at least annually to ensure they are meeting the needs of the community and professions. The Perkins Career and Technical Education Grant is funding provided by the United States Government for career and technical programs.

Expand opportunities for peer-to-peer instructional feedback for both veteran and novice teachers. The Office of Instruction implemented a faculty mentor program, providing pairing opportunities for new faculty with an experienced/veteran instructor for guidance and assistance during the first year they are at MCC.

Explore new models of multi-campus instructional delivery Plural classes (where one instructor teaches multiple course sections at the same time) using video and audio software known as Zoom occurred on all campuses, leading to enhanced instructional delivery for students in a collaborative manner.

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Expand opportunities for students to credential using military, work history and other forms of external and experiential learning. The Office of Instruction updated the Prior Learning Assessment (PLA) policy and procedure, allowing students to receive credit for prior work history and/or learning.

Strengthen the College-wide comprehensive student success plan and design initiatives to support underserved and/or at-risk populations. In 2016, Student Success Plans were created and implemented for students on academic probation (about 300 per semester). Student Services expanded the initiative as part of the transitional math project (created for students who are at risk of failing in math) in 2017/18. At least 1,800 students utilized student success plans from the establishment of the program.

Student Success Center (SSC) staff also conducted outreach (about 2,000 contacts, etc. per semester) for students in classes that MCC identified as having a high rate of failure (known as the Big 9) to check-in and remind students of available services available in the Success Centers.

Further, advising learning communities were established in summer 2017 to enhance student engagement. Communities allowed for students to meet with advisors, librarians, Student Success Center and additional staff for positive interaction in a forum setting.

Work is also underway for staff to conduct in-person outreach for students in the Big 9 classes as well as develop rapid response teams. These teams assist students who are at risk of failing due to personal hardships and offer appropriate, relevant resources and assistance to keep them on track for semester and program completion.

Explore the feasibility of providing childcare through direct service or partnerships. The strategy was determined infeasible due to cost, risk, broad student need, College priorities, and day care requirements. Considerable research included: Survey of Entering Student Engagement (SENSE) childcare survey, Yavapai College Daycare Program, and State of Arizona Bureau of Childcare Requirements.

Strengthen on-campus student employment outcomes Enhanced performance assessments for the work-study program began in fall 2017-18. The previous evaluations included supervisor opinion of a level of mastery for a particular skill. Prior evaluations failed to provide objective definitions of the rating system used, making it incomparable across supervisors and positions.

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The assessment introduced in 2017-18 was adapted from ACT’s WorkKeys, which focused on recognized workplace skills used and desired across industries. WorkKeys also provided a standard definition for each ranking, removing the subjective nature of the review. By enhancing the assessment process, the work-study program better positioned students to learn how to be capable employees after college.

Offer diverse student life programming and activities Campuses enhanced their approach to student life throughout the strategic plan period. Events and programs hosted on campuses included: Welcome Back Bashes; speaker series; Earth Day rock display; candidate forums; movie showings; writer's workshops; and holiday festivals. Recently, MCC has planned around 30 events among all of its campuses, providing quality student life opportunities.

Goal 1 Strategies “ongoing” (in progress):

Develop new programs, credit and non-credit, certificates and degrees, which are based on comprehensive labor market research. During the span of the strategic plan, the credit-bearing truck driving program was established and implemented (2017). Further, the transitional math program underwent a substantial revamp to improve the student learning experience and allow for faster completion of transitional math requirements. Career and Technical Education moved most programs (auto service, auto collision, heating, ventilation and air conditioning and welding) to a competency-based model and revised each program to allow students to achieve stackable certificates instead of requiring an associate of applied science degree. The nursing pathway (practical nursing to registered nurse) was also developed and implemented in response to market needs and research. The revamped electrical program will begin fall 2019.

Engage all employees in a continuous, comprehensive process of program improvement. Currently, a departmental program review template is proposed for committee(s) to consider and potentially vet. If approved, template completion would be required of all College departments for annual review and approval - with a focus on departmental planning, review and goal setting to achieve strategic priorities and initiatives. The overarching goal is to maintain continuous quality improvement in every department—instructional and non-instructional—thus improving students’ chances of success.

The template would also serve as the structure for the College's annual report (beginning next year) if approved and implemented.

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Promote problem solving approaches and thinking skills that foster student success. Advising learning communities were established using the College’s learning management system in summer 2017 to enhance engagement (in a forum setting) for students, allowing for a collaborative environment where advisors, librarians, Student Success Center staff and additional personnel are available. The communities prompted students during the semester to communicate areas of need, analyze their progress and next steps. Just this year, advisors provided 88 announcements (prompts) for students to engage - with 271 posts made by students in response.

Milestone Advising also engaged students’ critical thinking skills. Milestone Advising is required when students are halfway through their declared degree or certificate and specifically addresses plans, potential (if any) concerns they may have when finishing their education and thoughts for the future as well as how to best navigate their entrance into a full-fledged career. More than 300 students were part of the Milestone Advising Program this year.

A refreshed transitional math model was offered starting in 2016 with a new approach to math delivery via collaboration between Student Services and Instruction. Under the model, students received instruction from a facilitator while utilizing an online math platform (EdReady), which provided a new way of learning math and developing critical thinking skills.

Faculty received research on student-centered instruction rather than the traditional approach of content-focused teaching. Upcoming orientations and faculty workshops will dive deeper into professional development opportunities for faculty to implement critical thinking and practical application techniques for students.

Design and deliver an effective and engaging new student orientation program. The Distance Education Student Support Team, comprised of MCC faculty and staff to create and refresh initiatives to support online students, revised the information presented in the current College orientation and adopted a new format. However, concerns remain regarding the visual appeal of the orientation while considering available resources. Data shows that the vast majority of students choose to not complete orientation; with most leaving early in the information (slides 1-5).

The team believes the orientation’s lack of visual appeal is a significant contributor to it being disengaging (thus ineffective) and continues to search for low- to no-cost options to correct it. It remains available online only due to departmental/college structure and resources. However, when possible, on- ground orientations were created for cohorts as part of the initiative.

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In fall 2018, the recruitment team created a new student orientation to target concurrent students through the Western Arizona Vocational Education Joint Technical Education District. The orientation covers resources available such as self-help password reset, seven days a week call center support, and learning management advising communities. Starting in spring 2018, the recruitment team collaborated with the nursing department to offer this same orientation to incoming students.

Enhance advising and services to ensure all first-year students receive individualized success planning. Advisors now conduct “Successful Start” sessions for first-year students. Identified students are flagged in the system and receive notification of needing a “Successful Start” session after the start of the semester. Sessions include providing an orientation to MCC and resources, along with creating a program completion plan.

Student interest has varied, with an overall 20% response rate by new students this past year. Additionally, staffing to accommodate “Successful Start” sessions was complicated at times due to various demands. The initiative continues to be evaluated and adjusted as needed to fit the parameters of budget, staffing, student response and needs.

Goal 1 Strategies “not met”:

Collaborate with local high schools to align curriculum

Incorporate Workplace Readiness across the curriculum

Develop and implement a structure for students to participate in civic engagement and service learning projects

Goal 2: MCC will enhance its value to the community by strengthening its outreach, involvement and partnerships

Objectives: ⋅ Promote a positive image of the College and raise awareness of its strengths ⋅ Strengthen relationships with business, educational, governmental and non-profit organizations in support of regional workforce and economic development ⋅ Expand current and create new partnerships to engage multiple sectors of the community in civic engagement activities, with particular focus on underserved communities

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⋅ Provide opportunities for greater engagement between the College and the community

Goal 2 Strategies “met” (completed):

Foster partnerships to deliver county-wide cultural, artistic, and academic programming Programs developed from partnerships were held on various southern campuses, including the MCC Opioid Symposium, speaker presentations (e.g., "Women in Arizona Prisons,” “Climate Change and Moral Responsibility”), Arizona Humanities programming, Mathlympics, summer computer camps, celebration of heritage months and more. Overall, MCC continues to partner with organizations to offer a variety of programming for students and the community.

Expand College presence in pre-high school grades The College’s recruitment department and Marketing and Public Information Office (MPIO) partnered in this effort, with MPIO using electronic and social media to target parents, while recruitment held events and speaking engagements at local schools to promote the benefits of college. The combination has worked, with efforts continually evaluated and enhanced. Events were previously scarce or non-existent for the K – middle school population. In 2017, the recruitment team engaged in three events and spoke to 545 students or parents from Head Start to junior high.

In 2018, efforts significantly increased, with the recruitment team engaging in 13 events and speaking to 897 students or parents from Head Start to junior high. This effort was an increase of 65% for contacted students and a 76% increase in events engaged from 2017 to 2018. MPIO and Recruitment also continue to target pre-high school students and parents by promoting events at campuses such as MCC Shines and Pumpkinfest.

Goal 2 Strategies “ongoing” (in progress):

Strategically enhance MCC’s involvement in community organizations Campus deans lead a large portion of the College's community relationships and continually work to strengthen MCC’s role in the communities it serves. While organizations vary some by community, MCC (through its campus deans and others) are active in Rotary, Chambers of Commerce, Allied Art Council, Interagency Council of Lake Havasu, Kiwanis, ASU Lake Havasu, Goodwill of Northern Arizona, AZ Clause Cause, hospital boards, Club for Youth, Boys and Girls Clubs of Colorado River and more.

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Capitalize on Foundation outreach and events The College’s event, Connecting the Community (ConCom), geared toward connecting college programs and staff to the community and employers for students and citizens, is a good reflection of an opportunity taken to harness the benefit from the College/Foundation partnership collectively.

Conduct ongoing scans of local, state and regional economic trends to anticipate workforce development needs. MCC performs continuous research regarding workforce development needs - utilizing government reports as well as working with area economic development authorities. Examples include the newly-established, credit- bearing truck driving program, the new electrical program starting this fall, and moving several programs (welding, automotive, etc.) to competency- based education to satisfy area needs in an efficient and timely manner.

Work directly with local and county economic development partnerships to provide comprehensive workforce training opportunities and solutions to prospective businesses exploring relocation to the service area. The Office of Instruction performs continuous work with Mohave County communities to provide solutions to workforce needs. Most recently, the Office of Instruction started providing the Arizona Career Readiness Credential (ACRC) at the College for employers and residents. ACRC is a credential that shows employers that candidates possess the soft skills and knowledge for the job. The ACRC program also offers classes if a candidate does not meet the score needed and wants to improve.

Increase and expand opportunities for dual/concurrent high school enrollment. The Office of Instruction continually works with the school districts to ensure optimal dual enrollment and concurrent programs. In fall 2019, MCC is providing four dual enrollment courses online to the Kingman Unified School District and Kingman Academy of Learning as a pilot in hopes of optimizing the educational opportunities offered to high school students.

Design and implement a college transition pathway for at-risk and/or institutionalized youth and adults. MCC’s recruitment team developed a connection with Project Aim, a program for wayward youth currently on probation, promoting a vision of aspiring to be better, instilling strong values and motivating others. MCC recruiters presented educational programs to 10 Project Aim participants in 2018/19. The presentations were well received and ended with a tour of MCC’s Neal Campus - Kingman campus. Project Aim requested MCC’s involvement again when they start their new cohort in fall 2019.

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The College’s Summer Bridge program is a partnership with Mohave County high schools that encourages qualified high school students to move forward with college careers. These courses prepare students for dual enrollment during high school, and/or for college after they graduate. Further, MCC continues to offer “Survive and Thrive” (STU 103) courses for all first-time college students, which prepares students for college-level work.

Further, the College is slated to offer the Culinary Program to inmates at the Arizona State Prison in Kingman this summer with the potential of establishing other offerings in the future.

Drive the development and implementation of a comprehensive plan to address K-12 teacher recruitment and retention in Mohave County In 2016, MCC allocated additional financial resources to the educational program to specifically advance this initiative. Two more instructional faculty were hired (in addition to the one already on staff) and the curriculum, transferability and approach of the program were evaluated and enhanced. Further, the education faculty perform regular outreach to recruit actively and engage students. However, enrollment and interest have remained low in this program, possibly due to wages offered in the K-12 industry.

Promote a calendar of themes and events that promote multicultural awareness to local communities, and secure resources to support these offerings. MCC held and promoted various events to further enhance the communities it serves, including Day of the Dead Celebrations, culinary luncheons, library displays, art shows, heritage months, speaker events (e.g., "The Navajo Code Talkers" and "Cross-Cultural Communication”).

Goal 2 Strategies “not met”:

Explore regional pre-apprenticeship and apprenticeship opportunities.

Establish Operations Plan for Corporate and Community Education

Goal 3: MCC will plan and manage sustainable, quality growth

Objectives: ⋅ Develop and Implement an Integrated Enrollment Management Plan ⋅ Align financial and human resources to the changing needs of the external environment ⋅ Raise external funds to augment College Affordability ⋅ Encourage an internal climate that embraces and implements Core College Values

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⋅ Create a climate that is willing to challenge existing structures and practices to improve outcomes

Goal 3 Strategies “met” (completed):

Use targeted marketing and communication to expand student enrollment in low-penetration and/or underserved populations. The College’s Marketing and Public Information (MPIO) used data from student surveys, the Census and Mohave County Economic Development to help target demographic market areas. MPIO student market surveys identified the top media platforms that current and prospective students use to receive information in the designated market area of the MCC District. Social media and YouTube were the most utilized, followed by more traditional media such as the online and print versions of the local newspapers, local radio, and cable television. MPIO used keyword and geographic targeting on Google Ads, YouTube, Facebook, and Instagram, along with text messages that were geofenced around local high schools.

The targeted digital messaging promoted Career and Technical Education and Allied Health programs to prospective students who were most likely to be identified as those who never considered themselves “college material.” When the prospective student clicked on an MCC ad, their information was downloaded, and they were sent five texts and email messages over the next five weeks. Of the 40 who clicked the ad during the first month, 14 took the next step to fill out the MCC application. Due to the 35% success rate, the automated campaign is being repackaged and refreshed for launch again as an awareness and enrollment tool. MPIO also uses remarketing to target prospective students who click on an ad that led to an MCC landing page on the Mohave.edu website.

From May 2018-May 2019, a total of 204,450 people received MCC ads on social media news feeds, messenger platforms, and game apps. Due to a combination of limited resources and privacy concerns, MPIO is currently unable to digitally track how many of these individuals applied to become students; however, a possible survey of current students is being considered.

Develop a Strategic Technology Plan The College’s Strategic Technology Plan was vetted by Office of the President and completed in fall 2018.

Engage professional fundraising counsel to externally assess the feasibility of a comprehensive campaign. Approximately two years ago, the former executive director of MCC’s College Advancement engaged external counsel to plan a countywide scholarship campaign. Initial planning for the proposed campaign took

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place, but no further action occurred. With the hiring of a new executive director this past spring and the arrival of the new president, this item will be revisited.

Develop a comprehensive professional development plan for all employees. Comprehensive professional development was incorporated into the annual performance review plan. Each employee, with input from the supervisor, makes a professional development goal annually, and identifies tasks, resources and learning opportunities to meet the goal. The documented plan is attached to the performance review. Annual professional development activities are tracked in a database to provide a comprehensive listing.

Goal 3 Strategies “ongoing” (in progress):

Explore and develop options for alternative revenue sources MCC’s Board of Governors voted to begin an active treasury management model that used the State of Arizona Limited Government Investment Pool to increase investment earnings without materially increasing risk. The fund went from investment earnings of $7,990 in 14/15 to $80,647 in 17/18.

Optimize College operations to align with current and emerging community needs while ensuring efficiency of operations The nursing program began the preceptor (instructor) program in which area hospitals agreed to use current nurse employees to supervise students in their clinical rounds, increasing the employer’s ability to hire students who will immediately be familiar with that hospital’s operations. With the career and technical programs converting to competency-based education, an assistant was hired to serve as a conduit between instructors and Student Services to further support the program. Education program faculty expanded from one to three in 2016, and the revamp of the transitional math program was reinforced with three additional faculty.

Explore alternative energy systems and resource conservation efforts to generate new programs, alternative revenue streams, and/or cost savings. The new 600 building at MCC’s Neal Campus – Kingman was built with the capacity to offer electrical instruction on solar and wind technology.

Preserve affordability while investing in innovation to ensure long-term College stability Fiscal year 2019/20 will be the fourth year in a row that the college maintained the same tuition rate. In 2017, the College established competency-based programs in the career and technical education realm, providing students an efficient pathway to completion and availing the College an opportunity to increase enrollment.

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Align staffing to match College operational needs and strategic plan priorities. Staff and additional resources were added for the developed and implemented competency-based programs, the education program as well as truck driving. Staff and faculty were also added/repurposed for a redesign of the transitional math program.

Develop and implement a new Master Facilities Plan to improve the physical and learning environments of the College The Master Facilities Plan for the Lake Havasu City campus was updated in 2017 and again this year to include renovations and refreshes that recently occurred as well as those that are still in progress. Also included were future needs such as roof and air conditioner replacements as well as an upgrade of the flooring, ceiling, technology and cabinetry in the science labs.

In Kingman, the master facility plan was last updated this year. Future projects include outdoor lighting replacement, roof replacement and updating an outdated HVAC system in 100 and 200 buildings. For the Bullhead City Campus, the master facilities plan was updated in 2017. However, much of the references in that plan date back to 2007.

The College needs a new plan going forward using fresh environmental scan information. Going forward, the Bullhead City Campus has proposed the addition of restrooms and building remodel in the quads and a replacement of the 313-314 trailer for use as a welding space.

Develop succession planning for key positions in each division of the institution The process for creating standardized job competency maps started with the Continuous Strategic Improvement Committee with departmental input; however, the process is not final. The “flatness” and the “leanness” of MCC’s organizational structure makes it difficult to identify meaningful career pathways between jobs

Prioritize the safety of the campus and the security of students and staff The campus deans have prioritized the safety of students, staff, and faculty as well as the College by making safety, communication and emergency trainings available; some required regularly. Trainings included NARCAN, Stop the Bleed, OSHA safety standard, de-escalation, domestic violence awareness and how to use equipment and tools (e.g. shut off valves, fire extinguishers, first aid kits, etc.), CPR classes and lockdown drills. Campuses also conducted annual building vulnerability assessments as well as tests of the notification system. Each campus maintains a Crisis Management Plan that is reviewed regularly should an emergency arise.

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Develop and maintain Process & Communications Plan with the goal of ensuring consistency and timeliness While there is no official plan in place currently, the College’s committee structure is evaluated at least annually to ensure communications and processes are optimal. College committees reviewed and many refocused their missions and membership structure in spring of 2019. Further, MCC Connect, the College’s Call Center, reviews college communications coming into the Call Center as well as customer service at the front desk regularly.

Goal 3 Strategies “not met”:

Cultivate an inclusive college climate that recognizes, respects, and celebrates local and global multiculturalism and integrates application of these principles across the institution.

Develop an Annual Grant Development Plan that is based on the College’s Strategic Action Plan

Develop a Recruitment/Retention Plan for College employees

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Conclusion

This review of the 2016 – 2020 MCC Strategic Plan allows for significant reflection, ultimately providing a jumping off point to move the College forward under a refreshed direction and approach. Lessons learned and cumulative outcomes will serve as a substantial resource as research, planning and collaboration.

While there are limitations in the current plan, the College was steadfast in its mission of being “a learning-centered institution, serving all constituencies, inspiring excellence through innovation and empowering students to succeed.” This advancement is evident in the numerous items accomplished to this point under the 2016 – 2020 Strategic Plan.

MCC remains dedicated to serving Mohave County citizens, ensuring that higher education is accessible and degree attainment is achievable, ultimately contributing to the economic growth and resilience of the area.

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Appendix A Steps to Prepare the Plan

Summer 2015 MCC began the 2016 - 2020 Strategic Plan by conducting an Environmental Scan of the College’s service area.

Fall 2015 The College engaged students, staff, faculty, and community groups in a series of facilitated conversations.

Winter 2015 District Governing Board reviewed progress, crafted vision statement for the 2016 – 2020 Strategic Plan.

Spring 2016 MCC further refined the Strategic Plan with developed metrics

Fall 2016 2016 – 2020 MCC Strategic Plan implemented

18 EXCERPT JANUARY 11, 2019 MCCCDGB MEETING MINUTES

A. 2019-2020 Tuition and Fees (Stithem)(Appendix 5)

Interim President Stithem proposed no changes to tuition rates for 2019-2020, based on how the budget is developing thus far. Changes to course fees were minimal, if at all, and primarily reflect pass through expenses.

Type of Student Cost (per credit hour)

In-state students $81.00 Out-of-state students $283.50 Western Undergraduate Exchange $121.50 Active Duty Military $121.50

Western Undergraduate Exchange: Eligible states are Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. Technology, laboratory, and course fees are the same as for in-state students. MCC excludes Allied Health courses with the following prefixes from the WUE rate: DEH, EMS, NUR, PTA, RAD, and SGT. WUE students in these programs must pay out-of-state tuition.

First Time Student Tuition Rate: To provide an opportunity for those who might not otherwise “try out” college, MCC offers first-time students a one course tuition rate of 50% of the approved tuition per credit hour. All fees for credit courses (technology fees, lab fees, etc.) are set at 100%. Only applicable on select courses.

Active Duty Military Only: MCC has created a military-friendly environment by setting tuition for active duty military only that will be no higher than the established MCC Western Undergraduate Exchange (WUE) rate. MCC excludes Allied Health courses with the following prefixes from the WUE rate: DEH, EMS, NUR, PTA, RAD, and SGT.

Senior Citizen Tuition Rate: A Senior Citizen Tuition Rate applies to students who meet Arizona state residency requirements and are at least 62 years of age at the time of registration. Tuition for credit courses is set at 50% of the regular tuition as set by the Governing Board. All fees for credit courses (technology fees, lab fees, etc.) are set at 100%.

Vance Miller moved, Ashley Pascual, to approve the 2019-2020 tuition rates as outlined above and the 2019-2020 fees as presented in the appendix. Without further discussion, the motion carried 5-0 (Bare, McAlpine, Miller, Pascual, Selberg).

JLBC - Monthly Fiscal Highlights May 2019

Summary 1716 W. Adams Phoenix, AZ 85007 income tax payments and refunds through April General Fund revenues totaled $1.24 May. Phone: billion, which was the highest amount of (602) 926-5491 General Fund revenues ever recorded for Month-to-date May data shows a large spike in the month. This amount represented a 4.0% final IIT estimated and final payments. Through increase compared to the prior year and May 14, the Department of Revenue processed was $(5.9) million below the January Baseline $313.2 million of estimated and final IIT forecast. payments, compared to just $38.3 million during the same time-period last year. Table 1, below, April Individual Income Tax (IIT) collections, displays IIT payment collections from April 1 which mostly represent final income tax through May 14. payments resulting from tax filing season, were $(54.0) million below forecast. Within Table 1 IIT, withholding collections exceeded the April/May Estimated and Final

Baseline forecast by $31.6 million while lower Payments (Through 5/14) www.azleg.gov/jlbc.htm than expected refunds generated a forecast $ in M gain of $20.7 million. FY '18 622

FY '19 (Forecast) 733 Estimated and Final payments, which FY '19 (Actual) 916 "April General represent the largest source of IIT collections in April due to tax filing season, produced a Fund revenues forecast loss of $(106.3) million. This loss, As noted in prior Monthly Fiscal Highlights, the however, is due to processing delays which state experienced a sharp decline in estimated totaled $1.24 appear to have pushed a significant amount individual income tax payments in December of payment deposits into May, as discussed 2018/January 2019. At the time, the JLBC Staff billion, which below. noted that federal tax law changes may be affecting taxpayer filing behavior, as the $10,000 State and Local Tax (SALT) Deduction was the The net $(54.0) million loss associated with IIT was mostly offset by gains of $25.3 million of cap reduces the incentives for high income individuals to make final payments in advance. highest corporate income tax collections and $14.4 million of insurance premium tax collections. Prior to the SALT cap, taxpayers may have preferred to transmit a larger estimated amount of Year-to-date through April, excluding Urban payment by the end of December to claim a deduction on the following April's tax return. This General Fund Revenue Sharing and fund transfers, FY 2019 General Fund revenues are 5.8% above the theory would have indicated that April/May prior year and are $(124.7) million below the final payments may be higher than in prior Revenues ever January Baseline forecast. years.

recorded for Preliminary May Revenue Results The huge increase in May individual income tax While income tax returns are due in mid-April, payments suggests that taxpayers may have the month." the state continues to process individual

Table of Contents

Summary • AG – Internet Crimes • April FAC Summary ...... 1 • AG – Legal Settlements • Classroom Site Fund Report ...... 2 • This report has been Commerce – Healthy Forest Program prepared for the Arizona March Revenues ...... 2 • Legislature by the Joint Treasurers' – Gov Prop Lease Excise Tax Legislative Budget Monthly Indicators ...... 5 Committee Staff on Arizona Economic Trends ...... Appendix A April 22, 2019. JLBC Summary ...... 8 Summary of Recent Agency Reports • AG – Advocacy Fund Expenditures ...... 9

2 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Summary (Continued)

indeed shifted some of their estimated payments from revenue, General Fund revenues would need to December/January to final payments in April/May. end the year $155.0 million above forecast.

