Assigned to APPROP &                                                                                                                    AS ENACTED

 

 

 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

 

ENACTED

 

AMENDED

FACT SHEET FOR S.B. 1527/H.B. 2662

 

higher education; budget reconciliation; 2018-2019

 

Purpose

 

Makes statutory and session law changes relating to higher education necessary to implement the FY 2019 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.

 

S.B. 1527 contains the budget reconciliation provisions for changes relating to higher education.

 

Provisions

 

University Cost Containment Report

 

1.      Modifies reporting requirements for historical data on tuition and fees by:

a)      requiring tuition and fee levels for the previous fiscal year, FY 1999, FY 2004, FY 2009 and FY 2014 be included in the report, rather than data for each of the last 20 years;

b)      removing the requirement that the purpose of increases since at least 2009 be included in the report;

c)      specifying that only mandatory fees must be included in the report;

d)      removing auxiliary fees;

e)      removing percentage increases in tuition and fee levels; and

f)       specifying that housing and meal plan fees be considered on an average, on-campus basis at a university's largest campus.

 

2.      Specifies that the growth and cost of faculty and administration should be measured by way of accounting for the number of full time employees and total employee salaries, differentiated between faculty, classified staff, and administrators, for the previous fiscal year, FY 1999, FY 2004, FY 2009 and FY 2014.

 

3.      Requires the report to include the credit hours required for the 10 baccalaureate degrees that experienced the highest increase in credit hours required between the 2003-2004 academic year and the previous academic year, as well as between the previous two academic years.

 

4.      Requires the report to include detailed information on nontraditional or lower-cost degree options being offered or developed by the university.

 

5.      Removes the following required provisions from the report:

a)      the return on investment for diverting tuition dollars to noninstructional purposes; and

b)      the ability to reduce unnecessary coursework for educational programs.

 

6.      Requires that each cost containment report be submitted by September 1 of each year, rather than July 1.

 

Community College District Tax Levy

 

7.      Allows a community college district to submit a proposed primary property tax increase for voter approval if the initial levy was established at least 20, but not more than 35, years prior.

 

8.      Caps the proposed levy increase at two times the otherwise authorized levy for the same year.

 

9.      Requires the additional tax levy, upon voter approval, to be implemented over a three-year period in one-third increments.

 

10.  Stipulates that if voters disapprove a tax levy, a district is prohibited from resubmitting another proposed tax levy for at least two years.

 

Foster Care Tuition Waiver

 

11.  Continues, retroactive to July 1, 2018, the tuition waiver scholarship for persons in foster care with all existing eligibility requirements.

 

Miscellaneous

 

12.  Continues, for FY 2019, to allow the Legislature to appropriate less than a two-to-one match to student registration surcharges deposited in the Financial Aid Trust Fund.

 

13.  Funds community college district science, technical, engineering, and mathematics programs and workforce programs for FY 2019 as specified in the General Appropriations Act.

 

14.  Funds community college district operating expenses for FY 2019 as specified in the General Appropriations Act.

 

15.  Prohibits a community college under the jurisdiction of a community college district board from offering a course that requires a student to be a member of a labor organization, trade organization, trade guild or industry apprenticeship program as a prerequisite to the course.

 

16.  Clarifies that the Arizona Teacher Academy is established for years beyond the 2017-2018 academic year.

 

17.  Makes technical and conforming changes.

 

18.  Becomes effective on the general effective date, with a retroactive provision as noted.

 

Amendments Adopted by Committee of the Whole

 

1.      Removes the requirement that universities issue reports for projects that occur on non‑university owned land.

 

2.      Removes the requirement that university Capital Improvement Plan lease reports include leases involving university component units.

 

3.      Prohibits a community college from offering a course that requires a student to be a member of a union as a prerequisite.

 

4.      Specifies that the tuition waiver for foster children continues with all existing provisions.

 

5.      Makes technical and conforming changes.

 

Senate Action                                                             House Action

 

APPROP         5/1/18     DP     6-4-0                          APPROP         5/1/18     DP     7-4-0-3

3rd Read          5/3/18               17-12-1                       3rd Read          5/1/18               33-26-1

(S.B. 1528 was substituted for H.B. 2660 on 3rd Read.)

 

Signed by the Governor 5/3/18

Chapter 282

 

Prepared by Senate Research

May 7, 2018

ZD/lb