Arizona State Agency Budgets For Fiscal year 2016

State of Arizona The Executive Budget

STATE AGENCY BUDGETS

FISCAL YEAR 2016

Douglas A. Ducey GOVERNOR

JANUARY 2015

Table of Contents

Introduction

Budget in a Flash ................................................................................. 1 Assumptions & Methodology ....................................................... 2

Agency Operating Budget Detail

Accountancy, State Board of .......................................................... 5 Acupuncture Board of Examiners ................................................. 8 Administration, Arizona Department of ................................. 11 Administrative Hearings, Office of ............................................ 21 African-American Affairs ............................................................... 24 Agriculture, Arizona Department of ......................................... 25 Arizona Health Care Cost Containment System.................. 29 Appraisal, State Board of .............................................................. 40 Arts, Arizona Commission on the .............................................. 43 Athletic Training, State Board of ................................................ 46 Attorney General - Department of Law .................................. 48 Automobile Theft Authority ......................................................... 52 Barbers Examiners, Board of ........................................................ 55 Behavioral Health Examiners, Board of ................................... 57 Charter Schools, State Board for................................................ 59 Child Safety, Department of ........................................................ 64 Chiropractic Examiners, State Board of ................................... 71 Citizens Clean Elections Commission ..................................... 73 Commerce Authority ...................................................................... 75 Community Colleges, Arizona..................................................... 78 Constable Ethics Standards and Training Board ................. 82 Contractors, Registrar of ............................................................... 84 Corporation Commission .............................................................. 87 Corrections, Department of ......................................................... 91 Cosmetology, Board of .................................................................. 99 Criminal Justice Commission, Arizona ................................... 102 Deaf and Blind, State Schools for the .................................... 105 Deaf and Hard of Hearing, Commission for the ............... 110 Dental Examiners, State Board of ............................................ 114 Early Childhood Development and Health Board ............ 116 Economic Security, Department of ......................................... 118 Education, Department of .......................................................... 128 Emergency and Military Affairs, Department of ................ 137 Environmental Quality, Department of ................................ 141 Equal Opportunity, Governors Office for ............................ 146 Equalization, State Board of ..................................................... 148 Executive Clemency, Board of ................................................... 150 Exposition and State Fair, Arizona........................................... 152

Financial Institutions, State Department of ........................... 154 Fingerprinting, Board of................................................................. 160 Fire, Building and Life Safety, Department of ....................... 162 Forester, Arizona State ................................................................... 165 Funeral Directors and Embalmers, State Board of .............. 168 Game and Fish Department ......................................................... 170 Gaming, Department of ................................................................. 175 Geological Survey, Arizona ........................................................... 179 Governors Office .............................................................................. 182 Governors Office of Strategic Planning and Budgeting .. 185 Health Services, Department of .................................................. 187 Highway Safety, Governors Office of ...................................... 194 Historical Society, Arizona ............................................................ 196 Historical Society, Prescott ........................................................... 199 Homeland Security ........................................................................... 202 Homeopathic Medical Examiners, Board of .......................... 205 Housing, Arizona Department of ............................................... 207 Independent Redistricting Commission .................................. 211 Indian Affairs, Arizona Commission of .................................... 213 Industrial Commission of Arizona ............................................. 216 Insurance, Department of ............................................................. 219 Judiciary ................................................................................................ 223 Juvenile Corrections, Department of ........................................ 228 Land Department, State ................................................................. 232 Legislature

Auditor General ............................................................................ 237 House of Representatives ......................................................... 240 Joint Legislative Budget Committee .................................... 242 Legislative Council ....................................................................... 244 Senate ............................................................................................... 246

Liquor Licenses and Control, Department of ........................ 248 Lottery Commission, Arizona State ........................................... 252 Massage Therapy .............................................................................. 255 Medical Board, Arizona .................................................................. 258 Mine Inspector, State ...................................................................... 261 Naturopathic Physicians Board of Medical Examiners ...... 264 Navigable Stream Adjudication Commission ....................... 266 Nursing, State Board of .................................................................. 269 Nursing Care Institution Administration Examiners ........... 272 Occupational Therapy Examiners, Board of .......................... 274 Opticians, State Board of Dispensing ....................................... 277 Optometry, State Board of ........................................................... 279 OSHA Review Board ........................................................................ 282

Osteopathic Examiners, Board of .............................................. 284 Parks Board, State ............................................................................ 286 Personnel Board ................................................................................ 290 Pest Management, Office of ........................................................ 293 Pharmacy, Arizona State Board of ............................................ 296 Physical Therapy Examiners, Board of ..................................... 299 Pioneers Home, Arizona ............................................................... 302 Podiatry Examiners, State Board of ......................................... 305 Postsecondary Education, Commission for ........................... 307 Power Authority ................................................................................ 311 Private Postsecondary Education, State Board for ............. 313 Psychologist Examiners, State Board of .................................. 316 Public Safety, Department of ...................................................... 319 Public Safety Personnel Retirement System ......................... 325 Racing, Arizona Department of .................................................. 326 Radiation Regulatory Agency ..................................................... 330 Real Estate, Department of .......................................................... 336 Residential Utility Consumer Office .......................................... 339 Respiratory Care Examiners, Board of ..................................... 342 Retirement System, Arizona State ........................................... 344 Revenue, Department of ............................................................... 348 School Facilities Board ................................................................... 354 Secretary of State - Department of State............................... 359 State Boards Office .......................................................................... 363 Tax Appeals, State Board of ......................................................... 365 Technical Registration, State Board of ................................... 367 Tourism, Office of ............................................................................. 370 Transportation, Department of .................................................. 373 Treasurer, State ................................................................................. 378 Uniform State Laws ......................................................................... 380

Universities Regents, Board of ........................................................................ 382 Arizona State University Tempe ......................................... 385 Arizona State University Polytechnic................................ 389 Arizona State University West ............................................. 392 Northern Arizona University .................................................... 395 University of Arizona Main Campus ................................. 399 University of Arizona Health Sciences Center .............. 403

Veterans Services, Department of ............................................ 406 Veterinary Medical Examining, State Board of .................... 411 Water Infrastructure Finance Authority ................................... 414 Water Resources, Department of ............................................... 417 Weights and Measures, Department of ................................. 422

Additional Changes

Standard Adjustments .................................................................... 426 Proposed Legislative Changes .................................................... 440 Proposed Fund Transfers............................................................... 445

Reference

General Fund Revenue by Agency ............................................ 446 Other Fund Revenue by Agency ................................................ 450 Summary of FY 2014 Expenditures by Object ...................... 454 Summary of FY 2015 Appropriations by Object .................. 469 Summary of FY 2015 Executive Recommendation ............. 484 Summary of FY 2016 Agency Requests by Object ............. 499 Summary of FY 2016 Executive Recommendation ............. 514 Glossary - Budget Terms ............................................................... 532 Glossary - Acronyms ....................................................................... 537 State Government Organization Chart .................................... 540 Resources ............................................................................................. 541 Acknowledgement ........................................................................... 542

Provisions for Individuals with Disabilities

Individuals who have a disability and require reasonable accommodation in order to use this document are encouraged to contact the Governors Office of Strategic Planning and Budgeting at 602-542-5381.

TOTAL EXPENDITURESTransfer from Rainy Day Fund

Department of EducationAHCCCSDepartment of CorrectionsUniversitiesDepartment of Economic SecurityDepartment of Health ServicesSchool Facilities BoardJudiciary Community CollegesDepartment of Public SafetyDepartment of RevenueDepartment of AdministrationAll Other Operating BudgetsTOTAL OPERATING BUDGETS

($4.0) $0.03($1.1) ($9.4)($6.1) ($20.6)

($4.0) - Child Care Subsidy Savings($8.8) - Community Colleges Reduction in State Aid($10.7) - Reduce DCS Backlog Funding($12.0) - Juvenile Corrections Fee($20.2) - One Percent Cap($30.0) - Create New DPS Revenue Stream

$1.1 - Reinstate ALTCS Adult Preventive Dental Benefit ($33.2) - AHCCCS and DHS Provider Rate Adjustment($2.0) - Foster Care Recruitment ($75.0) - Funding Reduction for the Universities($3.2) - Fraud Detection ($113.5) - District Non-Classroom Spending Reduction

$125,736,100

Budget in a Flash

(10,122,800)0

34,690,800(4,249,100)14,079,000

(77,521,200)1,049,331,6001,201,302,4003,784,488,900

8,990,668,200646,430,900

(118,533,600)(10,525,000)

(25,000)(10,491,000)

11,168,00037,648,400

9,109,201,800656,955,900

11,193,00048,139,40089,324,90071,906,400

FY 2016

996,845,6001,268,340,600 (67,038,200)

(23,903,800)

(15,913,300)

52,486,000

FY 20153,808,392,700

73,411,60061,783,600

110,495,600214,633,200

488,190,300768,421,900

179,942,400611,053,100

110,495,600

690,900,700

FY 2015 Supplemental Recommendations (millions)

606,804,000502,269,300

$76,590,000$9,548,852,240

$303,461,990

$9,094,019,900

$136,769,760$999,960

Arizona General Fund Ongoing Revenue and Expenditures (FY 2002-FY 2018) (millions)

Agency Operating Budgets

$9,445,553,591$9,210,697,700

$85,978,561$9,296,676,261

$148,877,330

$9,281,725,000

$8,990,668,200$103,351,700

$9,109,201,800

$136,769,760$999,960$579,150,300

$9,156,988,860 $9,852,314,230$9,230,789,660

$148,877,330

FY 2015 Change

General Fund Sources and Uses FY 2015-FY 2018

Ending Balance

Other ExpendituresAgency Operating Budgets

FY 2015 FY 2016 FY 2017 FY 2018

$172,523,200

TOTAL SOURCESRevenue EstimateBeginning Balance

$9,703,436,900$9,308,783,831$9,229,789,700$8,577,838,560

$9,472,262,240

DES-Child Care Subsidy Savings Land-CAP Water Rights FeesDES-Elimination of New Programs SFB-New Construction Lease-to-Own Debt Service

Total FY 2015 Supplemental AppropriationsAHCCCS-Provider Rate Reduction

$8.1 - Inmate Healthcare Lawsuit Settlement Scope Change

$4.0 - Preventive Services

$1.2 - Adult Protective Services$3.6 - Homeowner's Rebate Cap

Major Highlights of FY 2016 (millions)

$10.0 - Capital Projects

$5.3 - Authorization for up to 3,000 New Prison Beds

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Est. FY 2016 Est. FY 2017 Est. FY 2018 Est.

