Assigned to ATT                                                                                                                               AS VETOED

ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

VETOED

FACT SHEET FOR H.B. 4146/S.B. 1839

2026-2027; higher education.

Purpose

Makes session law changes relating to higher education necessary to implement the FY 2027 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. 4146 contains the budget reconciliation provisions for changes relating to higher education.

Provisions

1. Continues, for FY 2027, 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 2027 is as prescribed in the FY 2027 General Appropriations Act.

3. Specifies that state aid for CCD science, technology, engineering and mathematics and workforce development programs in FY 2027 is as prescribed in the FY 2027 General Appropriations Act.

4. Becomes effective on the general effective date.

Governor's Veto Message

The Governor indicates in her veto message that H.B. 4146, and this version of the FY 2027 state budget as a whole, would cause Arizona to default on its debt obligations, endanger vulnerable children, cut public safety funding and provide tax breaks for billionaires, data centers and special interests. The Governor outlines her specific concerns, including cuts to funding for specified agencies and programs, and invites the Legislature to return to the negotiating table.

House Action Senate Action

APPROP         4/28/26      DP       11-7-0-0             ATT                 4/28/26      DP              6-4-0                         

3^rd Read          4/29/26                  33-20-7               3^rd Read          5/4/26                            16-12-2

(H.B. 4146 was substituted for S.B. 1839 on 3^rd Read)

Vetoed by the Governor 5/5/26

Prepared by Senate Research

May 7, 2026

MH/SM/hk