State SealARIZONA HOUSE OF REPRESENTATIVES


 

HB 2662: higher education; budget reconciliation; 2018-2019.

PRIME SPONSOR: Representative Mesnard, LD 17

BILL STATUS: Caucus & COW

                APPROP: DP 7-4-0-3

Legend:
ABOR – Arizona Board of Regents
DCS – Department of Child Safety
FTE – Full-Time Equivalent
JCCR – Joint Committee on Capital Review
JLBC – Joint Legislative Budget Committee
STEM – Science, Technology, Engineering and Mathematics
Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRelating to higher education and the FY 2019 Budget.

Provisions

University Cost Containment Report (Sec. 1)

1.       Changes the date for ABOR to submit the annual University Cost Containment Report for each university from July 1 to September 1.

2.       Modifies the information that must be included in the report as follows:

a.       Limits historical data on fees to mandatory fees instead of all fees;

b.       Removes requirement that historical data include percentage increases and what they were used for at each university since 2009;

c.        Stipulates that housing and meal plan fees are the average on-campus fees at each university's largest campus;

d.       Requires data from the previous FY and specified FYs instead of data from the past 20 years;

e.       Adds the number of FTEs and total salaries of university employees, differentiated between faculty, classified staff and administrators at each university during the previous FY and specified FYs;

f.         Adds the number of credit hours required for a baccalaureate degree for the previous academic year and the 2004 academic year for the 10 degree programs with the largest increase in required credit hours between the 2004 and 2018 academic years and between the two previous academic years; and

g.       Expands required information regarding nontraditional and lower-cost programs to include degree options that each university offers, has recently developed or is pursuing.

3.       Removes the requirements that the following be included in the report:

a.       Growth and cost of faculty and administration at each university;

b.       Return on investment for diverting tuition dollars to non-instructional purposes; and

c.        Ability to reduce unnecessary coursework for educational programs.

University Commercial Projects

4.       Expands the requirement that ABOR report commercial projects to JCCR to include projects developed on land not owned by ABOR or a public university if a university or its component unit derives financial benefit as a party to a lease agreement or contract related to the development or use of the project. (Sec. 4)

5.       Outlines information that must be included in a report on commercial projects. (Sec. 4)

6.       Instructs public universities to report all property leases in effect in which a university or its component unit is a party, and outlines information the report must contain. (Sec. 6)

7.       Defines project. (Sec. 3, 4)

Foster Care Tuition Waiver Scholarship Program (Sec. 5)

8.       Continues the Foster Care Tuition Waiver Scholarship Program with the following changes:

a.       Requires a tuition waiver scholarship recipient to be or have been in foster care in Arizona for a cumulative period of 6 or more months;

b.       Reduces the minimum age an eligible recipient was in foster care from 16 to 13 years old;

c.        Raises the maximum age of an eligible recipient from 23 to 26 years old;

d.       Removes the requirement that a recipient have completed 30 hours of volunteer service during the previous academic year, after the first academic year of receiving the waiver;

e.       Removes the requirements that a recipient be enrolled in a degree, certificate or other accredited program and demonstrate continuous progress toward a degree or certificate to remain eligible for a tuition waiver scholarship;

f.         Permits, rather than requires, a community college to reduce a tuition waiver scholarship by the amount of federal aid scholarships, public grants and other public aid received by that person, excluding federal grants received from DCS under the Arizona Education and Training Voucher Program; and

g.       Prohibits a university from reducing a tuition waiver scholarship by the amount of any other federal aid scholarships, public grants or other public aid received by that person.

9.       Contains a retroactive effective date of July 1, 2018 for the Foster Care Tuition Waiver Scholarship Program. (Sec. 11)

·         The Foster Care Tuition Waiver Pilot Program will sunset on July 1, 2018 (A.R.S. § 15-1809).

Community College Districts

10.   Continues to suspend the funding formulas for Operating State Aid and STEM & Workforce Programs in FY 2019, and stipulates that the funding for each is as specified in the General Appropriations Act. (Sec. 9, 10)

11.   Permits a community college district to resubmit a proposed primary tax levy amount to the voters between 20 and 35 years after the initial tax levy amount was approved.

a.       Limits the proposed levy amount to two-times the otherwise authorized amount. (Sec. 7)

12.   Prohibits a community college district whose proposal was disapproved by the voters from resubmitting a proposed primary tax levy amount until at least two years after the proposal was disapproved. (Sec. 7)

13.   Stipulates that, if the proposal is approved by the voters, the difference between the prior and new levy amounts must be phased in over the three tax years following the approval. (Sec. 7)

Miscellaneous

14.   Extends the Arizona Teacher Academy beyond the 2018 academic year. (Sec. 2)

15.   Asserts that the annual Capital Improvement Plan reports must include information about ongoing or recently completed land acquisitions and capital projects of an agency's component units, in addition to acquisitions and projects of an agency. (Sec. 6)

16.   Continues to suspend the requirement that the Legislature provide 2:1 matching funds to student registration fees deposited into the Arizona Financial Aid Trust in FY 2019. (Sec. 8)

17.   Makes technical and conforming changes. (Sec. 1, 3, 4, 6, 7)

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21.   Fifty-third Legislature                          HB 2662

22.   Second Regular Session                       Version 2: Caucus & COW

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