Bill Text: AZ SB1849 | 2026 | Fifty-seventh Legislature 2nd Regular | Engrossed

Arizona Senate Bill 1849

Bill Title: Capital outlay; appropriations; 2026-2027.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced) 2026-06-11 - Senate Committee of the Whole action: Do Pass [SB1849 Detail]

Download: Arizona-2026-SB1849-Engrossed.html

Senate Engrossed

capital outlay; appropriations; 2026-2027.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1849

AN ACT

amending laws 2021, chapter 406, section 33, as amended by laws 2022, chapter 33, section 1 and Laws 2023, chapter 135, section 1; amending laws 2022, chapter 309, section 8, as amended by Laws 2023, chapter 135, section 3 and Laws 2025, chapter 235, section 1; Amending laws 2023, chapter 135, section 8; Amending Laws 2023, chapter 135, section 10, as amended by Laws 2024, chapter 211, section 1 and Laws 2025, Chapter 235, section 2; amending laws 2024, chapter 211, section 6; Amending laws 2024, Chapter 211, section 9, as amended by laws 2025, chapter 235, section 3; Amending Laws 2024, chapter 211, section 22; Amending laws 2024, chapter 211, section 29; amending laws 2025, chapter 235, sections 8 and 9; Making capital outlay appropriations for the different departments of the state and for state institutions; providing for review of capital outlay projects.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Laws 2021, chapter 406, section 33, as amended by Laws 2022, chapter 33, section 1 and Laws 2023, chapter 135, section 1, is amended to read:

Sec. 33. Appropriations; department of transportation; highway construction; fiscal year 2020-2021; exemption; lapsing; report

A. The following amounts are appropriated from the state general fund in fiscal year 2020-2021 to the department of transportation for the following highway projects:

1. Repave State Route 69 in

Prescott Valley�� $ 4,700,000 $ 4,583,800

2. Repave State Route 95 in

Mohave county�� $46,700,000 $44,965,700

3. Study options for expanding the on and

off ramps at the intersection of

Grand Avenue and State Route 303�� $ 150,000

4. Construct an overpass at Riggs Road

and State Route 347�� $25,000,000

5. Study an overpass at Riggs Road and

Design, right-of-way acquisition,

utility RELOCATION, natural resource

recovery and construction for an

Overpass at RigGs Road and

to improve State Route 347�� $ 2,500,000

6. Final design plan, right-of-way and

easements for an overpass at

Riggs Road and Design, right-of-way

acquisition, utility RELOCATION,

natural resource recovery and

construction for an

Overpass at RiGgs Road and

to improve State Route 347�� $ 7,500,000

7. Study the north/south corridor in��

Pinal county�� $ 4,000,000

8. Improve drainage on 67th Avenue

in Peoria�� $ 8,500,000

9. Widen Camelback Road between State

Route 303 and Litchfield Road

in Goodyear�� $ 8,000,000

10. Study and design concept report for

the repair of State Route 88�� $ 700,000

11. Repair and maintain 20th Avenue in

Safford�� $ 1,032,100

12. Improve Tangerine Road near

Interstate 10 in Marana�� $ 5,000,000

13. Construct a bridge and extend

� Ocotillo Road in Gilbert�� $ 7,900,000

14. Repair State Route 186 and State

Business Route 10 in Wilcox�� $ 3,500,000 $3,406,900

15. Replace Butte Avenue bridge in

Florence�� $ 1,000,000

16. Improve Center Avenue in Jerome�� $ 560,000

17. Rehabilitate pavement along

State Route 77 near Oro Valley�� $15,807,500

18. Improve State Route 90 near

Fort Huachuca�� $10,600,000

19. Improve State Route 87 � local match�� $ 750,000

20. Study guardrail � shoulder of

State Route 377 from Holbrook to Heber�� $ 140,000

21. Improve Hill Street Corridor in Globe�� $ 1,169,400

B. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriations made in subsection A of this section are not subject to review by the joint committee on capital review.

C. The appropriations made in subsection A of this section do not lapse until the purpose for which the appropriations were made has been accomplished or abandoned, or the appropriations stand for a full fiscal year without an expenditure or encumbrance.

D. Before transferring monies between the projects described in subsection A of this section, the department shall submit a report for review by the joint committee on capital review.

Sec. 2. Laws 2022, chapter 309, section 8, as amended by Laws 2023, chapter 135, section 3 and Laws 2025, chapter 235, section 1, is amended to read:

Sec. 8. Appropriations; department of transportation; highway construction; intent; reports; exemption; lapsing

A. The following amounts are appropriated from the state highway fund established by section 28-6991, Arizona Revised Statutes, in fiscal year 2022-2023 to the department of transportation for the following highway projects:

1. Design and construct additional vehicle

lanes, separated by a lighted median,

on Interstate 10 between State Route 85

and Citrus Road�� $60,910,000

The legislature intends that:

(a) Not more than one hundred twenty days after the effective date of this section, the city of Buckeye contribute $3,000,000 to the project described in this paragraph.

(b) The Maricopa association of governments collect and contribute at least $10,000,000 from sources other than this state for the project described in this paragraph.

(c) The department use any federal discretionary monies awarded for the project described in this paragraph before spending the monies appropriated in this paragraph.

2. Improve Jackrabbit Trail between

Thomas Road and McDowell Road�� $20,080,000

The legislature intends that the city of Buckeye contribute $5,020,000 to the project described in this paragraph.

