FOR THIRD READ                                                                                                      AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

FACT SHEET FOR H.B. 2967

higher education; FY2026

Purpose

Makes session law changes relating to higher education necessary to implement the FY 2026 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

H.B. 2967 contains budget reconciliation provisions for changes relating to higher education.

Provisions

1. Continues, for FY 2026, to allow the required state match to be less than two dollars for each dollar raised by the surcharge on student registration fees pursuant to the Arizona Financial Aid Trust Fund.

2. Specifies that operating state aid for community college districts (CCDs) in FY 2026 is as prescribed in the FY 2026 General Appropriations Act.

3. Specifies that state aid for CCD science, technology, engineering and mathematics and workforce development programs in FY 2026 is as prescribed in the FY 2026 General Appropriations Act.

4. Becomes effective on the general effective date.

House Action

APPROP         6/24/25      DP          11-6-0-2

3^rd Read          6/24/25                     31-25-4

Prepared by Senate Research

June 25, 2025

MH/slp