Spending w/ ARRA and rollover Rev w/Solutions

State Agency Budgets 1

Assumptions and Methodology

Preparing the State budget is a 12-month process that determines the size and scope of government.

Arizona Revised Statutes 35-101 establishes a bifurcated budget process by defining 16 agencies as annual budget units and the remaining agencies as biennial budget units. The following agencies are identified as annual budget units:

Department of Education

Board of Regents

Arizona State University

University of Arizona

Northern Arizona University

School Facilities Board

Department of Economic Security

Department of Corrections

Department of Juvenile Corrections

Arizona Health Care Cost Containment System

Department of Health Services

Department of Administration

Department of Transportation

The Judiciary (Supreme Court, Court of Appeals, Superior Courts)

However, Laws 2013, 1st Special Session, Chapter 6, provided that for FY 2014 all agencies would receive only annual, not biennial, appropriations. Therefore, the Executive Budget Recommendation provides funding recommendations for FY 2016 for all agencies.

A.R.S. 35-125 requires the General Appropriations Act to include the revenue and expenditure estimates for the three subsequent years. The Executive Budget Recommendation provides those estimates for Fiscal Years 2017 and 2018.

Budget Process

The budget process begins on or before June 1, when the Governors Office of Strategic Planning & Budgeting (OSPB) provides the instructions and software required for agencies to submit their budget information. By statute, agency information must be submitted to OSPB by September 1. Copies of the agencies budget submissions are also provided to the Joint Legislative Budget Committee (JLBC) Staff.

Annually, from September 1 to no later than five days after the opening of the Legislative session, the Governors Office reviews budget submissions and prepares the Executive Budget Recommendation. The recommendation contains operating and capital outlay expenditure plans and estimated revenues for all

State funding sources. It also contains any Legislative changes necessary for implementation.

Review of agency requests by the Legislative staff occurs during the fall. Deliberation by the Legislature of the Executive Budget Recommendation and other budget options typically begins shortly after the regular session convenes. Public hearings for some State agency appropriations are held by the Senate and House Appropriation committees. The committees may recommend adoption of the Executive Budget Recommendation or elect to recommend a budget containing other elements. Committee recommendations can become part of floor discussions in both chambers. Legislative leadership must assemble an appropriation package acceptable to a majority of members in each chamber.

Before July 1, the Legislature enacts appropriations through the passage of General Appropriations and Capital Outlay Acts and any Legislative changes necessary for the implementation of the adopted budget. Once adopted by the House of Representa-tives and the Senate, the bills are then presented to the Governor for consideration.

Upon presentation, the Governor has five days to sign the bills into law, veto them in their entirety, line-item veto individual items of appropriation, or allow the bills to become law without a signature. The Legislature may, with a two-thirds majority vote of each house, override a veto or line-item veto.

The operating budget is prepared and enacted using a cash basis of accounting, which recognizes expenditures when paid and revenues when received by the Treasurer.

Budgetary control is maintained by appropriation, including expenditure limits for each item of appropriation and by funding source. The allocation of an appropriation over the course of the year is also controlled.

Unless specifically enacted, operating appropriations lapse at the end of the fiscal year, and the cash reverts to its fund source. Capital outlay appropriations continue until the project is completed or abandoned.

Budget Request Guidelines

State agencies were not restricted in how much funding or what kinds of projects could be requested. However, funding requests for information technology projects in excess of $25,000 must have prior approval via a Project Investment Justification issued by the Strategic Enterprise Technology Office at the Department of Administration.

2 State Agency Budgets

Budget Boundaries

The starting point in building the budget the base appropria-tion and expenditure levels is the amount appropriated to an agency for FY 2015. For non-appropriated funds, the starting point is the planned expenditure amounts for FY 2015. The incremental changes recommended in the Executive Budget Recommendation for FY 2016 are the changes from the FY 2015 appropriations and expenditure levels.

Recommended Changes

The Executive is recommending three basic types of changes to agency appropriations.

First, standard adjustments are technical changes to fundamen-tal operating costs, such as annual changes for rent in State-operated buildings; retirement contributions, health, dental, and life insurance premiums; or risk management (liability insurance) premiums; and human resource pro rata charges. Standard adjustments are displayed and calculated separately from the rest of each agencys budget recommenda-tion. The itemization of each standard adjustment for each agency and fund is located in the standard adjustment section of the State Agency Budgets book. For FY 2016, risk manage-ment premiums have decreased by an average of 0.27%, and there are no changes to health, dental and life insurance premiums.

Second, baseline changes are comprised of caseload changes, changes due to legal mandate from a court, or actions needed for continued efficient operations. Caseload increases or decreases generally require funding changes, assuming the agencys mandates for services are unchanged.

Finally, Governors Initiatives include all recommendations beyond standard or baseline adjustments and are designed to improve or change what the State does or how an activity is funded.

Standard Adjustments

The FY 2016 Executive Budget Recommendation contains a series of technical adjustments.

Retirement rates increase for all retirement systems, by an average of 0.13% for the State Retirement System (ASRS), 2.13% for the Public Safety Personnel Retirement System (PSPRS), and 0.58% for the Correctional Officer Retirement System (CORP). The specific change for each retirement system, by agency is calculated independent-ly.

Rent changes for State-owned, COP and PLTO buildings are calculated by the amount of space occupied. For COP and PLTO buildings, the rent is adjusted to align with the scheduled payments to the COP holders.

Human resources pro rata charges fund the Department of Administration personnel system.

The amounts of the standard adjustments, by agency, by fund, are listed in section immediately following the Department of Weights and Measures in the State Agency Budgets book.

Calculation of Employee-Related Expenditures

When recommending changes to the number of positions or personal services, the Executive Budget Recommendation uses the following methodology.

ERE. Two separate rates are used in calculating Employ-ee-Related Expenditures (ERE) funding requirements for changes to the number of employees or personal services:

A health, dental, and life insurance premium rate calcu-lates, by agency, the costs per full-time-equivalent employee based on specific rates of participation in the States insurance programs. There are no changes from the estimated FY 2015 rates to the estimated FY 2016 rates.

Any changes to personal services are multiplied by the rates for FICA, workers compensation, unemployment insurance, a DOA pro rata charge for personnel costs, an information technology pro rata charge, long-term disa-bility insurance, retirement sick leave pro rata, and retirement contributions.

The following rates are used for the development of each of the ERE components:

FICA. The rate is comprised of a 6.2% Social Security tax on the first $113,700 of an employees personal services and a 1.45% Medicare tax on the full amount of an employees personal services.

Workers Compensation. Every two years, the Department of Administrations Risk Management Division develops workers compensation rates based on agency loss histories, program budget needs, and data provided by the National Council on Compensation Insurance (NCCI). There are no changes in the estimated rates from FY 2015 to FY 2016.

Unemployment Insurance. The rate of 0.15% is continued for FY 2016.

DOA Personnel Division Pro Rata. The rate of 0.98% of personal services is assessed on the payroll of the majority of State agencies to fund the operations of the Personnel Division.

Information Technology Pro Rata. The rate of 0.2% of personal services is assessed on all agencies (except the universities and community colleges) to fund the operations of the Strategic Enterprise Technology Office at the Department of Administra-tion.

Disability Insurance. Most State employees are covered by long-term disability insurance through the State Retirement System. A rate of 0.24% is charged against personal services paid to employees not in the State Retirement System and is used for disability coverage for those employees.

Retirement. The following rates were used for FY 2016:

ASU Police (PSPRS) ....................................................................... 30.66%

Attorney General Investigators (PSPRS) ................................ 70.46%

Correctional Officers (CORP) ..................................................... 15.01%

DEMA Fire Fighters (PSPRS) ....................................................... 25.14%

Elected Officials Retirement Plan (EORP) .............................. 23.50%

State Agency Budgets 3

Game and Fish (PSPRS) ............................................................... 72.33%

Juvenile Corrections (CORP) ...................................................... 17.89%

Liquor Commission Investigators (PSPRS) ............................ 56.59%

NAU Police (PSPRS) ...................................................................... 41.00%

Parks (PSPRS) .................................................................................. 34.10%

Public Safety (PSPRS) ................................................................... 62.20%

State Retirement System (ASRS) .............................................. 11.35%

UA Police (PSPRS) ......................................................................... 29.28%

University Optional Retirement ...................................................7.00%

Funding for retirement rates changes is included in the standard adjustments recommendations.

Retirement Accumulated Sick Leave Fund. Funding from a 0.4% pro rata assessment against personal services is used to compensate retiring employees for a portion of unused sick leave.

Budgeting by Government Function

Budget information is also available in a different type of detail than is shown in the published Executive Budget Recommenda-tion or the Appropriations Acts. Information is provided in a format that shows expenditures by agency programs and subprograms, which are based on each of the mandated functions for agencies, as enacted by the Legislature.

For example, in the General Appropriations Act the Game and Fish Department is funded largely by a lump-sum appropriation for the entire agency. In the Master List of State Government Programs, funding is identified for each specific program, such as Sportfishing or Wildlife Conservation.

Other Recommendations

Judiciary and Legislature. The Executive makes recommenda-tions only for standard adjustments and baseline changes for Legislative and Judicial agencies but not for Governors Initiatives.

Appropriation Format. The appropriation format recommenda-tions are located at the end of each agencys section.

Legislative Changes. Implementation of some Executive recommendations requires Legislative changes. Those required changes are addressed in the Executive Budget State Agency Budgets book.

Expenditures for FY 2014

By law, the Executive Budget Recommendation contains a reporting of the amounts expended from the immediately preceding fiscal years appropriations, by accounting object. The expenditures reported are provided by each agency, by accounting object, with subsequent reconciliation by OSPB to the State Annual Financial Report.

Budget Performance Measures

The Executive Budget Recommendation contains agency descriptions and budget performance measures.

In accordance with A.R.S. 35-115, the Executive Budget Recommendation includes selected performance measures for the budget unit for the previous fiscal year and for the budget recommendation years.

OSPB has selected a series of performance measures that will most accurately communicate what the agency is doing and how well the agency is doing it. The hope is that this will offer decision makers and citizens a better understanding of agencies and their operations with a continuity of data, as the perfor-mance measures published will remain largely consistent from year to year.

In addition to the performance measures displayed in the Executive Budget Recommendation, the full array of agency performance measures is published in the Master List of State Government Programs. This reference document also contains a comprehensive inventory of all State programs and subpro-grams, including descriptions, expenditure data and performance measures for every function of State government.