3. Acquire right-of-way to extend State

Route 24�� $15,000,000

4. Rehabilitate pavement along United States

Route 60 between Loop 101

and Loop 202�� $38,482,000

5. Study the construction of an emergency

evacuation bridge in Lake Havasu City�� $ 200,000

6. Construct roundabout at intersection of

State Route 69 and State Route 169�� $ 8,022,500

7. Study and design traffic interchange on

State Route 74 at Lake Pleasant Parkway�� $ 5,000,000

8. Assess intersection of State Route 79 and

Hunt Highway�� $ 100,000

9. Assess intersection of State Route 87

and Skousen Road�� $ 100,000

10. Design traffic interchange on State

Route 89 at State Route 89A�� $ 600,000

11. Rehabilitate pavement along State Route 90

between Campus Drive and the U.S. Border

Patrol Station in Huachuca City�� $38,620,000

12. Rehabilitate pavement along United States

Route 191 between Mile Post 163 and

Mile Post 173�� $22,152,000 $16,239,900

13. Design and construct a screen wall along

Loop 101 between 51st Avenue and

59th Avenue�� $ 9,514,000

14. Rehabilitate pavement along United States

Route 191 between Armory Road and

East Safford�� $16,481,000 $14,865,500

15. Design to improve State Route 238 between

State Route 347 and Green Road�� $ 800,000

16. Design work for State Route 303

Improvements from Interstate 17

to Lake Pleasant Parkway�� $ 4,000,000

17. Design work for the interchange at

State Route 303 and Interstate 17�� $19,000,000

18. Design, to widen lanes along right-of-way

acquisition, utility relation, natural

resource recovery and construction to

improve State Route 347, including

improving the intersection on state route

347 at casa blanca road and cement

plant access, and to construct an

overpass at Riggs Road and State

Route 347 between Interstate 10

and city of Maricopa�� $19,000,000

19. Assess intersection on State

Route 389 at Arizona Avenue�� $ 100,000

20. Distribute to the northern Arizona

intergovernmental public

transportation authority for

capital costs of the Flagstaff

downtown connection center�� $ 6,000,000

21. Install lighting on the Sentinel exit

in Gila Bend�� $ 1,085,000 $762,500

22. Conduct a tier 2 study for the

North-South Corridor in Pinal county�� $15,000,000

23. Conduct a tier 2 study for the Sonoran

Corridor in Pima county�� $14,000,000

24. Conduct a tier 2 study for Interstate 11

in Maricopa county�� $25,000,000

25. Design and construct a screen wall

along the east side of Loop 101

near 16th Street�� $ 7,250,000 $ 6,365,000

B. Within thirty days after the last day of each calendar quarter, the department shall report to the joint legislative budget committee staff the projected cost and status of the projects for the appropriations made in subsection A of this section. The report shall include any impacts to the projects due to the increase in the cost of concrete.

C. Before transferring monies between the projects described in subsection A of this section, the department shall submit a report for review by the joint committee on capital review.

D. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriations made in subsection A of this section are not subject to review by the joint committee on capital review.

E. The appropriations made in subsection A of this section do not lapse until the purpose for which the appropriations were made has been accomplished or abandoned, or the appropriations stand for a full fiscal year without an expenditure or encumbrance.

Sec. 3. Laws 2023, chapter 135, section 8 is amended to read:

Sec. 8. Appropriations; state agency and administrative board capital projects

A. The amounts appropriated in this section are appropriated for fiscal year 2023-2024 to be used by the applicable agency or board for individual capital projects.

B. DEPARTMENT OF ADMINISTRATION

Electric vehicle charging and advance

�� fuel infrastructure�� $ 5,000,000

Fund source:

State general fund�� $ 5,000,000

C. STATE DEPARTMENT OF CORRECTIONS

1. Replace evaporative cooling statewide

with HVAC�� $ 66,783,600

2. Statewide door, lock and fire systems

replacement�� $ 48,650,600

Fund source:

State general fund�� $115,434,200

D. DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS

Additional construction monies for

Surprise readiness center�� $ 1,125,000

Fund source:

State general fund�� $ 1,125,000

E. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital improvements�� $ 3,802,100

Fund source:

Arizona exposition and state fair fund�� $ 3,802,100

F. ARIZONA GAME AND FISH DEPARTMENT

1. Dam maintenance�� $ 150,000

2. Hatchery maintenance�� $ 400,000

3. Property maintenance�� $ 300,000

4. Water conservation projects�� $ 500,000

Fund sources:

Capital improvement fund�� $ 850,000

Game and fish fund�� $ 500,000

G. DEPARTMENT OF HEALTH SERVICES

1. State hospital water pump replacements �� $ 209,000

2. State hospital water isolation valves�� $ 200,000

Fund source:

Arizona state hospital fund�� $ 409,000

H. ARIZONA STATE PARKS BOARD

1. Capital improvements�� $ 3,034,400

2. Verde River state park�� $ 7,000,000

Fund sources:

State general fund�� $ 7,000,000

State parks revenue fund�� $ 3,034,400

The Arizona state parks board shall establish a state park at the headwaters of the Verde River.

The Arizona state parks board shall report to the joint committee on capital review and the governor's office of strategic planning and budgeting if the board revises the plan for any project for which monies are appropriated by this subsection because the board receives land and water conservation grant funding.

