[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6343864,"mediaKeyId","2251653-7901c5ebb69dfbe5f473c92887e54e92","parentId",2251653,"title","State employees targeted for grouped raises in governor’s FY26 budget; lawmakers press JLBC and ADOA on details","audioSeconds",615,"startMs",351000,"endMs",966000,"viewUrl","/Search/View?dp=1&key=2251653-7901c5ebb69dfbe5f473c92887e54e92&start=351&end=966","thumbnailUrl","https://assets.pipeline.soar.com/2251653-7901c5ebb69dfbe5f473c92887e54e92/thumbnail_351000.jpg","articleUrl","/articles/6343864/Arizona/State-employees-targeted-for-grouped-raises-in-governors-FY26-budget-lawmakers-press-JLBC-and-ADOA-on-details","mediaUrl","https://secure.pipeline.soar.com/6343864-fddf3ea683cf985624a3c6a50e838de1/orig.mp4?Expires=1773586094&Signature=fnDAqUcCRf-Li4aIkke8XglwQo4lRQmc0ae7kIUigddajmij41jEaYirIGtO6WcJKNVngbYZDP~A-rVqUoVfoH-h~Re8-O6sKFdQuCKSdYUi0ORJ0fP6Hji0phQE5emZKd2YsT3-SRJix30weo9k4nPZhZetZeUl9kqPALv5T4tZAh5U7dQ7Byyv9Ewh2c6RxzTJmuZGryO~~3lJm4OYCj-pxTP5g3GauG43YUOdNuUTCCa-iHaZYMTcn8siinwlDiyf6GGKrlrv-G9uN4CBPFMZYlvFBv2ejThm8I8FhPztMQm6QYd-n9DvAiXtctT4W0EFomtQ57~-MwcR19nm7A__&Key-Pair-Id=KUT5TJCACFTXG","author","Arizona State Legislature","date","2025-02-05T00:00:00Z","article","(Note: The following article covers the JLBC/ADOA presentation and committee questioning on state employee salary proposals.)

The House Appropriations Committee heard Feb. 5 presentations from JLBC staff and the Arizona Department of Administration on the governor’s FY26 employee pay proposal, which combines targeted increases for selected job classes with a set of broader, smaller raises across agencies.

Jeff Paulson of JLBC summarized the governor’s proposal as a package divided into 10 categories, including a 5% public-safety pay adjustment for correctional officers, a 5% law enforcement certification adjustment, a 15% firefighter increase for limited state firefighter positions, 10% increases for customer-service roles, and a proposed statewide minimum hourly salary of $17 for state employees. Paulson said the ADC adjustment for correctional officers would increase the average frontline officer’s base salary by about $2,100 under the proposal, and that the governor’s general fund cost for the ADC correctional officer portion is roughly $21.2 million.

Paulson and ADOA Chief Financial Officer Jacob Wingate described how some categories are funded differently across funds and agencies: the executive’s calculations used human resources fund-source codes in the state HR system as a starting point, and JLBC warned it would follow up to check whether the executive’s fund-sourcing assumptions under- or over-state federal shares for agencies such as DCS, DES and ACCESS. \"We would recommend the Executive provide more details on how they determine their fund sourcing,\" Paulson told the committee.

Committee members asked several follow-up questions the presenters could not fully answer on the spot, including: which specific job codes are included in the “customer service” category; how private prison per-diems would have to be adjusted to reflect a 5% correctional-officer increase (Paulson provided a rough estimate of about $4.1 million for the private vendors); and whether vacancy savings intended to fund pay increases for vacant positions would instead be used for overtime. Paulson said roughly $3 million of the governor’s $5.7 million vacant-position funding is directed at ADC corrections officer vacancies and that agencies commonly use vacancy savings for overtime when vacancies remain unfilled.

The $17 minimum proposal drew particular scrutiny. Paulson said the executive included a $17 minimum and a separate 2% across-the-board increase for other employees; committee members and JLBC staff discussed compression effects — for example, an employee currently earning $17 who receives only the 2% raise would get a 34-cent hourly bump while a lower-paid worker could receive a much larger absolute increase when moved to $17. \"We just know that, it was, primarily, for the $17 any compression as a result of the $17 minimum,\" Paulson said.

ADOA said it had gathered input from agency HR leaders and market data to identify retention and turnover problems and that its priorities included public-facing roles, clinical health care and public safety. \"We provide statewide centralized administrative functions, including a statewide HR function,\" Jacob Wingate said, describing ADOA’s role in classification and compensation work.

