ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: APPROP DP 9-6-0-0

HB 2575: higher education; 2023-2024

Sponsor: Representative Livingston, LD 28

House Engrossed

Overview

Contains provisions relating to higher education needed to implement the FY 2024 budget.

History

Arizona Financial Aid Trust Fund (AFAT)

The Arizona Board of Regents (ABOR) may establish AFAT to provide immediate aid to students with verifiable financial need and create an endowment for future financial aid. AFAT consists of three primary funding sources: 1) student registration fees; 2) state General Fund monies; and 3) if applicable, 20% of cumulative net income earned by the universities from the sale or transfer of intellectual property exceeding $1,000,000. ABOR must place 25% of monies in AFAT as permanent endowment and use the remaining 75% of monies for immediate aid for students with verifiable financial need. Each dollar raised pursuant to student registration fees must be matched by $2 appropriated by the Legislature (A.R.S. §§ 15-1642, 15-1670).

Science, Technology, Engineering and Mathematics (STEM) and Workforce Programs State Aid

A statutory formula calculates each community college district's (CCD's) STEM and workforce programs state aid by multiplying the CCD's full-time equivalent student (FTSE) count by statutorily set dollar amounts. A CCD 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).

Operating State Aid

The Legislature must determine and appropriate an amount of operating state aid to eligible CCDs. A statutory formula is used to adjust a CCD's operating state aid according to changes in its FTSE count. CCDs may use operating state aid for continuing operating and maintenance expenses (A.R.S. § 15-1466).

Provisions

1. As session law for FY 2024, authorizes each dollar raised by the surcharge on student registration fees assessed pursuant to AFAT to be matched by less than $2 appropriated by the Legislature. (Sec. 1)

2. As session law for FY 2024, states STEM and workforce programs state aid and operating state aid for CCDs are as specified in the General Appropriations Act. (Sec. 2, 3)

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6. HB 2575

7. Initials CH Page 0 House Engrossed

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