I. ARIZONA PIONEERS' HOME

1. Capital improvements�� $ 468,700

2. Cemetery columbarium�� $ 75,000

3. Cemetery parking�� $ 250,000

Fund source:

Miners' hospital for miners with

disabilities land fund�� $ 793,700

J. DEPARTMENT OF PUBLIC SAFETY

Renovate Flagstaff aviation hangar�� $ 320,000

Fund source:

State general fund�� $ 320,000

K. DEPARTMENT OF TRANSPORTATION

1. Construct new maintenance facility in

�� Keams Canyon�� $ 3,400,000

2. Replace vehicle fueling facilities in

�� Springerville, Holbrook and Chambers�� $ 2,600,000

3. Electric vehicle charging and advance

�� fuel infrastructure at department

�� facilities open and accessible to the

�� public, excluding rest areas�� $ 2,500,000

4. Electric vehicle charging and advance

�� fuel infrastructure at department

�� fleet facilities�� $ 5,000,000

5. 4. Renovate motor vehicle division in

�� north Tucson�� $� 4,100,000

6. 5. Water conservation projects�� $� 2,500,000

7. 6. Planning of passenger rail

�� service from Phoenix to

�� Tucson�� $� 3,500,000

Fund sources:

State general fund�� $ 3,500,000

State highway fund�� $ 20,100,000

Sec. 4. Laws 2023, chapter 135, section 10, as amended by Laws 2024, chapter 211, section 1 and Laws 2025, chapter 235, section 2, is amended to read:

Sec. 10. Appropriations; department of transportation; highway projects; exemption

A. The following amounts are appropriated from the state general fund in fiscal year 2023-2024 to the department of transportation for the following highway projects:

1. Improve the interchange at State Route

�� 303 and U.S. Route 60�� $ 4,500,000

2. Distribute to the town of Clarkdale to

�� replace the current bridge over

�� Bitter Creek wash�� $ 6,321,400

3. Improve intersection on State Route 347

�� at Casa Blanca Road and Cement

�� Plant access

Design, right-of-way acquisition,

�� utility relocation, natural resource

�� recovery and construction to improve

�� state route 347, including improving the

�� intersection on state route 347 at casa

�� blanca road and cement plant access,

�� and to construct an overpass at riggs road

�� and state route 347 �� $18,000,000

4. Distribute to the city of Phoenix for

�� improvements on Happy Valley Road

�� between 35th Avenue and 67th Avenue�� $12,500,000

The legislature intends that the city of Phoenix contribute $14,800,000 to the project described in this paragraph.

5. Distribute to the town of Prescott Valley

�� to improve Glassford Hill Road�� $ 9,900,000

The department of transportation may distribute the monies appropriated in this paragraph only if the town of Prescott Valley demonstrates to the department that the town has a commitment for at least $1,100,000 in matching monies of gifts, grants and donations for improvements to Glassford Hill Road from sources other than this state.

6. Distribute to the city of Coolidge for

�� Coolidge Avenue reconstruction between

�� Christensen Road and Clemans Road�� $ 5,300,000

7. Distribute to the city of Eloy for Sunland

�� Gin Road Interstate 10 overpass and road

�� improvements between Interstate 10 and

�� Arica Road�� $ 5,000,000

8. Distribute to the town of Marana for��

�� design costs for traffic interchange

�� between Interstate 10 and Cortaro Road�� $10,000,000

9. Distribute to the city of Douglas for road

�� development and construction connecting

the Douglas international commercial

�� port of entry and State Route 80�� $ 8,170,000

10. Distribute to the town of Patagonia for

�� McKeown Avenue reconstruction between

�� Fourth Avenue West and State Route 82�� $ 1,500,000

11. Distribute to the city of Sierra Vista for ��

�� Theater Drive corridor improvements

�� between 7th Street and Carmichael

�� Avenue�� $ 1,800,000

12. Distribute to Graham county for

�� intersection reconstruction at Norton

�� Road and Reay Lane�� $ 500,000

13. Distribute to Cochise county for

�� Moson Road drainage and safety

�� improvements between State Route 90

�� and Hereford Road�� $ 6,100,000

14. Improve U.S. Route 95 between Wellton

�� Mohawk Canal Road and Aberdeen Road�� $33,300,000

15. Distribute to Yuma county for

�� U.S. Route 95 pavement

�� rehabilitation between County

�� 22nd Street and County 11th Street�� $ 5,910,400

16. Design work and engineer improvements on

�� State Route 85 between mile post 123

�� and Maricopa Road�� $ 6,500,000

17. Construct turn lanes along State Route 95

�� near Bullhead City�� $ 8,000,000

18. Construct an emergency evacuation bridge

�� in Lake Havasu City�� $35,500,000

19. Distribute to the town of Queen Creek

�� to extend State Route 24 including a

�� traffic interchange at State Route 24

�� and Ironwood Road�� $59,800,000

Monies distributed to the town of Queen Creek for the project in this paragraph are eligible to be used for all necessary expenses from the current project status until completion. The town of Queen Creek must collaborate with Pinal county before spending the monies distributed for the project pursuant to this paragraph.