Administrative Costs

To comply with A.R.S. 35-115, each agency reports administra-tive costs as a percent of its total funds budget. The definition of what constitutes an administrative cost is unique to each agency. The calculations provided are strictly for compliance with A.R.S. 35-115 and are not meaningful for any other purpose.

4 State Agency Budgets

BoardofAccountancyTheArizonaStateBoardofAccountancyconsistsoffiveCertifiedPublicAccountants(CPAs)andtwopublicmembers,allofwhomareresidentsofthestateandareappointedbytheGovernor.TheBoardalsohassixadvisorycommitteesconsistingof46membersappointedbytheBoardwhoseworkdirectlysupportstheBoard'smission.TheadvisorycommitteesareAccountingandAuditing,TaxPractice,PeerReview,Certification,ContinuingProfessionalEducation,andLawReview.TheBoardanditscommitteesqualifycandidatesfortheUniformCPAExamination,certifyindividualstopracticeasCPAs,registeraccountingfirmsownedbyCPAs,andbienniallyrenewcertificatesforCPAsandregisteredaccountingfirms.TheBoardanditscommitteesalsoreceiveandinvestigatecomplaints,takeenforcementactionagainstlicenseesforviolationofstatutesandregulations,monitorcompliancewithcontinuingeducationrequirements,andreviewtheworkproductofCPAstoensureadherencetoprofessionalstandardsthroughtheBoard'speerreviewprogram.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://www.azaccountancy.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary

Actual Exp.Plan Exec.Rec.FY2014 FY2015 FY2016

NetChangeFY2016

OtherAppropriatedFunds 1,522.8 1,936.8 1,936.80.01,522.8 1,936.8 1,936.8AgencyTotal 0.0

Recommendedstandardadjustmentsforallagenciesrent,retirementcontributions,andpaymentsforriskmanagementarelistedseparatelyaftertheDepartmentofWeightsandMeasuressection.Thosedollaramountsarenotincorporatedinthetotalsshownhere,butareincludedaspartoftheExecutiveBudgetRecommendation.

PerformanceMeasures

ExpectedExpectedActualActualFY2013 FY2014 FY2015 FY2016

Percentofapplicantsreportingverygoodorexcellentservice 88 94 91 91Numberofcompliancefilesestablished 110 97 104 104NumberofexamcandidatesapprovedbyBoardtositfortheUniformCPAexam

445 451 448 448

Numberofcertificatesissued 374 432 403 403Numberoffirmsregistered 104 120 112 112

Linktothe AGENCY'SSTRATEGICPLAN

AgencyOperatingDetail BoardofAccountancy5

10,000

10,500

11,000

11,500

12,000

12,500

13,000

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

NumberofCertifiedPublicAccountants

AgencyExpenditures

0

500

1,000

1,500

2,000

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Al l Funds

(in$1,000s)

RecommendedStateAppropriations

Actual Approp. Exec.Rec.FY2014 FY2015 FY2016

NetChangeFY2016BYPROGRAM

Certification,Registration,andRegulation 1,522.8 1,936.8 1,936.80.01,522.8 1,936.8 1,936.8AgencyTotalAppropriatedFunds 0.0


NetChangeFY2016BYEXPENDITUREOBJECT

PersonalServices 626.8 738.8 754.515.7EREAmount 287.7 335.0 342.47.4Prof.AndOutsideServices 379.0 547.4 522.6(24.8)TravelInState 2.6 5.4 5.40.0TravelOutofState 8.9 10.6 10.60.0OtherOperatingExpenses 182.7 276.8 276.80.0Equipment 25.5 7.8 9.51.7TransfersOut 9.6 15.0 15.00.0

1,522.8 1,936.8 1,936.8AgencyTotalAppropriatedFunds 0.0

6BoardofAccountancy FY2016ExecutiveBudget


NetChangeFY2016BYAPPROPRIATEDFUND

AccountancyBoardFund 1,522.8 1,936.8 1,936.80.01,522.8 1,936.8 1,936.8AgencyTotalAppropriatedFunds 0.0

CLICKONFUNDNAMEFORTHEFUND'SSOURCESANDUSESREPORTLinktothe MONTHLYCASHFLOWREPORTSTheExecutiverecommendsalumpsumappropriationtotheagency.

AgencyOperatingDetail BoardofAccountancy7

AcupunctureBoardofExaminersTheBoardlicensesandregulatesacupuncturistsandcertifiesauricular(ear)acupuncturistsfordetoxificationorsubstanceabuseprograms.TheBoardalsooverseesthelicensingandcertificationofacupuncturetrainingandpreceptorshiptrainingprograms,continuingeducationprograms,andvisitingprofessors.TheBoardevaluatesprofessionalcompetency,investigatescomplaints,andenforcesthestandardsofpracticefortheacupunctureprofession.TheBoardregulatestheeducational,clinical,andcleanneedletechniqueprogramsapprovedtoteachthepracticeofacupunctureintheState.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://www.azacupunctureboard.us/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

OtherAppropriatedFunds 143.1 154.7 157.73.0143.1 154.7 157.7AgencyTotal 3.0

MainPointsofExecutiveRecommendationsFY2016

3.0Rulemaking

MajorExecutiveInitiativesandFundingRecommendationsRulemaking

Laws2014,Chapter107requirestheAcupunctureBoardofExaminerstoadoptnewrulesregardingfingerprintinganddisclosureofpreviousprofessionallicensesandtoremoveacategoryoflicensing.TheExecutiverecommends$3,000fortheonetimecostsoftherulewritingprocess.

FY2016Funding3.0AcupunctureBoardofExaminersFund3.0IssueTotal


8AcupunctureBoardofExaminers FY2016ExecutiveBudget

PerformanceMeasures


Numberofrenewalsissued 535 528 550 560Numberofinvestigationsconducted 5 27 10 10Totalnumberoflicensees 548 565 585 605Totalnumberofauricularacupuncturecertificateholders 39 31 35 40Numberofapplicationsreceived 68 75 85 90


0

100

200

300

400

500

600


NumberofRenewalsIssued

AgencyExpenditures

0

50

100

150

200


Al l Funds

(in$1,000s)




LicensingandRegulation 143.1 154.7 157.73.0143.1 154.7 157.7AgencyTotalAppropriatedFunds 3.0



AgencyOperatingDetail AcupunctureBoardofExaminers9



PersonalServices 86.5 88.6 88.60.0EREAmount 17.8 20.5 20.50.0Prof.AndOutsideServices 10.0 13.0 16.03.0TravelInState 1.1 1.5 1.50.0OtherOperatingExpenses 25.8 29.8 29.80.0Equipment 1.9 1.3 1.30.0

143.1 154.7 157.7AgencyTotalAppropriatedFunds 3.0



AcupunctureBoardofExaminersFund 143.1 154.7 157.73.0143.1 154.7 157.7AgencyTotalAppropriatedFunds 3.0

CLICKONFUNDNAMEFORTHEFUND'SSOURCESANDUSESREPORTLinktothe MONTHLYCASHFLOWREPORTSTheExecutiverecommendsalumpsumappropriationtotheagency.

10AcupunctureBoardofExaminers FY2016ExecutiveBudget

DepartmentofAdministrationTheDepartmentofAdministration(DOA)providesleadership,direction,andmanagementinformationandsupport;financialandprocurementsupportservices;facilityplanning,design,development,construction,operations,andmaintenance;employeeandretireehealthandbenefitsprograms;timely,customerdrivenhumanresourcesservices;businessenhancinginformationservicesfortheDepartment,stateagencies,andArizonacitizens;customerserviceforsmalllicensingagenciesingeneralaccountingandcentralizedofficesupport;distributionofsurplusstateandfederalpropertythroughasystemthatmaximizesthedollarreturnonpropertysold;clean,safe,andenvironmentallyfriendlyvehicles;anorderlyenvironmentwherevisitors,employees,andotherpersonsconductingbusinesswiththestatewillbesafeandsecure;andservicestoagencycustomersandthepublicforthestate'spropertyandliabilityexposuresandforstateemployeecustomerswhohaveworkrelatedinjuries.TheAgencyhasthreegoals:(1)Tomaintainthecontinuityofstategovernmentoperationstoensurethesafeandefficientdeliveryofgovernmentservices,(2)Toattractandretainahighperformanceteamofemployees,and(3)Toaggressivelypursueinnovativesolutionsandopportunities.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://www.azdoa.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

GeneralFund 166,098.9 127,467.2 118,830.6(8,636.6)OtherAppropriatedFunds 178,481.2 241,276.9 229,229.6(12,047.3)NonAppropriatedFunds 1,006,374.3 1,038,941.4 1,079,602.240,660.8

1,350,954.3 1,407,685.5 1,427,662.4AgencyTotal 19,976.9


(31,644.6)LargeAutomationProjects29,388.4AutomationProjectsRevenue

473.3ASETStatewideInfrastructureProjects7,567.8NewAccountingSystemOperatingCosts

MajorExecutiveInitiativesandFundingRecommendationsLargeAutomationProjectsInFY2014,astatewideinformationtechnology(IT)managementplanwasimplemented.TheplanconsolidatedITprojects,centralizingoversightandprojectmanagementbyArizonaStrategicEnterpriseTechnology(ASET).TheplanfurtherstipulatedthatfundingfortheseprojectscomethoughtheAutomationProjectsFund(APF).Lastyear,$61millionwasappropriatedfromtheFundforthefollowingnewandcontinuingprojects:StateAccountingSystem(AFIS)DepartmentofAdministration

