HB 2964 Arizona House · 57th Legislature - First Regular Session

capital outlay; appropriations; FY2026

HB 2964 is an appropriations bill allocating funds for Arizona's fiscal year 2026 capital projects. It reduces funding for specific state park projects (like Dead Horse Ranch amphitheater and water conservation) and redirects those funds back to the state parks revenue fund, while appropriating $19 million for state building maintenance, $5.86 million for prison renovations, and $458.77 million for highway construction. The bill also requires the Department of Transportation to submit detailed reports on highway spending and debt by November 2025. This bill was vetoed by the governor on June 25, 2025, and did not become law.

Bill status vetoed 4 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Jun 2025

House Passage

Jun 2025

Senate Passage

Jun 2025

Vetoed

Jun 2025

Introduced Jun 23, 2025 Vetoed Jun 25, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 7 edits · Jun 25, 2025

MODERATE

The bill was reformatted from an introduced version to a house engrossed version, with substantive additions to reporting requirements for the Department of Transportation. The most significant policy change is the addition of new reporting mandates requiring the Department of Transportation to submit detailed capital outlay information, debt service projections, and budget comparisons to the joint legislative budget committee and governor's office by November 1, 2025. The bill also clarifies that Department of Transportation highway construction appropriations are exempt from capital review committee oversight.

Scope change

The bill's scope expanded to include additional reporting requirements for the Department of Transportation, specifically requiring detailed financial reporting on highway construction expenses, debt obligations, and capital outlay information across multiple fiscal years.

REQUIREMENT

New Section 4C requires the Department of Transportation to report actual prior year, estimated current year, and upcoming budget year highway construction expenses from all fund sources by November 1, 2025.

New Section 4D requires the Department of Transportation to report capital outlay information for fiscal years 2024-2025, 2025-2026, and 2026-2027 by November 1, 2025.

New Section 4E requires the Department of Transportation to report estimated outstanding debt principal balance and debt service payment amounts through fiscal year 2029-2030 by November 1, 2025.

New Section 5C requires the Department of Transportation to report on the status of all aviation grant awards and distributions by December 31, 2025.

Section 4F was modified to explicitly state that the Department of Transportation statewide highway construction appropriation is not subject to review by the joint committee on capital review.

Section 6 was added to clarify that appropriated monies may not be spent for personal services or employee-related expenditures, with an exception for inmate construction programs in correctional facilities.

TECHNICAL

The bill underwent extensive formatting changes including reorganization of sections, addition of spacing, and conversion from line-numbered format to paragraph format, but these do not affect substantive policy.

Floor votes · House Jun 24, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 25, 2025

Vetoed

Vetoed by Governor

executive

Jun 25, 2025

Upper · Passed

PASSED

upper

Jun 24, 2025

Lower · Passed

PASSED

lower

Jun 24, 2025

Lower · Passed

lower

1 primary · 0 co-sponsors