20. Improve State Route 83 within

�� Santa Cruz county�� $ 9,000,000

21. Distribute to the town of Cave Creek to

�� study the construction of expanding

�� lanes along Cave Creek Road between

�� Loop 101 and Carefree Highway�� $ 250,000

22. Design a freeway interchange on

�� Interstate 10 at Jackrabbit Trail�� $ 5,000,000

23. Distribute to the city of Phoenix to

�� extend 43rd Avenue between Dove

�� Valley Road and State Route 74�� $ 6,500,000

24. Design of State Route 87 intersection

�� improvements at Arica Road and

�� Shedd Road�� $ 700,000

25. Distribute to the town of Huachuca City

�� for Skyline Drive reconstruction

�� between State Route 90 and

�� Huachuca City Landfill�� $ 1,565,200

26. Distribute to the town of Huachuca City

�� for Skyline Pathway development along

�� Skyline Drive between Gila Avenue

�� and Edgewood Street �� $ 506,000

27. Distribute to the town of Pinetop-Lakeside

�� for Porter Mountain Road improvements

�� in the vicinity of Blue Ridge

�� elementary school�� $ 2,242,200

28. Distribute to the city of Globe for

�� sidewalk construction along Jesse Hayes

�� Road and Six Shooter Canyon Road�� $ 3,501,100

29. Distribute to the city of Globe for

�� Jesse Hayes Road bridge replacement

�� and improvements at Pinal Creek�� $ 643,200

30. Distribute to the city of Globe for

�� Cottonwood Street bridge replacement

�� and improvements at Pinal Creek�� $ 632,500

31. Distribute to Gila county for

�� Houston Mesa Road improvements

�� between State Route 260 and .4 miles

�� south of Forest Road 198�� $ 243,600

32. Distribute to the Canyon Water improvement

�� district to make improvements to

�� infrastructure, including fire hydrants

�� and other related water needs�� $ 610,000

33. Distribute to Graham county for

�� Safford Bryce Road improvements in

�� the vicinity of Talley Wash Crossing�� $ 1,781,500

34. Distribute to the town of Thatcher for

�� 8th Street improvements between

�� 1st Avenue and 20th Avenue�� $ 4,526,400

35. Repave U.S. Route 60 between Morristown

�� and Wickenburg�� $10,500,000

36. Distribute to the town of Winkelman for

�� improvements to Golf Course Road and

�� Quarelli Street�� $ 1,560,900

37. Distribute to the town of Superior for

�� Panther Drive bridge design and

�� construction at Queen Creek�� $ 2,486,700

38. Improve State Route 260 within

�� Navajo county�� $ 4,250,000

39. Distribute to the Navajo Nation for

�� Improvements to N9402 Road near

�� Lupton and Houck�� $10,000,000

40. Distribute to Apache county for

�� State Route 264 turn lane construction

�� into the Ganado senior citizens center

�� and veterans building development area�� $ 538,700

41. Distribute to the city of Tucson for

�� improvements to the Drexel Road

�� bridge�� $15,000,000

42. Distribute to Santa Cruz county for

�� improvements to traffic interchange

�� at Interstate 19 and Rio Rico Drive

�� and traffic interchange at

�� Interstate 19 and Ruby Road�� $ 8,600,000

B. Within thirty days after the last day of each calendar quarter, the department of transportation shall report to the joint legislative budget committee staff the projected cost and status of the projects for the appropriations made in subsection A of this section.

C. Before transferring monies between the projects described in subsection A of this section, the department of transportation shall submit a report for review by the joint committee on capital review.

D. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriations made in subsection A of this section are not subject to review by the joint committee on capital review.

Sec. 5. Laws 2024, chapter 211, section 6 is amended to read:

Sec. 6. Appropriation reduction; fiscal year 2021-2022; appropriation; fiscal year 2028-2029; department of veterans' services; veterans' home facility; site selection; review; exemption

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2021-2022 by Laws 2021, chapter 406, section 29 for the following project:

B. DEPARTMENT OF VETERANS' SERVICES

Veterans' home facility �� $(25,000,000)

Fund source:

State general fund�� $(25,000,000)

C. The sum of $25,000,000 is appropriated from the state general fund in fiscal year 2027-2028 2028-2029 to the department of veterans' services to construct and establish a veterans' home facility in the northwestern portion of this state.

D. The appropriation made in subsection C of this section is intended to be this state's share of the costs and is not subject to expenditure for any purpose unless the department of veterans' services has irrevocable commitments from the United States government to fund at least sixty-five percent of the total costs.

E. The department shall submit the proposed site location in the northwestern portion of this state to the Arizona veterans' service advisory commission established by section 41-602, Arizona Revised Statutes, for approval. The department shall provide the commission a feasibility analysis of suitable sites to consider when approving the site location.

F. Before spending the appropriation made in subsection C of this section, the department of veterans' services shall submit the scope, purpose and estimated cost of the capital improvements to the joint committee on capital review for its review pursuant to section 41-1252, Arizona Revised Statutes.

G. The appropriation made in subsection C of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 6. Laws 2024, chapter 211, section 9, as amended by Laws 2025, chapter 235, section 3, is amended to read:

Sec. 9. Appropriation reductions; appropriation; department of transportation; Riggs Road overpass; fiscal years 2020-2021, 2022-2023 and 2027-2028; fund balance transfer; intent

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2020-2021 by Laws 2021, chapter 406, section 33, as amended by Laws 2022, chapter 33, section 1 and Laws 2023, chapter 135, section 1, for the following project:

B. DEPARTMENT OF TRANSPORTATION

Construct an overpass at Riggs Road��

and State Route 347�� $(25,000,000)

Fund sources:

State general fund�� $(25,000,000)

C. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2022-2023 by Laws 2022, chapter 309, section 12, as amended by Laws 2023, chapter 135, section 5, for the following project:

D. DEPARTMENT OF TRANSPORTATION

Construct an overpass at Riggs Road��

and State Route 347�� $(24,000,000)

Fund sources:

State highway fund�� $(24,000,000)

E. Notwithstanding any other law, on or before June 30, 2024, $24,000,000 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

F. The sum of $41,400,000 is appropriated from the state general fund in fiscal year 2025-2026 to the department of transportation for design, right-of-way acquisition, utility relocation, natural resource recovery and construction of an overpass at riggs road and State Route 347.