AgencyOperatingDetail DepartmentofAdministration11

ElicensingsystemDepartmentofEnvironmentalQualityInmateManagementSystem(AIMS)replacementCorrectionsSchoolFinanceandStudentDatasystems(ELAS)EducationIncomeandTobaccoTaxProjectsDepartmentofRevenueCHILDSsystemDepartmentofChildSafety,formerlyatDESForFY2016,theExecutiverecommends$29millionforreplacementofAFIS,ELAS,AIMS,DepartmentofEconomicSecurity(DES)ITsecurity,andtheDepartmentofEnvironmentalQualityElicensingsystem.WorkontheDepartmentofChildSafety(DCS)CHILDSsysteminFY2016willbepaidforusingtheunexpendedportionoftheFY2015appropriation.TheExecutiverecommendschangestotheAutomationProjectsFundappropriationaslistedinthetablebelow.ItisrecommendedthattheseappropriationsnotlapseuntilJune30,2017.Thecurrentstatusofeachprojectisasfollows:AFISReplacement:ThenewaccountingsystemisscheduledtogoliveonJuly1,2015.AppropriationsfortheAFISreplacementprojectenactedin2012providedfundinginfiscalyears2013through2016.TheExecutiveRecommendationforFY2016alignswiththeseappropriations.DEQELicensing:DEQisdevelopingawebportalthatwillenableitscustomerstoperformpermitting,billing,payments,anddatasubmissiononline.ThisprojectisexpectedtobecompletedafterFY2016.DOCAIMSReplacement:AIMSprovidescriticalinformation,suchasinmateidentification,movement,location,count,sentencinganddisciplinaryactions.FY2016willbethethirdandfinalyearofthisprojecttoreplacethe30yearoldsystem.ADESchoolFinanceandStudentDataSystems:TheEducationLearningandAccountabilitySystem(ELAS)consistsofseveralprojects,someofwhichareexpectedtobeavailablebeginninginFY2016.DORIncomeTaxDataAnalysis:TheprojectupdatestheDepartmentofRevenueTaxAdministrationSystemandenhancesitsfunctionality.TheseprojectsareexpectedtobecompletedinFY2016.DORTobaccoTax:DORensuresthattheprovisionsofthetobaccomanufacturersMasterSettlementAgreementarebeingmet.Laws2014,Chapter160requiresDORtodeployanelectronictobaccotaxfilingsystemsothatdistributorsoftobaccoproductscanelectronicallyfilereportsandreturns.ThisprojectisexpectedtobecompletedafterFY2016.DCSCHILDSSystem:TheChildrensInformationLibraryandDataSource(CHILDS)isthemanagementinformationsystemusedtodocumentthestatus,demographics,locationandoutcomesforeverychildinthecareofDCS.Theplanningandimplementationareintheearlystages.ThisprojectisexpectedtobecompletedafterFY2016.DESITSecurity:ThepurposeofthisnewprojectistoallowDEStocomplywithStateandfederalstandardsforITsecurity.TheExecutiverecommendsfundinginFY2016.

FY2016Funding(31,644.6)AutomationProjectsFund(31,644.6)IssueTotal

12DepartmentofAdministration FY2016ExecutiveBudget

AutomationProjectsFundProjectList FY2015Appropriation FY2016RecommendationDOAAFISReplacement $26,533,000 $9,202,000ADEAELAS $12,000,000 $6,250,000DOCAIMS $8,000,000 $8,000,000DEQElicensing $6,800,000 $5,000,000DESITSecurity $0 $936,400DCSCHILDS $5,000,000 $0DORDataCaptureIncomeTax $1,700,000 $0DORTobaccoTaxSystem $1,000,000 $0

Total $61,033,000 $29,388,400

LargeAutomationProjects

AutomationProjectsFundRevenueTheExecutiverecommendsthat,inFY2016,moniesfromfundsatthefollowingagenciesbeappropriatedtotheAutomationProjectsFundtocarryoutITprojectsforthoseagencies:DepartmentofAdministration,DepartmentofEducation,DepartmentofCorrections,DepartmentofEnvironmentalQuality,andDepartmentofEconomicSecurity.AllfundtotalsrepresentthetotalamountsappropriatedfromtheindividualfundstotheAutomationProjectsFundinFY2016.

FY2016Funding16,388.4GeneralFund5,000.0DEQEmissionsInspectionFund1,000.0InmateStoreProceedsFund2,000.0PenitentiaryLandEarningsFund3,000.0StateCharitable,Penal&ReformatoryLandEarningsFund2,000.0DOCSpecialServicesFund

29,388.4IssueTotal


ASETStatewideInfrastructureProjectsInadditiontooverseeingtheautomationprojectsofStateagencies,ASETprovidesthecentralizedITinfrastructureusedbyallagencies,suchasinternalaccess,theStateDataCenter,migratingStateagencyapplicationstoacloudbasedplatform,trainingStateinformationtechnologyprofessionals,andsecurityfortheStatesITsystems.Inpastyears,theseprojectshavebeenfundedthroughtheAutomationProjectsFund.Thishasinvolved,first,transferringmoneyfromASETfundstotheAutomationProjectsFundand,second,appropriatingAutomationProjectsFundmoniestoASETfortheprojects.ToimproveASETsabilitytoquicklyandefficientlyrespondtoStateinformationtechnologyneeds,especiallysecurityissues,theExecutiverecommendsmakingdirectappropriationstoDOAforASETinfrastructureprojectsinsteadofloopingthemoneythroughtheAutomationProjectsFund.

FY2016Funding3,775.0StateWebPortalFund(9,001.7)AutomationProjectsFund5,700.0AutomationOperationsFund473.3IssueTotal

AutomationProjectsFundProjectListFY2014

AppropriationFY2015

AppropriationFY2016

Recommendation

StateDataCenterImprovementandMaintenance $2,675,000 $2,900,000EnhancingStatewideDataSecurity $3,075,000 $3,125,000ProjectsRelatedtoEGovernment $325,000 $325,000

EnhancingEnterpriseArchitecture $1,000,000 $500,000ProjectManagementofStatewideProjects $2,450,000 $2,151,700

WebPortalTransitionCosts $1,975,000 $0Total $11,500,000 $9,001,700 $9,475,000

ASETStatewideInfrastructureProjects

NewAccountingSystemOperatingCostsThenewaccountingsystemisscheduledtobeactivatedonJuly1,2015.TheExecutiverecommendsimplementinganassessmentontheusersofthesystembasedoneachagencysusage.TheExecutiverecommendsthecreationofthenonappropriatedAFISCostAllocationFundtoreceivetheagencyassessmentsandusemoneyinthefundtooperatethenewaccountingsystem.ThenewfundwillreplacetheAdminAFISIICollectionsFund,whichwascreatedtocollectagencyassessmentsforthepredecessorsystem.

FY2016Funding0.0GeneralFund0.0IssueTotal


SouthwestDefenseContractsLaws2014,Chapter18appropriates$25,000fromtheGeneralFundfordistributiontoanotforprofitorganizationthatadvocatesforthepreservationandenhancementofcriticaldefensemissionsandassetsinthesouthwesternUnitedStates.TheExecutiverecommendsthatthisbeaonetimeappropriation.

FY2016Funding(25.0)GeneralFund(25.0)IssueTotal

BaselineRecommendationsMainframeLeaseandSoftwareASETprovidesmainframeservicesfortheArizonaHealthCareCostContainmentSystem,DepartmentofTransportation,DepartmentofCorrections,DepartmentofRevenue,ArizonaStateUniversity,PimaCounty,HawaiiMedicaidandtheStateaccountingsystem.InFY2015,ASETleasedanewmainframetomeetincreaseddemandforservices.TheExecutiverecommendsanincreaseforannualleasecostsandsoftwaremaintenanceandutilizationfees.Fundingforthisincreasewillcomefromcustomersofthesystem.

FY2016Funding4,907.1AutomationOperationsFund4,907.1IssueTotal

TransferThreePositionstotheWebPortalFundASEThasthreestaffpositionsthatprovideprojectoversight.ThosepositionsarecurrentlyfundedbytheInformationTechnologyFund.Federalauditorshavedeniedfederalparticipationinfundingthepositionsbecausetheprojectoversightisnotstatewide;instead,oversightislimitedtospecificprojectsatindividualagenciesthatmayormaynotinvolvefederalmonies.TheExecutiverecommendsfundingthepositionsfromtheWebPortalFundtoavoidfuturefederalreimbursementcostsfordisallowedexpenditures.

FY2016Funding(292.8)InformationTechnologyFund292.8StateWebPortalFund0.0IssueTotal

DCSTransitionFundingTheExecutiveRecommendationeliminatestheonetimefundingassociatedwiththeestablishmentoftheDepartmentofChildSafetyandtherelocationofthedatacenteroperatedbytheDepartmentofEconomicSecurity.

FY2016Funding(25,000.0)GeneralFund(25,000.0)IssueTotal


AdjustInsuranceClaimsRelatedExpendituresEachyear,anindependentactuarypreparesastudyoftheStatesexposureandclaimshistoryforitsproperty,liabilityandworkerscompensationprograms.Asaresultofthestudy,theExecutiverecommendsadecreaseintheWorkersCompensationLosses,anincreaseintheRiskManagementLosses,andanincreaseintheRiskManagementAdministrativeExpensesappropriation,tocorrectlyadjustappropriationstoalignwithactuarialprojections.

FY2016Funding1,216.9RiskManagementFund1,216.9IssueTotal


SupplementalRecommendationsAutomationProjectsFundNonLapsingAuthorityLaws2014,Chapter18madeFY2015appropriationstotheDepartmenttofundautomationprojectsatvariousagencies.Thesemonieswereappropriatedforprojectsthatmaynotbecompletedwithinthecurrentfiscalyear.TheExecutiverecommendsthattheseappropriationsbemadenonlapsinguntilJune30,2016.

FY2015Funding0.0AutomationProjectsFund0.0IssueTotal

FederalReimbursementOneoftheDepartmentskeyfundingmechanismsconsistsofseveralenterprisefundsthatcollectmoniesforadministrativeandinfrastructureservicestoStateagenciesandotherentitiesthatbenefitfromthoseservices.Onekeypurchaserofthoseservicesisthefederalgovernment,whichenlistsstategovernmentsaspartnersthroughfederalfinancialparticipationinavarietyofprograms.Thefederalgovernmentholdsequitysharesinthefundingandmaintainsaclosewatchonexpendituresofthosefundsandmonitorsfordisalloweduses.FederalauditorshavenotifiedtheDepartmentthatcostactivitiesinseveralfundshavebeendisallowed,andtheStateislikelytoberequiredtoreimbursethedisallowedcostsinFY2015.TheExecutiverecommendsanonlapsingsupplementalappropriationforsettlementauthorityfromtheRiskManagementFundforfederalreimbursementsthatmaybedueinFY2015.