Collections Relative to April FAC /Conformity Given the strong revenue results for the beginning In the April version of the Monthly Fiscal Highlights, we of May, the JLBC Staff believes it is increasingly likely discussed the April Finance Advisory Committee (FAC) that General Fund revenues will meet this target. forecast. The April FAC 4-sector forecast had projected that FY 2019 General Fund revenues would end $(84.0) April Fund Balances million below the Baseline forecast. The operating fund balance consists of the General Fund and certain dedicated funds. The operating Neither the April FAC or January Baseline forecasts balance as of mid-May 2019 is $2.78 billion. accounted for additional revenues generated as a result of conforming to the federal tax code for tax year 2018. In addition, the state Budget Stabilization Fund (BSF) The JLBC Staff has projected that conforming would has a balance of $440.7 million. This amount is lower generate $155 million in FY 2019 above the forecast. than the typical balance (approximately $460 While Arizona has yet to enact a tax conformity bill for million), due to the Department of Public Safety's tax year 2018, the Department of Revenue (DOR) issued usage of BSF bridge loan authority. This bridge loan tax forms assuming that the state would conform. Thus, was authorized by the FY 2019 budget. the JLBC Staff anticipated that conformity revenues would largely be collected during tax filing season.

Because this conformity revenue is not included in either forecast, in order to meet the January Baseline forecast and to collect the full amount of projected conformity

April Revenues

Table 2 General Fund Revenues ($ in Millions)

FY 2019 Difference From Difference Collections Baseline Forecast From FY 2018 April $ 1,238 $ (5.9) $ 47.4 Year-to-Date $ 8,694 $ (124.7) $ 636.5

compared to 3.6% in the last 4 months. Prime Sales Tax collections of $471.9 million were 6.4% contracting tax revenue increased, year over above April of last year and $13.2 million above the year, by 9.6% in April and is up by 15.6%, year to forecast for the month. April tax collections reflect date. This category is fueled by strong sales activity in March. Year-to-date, sales tax construction activity in the state. Growth in use collections are 6.5% above the prior year and $14.0 tax collections increased by 25.1% in April and is million above forecast. currently on track to have its best year since FY 2015 when this category grew by 19.1%. Tax collections by category for April are shown in Table 3. The 5 major categories of the state’s sales tax in the Table 3 table account for approximately 90% of total Sales Tax Growth Rates collections. Compared to Prior Year

April YTD The retail classification, which represents half of total Retail 4.0% 5.7% sales tax collections, increased by 4.0% in April Contracting 9.6% 15.6% compared to the same month in the prior year. Use 25.1% 10.6% Growth in retail tax collections has slowed over the Restaurant & Bar 9.2% 6.1% last 4 months. During the first 6 months of the current Utilities (1.3)% 0.7% fiscal year, the retail sales tax increased by 7.3%

3 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

March Revenues (Continued)

Individual Income Tax net revenues of $658.2 million in to the delay in receiving April data, April collections April were $(54.0) million below forecast for the month. are reported at forecast. Year-to-date, Individual Income Tax revenues are 2.3% above the prior year and $(169.9) million below forecast. The Lottery Commission reports that April ticket sales As noted earlier, the May results will likely eliminate this were $90.0 million, which is $7.1 million, or 8.6% above year to date shortfall. sales in April 2018. Year-to-date, ticket sales are

$899.5 million and 9.8% above the prior year. April estimated and final payments of $603.0 million were

3.3% above last year and $(106.3) million below forecast. Highway User Revenue Fund (HURF) collections of

$137.9 million in April were up 3.8% compared to April Individual income tax payments have declined (10.0)% of last year and were $1.7 million above the forecast. year-to-date. The year-to-date decline in individual Year-to-date, collections have increased by 4.5% income tax payments is mostly the result of December above the prior year and are $24.8 million above and January, when payments declined by (51.8)% from forecast. the prior year. (See the February Monthly Fiscal Highlights for more information on the Due to delays in reporting final March revenues for December/January payment decline). various revenues sources, DOR has made technical adjustments to prior month collection figures. For As indicated in Table 4, April withholding revenues of February, DOR has increased the amount of prior $424.1 million were 9.7% above last year and $31.6 General Fund revenue collections by $(11,900) and million above the forecast. Withholding has grown by the adjustment has been included in the reported 6.0% year-to-date. year-to-date results.

April Individual Income Tax refunds totaled $(368.8) million, which compares to $(387.3) million from last year. With a forecasted refund level of $(389.5) million, the lower level of refunds produced a forecast gain of $20.7 million.

Table 4 Individual Income Tax Growth Rates Compared to Prior Year April YTD Withholding 9.7% 6.0% Estimated/Final Payments 3.3% (10.0)% Refunds (4.8)% (0.6)%

Corporate Income Tax net collections were $97.9 million in April, an increase of $21.0 million, or 27.4%, from a year ago and $25.3 million, or 34.8%, above forecast. Year-to-date net collections are 42.3% above the previous fiscal year.

Insurance Premium Tax net collections were $38.3 million in April, $(88.3) million below the same month last year but $14.4 million above forecast. The large year-over- year decline is the result of a timing issue with April and May payments last year.

In March, tobacco tax revenues were $1.4 million. This amount is $(0.5) million below the prior year and $(0.1) million below the forecast. Liquor collections during the month were $3.2 million. This amount is $0.3 million, or 10.8% above March 2018 and $0.1 above forecast. Due

Table 4

General Fund Revenue: Change from Previous Year and Baseline Forecast April 2019

Current Month FY 2019 YTD (Ten Months) Change From Change from Actual April 2018 Baseline Forecast Actual April 2018 Baseline Forecast April 2019 Amount Percent Amount Percent April 2019 Amount Percent Amount Percent Taxes Sales and Use $471,874,785 $28,485,976 6.4 % $13,234,537 2.9 % $4,224,330,690 $259,381,619 6.5 % $13,956,388 0.3 % Income - Individual 658,209,322 74,955,606 12.9 (54,031,199) (7.6) 3,860,399,885 86,267,419 2.3 (169,870,117) (4.2) - Corporate 97,868,668 21,035,622 27.4 25,276,994 34.8 369,502,201 109,819,289 42.3 21,989,044 6.3 Property 5,898,025 1,911,391 47.9 827,139 16.3 24,704,196 (1,725,687) (6.5) (446,404) (1.8) Luxury - Tobacco 1,677,786 (105,798) (5.9) 0 -- 17,401,763 (883,676) (4.8) 16,531 0.1 - Liquor 3,583,338 175,354 5.1 0 -- 31,132,975 1,190,916 4.0 129,466 0.4 Insurance Premium 38,271,679 (88,316,004) (69.8) 14,445,364 60.6 402,404,867 18,541,160 4.8 9,388,460 2.4 Other Taxes 1,050,106 (162,295) (13.4) (955,306) (47.6) 12,083,396 6,102,290 102.0 1,819,472 17.7

Sub-Total Taxes $1,278,433,709 $37,979,852 3.1 % ($1,202,470) (0.1) % $8,941,959,973 $478,693,330 5.7 % ($123,017,159) (1.4) %

Other Revenue Lottery 6,780,270 5,161,145 318.8 0 -- 82,886,077 29,950,715 56.6 3,750,285 4.7 License, Fees and Permits 1,949,017 273,860 16.3 (520,140) (21.1) 26,504,573 (6,052,110) (18.6) (2,449,848) (8.5) Interest 29,299 26,558 -- 23,991 452.0 1,553,142 1,293,330 497.8 21,833 1.4 Sales and Services 1,916,039 (370,665) (16.2) 37,626 2.0 29,921,311 3,721,202 14.2 1,552,463 5.5 Other Miscellaneous 803,391 1,411,529 -- (2,827,500) (77.9) 12,913,728 (4,628,800) (26.4) (5,576,856) (30.2) Disproportionate Share 0 0 -- 0 -- 0 0 -- 0 -- Transfers and Reimbursements 195,589 (1,466,613) (88.2) (1,419,039) (87.9) 27,933,388 (3,588,244) (11.4) 991,776 3.7

Sub-Total Other Revenue $11,673,604 $5,035,814 75.9 % ($4,705,062) (28.7) % $181,712,219 $20,696,093 12.9 % ($1,710,347) (0.9) %

TOTAL BASE REVENUE $1,290,107,313 $43,015,666 3.4 % ($5,907,532) (0.5) % $9,123,672,193 $499,389,423 5.8 % ($124,727,506) (1.3) %

Other Adjustments Urban Revenue Sharing (56,233,703) 497,137 (0.9) (0) 0.0 (562,337,031) 4,971,369 (0.9) (0) 0.0 One-Time Transfers 0 0 -- 0 -- 98,358,056 97,458,056 -- 0 0.0 Public Safety Transfers 3,851,318 3,851,318 -- (0) (0.0) 34,661,862 34,661,862 -- (0) (0.0)

Sub-Total Other Adjustments (52,382,385) 4,348,455 (7.7) % (0) 0.0 % (429,317,113) 137,091,287 (24.2) % (0) 0.0 %

TOTAL GENERAL FUND REVENUE $1,237,724,928 $47,364,121 4.0 % ($5,907,533) (0.5) % $8,694,355,080 $636,480,710 7.9 % ($124,727,506) (1.4) %

Non-General Funds

Highway User Revenue Fund 137,885,675 5,102,974 3.8 % 1,744,252 1.3 % 1,264,264,312 54,447,763 4.5 % 24,809,751 2.0 %

5 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Monthly Indicators

NATIONAL workweek of production workers and building permits were the only 2 to make neutral contributions. According to the U.S. Department of Commerce Bureau of Economic Analysis' first and initial estimate, the U.S. ARIZONA Real Gross Domestic Product (GDP) increased at an annual rate of 3.2% in the first quarter of 2019. This was Housing up from 2.2% real GDP growth in the prior quarter. The Single-family housing construction is increasing. In strong growth in the first quarter of CY 2019 was primarily March, Arizona’s 12-month total of single-family attributable to net exports, inventory investment and building permits was 31,722, or 12.6% more than a year government consumption and gross investment. These ago. The comparable single-family permit growth rate factors more than offset the effect of a reduction in for the entire U.S. was only 1.0%. growth of personal consumption expenditures. The 12-month total of multi-family building permits has The Conference Board’s U.S. Consumer Confidence been up and down. In March, Arizona’s total of 9,308 Index, which is based on consumers' perceptions of multi-family building permits was (12.2)% less than in current conditions, as well as their expectations 6 months 2018. Nationwide multi-family permits were 2.4% more into the future, increased by 4.0%, or 5.0 points, from than in 2018. 124.2 in March to 129.2 in April. This was a reversal of the large decline of (7.2) points in March, which was likely Tourism related to the weak February jobs report. The labor Revenue per available room was $137.12 in March, index, which is calculated as the percentage of 4.4% above the same month in the prior year. respondents who think that jobs are plentiful minus the percentage who think that jobs are difficult to find, rose Ridership through Phoenix Sky Harbor Airport during the by 4.8 points in April to a net value of 33.5, slightly below month increased 4.7% above March 2018. the values reported for January and February. Employment According to the U.S. Department of Commerce Bureau According to the latest employment report released by of Economic Analysis, the U.S. Personal Consumption the Office of Economic Opportunity (OEO), the state Expenditure (PCE) Price Index increased by 0.2% from added 12,500 net new nonfarm jobs in April compared February to March. Compared to March 2018, the price to the prior month. This was significantly above the 10- index is up by 1.5%. The "core" PCI price index excludes year average net job gain for April of 6,800 jobs. Most food and energy prices and is the Federal Reserve's of the month-over-month job gains occurred in the (Fed) preferred inflation measure. This core index Construction industry and Leisure and Hospitality sector, increased year over year by 1.6% in March, which is which added 3,900 and 2,400 net new jobs, below the Fed's inflation target of 2.0%. respectively.

Consumer prices, as measured by the U.S. Consumer Compared to the same month in the prior year, Price Index (CPI), increased 0.3% in April and increased Arizona added 78,900 net new jobs in April, which is a 2.0% above April 2018 prices. The monthly energy index year-over-year increase of 2.8%. The average net increase of 2.9% accounted for the majority of the employment increase in the first 4 months of calendar increase, driven by a 5.7% increase in the gasoline index. year 2019 is 74,700. The largest year-over-year job For the first time since June 2017, the food index saw a gains in April came from the following industries: monthly decrease. Core inflation (all items less food and Construction (+20,200), Education and Health Services energy) increased 0.1% for the month. The indexes for (+18,000), and Professional and Business Services shelter, medical care, and education increased for the (+13,800). month. The indexes for used vehicles, apparel, and furnishings saw monthly decreases. The state’s seasonally adjusted unemployment rate declined from 5.0% in March to 4.9% in April. The state's The Conference Board's U.S. Leading Economic Index jobless rate was 4.8% in April 2018. The U.S. increased 0.4% in March to 111.9 and is 3.1% above its unemployment rate was 3.6% in April, which was (0.2)% March 2018 reading. The increase was broad-based, lower than in the prior month. with positive contributions in 8 of 10 indexes. The largest positive contributor was average weekly unemployment The U.S. Bureau of Labor Statistics releases estimates insurance claims index. Continuing a 6-month trend, the quarterly for a broader measure of labor stock prices index made a weaker positive contribution underutilization called the total unemployment rate. than it historically has. The indexes for average Besides the “regularly” unemployed, the measure also

6 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Monthly Indicators (Continued)

includes persons who are available to work but stopped 1.7% higher than a year ago. The federal share of this looking for a job (“discouraged workers”), and population's cost was reduced to 93% in January persons who had to settle for part-time employment 2019. (“underemployed workers”). Based on information the Department of Child Safety The Arizona rate averaged 9.0% during from the second provided for March 2019, reports of child quarter of 2018 through the first quarter of 2019. This maltreatment totaled 46,243 over the last 12 months, rate is (0.1)% below the reading issued for the prior a decrease of (2.7)% over the prior year. There were period. The state’s 9.0% rate was the sixth highest of any 13,896 children in out-of-home care as of February state. The national average for the measure was 7.6% 2019, or (7.8)% less than in February 2018. Compared during the quarter. to the prior month, the number of out-of-home children increased by 0.5% OEO reported that 23,399 initial claims for unemployment insurance were filed in April, a decrease The inmate population was 42,314 as of April 30, of (2.3)% compared to the same month last year. 2019. This was a 0.5% increase from March 31, 2019 and a 0.7% increase since April 2018. According to OEO, the state had a total of 20,972 claimants receiving unemployment insurance benefits According to the most recent information from the in April, an increase of 21.1% from March. This figure is Administrative Office of the Courts, the Maricopa (12.5)% below the April 2018 level. County probation caseload was 28,225 as of March 2019. This was a decrease of (112) below the prior Average Weekly Hours month, and a decrease of (439) since last March. In In March, the Average Weekly Hours worked by addition, the state's non-Maricopa County probation individuals in Arizona’s private sector was 34.5 hours. This caseload was 19,168. This was an increase of 134 was the same as the prior month, and (1.1)% below the above the prior month, and a decrease of (6) since level in March 2018. last March. These figures represent standard and intensive probation caseloads, including both adult Average Hourly Earnings and juvenile probation. The Average Hourly Earnings received by private sector workers in March was $25.77, which was (0.3)% below There were 12,676 TANF recipients in the state in the average in the prior month. Year-over-year growth February, representing a (2.6)% monthly caseload in earnings increased from 0.6% in February to 1.3% in decrease from February. The year-over-year number March. of TANF recipients has declined by (12.5)%. The statutory lifetime limit on cash assistance is 24 months. State Agency Data At the beginning of May 2019, the total AHCCCS The Supplemental Nutrition Assistance Program caseload was 1.82 million members. Total monthly (SNAP), formerly known as Food Stamps, provides enrollment grew was flat in May and was 1.3% higher assistance to low-income households to purchase than a year ago. Parent and child enrollment in the food. In February, 803,786 people received food Traditional population declined by (0.1)% in May and stamp assistance in the state, representing a (1.8)% was (0.7)% lower than a year ago. decrease below February caseloads. Compared to March 2018, the level of food stamp participation has Through May 1, 2019, enrollment in the KidsCare declined by (5.4)%. program was 34,316, an increase of 1.0% from the month prior and 19.3% above last year.

In January 2014, the state started accepting new enrollment to the Proposition 204 childless adults program. In May 2019, growth in the childless adult population was flat. At 320,300, this population is 4.8% higher than a year ago.

The state also opted to expand adult Medicaid coverage to 133% of FPL. Their enrollment declined by (0.4)% in April and totals 77,500 individuals. Enrollment is

7 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Table 6 MONTHLY INDICATORS Change From Change From Indicator Time Period Current Value Prior Period Prior Year Arizona Employment - Regular Unemployment Rate April 4.9% (0.1)% 0.1% - Total Unemployment Rate 1st Q 2019 9.0% (0.1)% (0.3)% (discouraged/underemployed) - Initial Unemployment Insurance Claims April 23,399 59.1% (2.3)% - Unemployment Insurance Recipients April 20,972 21.1% (12.5)% - Non-Farm Employment - Total April 2,931,400 0.4% 2.8% Manufacturing April 174,900 0.3% 4.0% Construction April 175,100 2.3% 13.0% - Average Weekly Hours, Private Sector March 34.5 0.0% (1.1)% - Average Hourly Earnings, Private Sector March $25.77 (0.3)% 1.3% Building - Residential Building Permits (12- month avg) Single-family March 31,722 0.3% 12.6% Multi-family March 9,308 5.3% (12.2)% - Maricopa County/Other, Home Sales (ARMLS) Single-Family March 5,972 0.6% 1.1% (Pending Sales) - Maricopa County/Other, Median Home Price (ARMLS) Single-Family (Pending March $285,000 0.0% 5.4% Sales) - Phoenix S&P/C Home Price Index (2000 = 100) February 187.44 0.1% 6.7% - Maricopa Pending Foreclosures March 2,619 (0.5)% (8.5)% - Greater Phoenix Total Housing Inventory, (ARMLS) March 23,164 (0.5)% 6.7% Tourism - Phoenix Sky Harbor Air Passengers March 5,178,375 26.7% 4.7% - State Park Visitors April 329,549 (1.8)% - Revenue Per Available Hotel Room March $137.12 18.5% 4.4% General Measures - Arizona Leading Index – 6-month projected growth March 4.9% 3.9% 1.0% - Arizona Personal Income 4th Q 2018 $319.9 billion 1.5% 5.9% - Arizona Population July 2018 7,171,646 N/A 1.7% - State Debt Rating Standards & Poor’s/Moody’s May AA / Aa2 N/A N/A Outlook May Stable N/A N/A Agency Measures - AHCCCS Recipients May 1st 1,821,532 0.0% 1.3% Acute Care Traditional 1,025,768 (0.1)% (0.7)% Prop 204 Childless Adults 320,253 0.0% 4.8% Other Prop 204 186,282 0.1% 2.6% Adult Expansion 77,488 (0.4)% 1.7% Kids Care 34,316 1.0% 19.3% Long-Term Care – Elderly & DD 64,903 0.5% 5.1% Emergency Services 112,522 0.3% 0.8% - Department of Child Safety (DCS) Annual Reports of Child Maltreatment (12-month March 46,243 (0.9)% (2.7)% total) February 13,896 0.5% (7.7))% DCS Out-of-Home Children Filled Caseworkers (1406 Budgeted) March 1,291 (13) (25) - ADC Inmate Growth April 42,314 0.5% 0.7% - Department of Economic Security - TANF Recipients March 12,676 (2.6)% (12.5)% - SNAP (Food Stamps) Recipients March 803,786 (1.8)% (5.4)% - Judiciary Probation Caseload Non-Maricopa March 19,168 134 (6) Maricopa County March 28,225 (112) (439) United States - Gross Domestic Product 1st Q, 2019 (1st $18.9 trillion 3.2% 3.2% (Chained 2012 dollars, SAAR) Estimate) - Consumer Confidence Index (1985 = 100) April 129.2 4.0% 2.9% - Leading Indicators Index (2016 = 100) March 111.9 0.4% 3.1% - Consumer Price Index, SA (1982-84 = 100) April 255.0 0.3% 2.0% - Personal Consumption Expenditure Price Index March 109.2 0.2% 1.5% (2012 = 100)

8 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

JCCR Summary

At its April 2019 meeting, the Joint Committee on Rio Nuevo District – Presentation of Projects – The Capital Review considered the following issues: Committee gave a favorable review of the Rio Nuevo District's presentation of 3 projects, which included a Regular Agenda mixed-use retail and residential development, a new hotel, and Tucson Convention Center ice Joint Committee on Capital Review – Adoption of improvements. The District's board has agreed to Committee Rules and Regulations – The Committee spend up to $12.4 million on these projects. The adopted rules and regulations. The rules are favorable review included a provision stating the unchanged from the prior session. statutory requirement for presentation has only been met for projects with executed development Arizona State University – Consider Approval of Durham agreements currently in place. Language and Literature Building Renovation Financing Project – The Committee approved a Consent Agenda $65,000,000 bond issuance for the renovation of the Durham Language and Literature Building on Arizona Arizona Exposition and State Fair Board – Review of FY State University's Tempe Campus, which will 2019 Capital Improvement Expenditures – The encompass the entire interior and exterior structure of Committee gave a favorable review of $590,000 from the building. The debt service will be paid 50% with the agency's fund for 5 projects, which include drywall tuition and 50% with Capital Infrastructure Fund ($1 repairs and purchasing forklifts, security cameras, billion bonding) appropriations. The favorable review walk-through metal detectors, and folding tables. included standard university financing provisions. These monies were appropriated to the agency in FY 2019 for capital projects. The favorable review Arizona State University – Review of Student Housing included provisions that repeated conditions from a Indirect Financing Project – The Committee gave a prior review and reporting requirements. favorable review of a 2-acre ground lease with a private vendor for the development of a $31,000,000 Arizona State Parks Board – Review of new FY 2019 student housing facility on Arizona State University's Capital Improvement Projects and Reallocation of Polytechnic (East) Campus. The private vendor will Prior Year Capital Funding – The Committee gave a construct and maintain the facility and provide ground favorable review of $300,000 to fund the master payments and staffing costs to the university. The planning process for the Buckskin State Park and favorable review included a standard university Oracle State Park and $1,383,300 for 5 new capital financing provision. projects, which include cabin installation, HVAC and backup generator replacement, installation of fire Department of Public Safety – Review of Remote alarm and fire suppression systems, installation of Housing Replacement – The Committee gave a fencing and guard railing, and other health and safety favorable review of $2,000,000 ($1,200,000 from the projects. These projects will be funded from monies General Fund and $800,000 from the State Highway appropriated from the State Parks Revenue Fund and Fund) to purchase and install 4 modular homes and Lake Improvement Fund and Federal Funds. The purchase 2 existing residential homes for highway favorable review included provisions with reporting patrol troopers. The expenditure plan includes requirements. demolition of an existing home and a contingency allocation. The favorable review included provisions Arizona Department of Transportation – Review of with reporting requirements. Spreader Rack Bay Replacements and Repairs – The Committee gave a favorable review of $1,720,000 Arizona Department of Administration – Review of FY from the State Highway Fund to replace inadequate 2019 Capital Mall Consolidation Fund Expenditures and spreader racks and repair functional racks on Capital Mall Renovation Plan – The Committee gave a snowplows for de-icing operations. These monies were favorable review of $9,000,000 from the Capital Mall appropriated to the agency in FY 2019 for capital Consolidation Fund, which includes major renovations projects. to the 1400 W. Washington building in Phoenix. The favorable review also included review of the agency's plans to turn two vacant Capitol Mall buildings into parking lots and a provision that the Committee's review is contingent upon making the agency's appropriation from the Capitol Mall Consolidation Fund non-lapsing through FY 2021.