G. The sum of $49,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the department of transportation to construct for design, right-of-way acquisition, utility relocation, natural resource recovery and construction of an overpass at Riggs Road and State Route 347. Consistent with this advance appropriation, the legislature intends that the overpass at Riggs Road and State Route 347 the appropriation made in this subsection be funded in fiscal year 2027-2028.

Sec. 7. Laws 2024, chapter 211, section 22 is amended to read:

Sec. 22. Supplemental appropriation; department of transportation; Riggs Road overpass; fiscal year 2023-2024

A. In addition to the appropriation made by Laws 2021, chapter 406, section 33, the following amounts are appropriated to the following state agency in fiscal year 2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Final design plan, right-of-way and

easements for an overpass at�

Riggs Road and State Route 347

Design, right-of-way ACQUISITION, utility

relocation, natural resource recovery

and construction for an overpass at

Riggs road and state route 347�� $ 1,500,000

Fund sources:

State highway fund�� $ 1,500,000

Sec. 8. Laws 2024, chapter 211, section 29 is amended to read:

Sec. 29. Supplemental appropriation; department of transportation; State Route 347; fiscal year 2023-2024

A. In addition to the appropriation made by Laws 2023, chapter 135, section 10, the following amounts are appropriated to the following state agency in fiscal year 2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Improve intersection on State Route 347

at Casa Blanca Road and Cement

Plant access

Design, right-of-way acquisition, utility

relocation, natural resource recovery

And construction to improve state route 347,

including improving the intersection on

state route 347 at casa blanca road and

cement plant access, and to construct

an overpass at riggs road

and state route 347�� $ 1,901,000

Fund sources:

State general fund�� $ 1,901,000

Sec. 9. Laws 2025, chapter 235, section 8 is amended to read:

Sec. 8. Appropriations; state agencies and boards; capital projects

A. The amounts appropriated in this section are appropriated for fiscal year 2025-2026 to be used by the applicable agency or board for individual capital projects.

B. STATE DEPARTMENT OF CORRECTIONS

Replace fire, life alarm and suppression

system at the Yuma state prison�� $ 8,500,000

Fund source:

State general fund�� $ 8,500,000

C. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital improvements�� $ 3,815,100

Fund source:

Arizona exposition and state fair fund�� $ 3,815,100

D. ARIZONA GAME AND FISH DEPARTMENT

1. Dam maintenance�� $ 150,000

2. Hatchery maintenance�� $ 400,000

3. Property maintenance�� $ 300,000

4. Dam repairs at Black Canyon Lake

and Fool Hollow Lake�� $ 6,850,000

5. Hatchery repairs�� $ 4,700,000

Fund sources:

Capital improvement fund�� $ 850,000

Game and fish fund�� $ 11,550,000

E. DEPARTMENT OF HEALTH SERVICES

1. State hospital isolation valve installation�� $ 160,000

2. State hospital anti-ligature renovations�� $ 695,000

3. State hospital perimeter detection

system replacement�� $ 83,000

Fund source:

Arizona state hospital land fund�� $ 938,000

F. DEPARTMENT OF JUVENILE CORRECTIONS

1. Fire line booster pumps replacement�� $ 536,600

2. School door and lock replacements at

Adobe Mountain school�� $ 303,000

3. School kitchen air unit replacements at

Adobe Mountain school�� $ 641,000

Fund sources:

Criminal justice enhancement fund�� $ 1,361,900

Department of juvenile corrections

local cost sharing fund�� $ 118,700

G. ARIZONA STATE PARKS BOARD

1. Capital improvements�� $ 3,633,300

2. Verde River state park construction�� $ 500,000

Fund sources:

State general fund�� $ 500,000

State parks revenue fund�� $ 3,633,300

H. ARIZONA PIONEERS' HOME

1. Capital improvements�� $ 470,400

2. Facility window and door replacements�� $ 1,515,000

Fund source:

Miners' hospital for miners with

disabilities land fund�� $ 1,985,400

I. DEPARTMENT OF PUBLIC SAFETY

1. Replace office buildings in

Payson and Sanders�� $ 2,000,000

2. Upgrade electrical system at the department

headquarters in Phoenix�� $ 11,227,100

Fund source:

State general fund�� $ 13,227,100

J. DEPARTMENT OF TRANSPORTATION

1. Improvements to vehicle repair shop

in Avondale�� $ 6,951,000

2. Construct new maintenance offices in

Little Antelope and Gray Mountain�� $ 6,861,000

3. Renovate Grand Canyon airport terminal�� $ 850,300

Fund sources:

State highway fund�� $ 13,812,000

State aviation fund�� $ 850,300

The monies appropriated to the department of transportation to renovate the Grand Canyon airport terminal revert to the state aviation fund established by section 28-8202, Arizona Revised Statutes, on June 30, 2026 2028 if the department does not receive a federal aviation administration grant for the project.

K. DEPARTMENT OF VETERANS' SERVICES

Replace HVAC at the Tucson veterans' home�� $ 2,400,000

Fund source:

State general fund�� $ 2,400,000

The monies appropriated to the department of veterans' services to replace the HVAC at the Tucson veterans' home revert to the state general fund on June 30, 2026 2027 if the department is not awarded a federal grant for the project. The department may apply for federal grant monies for the HVAC replacement project prior to review by the joint committee on capital review.

