Final report to Arizona community college presidents' council

              AD HOC STUDY COMMITTEE ON COMMUNITY COLLEGE
FUNDING
Gherald L. Hoopes, Jr., Chair
President, Eastern Arizona College
James R. Carruthers, President, Arizona Western College
Arthur W. DeCabooter, President, Scottsdale Community College
Jeff Hockaday, Chancellor, Pima Community College
Wayne M. McGrath, Executive Director, State Board for Community Colleges
Linda B. Rosenthal, Governing Board Member, Maricopa County Community College District
Donna J. Schober, Executive Director, Arizona Community College Association
Sandra S.Voelker, Chair, Yavapai County Community College District Board
December, 199 1
TABLE OF CONTENTS
ENDORSEMENTS ........................................................................................... -3
INTRODUCTION ............................................................................................. 4
BACKGROUND ...........................................................................................4. ..
ASSUMPTIONS OF THE AD HOC COMMITTEE ...................................................... 6
SUMMARY OF RECOMMENDATIONS ................................................................. 6
RECOMMENDATIONS OF THE AD HOC COMMITTEE ............................................. 7
Revised Maintenance and Operating (M&O) State Aid Formula ................................7
No Change in the Capital Outlay Aid Formula and Full Funding of the Formula. ............ 8
Revised Equalization Aid Formula .................................................................9.
Flexible Use of Capital Outlay Aid for M&O Purposes and M&O State Aid for
Capital Outlay Purposes ................................................................... 10
No Change in the Use of Projected Enrollment for Setting the Expenditure Limitations
of the Districts ........................................................................... 11
APPENDIX A . M&O State Aid for Fiscal Year 1992-93 Draft Session Law ....................... 12
APPENDIX B . FTSE Adjustment Draft Session Law ................................................. 13
APPENDIX C . M&O State Aid Draft Legislation ...................................................... 14
APPENDIX D . M&O State Aid Worksheets ............................................................ 16
APPENDIX E . Equalization Aid Draft Legislation ..................................................... 20
APPENDIX F . Equalization Aid Worksheet .......................................................... 22
APPENDIX G . 1992-93 Fiscal Impact Analysis .......................................................2.3
ENDORSEMENTS
The entities listed have endorsed this Final Report of the Ad Hoc Study Committee on Community
College Funding of the Arizona Community College Presidents' Council through adoption of the
resolution below.
Pima County Community College District
Pinul County Community College District
RESOLUTION
ENDORSING THE FINAL REPORT
OF THE
AD HOC STUDY COMMITTEE ON COMMUNITY COLLEGE WNDLUG
SUBM.TITED TO
THE ARIZONA COMMUNITY COLLEGE PRESIDENTS' COUNCIL
NOVEMBER 14,1991
WHEREAS, in June of 1991 the Arizona Community College Presidents' Council established the
Ad Hoc Study Committee on Community College Funding (Ad Hoc Committee) composed of
presidents, a chancellor, governing board members and state-wide representatives of the
community college system; and
WHEREAS, the charge to the Ad Hoc Committee was "to analyze the cunent community college
funding structure and develop a funding structure that best meets the needs of the ten community
college districts"; and
WHEREAS, a goal of the Ad Hoc Committee was to present its Final Report and
Recommendations to the Joint Legislative Committee on Community College Finance established
by law in 1991 to aid the Joint Legislative Committee in its responsibility to study the cunent
revenue and expenditure structure of the community college system; and
WHEREAS, after much research, analysis and debate the Ad Hoc Committee has recommended
that the community college funding structure be revised in a number of ways, including
establishing a "base plus" maintenance and operating state aid formula; calling for full funding of
the current capital outlay aid formula; revising the equalization aid funding formula; providing
authority for flexible use of capital outlay aid for operating purposes and operating state aid for
capital outlay purposes; and providing for no change in the use of projected enrollment for setring
the expenditure limitations of the districts;
NOW, THEREFORE, BE IT RESOLVED by the members of the
that they endorse the Final Report and Recommendations of the Ad Hoc Study Committee on
Community College Funding and pledge to work toward the adoption of the recommendations
through the state legislative process.
