PREFILED    DEC 21 2023

REFERENCE TITLE: community colleges; expenditure limitation

State of Arizona

House of Representatives

Fifty-sixth Legislature

Second Regular Session

2024

HB 2089

Introduced by

Representatives Hendrix: Parker B

An Act

providing for the withholding of state aid for community colleges that exceed the expenditure limitation in fiscal years 2024-2025 through 2026-2027.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Community college districts; expenditure limitations; withholding; exceptions

A. Notwithstanding section 41-1279.07, Arizona Revised Statutes, for fiscal years 2024-2025, 2025-2026 and 2026-2027, if a community college district exceeds its expenditure limitation prescribed in article IX, section 21, Constitution of Arizona, and pursuant to section 41-563, Arizona Revised Statutes, the community college district shall have its state aid pursuant to section 15-1466, Arizona Revised Statutes, withheld as follows:

1. If the excess expenditures are less than five percent of the limitation, an amount equal to ten percent of the excess expenditures.

2. If the excess expenditures are equal to or greater than five percent but less than ten percent of the limitation, an amount equal to twenty percent of the excess expenditures.

3. If the excess expenditures are equal to or greater than ten percent but less than twelve percent of the limitation, an amount equal to fifty percent of the excess expenditures.

4. If the excess expenditures are equal to or greater than twelve percent of the limitation, an amount calculated pursuant to section 41-1279.07, Arizona Revised Statutes.

B. Notwithstanding subsection A of this section, for any provisional community college district established pursuant to section 15-1402.01, Arizona Revised Statutes, before December 31, 2015 that is in a county with a population that does not exceed three hundred thousand persons, the maximum amount of state aid withheld may not exceed one percent of the provisional community college district budget.

C. Notwithstanding subsection A of this section, for any community college district that is in a county with a population that does not exceed one million persons, the maximum amount of state aid withheld may not exceed one-half of one percent of the community college district budget.

Sec. 2. Retroactivity

Section 1 of this act applies retroactively to from and after June 30, 2023.