9 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Summary of Recent Agency Reports

Attorney General – Quarterly Report on Child and In the third quarter of FY 2019, the AG deposited a Family Advocacy Center Fund Expenditures – Pursuant total of $45.8 million into various consumer accounts. to A.R.S. § 41-191.11, the Attorney General (AG) Of that amount, $22.0 million was deposited into the submitted its quarterly report on expenditures from the CPCF Revolving Fund, $180,000 into the Antitrust non-appropriated Child and Family Advocacy Center Enforcement Revolving Fund, $2.1 million into the Fund (CFAF), which funds nonprofit and government Consumer Restitution Subaccount, and $21.5 million entities that serve victims of child abuse or investigate into the Consumer Remediation Subaccount. The AG and prosecute their abusers. made no deposits to the General Fund.

Through the third quarter of FY 2019, the AG has Deposits to the CPCF Revolving Fund received $50,000 of its $100,000 FY 2019 General Fund The AG deposited $22.0 million in the third quarter of appropriation to the fund. The AG has not yet FY 2019 into the appropriated CPCF Revolving Fund, expended any of these funds. (Adam Golden) which may be used for consumer fraud education and investigation, costs associated with the Tobacco Attorney General – Quarterly Report on Internet Crimes Master Settlement Agreement, or any other purpose Against Children Enforcement Fund Expenditures – permitted by statute. Of the total, $17.1 million Pursuant to A.R.S. § 41-199, the Attorney General (AG) resulted from a settlement with Wells Fargo Bank, $2.6 submitted its quarterly report on expenditures from the million from unclaimed restitution funds from the Internet Crimes Against Children (ICAC) Enforcement settlement with Volkswagen Group of America Inc., Fund and progress made towards ICAC goals. The and $781,300 from a settlement with Uber ICAC Enforcement Fund was created in FY 2015 with Technologies, Inc. Small legal settlements of less than an annual deposit of $900,000 in revenues from lottery $250,000 contributed an additional $470,500. The games that are sold from a vending machine in age remaining $7,300 came from transfers into the fund. restricted areas. Monies in the fund are utilized to support the ICAC Task Force, which is housed within the Wells Fargo Phoenix Police Department and works with federal, In December 2018, the attorneys general of all 50 state, and local law enforcement to investigate states settled a lawsuit against Wells Fargo for alleged technology-facilitated sexual exploitation of children. misconduct, including accounts opened without customer knowledge and improperly charged Through the third quarter of FY 2019, the AG has mortgage fees. Arizona’s share of the settlement received $450,000 in lottery revenues for deposit into totals $37.1 million. Of this amount, the agreement the ICAC Enforcement Fund. A total of $304,900 was requires $17.1 million to be deposited into the CPCF expended from the fund balance in the third quarter Revolving Fund and the remaining $20 million into the of FY 2019 to help pay for the operating costs of the Remediation Subaccount of the Consumer Restitution ICAC Task Force. and Remediation Revolving Fund.

The FY 2019 expenditure plan for the ICAC Uber Enforcement Fund allocates monies to fund 4 positions This past September, Arizona, along with the other 49 within the Phoenix Police Department; 2 positions within states and District of Colombia, reached a settlement the AG office; equipment costs including computers, with Uber over the company's alleged violations of forensic tools, and other information technology; law state consumer fraud laws. As a result of the enforcement training; and other operational costs. settlement, the Attorney General received a total of $2,795,900, of which $57,100 was paid directly to the As of March 31, 2019, the ICAC Enforcement Fund had NAGTRI Endowment Fund, $1.8 million was deposited a fund balance of $2,465,800 and no outstanding into the Restitution Subaccount of the Consumer encumbrance. (Adam Golden) Restitution and Remediation Revolving Fund, and $981,300 in to the CPCF Revolving Fund. Of the Attorney General – Quarterly Reports on Legal $981,300 deposit, $200,000 is being used to pay for Settlements – The Attorney General (AG) submitted its third-party administrator fees for restitution statutorily-required quarterly reports on the receipts to disbursements. and disbursements from the Consumer Protection - Consumer Fraud (CPCF) Revolving Fund, the Antitrust Deposits to Antitrust Enforcement Revolving Fund Enforcement Revolving Fund, and the Consumer The AG deposited $180,000 in the third quarter of FY Restitution and Remediation Revolving Fund (including 2019 into the appropriated Antitrust Enforcement its 2 subaccounts), as well as deposits made to the Revolving Fund, which may be used for antitrust General Fund. enforcement expenses, excluding attorney

10 JLBC – MONTHLY FISCAL HIGHLIGHTS – MAY 2019

Summary of Recent Agency Reports

compensation. All these funds resulted from small legal the Joint Legislative Budget Committee (JLBC) by settlements of less than $250,000. February 15 of each year the amount of Government Property Lease Excise Tax (GPLET) collected in the Deposits to the Consumer Restitution Subaccount preceding calendar year. The AG deposited $2.1 million in the third quarter of FY 2019 into the non-appropriated Consumer Restitution GPLET was enacted in 1996 (Laws 1996, Chapter 349) Subaccount to compensate specific entities for to allow cities, towns, counties and county stadium economic loss resulting from consumer fraud. Of that districts ("government lessors") to lease property that amount, $1.8 million resulted from the Uber settlement they own to private parties ("prime lessees") for discussed above, $351,900 from small legal settlements commercial, residential rental, or industrial purposes of less than $250,000, and the remaining $23,400 from for at least 30 days. interest income. Because the Arizona Constitution exempts federal, Deposits to the Consumer Remediation Subaccount state, county, and municipal property from taxation, The AG deposited $21.5 million in the third quarter of FY government lessors do not have to pay any property 2019 into the partially-appropriated Consumer taxes. Instead, the prime lessees are required to pay a Remediation Subaccount, which is used to rectify GPLET on the building ("government property violations of consumer protection laws. Of the total, improvement") that they lease from the government $20.0 million resulted from the Wells Fargo settlement lessor. Unlike the property tax, GPLET is based on discussed above, $1.5 million from a transfer of funds factors other than a property’s assessed value, such as for the Case Management Systems Upgrade line item, a building’s square footage and usage. and $32,100 from interest income. (Adam Golden) The table below shows the reported GPLET collections Arizona Commerce Authority – Annual Report on the by county in Calendar Year (CY) 2018. Healthy Forest Enterprise Incentives Program – Pursuant to A.R.S. § 41-1516I, the Arizona Commerce Authority provided its annual May 1 report on the Healthy Forest Total GPLET Enterprise Incentives Program regarding the: 1) County Collections quantity and measured weight of qualifying forest Apache $0 products; 2) number of new full-time employees hired Cochise 0 in qualified employment positions; and 3) number of Coconino 884,948 full-time employees employed in qualified employment Gila 0 positions. Graham 0 Greenlee 0 In calendar year 2018 the total weight of qualified La Paz 0 harvest, processed, or transported forest products was Maricopa 12,276,624 619,007 tons compared to 624,032 tons in 2017. None Mohave 94,921 of the 8 participating companies reported net new Navajo 2,274 employment positions or existing full-time employment Pima 292,853 positions for income tax credits in 2018 or in 2017. Pinal 29,680 Santa Cruz 0 The Healthy Forest Enterprise Incentives Program allows Yavapai 2,302 businesses primarily engaged in the harvesting, initial Yuma 134,916 processing, or transporting of forest products in Arizona Statewide Total $13,718,519 to qualify for the following: a use and transaction privilege tax exemption on qualified purchases, a 50% reduction in the use fuel tax, a reduction in the As shown in the table, statewide GPLET collections assessment ratio of personal and real property from totaled $13.7 million in CY 2018, which represent an 18.5% to 5%, an income tax credit of up to $3,000 per increase of 44%, or $4.2 million, over the total amount employee on new jobs created, and an income tax collected in CY 2017. Eighty-nine percent of statewide credit of up to $9,000 per employee for the cost of GPLET revenue was collected in Maricopa County. training. (Sam Beres) Several counties, including Apache, Cochise, Gila, Graham, Greenlee, La Paz, and Santa Cruz, reported County Treasurers’ Report – Report on the Government that no GPLET revenue was collected in CY 2018. Property Lease Excise Tax – Laws 2015, Chapter 10, (Hans Olofsson) Section 8 requires each county treasurer to report to

Total Non-Farm Employment

Arizona Economic Trends 3,000 2,900 2,800 2,700 May 2019 2,600 2,500 Appendix A 2,400 2,931,400 jobs Thousands of Jobs of Thousands 2,300 (April 2019) Page: 2,200 2,100 2……Total Non-Farm Employment Jul-04 Jul-11 Jul-18 Jan-01 Jan-08 Jan-15 Jun-07 Jun-14 Oct-02 Oct-09 Oct-16 Apr-06 Apr-13 Feb-05 Sep-05 Feb-12 Sep-12 Feb-19 Dec-03 Dec-10 Dec-17 Aug-01 Aug-08 Aug-15 Nov-06 Nov-13 Mar-02 Mar-09 Mar-16 May-03 May-10 May-17 3……Average Hourly Earnings – Private Sector 4……Initial Claims for Unemployment Insurance 8% 6% 5……State Sales Tax Collections – Retail Category 4% 2% 6……State Sales Tax Collections – Contracting 0% Category -2% -4% 2.8% Y/Y Growth 7……Residential Building Permits -6% (April 2019)

Year Over Year Growth (%) GrowthYearYear Over -8% -10% Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 JLBC 2

Average Hourly Earnings – Private Sector Initial Claims for Unemployment Insurance

$27 45,000 $26 40,000 14,705 Claims 35,000 $25 (March 2019) $24 30,000 25,000 $23 $25.77 / Hour $ / Hour / $ $22 (March 2019) 20,000 $21 15,000 Total Monthly Claims Monthly Total $20 10,000 $19 5,000 Jul-04 Jul-11 Jul-18 Jan-01 Jan-08 Jan-15 Jun-07 Jun-14 Oct-02 Oct-09 Oct-16 Apr-06 Apr-13 Feb-05 Sep-05 Feb-12 Sep-12 Feb-19 Dec-03 Dec-10 Dec-17 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Aug-01 Aug-08 Aug-15 Nov-06 Nov-13 Mar-02 Mar-09 Mar-16 May-03 May-10 May-17 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

12% 150% 10% 8% 100% 6% (11.0)% Y/Y Growth 4% 50% (March 2019) 2% 0% -2% 1.3% Y/Y Growth 0% Year Over Year Growth (%) Growth Year Over Year -4% (March 2019) (%) GrowthYearYear Over -6% -50% Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 JLBC 3 JLBC 4

1 State Sales Tax Collections – Retail Category State Sales Tax Collections – Contracting Category

$275 $100

$250 $50.9 Million $75 $225 (April 2019) $200 $50 $175

$ in Millions in $ $150 Millions in $ $245.1 Million $25 $125 (April 2019) $100 $0 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

20% 40% 15% 30% 10% 20% 5% 10% 0% 0% -10% -5% -20% -10% 4.0% Y/Y Growth -30% 9.6% Y/Y Growth (April 2019) (April 2019) Year Over Year Growth (%) GrowthYearYear Over -15% Year Over Year Growth (%) GrowthYearYear Over -40% -20% -50% Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18

Excludes temporary 1-cent sales tax 5 6 JLBC *January 2014 estimate adjusted downward by $30 million to reflect one-time category shift JLBC Excludes temporary 1-cent sales tax

Residential Building Permits

100,000

90,000

80,000

70,000

60,000 Single Family Unit 31,722Permits Multi-Family Unit - 9,308 Permits 50,000 (March 2019) 40,000 Building Permits Building

30,000

20,000

10,000

0 Jul-04 Jul-11 Jul-18 Jan-01 Jan-08 Jan-15 Jun-07 Jun-14 Oct-02 Oct-09 Oct-16 Feb-05 Apr-06 Feb-12 Apr-13 Feb-19 Sep-05 Sep-12 Dec-03 Dec-10 Dec-17 Aug-01 Aug-08 Aug-15 Nov-06 Nov-13 Mar-02 Mar-09 Mar-16 May-03 May-10 May-17

12-Month Moving Sum

JLBC 7

2 House and Senate Budget Bills As Approved

Page

• 4-Year Analysis ...... 1

• Statement of Revenues and Expenditures ...... 7

• Agency Detail - Budget Proposal – General Fund ...... 8 – Other Fund...... 17

• Budget Reconciliation Bill (BRB) Summary ...... 27 – Budget Procedures (HB 2751) ...... 27 – Criminal Justice (HB 2752) ...... 28 – Environment (HB 2753) ...... 29 – Health (HB 2754) ...... 30 – Higher Education (HB 2750) ...... 32 – Human Services (HB 2755) ...... 33 – K-12 Education (HB 2749) ...... 34 – Revenue (HB 2756) ...... 36 – Omnibus Tax Provisions (Conformity/Wayfair) (HB 2757) ...... 38

• General Appropriation Act (HB 2747)/Capital Outlay (HB 2748) – Major Footnote Changes ...... 40 – General Appropriation Act Provisions ...... 48

Prepared by JLBC Staff Memorial Day May 27, 2019 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

1 Beginning Balance $ 449.6 $ 764.3 $ 64.0 $ 41.6

Ongoing Revenues 2 Ongoing Revenues - January Baseline 10,789.3 11,175.8 11,527.4 11,956.7 3 Base Revenue Adjustment (66.0) (16.9) (23.5) (31.4) 4 Conformity/Wayfair (FY 19 Used for 2010B / FY 20 Used For Offsetting Tax Reduction) 155.0 5 25% Charitable Deduction for Standard Deduction Filers (24.0) (24.0) (24.0) 6 HSF Revenue Changes - (FY 20 - $32/FY 21 - $32/FY 22 - Repealed) (24.1) (24.1) (47.5) 7 Index Dependent Exemption (Starts in '21) No - Conformity 8 Charitable Tax Credit (SB 1027) (1.2) (1.2) (1.2) 9 Property Taxes Valuation (Rule B) - (SB 1248) (0.8) (0.8) (0.8) 10 Alternative Fuels; VLT (SB 1332) Yes - Other Funds 11 Fertilizer TPT Exemption (Half Year Impact in '20) - (HB 2275 - Amend) (7.4) (14.7) (14.7) 12 Corporate STO Deceleration (SB 1485) See '21 5.3 18.7 13 Liquor License Fees (Liquor Dept. Issues - Legal, IT, 1 FTE) (0.2) (0.2) (0.2) 14 Treasurer Issues (0.4) (0.4) (0.4) 15 Subtotal - Ongoing Revenues$ 10,878.3 $ 11,100.8 $ 11,443.8 $ 11,855.2

One-Time Revenues 16 TPT Estimated Payment Threshold ($1 M to $4.1 M, Thru '23) (HB 2360 - Amend) (10.3) (10.0) (10.0) 17 One-Time Conformity Offset Loss (Wayfair Partial Year Impact In '20) (28.0) 18 DWR $20 M Water Infrastructure Repayment 20.0 Previously Enacted Fund Transfers 19 '19/'20 Fund Transfers - Already Enacted 100.7 1.8 New Proposed Fund Transfers 20 AHCCCS - Prescription Drug Rebate Transfer to General Fund 69.0 16.7 16.7 21 Wells Fargo Settlement 20.0 22 Subtotal - Newly Enacted Fund Transfers$ - $ 89.0 $ 16.7 $ 16.7

23 Subtotal - One-Time Revenues (Including Beginning Balance)$ 550.3 $ 816.8 $ 70.7 $ 68.3

24 Total Revenues $ 11,428.6 $ 11,917.6 $ 11,514.5 $ 11,923.5

25 JLBC Baseline - Ongoing Spending$ 10,147.6 $ 10,629.5 $ 11,269.6 $ 11,707.7

Ongoing Changes to JLBC Baseline 1 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

26 Agriculture - Ag Lab Relocation 0.4 0.5 0.5 27 Agriculture - Dairy Inspector Salary Increase ($137k) 0.1 0.1 0.1 28 AHCCCS - Formula (8.0) (65.0) (83.0) (117.0) 29 AHCCCS - Federal Match Rate Changes (Begin in FY 21) Yes (19.8) (30.4) 30 AHCCCS - Use PDRF As Transfer Instead of Offset (See Fund Transfers) 53.6 16.7 16.7 31 AHCCCS - Eliminate KidsCare Freeze 1.6 9.4 9.4 32 AHCCCS - DD Behavioral Health Transfer to DES (26.1) (26.1) (26.1) 33 AHCCCS - Prop 206 Funding (Elderly Long-Term Care) 4.8 4.8 4.8 34 AHCCCS - Additional ALTCS Provider Funding 7.0 7.0 7.0 35 AHCCCS - Rural Graduate Medical Education 1.7 3.4 5.0 36 AHCCCS - Urban Graduate Medical Education 1.3 2.7 4.0 37 Charter Board - Additional FTEs (FY 20 5 FTE/FY 21 10 FTE) 0.4 0.8 0.8 38 Commerce Authority - New Trade Offices (2 Mexico/1 Israel) ($475K) 0.5 0.4 0.4 39 DCS - Kinship Stipend 2.4 2.4 2.4 40 Comm Colleges - Formula Changes 0.2 0.2 0.2 41 Comm Colleges - Dine College Remedial Education 1.0 1.0 1.0 42 Corrections - Inmate Health Care 30.9 30.9 30.9 43 Corrections - Health Care Monitoring Staff (10 FTE) 1.0 1.0 1.0 44 Counties - Rural EORP Assistance 3.0 3.0 3.0 45 DES - Formula Adjustments 3.7 (16.1) (16.1) 46 DES - Federal Match Rate Changes (Begin in FY 21) Yes (6.0) (9.0) 47 DES - DD FY 19 Cap Rate Increase 6.7 6.7 6.7 6.7 48 DES - Case Management Funding 1.9 1.9 1.9 49 DES - DD Behavioral Health Services Transfer to DES 26.1 26.1 26.1 50 DES - Fund Prop 206 Costs Ongoing 13.0 13.0 13.0 51 DES - Additional DD Provider Funding 13.0 13.0 13.0 52 DES - Local Minimum Wage Increase DD Offsets BRB 53 DES - Childcare Block Grant Other Fund Other Fund 54 ADE - Formula Adjustments (10.0) (54.7) (72.0) (96.0) 55 ADE - Results-Based Funding ($40 M in Base) - Top 13% AZMerit 30.0 30.0 30.0 56 ADE - SRO/School Counselors Grant Program 20.0 20.0 20.0 57 ADE - Juvenile Detention Education Programs 0.7 0.7 0.7 58 ADE - Excess SFB Debt Service Funds (6.8) 59 DEMA - National Guard Tuition Reimbursement (125 - 400 Guardsman) 1.0 1.0 1.0 60 Forestry - Hazardous Vegetation Removal 1.0 1.0 1.0 61 Forestry - Non-Native Vegetation Eradication (Thru FY 29) 1.0 1.0 1.0 2 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

62 Governor - Foster Youth Education Ongoing 1.5 1.5 1.5 63 Governor - Governor's Budget Staff (OSPB) ($650k) 0.7 0.7 0.7 64 DHS - ASH Temporary Staffing Contract Increase Other Fund 65 IRC - JLBC Baseline Has '21/'22 Funding Remove 21/22 $ (0.5) (3.7) 66 Judiciary - Court of Appeals - General Operating Expenses 0.2 0.2 0.2 67 Judiciary - Superior Court - Health/Dental Cost Adjustment ($54k) 0.1 0.1 0.1 68 Judiciary - Superior Court - Adult Probation Growth 0.2 0.2 0.2 69 Judiciary - Superior Court - Probation Salary Deficit 1.0 1.0 1.0 70 Judiciary - Judicial Nominating Commissions (2 Counties) 0.1 0.1 0.1 71 Judiciary - Employee Salary Increase 1.1 1.1 1.1 72 DJC - Repeal Non-Maricopa/Pima County Cost Sharing Permanently 2.8 2.8 2.8 73 Legislature - Senate Budget 3.2 3.2 3.2 74 Legislature - House Budget 2.5 2.5 2.5 75 Legislature - Legislative Council Budget 0.5 0.5 0.5 76 Legislature - JLBC Budget 0.3 0.3 0.3 77 Postsecondary Ed - Internal IT System Development ($34k) 0.1 0.1 0.1 78 DPS - Maricopa Night Highway Patrol (6 FTE) 1.5 1.1 1.1 79 DPS - Southern AZ Highway Patrol (12 FTE) 3.0 2.2 2.2 80 DPS - Loop 202 South Mountain Freeway Patrol (30 FTE) 6.4 4.9 4.9 81 DPS - HSF Spending Changes - (FY 20 - $32/FY 21 - $32/FY 22 - Repealed) (24.1) (24.1) 136.7 82 PSPRS - Prescott Fire Deposit (Thru FY 26) 1.0 1.0 1.0 83 Sec of State - Pres. Preference Election (Baseline - $5.0 M) (0.7) 84 Sec of State - 2 FTE Positions (IT Staff) 0.2 0.2 0.2 85 Sec of State - Election Services ($100k Petitions/$3k Training) 0.1 0.1 0.1 86 Sec of State - Uniform Laws Commission 0.1 0.1 0.1 87 Tourism - Marketing Funding Increase ($100k Wine Promotion) 1.11.11.1 88 Universities - ABOR - Teacher's Academy 15.0 15.0 15.0 89 Universities - ABOR - Adaptive Athletics ($160k) 0.2 0.2 0.2 90 Universities - ABOR - Washington Center 0.3 0.3 0.3 91 Universities - NAU - Continue Biomedical Research Funding 3.0 3.0 3.0 92 Universities - NAU - Ongoing Freedom School Funding 0.5 0.5 0.5 93 Universities - UA Health Sciences Center 8.0 8.0 8.0 94 Veterans' Services - Veteran Suicide Prevention (Incl. $450k Trauma Training) 1.6 1.6 1.6 95 Water Resources - Staff/Courts Water Master 0.6 0.6 0.6 96 Other - Pay Raise - Agriculture ($30k) 0.1 0.1 0.1 97 Other - Pay Raise - Attorney General ($55k) 0.1 0.1 0.1 3 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

98 Other - Pay Raise - Child Safety 5.5 5.5 5.5 99 Other - Pay Raise - ADC (Monthly Hiring Report/Quarterly Benchmark/JLBC Review) 40.6 40.6 40.6 100 Other - Pay Raise - Health Services 2.8 2.8 2.8 101 Other - Pay Raise - Insurance ($20k) 0.1 0.1 0.1 102 Other - Pay Raise - Juvenile Corrections 3.2 3.2 3.2 103 Other - Pay Raise - Dept. of Public Safety 21.5 21.5 21.5 104 Other - 2010 Sale/Leaseback Refinance Savings (2010A Savings Only) (6.4) (6.4) (6.4) 105 Other - 2010 Sale/Leaseback Debt Service Savings - 2010B Payoff Savings Start in '21 (24.0) (24.0) 106 Other - ADC/DJC Retirement Adjustments (3.7) (3.7) (3.7) 107 Other - DPS PSPRS Retirement Adjustment 4.1 4.1 4.1 108 Other - Risk Management Adjustments 2.3 2.3 2.3 109 Other - IT Pro Rata Adjustments 1.1 1.1 1.1 110 Other - Agency Rent Adjustments (0.5) (0.5) (0.5) 111 Other - COSF Rental Rate Increase 2.0 2.0 2.0 112 Other - ADOA Shared Services (1740 W Adams) $10k $10k $10k 113 Other - Revertments (Unspent Appropriations) (21.0) (22.0) (18.0) (22.0) 114 Subtotal - Ongoing Changes to JLBC Baseline$ (35.4) $ 161.4 $ 36.1 $ 121.0

