26 Solutions for Restoring Transplant Funding

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1.) Use a portion of the settlement with AIG announced 12/22/10 - $2,143,829
            Arizona will receive this amount as part of a 50-state settlement with AIG.

• The $150 million settlement occurred 12/17/10 and became public 12/22/10.
• Arizona’s share of this settlement is $2,143,829.
• The full settlement is available by clicking here.
• Arizona has not yet budgeted, allocated or received this money.
• Massachusetts will place the funds in their state’s General Fund, AZ can too.

 2.) Use a portion of unclaimed lottery player prize winnings – $6 million annually
            At least $8.5 million in AZ lottery prize winnings go unclaimed every year.

• 30% currently goes to the Court Appointed Special Advocate (CASA) fund.
• 70% goes back to the AZ lottery prize fund for additional jackpots (per AZ statutes).
• That 70% amounts to approximately $6 million every year – enough to restore transplant funding and address additional state needs at the Governor’s/Legislature’s discretion.

 3.) Use a portion of savings from recently cancelled “squirrel bridge” – $1.25 million
            Arizona planned to spend $1.25 million to save 250 squirrels, but won’t for 98 humans.

• 6/17/10 ABC News, “Arizona Spends $1.25 Million to Save 250 Squirrels – Rope Bridges Expected to Save 5 Squirrels a Year From Being Road Kill”
• Cancelled the next day, after becoming a focus of national ridicule.
• AZ still has these funds available for human roads at their discretion.
• Offset state funding of ADOT by $1.25 million and use for transplants.

4.) Proposition 100 - $918 million FY 2011, $968 million 2012 & $1.06 billion 2013   
            Use a fraction of the $918 million in new FY 2011 tax revenue generated via Proposition 100, a 3-year, 1-cent sales tax hike approved by voters on 5/18/10.

• $306 million of that must “be spent on health and human services and public safety” in FY 2011.
• Transplant funding requires less than 1% of these additional revenues.
• Politicians begged citizens for more tax money.  Citizens obliged.
• Where has all the money gone?  What are all the other priorities the state feels necessary to address with the extra money instead of transplants?

 5.) Unexpected Medicare December physician payment increase - $? million    
            Medicare physician pay was scheduled to be cut 23% beginning on December 1, 2010.

• “Physician Payment and Therapy Relief Act of 2010” became law 11/30/10.
• Physicians will instead receive a 2.2% increase during December.
• Some of that extra 2.2% will go to state-run facilities, like AZ State Hosp.
• No one has been able to provide an exact # yet of how much this generates.

6.) Use a portion of State Hospital Land Trust Funds or Profits - $5.147 million   
            The Arizona State Hospital Land Trust Fund has a net value of $5.147 million according to the 10/28/10 State Treasurer Board of Investment Report (most recent one available).

• $1.343 million of that represents unrealized gain (profit) during this year.
• §          Fund net value was $5,016,262.47 in July.
• Use a portion of fund balance or profits to restore transplant funding.

 7.) Charge Federal Gov. for land leased from AZ State Hospital Land Trust - $?   
             The United States Government leases over 100 acres (surface and subsurface) from the Arizona State Hospital Land Trust without paying for doing so.

8.) Lease Cell Towers on State Hospital Land Trust land – $1.3 million annually   
            The Arizona State Hospital Land Trust holds 71,248 acres of land.

• Cell phone tower land lease rates range from $500 – $10,000 monthly.
• Most lease rates fall between $1,300 – $2,300 monthly.
• 1,000 leases x $1,300 month = $1.3 million annually.

9.) Participate in or increase participation in the U.S. General Services Administration (GSA) Federal Surplus Donation Program - $? million  
            "Since January 1, 2009, the program has resulted in approximately $39 million in taxpayer savings through reutilized federal surplus equipment by 1,827 Illinois organizations.”  –  11/23/10 press release by Governor Pat Quinn

 10.) Use 1% of Arizona’s unclaimed-property fund proceeds - $100 million      
            According to the 11/15/10 Arizona Department of Revenue 2010 Annual Report, the Unclaimed Property division collected $161,637,025 Gross Revenue in FY 2009-2010.

• Net revenue to the state General Fund was $100,034,835 FY 2009-2010.
• Roughly 1% of unclaimed property funds would restore transplant funding.

11.) Fund the Department of Racing at 2009 levels – $1.6 million  
            The Arizona Department of Racing functioned perfectly well in 2009.

• They received $2,241,600 in FY 2009 General Fund appropriations. 
• They will receive $3,863,600 in FY 2011 General Fund appropriations. 
• Funding the Department of Racing at FY 2009 levels saves $1,622,000. 

 12.) Goldwater Institute Idea: Make Dept. of Racing fee-funded – $3.9 million    
            As the conservative, Arizona-based Goldwater Institute recommends, “The department should be entirely fee-funded and all General Fund support should be eliminated.”

• The Arizona Department of Racing will receive $3,863,600 in FY 2011 General Fund appropriations.  
• The Arizona Department of Racing will receive $3,880,500 in total FY 2011 appropriations. 

 13.) Deposit Treasurer’s non-performing cash assets into safe savings or money-market account between investments - $? million   
            The Arizona Treasurer manages nearly $9.7 billion in 21 investment pools.

• Hundreds of millions can rest in cash between investments.
• Example: Investment Pool 7 held $152,201,450.09 in cash as of the July 2010 statement.
• Investment pool cash balances can fluctuate greatly.
• Deposit this cash to safely generate interest, rather than letting it rest idly.
• Use the interest to restore transplant funding.

14.) Process unclaimed property claims within 1 week of claim - $5 million annually  
            Deposit unclaimed property proceeds into the bank for 1 week after property is claimed.