The Ad Hoc Study Committee on Community College Funding (Ad Hoc Committee) of the
Arizona Community College Presidentsf Council (ACCPC) was given the charge "to analyze the
current community college funding structure and develop a funding structure that best meets the
needs of the ten community college districts."
This new funding structure was to be reviewed and endorsed by the Arizona Community College
Presidents' Council, the individual District Governing Boards, the Arizona Association of District
Governing Boards, and the State Board of Directors for Community Colleges of Arizona. This
proposal would then be presented to the Joint Legislative Committee on Community College
Finance established by Chapter 288, Laws of 1991 (S.B. 1318) which was charged with
reviewing the current revenue and expenditure structure of the community colleges.
The Ad Hoc Committee has met seven times since its appointment and held one teleconference
(June 13, June 26, July 11, July 23, July 30, September 12, October 25 meetings and a November
12 teleconference). In addition, much research and analysis were conducted during many hours of
preparation for the meetings. The Arizona Community College Presidents' Council met four
times, on August 15, September 26, October 25, and November 14, to discuss the proposed
recommendations of the Ad Hoc Committee.
The recommendations contained herein were adopted by the ACCPC on November 14 and they
have been endorsed by the entities listed on page 3. This Final Report is for presentation to the
Joint Legislative Committee on Community College Finance.
BACKGROUND
The Arizona Community College System was established by the State Legislature in 1960. At that
point the Community Colleges were to be funded by an equal amount of state aid and local taxes.
As the Community College System grew, the State's intention to fund 50% of the operating costs
of the colleges was not sustained. Student tuition became a third component of the funding of the
colleges when it was instituted in the early 1980's largely due to the passage of Proposition 106
(levy and expenditure limits). In 1985, a revised funding system was established by the
Legislature; the State's commitment to operate the colleges became 33% of the cost of the colleges.
Local taxpayers, students and other sources of funding were to pay the remaining costs. This
commitment has fallen to tight economic times. In the current year, the State contributed about
21% of the funding to operate the colleges. As a result, local taxpayers now pay the largest share
of the costs of operating the community colleges.
As State resources began to diminish, the Community College System was evolving from a typical
"Junior College" System (i.e., one providing the first two years of a baccalaureate education) into
the Community College System of today, a system that has a far-reaching mission that includes
much more than preparing students to transfer to a four-year college or university to obtain a
baccalaureate degree. The System was experiencing explosive growth just as the State itself was
growing.
Arizona's Community College System is one of the largest in the nation in terms of enrollment,
ranking seventh among the twenty largest community college systems. More than 154,800
students were enrolled each semester throughout the State in fiscal year 1990-91. Even by
conservative estimates the number of students enrolling in the Community Colleges will continue
to grow. From fiscal year 1987-88 through fiscal year 1990-91, full-time student equivalent
(FTSE) grew by 30%. Community College classes are held where the people are, answering the
diverse and immediate needs of local communities throughout the State. For citizens across
Arizona of various ages and aspirations, they are the great equalizers of opportunity for higher
education: accessible, flexible, cost-effective and responsive. Arizona's Community Colleges are
an integral part of post-secondary education and economic development throughout the State. The
System enjoys strong support and an excellent reputation for quality teaching and learning both
inside and outside the State.
The Ad Hoc Committee examined the valuation base and tax rate of each dismct. It became
apparent that an equity problem exists among the districts. Some districts have a Iow valuation
base and are unable to raise sufficient revenue to support a community college. Even the districts
that at one time enjoyed rapid valuation increases are experiencing slow growth in assessed
valuation which means that the ability of local taxpayers to pay for the costs of a community
college dismct is diminished. Some districts are currently saddled with very high primary tax rates
- up to $1.74 per $100 of assessed valuation.
The Ad Hoc Committee believes that one way to address the tax ratelassessed valuation inequity
among the districts is by expanding equalization aid to help remedy the inequity. The proposal for
changing the equalization aid formula will provide aid to additional districts by revising the amount
of primary assessed valuation necessary to qualify for equalization aid. At the same time, the 7%
annual growth rate for primary assessed valuation will be eliminated; the primary assessed
valuation base will increase by the percentage change in total primary assessed valuation of the
rural community college districts using the actual primary assessed valuation numbers of the rural
districts from the prior two years. This will enable a few more districts to maintain their quality
educational programs and services.