FY2015Funding35,398.6RiskManagementFund35,398.6IssueTotal


PerformanceMeasures


Customersatisfactionwithbenefitplans 6.83 6.6 7.0 7.0Customersatisfactionwithmainframeprocessing 5.54 6.23 7.0 7.0Customersatisfactionwithadministrationofpayrollprocess 6.77 7.73 6.0 6.0Customersatisfactionwithtenantimprovementprocess 5.93 6.0 6.6 6.6Customersatisfactionwithvoicetelecommunicationsservices 5.58 6.18 6.7 6.7Percentageofenterpriseapplicationdevelopmentworkcompletedwithinnegotiatedtimeframe

N/A N/A N/A N/A

Customersatisfactionwithinformationanddatasecurityservices 5.95 6.59 6.5 7.0Statewideincidentrateper100FullTimeEquivalent(FTE)positions(acceptedRiskManagementclaims)

3.9 4.0 4.0 4.0

PercentageofADOA'sserviceswithaminimumcustomersatisfactionratingof6.0

72.0 75.5 90.0 90.0

Customersatisfactionwithbuildingmaintenance 5.90 5.9 6.6 6.6Linktothe AGENCY'SSTRATEGICPLAN

0100200300400500600700800900


FilledEmployeePositions




Administration 3,378.5 3,433.5 3,433.50.0ArizonaStrategicEnterpriseTechnologyOffice

58,351.8 123,498.5 101,622.7(21,875.8)

BenefitsDivision 4,056.3 5,179.4 5,179.40.0FinancialServices 160,565.7 97,258.7 97,233.7(25.0)GeneralServicesDivision 29,321.8 32,293.8 32,293.80.0HumanResources 13,234.9 13,841.1 13,841.10.0RiskManagement 74,500.2 91,995.4 93,212.31,216.9StateProcurementOffice 1,170.8 1,243.7 1,243.70.0

344,580.1 368,744.1 348,060.2AgencyTotalAppropriatedFunds (20,683.9)




PersonalServices 28,629.7 32,429.4 32,429.40.0EREAmount 11,026.1 12,755.0 12,755.00.0Prof.AndOutsideServices 40,951.5 46,950.1 41,951.9(4,998.2)TravelInState 215.7 204.4 204.40.0TravelOutofState 14.7 31.1 31.10.0AidtoOthers 71,857.1 8,388.7 8,363.7(25.0)OtherOperatingExpenses 170,091.7 182,141.3 196,971.514,830.2Equipment 8,688.4 9,491.3 3,134.9(6,356.4)CapitalOutlay 366.6 200.0 200.00.0CostAllocation 1,352.7 2,363.5 2,363.50.0TransfersOut 11,385.9 73,789.3 49,654.8(24,134.5)




GeneralFund 166,098.9 127,467.2 118,830.6(8,636.6)AdminSurplusProperty/FederalFund 54.2 464.1 464.10.0AirQualityFund 732.4 927.1 927.10.0AutomationOperationsFund 17,456.4 19,120.7 29,727.810,607.1AutomationProjectsFund 34,331.3 70,034.7 29,388.4(40,646.3)CapitalOutlayStabilizationFund 16,372.1 18,080.4 18,080.40.0CorrectionsFund 413.9 574.1 574.10.0DEQEmissionsInspectionFund 0.0 0.0 5,000.05,000.0DOCSpecialServicesFund 0.0 0.0 2,000.02,000.0InformationTechnologyFund 2,770.2 3,238.1 2,945.3(292.8)InmateStoreProceedsFund 0.0 0.0 1,000.01,000.0MotorPoolRevolvingFund 8,890.1 10,156.1 10,156.10.0PenitentiaryLandEarningsFund 0.0 0.0 2,000.02,000.0PersonnelDivisionFund 12,502.5 12,914.0 12,914.00.0RiskManagementFund 74,500.2 127,394.0 93,212.3(34,181.7)SpecialEmployeeHealthFund 4,149.4 5,267.4 5,267.40.0StateCharitable,Penal&ReformatoryLandEarningsFund

0.0 0.0 3,000.03,000.0

StateSurplusPropertyFund 2,776.0 2,399.8 2,399.80.0StateWebPortalFund 1,725.8 4,250.0 8,317.84,067.8TelecommunicationsFund 1,806.7 1,855.0 1,855.00.0


CLICKONFUNDNAMEFORTHEFUND'SSOURCESANDUSESREPORTLinktothe MONTHLYCASHFLOWREPORTS


SpecialLineAppropriations


NetChangeFY2016

ADEStudentDatabase 7,000.0 12,000.0 6,250.0(5,750.0)AFISReplacement 15,999.2 26,533.0 9,202.0(17,331.0)AppropriationsforNamedClaimants 193.6 0.0 0.00.0CountyAttorneyImmigrationEnforcement 973.7 1,213.2 1,213.20.0CountyServices 7,150.5 7,150.5 7,150.50.0DEQElisencing 4,483.5 6,800.0 5,000.0(1,800.0)DESCHILDSDatabase 0.0 5,000.0 0.0(5,000.0)DOADataCenter 1,300.3 2,900.0 0.0(2,900.0)DOCInmateDatabase 0.0 8,000.0 8,000.00.0DORBRITS 1,071.3 0.0 0.00.0DOREncryption 253.5 0.0 0.00.0DORTobaccoTaxAccounting 0.0 1,000.0 0.0(1,000.0)EGovernmentProjects 0.0 325.0 0.0(325.0)EnhancingStatewideDataSecurity 1,140.1 3,125.0 0.0(3,125.0)EnterpriseArchitecture 677.8 500.0 0.0(500.0)EstablishCSFSandDESDataCenter 0.0 25,000.0 0.0(25,000.0)IncomeTaxData 0.0 1,700.0 0.0(1,700.0)ProjectManagement 1,176.5 2,151.7 0.0(2,151.7)PublicSafetyCommunications 261.4 0.0 0.00.0RiskManagementAdministrativeExpenses 4,885.2 8,747.2 9,694.2947.0RiskManagementLosses 36,214.3 44,362.2 45,262.2900.0SouthwestDefenseContracts 0.0 25.0 0.0(25.0)StateBuildingsDebtService 84,119.8 84,123.7 84,123.70.0StateSurplusPropertySalesProceeds 1,734.9 1,260.0 1,260.00.0StatewideInformationSecurityandPrivacyOffice

784.3 873.6 873.60.0

Utilities 7,554.8 8,275.6 8,275.60.0WebPortalTransitionCosts 1,229.1 0.0 0.00.0WorkersCompensationLosses 26,857.2 31,159.2 30,529.1(630.1)



NonAppropriatedFundsExpenditures


NetChangeFY2016

2010ALotteryRevenueBondDebtService 41,250.7 37,499.3 37,499.30.0AdminAFISIICollections 1,924.5 3,692.9 0.0(3,692.9)AdminSpecialServicesFund 765.1 855.7 855.70.0ADOASpecialEventsFund 4.7 15.0 15.00.0AFISCostAllocationFund 0.0 0.0 7,567.87,567.8AntiRacketeeringRevolvingFund 49.4 0.0 0.00.0AutomationProjectsFund 5,595.3 0.0 0.00.0CertificateofParticipation 120,099.2 110,186.8 112,153.41,966.6ConstructionInsuranceFund 1,418.5 3,447.4 3,362.4(85.0)CoopStPurchasing 2,438.8 4,061.0 4,061.00.0CreditCardIncentivesandRebateClearingFund

23.8 0.0 0.00.0

DOA911EmergencyTelecommunicationServiceRevolving

15,015.1 21,677.8 19,697.8(1,980.0)

ERE/BenefitsAdministration 35,595.5 36,477.0 36,565.688.6FederalEconomicRecoveryFund 1,489.5 2,499.8 0.0(2,499.8)FederalGrant 2,139.4 3,119.9 2,784.9(335.0)IGAandISAFund 9,936.1 6,764.0 6,764.00.0LotteryFund 68.2 88.1 0.0(88.1)PayrollAdministrationFund 146.6 143.0 143.00.0PLTO 9,741.8 9,949.7 10,202.0252.3RetireeAccumulatedSickLeave 12,243.3 12,353.1 12,353.10.0SpecialEmployeeHealth 745,729.7 785,319.9 824,786.239,466.3StateEmployeeRideShare 476.5 535.0 535.00.0StatewideDonations 14.8 60.0 60.00.0StimulusStatewideAdminFund 207.8 196.0 196.00.0

1,006,374.3 1,038,941.4 1,079,602.2AgencyTotalNonAppropriatedFunds 40,660.8

CLICKONFUNDNAMEFORTHEFUND'SSOURCESANDUSESREPORT

FederalFundsExpenditures

Actual Exp.Plan Exp.PlanFY2014 FY2015 FY2016

3,536.2 5,349.6 845.7AgencyTotal

Linktothe AGENCY'SSECTIONOFTHEFEDERALFUNDSREPORT

ThesearetheFederalExpendituresreportedbytheagenciesand,inmostcases,areincludedintheAppropriatedorNonAppropriatedFundsexpenditureslistedabove.

TheExecutiverecommendsalumpsumappropriationbyfundwithspeciallines.


OfficeofAdministrativeHearingsTheOfficeisthemainvenueforadministrativelawhearingsinArizona,inwhichAdministrativeLawJudgespresideovercontestedcases.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://azoah.com/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

GeneralFund 862.2 862.5 1,002.5140.0OtherAppropriatedFunds 12.3 12.3 12.30.0NonAppropriatedFunds 1,063.4 873.4 873.40.0

1,937.9 1,748.2 1,888.2AgencyTotal 140.0

MainPointsofExecutiveRecommendationsFY2016140.0GeneralFundShortfall

MajorExecutiveInitiativesandFundingRecommendationsGeneralFundShortfallTheOfficesoperationalcostsareallocatedaccordingtocaseload.ExpensesforcasesinvolvingGeneralFundagenciesarepaidfromtheOffice'sGeneralFundappropriation,whileagenciesfundedthroughothermeansarechargedthroughagreementswiththoseagencies.Currently,theappropriationfromtheGeneralFundisinsufficienttofundtheusageoftheOfficebyGeneralFundagencies,whichrequiresnonGeneralFundagenciestopaymorethantheirshare.TheExecutiverecommendsanFY2016GeneralFundincreasetoprovidetheOfficewithsufficientGeneralFundappropriationtopayfortheentireobligationincurredbyGeneralFundagencies.



