ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: ED DPA 10-0-0-0 | APPROP DP 12-1-0-0 | 3rd Read 49-9-2-0

Senate: ED DP 8-0-0-0 | APPROP DPA 10-0-0-0 | 3rd Read 27-1-2-0


HB 2017: STEM funding; appropriation

Sponsor: Representative Kaiser, LD 15

Conference Committee

Overview

Appropriates monies from the state General Fund (GF) in FY 2023 to specified community colleges for science, technology, engineering and mathematics (STEM) and workforce programs state aid. Removes language that subjects STEM and workforce programs state aid to appropriation.

History

Statute establishes the following formula that calculates each community college district's STEM and workforce programs state aid according to the district's full-time equivalent student (FTSE):

· For a community college district with less than 5,000 FTSE: Multiply the most recent fiscal year's actual FTSE count by $207, adjusted by the growth rate for common and high school districts; and

· For a community college district with 5,000 or more FTSE: Multiply the most recent fiscal year's actual FTSE count by $158, adjusted by the growth rate for common and high school districts.

Currently, STEM and workforce programs state aid is subject to appropriation.

A community college district may spend STEM and workforce programs state aid on partnerships, additional faculty, technology, equipment, technology infrastructure, student services and the purchase or lease of real property (A.R.S. § 15-1464).

Laws 2019, Chapter 266, Laws 2020, Chapter 50 and Laws 2021, Chapter 410 (the higher education budget reconciliation bills) suspended the statutory STEM and workforce programs state aid formula and funded community college districts as specified in the respective fiscal year's general appropriations act.  

Provisions

1.   Appropriates the following amounts from the state GF in FY 2023 for STEM and workforce programs state aid:

a)   $1,776,600 to the Pima community colleges;

b)   $551,100 to the Pinal community colleges; and

c)   $8,600,000 to the Maricopa community colleges. (Sec. 2)

2.   Deletes language that subjects STEM and workforce programs state aid to appropriation. (Sec. 1)

3.   States STEM and workforce programs state aid is appropriated from the state GF. (Sec. 1)

4.   Contains a delayed effective date of July 1, 2023. (Sec. 2)☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note

5.   Makes technical changes. (Sec. 1)

Senate Amendments

1.   Reinstates language that subjects STEM and workforce programs state aid to appropriation.

2.   Replaces the state aid amounts prescribed by statute that are to be withheld for a community college district that exceeds its expenditure limitation in FYs 2023 and 2024 with the following amounts:

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

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

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

d)   The lesser of an amount equal to five times the excess expenditures or 1/3 of its state aid allocation if the excess expenditures are 12% or more of the limitation.

3.   Limits the maximum amount of state aid that may be withheld for a provisional community college district established before December 31, 2015, that is in a county with a population of not more than 300,000 and that exceeds its expenditure limitation in FYs 2023 and 2024 by 12% or more to 1% of its budget.

4.   Specifies STEM and workforce programs state aid for the Maricopa, Pima and Pinal community college districts for FY 2023 is as specified in this legislation.

5.   Adds a retroactivity clause of July 1, 2021 for the prescribed state aid withholding amounts.

Conference Committee Amendments

1.   Applies the prescribed state aid withholding amounts for a community college district that exceeds its expenditure limitation to FY 2023 only.

2.   Removes the STEM and workforce state aid appropriations.

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6.                     HB 2017

7.   Initials CH Page 0 Conference Committee

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