At the same time, there is concern about equity for the urban districts. Both the Maricopa and Pima
Districts have enjoyed healthy growrh, yet the fact that state funding has diminished over the years
means that they are being paid a much smaller amount per FTSE and their share of state operating
aid as a percentage of their total budget is much smaller. The proposal for revising maintenance
and operating (M&O) state aid is an attempt to preserve the "base" amount of operating aid
provided to each district by allowing for inflationary adjustment, and ensuring that enrollment
growth is recognized and funded.
Additional funding will be a necessity for the community colleges to maintain their quality of
teaching and learning and, at the same time, provide for the increased enrollment and the local
citizens' demands placed on these educational institutions. Arizona's Community Colleges - the
colleges of the people - are very vulnerable. They have seen State financial support erode
dramatically even as enrollment growth and educational demands have increased significantly. The
enrollment growth requires more faculty and staff to teach and advise and otherwise provide for the
needs of students. The educational demands include providing for the job training and re-training
needs of the workers and employers of today and tomorrow so we remain competitive in the nation
and the rapidly-changing world. Local taxpayers are reaching the limits imposed by the State
Constitution on raising local revenues. Students are annually required to pay more for their
education - to such an extent that we may soon be charging more than those who most need the
educational services can afford to pay. The tuition treadmill seems to be without an end as other
resources decrease.
These were the realities faced by the Ad Hoc Committee and these are the realities and challenges to
be faced by the Joint Legislative Committee on Community College Finance.
After much deliberation the Ad Hoc Committee developed the Assum~tionsa nd Recommendations
included in this document. The Assumptions of the Ad Hoc Committee, which represent the
conclusions and concerns of the representatives of the entire System at the outset, could be met
only by developing a comprehensive package. The Ad Hoc Committee also believes that it will be
important to evaluate this new funding structure on a regular basis to determine whether it is
working as we believe it should.
The Arizona Legislature has an opportunity now to move the State's Community College System a
quantum leap ahead in its ability to meet the educational needs of the citizens of this State in the
21st century.
~ U R I P T I O N SO F Tm AD HOT: COMMITTEE
The Ad Hoc Committee's recommendations were based on the following assumptions agreed upon
by the members at the outset:
** The Ad Hoc Committee's recommendations should serve as the foundation for work by the
Joint Legislative Committee on Community College Finance.
** The funding structure should be acceptable to all districts and should not negatively impact
any of the districts.
** The funding structure could have short-term and long-term implications.
** The funding structure should provide consistent, predictable and stable state funding.
** The current governance structure of the community college system should be retained (i.e.,
"shared governance" between the State Board and local dlstrict governing boards).
** Funding solutions should be possible to implement under current constitutional constraints
so a vote of the people would not be required immediately to implement the
recommendations.
** The funding structure should distribute dollars equitably in good economic times and bad
economic times.
** The funding structure should consider fairly the question of economies of scale in
allocating the state funding.
** The funding structure should consider the varying local tax rates of the districts.
** The funding formula should use actual, audited FTSE numbers.
** State funding should reflect inflationary changes and student enrollment growth.
SUMMARY OF RECOMMENDATTONS
-- Revised Maintenance and Operating (M&O) State Aid Formula.
-- No Change in the Capital Outlay Aid Formula and Full Funding of the Formula.
-- Revised Equalization Aid Formula.
-- Flexible Use of Capital Outlay Aid for M&O Purposes and M&O State Aid for Capital
Outlay Purposes.
-- No Change in the Use of Projected Enrollment for Setting the Expenditure Limitations of
the Districts.
* * MAINTENANCE AND OPERATING (M&O) STATE AID
BASE PLUS FORMULA
For fiscal year 1992-93, the Ad Hoc Committee recommends that all M&O state aid
appropriated to the ten community college districts be appropriated by line item to each
district in the same propo~Tiona s the current year's (fiscal year 1991-92) appropriations for
M&O state aid. See APPENDIX A on page 12 for draft statutory session law language to
implement this recommendation.
- The amount of the fiscal year 1992-93 M&O state aid appropriation will be
calculated using the same methodology as in 1993-94 and thereafter, but the FTSE
growth funding component will be allocated to each district based upon its pro rata
share of the 1991-92 M&O state aid appropriation.