JLBC flagged two other fiscal topics for committee follow-up: (1) fund-sourcing concerns where the executive appears to rely on federal funds for salary increases in agencies with federal matches — JLBC said the executive’s share calculations for DCS and DES appeared to overstate the federal share and understate the general fund need; and (2) the financial status of the State Home for Veterans Trust Fund, which JLBC staff said may have deficits and that the committee should review implications of adding recurring expenses to a fund reportedly in poor condition.

No formal action on the pay package was taken at the hearing. Committee members asked JLBC and ADOA to supply additional line-item and fund-source detail, job-code lists for categories such as customer service, agency director salaries, detailed vacancy overtime projections, and the methodology behind the executive fund-sourcing assumptions.

Why this matters: The package would redistribute roughly tens of millions of dollars from the general fund and non‑GF sources and could shift costs between state, federal and other funding sources. Lawmakers signaled they will probe the fund sourcing and the budget’s treatment of vacant positions and overtime as they negotiate the FY26 plan.","mediaType","Video","parentTitle","02/05/2025 - House Appropriations","oneSentenceSummary","JLBC and ADOA briefed the House Appropriations Committee on the governor’s FY26 employee pay proposals—targeted and systemwide increases that include a proposed $17 minimum hourly rate and targeted raises for correctional officers, firefighters and customer‑facing staff.","taxTitle","2025 Legislature Arizona, Arizona","taxId",78572,"location","Arizona","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343854,"House committee advances bill to require some SNAP recipients to participate in employment and training; advocates warn of rural, tribal impact",2823,6890000,9713000,"/Search/View?dp=1&key=2251653-7901c5ebb69dfbe5f473c92887e54e92&start=6890&end=9713","https://assets.pipeline.soar.com/2251653-7901c5ebb69dfbe5f473c92887e54e92/thumbnail_6890000.jpg","/articles/6343854/Arizona/House-committee-advances-bill-to-require-some-SNAP-recipients-to-participate-in-employment-and-training-advocates-warn-of-rural-tribal-impact","https://secure.pipeline.soar.com/6343854-08318e9f218d269de419e1ff35f41c93/orig.mp4?Expires=1773586094&Signature=XMDjm-Q4eE7LbrTv5BvImnNSiLccUSuGQe0-Lyc8zCk3bDhqofqUvIazc7oMwBsFYbLGUWfr3lDcVlswxF-ZQEjffCE1xlnc0oT7r3B-qOeobM7eRu5FPHy2lmjGyV~GUw7JoHmKy7ulQCBH3mBeuhfc~VEI2MX4jwQ5PVssT22vepRW~v5~pfkSfg3TfFs4rLzkvtDf3mWMsKTPNwOK10XqdVRmxjwXQQoi14OM2PzH35Lns5d0biwsQLgRehYatBQTkG~fAAj3qf15ASm8KTVPx5oFvBYB8GziDdMhFqj5bhEZLDbK6srrDF5gufiBKD97rdK9ouaPwyP22a0tcw__&Key-Pair-Id=KUT5TJCACFTXG","The House Appropriations Committee voted Feb. 5 to give House Bill 2121 a due‑pass recommendation after testimony and debate on a bill that would require able-bodied adults without dependents who receive SNAP benefits to participate in a state employment and training (E&T) program unless they qualify for listed exemptions.

Sponsor Representative (title given in transcript as) Willoughby framed the bill as an effort to connect able‑bodied recipients to work. “We have to make sure that state aid does not become a complete crutch,” she said, adding the bill is targeted and contains exemptions for those already working or otherwise exempt. Proponents in the hearing cited outcomes in other states; the sponsor referenced results in Utah and Idaho, saying participants there found employment in the quarters after completion.

Opponents included legal aid and anti‑hunger organizations, tribal representatives and food‑bank leaders. MJ Simpson of the William E. Morris Institute for Justice said SNAP is the most effective anti‑hunger program in the country and warned HB 2121 expands mandatory participation to an older age range than some testimony suggested; Simpson noted the bill’s reach went to age 60 in the text read at the hearing and asked members to vote no. \"SNAP is the most effective anti hunger program in the country,\" Simpson told the committee.

Tribal and rural witnesses argued the bill could reduce access in areas with limited job opportunities, poor transportation networks and other barriers. A Navajo Nation representative (read into the record) told the committee that waivers and flexible rules matter because long travel distances and poor road conditions make E&T participation difficult on tribal lands; Flagstaff Family Food Center and other food banks said local deliveries and emergency responses depend on federal flexibility.

