Proposed Budget - Fiscal Year 2024
On January 13, Arizona Governor Katie Hobbs released her budget proposal for fiscal 2024. The budget calls for $65.4 billion in total agency operating expenditures from all appropriated and non-appropriated funds. General fund spending, including baseline changes and new initiatives as well as ongoing and one-time expenditures, is recommended at $17.1 billion, a 10.4 percent increase compared to the revised level recommended by the governor for fiscal 2023. The governor’s general fund budget includes a net baseline spending increase of $37 million and a net increase in executive initiatives of $1.3 billion. The budget, which includes $15.0 billion in ongoing spending, is based on ongoing forecasted general fund revenues of $15.1 billion, reflecting a 5.9 percent decline from fiscal 2023 estimated revenues. This ongoing revenue estimate incorporates new tax credits and exemptions proposed by the governor while excluding a one-time $345 million reduction for the 2.5 percent flat tax acceleration approved last year. With an annual structural balance of $65 million, the executive budget recommendation has a projected ending balance of $273 million in the general fund. The state is projected to have a $1.6 billion rainy day fund balance at the end of fiscal 2024, representing 10.7 percent of ongoing general fund spending.