For fiscal year 1993-94 and thereafter, the Ad Hoc Committee recommends that an M&O
State Aid formula be established to provide for an inflation-adjusted base amount of state
operating aid for each community college district in conjunction with a payment for any
FTSE growth over the previous fiscal year. This could be described as a "base plus"
formula and is further explained, as follows:
- The current fiscal year's (1992-93) state operating aid amount for each of the ten
community college dismcts will serve as the district's base and will be adjusted by
the GNP implicit price deflator to arrive at the base amount of state operating aid for
each district for the next fiscal year (1993-94). This calculation will always occur
first and will always be paid first.
A rate per FTSE will be established which will be used to pay for annual FTSE
growth. The rate per RSE will be computed annually as the average appropriation
per FTSE for all of the districts. The rate will be calculated by dividing the total
amount of M&O state aid received by the dismcts in the previous fiscal year by the
most recent actual, audited total system FTSE. (The rate per FTSE used for fiscal
year 1993-94 will be calculated by using the total amount of M&O state aid received
in fiscal year 1992-93 divided by fiscal year 1991-92 total actual, audited FTSE.)
This FTSE growth payment, along with the inflation-adjusted base amount, will
become the new base for each dismct.
- The ITSE ~rowthp ayment each year will be based on the difference between the
last two pnor fiscal years' actual, audited FTSE (e.g., the fiscal year 1993-94
appropriation would be based on the difference between fiscal year 1990-91 actual,
audited FTSE and fiscal year 1991-92 actual, audited FTSE). Adjustments will be
made to accurately reflect the FTSE numbers of Yavapai and Coconino Districts
when this formula is implemented. See APPENDIX B on page 13 for draft
statutory session law language to implement the n S E adjustment recommendation.
See APPENDIX C on page 14 for draft statutory language to implement the recommendation for
M&O state aid noted above and APPENDIX D for worksheets showing the actual calculations.
The worksheet on page 16 shows the calculations for fiscal year 1992-93 and pages 17 through 19
show projected M&O state aid funding under the "base plus" formula for fiscal years 1993-94
through 1995-96.
* * CAPITAL OUTLAY AID
The Ad Ha: Committee recommends a) no change in the capital outlay aid formula; and
b) full funding of the current capital outlay aid formula. The current capital outlay aid formula
provides for funding to each dismct for repair and maintenance of state-owned buildings based on
actual, audited FTSE from the prior year with one rate per FTSE paid to a community college
district with less than 5,000 FTSE (rural district) and a lower rate per FfSE (approximately 60%
of the rural district rate) paid to a community college district with 5,000 or more FTSE (urban
district). The original rates per FI'SE were specified by statute and have been adjusted each year
by the GNP implicit price deflator. (See A.R.S. section 15-1464.)
* * EQUALIZATION AID
The Ad Hoc Committee recommends that the concept of equalization aid be retained.
However, the current statutory formula driving the equalization aid appropriation should be
modified by:
- increasing the primary assessed valuation base to $550,000,000 (from the 1992-93
base level of $459,614,803);
- using the prior year's actual primary assessed valuation for each dismct rather than
an estimate of the current year's primary assessed valuation for each district;
- increasing the primary assessed valuation base in succeeding years by the
percentage change in total primary assessed valuation in the rural community
college districts (all districts except Maricopa and Pima) using the actual numbers
from the two prior years;
- applying the lesser of : a) a tax rate (rather than the current $1.37) which would be
calculated by dividing the prior year's total actual primary assessed valuation of the
rural community college districts (all districts except Maricopa and Pima) by $100
and then dividing the prior year's total actual primary tax levy of the rural
community college districts by that quotient; a b) the community college district's
actual tax rate.
See APPENDIX E on page 20 for draft statutory language to implement the recommendations
noted above and APPENDIX F on page 22 for a worksheet showing the actual calculations.
** FLEXIBLE USE OF CAPITAL OUTLAY STATE AID FOR M&O
PURPOSES AND M&O STATE AID FOR CAPITAL OUTLAY PURPOSES
The Ad Hoc Committee recommends retaining the right to use up to 20% of the capital
outlay state aid for M&O purposes or up to that same amount of M&O State Aid for capital outlay
purposes.