Economic analysts and the Arizona Food Bank Network argued an effective E&T program requires funding for training, transportation and supportive services. Witnesses cited a study estimating that about $1,800 per participant would be required to provide meaningful services that lead to sustained employment; food‑bank leaders and policy analysts said the state’s SNAP E&T currently serves a small fraction of the population in need and that scaling to a mandatory program without statutory funding would likely overload providers and create risk of benefit loss for vulnerable families.

After public testimony the committee voted 11–6–1 to give HB 2121 a due‑pass recommendation. Committee discussion included multiple requests for stakeholder engagement; several members said they wanted the sponsor to consult tribal nations and food‑bank networks to refine the bill before floor action.

Why this matters: HB 2121 would change how the state enforces and administers SNAP work requirements for a subset of recipients and could shift program administration costs and caseloads between state and federal programs. The committee advanced the bill, but lawmakers and advocates flagged implementation and funding issues that could limit its effect and potentially increase hunger risk in rural and tribal areas if not addressed.","The House Appropriations Committee advanced House Bill 2121, which would make participation in a SNAP employment and training program mandatory for many able‑bodied adults without dependents, after hours of testimony that split supporters and tribal, anti‑hunger and policy groups.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343850,"House committee advances bill banning most state SNAP work‑requirement waivers; advocates say bill removes needed flexibility",1193,9717000,10910000,"/Search/View?dp=1&key=2251653-7901c5ebb69dfbe5f473c92887e54e92&start=9717&end=10910","https://assets.pipeline.soar.com/2251653-7901c5ebb69dfbe5f473c92887e54e92/thumbnail_9717000.jpg","/articles/6343850/Arizona/House-committee-advances-bill-banning-most-state-SNAP-workrequirement-waivers-advocates-say-bill-removes-needed-flexibility","https://secure.pipeline.soar.com/6343850-2ec262051cadcdbf987f55cd4e6a288c/orig.mp4?Expires=1773586094&Signature=lbpLURv2zM4TsVsv7HbSog9J5hwHYzrGe2nG2GgVQZM0p0SZjh~UUGyqpLQisMpVvRqzBJRylEgHVsyOiwEkt2SrEkfmC888KgedNahrx4-WkAu2tOaSPwmrDc62Dgg-MyvaPJqWyEhGZaab~svdDwq7rUPrX8USLYAspV2EaR6W~flwLTTPM4GarS4hKF3HwGwQyyPi7-b64qeuMacJmP8lcOwpbxnHajs7X3OyF-khkM6WJnYo48nVSPwu4uvCxGIzUGOzXrws1O9s1ZuMlIRKiary4IUuJzNuSfkbkEUbKgJMUZZdQoXJYRsUQPwdk6UJg9FuLnVWOY17lRgqjQ__&Key-Pair-Id=KUT5TJCACFTXG","House Bill 2122, which would bar the Arizona Department of Economic Security from seeking or accepting most federal waivers of SNAP work requirements for able‑bodied adults without dependents, received a due‑pass recommendation from the House Appropriations Committee on Feb. 5.

Sponsor Representative Willoughby described HB 2122 as a simple statutory change to prevent the state from applying for federal waivers of SNAP work requirements for that population except where federal law requires or state law authorizes. \"We are not trying to take anybody off of SNAP,\" one proponent said; he added that the bill is intended to ensure able‑bodied adults engage in work or training when jobs are available.

Opponents argued the bill would remove the state’s ability to respond to local labor conditions and emergencies. Drew Schaffer of the William E. Morris Institute for Justice and other witnesses noted federal law (7 U.S.C. §2015(o)(4) and related guidance) allows states to use waivers in areas with limited job availability; they said removing the option would limit the state’s capacity to respond when jobs are scarce, such as after a natural disaster or in remote tribal areas.

Several rural and tribal witnesses reiterated concerns that local transportation, broadband and employment opportunities differ across Arizona; testimony from Flagstaff Family Food Center and other local providers described increases in food assistance demand and warned that removing waiver authority could increase hunger in hard‑to‑serve areas.

The committee recorded an 11–6–1 vote to recommend HB 2122 advance. Multiple members said they support work opportunities but wanted to preserve flexibility for areas with demonstrably limited job availability; those members asked staff and the sponsor to continue stakeholder engagement as the bill proceeds.

