ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: ED DPA 10-0-0-0 | APPROP DP 12-1-0-0 | 3rd Read 49-9-2-0

Senate: ED DP 8-0-0-0 | APPROP DPA 10-0-0-0 | 3rd Read 27-1-2-0

Final Pass: 43-6-11-0 | 24-2-4-0

HB 2017: STEM funding; appropriation

NOW: community colleges; expenditure limitation

Sponsor: Representative Kaiser, LD 15

Transmitted to the Governor

Overview

Outlines the amounts of state aid that are to be withheld from a community college district (CCD) that exceeds its expenditure limitation in FY 2023.

History

The state Constitution directs the Economic Estimates Commission to annually determine the expenditure limitation for each CCD. This amount is determined by adjusting FY 1980 local revenue expenditures to reflect changes in the CCD's student population and the cost of living. A CCD governing board may not authorize local revenue expenditures in excess of the expenditure limitation unless authorized to do so by law (Ariz. const. art. IX, sec. 21). Statute details the amount of state aid to be withheld from a CCD that exceeds its expenditure limitation as follows:

1)   An amount equal to the excess expenditures if the excess expenditures are less than 5% of the limitation;

2)   An amount equal to triple the excess expenditures if the excess expenditures are 5% or more but less than 10% of the limitation, or are less than 5% of the limitation but it is at least the second consecutive instance of excess expenditures; and

3)   An amount equal to five times the excess expenditures or 1/3 of the CCD's state aid allocation, whichever is less, if the excess expenditures are 10% or greater of the limitation (A.R.S. § 41-1279.07).

The Legislature must determine and appropriate state aid to eligible CCDs each fiscal year. The amount of state aid is adjusted to reflect changes in student enrollment (A.R.S. § 15-1466).

Provisions☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

1.   Replaces the state aid amounts prescribed by statute that are to be withheld from a CCD that exceeds its expenditure limitation in FY 2023 with the following amounts:

a)   $5,000 if the excess expenditures are less than 5% of the limitation;

b)   $15,000 if the excess expenditures are 5% or more but less than 10% of the limitation;

c)   $20,000 if the excess expenditures are 10% or more but less than 12% of the limitation; and

d)   The lesser of an amount equal to five times the excess expenditures or 1/3 of the CCD's state aid allocation if the excess expenditures are 12% or more of the limitation. (Sec. 1)

2.   Limits, to 1% of its budget, the maximum state aid amount to be withheld from a provisional CCD established before December 31, 2015, that is in a county with a population of not more than 300,000 and that exceeds its expenditure limitation in FY 2023 by 12%. (Sec. 1)

3.   Contains a retroactivity clause of July 1, 2021. (Sec. 2)

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7.                     HB 2017

8.   Initials CH Page 0 Transmitted

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