AgencyOperatingDetail OfficeofAdministrativeHearings21

PerformanceMeasures


Percentofevaluationsratingtheadministrativelawjudgeexcellentorgoodinimpartiality

94.53 92.04 92.04 92.04

Averagedaysfromrequestforhearingtofirstdateofhearing 58.89 55.16 55.16 55.16Averagenumberofdaysfromtheconclusionofthehearingtotransmissionofthedecisiontotheagency

9.16 9.41 9.41 9.41

Numberofhearingsheld 2263 2,630 2,630 2,630Linktothe AGENCY'SSTRATEGICPLAN

01,0002,0003,0004,0005,0006,0007,0008,0009,000


TotalCases

AgencyExpenditures

0500

1,0001,5002,0002,5003,000


Al l Funds GF

(in$1,000s)




Hearings 874.5 874.8 1,014.8140.0

874.5 874.8 1,014.8AgencyTotalAppropriatedFunds 140.0

22OfficeofAdministrativeHearings FY2016ExecutiveBudget



PersonalServices 563.0 563.0 563.00.0EREAmount 216.1 216.2 216.20.0OtherOperatingExpenses 95.4 95.6 235.6140.0




GeneralFund 862.2 862.5 1,002.5140.0HealthcareGroupFund 12.3 12.3 12.30.0





NetChangeFY2016

IGAandISAFund 1,063.4 873.4 873.40.01,063.4 873.4 873.4AgencyTotalNonAppropriatedFunds 0.0


AgencyOperatingDetail OfficeofAdministrativeHearings23

AfricanAmericanAffairsTheCommissionofAfricanAmericanAffairsadvisesstateandfederalagenciesonpolicies,legislationandrulesthataffecttheAfricanAmericanCommunity.TheCommissiondevelops,reviewsandrecommendspoliciesthataffecttheareasofhealthandhumanservices,housing,education,employment,businessformationanddevelopment,publicaccommodationsandcontractingandprocedurestoensurethatprogramsaffectingAfricanAmericansareeffectivelyimplementedwithinputfrommembersoftheAfricanAmericancommunity.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITEAllnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

GeneralFund 0.0 125.0 125.00.00.0 125.0 125.0AgencyTotal 0.0





AfricanAmericanAffairsCommission 0.0 125.0 125.00.00.0 125.0 125.0AgencyTotalAppropriatedFunds 0.0



Prof.AndOutsideServices 0.0 125.0 125.00.00.0 125.0 125.0AgencyTotalAppropriatedFunds 0.0



GeneralFund 0.0 125.0 125.00.00.0 125.0 125.0AgencyTotalAppropriatedFunds 0.0


24AfricanAmericanAffairs FY2016ExecutiveBudget

DepartmentofAgricultureTheArizonaDepartmentofAgriculture,oftenincooperationwithFederalentities,regulatesfacetsoftheagricultureindustrytopromotethegeneralwelfareoftheagriculturalcommunity,informconsumers,andprotectpublichealthandsafety.TheDepartmentconductsfoodqualityandsafetyinspectionsofmeat,dairy,vegetable,citrus,fruit,andeggproducts;registers,licensesandsamplesfeed,fertilizer,seedandpesticidecompaniesorproducts;regulatesagriculturalpesticideuse;trainsandcertifiespesticideapplicators;protectsnativeplant;guardsagainsttherisksassociatedwiththeentry,establishmentandspreadofplantpests,diseasesandnoxiousweeds;licensesproducepackers,dealersandshippers;provideseducationonpesticidesafetyandairquality;providesforensic,productquality,foodsafetyandotheragriculturallaboratoryanalysis,identification,certificationandtrainingservices;andprovidesadministrativesupportforthecitrus,lettuceandgraincommoditycouncilsandtheAgriculturalEmploymentRelationsBoard.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://www.azda.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

GeneralFund 8,316.9 8,323.0 8,323.00.0NonAppropriatedFunds 15,357.2 16,346.2 16,341.4(4.8)

23,674.1 24,669.2 24,664.4AgencyTotal (4.8)


PerformanceMeasures


Percentofmeatandpoultryproducttestsincompliancewithbacteria,drugandchemicalresiduerequirements

100 99 100 100

Numberofpestinterceptionswithinthestateinterior 13,907 5,672 6,000 6,000Linktothe AGENCY'SSTRATEGICPLAN

0

20,000

40,000

60,000

80,000

100,000

120,000


Licenses,PermitsIssued

AgencyOperatingDetail DepartmentofAgriculture25

AgencyExpenditures

05,000

10,00015,00020,00025,00030,00035,000


Al l Funds GF

(in$1,000s)




AdministrativeServices 1,072.5 1,062.6 1,062.60.0AgriculturalConsultationandTraining 244.4 244.7 244.70.0AnimalDisease,OwnershipandWelfareProtection

2,076.0 2,084.6 2,084.60.0

FoodSafetyandQualityAssurance 1,313.3 1,327.3 1,327.30.0PestExclusionandManagement 2,528.1 2,529.1 2,529.10.0PesticideComplianceandWorkersafety 141.1 132.9 132.90.0StateAgriculturalLaboratory 941.5 941.8 941.80.0




PersonalServices 4,230.7 4,435.4 4,435.40.0EREAmount 1,912.2 2,054.4 2,054.40.0Prof.AndOutsideServices 227.7 117.0 117.00.0TravelInState 600.5 610.6 610.60.0TravelOutofState 20.0 15.6 15.60.0OtherOperatingExpenses 1,067.4 884.2 884.20.0Equipment 57.7 7.4 7.40.0TransfersOut 200.7 198.4 198.40.0




GeneralFund 8,316.9 8,323.0 8,323.00.0

26DepartmentofAgriculture FY2016ExecutiveBudget





NetChangeFY2016

AgriculturalConsultationandTrainingPariMutuel

128.5 128.5 128.50.0

AgricultureEmploymentRelationsBoard 23.3 23.3 23.30.0AnimalDamageControl 65.0 65.0 65.00.0RedImportedFireAnt 23.2 23.2 23.20.0

240.0 240.0 240.0AgencyTotalAppropriatedFunds 0.0

AgencyOperatingDetail DepartmentofAgriculture27



NetChangeFY2016

AgriculturalConsulting/TrainingProgramFund

1.3 1.7 1.70.0

AgricultureAdministrativeSupport 25.5 38.9 38.90.0AgricultureCommercialFeed 276.7 302.2 302.20.0AgricultureDangerousPlants 61.8 50.0 50.00.0AgricultureDesignated/Donations 550.8 577.7 577.70.0AgricultureSeedLaw 50.9 53.5 53.50.0AquacultureFund 0.0 6.2 6.20.0ArizonaFederal/StateInspectionFund 3,028.9 2,823.0 2,823.00.0AZCitrusResearchCouncil 23.3 64.5 59.7(4.8)AZIcebergLettuceResearchFund 88.2 100.0 100.00.0AZProtectedNativePlant 70.6 83.1 83.10.0BeefCouncilFund 292.1 292.0 292.00.0Citrus,Fruit,&VegetableRevolving 300.8 351.6 351.60.0CommodityPromotionFund 7.9 8.0 8.00.0CottonResearchandProtectionCouncilFund

2,239.5 3,038.0 3,038.00.0

EggInspectionFund 1,123.7 1,273.5 1,273.50.0EquineRegistrationFund 0.3 0.3 0.30.0FederalGrant 5,093.9 4,436.9 4,436.90.0FertilizerMaterialsFund 297.1 314.9 314.90.0GrainCouncil 118.4 132.1 132.10.0IGAandISABetweenStateAgencies 104.1 104.1 104.10.0IndirectCostRecoveryFund 25.4 102.2 102.20.0LeafyGreenMarketingCommittee 620.8 557.5 557.50.0LivestockandCropConservationFund 439.4 898.1 898.10.0LivestockCustodyFund 43.5 122.5 122.50.0NuclearEmergencyManagementFund 199.4 198.4 198.40.0PesticideFund 272.9 415.3 415.30.0

15,357.2 16,346.2 16,341.4AgencyTotalNonAppropriatedFunds (4.8)




6,480.5 4,436.9 2,899.5AgencyTotal



TheExecutiverecommendsalumpsumappropriationtotheagencywithspeciallines.

28DepartmentofAgriculture FY2016ExecutiveBudget

ArizonaHealthCareCostContainmentSystemArizonaHealthCareCostContainmentSystem(AHCCCS),theState'sMedicaidAgency,usesfederal,stateandcountyfundstoprovidehealthcarecoveragetotheState'sacuteandlongtermcareMedicaidpopulationandlowincomegroups.Since1982,whenitbecamethefirststatewideMedicaidmanagedcaresysteminthenation,AHCCCShasoperatedinaccordancewithafederalResearchandDemonstrationWaiverthatallowsforatotalmanagedcaremodelofservicedelivery.Unlikeprogramsinotherstates,thatrelysolelyonfeeforservicereimbursement,AHCCCSmakesprospectivecapitationpaymentstocontractedhealthplansresponsibleforthedeliveryofcare.Theresultisamanagedcaresystemthatmainstreamsrecipients,allowsthemtoselecttheirproviders,andencouragesqualitycosteffectivecareandpreventiveservices.TheAHCCCSAdministrationisresponsibleforplanning,developing,implementing,andadministeringthehealthcareprogramsforlowincomeArizonans.Specifically,theAHCCCSAdministrationprovidesdirectionandoversightofoperationsrelatedtoeligibility,enrollment,qualityofcare,contractedhealthplansandproviders,andprocurementofcontractedservices.AHCCCSoverseesthreemainprograms:AHCCCSAcuteCareThemajorityofAcuteCareProgramrecipientsarechildrenandpregnantwomenwhoqualifyforthefederalMedicaidProgram(TitleXIX).AlthoughmostareenrolledinAHCCCScontractedhealthplans,AmericanIndiansandAlaskaNativesintheAcuteCareProgrammaychoosetoreceiveservicesthrougheitherthecontractedhealthplansortheAmericanIndianHealthProgram.AHCCCSalsoadministersanemergencyservicesonlyprogramforindividualswho,exceptforimmigrationstatus,wouldqualifyforfullAHCCCSbenefits.

ALTCSTheArizonaLongTermCareSystem(ALTCS)providesacutecare,behavioralhealthservices,longtermcare,andcasemanagementtoindividualswhoareelderly,physicallydisabled,ordevelopmentallydisabledandmeetthecriteriaforinstitutionalization.WhereasALTCSmembersaccountforlessthan4.0%oftheAHCCCSpopulation,theyaccountforapproximately26.0%ofthecosts.TheALTCSprogramencouragesdeliveryofcareinalternativeresidentialsettings.AsintheAcuteCareProgram,elderlyphysicallydisabledanddevelopmentallydisabledmembersofallagesreceivecarethroughcontractedplanscalledprogramcontractors.