115 Total Ongoing Spending $ 10,112.2 $ 10,790.9 $ 11,305.7 $ 11,828.7

116 JLBC Baseline One-Time Spending$ 247.0 $ 154.9 $ 168.4 $ 28.5

One-Time Changes to JLBC Baseline 117 ADOA - Sierra Vista Public Safety Communications ($271k) 0.3 118 ADOA/APF - Business OneStop Shop Web Portal Design Costs 1.0 119 Agriculture - Mariposa Port of Entry Cold Inspection Facility (Capital) 0.7 120 AHCCCS - Asset Verification System (No '21/'22 Commitment) PDRF One-Time 121 AHCCCS - Electronic Visit Verification System (No '21/'22 Commitment) PDRF One-Time 122 AHCCCS - Provider Management System (No '21/'22 Commitment) PDRF One-Time 123 AHCCCS - North Country Graduate Medical Education ($750k) 0.8 124 Arts - One-Time Funding 2.0 125 Arts - Nonprofit Theater Capital Support 0.2 126 DCS - Automation (CHILDS) 5.1 127 Commerce - Rural Broadband Grants 3.0 128 Comm Colleges - Maricopa CCD Healthcare Specialty Expansion 5.8 129 Comm Colleges - Pima CCD Aviation Center 15.0 4 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

130 Comm Colleges - One-Time Rural Funding (By Student Count) 14.2 131 Comm Colleges - Maricopa/Pima STEM Funding (Thru FY 22) 2.0 2.0 2.0 132 Economic Opportunity - WIFA - Small Water Systems Fund 0.5 133 DES - Food Banks ($950k) 1.0 134 DES - Caregiver Grants 1.0 135 ADE - Reduce K-12 Rollover (FY 22 - Eliminate for < 1,350 ADM) 30.0 136 ADE - High Quality Teacher Scholarships (Thru FY 22) 0.4 0.4 0.4 137 ADE - Mingus Unified Consolidation Costs ($50k) 0.1 138 ADE - Yuma Elementary School Construction 0.8 139 ADE - CTED Incentive (One-Time/Non-Lapsing) - JLBC Review 5.0 5.0 140 ADE - One-Time DAA/CAA Acceleration ($136 M In FY 20) 67.8 141 ADE - Gifted Education 1.0 142 DEMA - West Valley Readiness Center (Capital) 3.9 143 DEQ - WQARF Other Fund - $15 M 144 DEQ - Nogales Wastewater Other Fund - $2.6 M 145 DEQ - Maricopa County Dust Supression Pilot Program 0.2 146 Forestry - Adjust BSF Firefighting Loan Limit (Currently $10 M) $20 M BSF Limit 147 Forestry - Fire Training Center (Taylor) 1.0 148 Forestry - Non-Native Vegetation Eradication 1.0 149 Forestry - Mount Lemmon Fire District Water Line ($750k) 0.8 150 DHS - Alzheimer's Research Other Fund - $2.0 M 151 DHS - Rural Hospital Prenatal Equipment 1.0 0.5 0.5 152 DHS - Restore Emergency Fund to $500k 0.1 153 DHS - Primary Care Clinic - Colorado City 0.7 154 DHS - Benson and Northern Cochise Hospitals 1.5 155 DHS - Vulnerable Caregiver Workshops ($250k) 0.3 156 DHS - Loan Repayment Program ($750K) 0.8 157 Housing - Housing Trust Fund Deposit 15.0 158 Judiciary - Superior Court - CORP Increase 2.4 159 DJC - One-Time Maricopa/Pima County Cost Sharing Offset 8.5 160 Leg. - Auditor General - CTED Study 0.4 161 Parks - Arizona Trail - $250k Yes - Other Fund 162 DPS - AZ POST Funding (Highway Patrol Fund) Other Fund - $1.0 M 163 DPS - Highway Patrol Vehicle Replacement 4.0 164 DPS - Interoperability Project 1.5 165 Racing - County Fair Promotion ($730k) 0.7 0.7 0.7 5 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions AB C D

FY 2019 FY 2020 FY 2021 FY 2022 N = Note (See End of Spreadsheet) 5/27 5/27 5/27 5/27

166 SFB - Advance Funding for New School Construction (2 Year) 16.0 16.8 32.1 167 SFB - Final New School Construction Approvals 10.6 (8.6) (14.5) 168 SFB - Building Renewal Funding 25.0 62.8 169 Sec of State - FY 19 Supplemental - Record Storage 0.7 170 ADOT - I-17 Expansion (State Highway Fund) - ($40 M/$45 M/$45 M) State Highway Fund State Highway Fund State Highway Fund 171 Additional Road Infrastructure ($18 M Locals/$77 M Projects) 95.3 172 Universities - ASU - One-Time Operating Funding 18.9 173 Universities - NAU - One-Time Operating Funding 6.7 174 Universities - UA - One-Time Operating Funding 9.4 175 Water Resources - Water System Conservation Funding (Enacted) 30.0 176 Water Resources - Agriculture Infrastructure Projects (Enacted) 7.0 177 Water Resources - Additional $20 M Infrastructure Projects 20.0 178 Water Resources - Water Protection Fund Deposit 0.5 179 Water Resources - Digitization/Case Management System 0.5 180 Other - 2010B Sale/Leaseback Payoff (SB 1215) 190.0 181 Other - HITF - State Agencies 8.4 182 Other - HITF - Universities 2.1 183 Other - Rainy Day Fund Deposit 271.1 271.1 184 Other - '21 Additional 27th Pay Period (JLBC Baseline - $98 M) See '21 (18.0) 185 Other - Named Claimants ($307k) (HB 2495) 0.3 186 Subtotal - One-Time Changes to JLBC Baseline$ 305.1 $ 907.8 $ (1.2) $ 56.2

187 Total One-Time Spending $ 552.1 $ 1,062.7 $ 167.2 $ 84.7

188 Total Spending $ 10,664.3 $ 11,853.6 $ 11,472.9 $ 11,913.4

189 Cash Balance $ 764.3 $ 64.0 $ 41.6 $ 10.1

190 Structural Balance $ 766.1 $ 309.9 $ 138.1 $ 26.5

6 5/27 Plan Statement of General Fund Revenues and Expenditures 1/ With One-Time Financing Sources

FY 2019 FY 2020 FY 2021 FY 2022 5/27 5/27 5/27 5/27 REVENUES Ongoing Revenues $11,398,072,000 $11,896,447,900 $12,296,178,400 $12,752,263,400 Newly Enacted Changes (57,971,800) (59,972,100) (69,941,200) Conformity/Wayfair (Offset In FY 20) 155,000,000 Urban Revenue Sharing (674,804,400) (737,573,600) (792,281,400) (827,005,300) Net Ongoing Revenues $10,878,267,600 $11,100,902,500 $11,443,924,900 $11,855,316,900

One-time Financing Sources Balance Forward 449,632,000 764,372,400 64,646,400 42,551,900 Wells Fargo Settlement 20,000,000 Other Tax Law Changes (38,322,600) (10,005,000) (9,974,300) Water Infrastructure Repayment 20,000,000 Fund Transfers 100,681,700 70,840,700 16,700,000 16,700,000 Subtotal One-time Revenues $550,313,700 $816,890,500 $71,341,400 $69,277,600

Total Revenues $11,428,581,300 $11,917,793,000 $11,515,266,300 $11,924,594,500

EXPENDITURES Operating Budget Appropriations $10,200,028,900 $10,835,879,600 $11,350,510,300 $11,873,453,900 FY 2019 Supplementals/Ex-Approp. (42,838,800) Administrative Adjustments 126,000,000 128,000,000 138,000,000 143,000,000 Revertments (171,000,000) (173,000,000) (183,000,000) (188,000,000) Subtotal Ongoing Expenditures $10,112,190,100 $10,790,879,600 $11,305,510,300 $11,828,453,900

One-time Expenditures Capital Outlay 4,959,000 4,575,000 0 Transportation Funding 0 95,310,000 Reduce K-12 Rollover 0 30,000,000 Budget Stabilization Fund Deposit 271,107,000 271,107,000 2010B Debt Payoff 190,000,000 Operating One-Time Spending 241,996,500 501,275,000 87,204,100 54,837,400 FY 2019 One-Time Supplementals 33,956,300 0 Additional (27th) Pay Period 0 80,000,000 Subtotal One-time Expenditures $552,018,800 $1,062,267,000 $167,204,100 $84,837,400

Total Expenditures $10,664,208,900 $11,853,146,600 $11,472,714,400 $11,913,291,300

Ending Balance 2/ $764,372,400 $64,646,400 $42,551,900 $11,303,200

Structural Balance 3/ $766,077,500 $310,022,900 $138,414,600 $26,863,000

______1/ Significant one-time revenues and expenditures are separately detailed so as to permit the calculation of ongoing revenue and expenditures. 2/ This calculation reflects the difference between total revenues and total expenditures. Excludes any Budget Stabilization Fund balance. 3/ This calculation reflects the difference between ongoing revenues and expenditures and excludes one-time adjustments. Excludes any Budget Stabilization Fund balance. 7

DETAILED LIST OF GENERAL FUND CHANGES BY AGENCY

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 OPERATING SPENDING CHANGES DOA - Arizona Department of Administration 7,939,100 8,210,100 DOA - Sierra Vista Public Safety Communications 271,000

APF - Automation Projects Fund/ADOA 5,000,000 11,100,000 APF - DCS Automation 5,100,000 APF - Business OneStop Shop Web Portal 1,000,000

OAH - Office of Administrative Hearings 868,900 868,900

AAM - Commission of African-American Affairs 127,200 127,200

AGR - Department of Agriculture 9,640,000 10,938,900 AGR - Industrial Hemp Licensing (Enacted) 750,000 AGR - Dairy Inspector Salary Increase 137,000 AGR - Mariposa Port of Entry Cold Inspection Facility See Capital AGR - AG Lab Relocation 411,900

AXS - AHCCCS 1,777,093,500 1,760,699,900 AXS - Formula Changes 38,999,200 (65,000,000) AXS - Use PDRF As Fund Transfer Rather Than Offset (36,927,800) 53,657,900 AXS - Statutory Adjustments (150,200) AXS - Proposition 206 Rate Increase 1,944,500 AXS - Asset Verification System Other Fund AXS - Electronic Visit Verification System Other Fund AXS - Provider Management System Other Fund AXS - Eliminate KidsCare Freeze 1,586,900 AXS - DD Behavioral Health Services Transfer to DES (26,054,100) AXS - Additional ALTCS Provider Funding 7,000,000 AXS - Make Prop 206 Assistance Ongoing 4,800,000 AXS - Rural Graduate Medical Education 1,666,700 AXS - Urban Graduate Medical Education 1,333,300 AXS - North Country Graduate Medical Education 750,000

ART - Arizona Commission on the Arts 0 2,200,000 ART - One-Time Funding 2,000,000 ART - Nonprofit Theater Capital Support 200,000

ATT - Attorney General 25,940,300 25,940,300

CHA - State Board for Charter Schools 1,209,800 1,602,600

8

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 CHA - Additional FTEs 392,800

DCS - Department of Child Safety 375,838,700 378,230,700 DCS - Kinship Stipend 2,392,000

ACA - Arizona Commerce Authority 21,800,000 19,275,000 ACA - Competes Fund Deposit Reduction (6,000,000) ACA - One-Time Rural Development Broadband Grants 3,000,000 ACA - New Trade Offices (2 Mexico/1 Israel) 475,000

CCO - Arizona Community Colleges 57,205,500 96,882,200 CCO - Formula Changes 1,431,400 245,300 CCO - Maricopa CCD Healthcare Specialty Expansion 5,800,000 CCO - Pima CCD Aviation Center 15,000,000 CCO - Dine College Remedial Education 1,000,000 CCO - Maricopa/Pima STEM Funding (Thru FY 22) 2,000,000 CCO - One-Time Rural Funding (By Student Count) 14,200,000

COR - Corporation Commission 814,600 618,000 COR - Remove One-Time Railroad Safety Inspector Funding (196,600)

ADC - Department of Corrections 1,099,670,000 1,133,566,500 ADC - Remove Lease Purchase Payment (3,072,900) ADC - Inmate Health Care Contract Costs 30,900,000 ADC - Inmate Health Care Monitoring (10 FTE) 985,900 ADC - Private Prison CO Salary Increase 5,083,500

CF - County Funding 20,566,200 10,650,700 CF - Rural EORP Assistance (1,655,500) 3,000,000 CF - Remove One-Time DJC Offset (11,260,000)

SDB - Arizona State Schools for the Deaf and the Blind 21,659,300 23,259,300 SDB - Early Childhood Services Fund Shift 1,600,000

OEC - Office of Economic Opportunity 488,800 988,800 OEC - WIFA - Small Water Systems Fund 500,000

DES - Department of Economic Security 650,936,900 749,115,200 DES - Formula Adjustments 50,962,300 DES - Case Management Funding 1,861,900 DES - One-time Proposition 206 Assistance (11,000,000) 13,000,000 DES - Additional DD Provider Funding 13,000,000 DES - FY 19 DD Cap Rate Increase 6,700,000 DES - Remove One-Time Food Bank Funding (1,000,000)

9

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 DES - Remove One-Time Medical Room and Board (2,000,000) DES - Remove One-Time SNAP Benefit Match Funding (400,000) DES - DD Behavioral Health Services Transfer to DES 26,054,100 DES - Caregiver Grants 1,000,000

BOE - State Board of Education 1,146,300 1,146,300

ADE - Arizona Department of Education 4,704,652,000 5,200,140,600 ADE - Formula Adjustments 197,489,200 (54,700,000) ADE - Additional Assistance Increase (Enacted) 67,774,700 ADE - Teacher Salary Increases (Enacted) 164,700,000 ADE - One-Time American Civics Funding (Enacted) 500,000 ADE - Eliminate One-Time Gifted Education Funding (1,000,000) ADE - Results-Based Funding 30,000,000 ADE - CTED Incentive Program FY 21/22 - $5 M ADE - SRO/School Counselors Grant Program 20,000,000 ADE - One-Time Additional Assistance Increase 67,774,700 ADE - Payoff K-12 Rollover FY 22 - $30 M ADE - Juvenile Detention Education Programs 700,000 ADE - High Quality Teacher Scholarships (Also $400k in FY 21/22) 400,000 ADE - Mingus Unified Consolidation Costs 50,000 ADE - Gifted Education 1,000,000 ADE - Yuma Elementary School Construction 800,000

EMA - Department of Emergency & Military Affairs 11,098,200 12,098,200 EMA - National Guard Tuition Reimbursement 1,000,000

DEQ - Department of Environmental Quality 0 200,000 DEQ - Maricopa County Dust Supression Pilot Program 200,000

EQU - State Board of Equalization 652,000 652,000

EXE - Board of Executive Clemency 1,137,000 1,137,000

DFI - Dept of Financial Institutions 1,984,800 1,984,800

FOR - Department of Forestry and Fire Management 11,156,700 15,906,700 FOR - Hazardous Vegetation Removal 1,000,000 FOR - Fire Training Center (Taylor) 1,000,000 FOR - Non-Native Vegetation Eradication (Thru FY 29) 1,000,000 FOR - Non-Native Vegetation Eradication (One-Time) 1,000,000 FOR - Mount Lemmon Fire District Water Line 750,000

GAM - Department of Gaming 1,779,500 2,509,500

10

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 GAM - County Fair Promotion 730,000

GOV - Office of the Governor 8,538,800 8,538,800 GOV - Retain Foster Youth Education Funding (1,500,000) 1,500,000

OSP - Gov's Office of Strategic Planning & Budgeting 2,022,100 2,672,100 OSP - Additional Funding 650,000

DHS - Department of Health Services 89,931,200 94,237,800 DHS - Alzheimer's Research (One-Time) Other Fund DHS - Prenatal Services Funding (One-Time) 1,000,000 DHS - Public Health Emergency Fund Backfill 106,600 DHS - Benson and Northern Cochise Hospitals 1,500,000 DHS - Primary Care Clinic - Colorado City 700,000 DHS - Loan Repayment Program 750,000 DHS - Vulnerable Caregiver Workshops 250,000

AZH - Arizona Historical Society 3,195,000 3,075,000 AZH - Risk Management Adjustment (120,000)

PAZ - Prescott Historical Society 832,700 832,700

DOH - Department of Housing 0 15,000,000 DOH - Housing Trust Fund Deposit (One-Time) 15,000,000

INS - Department of Insurance 5,628,400 5,628,400

SPA - Judiciary - Supreme Court 19,870,100 20,422,400 SPA - Judicial Nominating Commissions (2 Counties) 117,500 SPA - Employee Salary Increase 477,500 SPA - Risk Management Shift (42,700)

COA - Judiciary - Court of Appeals 15,992,400 16,667,200 COA - Risk Management Shift 27,600 COA - General Operating Expenses 236,100 COA - Employee Salary Increase 411,100

SUP - Judiciary - Superior Court 80,714,500 92,076,100 SUP - Risk Management Shift 15,100 SUP - Maricopa County Judges Phase-In (Enacted) 6,972,000 SUP - Water Master 39,500 SUP - Digitization/Case Management System 250,000 SUP - Adult Probation Growth 243,300 SUP - Employee Salary Increase 257,800 11

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 SUP - Health/Dental Cost Adjustment 54,100 SUP - Annualize New Probation Officers 137,500 SUP - CORP Increase 2,354,000 SUP - Probation Salary Deficit 1,038,300

DJC - Department of Juvenile Corrections 22,734,500 33,994,500 DJC - Repeal Rural County Cost Sharing (One-Time Maricopa/Pima) 11,260,000

LAN - State Land Department 11,733,400 11,605,100 LAN - CAP Rate Adjustment (128,300)

Legislature AUD - Auditor General 19,709,600 20,607,100 AUD - CTED Study 400,000 AUD - Increase Staffing for Performance Audit Division (Enacted) 497,500

HOU - House of Representatives 13,835,000 16,335,000 HOU - Additional Funding 2,500,000

JLBC - Joint Legislative Budget Committee 2,504,800 2,829,800 JLBC - Additional Funding 325,000

LEG - Legislative Council 8,304,900 8,804,900 LEG - Additional Funding 500,000

SEN - Senate 9,747,200 12,922,200 SEN - Additional Funding 3,175,000

MIN - State Mine Inspector 1,255,800 1,255,800

NAV - Arizona Navigable Steam Adjudication Comm. 127,400 127,400

POS - Commission for Postsecondary Education 1,646,800 1,680,900 POS - Teacher Student Loan Program POS - Internal IT System Development 34,100

DPS - Department of Public Safety 104,241,700 70,690,800 DPS - Highway Safety Fee Fund Shift (30,000,000) (24,056,800) DPS - Wrong Way Driving Patrol (6 Maricopa FTE) 1,468,800 DPS - Border Strike Task Force Enhancement (12 FTE Southern AZ) 2,974,600 DPS - Loop 202 South Mountain Freeway Patrol 6,433,500 DPS - AZ POST Funding Other Fund DPS - Highway Patrol Vehicle Replacement 4,000,000 DPS - Retirement Adjustment 4,129,000

12

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 DPS - Interoperability Project 1,500,000

PSP - Public Safety Personnel Retirement System 7,000,000 6,000,000 PSP - Expiration of Multi-Year Prescott Fire Dept. Funding (1,000,000) PSP - Retain Prescott Fire Dept. Funding Thru FY 26 (1,000,000) 1,000,000

REA - State Real Estate Department 2,911,700 2,911,700

REV - Department of Revenue 31,063,800 31,063,800

SFB - School Facilities Board 274,700,300 325,632,500 SFB - New School Funding Completion (FY 18 Starts) (37,989,800) SFB - Continue New School Construction Projects (FY 19 Starts) (12,910,000) SFB - Begin New School Construction Projects (FY 20 Starts) 49,305,000 SFB - Advance Funding For New School Construction 15,953,600 SFB - Lease-Purchase Adjustment (2,416,800) SFB - Final New School Construction Approvals 10,617,200 SFB - One-Time Building Renewal Funding (34,417,900) 62,790,900

SOS - Secretary of State 15,568,800 16,995,400 SOS - Presidential Preference Election 1,650,000 (626,400) SOS - 2 FTE Positions (IT Staff) 200,000 SOS - Election Services 103,000 SOS - Uniform State Laws Commission 100,000

TAX - State Board of Tax Appeals 280,400 280,400

TOU - Office of Tourism 7,112,000 8,212,000 TOU - Marketing Funding Increase (Includes $100k Wine Promotion) 1,100,000

DOT - Department of Transportation 65,000 0 DOT - Remove One-Time Transit Planning Funding (65,000) DOT - Interstate 17 Expansion See Capital

TRE - State Treasurer 1,205,100 1,205,100

OTR - Governor's Office on Tribal Relations 60,900 60,900

UNI - Universities UNI - Arizona Board of Regents 6,898,100 22,358,100 UNI - Adaptive Athletics 160,000 UNI - Washington Center 300,000 UNI - Teacher's Academy 15,000,000

13

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 UNI - ASU 328,775,800 342,396,900 UNI - Lease Purchase Adjustment (22,400) UNI - Inflation Adjustment (2017 Capital Infrastructure) 238,500 UNI - Remove '19 One-Time Operating Funding (4,245,000) UNI - New '20 One-Time Operating Funding 18,900,000 UNI - Remove One-Time Economic Development Funding (250,000) UNI - Remove One-Time Freedom School Funding (1,000,000)

UNI - Northern Arizona University 112,095,700 117,249,200 UNI - Lease Purchase Adjustment 3,300 UNI - Inflation Adjustment (2017 Capital Infrastructure) 90,400 UNI - Remove Multi-Year Biomedical Research Funding (3,000,000) UNI - Continue Biomedical Research Funding 3,000,000 UNI - Retain Freedom School Funding (500,000) 500,000 UNI - Remove '19 One-Time Operating Funding (1,590,200) UNI - New '20 One-Time Operating Funding 6,650,000

UNI - UA - Main Campus 208,836,400 215,331,800 UNI - Inflation Adjustment (2017 Capital Infrastructure) 211,000 UNI - Lease Purchase Adjustment (800) UNI - Remove '19 One-Time Operating Funding (2,164,800) UNI - New '20 One-Time Operating Funding 9,450,000 UNI - Remove One-Time Freedom School Funding (1,000,000)

UNI - UA - Health Sciences Center 68,897,700 76,897,700 UNI - Phoenix Biomedical Center 8,000,000

VSC - Department of Veterans' Services 6,120,600 7,771,100 VCS - Remove One-Time Hyperbaric Therapy Funding (25,000) VSC - Veteran Suicide Prevention 1,675,500

WAT - Department of Water Resources 16,169,800 66,909,800 WAT - Additional Staff 540,000 WAT - Water Protection Fund Deposit 500,000 WAT - Digitization 200,000 WAT - Remove One-Time Northwest Basins Study Funding (100,000) WAT - Water System Conservation Funding 30,000,000 WAT - Agriculture Infrastructure Projects Loan 20,000,000 WAT - Remove One-Time Water Protection Fund Deposit (400,000)

OTH - Other OTH - AHCCCS Ex-Appropriation (36,564,900) 28,564,900 0 OTH - Land Dept Ex-Appropriation (128,300) 128,300 0 OTH - FY 19 EORP Supplemental 287,800 (287,800) 0

