This year’s budget and Legislative Session delivered many wins for DES, enabling us to continue our mission and expand our ability to serve Arizona’s most vulnerable. DES staff worked extremely hard throughout the Session to plan and prepare for its impacts on DES, and I am grateful for our staff’s dedication to ensuring the new fiscal year will deliver incredible outcomes for the communities we serve. Additionally, on behalf of DES, I would like to thank Governor Doug Ducey and members of the Arizona Legislature for their partnership and commitment to DES and Arizonans statewide.
As announced by Governor Doug Ducey earlier this month, the Governor and the Arizona Legislature deposited $759 million of the American Rescue Plan Act funding in the Unemployment Insurance (UI) Trust Fund to “further protect Arizona’s job creators from a tax increase while ensuring that resources are there for those who need them.” This deposit is in addition to the $62 million appropriated following the passage of the State Fiscal Year (SFY) 2022 budget, and restores the Trust Fund to pre-pandemic levels.
Over fifteen months ago, the COVID-19 pandemic took the world by storm and interrupted the employment of millions of hard-working Americans. Fortunately for our state, the Arizona UI Trust Fund balance was strong at the start of the pandemic and was able to support hundreds of thousands of Arizonans impacted by the pandemic. The Governor’s deposit, coupled with the funding authorized as part of the SFY 2022 budget, has now returned the Trust Fund to its full strength, preventing an automatic tax increase so Arizona’s job creators can continue their vital role in helping Arizona rebound from the impacts of the pandemic and help those still experiencing unemployment reenter the workforce.
The deposit into the UI Trust Fund is only one of several reasons to celebrate, now that the SFY 2022 budget has been signed by the Governor. DES staff worked hard throughout the Legislative Session to plan and prepare for the allocations our Department will receive to effectively utilize these funds. We are now well equipped to continue our mission to ensure the economic security of the millions of Arizonans who have come to DES for support. Here are a few additional highlights:
DES received over $22 million to support the Department’s services for the safety and comfort of older and vulnerable adults. This is an increase of approximately $12 million compared to SFY 2021, which will enable us to expand our existing services and establish the new Sexual Violence Services grant program following the passage of SB1824, for which $8 million has been allocated. In collaboration with the Arizona Coalition to End Sexual and Domestic Violence, DES will provide funding to eligible service providers for sexual violence survivors through this new program.
A total of $26.9 million has been allocated for the Health Care Investment Fund, which will be used to provide essential services for individuals with Intellectual and Developmental Disabilities and support increased reimbursement rates among service providers for the DES Division of Developmental Disabilities. Additionally, the SFY 2022 budget appropriates $30 million in funding for DDD to in-part support the increase in provider rate increases. This will help ensure our members receive critical care and assistance while the provider community receives more support for their operations.
The budget provides DES with $7.5 million to establish the Educational Incentives program created by Governor Ducey as a part of his Back to Work Program. Community College reimbursement scholarships will be available for individuals who are eligible for a Return-to-Work Bonus. Additional details about this program will be forthcoming.
With over $1 billion in federal child care funding, DES will be able to continue to support and strengthen the Arizona child care network. As our state’s economy continues to surge and individuals reenter the workforce, reliable and quality child care is integral to the ongoing growth of our economy by enabling parents to return to work, assured that their children are safe.
The funds also represent a considerable investment in early childhood development. Our children are our future, and the care, guidance and education they receive during their early years help set the stage for the ongoing prosperity within our communities and the success of the next generation.
Arizona also received approximately $14.5 million in federal Pandemic Emergency Assistance Funds that will be used to assist Arizonans in need by providing short-term, non-recurring benefits. More details will be forthcoming.
With the passage of the SFY 2022 budget, DES is empowered to propel our programs forward and provide additional assistance to Arizona families, forming a strong foundation upon which our economy can continue to grow. I hope you are as excited as I am to see what we can accomplish together over the next fiscal year.
Michael Wisehart
07/22/2021