** NO CHANGE IN THE USE OF PROJECTED ENROLLMENT FOR
CALCULATING THE EXPENDITURE LIMITATIONS OF THE DISTRICTS
The Ad Hoc Committee recommends that the calculation of the annual expenditure
limitations of the community college districts by the Economic Estimates Commission continue to
be based on projected enrollment.
DRAFT
DRAFT SESSION LAW TO IMPLEMENT THE RECOMMENDATION ON MSrO
STATE AID FOR FISCAL YEAR 1992-93 OF THE AD HOC COMMITTEE OF
THE ACCPC
** M&O STATE AID FOR FISCAL YEAR 1992-1993
Sec. -. Maintenance and opera tin^ state aid for community collerre districts for fiscal vear
All maintenance and operating state aid appropriated to the ten community college dismcts
for fiscal year 1992- 1993 shall be appropriated to each community college district proportionately
according to the percentage of maintenance and operating state aid each community college district
received in fiscal year 199 1- 1992.
APPENDIX B
DRAFT
DRAFT SESSION LAW TO IMPLEMENT THE RECOMMENDATION ON FTSE
ADJUSTNIENT OF THE AD HOC COMMITTEE OF THE ACCPC
** ADJUSTMENT OF FTSE FOR FISCAL YEAR 1990-1991 FOR YAVAPAI AND
COCONINO COMMUNITY COLLEGE DISTRICTS.
. . Sec. -. Yavawai and Coconino countv communitv college dlstncts: full-time student
gauivalent adjustment for fiscal vear 1990-9 1
For fiscal year 1993-1994 when determining the amount to be paid for growth in full-time
student equivalent under section 15-1466, subsection C, Arizona Revised Statutes, as added by
this act, the full-time student equivalent count for the Yavapai county community college district
shall be adjusted to reflect a loss of 361 for fiscal year 1990-1991, which will result in a fiscal year
1990-1991 full-time student equivalent count of 2,291. The Coconino county community college
district full-time student equivalent count for fiscal year 1990-1991 shall be 361.
APPElUDlX C
DRAFT
DRAFT LEGISLATION TO IMPLEMENT THE PROPOSED FUNDING
FORMULA OF THE AD HOG COMMITTEE OF THE ACCPC
** M&O STATE AID
Section 1. Reueal
Section 15- 1466, Arizona Revised Statutes, is repealed.
Sec. 2. Title 15, chapter 12, article 4, Arizona Revised Statutes, is amended by adding a new
section 15- 1466, to read:
15-1 466. State Aid: Eli~ibilitvL: imitations
A. THE COST OF MAINTAINING ANY DISTRICT POSSESSING THE QUALIFICATIONS
AS PRESCUED IN THIS CHAPTER SHALL BE PAID BY THIS STATE FOR THE FISCAL
YEAR 1993-1994 AND T H E R E m R IN THE MANNER PROVIDED IN SUBSECTIONS B
THROUGH F IN THIS SECTION.
B. DETERMINE THE AMOUNT OF STATE AID APPROPRIATED TO EACH DISTRICT IN
THE FISCAL YEAR JUST PRIOR TO THE FISCAL YEAR FOR WHICH THE STATE AID IS
BEING CALCULATED.
C. ADJUST THE AMOUNT OF STATE AID APPROPRIATED TO EACH DISTRICT AS
DETERMINED IN SUBSECTION B BY THE PERCENTAGE GROWTH IN THE GNP
IMPLICIT PRICE DEFLATOR AS PROVIDED IN SECTION 15-901, SUBSECTION B,
PARAGRAPH 2, SUBDIVISION (f). THIS AMOUNT SHALL BE APPROPRIATED TO THE
DISTRICT.
D. IN ADDITION TO THE STATE AID APPROPRIATED IN SUBSECTION C OF THIS
SECTION, EACH DISTRICT QUALIFED UNDER THIS CHAPTER SHALL BE PAID BY
THIS STATE BEGINNING IN FISCAL YEAR 1993-94 AND THEREAFTER AN AMOUNT
FOR GROWTH IN THE EULL-TIME EQUIVALENT STUDENT COUNT OF THE DISTRICT
AS CALCULATED IN PARAGRAPHS 1 THROUGH 3 OF THIS SUBSECTION.