14

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 OTH - ADE Ex-Appropriation (10,000,000) 0 OTH - ADE Ex-Appropriation (SFB Excess Debt Service Funds) (6,833,400) 0 OTH - DES FY 19 DD Cap Rate Increase 6,700,000 0 OTH - DES DD Caseload Supplemental 3,700,000 0 OTH - DES Food Bank Funding Supplemental 950,000 0 OTH - Secretary of State Supplemental (Record Storage) 700,000 0 OTH - Named Claimants Supplemental 306,300 0 OTH - DWR - Agriculture Infrastructure Projects Supplemental 7,000,000 0 OTH - SFB Building Renewal Supplemental 25,000,000 0 OTH - Debt Service Payments 84,112,000 (3,500) (6,399,200) 77,709,300 OTH - Phoenix Convention Center Debt Service 22,996,300 503,700 23,500,000 OTH - 2010B Sale/Leaseback Payoff (SB 1215) 0 190,000,000 190,000,000 OTH - Rio Nuevo District 14,000,000 14,000,000 OTH - Continue FY 2019 EORP Supplemental 0 287,800 287,800 OTH - Risk Management Adjustments 0 0 2,341,700 2,341,700 OTH - IT Pro Rata Adjustments 0 0 1,067,700 1,067,700 OTH - Agency Rent Adjustments 0 0 (549,700) (549,700) OTH - COSF Rental Rate Increase 0 0 2,023,000 2,023,000 OTH - ADOA Shared Services (1740 W Adams) 0 0 10,600 10,600 OTH - Pay Raise/Compensation Package 0 68,567,700 68,567,700 OTH - ADC/Judiciary Retirement Rate Adjustment 0 (3,710,100) (3,710,100) OTH - Remove One-Time '19 Agency Health Insurance Adjustments 0 (9,967,600) (9,967,600) OTH - New Agency Health Insurance Adjustments 0 8,431,600 8,431,600 OTH - New University Health Insurance Adjustments 0 2,112,800 2,112,800 OTH - Budget Stabilization Fund Deposit 271,107,000 271,107,000 271,107,000 OTH - Unallocated IT Pro-Rata Charge Increase 500 (500) 0 OTH - Unallocated Retirement Rate Adjustment 150,500 (150,500) 0 OTH - Unallocated HITF One-Time Employer Premium 32,400 (32,400) 0 OTH - Administrative Adjustments 126,000,000 7,000,000 (22,000,000) 128,000,000 OTH - Revertments (171,000,000) (6,000,000) (173,000,000)

TOTAL - OPERATING SPENDING CHANGES 10,659,249,900 394,789,900 968,851,700 11,753,261,600

CAPITAL SPENDING Agriculture - Mariposa Port of Entry Cold Inspection Facility 0 700,000 700,000 DEMA - Tucson Readiness Center - One-Time Funding 3,759,000 (3,759,000) 0 DEMA - West Valley Readiness Center 0 3,875,000 3,875,000 DPS - Modular Housing - One-Time Funding 1,200,000 (1,200,000) 0 DOT - Interstate 17 Expansion 0 Other Fund Other Fund ADOA - State Route 24 Bridge 0 6,500,000 6,500,000 DOT - I-10 Widening Study 0 10,000,000 10,000,000 DOT - Aviation Fund Deposit 0 10,000,000 10,000,000 ADOA - Kingman I-40 Interchange 0 20,000,000 20,000,000 DOT - US 95 Yuma Road Widening 0 28,000,000 28,000,000 15

FY 2019 GF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 GF 5/27 Above FY 19 to FY 20 Baseline 5/27 DOT - Local Road Construction Distribution 0 18,000,000 18,000,000 ADOA - Globe Bridge Repair 0 2,810,000 2,810,000

TOTAL - CAPITAL SPENDING 4,959,000 (4,959,000) 99,885,000 99,885,000

TOTAL - ALL SPENDING 10,664,208,900 389,830,900 1,068,736,700 11,853,146,600

REVENUE CHANGES Ongoing Revenue REV - Ongoing Revenue 10,723,267,600 386,506,700 (16,900,000) 11,158,874,300 REV - Conformity/Wayfair 155,000,000 (24,000,000) (24,000,000) REV - Highway Safety Fee Revenue Changes 0 (24,110,500) (24,110,500) REV - Charitable Tax Credit 0 (1,200,000) (1,200,000) REV - Property Taxes Valuation (Rule B) 0 (750,000) (750,000) REV - Fertilizer TPT Exemption 0 (7,350,000) (7,350,000) REV - Corporate STO Deceleration 0 FY 21 Impact REV - Liquor License Fee Diversions 0 (181,300) (181,300) REV - Treasurer Other Fund Agency Issues 0 (380,000) (380,000) One-Time Revenue REV - Beginning Balance 449,632,000 495,370,300 (180,629,900) 764,372,400 REV - Prescription Drug Rebate Transfer 0 69,000,000 69,000,000 REV - Reduce TPT Estimated Payment (Thru FY 23) 0 (10,322,600) (10,322,600) REV - One-Time Conformity Offset Loss (Wayfair Partial Year Impact) 0 (28,000,000) (28,000,000) REV - Wells Fargo Settlement 0 20,000,000 20,000,000 Prior-Year Enacted Fund Transfers REV - FY 2019 Fund Transfers 100,681,700 (100,681,700) 0 REV - DEQ - Air Quality Fund 0 993,900 993,900 REV - DPS - Joint Fund 0 846,800 846,800

TOTAL - REVENUE CHANGES 2/ 11,428,581,300 783,036,000 (204,824,300) 11,917,793,000

ENDING BALANCE 764,372,400 393,205,100 (1,273,561,000) 64,646,400 ______1/ Represents FY 2020 Baseline cost above FY 2019 Baseline. 2/ Represents all revenue changes, including fund transfers. #VALUE!

16 DETAILED LIST OF OTHER FUND CHANGES BY AGENCY

FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27 OPERATING SPENDING CHANGES SBA - State Board of Accountancy 2,037,900 2,037,900

ACU - Acupuncture Board of Examiners 171,900 169,700 ACU - Administrative Staff Consolidation (2,200)

DOA - Arizona Department of Administration 194,938,400 205,016,600 DOA - Remove One-Time Monument/Memorial Repair Funding (25,300) DOA - Cybersecurity Controls (Funded with New Charge) 2,888,600 DOA - Enterprise Email and Calendar Solution 4,500,000 DOA - Government Transformation Office Operations (1 FTE) 1,000,000 DOA - Government Website Support (One-Time) 250,000 DOA - Shared Hosted Data Center Operating Costs 1,354,300 DOA - Central Services Bureau Shared Services 110,600

APF - Automation Projects Fund/ADOA 23,125,100 17,311,000 APF - ADOA Business OneStop Portal 1,000,000 APF - Agriculture Weights and Measures IT Assessment 200,000 APF - Remove One-Time Automation Project Funding (18,125,100) APF - Child Safety - CHILDS Replacement Initative 5,100,000 APF - ADE - School Finance System Replacement 3,000,000 APF - Medical Board - Cloud Migration 300,000 APF - DPS - Concealed Weapons Tracking System 410,000 APF - DPS - Criminal Justice System Updates 2,301,000

AGR - Department of Agriculture 1,720,200 1,746,600 AGR - Nuclear Emergency Management Fund Assessment 26,400

AXS - AHCCCS 328,044,500 339,294,300 AXS - Formula Changes 5,406,400 (16,730,100) AXS - Statutory Adjustments 150,200 AXS - Prescription Drug Rebate One-Time Fund Shift 36,927,800 (36,927,800) AXS - IT System Costs (One-Time) 2,068,000 AXS - KidsCare 20,355,300

ART - Arizona Commission on the Arts 2,000,000 0 ART - Remove One-Time Budget Stabilization Fund (2,000,000)

BAT - Board of Athletic Training 123,500 123,500

17 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

ATT - Attorney General 49,023,800 55,194,300 ATT - Remove One-Time Sec. of State Litigation Funding (500,000) ATT - Remove One-Time Case Management IT Upgrade Funding (1,489,000) ATT - 3 Southern AZ FTEs (CPRF) 319,000 ATT - Shift Costs from Anti-Racketeering to CPRF 476,000 ATT - Shift Criminal Division from RICO to CPRF 850,000 ATT - Criminal Division CPRF: $950k '21; $2.3 M '22 & '23 Yes ATT - Rent Restoration 884,500 ATT - 2 GASL FTEs (CPRF) 250,000 ATT - Police Equipment Grants (One-Time) 2,500,000 ATT - Child and Family Advocacy Centers (One-Time) 400,000 ATT - Arizona Peace Officer Memorial Fund Deposit (One-Time) 1,000,000 ATT - Voter Fraud Unit (4 FTEs) 530,000 ATT - Survivors of Human Trafficking (One-Time) 300,000 ATT - First Responder Mental Health Training (One-Time) 400,000 ATT - Multidisciplinary Youth Program (One-Time) 250,000

ATA - Automobile Theft Authority 5,308,900 5,308,900

BAR - Board of Barbers 401,100 401,100

BHE - Board of Behavioral Health Examiners 1,772,300 1,772,300

DCS - Department of Child Safety 189,715,700 193,345,700 DCS - Remove One-Time Litigation Funding (3,770,000) DCS - Child Care Development Fund Authority 7,400,000 DCS - Transfer $608k from Out of Home to Kinship Yes

BCE - State Board of Chiropractic Examiners 429,700 429,700

ACA - Arizona Commerce Authority 0 2,500,000 ACA - Blockchain and Wearable Technology Applied Research (One-Time) 2,000,000 ACA - Institute for Automated Mobility (One-Time) 500,000

ROC - Registrar of Contractors 12,300,100 12,300,100

COR - Corporation Commission 26,965,900 26,965,900

ADC - Department of Corrections 53,963,100 53,005,100 ADC - Remove One-Time Equipment Funding (958,000)

18 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

COS - Board of Cosmetology 1,926,300 1,921,300 COS - Digitization (One-Time) 70,000 COS - Remove One-Time Document Scanning Funding (75,000)

CF - County Funding 500,000 500,000

JUS - Arizona Criminal Justice Commission 7,258,100 7,808,100 JUS - Remove One-time Criminal Justice Statistics Pilot Funding (200,000) JUS - Appropriate Statistical Analysis Center FTEs (2 FTEs) Yes JUS - Yavapai Felony Pretrial Intervention 750,000

SDB - AZ State Schools for the Deaf and the Blind 13,607,900 12,799,200 SDB - Base Level Increase - Formula 1,261,300 SDB - Early Childhood Services Fund Shift (1,600,000) SDB - Remove One-Time Equipment Funding (470,000)

HEA - Comm for the Deaf & the Hard of Hearing 4,613,500 4,613,500 HEA - Public Research/Policy FTE Yes

DEN - Board of Dental Examiners 1,300,500 1,212,700 DEN - Remove One-Time Document Scanning (87,800)

DES - Department of Economic Security 290,774,900 336,103,900 DES - Child Care Development Fund Authority 48,400,000 DES - Remove One-Time Early Intervention Funding (1,900,000) DES - Replace One-Time Adult Services Funding with Federal $ (1,171,000)

ADE - Arizona Department of Education 291,154,100 304,027,900 ADE - Land Trust Distribution 12,800,000 573,800 ADE - Remove One-Time Code Writing Funding (500,000)

EMA - Department of Emergency & Military Affairs 1,461,600 1,458,800 EMA - Nuclear Emergency Management Fund Assessment (2,800)

DEQ - Department of Environmental Quality 82,063,500 84,632,800 DEQ - Wastewater Infrastructure - Nogales (VEI/Air Quality) 2,569,300

OEO - Governor's Office of Equal Opportunity 190,700 190,700

COL - Arizona Exposition and State Fair Board 12,549,300 13,204,900 19 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27 COL - Prop 206 Minimum Wage Increase 90,600 COL - Security 565,000

DFI - Dept of Financial Institutions 4,012,600 4,000,600 DFI - Remove One-Time Equipment Funding (12,000)

EMB - Board of Funeral Directors and Embalmers 443,400 379,700 EMB - Remove One-Time IT Funding (Add 20 lapsing) (75,000) EMB - Retirement Payout 11,300

FIS - Arizona Game and Fish Department 42,752,600 42,752,600

GAM - Department of Gaming 15,657,700 16,009,700 GAM - Unarmed Combat Subaccount (Now Appropriated Fund) 126,500 (26,500) GAM - Yavapai Racetrack Staffing 252,000

DHS - Department of Health Services 51,203,700 56,060,200 DHS - COSF/Indirect Fund Lab Cost Shift ($230.1K) Yes DHS - 25 FTEs Licensing (2018 Opioid Bill) 2,686,500 DHS - Radiation Reg Salaries/Other 660,000 DHS - Licensing Indirect Cost Charge 1,200,000 DHS - Retain One-Time Alzheimer's Funding (2,000,000) 2,000,000 DHS - Retain Multi-Year Biomedical Research Funding (2,000,000) 2,000,000 DHS - ASH Temporary Staff Cost Increase 310,000

HOM - Board of Homeopathic & Integrated Medicine Examiners 90,700 40,200 HOM - Share Staff with Acupuncture (50,500)

DOH - Department of Housing 322,200 322,200

IND - Industrial Commission 20,001,800 20,001,800

SPA - Judiciary - Supreme Court 30,446,900 30,426,900 SPA - Remove One-Time IT Programming Funding (20,000)

SUP - Judiciary - Superior Court 11,958,100 11,958,100

DJC - Department of Juvenile Corrections 17,657,400 6,397,400 DJC - Eliminate County Cost Sharing (Non-Maricopa/Pima Permanent) (11,260,000)

LAN - State Land Department 8,048,800 8,048,800

20 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

LIQ - Department of Liquor Licenses & Control 3,086,000 3,267,300 LIQ - Litigation Costs/General Operating 20,000 LIQ - Increase AG Assignment to Full Time 69,600 LIQ - Information Technology Funding 50,000 LIQ - Add Customer Service FTE 41,700

LOT - Arizona State Lottery Commission 138,586,200 146,787,100 LOT - Tab Ticket Increase 175,900 LOT - On-Line Sales Decrease (1,301,100) LOT - Instant Ticket Sales Increase 2,693,100 LOT - Retailer Commissions Increase 6,633,000

BMT - Board of Massage Therapy 460,900 460,900

MED - Arizona Medical Board 6,987,100 6,987,100

MIN - State Mine Inspector 112,900 112,900

NAT - Naturopathic Physicians Medical Board 187,400 187,400

NAV - Navigable Stream Adjudication Commission 200,000 200,000

NUR - State Board of Nursing 4,738,200 4,738,200 NUR - FTE Position Increase (6.3 FTEs) Yes

NCI - Nursing Care Inst. Administrators Board 443,600 443,600

OCC - Board of Occupational Therapy Examiners 190,100 197,200 OCC - Contract with Athletic Training Board 7,100

DIS - State Board of Dispensing Opticians 149,100 149,100

OPT - State Board of Optometry 243,800 233,800 OPT - Remove One-Time Document Scanning Funding (10,000)

OST - AZ Board of Osteopathic Examiners in Medicine/Surgery 903,500 997,200 OST - Increased Investigation Staff Hours 93,700

SPB - Arizona State Parks Board 14,771,400 16,630,600 SPB - Eliminate OHV Fund for Operating/Backfill with Park Fees 692,100

21 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27 SPB - Great Western Trail (OHV) 692,100 SPB - Arizona Trail 250,000 SPB - Buckskin Fire District Equipment 225,000

PER - Personnel Board 361,000 361,000 PER - Reduction in FTE Position (42,200) 42,200

PHA - Arizona State Board of Pharmacy 2,190,000 2,642,200 PHA - Compliance Officer and Investigators (3 FTEs) 329,000 PHA - Full-Time Assistant Attorney General 68,200 PHA - New Office Equipment (One-Time) 55,000

PHY - Board of Physical Therapy Examiners 499,600 494,600 PHY - Remove One-Time Document Scanning Funding (5,000)

PIO - Arizona Pioneers' Home 6,684,000 6,552,200 PIO - Remove One-Time Equipment Funding (131,800)

POD - State Board of Podiatry Examiners 161,900 161,900

POS - Commission for Postsecondary Education 1,537,200 1,537,200

PRI - Board for Private Postsecondary Education 417,800 417,800

PSY - State Board of Psychologist Examiners 495,000 507,000 PSY - E-Licensing System Enhancements 12,000

DPS - Department of Public Safety 188,320,300 239,172,400 DPS - Remove One-Time Maricopa County Troopers Funding (397,000) DPS - Remove One-Time Southern Arizona Troopers Funding (793,900) DPS - Continue One-Time AZPOST Funding (Highway Patrol Fund) (837,000) 1,027,300 DPS - Adjust Peace Officer Training Equipment Funding (2,005,500) DPS - Highway Safety Fee Fund Shift 30,000,000 24,056,800 DPS - HURF Reduction/Highway Safety Fee Shift ($15.5 M) Yes Yes DPS - State Highway Fund/Highway Safety Fee Shift Yes Yes - $7.8 M DPS - Remove One-Time Phar. Diversion Task Force Funding (198,600) DPS - Shift Drug Task Force to Highway Patrol ($559k) Yes

RUC - Residential Utility Consumer Office 1,342,600 1,342,600

RES - Board of Respiratory Care Examiners 314,400 314,400

22 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

RET - Arizona State Retirement System 25,030,300 24,130,300 RET - 5 FTE Positions Reduction Yes RET - Long Term Disability Contract Savings (400,000) RET - Remove One-Time IT Funding (500,000)

REV - Department of Revenue 47,323,200 49,348,500 REV - Remove ESA Administration Funding (Prop 305) (50,000) REV - Increase Unclaimed Property Audit Funding 150,300 REV - Remove One-Time TPT Contracting Study Funding (75,000) REV - Formalize ISA from AHCCCS for Tobacco Tax Unit Yes REV - Wayfair Administration (One-Time) 2,000,000

SOS - Secretary of State 8,823,600 744,400 SOS - Reduction of Elections Services Line Item (615,500) SOS - Remove Voter Registration System Funding (2,063,300) SOS - Remove Unallocated HAVA Funding (5,400,400)

TEC - State Board of Technical Registration 2,291,700 2,189,700 TEC - Remove One-Time e-Licensing (102,000)

DOT - Department of Transportation 414,458,300 431,674,700 DOT - Remove One-Time Equipment Funding (2,434,200) DOT - Shift $25.6M from Highway Maintenance to Preventative Trtmt Yes DOT - Increase Preventative Road Treatment 10,535,200 DOT - New South Mountain Freeway Maintenance 2,173,000 DOT - Highway Maintenance Workload 514,900 DOT - Security Systems - Ports of Entry 951,500 DOT - Highway Damage Recovery Appropriation Adjustment 4,000,000 DOT - Second Special License Plate 122,500 DOT - Driver License and License Plate Volume Increase 297,700 DOT - Rent Appropriation Correction 127,800 DOT - New Flagstaff Office Appropriation Extension Yes DOT - SETIF and VITEF $600K Shift Yes DOT - Weigh Scales Line Item Shift Yes DOT - Interlock and DUI Fund $170K Shift Yes DOT - Create ADOT Motor Pool Fund In FY 21 DOT - Aeronautics Program Grant Management (2 FTEs) 178,000 DOT - License Plate/Signage 750,000

TRE - State Treasurer 5,429,600 5,809,600

23 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27 TRE - 3 FTEs/IT Upgrades 380,000

UNI - Universities UNI - ASU 663,674,600 663,674,600

UNI - Northern Arizona University 160,958,900 160,958,900

UNI - UA - Main Campus 385,101,700 385,101,700

UNI - UA - Health Sciences Center 53,623,800 53,623,800

VSC - Department of Veterans' Services 35,414,100 35,414,100

VME - Veterinary Medical Examining Board 605,500 591,100 VME - Remove One-Time E-Licensing Upgrade Funding (14,400)

WAT - Department of Water Resources 2,427,100 2,427,100

OTH - Other OTH - ADOA Federal Financial Participation Repayment Supplemental 9,168,400 (9,168,400) 0 OTH - ADOA - APF - e-Licensing Project Supplemental (450,000) 450,000 0 OTH - DCS Child Care Subsidy Rate Supplemental 7,400,000 0 0 OTH - DES Child Care Subsidy Rate Supplemental 48,400,000 0 0 OTH - DES DD State-Only Caseload Growth Supplemental 1,000,000 0 0 OTH - ADE Basic State Aid Supplemental 6,833,400 0 0 OTH - Named Claimants Supplemental 298,600 0 0 OTH - Risk Management Adjustments (No Change to ADOT) 0 0 623,400 623,400 OTH - IT Pro Rata Adjustments 0 0 900,000 900,000 OTH - Retirement Adjustments 0 0 4,000,000 4,000,000 OTH - Salary Adjustments 0 0 1,196,000 1,196,000 OTH - HITF Premiums - Eliminate One-Time '19 0 (10,000,000) 0 (10,000,000) OTH - HITF '20 Premium One-Time Adjustments 0 0 10,000,000 10,000,000 OTH - Agency Rent Adjustments 0 0 (70,000) (70,000) OTH - COSF Rental Rate Increase 0 0 900,000 900,000 OTH - Shared Services Adjustments 0 0 100,000 100,000 OTH - Unallocated HITF One-Time Employer Premium 1,306,900 (1,306,900) 0 OTH - Unallocated State Rent - Agency Relocation (3,700) 3,700 0 OTH - Unallocated State Rent Increase 246,500 (246,500) 0 OTH - Unallocated IT Rate Increase 72,200 (72,200) 0 OTH - Unallocated Retirement Adjustments 416,000 (416,000) 0 OTH - Unallocated Elected Officials Retirement Adjustments 22,300 (22,300) 0

24 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

TOTAL - OPERATING SPENDING CHANGES $4,055,295,400 22,063,700 126,601,200 $4,140,028,300

CAPITAL SPENDING CHANGES

Building Renewal Arizona Department of Administration 11,000,000 6,000,000 17,000,000 ADC Building Renewal 5,464,300 1,400,000 6,864,300 Game & Fish Department 981,400 62,300 See Below 1,043,700 Arizona Lottery Commission 126,300 7,800 134,100 Arizona Department of Transportation 5,492,000 7,789,700 13,281,700 New Projects ADOA - 1275 W. Washington Demolition 1,000,000 (1,000,000) 0 ADOA - Capitol Mall Consolidation Fund 10,000,000 (10,000,000) 0 ADOA - Air Handler Units 0 1,000,000 1,000,000 ADOA - Capitol Mall Elevator Replacement Supplemental 4,100,000 0 State Fair Civic Building Roof 0 400,000 400,000 Arizona Exposition and State Fair 1,000,000 (1,000,000) 1,300,000 1,300,000 Game & Fish Department - Dam Maintenance 150,000 (150,000) 150,000 150,000 Game & Fish Department - Property Maintenance 300,000 (300,000) 300,000 300,000 Game & Fish Department - Hatchery Maintenance 0 400,000 400,000 State Parks Board Capital Projects 2,000,000 (2,000,000) 0 State Parks Board - Buckskin Mountain (+ $1M SLIF) 1,500,000 (1,500,000) 0 State Parks Board - Oracle State Park 4,000,000 (4,000,000) 0 State Parks Board - Tonto Bridge Repairs 0 1,250,000 1,250,000 Pioneers' Home - Building Repairs 600,000 (600,000) 414,000 414,000 DPS - 202 Radio Tower 0 0 309,000 309,000 DPS - Remote Officer Housing (Highway Patrol) 800,000 (800,000) 2,400,000 2,400,000 ADOT - Statewide Highway Construction 114,952,000 14,536,000 129,488,000 ADOT - Controlled Access 103,833,000 9,609,000 113,442,000 ADOT - Debt Service 144,232,000 6,270,000 150,502,000 ADOT - Airport Planning 18,798,500 4,321,500 10,000,000 33,120,000 ADOT - Seligman/Williams Maintenance Bldgs 0 0 2,300,000 2,300,000 ADOT - Wickenburg Maintenance Yard 0 0 4,600,000 4,600,000 ADOT - Spreader Racks - Replacing 17 1,720,000 (1,720,000) 0 ADOT - Keams Canyon Truck Barn/Office 1,790,000 (1,790,000) 0 ADOA - Interstate 17 Expansion 0 40,000,000 40,000,000 ADOT - New Materials Test Lab 2,250,000 (2,250,000) 0 Veterans' Services - Flagstaff/Yuma Homes Additional Costs 8,000,000 (8,000,000) 0

TOTAL - CAPITAL SPENDING CHANGES $444,089,500 (303,400) 80,012,700 $519,698,800 25 FY 2019 OF FY 20 Baseline 1/ FY 20 5/27 Chng FY 2020 OF 5/27 Above FY 19 to FY 20 Baseline 5/27

TOTAL - OPERATING & CAPITAL SPENDING $4,499,384,900 21,760,300 206,613,900 $4,659,727,100

FUND TRANSFERS APF/DOA - Automation Projects Fund - All For IT Projects APF/DOA - ADOA Automation Operations for IT 5,330,000 (5,330,000) 0 APF/DOA - ADOA State Web Portal for IT 3,517,000 (3,517,000) 0 APF/DOA - ADOA Personnel Fund for IT 171,900 (171,900) 0 APF/DOA - Behavioral Health Examiners for e-Licensing 450,000 (450,000) 0 APF/DOA - DEQ Permit Administration for IT 1,800,000 (1,800,000) 0 APF/DOA - DEQ Underground Storage Tank for IT 1,400,000 (1,400,000) 0 APF/DOA - Public Safety Equipment Fund for DPS IT 1,250,000 (1,250,000) 0 APF/DOA - DPS Highway Patrol Fund for IT 2,806,200 (2,806,200) 0 APF/DOA - DFI Receivership Revolving Fund for e-Licensing 1,400,000 (1,400,000) 0 APF/DOA - ADE Empowerment Scholarship Account Fund for AELAS 3,000,000 3,000,000 APF/DOA - Medical Examiners Board Fund for IT 300,000 300,000 APF/DOA - DPS Highway Patrol Fund for IT 2,301,000 2,301,000 APF/DOA - DPS Concealed Weapons Permit Fund for IT 410,000 410,000 APF/DOA - Agriculture Air Quality Fund for IT 200,000 200,000

Other Transfers DPS - Highway Patrol Fund to Highway Fund (Highway Safety Fee) 0 15,492,300 15,492,300

TOTAL - FUND TRANSFERS $18,125,100 (18,125,100) 21,703,300 $21,703,300

______1/ Represents FY 2020 Baseline cost above FY 2019 Baseline.

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FY 2020 BUDGET RECONCILIATION BILL PROVISIONS

The budget includes the enactment of statutory changes associated with its funding amount. The following provisions would be grouped by subject into Budget Reconciliation Bills (BRBs).