Why this matters: HB 2122 would curtail Arizona’s ability to request federal waivers that allow the state to exempt certain areas or populations from SNAP work requirements when local labor market conditions or emergencies make compliance infeasible. Advocates warned the bill removes a tool used to protect food access in tribal and remote communities; supporters said it would promote work participation where jobs are available.","The House Appropriations Committee voted 11–6–1 to advance House Bill 2122, which would generally bar DES from applying for federal waivers of SNAP work requirements for able‑bodied adults without dependents, a change supporters say promotes work and opponents say removes necessary flexibility.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343859,"Lawmakers warned HIDIF cash balance could run out; executive proposes large one‑time subsidy and a $25M ongoing deposit",662,4532000,5194000,"/Search/View?dp=1&key=2251653-7901c5ebb69dfbe5f473c92887e54e92&start=4532&end=5194","https://assets.pipeline.soar.com/2251653-7901c5ebb69dfbe5f473c92887e54e92/thumbnail_4532000.jpg","/articles/6343859/Arizona/Lawmakers-warned-HIDIF-cash-balance-could-run-out-executive-proposes-large-onetime-subsidy-and-a-25M-ongoing-deposit","https://secure.pipeline.soar.com/6343859-f9d101bfe8aa6bc6ce78b65a497e63ac/orig.mp4?Expires=1773586094&Signature=BgA0~bly8EUzAGoCLPeqsgy~zWeCW1itB7v29~TNMq05~YAKNdG~TSzadlEF29BiKAcwEf~E1ZLDoxXfjLG1JLwVKIK3P1dURYbw5Y9FygCKwmJEd0xasssc0q1y-G-JwYm8fiLceX~aGyB57iZ9OYXJXSOBXSKmqp9ItiTvouOjaAtwhq9yN6eEOZ5DMR5jV~ytBmUtKUiMF4rOrZiDgC8cMc4gnBLQghT94f-Jd-ZRF4-UNzeHt3VQUJwHWtCuO93O6M9ZMf0GX2V2z0TkSgu668MIw6Re9mJKQjR82V4zKQNYoeBYQvWwnD7S9CEHGJSGT46QI4iO1I2~IK0GeQ__&Key-Pair-Id=KUT5TJCACFTXG","JLBC and ADOA officials told the House Appropriations Committee on Feb. 5 that Arizona’s self‑insured state employee health plan (HIDIF) has run repeated shortfalls and may hit critically low balances in FY26 unless the Legislature and governor act.

Chandler Korner of JLBC told the committee HIDIF has received multiple one‑time employer premium subsidies since FY18 to stabilize the trust. Those deposits have totaled hundreds of millions of dollars, Korner said, and the executive’s FY26 budget proposes a $198 million one‑time employer subsidy (about $423 million total funds) plus a $25 million ongoing general‑fund deposit for HIDIF.

Korner said plan expenditures spiked in FY24 and remain elevated: “State plan expenditures, as we just saw, grew by 15% in FY '24,” he told lawmakers, and the executive assumes continued double‑digit growth in its FY26 projection. JLBC staff reported year‑to‑date FY25 expenditures were about 13.2% above the prior year over the same period. The staff highlighted pharmacy spending as a major driver, including the new class of high‑cost GLP‑1 and other specialty drugs.

ADOA’s Jacob Wingate told the panel the agency has a pharmacist on staff and is conducting procurements and audits intended to control pharmacy costs; Paul Shannon, ADOA benefits director, described contracting and rebate complexities and called the PBM industry “an opaque industry.” Shannon said ADOA’s recent work to audit pharmacy rebates and contracts produced recoveries and business‑intelligence improvements; ADOA reported several million dollars of additional rebate recoveries over the last three years tied to contract and audit work.

JLBC flagged two other issues: (1) how the executive reallocated the proposed one‑time subsidy among agencies (JLBC said some universities and other units would receive very different proportionate increases under the executive’s rebasing); and (2) whether HIDIF needed a larger ongoing reserve. Korner noted typical cash balances have ranged and that the executive proposed budgeting a $100 million HIDIF ending balance, higher than some prior practice.

Korner told the committee a structural risk remains: \"Without funding HIDIF's cash balance could hit $0 by August 2025,\" referencing daily cash‑flow volatility the staff displayed in charts. Committee members asked for longer‑range cash projections, the detail behind executive reallocations among agencies, and more precise estimates of how different expenditure growth rates would change FY26 funding needs.