1. CALCULATE THE GROWTH IN THE ACTUAL, AUDITED FULL-TIME
EQUIVALENT STUDENT COUNT BETWEEN THE TWO MOST RECENT FISCAL
YEARS FOR EACH DISTRICT.
2. CALCULATE THE AVERAGE APPROPRIATION PER FULL-TIME
EQUIVALENT STUDENT FOR ALL, DISTRICTS BY DIVIDING THE AMOUNT
DETERMDED IN SUBSECTION B BY THE ACTUAL, AUDITED FULL-TWIE
EQUIVALENT STUDENT COUNT FOR ALL DISTRICTS IN THE MOST RECENT
FISCAL YEAR.
3. MULTIPLY THE AMOUNT CALCULATED IN PARAGRAPH 1 OF THIS
SUBSECITON BY THE AVERAGE APPROPRIATION CALCULATED IN
PARAGRAPH 2 OF THIS SUBSECTION. THIS AMOUNT SHALL BE
APPROPRIATED TO THE DISTRICT FOR GROWTH.
E. STATE AID APPROPRIATED TO THE DISTRICTS SHALL BE ALLOCATED AND PAID
IN ACCORDANCE WITH SUBSECTION C OF THIS SECTION BEFORE ANY FUNDING IS
ALLOCATED AND PAID IN ACCORDANCE WITH SUBSECTION D OF THIS SECTION.
F. THE TOTAL AMOUNT APPROPRIATED TO EACH DISTRICT EACH FISCAL YEAR IN
ACCORDANCE WITH SUBSECTIONS C AND D OF THIS SECTION SHALL SERVE AS
THE AMOUNT OF STATE AID TO BE ADJUSTED IN THE NEXT FISCAL YEAR AS
REQUIRED BY SUBSECTION C OF THIS SECTION.
ARIZONA COMMUNITY COLLEGE SYSTEM
M & 0 STATE AID FUNDING RECOMMENDATION
FISCAL YEAR 1992-93 (Projected)
- BASE FUNDING -
GNP/IPD ADJUSTMENT (EST. 1991)
FEE GROWTH (FY 89-90 TO M 90-91)
TOTAL INCREASE
LLOCATED IN€. (A)
ASE FUNDING
(A): The total proposed increase in funding for FY 1992-93 has been allocated to each district in the same proportion as total
funding was allocated to each district in FY 1991-92.
ARIZONA COMMUNITY COLLEGE SYSTEM
M & 0 STATE AID FUNDING RECOMMENDATION
FISCAL YEAR 1993-94 (Projected)
- BASE PLUS FORMULA FUNDING -
OJECTED EISE GROWTH:
ARICOPA DISTRICT
FTSE GROWTH
%
'd
M
2;
" Projected actual FTSE numbers are used eventhough schedule indicates actual FEE. By the time the 1993-94 appropriation is being determined, E
X
FY91-92 FEE will be actual and audited.
u
ARIZONA COMMUNITY COLLEGE SYSTEM
M & 0 STATE AID FUNDING RECOMMENDATION
FISCAL YEAR 1994-95 (Projected)
- BASE PLUS FORMULA FUNDING -
ROJECED FTSE GROWTH:
MARICOPA DISTRICT
PIMA DISTRICT
ALL OTHERS (Average)
P
03
F E E GROWTH
% w m
* Projected actual FEE numbers are used eventhough schedule indicates actual FISE. By the time the 1994-95 appropriation is being determined,
FY91-92 F E E and FY92-93 FTSE will be actual and audited.
ARIZONA COMMUNITY COLLEGE SYSTEM
M & 0 STATE AID FUNDING RECOMMENDATION
FISCAL YEAR 1995-96 (Projected)
- BASE PLUS FORMULA FUNDING -
PROJECTED FISE GROWTH:
MARICOPA DISTRICT
PIMA DETRICT
ALL OTHERS (Average)
AVERAGE FISE GROWTH
** Projected actual FISE numbers are used eventhough schedule indicates actual FISE. By the time the 1995-% appropriation is being determined,
M92-93 FTSE and FY9394 FISE will be actual and audited.
