Appropriations
Description:
The primary focus of state government public finance is the general fund. Appropriations are approved by the Arizona Legislature before the beginning of each fiscal year, but adjustments to appropriations can be made during the year. Actual expenditures are essentially the same as the latest approved appropriations. The data are reported for fiscal years; for example, fiscal year 2012 runs from July 1, 2011 through June 30, 2012. An annual time series of expenditures are available back to fiscal year 1979 and include appropriations through the current fiscal year. Over the years, numerous changes have been made to the sources and uses of the general fund. For example, school construction was not part of the general fund prior to fiscal year 1999.
In order to compare expenditures over time, the effects of inflation, population growth, and per capita economic growth must be considered. Reporting expenditures per $1,000 of personal income automatically adjusts for all three factors. The fiscal year average (the average of the four quarters of the fiscal year) of personal income is used to standardize the public finance data.
Data Source:
Expenditures are reported by the Arizona Joint Legislative Budget Committee (JLBC) http://www.azleg.state.az.us/jlbc.htm. The expenditure data are taken from the Appropriations Report; when released late in a fiscal year, the report includes revised appropriations for the current fiscal year and appropriations for the following fiscal year. The Appropriations Report is released several weeks after the budget has been passed by the Legislature and approved by the Governor.
Personal income is estimated quarterly by state by the U. S. Department of Commerce, Bureau of Economic Analysis http://www.bea.gov/regional/sqpi/default.cfm?selTable=SQ1. It is released about three months after the end of the quarter; revisions to estimates for prior quarters are made every quarter.
Data Quality Comments:
Because of differences by state in accounting systems, the JLBC data are not comparable to those of any other state.
Some of the inputs to the calculation of personal income by state are estimated. Personal income estimates are subject to revision. Figures for the current fiscal year are projected. Personal income is a comprehensive measure of the economy but has conceptual limitations when employed to adjust public revenues and expenditures.
Appropriations Per $1,000 of Personal Income, Arizona State Government General Fund
Visualization Notes:
General fund appropriations through the early 1990s averaged nearly $50 per $1,000 of personal income (alternatively, were equal to approximately 5 percent of personal income), but have fallen considerably in Arizona since the early 1990s. The amount appropriated also has become cyclical, despite countercyclical increases in demand for health and social service programs. Despite the ongoing recovery from the recession that lasted from fiscal year (FY) 2008 into FY 2010, appropriations relative to the size of the economy will continue to drop through FY 2012. Between fiscal years 1992 and 2012—similar years in the economic cycle—appropriations fell 34 percent relative to the size of the Arizona economy—appropriations for education fell 36 percent while appropriations for other purposes dropped 31 percent.
Appropriations by Type Per $1,000 of Personal Income, Arizona State Government General Fund
Visualization Notes:
Relative to the size of the Arizona economy, general fund appropriations for health and welfare climbed sharply from the early 1980s to the early 1990s, but have since dropped back. They have fluctuated since fiscal year (FY) 2005. Spending for public safety and corrections increased during the 1980s but has gone down a little since then per $1,000 of personal income. A surge in FY 2007 has been largely offset by decreases since then. Appropriations for all other noneducation programs held steady relative to the size of the Arizona economy through the mid-1990s but have since dropped, with declines in each year since FY 2008.
Appropriations by Type as a Share of the Total, Arizona State Government General Fund
Visualization Notes:
Though education still accounts for more than half of the Arizona general fund budget, this share is significantly lower than in the past, dropping from nearly 69 percent in fiscal year 1979 (the earliest data) to less than 56 percent in fiscal year 2012. The decline in share for education has been offset by an increase in the share for health and welfare programs (from 16 percent to 30 percent over the 33 years). Similarly, an increase in share for public safety and corrections from 6 percent to nearly 13 percent has been offset by a decline in share for all other programs, from 9 percent to less than 2 percent.
Data Source
Expenditures are reported by the Arizona Joint Legislative Budget Committee (JLBC) http://www.azleg.state.az.us/jlbc.htm. The expenditure data are taken from the Appropriations Report; when released late in a fiscal year, the report includes revised appropriations for the current fiscal year and appropriations for the following fiscal year. The Appropriations Report is released several weeks after the budget has been passed by the Legislature and approved by the Governor.
Personal income is estimated quarterly by state by the U. S. Department of Commerce, Bureau of Economic Analysis http://www.bea.gov/regional/sqpi/default.cfm?selTable=SQ1. It is released about three months after the end of the quarter; revisions to estimates for prior quarters are made every quarter.
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