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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
TPT; distribution; tribal college compact
Purpose
Requires the State Treasurer to transmit additional monies to Navajo Technical University in FY 2020 through FY 2026.
Background
The Joint Legislative Budget Committee (JLBC) Baseline includes $2,825,000 from the state General Fund in FY 2020 for tribal community colleges. This amount is unchanged from FY 2019 (JLBC Baseline).
The JLBC Baseline assumes a distribution of $2,625,000 to the Navajo Nation, comprised of $1,750,000 for Diné College and $875,000 for Navajo Technical College. For the Navajo Nation, the JLBC Baseline assumes the maximum amounts allowed under statute since a net of 15 percent of their current transaction tax privilege (TPT) revenues would exceed the statutory distribution limits as described below. The JLBC Baseline assumes $200,000 for the Tohono O'odham Community College in FY 2020 based on a projection of 10 percent of the collected TPT revenues from the Navajo Reservation.
This funding is limited to qualified Indian tribes that instituted a compact with the state before September 1, 2017, to receive a portion of TPT revenues for support of Indian tribe's postsecondary institutions. Current statute allows any qualifying tribal community college to receive $1,750,000, or 10 percent of the TPT revenues collected from all sources located on the Indian reservation, whichever is less (A.R.S. § 42-5031.01). It also allows any additional technical college located on the same Indian reservation to receive $875,000, or 5 percent of the TPT revenues collected from sources located on the Indian reservation, whichever is less. Actual amounts for FY 2020 will depend on FY 2020 collections.
The impact to the state General Fund would depend on any additional amounts transmitted through the formula to Navajo Technical University.
Provisions
1. Requires the State Treasurer to transmit to Navajo Technical University:
a) beginning in FY 2020 through FY 2026, $1,875,000 or more than 15.7 percent of TPT revenues received from all sources located on the Indian reservation, whichever is less; and
b) beginning in FY 2027, $875,000 or more than 5 percent of TPT revenues received from all sources located on the Indian reservation, whichever is less.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2019
CS/kja