ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: GE DPA/SE 7-6-0-0-0-0 | 3rd Read 31-28-1-0

Senate: APPROP DPA/SE 8-2-0-0 | 3rd Read 28-1-1-0

Final Read: 55-0-5-0

HB 2373: ~~forms; identifiers; voter registration groups~~

NOW: expenditure limitation; community colleges

Sponsor: Representative Dunn, LD 13

Transmitted to the Governor

Overview

Outlines state aid penalties for a community college district (district) that exceeds its expenditure limitation in FY 2022.

History

The Economic Estimates Commission (EEC) is responsible for annually determining each district's expenditure limitation. The expenditure limitation is determined by adjusting the amount of expenditures of local revenues for each district for FY 1980 to reflect student population changes and the cost of living (Ariz. Const. art. 9 § 21). Statute outlines the formula the EEC must follow when calculating the expenditure limitations for districts (A.R.S. § 41-563). The final expenditure limits may be found here.

The Auditor General prescribes a uniform expenditure reporting system for all political subdivisions. Districts must issue an annual budgeted expenditure limitation report that includes: 1) the expenditure limitation established by the EEC; 2) total budgeted expenditures by fund; 3) the total exclusions from local revenues; and 4) the total amounts, by fund, of budgeted expenditures subject to the expenditure limitation. A district that exceeds the expenditure limitation for any fiscal year without authorization will have its allocated state aid withheld (A.R.S. § 41-1279.07).

Statute requires the Legislature to determine and appropriate state aid each fiscal year to qualified districts. A district's state aid is adjusted by an amount that reflects the growth or decrease in the district's full-time equivalent student count (A.R.S. § 15-1466).

Provisions

1. Stipulates that a district is to have the following amounts of state aid withheld if it exceeds its expenditure limitation for FY 2022:

a) $5,000 if excess expenditures are less than 5% of the limitation;

b) $15,000 if excess expenditures are at least 5% but less than 10% of the limitation;

c) $20,000 if excess expenditures are at least 10% but less than 12% of the limitation; and

d) The statutory amount calculated by the Auditor General if excess expenditures are at least 12% of the limitation. (Sec. 1)

2. Contains a retroactivity clause of July 1, 2020. (Sec. 1)

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6. HB 2373

7. Initials CH Page 0 Transmitted

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