Sec. 10. Laws 2025, chapter 235, section 9 is amended to read:

Sec. 9. Appropriations; department of transportation; highway projects

A. The following amounts are appropriated from the state general fund in fiscal year 2025-2026 to the department of transportation for the following highway projects:

1. Improve intersection on State Route 347

at Casa Blanca Road and Cement

Plant Access Road

Design, right-of-way acquisition,

utility relocation, natural resource

recovery and construction to

improve state route 347, including

improving the intersection on state route

347 at casa Blanca road and cement plant

access, and to construct an overpass at

riggs road and state route 347�� $ 10,839,000

2. Design to widen lanes along State

Route 347 between Interstate 10

and the city of Maricopa

Design, right-of-way acquisition,

utility relocation, natural resource

recovery and construction to

improve state route 347, including

improving the intersection on state route

347 at casa Blanca road and cement plant

access, and to construct an overpass at

riggs road and state route 347�� $ 1,500,000

3. Design an additional right-hand

turn lane on northbound State Route

87 and State Route 260 near Payson�� $ 2,129,800

4. Distribute to the city of Flagstaff to

design and construct a traffic light

signal at the intersection of Woody

Mountain Road and US Route 66�� $ 1,900,000

The department of transportation shall submit an intergovernmental agreement to the city of Flagstaff to design and construct a traffic light signal at the intersection of Woody Mountain Road and US Route 66 on or before September 15, 2025. If the city of Flagstaff agrees to the intergovernmental agreement, the monies appropriated in this paragraph to design and construct a traffic light signal at the intersection of Woody Mountain Road and US Route 66 shall be distributed to the city of Flagstaff on or before November 1, 2025.

5. Construct safety improvements along

State Route 70 from mile post 255 to

mile post 301 near San Carlos Apache

reservation�� $ 1,400,000

6. Distribute to the city of Bullhead City for

Hancock Road improvements�� $ 1,500,000

The department of transportation shall submit an intergovernmental agreement to the city of Bullhead City for Hancock Road improvements on or before September 15, 2025. If the city of Bullhead City agrees to the intergovernmental agreement, the monies appropriated in this paragraph for Hancock Road improvements shall be distributed to the city of Bullhead City on or before November 1, 2025.

7. Distribute to Mohave county for Mountain

View Road improvements�� $ 1,000,000

The department of transportation shall submit an intergovernmental agreement to Mohave county for Mountain View Road improvements on or before September 15, 2025. If Mohave county agrees to the intergovernmental agreement, the monies appropriated in this paragraph for Mountain View Road improvements shall be distributed to Mohave county on or before November 1, 2025.

8. Distribute to the Prescott regional airport

for infrastructure supporting firefighting

aircraft�� $ 3,500,000

The department of transportation shall submit an intergovernmental agreement to the Prescott regional airport for infrastructure supporting firefighting aircraft on or before September 15, 2025. If the Prescott regional airport agrees to the intergovernmental agreement, the monies appropriated in this paragraph for infrastructure supporting firefighting aircraft shall be distributed to the Prescott regional airport on or before November 1, 2025.

9. Distribute to the Prescott regional airport

for maintenance and operations�� $ 500,000

The department of transportation shall submit an intergovernmental agreement to the Prescott regional airport for maintenance and operations on or before September 15, 2025. If the Prescott regional airport agrees to the intergovernmental agreement, the monies appropriated in this paragraph for maintenance and operations shall be distributed to the Prescott regional airport on or before November 1, 2025.

10. Distribute to Yuma county for bridge

replacement project on Somerton Avenue

between West County 10th Street and

West County 11th Street�� $ 1,300,000

The department of transportation shall submit an intergovernmental agreement to Yuma county for the bridge replacement project on Somerton Avenue between West County 10th Street and West County 11th Street on or before September 15, 2025. If Yuma county agrees to the intergovernmental agreement, the monies appropriated in this paragraph for the bridge replacement project on Somerton Avenue between West County 10th Street and West County 11th Street shall be distributed to Yuma county on or before November 1, 2025.

11. Install traffic control systems along

State Route 389 near Colorado City�� $ 1,500,000

12. Distribute to the city of Kingman for

Eastern Street infrastructure improvements�� $ 1,500,000

The department of transportation shall submit an intergovernmental agreement to the city of Kingman for the Eastern Street infrastructure improvements project on or before September 15, 2025. If the city of Kingman agrees to the intergovernmental agreement, the monies appropriated in this paragraph for the Eastern Street infrastructure improvements project shall be distributed to the city of Kingman on or before November 1, 2025.

13. Distribute to the city of Nogales for

improvements to Frank Reed Road�� $ 1,500,000

The department of transportation shall submit an intergovernmental agreement to the city of Nogales for improvements to Frank Reed Road on or before September 15, 2025. If the city of Nogales agrees to the intergovernmental agreement, the monies appropriated in this paragraph for improvements to Frank Reed Road shall be distributed to the city of Nogales on or before November 1, 2025.

14. Distribute to the city of Nogales for

improvements to Industrial Park Road�� $ 2,900,000

The department of transportation shall submit an intergovernmental agreement to the city of Nogales for improvements to Industrial Park Road on or before September 15, 2025. If the city of Nogales agrees to the intergovernmental agreement, the monies appropriated in this paragraph for improvements to Industrial Park Road shall be distributed to the city of Nogales on or before November 1, 2025.

