Committee advances bill to eliminate state positions vacant 150 days after members raise carve-out questions

House Bill 26-88, a bill aimed at reducing perceived budgetary 'slush funds' created by long-unfilled state positions, received a due-pass recommendation from the Regulatory Oversight Committee by a 3–2 vote.

Staff explained the bill’s mechanics: the Arizona Department of Administration (ADOA) would collect each budget unit’s list of FTEs vacant for at least 150 days and direct elimination of those positions from the unit’s budget each fiscal year. Staff noted ADOA already reports FTE and salary information to JLVC and OSPD as part of standard practice.

Sponsor Representative Heath described the measure as an efficiency and oversight tool to encourage timely hiring and prevent departments from holding unused vacancy dollars in discretionary accounts. He acknowledged exceptions for hard-to-fill public-safety positions such as Department of Corrections and DPS, and said additional carve-outs could be considered if the committee felt necessary.

Members asked practical questions about where reallocated funds would go and whether tax-conformity and federally required hires (for example, positions needed to process federal tax-related responsibilities) would be inadvertently eliminated. Witnesses from private industry supported the bill as sound stewardship of taxpayer funds, urging cost-benefit analysis for maintaining long-vacant positions.

After discussion, the committee returned HB2688 with a due-pass recommendation (3–2). Members said they expect the scope of exemptions and specific department carve-outs to be clarified as the bill moves through the process.