Budget and interrelation with CAFR

As detailed in the Arizona State GAO Management Discussion and Analysis (MD&A), the 2007 CAFR provides the required supplemental information, including budget comparison schedules for the general fund and each major special income fund, plus of a reconciliation of statutory GAAP schedules and expenditures for the fiscal year. In addition, a budget expenditure comparison schedule is also provided for non-significant special income funds.

The size of the budget and its interrelation with the CAFR is that there is a very high relationship between the two. State agencies and departments find that they are given a certain amount of money to pay for their expenses during the year. Arizona State departments and agencies go to great lengths to stay within budget for the fiscal year. When they see that their financial needs will exceed their budget, they will go to the legislature and request supplemental funds. This revised budget, in most cases, is almost identical to the final expenses.

Differences between the original budget of $ 15.2 billion and the final amended budget of $ 16.9 billion resulted in a $ 1.7 billion increase in appropriations for the general fund, before adjustments. Some of the primary reasons for general fund appropriations include $ 251,162 million for prior fiscal year obligations, paid in the current fiscal year under ARS §35-191; $ 191,294 million for Basic State Aid from the Department of Education; $ 118.05 million to the Department of Education for full-day kindergarten funding; $ 191 million to the Department of Education to pay for the K-12 transfer carried over from the 2006 fiscal year allocation; $ 100 million to the Department of Education for the additional 2.4 percent above the minimum inflation factor; $ 215.2 million to the Department of Education for Basic State Aid because the county’s compensation assistance rate did not exceed eight cents; $ 20 million for the transfer from the Growing Smarter Parks Board to the Land Conservation Fund pursuant to ARS §41-511.23; $ 86,284 million to the School Facilities Board for the Building Renovation Fund; $ 62.066 million to the Department of Corrections primarily to increase salaries for correctional offices and engineering research programs and infrastructure to promote economic development throughout the state; and $ 50 million that was allocated in advance to the School Facilities Board by the Laws of 2005, Chapter 287, and not included in the Fiscal Year 2007 General Allocation Act.