15. Distribute to the city of Nogales for

Improvements to La Quinta Road�� $ 1,800,000

The department of transportation shall submit an intergovernmental agreement to the city of Nogales for improvements to La Quinta Road on or before September 15, 2025. If the city of Nogales agrees to the intergovernmental agreement, the monies appropriated in this paragraph for improvements to La Quinta Road shall be distributed to the city of Nogales on or before November 1, 2025.

16. Distribute to the city of Cottonwood for

Main Street preservation and sidewalk

Improvements�� $ 1,000,000

The department of transportation shall submit an intergovernmental agreement to the city of Cottonwood for Main Street preservation and sidewalk improvements on or before September 15, 2025. If the city of Cottonwood agrees to the intergovernmental agreement, the monies appropriated in this paragraph shall be distributed to the city of Cottonwood on or before November 1, 2025.

17. Distribute to the city of Glendale for

the 75th Avenue reconstruction project�� $ 3,000,000

The department of transportation shall submit an intergovernmental agreement to the city of Glendale for the 75th Avenue reconstruction project on or before September 15, 2025. If the city of Glendale agrees to the intergovernmental agreement, the monies appropriated in this paragraph shall be distributed to the city of Glendale on or before November 1, 2025.

18. Design traffic interchange and connecting

arterial roadways at State Route 303

and 155th Avenue�� $ 3,500,000

The legislature intends that a local government or council of government entity contribute $900,000 in matching monies to the project described in this paragraph. The department may not expend any monies appropriated in this paragraph until the department can confirm the matching commitment to the project.

19. Design the repaving of Olga Frontage Road

between mile post 366 and mile post 379�� $ 850,000

Building Renewal

Sec. 11. Capital outlay appropriations; major maintenance and repair of state buildings

A. Notwithstanding section 41-793.01, Arizona Revised Statutes, the amounts appropriated in this section are appropriated for fiscal year 2026-2027 to be used by the applicable agency for major maintenance and repair activities for state buildings in accordance with title 41, chapter 4, article 7, Arizona Revised Statutes.

B. DEPARTMENT OF ADMINISTRATION�� $15,154,000

Fund sources:

State general fund�� $10,000,000

Capital outlay stabilization fund�� $ 4,600,000

Arizona state hospital land fund�� $ 554,000

The department of administration shall allocate the monies to state agencies for necessary building renewal. If monies in the capital outlay stabilization fund established by section 41-792.01, Arizona Revised Statutes, are insufficient to fund the appropriation to the department of administration for building renewal, the appropriation to the department of administration is reduced by the difference between the amount appropriated to the department of administration from the capital outlay stabilization fund and the balance in the capital outlay stabilization fund.� Notwithstanding title 41, chapter 4, article 7, Arizona Revised Statutes, the department of administration may use monies appropriated for building renewal in fiscal year 2026-2027 for building projects related to retrofitting facilities for space consolidation initiatives.

C. STATE DEPARTMENT OF CORRECTIONS�� $ 15,652,200

Fund source:

Department of corrections building

renewal fund�� $ 15,652,200

The state department of corrections may not spend any of this appropriation on personal services or overhead expenses related to managing the funded projects.

Notwithstanding section 41-797, Arizona Revised Statutes, the state department of corrections may spend not more than $4,570,000 of the appropriation made in this subsection to construct new facilities to address capital needs as required by the court in the Jensen v. Thornell inmate health care litigation.

D. ARIZONA GAME AND FISH DEPARTMENT�� $ 1,932,900

Fund source:

Game and fish fund�� $ 1,932,900

E. ARIZONA STATE LOTTERY COMMISSION�� $ 100,000

Fund source:

State lottery fund�� $ 100,000

F. DEPARTMENT OF TRANSPORTATION�� $ 24,574,100

Fund sources:

State highway fund�� $ 24,158,500

State aviation fund�� $ 415,600

Individual Projects

Sec. 12. Appropriations; state agencies and boards; capital projects

A. The amounts appropriated in this section are appropriated for fiscal year 2026-2027 to be used by the applicable agency or board for individual capital projects.

B. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital improvements�� $ 3,905,900

Fund source:

Arizona exposition and state fair fund�� $ 3,905,900

C. ARIZONA GAME AND FISH DEPARTMENT

1. Dam maintenance�� $ 150,000

2. Hatchery maintenance�� $ 400,000

3. Hatchery repairs�� $ 11,000,000

Fund sources:

Capital improvement fund�� $ 550,000

Game and fish fund�� $ 11,000,000

D. ARIZONA STATE PARKS BOARD

1. Capital improvements�� $ 3,552,200

2. Develop monitoring plan and install markers

at Tonto Natural Bridge state park�� $ 200,000

Fund source:

State parks revenue fund�� $ 3,752,200

E. ARIZONA PIONEERS' HOME

Capital improvements�� $ 482,000

Fund source:

Miners' hospital for miners with

disabilities land fund�� $ 482,000

F. DEPARTMENT OF TRANSPORTATION

1. Construct new materials lab in Kingman�� $ 5,038,000

2. Replace vehicle fueling facilities in

Payson, Phoenix and Mesa�� $ 4,944,000

3. Design the renovation of the traffic signal

and lighting warehouse in Phoenix�� $ 611,000

Fund source:

State highway fund�� $ 10,593,000

Department of Transportation Statewide Highway Construction

Sec. 13. Appropriation; department of transportation; statewide highway construction; reports; exemption

A. The amount appropriated in this section is appropriated for fiscal year 2026-2027 to plan and construct state highways, including the national system of interstate highways within this state, the state primary or secondary system, the county primary or secondary system and urban rural routes, to acquire rights-of-way and to provide for the costs of contracted field administration and field engineering on construction projects and debt service payments on bonds issued for highway construction.

