State Legislature Quickly Moves to Pass State Budget and Recess Amid COVID-19 Crisis

April 7, 2020
State Relations

 

The week of March 16, 2020, the legislature quickly moved to begin drafting a FY21 state budget amid the growing COVID-19 concern. The budget was passed on March 23 and signed by the Governor on March 28.  The final budget is being referred to as a “skinny budget” because it is very close to the baseline budget of last year. This means the legislature did not provide additional funding to universities and the New Economy Initiative was put on the backburner.

The expectation is to return to session on April 13 to consider supplemental funding and vote on remaining bills. It is difficult, however, to predict the economic impact of the virus, and therefore whether there will be additional funding or additional budget cuts.  The “skinny budget” does include some additional funding, which is almost entirely earmarked to address COVID-19.

COVID-19 Emergency Response Fund

  • Appropriates $55 million to the Public Health Emergencies Fund administered by the Director of the Department of Health Services.
  • Requires this funding be used to pay the expenses of public health emergency responses following the state of emergency declaration on COVID‑19.
  • Funding not used by June 20, 2021, will revert back to the state general fund.

COVID-19 Crisis Contingency & Safety Net Fund

  • Appropriates $50 million for the services listed below following the state of emergency declaration on COVID-19:
  • Housing assistance, including payments to prevent eviction or foreclosures.
  • Monies for entities to provide services for homeless persons, including shelter, food, clothing and transportation.
  • Economic assistance to small businesses with fewer than 50 employees, nonprofit organizations and health care providers.
  • Monies for food bank operations.
  • Funding is distributed at the discretion of the Governor.
  • Funding not used by June 20, 2021, will revert back to the state general fund.

K-12 Education

  • Appropriates $68 million to K-12 public schools that may be used to shift to online instruction following the state of emergency declaration.

Other

  • Appropriates $19 million to the Department of Corrections to upgrade prison locks, as well as fire and HVAC systems.
  • Appropriates $3 million to the Department of Veteran Services for operation of new veteran’s homes.

Governor Ducey has issued several Executive Orders related to the state response to COVID-19:

  • Declaration of Emergency can be viewed here.
  • Executive Order on COVID-19 proactive measures to protect against COVID-19 can be viewed here.
  • Executive Order to prohibit the closure of essential services can be found here.
  • Executive Order to enhance surveillance to accelerate tracking of COVID-19 cases can be found here.
  • Executive Order to “State Home, Stay Healthy, Stay Connected” can be found here.
  • Executive Order to expand telemedicine services can be found here.