Arizona House Appropriations Committee approves continuation budget package to keep state running

Chairman Livingston, chair of the Arizona House Appropriations Committee, told members on June 24 that the committee would group fiscal 2026 continuation bills and take a single roll-call recommendation vote, and the committee later approved the grouped package.

The grouped motion, which combined House Bills 2962 through 2974 and moved them for a due-pass recommendation, passed in committee with 11 yeses, 6 noes and 2 not voting. Under the procedures the committee agreed to at the start of the hearing, members could speak as each bill was discussed but not explain votes during the final roll call.

The largest bill in the package, House Bill 2962 (the FEED or General Appropriations Act), appropriates about $17 billion for fiscal year 2026, including approximately $456 million in one‑time appropriations. Committee staff described revenue adjustments in the FEED bill that reflect enhanced federal medical assistance percentage (FMAP) savings of roughly $131.1 million in FY2025 and $62.9 million in FY2026, transfers from the prescription drug rebate fund ($150 million in FY2025 and $100 million in FY2027–28), ongoing funding for high‑cost developmental disability (DD) clients ($14.8 million annually in FY2026–28), a one‑time $32.3 million backfill for prior DD actuarial losses, an ongoing $160 million Department of Economic Security formula adjustment, a one‑time $183.3 million building renewal appropriation and a one‑time $140 million appropriation for state employee health insurance.

Chairman Livingston framed the package as a continuation-style budget intended to "keep the lights on." He said the continuation reflects revenue assumptions the House accepted for FY2026, that it contains no earmarks for individual members or the governor, and that it represents the only bill he believed could both pass the House and clear the Senate and the governor’s desk in time to avoid a shutdown. "This is the only bill budget package I believe we can pass out of this house. That the senate can pass and the governor can sign," he said during committee remarks.

Members and witnesses described the bill as a temporary measure to preserve state operations while further negotiations continue. Committee staff and members repeatedly cautioned that several priorities—community college funding, rural hospital support, pay raises for public safety, and other items—were not included in this continuation package and would require separate bills or a future special session if the governor and Senate agreed.

The motion to group the bills and move them for a due‑pass recommendation was made on the record by the vice chair (motion text read into the record by committee staff), and the secretary recorded the roll call that produced the committee tally. With the committee recommendation, the grouped bills move to further consideration under the chamber’s calendar process.

What this means going forward: the committee’s action sends a set of continuation and implementing bills to the next legislative steps with a recommendation of due pass. Committee leadership repeatedly said the purpose was to give state employees, vendors and agencies continuity of operations while negotiators work toward a fuller budget; several members and witnesses urged additional, separate bills to address items not funded in the continuation package.