Assigned to APPROP                                                                                                        AS PASSED BY COW

ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

REVISED

AMENDED

FACT SHEET FOR s.b. 1173

community colleges; out-of-county reimbursement

Purpose

An emergency measure that requires the state to partially fund the amount owed to a community college district (CCD) by a county that is not a part of an established CCD
(out-of-CCD county) according to prescribed calculations.

Background

A CCD may admit students from any part of Arizona that is not part of an established CCD on the same conditions as residents. The out-of-CCD county of the student's residence must reimburse the CCD in an amount calculated according to a statutorily prescribed formula that considers: 1) the number of full-time equivalent (FTE) students attending classes from the reimbursing county for the preceding year; 2) the CCD's current year total FTE students; and 3) the CCD's legislatively-appropriated state aid subtracted from the CCD's current year operational expenses.

By May 15 of each fiscal year, the Joint Legislative Budget Committee (JLBC) staff  must determine the reimbursement amount from each out-of-CCD county to each CCD and notify the county board of supervisors and CCD of the amount (A.R.S. § 15-1469).

A Joint Legislative Budget Committee fiscal note estimates a cost of $2,000,000 to the state General Fund (JLBC).

Provisions

1. Determines the amount an out-of-CCD county must pay to a CCD out of the total out-of-CCD reimbursement formula amount to be equal to the product of:

a) the number of FTE students attending CCD classes from the out-of-CCD county for the preceding year; and

b) the amount of the CCD's primary property tax levy from the current fiscal year divided by the number of FTE students enrolled in the CCD in the current year.

2. Requires, to be paid to the CCD from the state GF, an amount equal to the total amount of reimbursement to the CCD minus the amount paid by the out-of-CCD county.

3. Directs JLBC staff to include, in the out-of-CCD county reimbursement notifications, the respective amounts an out-of-CCD county and the state must pay to the CCD.

4. Makes technical and conforming changes.

5. Becomes effective on signature of the Governor, if the emergency clause is enacted.

Amendments Adopted by Committee of the Whole

· Adds an emergency clause.

Revisions

· Updates fiscal impact statement.

Senate Action

APPROP         1/25/22      DP     9-0-1

Prepared by Senate Research

February 9, 2022

LMM/sr