HB 2707 Summary

• Establishes state general fund revenue and expenditure limits beginning in fiscal year 2012-2013, with the maximum allowable revenues based on the lesser of the prior year's allowable amount or actual revenues.

• Requires the Joint Legislative Budget Committee to determine and publish actual state general fund revenues and preliminary/final estimates of maximum allowable revenues before specified deadlines (February 1 and April 1).

• Adjusts the maximum allowable general fund revenues annually based on combined percentage changes in Arizona's population (using U.S. Census data) and inflation (using the metropolitan Phoenix consumer price index).

• Directs excess general fund revenues above the maximum allowable amount to be used in priority order: catastrophic disaster costs, debt service payments, budget stabilization fund, and tax refunds to individual income tax filers.

• Allows the legislature to adjust the appropriations limitation when governmental responsibilities are transferred between state, federal, tribal, or local governments, and when revenues are diverted to non-general fund accounts.