ARIZONA STATE SENATE

RESEARCH STAFF

JEFFREY ONG

LEGISLATIVE RESEARCH ANALYST

EDUCATION COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

APPROPRIATIONS COMMITTEE

DATE:            March 26, 2021

SUBJECT:      Strike everything amendment to H.B. 2373, relating to community college; expenditure limit

Purpose

Allows community college districts exceeding expenditure limitations to receive state aid in FYs 2021 through 2023.

Background

  Article IX, Section 21 of the Arizona Constitution establishes the expenditure limitation for each community college district to the FY 1980 spending level adjusted for inflation and enrollment. The Economic Estimates Commission, before April 1 of each year,  must determine the expenditure limit for each community college district for the following fiscal year (Ariz. Const. art. 9 § 21).

  A community college district's expenditure limitation is based upon the number of reported full-time equivalent (FTE) students and is calculated by determining:  1) the total of basic actual, additional short-term and open entry, open exit and skill center FTE students at a community college district; 2)  the number of FTE students enrolled in approved career and technical education (CTE) courses; and 3) multiplying the number of FTE students enrolled in CTE courses by 0.3. The sum is the FTE student enrollment for determining a community college district's  expenditure limitation (A.R.S. § 15-1466.01).

  Each fiscal year, subject to legislative appropriation, the Legislature determines the amount of state aid to each qualified community college district adjusted for an increase or decrease in FTE student count as prescribed (A.R.S. § 15-1466).

  There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Deems, retroactive to July 1, 2020, a community college district exceeding its prescribed expenditure limitation in FYs 2021 through 2023:

a) will not have state aid withheld; and

b) is subject to a $100 penalty.

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