BUDGET PROCEDURES (HB 2751/SB 1550)

Statewide Section 1. As session law, increase the FY 2020 Capital Outlay Stabilization Fund (COSF) rental rate charged by the Arizona Department of 14 Administration (ADOA) at $17.87/square foot for rentable office space and $6.43/square foot for rentable storage space. 2. As session law, continue to require unrestricted Federal Funds to be deposited in the General Fund for the payment of essential government 13 services. 3. As permanent law, change the Information Technology pro rata rate from 0.3% to 0.43% beginning July 1, 2019. 3,20 4. As permanent law, change the deadline, from June 1 to July 1, for the Governor to provide the forms to be used by budget units in 6 submitting their budget estimates and request for appropriations. (Session law last year). 5. As session law, continue to notwithstand the requirements for any deposit to or any withdrawals from the Budget Stabilization Fund through 15 FY 2022. 6. As permanent law, reduce the number of hard copies of budget submissions from state agencies from 5 to 2. 7 7. As permanent law, require agencies to seek approval from OSPB and ADOA prior to implementing line item transfers. 2,8

Arizona Department of Administration 8. As permanent law, eliminate the JLBC review requirement for the AFIS transaction fee. 10 9. As permanent law, modify requirement that ADOA annually report on the Emergency Telecommunication Services Revolving Fund to include 9 all expenditures and eliminate JLBC review requirement. Previous session law required ADOA to submit a report for review on wireless expenditures. 10. As permanent law, amend A.R.S. § 18-421 to expand the allowable uses of the State Web Portal Fund to include operations of the 4 Government Transformation Office.

Office of Economic Opportunity 11. As permanent law, require the Arizona Industrial Development Authority to report on its annual revenues, expenditures, and program 11 activity by October 1 annually.

Public Safety Personnel Retirement System 12. As session, notwithstand statute to require PSPRS to submit a final report on contribution rate for the ensuing fiscal year on December 1st 18 instead of December 31st.

Department of Revenue 13. As permanent law, continue to allow the Liability Setoff Program Revolving Fund to be used for general operating expenditures of the 12 department. This provision had previously been authorized as session law.

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Secretary of State 14. As permanent law, create a county contributions fund for the operational costs of the state's voter registration system. County contributions 1 currently comingled with other monies. 15. As session law, allow political parties to opt out of participating in the 2020 presidential preference election by submitting written notice to 19 the Secretary of State by September 16, 2019.

Department of Transportation 16. As permanent law, establish an appropriated Motor Pool Fund for the purposes of reimbursing the Department of Transportation for costs 5,16 related to implementing an intergovernmental agreement with the Department of Administration. The fund would become effective July 1, 2020. As session law, require a joint report of ADOA and ADOT to the JLBC and OSPB by October 1, 2019 and October 1, 2020 on the progress in transitioning the state motor pool operations to the ADOT and necessary legislative changes to fully implement the transfer.

State Treasurer 17. As session law, when merging the Treasurer’s Operating and Management Funds, include language to transfer the unexpended and 17 unencumbered balance

CRIMINAL JUSTICE(HB 2752/SB 1557)

Section Attorney General – Department of Law 18. As session law, on June 30, 2019, transfer to the General Fund any unobligated balance from the Colorado River Land Claims Revolving Fund. 7 19. As permanent law, prohibit the use of the Anti-Racketeering Revolving Fund (ARRF) for more than 16 FTE Positions within the Attorney 1 General’s office. 20. As permanent law, increase the non-appropriated expenditure authority of the Consumer Remediation Subaccount from $3,500,000 to 5 $4,000,000.

State Department of Corrections 21. As session law, continue to require the department to report actual FY 2019, estimated FY 2020, and requested FY 2021 expenditures as 12 delineated in the prior year when the department submits its FY 2021 budget request pursuant to A.R.S. § 35-113. 22. As permanent law, exempt correctional officers from jury duty until January 1, 2022. 2

Department of Emergency and Military Affairs 23. As session law, extend to FY 2020 the lapsing date of the FY 2019 appropriation of $1.25 million from the Military Installation Fund for the 6 construction of a new Readiness Center.

Department of Juvenile Corrections 24. As permanent law, repeal the requirement for all counties except Maricopa and Pima to pay an assessed amount determined by the county’s 4,15 proportional share by population of $11,260,000 for the costs of the Department of Juvenile Corrections. As session law, suspend the $8,450,900 in county cost sharing for Maricopa and Pima Counties on a one-time basis in FY 2020.

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Department of Public Safety 25. As session law, continue to require the Department of Public Safety (DPS) to receive JLBC review of the expenditure plan for the Gang and 10 Immigration Intelligence Team Enforcement Mission (GIITEM) Border Security and Law Enforcement Subaccount FY 2020 appropriation prior to its expenditure. 26. As session law, continue to allow the use of the Concealed Weapons Permit Fund and the State Aid to Indigent Defense Fund for DPS 13 operating expenses. 27. As session law, continue to allow DPS to utilize $144,900 from the FY 2020 GIITEM Subaccount appropriation for costs related to an increase 11 in the PSPRS employer contribution rate. 28. As session law, continue to allocate $400,000 from the GIITEM General Fund distribution to the Pima County Sheriff's Office. 9 29. As session , allow DPS to use the Highway Patrol Fund for the Pharmaceutical Diversion and Drug Theft Task Force on a one-time basis in FY 14 2020. The Task Force had previously been funded by the Arizona Drug and Gang Resource Center Fund. 30. As session law, allow the Department of Public Safety to use the Board of Fingerprinting Fund for capital expenditures. 8 31. As permanent law, repeal the highway safety fee effective June 30, 2021. Eliminate the rulemaking exemption for setting the fee. 3 32. As permanent law, repeal the requirement that the ADOT director establish the Highway Safety Fee at 110% of the cost of the Highway 3 Patrol budget.

ENVIRONMENT (HB 2753/SB 1556)

Section Department of Agriculture 33. As permanent law, authorize the department to re-record livestock brands of the same design that were issued prior to August 3, 2017 1 without protest.

Department of Environmental Quality 34. As session law, continue to allow the department to utilize up to $6,531,000 from the Underground Storage Tank (UST) Fund in FY 2020 for 8 department administrative expenses and for sewage remediation. 35. As session law, continue to suspend the requirement to appropriate $15,000,000 from the state General Fund to the Water Quality 10 Assurance Revolving Fund (WQARF). The fund sources for WQARF in FY 2020 would be as follows: $5,000,000 from the Underground Storage Tank Revolving Fund, $2,800,000 from the Vehicle Emissions Inspection Fund, $2,600,000 from the Air Quality Fund, $2,152,000 from the Recycling Fund, and $1,000,000 from the Permit Administration Fund for a total of $13,552,000. With $2,000,000 of non- appropriated funds, total WQARF funding would be $15,552,000. 36. As session law, continue to include a legislative intent statement that the WQARF appropriations are being supplemented by $2,000,000 of 10 non-appropriated monies directly deposited into WQARF, which consists of other revenue generated from various license and registration fees. 37. As session law, continue the FY 2019 level of vehicle emissions inspection fees in FY 2020 (FY 2019 fees are $3 less than FY 2016 in Area A, 11 which includes Maricopa County and portions of Pinal and Yavapai Counties.) 38. As permanent law, amend A.R.S. § 49-544 to allow the department to use the Vehicle Emissions Inspections Fund to pay for the travel 5 reduction programs in Maricopa and Pima Counties. 39. As permanent law, allow monies in the Permit Administration Fund to be used for staff support to the Oil and Gas Conservation Commission. 4

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Department of Forestry and Fire Management 40. As permanent law, increase the maximum loan that the Department of Forestry and Fire Management may receive from the Budget 2 Stabilization Fund for federal wildland fire claims expenses awaiting reimbursement from the federal government from $10,000,000 to $20,000,000. 41. As permanent law, establish the Nonnative Vegetative Species Eradication Fund to provide grants to other state agencies, cities, towns, 3 counties, Indian tribes, other political subdivisions, and nonprofit organizations for projects that will assist in preventing fire and flooding, conserving water, replacing nonnative vegetative species with native vegetative species and restoring habitat to wildlife. The fund would be non-appropriated and would consist of legislative appropriations. Requires a September 1, 2020 report from the department to the Legislature on the use of the funds from the prior year.

Arizona Navigable Stream Adjudication Commission 42. As session law, continue to allow use of the Water Banking Fund for the commission’s legal obligations. 9

Arizona State Parks Board 43. As session law, require the board to allocate $692,100 from the Off-Highway Vehicle Recreation Fund for the Great Western Trail instead of 6 the agency operating budget. The agency's operating budget is increased by a corresponding $692,100 from the State Parks Revolving Fund.

Department of Water Resources 44. As session law, continue to allow the department’s Water Protection Fund Commission to spend up to $336,000 on administrative functions 7 out of their unobligated balances in FY 2020. 45. As session law, continue to allow the department non-municipality special fee authority, including an intent clause that limits additional 12 revenue up to $100,200, and exempt the department from rulemaking for this purpose.

HEALTH (HB 2754/SB 1553)

Section AHCCCS Rates and Services 46. As session law, continue the FY 2010 risk contingency rate reduction for all managed care organizations. Continue to impose a reduction on 20 funding for all managed care organizations administrative funding levels. 47. As permanent law, repeal the requirement that AHCCCS freeze enrollment in the KidsCare program when the match rate falls below 100%. 10 Restores AHCCCS authority to freeze enrollment if the director determines that state and federal funding for the program is insufficient. 48. As permanent law, allows monies in the Seriously Mentally Ill Housing Trust Fund to be expended on rental assistance for seriously mentally 11 ill persons. Counties 49. As session law, set the FY 2020 county Arizona Long Term Care System (ALTCS) contributions at $290,276,100. 14 50. As session law, set the County Acute Care contribution at $46,161,700. This amount includes an inflation indexing of the Maricopa County 17 contribution as required by Laws 2005, Chapter 328. 51. As session law, continue to exclude Proposition 204 administration costs from county expenditure limitations. 18

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52. As session law, continue to require AHCCCS to transfer any excess monies back to the counties by December 31, 2020 if the counties’ 16 proportion of state match exceeds the proportion allowed in order to comply with the Federal Affordable Care Act. Hospitals 53. As session law, continue to establish FY 2020 disproportionate share (DSH) distributions to the Maricopa Special Healthcare District (MIHS), 15 the Arizona State Hospital, private qualifying disproportionate share hospitals, and Yuma Regional Medical Center. Keep the MIHS distribution of $113,818,500 in FY 2020. 54. As session law, continue to require AHCCCS to give priority to rural hospitals in Pool 5 distribution, and allow MIHS to be eligible for Pool 5 15 allocations. Permit local jurisdictions to provide additional local match for Pool 5 distributions. Available Funding 55. As session law, continue to state that it is the intent of the Legislature that AHCCCS implement a program within its available appropriation. 24 Reports 56. As permanent law, continue to require AHCCCS and the Department of Health Services (DHS) to submit a joint report to the Legislature and 9 the Governor by January 2 of each year on hospital costs and charges. This provision had previously been authorized as session law. 57. As permanent law, continue to require AHCCCS to report to JLBC on or before January 2 of each year on the availability of inpatient 9 psychiatric treatment and "psychiatric boarding" in emergency rooms for children and adults enrolled in Arizona’s Regional Behavioral Health Authorities. This provision had previously been authorized as session law. 58. As session law, require AHCCCS to complete a study with a contracted third party entity on or before January 31, 2022 on the costs and 23 effectiveness of secure behavioral health residential facilities for individuals with a serious mental illness. The study must take into account impacts on outcomes related to health, employment, and interactions with the criminal justice system for such individuals.

Department of Economic Security 59. As permanent law, establish the Family Caregiver Grant Program beginning January 1, 2020 within the Department of Economic Security to 12,13 provide grants of up to $1,000 for expenses that relate directly to caring for or supporting a family member requiring assistance with activities of daily living. 60. As session law, notwithstand A.R.S. § 36-108.01 in order to allow the Department of Economic Security to use the Health Services Lottery 22 Fund for a Division of Developmental Disabilities (DDD) State-Only shortfall in FY 2019.

Department of Health Services 61. As permanent law, continue to require all cities and counties to pay 100% of cost of Restoration to Competency treatment at the Arizona 1 State Hospital. Allow counties to use any source of county revenue to make the transfers. This provision had previously been authorized as session law. 62. As session law, continue to exempt county expenditures on Restoration to Competency treatment at the Arizona State Hospital from county 19 expenditure limitations. 63. As permanent law, permit DHS to use Tobacco Tax and Health Care Fund - Health Research Account for Alzheimer’s disease research. This 8 provision had previously been authorized as session law. 64. As session law, continue to notwithstand A.R.S. § 5-572 and A.R.S. § 36-108.01 to allow the Health Services Lottery monies to be used for 22 homeless pregnant women services. 65. As session law, continue fee raising authority and an exemption relating to establishing fees for the Bureau of Radiation Control in FY 2020. 21 Includes an intent clause that limits additional revenues to $1,900,000. 66. As permanent law, continue to allow DHS to use the Disease Control Research Fund for AIDS reporting and surveillance. This provision had 2 previously been authorized as session law.

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67. As permanent law, require the Department of Health Services to license a new class of secure behavioral health residential facilities that 4,5,6,7 provide 24-hour onsite supervision to individuals with a serious mental illness who are chronically resistant to treatment and are placed in the facility pursuant to a court order. 68. As permanent law, only permit unlicensed behavioral health workers ages 18-20 to serve individuals receiving outpatient behavioral health 3 services. Inpatient behavioral health care would require unlicensed behavioral health workers to be age 21 or older.

HIGHER EDUCATION (HB 2750/SB 1552)

Section Community Colleges 69. As session law, continue to suspend the Operating State Aid funding formula in FY 2020 for Maricopa and Pima Counties. 10 70. As session law, continue to suspend Science, Technology, Engineering and Mathematics and Workforce Programs funding formula for FY 9 2020 and specify the funding in the General Appropriation Act, which for Pinal would again equal $96,500. 71. As permanent law, prohibit community college district employees from being compensated for work performed on behalf of an elected 1 employee representative organization.

Universities 72. As session law, continue to suspend the statutory requirement that the state provide a 2:1 ratio of state funding to student fees deposited 8 into Arizona Financial Aid Trust (AFAT). 73. As permanent law, amend A.R.S. § 35-146 to allow each university to retain revenue from tuition and fees instead of remitting those monies 7 to the State Treasurer. 74. As permanent law, expand eligibly for the Arizona Teachers Academy to include resident and non-resident university students enrolled in 4 education and non-education majors, community college students enrolled in a post-baccalaureate teacher certification program, and teachers seeking a national board certification. 75. As permanent law, in addition to STEM programs, require the Arizona Teachers Academy to include accelerated models for special education 4 and students committed to teaching in critical need areas of the state. 76. As permanent law, set Arizona Teachers Academy scholarships at $10,000 for graduate students, $5,000 for undergraduate students, $3,000 4 for community college post-baccalaureate students, and $2,500 for teachers seeking national board certification, and require scholarships to be awarded after all other aid received. 77. As permanent law, require ABOR, in consultation with eligible postsecondary institutions, to develop centralized administrative processes for 4 the Arizona Teachers Academy. 78. As permanent law, require ABOR to establish criteria for distributing monies appropriated for the Arizona Teachers Academy to eligible 4 institutions. 79. As permanent law, limit expenditures of monies appropriated for the Arizona Teachers Academy to scholarships, induction services, 4 marketing and promotion and administration of the program. Caps spending for administrative and marketing expenses at 3%. 80. As permanent law, cap tuition waivers for the Arizona Teachers Academy at 4 years (8 semesters) for university students and 2 years (4 4 semesters) for community college students in post-baccalaureate programs. 81. As permanent law, require non-Education majors in the Arizona Teachers Academy to complete one or more teacher preparation courses 4 prior to graduation.

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82. As permanent law, not allow universities and community colleges to charge the remaining balance of tuition and fees if the waiver provided 4 does not cover the total cost. 83. As permanent law, require the Arizona Teachers Academy teaching commitment (one year of support for every one year of teaching) for 4 students concurrently teaching and receiving support to begin after completion of the program. 84. As permanent law, require ABOR to establish repayment processes for students who fail to meet Arizona Teachers Academy service 4 requirements. 85. As permanent law, establish the non-appropriated Arizona Teachers Academy Fund consisting of legislative appropriations. The fund will be 4 administered by ABOR and the monies in the fund will be non-lapsing. 86. As permanent law, require that the General Fund appropriation for the Arizona Teachers Academy be reduced each fiscal year by the 4 amount of unexpended monies in the Arizona Teachers Academy Fund from the prior fiscal year. 87. As permanent law, require ABOR to submit a report to JLBC and OSPB by March 1 of each year including information on Arizona Teachers 4 Academy enrollment and the number of graduates receiving induction services in the current academic year, and information for monies committed from the fund in the current fiscal year. 88. As permanent law, require ABOR to include in the Arizona Teachers Academy annual report information on enrollment by program type and 4 year of enrollment, the number of students receiving induction services, the number of students who have completed repayment agreements, and ABOR’s annual funding distribution by eligible institution. Change annual report date from July to September 1. 89. As permanent law, repeals a section of the FY 2019 Higher Education BRB that continued the Arizona Teachers Academy after the 2017-2018 5 academic year. The FY 2020 Higher Education BRB makes the program permanent. 90. As permanent law, require universities to deposit 20% of cumulative net income exceeding $1.0 million for licensure and royalty agreements 2,3,6 to the Arizona Financial Aid Trust. Universities previously deposited 20% of net income to the General Fund for the first 3 years of an agreement and 20% of gross revenues to the General Fund after the first 3 years. 91. As permanent law, require universities to deposit 20% of cumulative net income exceeding $1.0 million for the sale of intellectual property 2,3,6 to the Arizona Financial Aid Trust. Universities previously deposited 25% of gross revenues to the General Fund.

HUMAN SERVICES (HB 2755/SB 1554)

Section Department of Child Safety 92. As permanent law, continue to require the department to report to the JLBC on or before February 1 of each year with the Early Childhood 1 Development and Health Board on collaborative efforts on child welfare issues. This provision had previously been authorized as session law.

Department of Economic Security 93. As session law, continue to require recipients of Temporary Assistance for Needy Families (TANF) Cash Benefits to pass a drug test in order to 7 be eligible for benefits if the Department of Economic Security (DES) has reasonable cause to believe that the recipient uses illegal drugs. 94. As permanent law, continue to permit DES to reduce income eligibility levels for all child care programs. Require DES to report to the JLBC 5 within 15 days of any change in levels. This provision had previously been authorized as session law. 95. As session law, continue to allow the Special Administration Fund to be used for purposes other than administration of unemployment 6 benefits.

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96. As permanent law, repeal the requirement in A.R.S. § 36-2960B to provide an inflation adjustment to the appropriation for DD High 3 Cost/High Need client services. 97. As permanent law, increase the annual fee for never-assisted child support cases from $25 to $35 pursuant to federal Bipartisan Budget Act 2 of 2018.

Department of Housing 98. As permanent law, allow the Department of Housing to expend Housing Trust Fund monies on constructing or renovating facilities and 4 housing assistance, including support services, for individuals with a serious mental illness and who are chronically resistant to treatment.