B. DEPARTMENT OF TRANSPORTATION�� $432,663,000

Fund source:

State highway fund�� $432,663,000

Any balances and collections in the state highway fund established by section 28-6991, Arizona Revised Statutes, that exceed the specific amounts appropriated in the general appropriations act and in this act are appropriated to the department of transportation for the purposes provided in this section.

C. On or before November 1, 2026, the department of transportation shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on its actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources, including appropriated monies, federal monies, local agency monies, state highway monies, bond proceeds and regional area road monies. The report shall be in the same format as in the prior year unless the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting have approved modifications to the format.

D. On or before November 1, 2026, the department of transportation shall report capital outlay information for fiscal years 2025-2026, 2026-2027 and 2027-2028 to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting. This information must appear in the same format as tables two, three and seven, as found in the fiscal year 2025-2026 appropriations report.

E. On or before November 1, 2026, the department of transportation shall report the department's estimated outstanding debt principal balance at the end of fiscal year 2027-2028 and the estimated debt service payment amount for each of fiscal years 2027-2028, 2028-2029, 2029-2030 and 2030-2031 to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting. This report must include state highway fund statewide construction bonds, Arizona highway user revenue fund bonds, Maricopa association of governments and Pima association of governments controlled access bonds, Maricopa regional area road fund bonds and grant anticipation notes and is intended to be comparable to the information in the fiscal year 2025-2026 appropriations report.

F. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriation made in this section is not subject to review by the joint committee on capital review.

Department of Transportation Airport Planning and Development

Sec. 14. Appropriation; department of transportation; airport planning and development; report; exemption

A. The amount appropriated in this section is appropriated in fiscal year 2026-2027 to plan, construct, develop and improve state, county, city or town airports as determined by the state transportation board.

B. DEPARTMENT OF TRANSPORTATION�� $ 29,048,900

Fund source:

State aviation fund�� $ 29,048,900

Any balances and collections in the state aviation fund established by section 28-8202, Arizona Revised Statutes, that exceed the specific amounts appropriated in the general appropriations act and in this act are appropriated to the department of transportation in fiscal year 2026-2027 for the purposes provided in this section.

C. On or before December 31, 2026, the department of transportation shall report to the joint legislative budget committee staff on the status of all aviation grant awards and aviation grant distributions.� The report must delineate projects by individual airport and fiscal year, including any future year commitments.

D. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriation made in this section is not subject to review by the joint committee on capital review.

Department of Transportation Appropriation Reductions

Sec. 15. Appropriation reduction; department of transportation; fiscal year 2022-2023

Notwithstanding any other law, $(1,052,600) is reduced from appropriations made from the state general fund to the department of transportation for U.S. Route 89 in fiscal year 2022-2023 by Laws 2022, chapter 309, section 9, as amended by Laws 2023, chapter 135, section 4.

Sec. 16. Appropriation reduction; department of transportation; fiscal year 2022-2023

Notwithstanding any other law, the following amounts are reduced from appropriations made from the state highway fund to the department of transportation in fiscal year 2022-2023 by Laws 2022, chapter 309, section 12, as amended by Laws 2023, chapter 135, section 5:

1. Repave State Route 69 in Prescott Valley�� $ (1,819,000)

2. Repave State Route 95 in Mohave county�� $ (6,052,200)

3. Repair State Route 186 and State Business

Route 10 in Willcox�� $ (765,600)

Sec. 17. Fund balance transfer; state highway fund; fiscal year 2026-2027

A. Notwithstanding any other law, from and after July 1, 2026 and on or before June 30, 2027, $17,371,900 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for the agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

B. The amount transferred in subsection A of this section consists of appropriation reductions made in sections 2 and 16 of this act.

Sec. 18. Department of transportation; U.S. Route 191 pavement rehabilitation; transfer

A. On or before June 30, 2026, $2,500,000 is transferred from the state highway fund established by section 28-6991, Arizona Revised Statutes, to the state general fund for the support and maintenance of agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

B. The amount transferred in subsection A of this section reflects the reduction of $2,500,000 made by Laws 2022, chapter 309, section 8, as amended by Laws 2023, chapter 135, section 3 and Laws 2025, chapter 235, section 1, from the state highway project to rehabilitate pavement along U.S. Route 191 between Armory Road and East Safford

Sec. 19. Department of transportation; Interstate 10; exemption

The appropriations made in Laws 2025, chapter 235, section 4 to the department of transportation for design and construction of additional vehicle lanes, separated by a lighted median, on Interstate 10 between State Route 85 and Citrus Road is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 20. Use of appropriations

A. The department of administration may spend up to five percent of the amounts appropriated to the department in this act, excluding amounts to be distributed to nonstate agencies, for expenditures for project management of building renewal and capital projects. All other monies appropriated to the department in this act may not be spent for personal services or employee-related expenditures or for maintenance contracts on building components and equipment without review by the joint committee on capital review.

B. Except as provided in subsection A of this section, the monies appropriated in this act may not be spent for personal services or employee-related expenditures of state employees, excluding any services provided as part of the inmate construction program for correctional facilities.