AZ SB1551

Investment earnings from Arizona's Budget Stabilization Fund (rainy day fund) would be redirected from the Budget Stabilization Fund to the Statewide Infrastructure Trust Fund for transportation projects.

The Statewide Infrastructure Trust Fund would gain a new funding source consisting of investment earnings from the Budget Stabilization Fund, in addition to legislative appropriations and non-federal gifts/grants.

Transportation projects eligible for funding include construction of new federal or state highways and improvements to existing federal or state highways.

The Budget Stabilization Fund's cap remains at 10% of state general fund revenue, with surplus monies above that threshold continuing to transfer to the state general fund.

The change affects only investment earnings, not the principal balance of the Budget Stabilization Fund, which remains available for economic downturns and emergency wildfire claims up to $20 million.