ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
students; community college grants
Purpose
Establishes the Arizona Works Community College Grants Pilot Program (Program) for students enrolled in career and technical education (CTE) programs at community colleges. Establishes the Arizona Works Community College Grant Fund (Fund) and appropriates $5,000,000 from the state General Fund in each of FYs 2020 through 2022.
Background
Career and technical education and vocational education (CTE and vocational education) is statutorily defined as vocational and technical preparation programs for pupils in 9th through 12th grades (A.R.S. § 15-781). School districts provide entry-level CTE and vocational education, while career technical education districts provide CTE programs to prepare students for advanced CTE or the workforce.
Statute assigns primary responsibility for postsecondary technical education and advanced CTE and vocational education to community college district governing boards (district boards). District boards and the State Board for Private Postsecondary Education are charged with providing CTE and vocational education that focuses on Arizona's economic development (A.R.S. § 15-790).
S.B. 1191 appropriates $5,000,000 from the state General Fund to the Fund in each of FYs 2020 through 2022.
Provisions
Grants
1. Requires, beginning August 1, 2019, that district boards administer Arizona Works Community College Grants (Grants) for the tuition and mandatory fees of students enrolled in community college CTE programs in that district.
2. Establishes Grant eligibility requirements that require a student to:
a) be an Arizona resident;
b) complete a Free Application for Federal Student Aid (FAFSA);
c) enroll in a CTE program or program that leads to an industry or vocational certification at an Arizona community college;
d) be a dependent student who reports a parental federal adjusted gross income of no more than $55,000 on a FAFSA, or an independent student who reports a family adjusted gross income of no more than $55,000 on a FAFSA; and
e) have a grade point average of at least 2.5 on a 4.0 scale.
3. Limits a student's Grant eligibility to two consecutive academic years and establishes that a student is eligible to renew the Grant for a second year if the student:
a) completes at least 30 hours of volunteer service in the previous academic year; and
b) maintains a grade point average of at least 2.5 on a 4.0 scale.
4. Limits the Grant amount to the cost of that community college's tuition and mandatory fees after all financial aid, including aid from a federal Pell Grant, is credited to the student's tuition and mandatory fees.
Grant Funding
5. Establishes the Fund to consist of legislative appropriations and requires the State Treasurer to administer the Fund and distribute Fund monies to Arizona community colleges.
6. Appropriates $5,000,000 from the state General Fund to the State Treasurer for deposit to the Fund in each of FYs 2020 through 2024.
7. Requires Grants to be funded using Fund monies and requires, if fiscal year Fund monies are insufficient to pay tuition and fees for each eligible student in a fiscal year, that monies from the Fund be prorated.
8. Specifies that Fund monies are subject to legislative appropriation.
Miscellaneous
9. Requires Arizona community colleges to annually report to the Governor, the President of the Senate, the Speaker of the House of Representatives and the Auditor General (OAG) the:
a) number of Grant applicants and Grant recipients;
b) average Grant amount;
c) academic completion rate of Grant recipients;
d) job placement rate of Grant recipients who complete CTE programs or courses; and
e) number of recipients who obtain certification.
10. Requires the OAG to perform a special audit evaluating the Grants' effect on student CTE completion, certification, job placement and other measures the OAG deems appropriate, and submit a report, by October 15, 2025, to the Governor, the President of the Senate and the Speaker of the House of Representatives, and provide a copy of the report to the Secretary of State.
11. Requires district boards to cooperate with and provide to the OAG all necessary information and data in a format prescribed by the OAG to perform the special audit.
12. Repeals the Grants and the Fund on July 1, 2023.
13. Becomes effective on the general effective date, retroactive to August 1, 2019.
Amendments Adopted by the Higher Education & Workforce Development Committee
1. Adds information to the community colleges reporting requirements.
2. Changes the OAG annual review to a special audit that must be completed by October 25, 2025.
Amendments Adopted by the Appropriations Committee
1. Decreases, from $10,000,000 to $5,000,000, the yearly appropriation from the state General Fund to the Fund.
2. Shortens the length of the Program from five years to three years.
3. Specifies that the Program is a pilot program.
4. Changes the repeal date from July 1, 2026, to July 1, 2023.
5. Makes technical changes.
Senate Action
HEWD 2/4/19 DPA 7-0-0
APPROP 2/12/19 DPA 9-0-0
Prepared by Senate Research
February 13, 2019
JO/LB/gs