KidsCareTheChildrensHealthInsuranceProgram(CHIP),referredtoasKidsCare,offersaffordableinsurancecoverageforlowincomefamilies.Childrenunderage19mayqualifyfortheprogramiftheirfamilysincomeexceedsthelimitallowedforMedicaideligibility,butisbelow200%oftheFederalPovertyLevel(FPL).WiththeexceptionofAmericanIndians,whoareexemptinaccordancewithfederallaw,parentspayamonthlypremiumbasedonincome.TheKidsCareprogramresultsinafederalcontributionthatequatestoa$3.00federalmatchforevery$1.00spentbytheState.AswiththeMedicaidAcuteCareProgram,AmericanIndianandAlaskaNativechildrenmayelecttoreceivecarethroughanAHCCCScontractedhealthplanortheAmericanIndianHealthProgram.ThemajorityofchildrenenrolledinKidsCare,however,areenrolledinAHCCCShealthplansandreceivethesameservicesavailabletochildrenintheMedicaidAcuteCareProgram.EnrollmentintheKidsCareProgramwasfrozenasofJanuary1,2010.Majormedicalprogramsincludeacutecare,longtermcare,andbehavioralhealthservices.TheAHCCCSAdministrationdetermineseligibilityfortheArizonaLongTermCareSystem(ALTCS),Children'sHealthInsuranceProgram(KidsCare),QualifiedMedicareBeneficiaries,andotherSupplementalSecurityIncome(SSI)AgencyOperatingDetail ArizonaHealthCareCostContainmentSystem29

relatedMedicalAssistanceOnlyprograms.FederalfundingthroughTitleXIXandTitleXXIoftheSocialSecurityActisprovidedtoAHCCCSbytheCentersforMedicareandMedicaidServices(CMS),afederalagencywithintheU.S.DepartmentofHealthandHumanServices.Linktothe AGENCY'SSTRATEGICPLANLinktothe AGENCY'SWEBSITE http://www.azahcccs.gov/Allnumbersrepresentingdollarsareexpressedinthousands.

AgencyBudgetSummary


NetChangeFY2016

GeneralFund 1,170,548.2 1,274,403.2 1,201,302.4(73,100.8)OtherAppropriatedFunds 196,964.0 141,450.4 142,218.5768.1NonAppropriatedFunds 7,809,025.9 9,338,020.4 10,108,127.7770,107.3

9,176,538.0 10,753,874.0 11,451,648.6AgencyTotal 697,774.6


0.0BHSConsolidationintoAHCCCS(24,066.6)ProviderRateReduction(6,033.3)AmbulanceRateReduction(1,322.7)AHCCCSFraudInvestigators

MajorExecutiveInitiativesandFundingRecommendationsBHSConsolidationTheExecutiverecommendstransferringtheDHSDivisionofBehavioralHealthtoAHCCCS,effectiveJuly1,2016.TitleXIXGeneralMentalHealthandSubstanceAbuseServiceswouldbeeliminatedfromtheDHSbudgetandaddedtotheAHCCCSbudget.Additionally,afterOctober1,2015,allservicesfortheSeriouslyMentallyIll(SMI)willbeprovidedinanintegratedmodel,withbothacutecareandbehavioralhealthservicesforeachmemberprovidedbyoneRegionalBehavioralHealthAuthority(RBHA).TherewillbeanintegratedRBHAforMaricopaCounty,anotherforNorthernArizona,andathirdforSouthernArizona.Behavioralhealthservices(BHS)fundingfortheseSMImembersliesintheDHSbudget,whilethebudgetfortheiracutecareisappropriatedintheAHCCCSbudget.AspartoftheBHSconsolidation,theExecutiverecommendsthatmanagementandbudgetfortheintegratedRBHAsbetransferredtoAHCCCS.AsnoneofthesechangeswillbeeffectiveuntilFY2017,theExecutivedoesnotrecommendabudgetchangeforthisproposalinFY2016.


30ArizonaHealthCareCostContainmentSystem FY2016ExecutiveBudget

OfficeoftheInspectorGeneralFraudPreventionTheAHCCCSOfficeoftheInspectorGeneral(OIG)isresponsibleforconductingcriminalinvestigationsandinvestigativeauditsforallAHCCCSprogramsinvolvingStateand/orfederaltaxdollars.OIGisadesignatedcriminaljusticeagencyandworkscloselywithfederal,Stateandlocallawenforcementoncasesinwhichproviders,subcontractors,membersandemployeesmaybeinvolvedinfraudulentactivity.EachOIGFraudUnitstaffmembersavesalmost$2millionperyearinavoidedfraudulentactivity.Inadditiontothefinancialsavings,OIGensurescontinuedconfidenceintheintegrityoftheMedicaidprogram.Tocontinuetoadvancethisgoal,theExecutiverecommendsanadditional6.0FTEpositionsand$439,800intotalfundappropriation.AsAHCCCSreceivesa50%federalmatchfortheseadministrativefunctions,therecommendationincludes$219,900federalfundsand$219,900GeneralFund.Basedonhistoricalcostrecoveries,thesecostsareanticipatedtobeoffsetbyprogramcostrecoveriesforanetsavingsof($1.3million)totheGeneralFund.


ProviderRateReductionTheExecutiverecommendsthatAHCCCSimplementa3%providerratereductiononApril1,2015,forallprovidergroupsexceptdevelopmentaldisabilitiesproviders.ThiscuttoproviderratesisanticipatedtosavetheGeneralFund($24.1million)intheAHCCCSbudgetinFY2016.Itwillalsosavehospitals$12.9millioninproviderassessmentandcounties$5.5millioninrequiredcountymatch.InadditiontotheseAHCCCSsavings,theratecutswillprovide($9.1million)inFY2016savingsintheDepartmentofHealthServicesGeneralFundbudget,foratotalGeneralFundsavingsof($33.2million).Thesecutswillcosthealthcareprovidersatotalof$185.0millioninlostMedicaidpaymentrevenuesfrombothStateandfederalfunds.


RestoreAmbulanceRatesSeveraltimessincethebeginningoftherecessionthatbeganin2007,ithasbeennecessarytocuttheratespaidtoAHCCCSproviders.AmbulanceprovidersarereimbursedbyAHCCCSplansatapercentageofthereimbursementratesestablishedbyDHS.Thatpercentageisscheduledtoincreasefrom68.59%inFY2014to80%inFY2016.AsStaterevenueshavenotmetexpectations,somefurtherdownsizingofStategovernmentisnecessary.Aspartofthatdownsizing,theExecutiverecommendsreturningambulancereimbursementratesinFY2016tothe68.59%ofDHSratesthattheambulancesreceivedinFY2014.TheExecutiveestimatesthatthisactionwillsavetheGeneralFund($6million)inFY2016.


AgencyOperatingDetail ArizonaHealthCareCostContainmentSystem31

RaiseDSHHardCapTheDisproportionateShareHospital(DSH)programdrawsfederalfundstoreimbursehospitalsthatserveanunusuallylargenumberofMedicaidpatientsorhaveanunusuallyhighamountofuncompensatedcare.Statesthatown,orwhosepoliticalsubdivisionsown,hospitalscandepositthefederalDSHmatchintheirGeneralFund.TheamountoffederalfundsthathospitalscanobtainisdeterminedbyfederalgovernmentformulasbasedontheamountofuncompensatedcarethathospitalsprovidetoMedicaidpatientsandtheuninsured(referredtoasthe"OBRAlimit").EachstatereceivesafederalDSHallotmentdeterminedbythefederalappropriationsprocess.Arizonahastwogovernmenthospitals:(1)theArizonaStateHospital(ASH),whichisrunbytheDepartmentofHealthServices,and(2)theMaricopaMedicalCenter,whichismanagedbytheMaricopaIntegratedHealthSystem(MIHS)undertheMaricopaCountySpecialHeathCareDistrict.InFY2015theamountofMIHSDSHiscappedbysessionlawat$89.9million,whichisreferredtoasthe"HardCap."MIHSkeeps$4.2millionforitsoperatingexpensesandtherestofthefederalmatchforMIHSDSHisdepositedintheGeneralFund.Anyfederalallotmentabovethat$89.9millioncapismadeavailabletootherhospitalsthroughPool5,aportionoftheDSHprogramforhospitalsthatcangetalocalgovernmenttoprovidetheStatematch.TheExecutiverecommendsraisingtheHardCapinFY2016to$113,818,500.MIHSwilldrawanadditional$16.5millioninfederalDSHfundsfordepositintotheGeneralFund,whiletheywillcontinuetokeepthe$4.2milliontheycurrentlyreceive.FederalallotmentamountsoverthehardcapwillcontinuetobepaidtoPool5hospitals.


TobaccoSettlementEnforcementInFY2015,thebudgetrequiredAHCCCStotransfer$2,636,500fromthetraditionalmedicalserviceslineitemtothreerecipients:(1)$1.2milliontotheAttorneyGeneralforsettlementlitigation,(2)$436,500totheDepartmentofRevenue(DOR)forluxurytaxenforcementand(3)$1milliontotheAutomationProjectsFundtodevelopaluxurytaxprocessingandaccountingsystemwithinDOR.InFY2016,theExecutiverecommendsnochangetotheAHCCCSbudgetforthesetransfers.WhiletheExecutiverecommendsreplacingthe$436,500transfertoDORwithacorrespondingincreaseintheDORbudgetandendingthe$1milliononetimetransferfortheaccountingsystem,theAHCCCSappropriationwasneverincreasedfortheseitemsinFY2015.Similarly,theFY2016caseloadcalculationsdonotincludeanincreaseforthesecosts;therefore,theExecutiveholdsthatthereisnoreductiontobehadfromtheAHCCCSbudgetforendingthesetransfers.However,theExecutiveproposesthatAHCCCScontinuetotransfer$1.2millionfromthebaselinebudgetfortheTraditionalMedicaidprogramtotheAttorneyGeneralforTobaccoSettlementdefensecostsinFY2016.



BaselineRecommendationsAgencyCaseloadGrowthTheExecutiverecommendsa($41.7million)reductionintheAHCCCSGeneralFundappropriationforFY2016forcaseloadchanges.TheExecutiveattributesthisreductiontoanumberoffactors.*TheFederalMedicaidAssistancePercentage(FMAP)regularmatchrategrowsfrom68.46%infederalfiscalyear2015to68.92%infederalfiscalyear2016.*CaseloadsinthenonProposition204populations,whicharesupportedbytheGeneralFund,havegrownmoreslowlythanoriginallyforecastintheFY2015budget.*ThefederalgovernmenthasgivenArizonapermissiontoapplyahigherTitleXXIFMAPtotheexpansionofchildren(from100%to133%ofthefederalpovertylevel).TheTitleXXIFMAPisincreasedto100%forthreeyears,beginningOctober1,2015,bytheAffordableCareAct.ThoughtheTitleXXIprogramhasnotyetbeenapprovedforcontinuationbyCongress,theExecutiveassumesthatthefederalgovernmentwillcontinuetheprogram.

