Arizona

Arizona

Budget Cycle
Annual

Governor Submits Budget
January (5 days after legislature convenes)

Fiscal Year Begins
July 1
 
Governor Signs Budget 
No Official Deadline
 


Budget Links
FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023
Arizona Governor Doug Ducey released his fiscal 2023 budget proposal on January 14. The budget calls for $61.9 billion in total spending from all funds. This includes $14.2 billion in general fund spending, which represents an 8.6 percent increase over the fiscal 2022 recommended general fund level. The budget, which includes $13.2 billion in ongoing spending, is based on ongoing forecasted general fund revenues of $13.8 billion, reflecting a 6.2 percent decline from fiscal 2022 revenues. With a structural surplus of $552 million, the executive budget recommendation has a projected ending balance of $1.0 billion in the general fund. Accounting for the governor’s recommended transfer into the Budget Stabilization Fund, the state is projected to have a $1.4 billion rainy day fund balance at the end of fiscal 2023, roughly 10 percent of projected general fund revenues. 

Proposed Budget Highlights 

The governor’s budget for fiscal 2023 prioritizes targeted investments in education, public safety, border security, water, and infrastructure. The proposal also continues to bolster the state’s rainy day fund with a $425 million deposit, creates a State Earned Income Tax Credit (EITC) and provides a manufacturing tax incentive package. Key spending initiatives include:

K-12 Education

  • $276 million for School Facilities Board (SFB) building renewal grants (including fiscal 2022 supplemental) and an additional $90 million in SFB funds for new schools
  • $124 million for K-12 baseline enrollment growth and inflation
  • $100 million in federal funds to support summer camps and address learning loss during the pandemic
  • $61 million for additional funding to modernize results-based funding, which rewards top-performing schools in the state
  • $58 million for Operation Excellence, intended to close the achievement gap at underperforming schools


Higher Education

  • $46 million to continue New Economy initiatives to prepare higher education students for high-demand jobs
  • $13 million to expand the Arizona Promise Program
  • $11 million to permanently restore STEM and Workforce funding for community colleges


Water and Natural Resources

  • $1 billion over three years for water augmentation projects
  • $177 million in federal and state funds for state parks system projects to spur rural tourism
  • $36 million for the Arizona Healthy Forest Initiative Phase II


Infrastructure

  • $400 million investment in a major roadway project
  • $186 million for building renewal and capital projects statewide
  • $50 million for rural transportation grants to help communities and the state transportation agency compete for federal funds


Other

  • Employee Compensation: $217 million for an Enterprise Compensation Strategy, which provides ongoing base salary increases and changes to the state’s Health Insurance Trust Fund, including for public safety and corrections officers
  • Border Security: $50 million for Border Security Fund Deposit and $12 million to expand the Border Strike Force
  • Nursing Education: $26 million for a public-private partnership to expand nursing training
  • Cybersecurity: $25 million to create a new cybersecurity risk management program
  • Foster Care: $20 million for foster care and kinship support