Why this matters: HIDIF funds benefits for roughly 136,000 members (employees, dependents and retirees). A trust‑fund failure would disrupt coverage for a large population and affect state employer payroll costs, tuition/tax flows for universities and agency budgets. Committee staff and ADOA described procurement and audit efforts to manage pharmacy costs; lawmakers requested additional modeling and documentation before approving FY26 stabilization funding.","JLBC and ADOA briefed the committee that the Health Insurance Trust Fund (HIDIF) has required repeated one‑time employer subsidies in recent years and that the executive proposes a $198M one‑time FY26 employer subsidy plus a $25M ongoing GF deposit to stabilize the fund.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343869,"House Appropriations chair sends letter to Gov. Hobbs raising alarm over developmental disabilities budget",0,3783000,"/Search/View?dp=1&key=2251653-7901c5ebb69dfbe5f473c92887e54e92&start=3783&end=3783","https://assets.pipeline.soar.com/2251653-7901c5ebb69dfbe5f473c92887e54e92/thumbnail_3783000.jpg","/articles/6343869/Arizona/House-Appropriations-chair-sends-letter-to-Gov-Hobbs-raising-alarm-over-developmental-disabilities-budget","https://secure.pipeline.soar.com/6343869-ed84844959787b118ed8f0eb5b245aa9/orig.mp4?Expires=1773586094&Signature=m1LlpTrddkOPZr6isAlGoworGRwdlp5BxO7nKijr9zPY-YBD0iieVVnc2cg17FGts~4fg0u0QW59-jH6DjKSian8l-~fGlkshZW35Ffrx2URRGGWI22vP66rqrA~loHTf1QM31yuLChWZQTL6ZOeoxodm4RIWHPIQjz7deB4MeDg6DuNkySDBEub7TAV5ONXbtfQ-dtxTxSxcRoECANWLp375Ac9bQZ0Tt28NYrKuPEaExoBU2ls8vEWJw0ce2Pdi6WiMUznAMx2Eg2YGHnSUcjF0DmdJ7WgY7Xd1hg1zWtQ-edjvyPcBgAU28e5HfYhM0ahOb50tBQa56EBi62gnQ__&Key-Pair-Id=KUT5TJCACFTXG","House Appropriations Chairman David Livingston said the committee has sent a letter to Gov. Katie Hobbs raising alarm about a sharp increase in the state’s projected costs for the Department of Developmental Disabilities (DDD), and asking what steps the executive branch will take to avoid service interruptions.

In a letter read aloud at the committee’s Feb. 5 hearing, Livingston, identified as “David Livingston, chairman of appropriations,” said the committee had been briefed that DDD supplemental needs had grown from $109,000,000 to $122,000,000 and warned that the agency could “cease operations in April” without action. “This is alarming to both the legislature and families using this program,” he wrote and read to the panel.

The letter told the governor the committee had been briefed that the program’s cost growth stems from three primary drivers: growth in eligibility, increased rates, and continuation of the COVID-era parents-as-paid-caregivers program (PPCG). Livingston asked whether the governor’s office would “choose the same posture this year” as in a prior budget cycle and sought an immediate plan for how the Administration and DDD intend to control program costs.

Committee members pressed for additional detail at the hearing. Livingston apologized for earlier remarks made in a previous meeting and said he had spent time meeting with parents and community groups over the weekend; he urged agencies to provide the committee with “specific detailed recommendations” on cost control. Committee members also asked staff to follow up on specific fund sourcing and agency cost drivers during the budget process.

The letter and Livingston’s statements do not adopt a legislative remedy or identify a concrete appropriation; instead, they ask the governor and relevant agencies to provide the committee with detailed options to address the shortfall.

The committee did not take a formal vote on the letter at the Feb. 5 meeting. Livingston said the letter and a press release would be distributed to members and the media after the hearing.

Why this matters: DDD provides services for Arizonans with developmental disabilities. Committee chair’s request for a plan signals the Legislature expects rapid executive action and that the issue will be central to FY26 budget negotiations.","Chair David Livingston emailed and read a letter to Gov. Katie Hobbs saying the Department of Developmental Disabilities (DDD) faces sharply higher supplemental needs and warning the Legislature expects a plan to prevent service interruption.","actionData","errors"]

Article not found

State employees targeted for grouped raises in governor’s FY26 budget; lawmakers press JLBC and ADOA on details

House committee advances bill to require some SNAP recipients to participate in employment and training; advocates warn of rural, tribal impact

House committee advances bill banning most state SNAP work‑requirement waivers; advocates say bill removes needed flexibility

Lawmakers warned HIDIF cash balance could run out; executive proposes large one‑time subsidy and a $25M ongoing deposit

House Appropriations chair sends letter to Gov. Hobbs raising alarm over developmental disabilities budget