TheExecutiveestimatesthatcapitationrategrowthwillincreaseby3%incontractyear2016over2015.TheExecutiveisnotproposinganincreaseinproviderratesbut,basedonhistoricalaverages,forecaststhatmemberutilizationgrowthatcurrentproviderrateswillrequirethe3%increaseincapitationrates.AsTobaccoTaxrevenuesareusedtooffsetGeneralFundobligations,asmallforecastincreaseinTobaccoTaxrevenuesallowsforasmallportion($351,600)ofthedecreaseintherecommendationfortheGeneralFund.

FY2016Funding(41,678.2)GeneralFund

8.0TobaccoTaxandHealthCareFund110.8TobaccoProductsTaxFund(819.4)Children'sHealthInsuranceProgramFund59.2BudgetNeutralityComplianceFund

1,409.5PrescriptionDrugRebateFund(40,910.1)IssueTotal

SupplementalRecommendationsSupplementalExpenditureAuthorityTheExecutiverecommendsthattheamountofExpenditureAuthority,whichmakesfederalfundingavailabletomatchtheStatefundappropriationsforAHCCCSprograms,beincreasedby$552.0millionasasupplementalappropriationinFY2015.TheincreasedExpenditureAuthoritywillallowtheStatetodrawdownfederalmatchfortheMedicaidprogramandwillhavenoimpactonStatefunding.



FundingShifttoDHSToavoidaDHSbudgetshortfallinFY2015,theExecutiverecommendsgivingAHCCCStheauthoritytotransferupto$15millionGeneralFundtoDHSduringFY2015.TheExecutiveproposessessionlawsimilartothatwhichpermittedacomparabletransferinFY2014.


ProviderRateReductionTheExecutiverecommendsthatAHCCCSimplementa3%providerratereductiononApril1,2015,forallprovidergroupsexceptdevelopmentaldisabilitiesproviders.ThiscuttoproviderratesisanticipatedtosavetheGeneralFund($6.1million)inFY2016.Itwillalsosavehospitals$3.2millioninproviderassessmentandcounties$1.4millioninrequiredcountymatch.InadditiontotheseAHCCCSsavings,theratecutswillprovide($2.3million)inFY2015savingsintheDepartmentofHealthServicesGeneralFundbudget,forGeneralFundsavingstotaling($8.4million).Thesecutswillcosthealthcareprovidersatotalof$38.0millioninlostMedicaidpaymentrevenuesfrombothStateandfederalfunds.


RaiseDSHHardCapTheDisproportionateShareHospital(DSH)programdrawsfederalfundstoreimbursehospitalsthatserveanunusuallylargenumberofMedicaidpatientsorhaveanunusuallyhighamountofuncompensatedcare.Statesthatown,orwhosepoliticalsubdivisionsown,hospitalscandepositthefederalDSHmatchintheirGeneralFund.TheamountoffederalfundsthathospitalscanobtainisdeterminedbyfederalgovernmentformulasbasedontheamountofuncompensatedcarethathospitalsprovidetoMedicaidpatientsandtheuninsured(referredtoasthe"OBRAlimit").EachstatereceivesafederalDSHallotmentdeterminedbythefederalappropriationsprocess.Arizonahastwogovernmenthospitals:(1)theArizonaStateHospital(ASH),whichisrunbytheDepartmentofHealthServices,and(2)theMaricopaMedicalCenter,whichismanagedbytheMaricopaIntegratedHealthSystem(MIHS)undertheMaricopaCountySpecialHeathCareDistrict.InthecurrentFY2015budgettheamountofMIHSDSHiscappedbysessionlawat$89.9million,whichisreferredtoasthe"HardCap."MIHSkeeps$4.2millionforitsoperatingexpensesandtherestofthefederalmatchMIHSDSHisdepositedintheGeneralFund.Anyfederalallotmentabovethat$89.9millioncapismadeavailabletootherhospitalsthroughPool5,aportionoftheDSHprogramforhospitalsthatcangetalocalgovernmenttoprovidetheStatematch.TheExecutiverecommendsraisingtheHardCapinFY2015to$105,945,500.MIHSwilldrawanadditional$11.0millioninfederalDSHfundsfordepositintotheGeneralFund,whiletheywillcontinuetokeepthe$4.2milliontheycurrentlyreceive.FederalallotmentamountsoverthehardcapwillcontinuetobepaidtoPool5hospitals.




PerformanceMeasures


Percentofwomenreceivingcervicalscreeningwithinathreeyearperiod

NA N/A NA 55

Percentofwellchildvisitsinthefirst15monthsoflifeEarlyPeriodicScreening,DiagnosisandTreatment

67.0 67.8 67.0 68.0

Percentofemployeeturnover 15.0 16.3 16.0 16.6Percentofadministrativeinvoicespaidwithin30days 93.3 97.3 95 95Percentoftotalprogrammaticpaymentscompletedelectronically 98.1 99 98.0 98Percentofenrolleesfilingagrievance .84 .73 .84 1Membersatisfaction:percentofchoiceexercisedinmovingfromcurrenthealthplan

.7 1.4 2.0 2.0

Percentofapplicationsprocessedontime 60 47 97 97CostavoidancefromPredeterminationQualityControlProgram(inmillions)

18.60 22.22 20.50 24.50

Percentofmembersutilizinghomeandcommunitybasedservices 86.0 86.28 86.0 86.43Percentofwellchildvisitsinthefirst15monthsoflifeEarlyPeriodicScreening,DiagnosisandTreatment

70.5 67.8 71.0 68

KidsCaremonthlyenrollment 43,211 2,015 1,806 1,601Percentofchildrenwithaccesstoprimarycareprovider 88.0 N/A 89.0 89.0



0200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000


AverageCapitatedPopulation

0

5,000,00010,000,000

15,000,00020,000,000

25,000,000

30,000,00035,000,000

40,000,000


GeneralFundCoreAdministrationExpenditures

AgencyExpenditures

02,000,0004,000,0006,000,0008,000,000

10,000,00012,000,000


Al l Funds GF

(in$1,000s)




AcuteCare 918,787.3 1,079,608.0 998,587.8(81,020.2)Administration 58,213.2 52,965.5 53,514.0548.5Children'sHealthInsuranceProgram 45,744.1 6,223.0 4,132.5(2,090.5)




HealthcareGroup 849.9 0.0 0.00.0LongTermCare 168,828.3 173,049.7 172,630.9(418.8)ProgramTransfer 51,686.3 62,761.9 73,264.910,503.0Proposition204 123,403.0 41,245.5 41,390.8145.3

1,367,512.2 1,415,853.6 1,343,520.9AgencyTotalAppropriatedFunds (72,332.7)



PersonalServices 16,169.8 14,946.3 15,076.3130.0EREAmount 7,067.2 6,500.6 6,560.559.9Prof.AndOutsideServices 1,564.7 1,719.4 1,719.40.0TravelInState 26.4 27.4 27.40.0TravelOutofState 12.6 17.3 17.30.0AidtoOthers 1,217,230.4 1,309,856.7 1,236,941.0(72,915.7)OtherOperatingExpenses 8,399.1 5,720.1 6,102.1382.0Equipment 451.2 51.5 62.611.1TransfersOut 116,590.7 77,014.3 77,014.30.0




GeneralFund 1,170,548.2 1,268,340.6 1,201,302.4(67,038.2)BudgetNeutralityComplianceFund 3,303.9 3,384.4 3,443.659.2Children'sHealthInsuranceProgramFund 46,468.8 6,649.8 5,830.4(819.4)HealthcareGroupFund 849.9 0.0 0.00.0PrescriptionDrugRebateFund 94,941.2 79,035.0 80,444.51,409.5TobaccoProductsTaxFund 18,535.5 18,202.4 18,313.2110.8TobaccoTaxandHealthCareFund 32,864.7 34,178.8 34,186.88.0






NetChangeFY2016

AcuteCareClawbackPayments 37,859.1 37,939.4 37,939.40.0AHCCCSAdministration 2,854.7 2,320.9 2,355.434.5Children'sRehabilitativeServices 51,686.3 62,761.9 73,264.910,503.0DESEligibility 27,263.2 24,987.7 24,987.70.0DisproportionateSharePayments 0.0 2,928.4 2,885.7(42.7)EPDALTCSServices 157,860.6 161,861.4 161,442.6(418.8)KidsCareII 36,272.6 0.0 0.00.0LongTermCareClawbackPayments 10,862.8 11,083.4 11,083.40.0RuralHospitalReimbursement 3,984.2 3,834.7 3,703.4(131.3)

328,643.7 307,717.8 317,662.5AgencyTotalAppropriatedFunds 9,944.7




NetChangeFY2016

AHCCCS3rdPartyCollection 644.0 912.5 943.030.5AHCCCSFund 4,825,038.5 6,103,082.8 6,743,590.1640,507.3AHCCCSIntergovernmentalServiceFund 7,116.9 8,000.0 8,000.00.0AHCCCSSecurityEnhancementProj 52.8 0.0 0.00.0ArizonaTobaccoLitigationSettlementFund 100,764.7 100,000.0 100,000.00.0CountyFunds 0.0 295,396.1 298,127.62,731.5FederalGrant 287.0 1,097.1 1,097.10.0HealthcareGroupFund 10,623.5 0.0 0.00.0HospitalAssessment 74,964.4 204,597.7 215,529.710,932.0IGAandISAFund 1,068,479.8 904,935.3 936,227.231,291.9LongTermCareSystemFund 1,669,166.2 1,629,932.8 1,701,316.071,383.2MedicallyNeedyAccount 35,508.3 35,467.0 35,475.38.3NursingFacilityProviderAssessmentFund 49,787.2 53,934.2 74,905.920,971.7PrescriptionDrugRebateFund (93,901.3) (59,124.9) (68,747.2)(9,622.3)Prop202TraumaandEmergencyServices 21,521.7 21,558.3 23,198.81,640.5Proposition204ProtectionAccount 38,965.7 38,225.0 38,457.7232.7StatewideDonations 6.5 6.5 6.50.0

7,809,025.9 9,338,020.4 10,108,127.7

AgencyTotalNonAppropriatedFunds 770,107.3




6,240,322.0 7,740,360.1 9,002,084.9AgencyTotal



TheExecutiverecommendsalumpsumappropriationbyprogramwithsp

Arizona State Agency Budgets For Fiscal year 2016

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