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Arizona Republicans present $17.96 billion FY2027 appropriations package, highlight one‑time transfers and targeted supplements
Summary
House Republican leaders outlined HB 4,138, the FY2027 general appropriations (FEED) bill, announcing roughly $17.96 billion in general fund spending, one‑time transfers and targeted supplements for health insurance, school facility renewal, child care and corrections stipends.
Republican caucus leaders presented House Bill 4,138, the fiscal year 2027 General Appropriations Act, saying the package balances the budget while directing new one‑time and ongoing dollars to targeted priorities.
Staff summarized the bill’s fiscal footprint, noting "approximately $17,960,000,000 from the general fund in fiscal year 2027," plus a reported $360.2 million in one‑time transfers from other state funds and $99.2 million in ongoing savings from a 5% lump‑sum reduction to non‑formula general fund budgets, "with the exception of the Department of Public Safety, Corrections, and Child Safety," staff said.
Chairman Gress framed the bill’s priorities around public safety and education. He highlighted a $228 million appropriation for the state health insurance plan and $200 million for the School Facilities Division’s building renewal grants. He also cited one‑time allocations that continue prior year items: $66 million for increases to the low‑income weight in K‑12 funding, $44.8 million for childcare assistance, $36.9 million for congregate care at the Department of Child Safety, and $21.9 million to fund a 4% correctional officer stipend.
On health‑care costs for state employees, Gress said the bill appropriates funds intended to stabilize the Health Insurance Trust Fund and prevent insolvency, arguing that plan design changes and prior contribution reductions had worsened the fund’s fiscal condition. "If we did not make this deposit, then by the end of next fiscal year, the trust fund would be insolvent and unable to pay medical claims on behalf of its members," he said.
Republican leaders stressed investments in child care and K‑12 supports. The caucus said the budget includes $45 million to serve an additional 4,000 children with child‑care subsidies and described expansions to a "low‑income weight" for schools that serve a higher share of students eligible for free or reduced‑price lunch. The bill also funds additional assistance flexible for capital needs.
Leaders framed the package as a mix of fiscal restraint and targeted investment, and urged caucus support as they prepared to move the measure to the floor. The caucus also noted that tax policy changes will appear in separate taxation reconciliation legislation.
The caucus adjourned and prepared to take the appropriations act to the House floor.