K-12 EDUCATION (HB 2749/SB 1551)

Section Arizona State Schools for the Deaf and Blind 99. As permanent law, remove the requirement that monies from the Enterprise Fund be used exclusively for operating ASDB facilities. 13

Department of Education Formula Requirements 100. As permanent law, increase the base level (A.R.S. § 15-901B2), the transportation funding levels (A.R.S. § 15-945A5) and the charter school 3,7,10 “Additional Assistance” amounts (A.R.S. § 15-185B4) by 2.0% for standard inflation. 101. As permanent law, increase the base level by an additional $111.16 (2.8%) to incorporate into Basic State Aid $164,700,000 for teacher salary 7 increases already appropriated for FY 2020 by Section 136 of the FY 2019 General Appropriation Act. 102. As permanent law, modify the Basic State Aid funding formula for education programs in county juvenile detention centers to increase the 9 "base amount" to $100,000 per county versus $20,000 currently and the "variable" amount per student within each county program to $25 per day versus $15 per day currently. As permanent law, require any excess monies in a county's Detention Center Education Fund to be used to supplement classroom spending. 103. As session law, amend Laws 2018, Chapter 285, Sections 27 and 28 to reduce the District Additional Assistance suspension for FY 2020 by an 20,21 additional $(64,366,500) and the Charter Additional Assistance suspension for FY 2020 by an additional $(3,407,200). Results-Based Funding 104. As session law, allocate Results-Based Funding using the same formula that was used in FY 2019, but based on AzMERIT test results from 25 spring 2018 rather than spring 2017. Under permanent law, the Results-Based Funding instead would be distributed in FY 2020 to schools with a letter grade A under the A-F performance rating developed by the State Board of Education. 105. As session law, expand eligibility to schools with AzMERIT test results in the top 13% versus top 10% currently for schools with less than 60% 25 of students eligible for free and reduced-price lunch (FRPL) and to the top 27% versus top 10% currently for schools with more than 60% FRPL eligibility. 106. As session law, establishes per-pupil funding levels of $225 for qualifying schools with less than 60% FRPL eligibility and for schools with more 25 than 60% FRPL eligibility that have AzMERIT results in the top 27%, but not the top 13% of schools with more than 60% FRPL eligibility. Qualifying schools with greater than 60% FRPL eligibility and with AzMERIT results in the top 13% of schools with 60% or more FRPL eligibility would receive $400. 107. As session law, provide an alternative school with $400 per student if it reported AzMERIT scores for both math and English language arts for 25 spring 2018 testing and its average pass rate for those two tests combined equaled or exceeded the average combined pass rate observed

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for the top 27% of schools with 60% or higher free or reduced price lunch eligibility rates. In prior years an alternative school instead received $400 per student if it was assigned the equivalent of a letter grade of “A” in 2014. 108. As permanent law, exclude from free and reduced-price lunch eligibility percentage calculations students who are not eligible to be included 5 in a school's student count (primarily preschool students). Clarifies allowable uses of program funding, and adds reporting requirements. CTE Industry Credential Incentive Program 109. As permanent law, establish the Arizona Industry Credential Incentive Program to provide awards of up to $1,000 per student for school 6 districts, charter schools or career and technical education districts for high school graduates who obtain a certification, credential, or license that is accepted by a vocation or industry through a career and technical education program. Establishes the Industry Credentials Incentive Fund to be administered by ADE. 110. As permanent law, require the Office of Economic Opportunity to provide a list to the Department of Education by September 1st annually 6 that identifies and ranks the top occupations in each industry that addresses a critical statewide, regional or local economic need. Following publication of the September 1st list, ADE shall align the in-demand list to ADE's credential list and by February 1st, the Quality Skills Commission shall review the list. 111. As permanent law, require the department to report by February 1st annually to the President of the Senate, the Speaker of the House, the 6 Governor and the Secretary of State on student participation in the program and the distribution of awards by school. 112. As permanent law, require the department to publish by March 1 annually the list of CTE certificates, credentials or licenses qualifying for a 6 $1,000 award from the program in the subsequent fiscal year and submit it to the JLBC for review. 113. As permanent law, allow program awards to school districts, charter schools, and career and technical education districts to be expended on 6 instructional costs and professional development for a CTE teacher, offset the costs of the certification to the student, development costs related to creating, expanding or improving an approved site of a certificate, credential license career and technical program courses, instructional hardware, software or supplies required for the certification, and career exploration and awareness activities for parents students and the community. Other 114. As session law, continue stating that it is the intent of the Legislature and Governor that school districts increase the total percentage of 27 classroom spending in the combined categories of instruction, student support and instructional support as defined by the Auditor General. 115. As permanent law, make the American Civics Education Fund a non-appropriated fund to eliminate the need for the Legislature to 22 appropriate monies both into and out of it. 116. As permanent law, delete the definition of "base level" for FY 2017 and prior years from A.R.S. § 15-901B2, as they are no longer needed. (A 7 new definition of "base level" is added to A.R.S. § 15-901B2 each year for the upcoming fiscal year.) 117. As permanent law, replace obsolete references to the Homeowners Rebate percentage in A.R.S. § 15-972B with the current rebate 11 percentage of 47.19% that was established by DOR for FY 2017 and subsequent years pursuant to Laws 2011, 2nd Special Session, Chapter 1, Section 127. 118. As permanent law, update the Qualifying Tax Rate and State Equalization Tax Rate cited in A.R.S. § 41-1276 to reflect the Truth in Taxation 18 rates established for FY 2020 under it. 119. As permanent law, amend A.R.S. § 15-249.06B and F to make the annual report on the College Credit by Examination Incentive Program not 4 subject to JLBC review. 120. As permanent law, modify A.R.S. 15-249.06 to require ADE to make payments to schools no later than March 1 each year. Permit schools to 4,26 appeal allocation of bonus monies no later than August 1 each year. Permit ADE to withhold up to $10,000 of bonus monies to address allocation appeals. Retroactive to July 1, 2018. 121. As permanent law, amend A.R.S. § 15-154 to allow school safety monies to also be used for school counselors or social workers and add 1,2 program definitions.

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122. As session law, amend Laws 2017, Chapter 284 to 1) extend the High-Quality Teacher Professional Development Pilot Program, which 19 provides scholarships and grants of up to $2,000 for teachers in high-need content areas, until July 1, 2025 versus July 1, 2022 currently, and 2) allow the Department of Education to retain up to 3% of monies appropriated for the pilot program to offset administrative costs. 123. As session law, notwithstand A.R.S. §15-185 to require the Department of Education to allocate the full amount of the small school weight 23 through FY 2020 to charter schools sponsored by entities other than the State Board for Charter Schools. Prohibits the department from seeking repayment of small school weight monies paid to such schools in prior years. The department would pay 67% of the small school weight to such schools in FY 2021 and 33% of the weight in FY 2022. Addresses ASU Preparatory Charter School. 124. As permanent law, set the K-12 State Equalization Tax Rate (SETR) for a county for a given fiscal year at the lesser of the “normal” statutory 12 rate or the rate that would have generated for its school districts collectively in the prior fiscal year the amount needed to backfill any of their K-12 formula costs not funded by Qualifying Tax Rate (QTR) revenues. 125. As session law, give Duncan Unified and Blue Elementary additional “budget capacity” (spending authority) for FY 2020 and require them to 24 fund that additional budget capacity with carry-forward monies rather than through tax rate increases. The additional capacity could only be expended upon capital. 126. As permanent law, stipulate for purposes of concurrent enrollment that every three credits that a K-12 student earns at a community college 8 or university course shall generate one-eighth of an Average Daily Membership under the Basic State Aid funding formula. 127. As permanent law, require the department to hire a third-party administrator to assist it in the financial administration of Arizona 17 Empowerment Scholarship Accounts.

School Facilities Board 128. As permanent law, require SFB to report to JLBC within 30 days of making a transfer into the Emergency Deficiencies Corrections Fund. 15 129. As permanent law, require the SFB to fund the construction of new schools, if needed, in 2 years for an elementary school, middle school or 14,16 high school. 130. As permanent law, at the point when the SFB approves the distribution of new school construction funding, allow the SFB to decline a 16 portion of the funding if the square footage is no longer needed due to revised enrollment projections. 131. As permanent law, change the date, from July 1 to September 1, for school districts to submit their capital plans to SFB. 16 132. As permanent law, change the date, from December 1 to December 15, for the SFB to approve new school construction projects. 16

REVENUE (HB 2756/SB 1555)

Section Statewide 133. As permanent law, require state agencies to include cost estimates associated with local minimum wages exceeding the statewide minimum 2,3 wage in their budget submissions. The Legislature may allocate an amount to be collected by ADOA from counties, cities, and towns that raise their minimum wage above the statewide minimum wage, which would reimburse the state for cost increases of state services resulting from local minimum wages. Counties, cities, and towns that do not comply with ADOA's collection would have the monies withheld from their Transaction Privilege Tax (TPT) distributions.

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Department of Agriculture 134. As session law, continue fee changing authority and an exemption relating to establishing fees for the Arizona Department of Agriculture in FY 11 2020. The bill continues an intent clause that limits additional revenues to $357,000.

Counties and Cities & Towns 135. As session law, continue to allow counties with a population below 250,000 in the 2010 decennial census to use any source of county revenue 12 to meet a county fiscal obligation for FY 2020, up to $1,250,000 of county revenue for each county. Requires counties using this authority to report to the Director of JLBC on the intended amount and sources of funds by October 1, 2019.

Department of Gaming 136. As session law, continue to set the Racing Wagering Assessment at 0.5% in FY 2020 only. 9

Department of Housing 137. As permanent law, as it relates to the Office of Manufactured Housing within the Department of Housing, modifies the definition of factory- 1,4 built building and defines in statute the terms: closed construction, open construction, commercial, residential.

Department of Insurance 138. As session law, continue to suspend the requirement that fees collected by the department be between 95% and 110% of the department’s 13 appropriation.

Department of Public Safety 139. As permanent law, establish the Public Safety Interoperability Fund which shall be used for DPS interoperable communication systems. The 5 fund is subject to legislative appropriation.

Department of Revenue 140. As session law, continue legislative intent statement that local fees to fund the Department of Revenue (DOR) are not to exceed $20,755,835 10 and are to be allocated between cities and towns, counties, the Maricopa Association of Governments and the Pima Association of Governments based on the prorated share of all revenues distributed to them (excluding Highway User Revenue Fund money). 141. As permanent law, expand the definition of "multistate service providers" used to determine the allocation of the sales of services for 7,8,14,15 corporate income tax purposes to include a taxpayer with more than 2,000 employees in this state and that derives more than 85% of its sales from support services provided to a regionally accredited institution of higher education. Addresses Grand Canyon University. 142. As permanent law, require that licensed escrow agents file an information return for sales of real property located in Arizona with the 6 Department of Revenue. Licensed escrow agents would be required to submit this return to the Department of Revenue by March 31 for sales closed during the prior calendar year. This provision is intended to increase compliance for capital gains taxes owed by non-residents that sell real estate in the state. Requires that DOR report to JLBC and OSPB annually on the additional estimated revenue collected from nonresident real estate transactions as a result of this new reporting requirement for licensed escrow agents.

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OMNIBUS TAX PROVISIONS (CONFORMITY/WAYFAIR) (HB 2757/SB 1546)

Tax Conformity/Wayfair 143. As session law, conforms Arizona to the federal definition of adjusted gross income as of January 1, 2018 for tax year 2018, and January 1, 2,12,30,31 2019 for tax year 2019. 144. As permanent law, reduces the number of tax brackets from 5 to 4 and reduces tax rates as follows: 17

Marginal Income Tax Rate/Bracket Comparison Brackets – Current Law Rates – Current Law Proposed Brackets Proposed Rates $0 - $10,600 2.59% $0 - $26,500 2.59% $10,601 – 26,500 2.88% Collapsed 2.59% $26,501 - $53,000 3.36% $26,501 - $53,000 3.34% $53,001 - $159,000 4.24% $53,001 - $159,000 4.17% $159,001 and over 4.54% $159,001 and over 4.50%

145. As permanent law, remove the Arizona subtraction from taxable income for lottery winnings. 18,19,21 146. As permanent law, increases the standard deduction as follows and indexes the standard deduction for inflation. 23

Standard Deduction Comparison Standard Deduction - Standard Deduction - Filing Status Current Law Proposed Single/Married Filing Separate $5,312 $12,000 Single Head of Household $10,613 $18,000 Married Filing Jointly $10,613 $24,000

147. As permanent law, eliminates the personal and dependent exemptions shown below. 3,15,16,20,22, 24,26,28,29 Eliminated Exemptions

Personal Exemption, No Dependents $2,200 Personal Exemption, Married with Dependents $6,600 Dependent Exemption $2,300

148. As permanent law, allows taxpayers that take the standard deduction to increase their standard deduction by 25% of their charitable 14,23 contributions that otherwise would have been deductible had they itemized their tax returns. 149. As permanent law, establishes a dependent tax credit of $100 for each dependent under 17 years old and $25 for each dependent age 17 and 13,27 above. This credit is to be phased out for singles with over $200,000 of adjusted gross income and $400,000 for married couples filing jointly. 150. As permanent law, establish as of October 1, 2019, the economic nexus thresholds under which an out-of-state business be required to collect 1,4,5,6,7,8,32, and remit tax on retail sales in Arizona. If the out-of-state business does not conduct sales through a marketplace facilitator, economic nexus 33 applies if sales in Arizona exceed $200,000 in calendar year 2019, $150,000 in calendar year 2020, and $100,000 in calendar year 2021 and

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thereafter. If the out-of-state business is a marketplace facilitator, economic nexus applies if sales in Arizona from the marketplace facilitator's own business or on behalf of at least one marketplace seller exceed $100,000 in the calendar year. 151. As permanent law, require municipal ordinances and other local laws related to the taxation of retail sales be superseded by the state's 10,11 transaction privilege tax statutes for the retail classification. 152. As permanent law, provides cities and towns the option to levy a transaction privilege tax on the sale of: (1) food for home consumption, (2) 11 textbooks required by a state university or community college sold at bookstores, (3) livestock and poultry feed, salt, vitamins and other additives used in the business of farming and ranching, (4) nonmetalliferous mined materials sold at retail, (5) works of fine art, and (6) motor vehicles sold to nonresidents or enrolled members of an Indian Tribe. 153. As permanent law, allows a city or town to continue to levy an existing transaction privilege tax, which was levied on or before May 1, 2019, 11 on the sale of: (1) propagative materials, including fertilizers, (2) implants used as growth promotants and injectable medicines for livestock or poultry, and (3) animals such as horses, sheep, and goats used as breeding or production stock. For a city or town with a population of 50,000 or less, the tax is only allowed to be levied through June 30, 2021. For a city or town with a population of more than 50,000, the tax is only allowed to be levied through December 31, 2019. 154. As permanent law, allows cities and towns the option to exempt from tax the sale of paintings, sculptures, or similar works of fine art if sold 9,11 by the original artist. 155. As session law, provides that the Legislature will not move any sales tax classifications other than retail from the Model City Tax Code to state 33 statute for a period of 5 years from the effective date of the act.

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FY 2020 MAJOR FOOTNOTE CHANGES

The Baseline includes the following major additions, deletions or modifications of footnotes. This list does not typically include footnote changes conforming to enacted policy. All footnotes appear in the General Appropriation Act unless designated with a "CO" for the Capital Outlay Act.

Arizona Department of Administration 1. Adds footnote extending the lapsing date of the FY 2017 appropriation for the Department of Corrections automation project appropriation 3 through FY 2020. 2. Deletes footnote that limits the subsidy that the department may provide for public transit opportunities to 50%. Adds footnote requiring the 8 department to report on pilot projects implemented in FY 2020 with those monies. 3. Adds footnote to restrict to $10.42 per user per month the amount that the department may charge for enterprise email and calendar 8 service. 4. Adds footnote specifying that the department shall distribute monies in the Public Safety Regional Communications line item to City of Sierra 8 Vista for technology infrastructure maintenance at the Southeastern Arizona Communications Center. 5. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building CO 2 renewal projects. (Capital) 6. Adds footnote extending the FY 2019 Capitol Mall Consolidation Fund appropriation through FY 2021. (Capital) CO 29 7. Adds footnote that conditions the availability of the appropriation for a second State Route 24 Ellsworth Road traffic interchange bridge CO 19 overpass structure on the Maricopa Association of Governments (MAG) including the first bridge overpass structure in its Regional Transportation Plan: Freeway Program in the ADOT Five Year Program by June 30, 2020. If MAG does not include the project in its plan, the appropriation would lapse on June 30, 2020. (Capital) 8. Adds footnote that conditions the availability of the appropriation for the I-40 Kingman Interchanges on the City of Kingman raising sufficient CO 22 funds for the remainder of the project budget otherwise the appropriation lapses on June 30, 2024. (Capital) 9. Adds footnote that conditions the availability of the appropriation for the Mariposa Port of Entry cold facility storage on the Greater Nogales CO 5 Santa Cruz County Port Authority providing sufficient funds for the remainder of the project budget otherwise the appropriation lapses on June 30, 2022. (Capital)

AHCCCS 10. Adds footnote specifying AHCCCS distributions of supplemental payments for graduate medical education programs to hospitals in counties 12 with a population of more than 500,000 people and hospitals in a county with less than 500,000 people. Stipulates that General Fund distributions may supplement, but not supplant voluntary political subdivision payments for graduate medical education programs. Requires AHCCCS to prioritize General Fund distributions to hospitals located in health professional shortage areas.

Department of Agriculture 11. Adds footnote specifying that $137,000 is appropriated from the General Fund for personal services, employee-related expenditures, and 11 salary increases and related expenditures for dairy inspectors.

Attorney General 12. Adds footnote appropriating $950,000 in FY 2021, $2.3 million in FY 2022, and $2.3 million in FY 2023 from CPRF. 14

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13. Adds footnote requiring the Attorney General to submit a report on its distribution of police equipment grants to the President of the Senate, 14 Speaker of the House, JLBC Staff, and OSPB Staff on or before March 1, 2020. 14. Adds footnote requiring the Attorney General to submit a report for review to the JLBC on its expenditure plan for the Arizona Peace Officer 14 Memorial Fund prior to expenditure. 15. Adds footnote requiring the Attorney General to forward complaints of the use of school resources to influence elections to the Governor, 14 House and Senate.

Department of Child Safety 16. Adds footnote requiring the Department of Child Safety to report to JLBC by January 2, 2020 on its efforts to implement the federal Family 19 First Prevention Act of 2018. The report shall provide information, including any fiscal impacts, associated DCS’ efforts to address federal funding changes for congregate care placements and in-home preventive services. 17. Modifies footnote for the Kinship Stipend to require the department to provide the stipend to all unlicensed kinship caregivers without 19 requiring the caregiver to file an application.

Arizona Commerce Authority 18. Adds footnote requiring the ACA report to the Joint Legislative Budget Committee on or before January 31, 2020 on its plan for distributing 130 rural broadband development grants. The appropriation is non-lapsing. 19. Requires ACA to submit an annual expenditure and performance report to JLBC and OSPB concerning applied research centers on blockchain 129 technology as well as the Institute for Automated Mobility

Community Colleges 20. Adds footnote requiring that the Dine board of regents submit a report by October 15, 2020 which details the course completion rate for 20 students who received remedial education during the 19-20 academic year.

Department of Corrections 21. Modifies footnote establishing annual bed capacity report to require ADC to provide rationale for 1) closing permanent beds rather than 24 temporary beds or 2) opening new beds. 22. Adds footnote requiring department to report on inmate healthcare performance measures and provides copies of court ordered reports on 24 or before August 1, 2019 and February 1, 2020. 23. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building CO 2 renewal projects. (Capital) 24. Adds footnote specifying that the appropriation includes $5,083,500 from the State General Fund to provide a 10% salary adjustment to 24 correctional officers at private prisons. 25. Adds footnote delineating the department's lump sum includes $384,534,400 for personal services and $240,063,200 for employee related 24 expenditures. Requires the department to submit an expenditure plan for JLBC review prior to spending these monies on non-personal services or employee related expenditures. 26. Adds footnote requiring department to submit a report on quarterly benchmarks for correctional officer staffing for JLBC review 24 27. Modifies existing footnote requiring the department to submit monthly on month and year-to-date expenditures to include correctional 24 officer and medical staff staffing levels. 28. Adds footnote requiring the department to obtain approval from the Arizona Strategic Enterprise Office and the Information Technology 24 Authorization Committee prior to using any monies for the replacement of the adult inmate management system

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29. Adds footnote requiring the Arizona Strategic Enterprise Technology (ASET) Office to submit an expenditure plan on behalf of the department 24 to the JLBC for review prior to the expenditure of any monies for the replacement of the adult inmate management system. The expenditure plan shall include the project cost, deliverables, timeline for completion and method of procurement consistent with the department's prior reports for its appropriations from the Automation Project Fund

Board of Cosmetology 30. Adds footnote extending annual leave payout line item appropriations through FY 2023. 25

Office of Economic Opportunity (Water Infrastructure Finance Authority) 31. Adds footnote requiring WIFA to submit a report annually on or before December 31 to the JLBC on the allocation of funds from the Small 132 Drinking Water Systems Fund. The report shall be submitted through fiscal year 2022.

Department of Economic Security 32. Adds footnote requiring DES to engage with community stakeholders prior to implementing provider rate increases for FY 2020. Requires DES 31 to report to JLBC on its stakeholder engagement efforts and plans to increase provider rates by August 1, 2019. 33. Modifies footnote to authorize DES to receive a loan from the Budget Stabilization Fund on or after April 1, 2020 to provide funding for 109 reimbursement of federal grants as part of the closing process for fiscal year 2020. DES must notify JLBC and OSPB before using the loan authority. The loan must be repaid on or before September 1, 2020. 34. Adds footnote requiring the Arizona Strategic Enterprise Technology (ASET) Office to submit an expenditure plan on behalf of the department 31 to the JLBC for review prior to the expenditure of any monies for the replacement of child support IT system. The expenditure plan shall include the project cost, deliverables, timeline for completion and method of procurement consistent with the department's prior reports for its appropriations from the Automation Project Fund 35. Adds footnote appropriating $150,000 from political subdivisions funds and $350,000 from developmental disabilities Medicaid expenditure 108 authority in FY 2019 for assistance to developmental disabilities providers in the city of Flagstaff. Authorizes DES to spend $2 of developmental disabilities Medicaid expenditure authority for every $1 of funds provided by the city of Flagstaff. The appropriation is non- lapsing.

Department of Education 36. Modifies footnote to include the Special Education Fund line item as another potential source of, and recipient of, monies in FY 2020 to 33 resolve FY 2019 formula funding shortfalls. 37. Adds footnote appropriating $30 million eliminate the K-12 rollover in FY 2022 for districts with a student count of less than 1,350 pupils. 164 38. Adds footnote that makes non-lapsing until July 1, 2022 the $50,000 state General Fund appropriation to the department that is for 136 distribution to any new unified school created as the result of an election in 2019 or 2020 pursuant to A.R.S. §15-459, Subsection F. 39. Adds footnotes stipulating that state General Fund monies appropriated in FY 2020 for schools on proving grounds 1) may only be used to 135 demolish an existing or former school that is located on a proving ground operated by the United States Army or to construct a new replacement school on that same proving ground, 2) may be spent only if the United States Department of Defense provides matching monies equivalent to 80% of project costs, and 3) do not lapse until the until the project is completed or abandoned unless no expenditure or encumbrance has been made by October 1, 2029, and 4) revert to the state General Fund on October 1, 2029 if unexpended and unencumbered.

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Exposition and State Fair Board 40. Adds footnote requiring the Exposition and State Fair Board to allocate from the appropriation for capital improvements an amount sufficient for the repayment of Arizona Department of Administration building renewal. (Capital)

Department of Forestry and Fire Management 41. Adds footnote stipulating that monies appropriated for the Taylor Fire Training Center line item shall be distributed to the Navajo County 41 Community College District to fund a public safety and emergency training facility. The facility shall be available to both public and private entities for training. The appropriation is non-lapsing. 42. Adds footnote appropriating $1,000,000 from the General Fund to the Nonnative Vegetative Species Eradication Fund in FY 2021 through FY 142 2029. Monies from the line item are used to provide grants for nonnative vegetative species eradication projects that will assist in preventing fire and flooding. 43. Adds footnote making the appropriation for the Mount Lemmon Fire District non-lapsing through December 31, 2021. 141

Board of Funeral Directors and Embalmers 44. Adds footnote extending FY 2019 appropriation for document digitization services through FY 2020 111

Game and Fish Department 45. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building CO 2 renewal projects. (Capital)

Department of Health Services 46. Continues footnote requiring DHS to distribute biomedical research support funding to a nonprofit medical research institute specializing in 47 genomic technologies and sequencing to clinical care and requires the recipient to commission an annual audit of expenditures to submit to the department by February 1 each year. 47. Adds footnote specifying that $700,000 is appropriated from the General Fund to the department to establish a community-based primary 144 care program in a geographically isolated area of the state which is medically underserved, has a health professional shortage, and a population less than 15,000 persons. Specifies the services the program should provide. 48. Adds footnote requiring DHS to distribute $1.5 million to Benson Hospital and Northern Cochise Community Hospital to maintain emergency 143 department and trauma services. 49. Adds footnote specifying that the appropriation for Alzheimer's Disease Research shall be distributed to a nonprofit that has been 47 headquartered in the state for at least 10 years and has participating member institutions that conduct research and education.

Department of Housing 50. Adds footnote specifying that $3,500,000 of the appropriation for the Housing Trust Fund Deposit line item shall be expended on constructing 51 or renovating facilities and housing assistance, including support services, for persons determined to be seriously mentally ill and to be chronically resistant to treatment.

Judiciary 51. Modifies footnote regarding county probation officer spending to delete duplicative provision. 54 52. Adds footnote specifying that the sum of $1,146,400 is appropriated for salary adjustments for the Administrative Office of the Courts. It is 54 the intent of the Legislature that this amount shall not be annualized in future years.

