This law sets how much money each state agency, university and program may spend in the 2026-2027 fiscal year, adjusts some earlier years' budgets, delays part of state aid to larger school districts until July 2027, and cuts some agency operating budgets.
Official title: general appropriations act; 2026-2027.
- September 12, 2026
- On or before June 30, 2026: Transfers from listed special funds to the state general fund for fiscal year 2025-2026
- July 31, 2026: Reductions to appropriations from fiscal years 2019-2020 through 2024-2025
- January 1, 2027: New salaries for supreme court justices and court of appeals and superior court judges
- No later than July 12, 2027: Payment of the deferred school district state aid
What changes
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NowState agencies, courts, universities and programs are given specific spending amounts and staff position limits for fiscal year 2026-2027, along with reporting rules and limits on how some money may be used.
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NowThe department of education must hold back $800,727,700 of state aid that would otherwise go to school districts in 2026-2027 and pay it after June 30, 2027 but no later than July 12, 2027. This does not apply to charter schools or to districts with fewer than 4,000 students.
BeforeState corrections officers and state youth correctional officers received a onetime stipend equal to 4% of salary in 2025-2026.
NowCorrections budgets include money to turn that stipend into a 4% annual salary increase in 2026-2027. The corrections department must also raise private prison contract rates enough for a 4% raise for each correctional officer at private prisons that contract with the state.
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NowAs of January 1, 2027, yearly pay is set at $242,000 for the chief justice, $235,000 for other supreme court justices, $220,000 for court of appeals judges and $210,000 for superior court judges.
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NowOperating budgets paid from the state general fund are reduced for 40 budget units, including the legislature, the governor's office and the state universities (for example, $8,096,000 for Arizona State University). Several special funds also move money into the state general fund, and some 2025-2026 budgets get extra money, such as $4,000,000 to the secretary of state for 2026 election costs.
Who it affects
- State employees, including corrections and youth correctional officers
- Correctional officers at private prisons that contract with the state
- Judges and justices
- School districts with 4,000 or more students
- Students and staff at state universities
- State agencies, boards and commissions
- Counties, cities and towns receiving state distributions
- Local law enforcement agencies
What you need to do
Nothing.
What the law doesn't answer
- How the agency budget cuts will affect specific public services
- Why the school aid payment is being delayed
- What the earlier salaries for judges and justices were
- Whether the law takes effect immediately or only on the general effective date, given that some dates fall before it
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.