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Committee approves ADOA's $7 million transfer within risk-management funds
Summary
The Joint Legislative Budget Committee approved ADOA's request to transfer $7 million within the risk management revolving fund—$5 million to workers' compensation losses and premiums and $2 million to administrative expenses to cover higher-than-budgeted attorney general contracted legal costs; JLVC staff said statute requires committee approval.
The Joint Legislative Budget Committee approved a request from the Arizona Department of Administration (ADOA) to transfer a total of $7,000,000 within the risk management revolving fund in fiscal year 2026.
Ethan Scheider of JLVC staff summarized the request: "Item number 2 in your meeting books is a request from ADOA to transfer a total of $7,000,000 from the risk management revolving fund from the risk management losses and premiums line item in fiscal year 20 26. 5,000,000 would be transferred into the workers' compensation losses and premiums line item to pay for increased workers' compensation program costs, and 2,000,000 would be transferred into the administrative expenses line item to pay for higher than budgeted attorney general risk management contracted legal costs." He also told members that "statute requires committee approval of any transfers of spending authority within the Arizona Department of Administration."
The vice chair moved approval of the transfer and the chair called for the ayes; the chair recorded that the ayes carried and ordered the motion. The transcript does not include a roll-call tally or named votes.
After the vote, a member asked Richard to speak about FAC numbers and sports-betting revenue. Richard said, "We are currently analyzing the April numbers... I don't have anything definitive on that, today," and characterized Arizona's sports-betting rates as being "in the ballpark of others who have the rate that we have," adding the state tends to be "on the lower end" though not alone at that level. Senator Fernandez had asked whether Arizona's revenue from sports betting was comparable to other states.
Why it matters: The transfer shifts existing spending authority to cover increased workers' compensation costs and higher legal costs in ADOA's risk management program; such transfers require committee approval under statute. The transcript does not show additional programmatic detail or an implementation schedule.
Next steps: The committee approved the transfer during the meeting; the transcript does not record subsequent administrative steps for fund movement or timeline for expenditures.