• Gross revenue collected by the Unclaimed Property division was $161,637,025 FY 2009-2010.
• Net revenue to the state General Fund was $100,034,835 FY 2009-2010.
• Individual files unclaimed property claim.  Funds deposited into savings.
• Money generates interest % while in the bank for at least 1 week.
• Interest % provides funding for organ transplants and state programs.

15.) Lottery prize savings account - more than $6 million annually 
            Deposit lottery drawing prize money into a savings account immediately after drawing.

•  Prize money generates interest rather than sitting idly until winner claims.
• This account grows over time, accumulating interest % and unclaimed prizes.
•  Interest % accrual provides funding for state programs.

16.) Award lottery prizes 1 week later (rather than immediately) - $3 million annually 
            Deposit prize money in the bank for 1 week after a prize is claimed.

• Arizona lottery paid over $333 million in FY 2010 player prize money.
• Prize money generates interest % while in the bank for at least 1 week.
• Interest % provides funding for state programs.

17.) Arizona State Univ. out-of-state travel appropriations – $2.82 million annually

ASU made an $84.8 million profit FY 2010.  Net assets (after liabilities) increased from $952,000,000 FY 2009 to $1,036,800,000 FY 2010. 

 Even so, ASU will receive $2,822,000 from the State for out-of-state travel in FY 2011.

o         That’s 20 times more for out-of-state travel than any other state university.

    §             University of Arizona will receive $143,200.

    §          Northern Arizona University will receive $0.

o         That’s 13 times more than any other Arizona state agency will receive.

    §          The Arizona Dept. of Revenue comes closest, receiving $222,500.

o         That’s 51 times more than Governor’s office out-of-state travel FY 2010.

o         That’s more than the entire $2.68 million ASU athletic team travel budget.

    §          This season, among other trips, ASU athletic teams visit: Tokyo, the Bahamas, Hawaii (4 times), Anchorage, New Orleans & Miami.

o         Transplants merit tax dollars before one profitable school’s out-of-state athletic team travel.

18.) University of Arizona new hotel at 2nd research park - $4.7 million

U of A made a $92.4 million profit FY 2010.  Net assets (after liabilities) increased from $881,177,000 FY 2009 to $973,603,000 FY 2010. 

 The Univ. of Arizona is now using $4.7 million of stimulus funding to build a hotel and conference center at “a second research park for the university specially focused on accommodating the needs of biotech companies”.  Partially offsetting their FY 2011 General Fund Appropriation of taxpayer dollars by less than 1% restores transplant funds.

19.) University libraries pay for 8% of their new acquisitions - $1.5 million
            U of A and ASU will receive $18,620,800.00 for “Library Acquisitions” in FY 2011.

• Northern Arizona University will receive $0.0 from the State.
• U of A & ASU paying 8% of their own library acquisitions = $1.5 million.
• U of A made a $92.4 million profit FY 2010.    
• ASU made an $84.8 million profit FY 2010.

20.) Universities pay for 10% of their own food - $1.45 million 
            U of A and ASU will receive $14,533,400.00 for “Food” in FY 2011.

• Northern Arizona University will receive $0 from the State.
• This is not food for students.
•  U of A & ASU paying 10% of their own food = $1.45 million.

21.) Equalize food funding at all universities - $15 million 
            U of A and ASU will receive $14,533,400.00 for “Food” in FY 2011.

• Northern Arizona University will receive $0 from the State.
• This is not food for students.
• U of A & ASU paying for their own food = $1.45 million.
• U of A made a $92.4 million profit FY 2010.
• ASU made an $84.8 million profit FY 2010.

22.) Goldwater Institute Idea: Accept Dept. of Insurance Self-Funding - $5.5 million

            As the Goldwater Institute recommends, “Accept the Department of Insurance’s proposal to become a self-funded agency.  Limit the agency’s functions to certification of financial soundness of insurance companies and investigation and prosecution of fraud.”

• The Dept. of Insurance will receive $5,468,800 in FY 2011 General Fund appropriations. 
• The Dept. of Insurance will receive $12,734,500 in total FY 2011 funding.

 23.) Goldwater Institute Idea: Transfer Residential Utility Consumer Office functions to Arizona Corporation Commission - $1.3 million
            As the Goldwater Institute puts it, “This office should be eliminated and all required functions moved to the Arizona Corporation Commission, as that agency’s members are elected to represent taxpayers.”

• The Residential Utility Consumer Office will receive $1,287,100 in FY 2011 appropriations.

24.) Goldwater Institute Idea: Make State Real Estate Dept. fee-funded – $3 million
            As the Goldwater Institute recommends, “The department should be entirely fee-funded and all General Fund support should be eliminated.”

•  The Arizona State Real Estate Department will receive $2,987,300 in FY 2011 General Fund appropriations.  
•  The Arizona State Real Estate Department will receive $3,042,300 in total FY 2011 appropriations.

25.) Charge state prisoners a $25 processing fee - $1 million
            According to a Federal Bureau of Justice Statistics report released 12/21/10, Arizona had 40,627 prisoners under the jurisdiction of state or federal correctional authorities in 2009.

• 40,627 prisoners x $25 = $1,015,675  
• Revenue may vary slightly, depending on the exact number of state inmates.
• Arizona Department of Corrections website does not provide the exact number of state inmates. 
• Federal statistics provide only the combined number of prisoners under state or federal authority in each state.

26.) Sell bonds secured by a portion of future tobacco settlement payments - $1 billion
            Illinois sale of tobacco bonds in November 2010 raised $1.5 billion.  Demand was stronger than anticipated.

•   New Jersey raised $3.6 billion doing so in January 2007.
•  Virginia raised $1.1 billion doing so in April 2007.
• Ohio raised $5.5 billion doing so in October 2007.