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53. Modifies a footnote to require JLBC review of Administrative Office of the Court's report on county approved-salary adjustments. 54

Legislature- Auditor General 54. Adds footnote allowing the Auditor General to use balance of $31,200 from the FY 2014 appropriation for DCS-affiliated consultant contract 2 (Laws 2014, 2nd Special Session, Chapter 2, Section 9) for general operating expenses in FY 2020. 55. Adds footnote requiring the Auditor General to 1) Identify by January 1, 2020, in collaboration with the Arizona Commerce authority and 160 businesses, industry and higher education leaders, the industry certifications earned by Career Technical Education (CTED) students that are most associated with multi-year Career Technical Education programs that successfully prepare students for jobs in high demand technical fields. 2) Evaluate by December 1, 2020 the effectiveness of CTED districts in preparing students for jobs in high demand technical fields.

Arizona State Parks Board 56. Adds footnote requiring the Arizona State Parks Board to report semiannually the status of all capital projects and expenditures. (Capital) CO 27 57. Adds footnote extending the $1.3 million FY 2018 appropriation for capital improvements and $4.0 million FY 2018 appropriation for Rockin' CO 24 River project. (Capital) 58. Adds footnote specifying that the appropriation for the Arizona Trail is for employment of youth conservation corps to maintain the trail. 71 Requires the Arizona State Parks Board to submit an expenditure plan for review to the JLBC prior to expenditure.

Department of Public Safety 59. Adds footnote requiring the department to submit an expenditure plan for the Peace Officer Training Equipment to JLBC for review prior to 80 any expenditures in FY 2020. 60. Adds footnote requiring DPS to report to the JCCR on a cost comparison between the provision of housing versus a housing allowance for CO 15 state troopers stationed in remote areas. (Capital)

School Facilities Board 61. Modifies footnote stipulating the FY 2020 New School Facility appropriation shall be used for facilities and land costs for school districts that 86 received final approval from the board on or before September 1, 2019.

Secretary of State 62. Adds footnote extending the FY 2018 appropriation for the Helping America Vote Act through FY 2020. 111

Department of Transportation 63. Adds footnote specifying that of the $205,693,000 appropriated to the lump sum operating budget, $675,000 is appropriated on a one time 91 basis for special license plate implementation and production costs. 64. Of the $141,493,000 appropriated to the Highway Maintenance line item, $75,000 is appropriated on a one time basis for highway signage 91 installation and production. 65. Adds footnote requiring ADOT to report to JLBC Staff by December 31, 2019 on the status of all Aviation Grant awards and distributions. CO 26 (Capital) 66. Modifies footnote to require ADOT semiannual building renewal status update to also include all non-highway construction capital projects. CO 2 (Capital) 67. Adds footnote extending FY 2018 appropriation to equip and furnish a new Flagstaff office building through FY 2020. 154

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68. Adds footnote specifying that of the $10 million appropriated for deposit into the state aviation fund, at least $1 million in grants shall be distributed to Ernest A. Love Field Airport in Prescott. (Capital) 69. Adds footnote requiring each city and town to receive an equal amount of the $18.0 million of new General Fund monies for local roads. CO 24 (Capital)

State Treasurer 70. Upon completion of a request for proposal of the General Ledger Information Technology System, the State Treasurer shall report to the JLBC 92 on the total cost of development and ongoing annual operating costs of the system. 71. Adds footnote requiring the State Treasurer to report to the Joint Legislative Budget Committee Staff and the Office of Budgeting and 92 Strategic Planning on its current fiscal year and estimated next fiscal year expenditures of interest earnings spent pursuant to A.R.S. 35-315 and A.R.S. 35-318 for its banking service contract, external investment management agreement, administrative and information technology costs, and any other costs. The report is due on or before June 30, 2019 and June 30, 2020.

Universities 72. Adds footnote requiring the medical research foundation to submit an expenditure and performance report to Northern Arizona university. 96 The university shall submit the report to the Joint Legislative Budget Committee on or before February 1, 2020. The report shall include the type and amount of expenditures from all state sources of monies, grants received, and performance measures 73. Adds footnote specifying that $160,000 is appropriated to ABOR to distribute to universities that maintain and operate an intercollegiate 94 adaptive athletics program. Monies may be spent only: 1) When universities collect matching funds, 2) on scholarships, equipment, travel expenses and tournament fees for participants in the program. Monies cannot be spent on administrative costs. 74. Adds footnote specifying that monies in the Washington DC Internship line item shall by distributed by ABOR equally to the universities to 94 provide student internships in Washington D.C. in partnership with a third-party organization selected by ABOR. 75. Continues footnote requiring each university to report to the JLBC on or before August 1, 2019 on the intended use of one-time 155 appropriations. Prior to any expenditure of monies for capital improvements, each university shall submit the scope, purpose, and estimated cost of the capital improvements to the JCCR for review. 76. Adds footnote specifying that it is the intent of the Legislature that the $8,000,000 appropriated to the Phoenix Medical Campus line item be 97 used to expand the University of Arizona Phoenix Medical School and to provide tuition waivers to medical students. It is the intent of the legislature that this $8,000,000 not be annualized in future years.

Department of Veterans' Services 77. Adds footnote specifying that the suicide prevention appropriation includes funding for distribution to a nonprofit veterans' services 98 organization that provides services related to reducing suicides among Arizona's military and veteran population. The department may spend up to $75,700 of the appropriation to hire a program specialist to liaise between the department and the selected nonprofit. Requires department to submit an expenditure plan including the status of non-state matching grant monies to JLBC for review. 78. Adds footnote specifying that the trauma treatment services appropriation includes funding for grants to contractors who provide trauma 98 treatment service training to specified licensed health professionals.

45

Statewide (Statewide Adjustments) 79. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to CORP, EORP, and state 171 agency retirement. 80. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to state agencies relocating 171 to and within state-owned and lease-purchase buildings. 81. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to agency rent. The rate 171 increases from $16.08 to $17.87 per square foot for office space and from $5.79 to $6.43 per square foot for storage space. 82. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments for shared services for 171 agencies located in the 1740 W. Adams building and shared administrative services. 83. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for employer health insurance contribution 171 adjustments. The adjustments include 1) a one-time reduction to employer contribution rates. and 2) new a one-time increase employer contribution rates. Consistent with the FY 2019 statewide allocation, the JLBC shall use the overall allocation of General Fund and appropriated tuition for each university when determining that university's specific adjustment. 84. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for adjustments for risk management 171 premiums. 85. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for adjustments the Information Technology 171 pro-rata.

Statewide (Public Safety Compensation) 86. Adds footnote stating that it is the intent of the legislature that salary adjustments be allocated as outlined. 172 87. Requires agencies to adjust salary schedules and step plans as applicable to conform with actual salary adjustments implemented for each 172 agency and position. Except as otherwise noted, the specific pay raise percentages are not specified.

Department of Corrections Security/Correctional Officers 10.00% Education/Teachers 9.17% Correctional Records 5.00% Counseling/Treatment 13.16% Religion 5.00%

Department of Juvenile Corrections Security/Correctional Officers 14.90% Education/Teachers 8.45%

Department of Public Safety Sworn Positions 10.00% Civilian Positions 5.00% (Continued)

46

Arizona Department of Agriculture Livestock Officers Attorney General - Department of Law Investigators Department of Child Safety Caseworkers Case Aides Program Supervisors Program Specialists Entry-level Administration Corporation Commission Securities Division - Special Investigators Arizona Game and Fish Department Wildlife Law Enforcement Wildlife Managers Department of Health Services Behavioral Health Technicians Nurses Security Department of Insurance Insurance Fraud Investigators Department of Liquor Licenses and Control Investigators Arizona State Parks Board Park Ranger - Law Enforcement Officers Department of Transportation Enforcement and Compliance Officers

47 FY 2020 GENERAL APPROPRIATION ACT PROVISIONS (HB 2747/SB 1548)

The Baseline includes the following provisions in the General Appropriation Act. These provisions are in addition to the individual agency appropriations, but exclude supplemental appropriations, ex-appropriations, and fund transfers. New provisions in the Baseline are noted with an asterisk (*).

Arizona Commerce Authority 1. As session law, in accordance with statute (A.R.S. § 43-409), allocate $15,500,000 of General Fund withholding tax revenue to the Authority in FY 120 2020.

Counties and Cities & Towns 2. As session law, continue to appropriate $550,050 to all counties with populations under 900,000 people according to the 2010 Census. As 115 session law, continue to appropriate additional $500,000 to Graham County. 3. As session law, in accordance with A.R.S. § 9-601, appropriate $23,499,950 from the General Fund in FY 2020 for the Phoenix Convention 145 Center. 4. As session law, in accordance with A.R.S. § 42-5031, continue to provide sales tax revenues, estimated at $14,000,000 in FY 2020, to the Rio 146 Nuevo Multipurpose Facility District.

Department of Education 5. As session law, continue to defer $930,727,700 in Basic State Aid payments for FY 2020 until FY 2021. Appropriate $930,727,700 in FY 2021 for 156 these deferred Basic State Aid payments. Continue to exempt school districts with less than 600 students from the K-12 rollover. Allow ADE to make the rollover payment no later than July 12, 2020. 6. As session law, continue to require school districts to include in the FY 2020 revenue estimates that they use for computing their FY 2020 tax 156 rates the rollover monies that they will receive for FY 2020 in July 2020.

Debt Service 7. As session law, appropriate $77,709,300 from the General Fund to the Arizona Department of Administration in FY 2020 for a debt service 144 payment on the 2010 sale and leaseback of state buildings. The dollar amount consists of 2 separate appropriations of $53,699,500 and $24,009,800. The former amount reflects a reduction of $(6,399,200) from prior years due to a refinancing.

Revenues 8. As session law, continue to specify revenue and expenditure estimates for FY 2019, FY 2020, FY 2021, and FY 2022. 164 9. As session law, continue to require the Executive Branch to provide JLBC preliminary estimates of FY 2019 ending balances by September 15, 164 2019. Require JLBC Staff to report to JLBC by October 15, 2019 as to whether FY 2020 revenues and ending balance are expected to change by more than $50,000,000 from budgeted projections.

Statewide 10. As session law, continue to state legislative intent that all budget units receiving appropriations continue to report actual, estimated and 160 requested expenditures in a format similar to prior years.

48

11. As session law, continue to require ADOA to compile a report on Full-Time Equivalent (FTE) Position usage in FY 2020 in all agencies and provide 162 it to the JLBC Director by October 1, 2020. The Universities are exempt from the report but are required to report separately. 12. As session law, continue to require each agency to submit a report to the JLBC Director by October 1, 2019 on the number of filled appropriated 161 and non-appropriated FTE Positions by fund source as of September 1, 2019. 13. As session law, continue to require ADOA to report monthly to the JLBC Director on agency transfers of spending authority from one 163 expenditure class to another or between programs.

General 14. As session law, continue to define “*” as designating an appropriation exempt from lapsing. 165 15. As session law, continue to define “expenditure authority” as continuously appropriated monies included in individual line items of 166 appropriations. 16. As session law, continue to define "review by the Joint Legislative Budget Committee" as a review by a vote of a majority of a quorum of the 167 members.

49 INTERGOVERNMENTAL AGREEMENT Between WESTERN ARIZONA LAW ENFORCEMENT TRAINING ACADEMY (WALETA) WESTERN ARIZONA LAW ENFORCEMENT ASSOCIATION (WALEA) and MOHAVE COMMUNITY COLLEGE

This AGREEMENT, entered into this 1st day of July, 2019, by and between the WESTERN ARIZONA LAW ENFORCEMENT ASSOCIATION (hereinafter WALEA), a cooperative law enforcement entity comprised of law enforcement agencies located in Mohave, LaPaz, Maricopa, and Yuma Counties of Arizona, and MOHAVE COMMUNITY COLLEGE, a community college district of the State of Arizona (hereinafter the College); WITNESSETH: WHEREAS, the Arizona Peace Officer Standards and Training Board prescribes minimum courses of training and minimum standards for training facilities of law enforcement officers in the state [ARS §41-1822(A) (4)] and, WHEREAS, in accordance with said standards, WALEA has established WESTERN ARIZONA LAW ENFORCEMENT TRAINING ACADEMY (hereinafter WALETA), a peace officer academy approved by the Arizona Peace Officer Standards and Training Board in Lake Havasu City; and WHEREAS, the Mohave County College District Board is authorized to enter into contracts on behalf of the College [ARS §15-1444(8) (3)]; and WHEREAS, ARS §11-952 authorizes two or more public agencies (including the Town(s) and the College) to contract for services or jointly exercise any powers common to the contracting parties, if the agreement meets certain requirements set forth in § 11-952; NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein, the parties hereto agree as follows: Section 1. TERM. The term of this Agreement shall be from July 1, 2019 through June 30, 2022, unless sooner terminated as set forth in Section 5 herein.

1 Section 2. PURPOSE. The purpose of this Agreement is to formalize the award of the appropriate number of credits as determined by the specific Mohave Community College curriculum to any student graduating from the MCC course{s) instructed by WALETA. Section 3. PERFORMANCE. The performance commitments of the respective parties ae as follows: WALEANVALETA shall- (a) Ensure through their association that each academy will have adequate administrative staff and instructors. (b) Provide necessary supervision and evaluation of the designated administrative staff and instructors so as to ensure an adequate level of performance. (c) Submit a sum of the current pre-credit tuition rate times the number of credits being instructed and current technology and student activity fees to Mohave Community College for each academy student. This includes in-state, Western Undergraduate Exchange (WUE), and out-of-state rates. The charges are in accordance with MCC Governing Board established tuition and fees and may be changed without notice as directed by the Board. The College shall- {a) Provide a sum equal to the total amount as described/determined in Section 3(c) above to WALETA for instructor fees for each academy student. This includes in- state, Western Undergraduate Exchange (WUE), and out-of- state rates. The charges are in accordance with MCC Governing Board established tuition and fees and may be changed without notice as directed by the Board. (b) Provide a Program Coordinator as a liaison to the Academy Commander to ensure all necessary operations are carried out effectively and efficiently.

Section 4. INDEMNIFICATION. Each party (as 'indemnitor' agrees to indemnify, defend, and hold harmless the other party (as 'indemnitee') for, from and against any and all claims, losses, liability costs, or expenses 2 (including reasonable attorney's fees} (hereinafter collectively referred to as 'claims') arising out of bodily injury of any person (including death} or property damage, but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee, are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees, or volunteers. Section 5. NO PARTNERSHIP; NOT EMPLOYEES. Nothing herein is intended to create a partnership or joint venture between the parties, nor does it create an employment relationship between the personnel of the WALEAM/ALETA and the College. Solely for the purposes of workers compensation, ARS §23-1 022(0) and (E) shall apply and WALEA agencies shall be solely liable for the payment of workers' compensation benefits for the assigned police officers providing services under this Agreement. Section 6. NOTICES. All notices provided in connection with this Agreement shall be in writing and shall be deemed to have been sufficiently delivered or served when presented personally or upon the third (3 rd ) day after being deposited in the United States mail, postage prepaid, by registered or certified mail, addressed as follows:

College: Mohave Community College 1971 Jagerson Ave Kingman, AZ 86409 Attn: President

WALEA: Western Arizona Law Enforcement Association c/o Lake Havasu City Police Department 2360 McCulloch Blvd N. Lake Havasu City, AZ 86403 Attn: Lt. Shane M. Sloma

Section 7. FURTHER INSTRUMENTS. Each party hereto shall, promptly upon the request of the other, have acknowledged and delivered to the other any and all further instruments and assurance reasonably requested or appropriate to evidence or give effect to the provisions of this Agreement.

3 Section 8. AMENDMENT AND CONSTRUCTION. This Agreement sets forth the entire understanding of the parties as to the matters set forth herein as of the date of this Agreement and cannot be altered or otherwise amended except pursuant to an instrument in writing signed by each of the parties hereto. This Agreement is intended to reflect the mutual intend of the parties with respect to the subject matter hereof, and no rule of strict construction shall be applied against any party. Section 9. CONFLICT OF INTEREST. This Agreement may be canceled pursuant to ARS §38-511 in the event of a conflict of interest as described therein. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by and through their authorized representatives as indicated below.

Western Arizona Law Enforcement Association;

Date

Mohave Community College;

Diana Stithem, Date President (lnterim)-Mohave Community College ARTICULATION AGREEMENT MOHAVE COMMUNITY COLLEGE and AZ POST

Mohave Community College evaluated the Basic Peace Officer Curriculum of AZ POST and determined to award fifteen (15) semester hours of credit in the form of a certificate of completion, to students who have graduated from AZ POST certified police academies. The course competencies of the AZ POST academy are imbedded in the Administration of Justice and Police Certification curriculum at Mohave Community College. Credit will be awarded as specified through this agreement and upon fulfillment of the following criteria: Official letter of documentation or current Certificate of Training issued and provided directly by AZ POST to the Registrar's Office at Mohave Community College verifying completion of equivalent specific coursework for which credit is requested. While Mohave Community College will award credit in accordance with institutional policies and procedures, the credit is not necessarily transferable to other colleges and universities. Therefore, students are strongly advised to meet with a program advisor at the college or university they plan to attend. The Mohave Community College transcript will document only that credit which has been granted and the number of credits awarded.

5 MOHAVE COMMUNITY COLLEGE EQUIVALENT CREDIT

Course Course Title Credit Hours AJS 101 Intro to Administration of Justice 3 AJS 109 Substantive Criminal Law 3 AJS 230 The Police Function 3 AJS 270 Community Policing 3 AJS 275 Criminal lnvesigation 3 Total Credits Awarded 15

Diana Stithem, Date President (lnterim)-Mohave Community College

Matt Giordano Date Executive Director-AZ POST Effective Date: July 1, 2019 Expiration Date: June 30, 2022

6

Monthly Cash Flow

Invested in State Treasury

Deposits

Expenses

Fund Balance Page 1 Expenditures by Function ‐ General and Capital Fund 92% of fiscal year completed May 31, 2019

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000 Annual Budget

4,000,000 Year to Date Actual Year to Date Prior Year 2,000,000

‐

Year to Date Actual as % Year to Date % Change Expenses Annual Budget Actual of Budget Prior Year Current Year vs. Prior Instruction 12,702,194 9,595,732 76% 10,099,918 ‐5% Academic Support 3,389,524 3,024,148 89% 2,777,884 9% Student Services 3,519,625 2,728,722 78% 2,666,147 2% Institutional Support 6,033,566 4,024,628 67% 4,433,689 ‐9% Maintenance of Plant 5,735,854 4,494,581 78% 3,148,893 43% Student Financial Aid 1,159,000 1,105,689 95% 1,120,593 ‐1% Total 32,539,763 24,973,500 77% 24,247,124 3%

120%

100% 89% 95% 78% 78% 80% 76% 67% 60%

40% Actual as % of Budget % of fiscal year complete 20%

0% Page 2 Primary Revenue Sources 92% of fiscal year completed May 31, 2019

25,000,000

20,000,000

15,000,000 Annual Budget Year to Date Actual Year to Date Prior Year 10,000,000

5,000,000

0 Property Taxes Tuition & Fees State Appropriations

Year to Date Actual as % of Year to Date % Change Revenue Received Annual Budget Actual Budget Prior Year Current Year vs. Prior Property Taxes 23,364,864 23,770,737 102% 23,717,707 0% Tuition & Fees 8,706,402 8,917,727 102% 8,917,383 0% State Appropriations 1,935,839 1,599,600 83% 1,658,000 ‐4% Total 34,007,105 34,288,063 101% 34,293,090 0%

120%

102% 102% 100%

83% 80%

60% Actual as % of Budget % fiscal year complete 40%

20%

0% Property Taxes Tuition & Fees State Appropriations Page 3 Expenditures by Object ‐ General and Capital Fund 92% of fiscal year completed May 31, 2019

16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 Annual Budget 4,000,000 Year to Date Actual 2,000,000 Year to Date Prior Year ‐

Year to Date Actual as % of Year to Date % Change Expenses Annual Budget Actual Budget Prior Year Current Year vs. Prior Personnel Services 14,692,658 13,274,317 90% 13,047,735 2% Benefits 4,789,401 4,218,936 88% 4,074,675 4% Comm. and Utilities 1,193,412 817,108 68% 845,040 ‐3% Travel 478,710 108,429 23% 108,466 0% Contracted Services 2,722,220 2,183,987 80% 2,151,976 1% Supplies and Materials 1,989,685 1,421,378 71% 1,531,953 ‐7% Student Financial Aid 1,159,000 1,105,689 95% 1,120,593 ‐1% Fixed Charges 674,369 561,908 83% 604,740 ‐7% Capital 2,446,250 1,819,132 74% 659,751 176% Other/Contingency 2,395,058 148,818 6% 102,196 46% Total 32,540,763 25,659,702 79% 24,247,125 6%

120% 88% 100% 90% 95% 80% 83% 80% 71% 74% 68% 60%

40% Actual as % of Budget 23% 20% 6% % of fiscal year complete 0% Page 4 Capital Expenditures by Function 92% of fiscal year completed May 31, 2019

3,000,000

2,500,000

2,000,000

1,500,000 Annual Budget Year to Date Actual 1,000,000 Year to Date Prior Year Grant Funded Expenses 500,000

0

Year to Date Actual as % Year to Date % Change Expenses Grant Funded Annual Budget Actual of Budget Prior Year Current Year vs. Prior Expenses Instruction 0 0 0% 0 0% 0 Academic Support 36,250 30,357 84% 33,902 ‐10% 0 Student Services 0 0 0% 0 0% 0 Institutional Support 760,000 683,440 90% 16,831 0% 0 Maintenance of Plant 2,400,000 1,819,132 76% 609,018 199% 0 Total Expenses 3,196,250 2,532,929 79% 659,751 284% 0

100% 90% 90% 84% 76% 80% 70% 60% 50% 40% 30% Actual as % of Budget 20% % of fiscal year complete 10% 0% 0% 0% Human Resources Report Month Ending May 31, 2019

NEW HIRES Effective Name Date Position Campus Salary Shivam Bhakta 5/7/2019 Office Technician, Nursing NCK $13.91 Rebecca Smathers 5/13/2019 Academic Adviser NCK $38,500.00 Jody McInerney 05/21/219 Science Lab Technician LHC $15.12 Karen Harris 5/28/2019 Office Technician, Enrollment NMC $14.72

TRANSFERS Effective Name Date From Campus To Salary

RECLASSIFICATION Effective Name Date From Campus To Annualized Salary

TITLE CHANGE Effective Name Date From Campus To Annualized Salary

SEPARATIONS Effective Name Date Position Campus Date of Hire Reason Salary J. Peter Roth 5/10/2019 Faculty, English NCK 8/5/2015 Resignation $51,500.00 Brandi Swanner 5/10/2019 Faculty, Nursing NCK 1/11/2016 Resignation $52,384.00 Kayli Fadness 05/10/2019 Welding Lab Assistant NCK 9/5/2018 Resignation $14.50 Riley Jandrew 05/09/2019 Adminstrative Assistant, Library BHC 11/26/2018 Resignation $11.00 Maryl Vineyard 05/10/2019 Student Services Office Manager LHC 8/18/2008 Resignation $42,379.00 Beverly Valentine 05/06/2019 Corporate/Community Education Coordin NCK 3/4/2019 Resignation $41,875.00 Cindy Tonielli 05/10/2019 Faculty, Culinary Arts BHC 8/6/2014 Non-Renew $50,366.00 Jennifer Jack 05/10/2019 Faculty, Nursing BHC 7/25/2016 Non-Renew $51,610.00 Joseph Jessop 05/24/2019 Maintenance Tech NMC 4/2/2018 Resignation $13.13 David Himler 05/13/2019 Maintenance Tech LHC 4/9/2015 Termination $14.49 Jeannefer Milner 05/31/2019 Student Services Technician, 25hpw NCK 7/31/2018 Termination $13.50