APPENDIX E
DRAFT
DRAFT LEGISLATION TO IMPLEMENT THE PROPOSED FUNDING
FORMULA OF THE AD HOC COMMITTEE OF THE ACCPC
* * EQUALIZATION AID
Section 1. Section 15-1402, Arizona Revised Statutes, is amended to read:
A. Community college districts may be organized under the provisions of this chapter for a single
county, two or more contiguous counties or an existing community college district and contiguous
counties not part of any existing community college district if the proposed district has a primary
assessed valuation, based on the valuation for the preceding year, of at least two FIVE hundred
fifty million dollars and a minimum population of forty thousand persons who are fifteen or more
years of age, as determined by the most recent federal census.
B. Beginning with fiscal year 1984-1985 1993-1994, the minimum primary assessed valuation
required to organize a community college district as provided in subsection A increases seven BY
A per cent a EACH year WHICH IS THE PERCENTAGE CHANGE IN TOTAL PRIMARY
ASSESSED VALUATION FOR ALL OF THE DISTRICTS WITH A POPULATION OF LESS
THAN FIVE HUNDRED THOUSAND PERSONS AS DETERMINED BY THE MOST
RECENT FEDERAL CENSUS USING ACTUAL PRIMARY ASSESSED VALUATION
NUMBERS FROM THE PRIOR TWO YEARS.
Sec. 2. Repeal
Section 15- 1468, Arizona Revised Statutes, is repealed.
Sec. 3. Title 15, chapter 12, article 4, Arizona Revised Statutes, is amended by adding a new
section 15-1468, to read:
15-1468. Equalization aid for communitv college districts.
A. ANY DISTRICT WHICH BY VIRTUE OF SECTION 15-1402 IS A PART OF THE
STATE COMMUNITY COLLEGE SYSTEM, BUT WHICH DISTRICf HAS LESS THAN THE
AMOUNT OF PRIMARY ASSESSED VALUATION PRESCRIBED IN SECTION 15-1402,
SHALL BE PAID BY THE STATE AN AMOUNT EQUAL TO THE FOLLOWING:
1. DETERMINE THE DIFFERENCE BETWEEN THE PRIOR YEAR'S ACTUAL
PRIMARY ASSESSED VALUATION OF THE DISTRICT AND THl3 AMOUNT OF PRIMARY
ASSESSED VALUATION PRESCRIBED IN SECTION 15-1402.
2. DETERhlTNE THE ACTUAL PRIOR YEAR'S PRIMARY PROPERTY TAX RATE FOR
THE DISTRICT.
3. DETERMINE A TAX RATE WHICH WOULD BE CALCULATED BY DIVIDING THE
PRIOR YEAR'S TOTAL ACTUAL PRIMARY ASSESSED VALUATION FOR THE
DISTRICTS WITH A POPULATION OF LESS THAN FIVE HUNDRED THOUSAND
PERSONS AS DETERMINED BY THE MOST RECENT FEDERAL CENSUS BY ONE
HUNDRED DOLLARS AND THEN DIVIDING THE PRIOR YEAR'S TOTAL ACTUAL
PRIMARY TAX LEVY OF THOSE SAME! DISTRICTS BY THAT QUOTIENT.
4. MULTIPLY THE DIFFERENCE DETERMINED IN PARAGRAPH 1 OF THIS
SUBSECTION BY THE LESSER OF THE TAX RATES DETERMINED IN PARAGRAPHS 2
AND 3 OF THIS SUBSECTION.
B. THE EQUALIZATION AID PROVIDED FOR IN SUBSECTION A OF THIS SECTION
SHALL BE USED FOR THE SAME PURPOSES SPECFIED IN SECTION 15-1462 AND
SHALL BE APPORTIONED TO ANY QUALIFYING DISTRICT PURSUANT TO SECTION
15-1467.
NOTE: Underscored = delete existing: language
CAPITAL LETTERS = ADD NEW LANGUAGE
(NOTE: THERE WILL BE OTHER CONFORMING CHANGES THAT WILL NEED TO BE
MADE IN THE STATUTES RELATING TO COMMUNITY COLLEGES IF THESE FUNDING
FORMULA CHANGES ARE ADOPTED.)
EQUALIZATION AID MODEL
CXLCL'WTION OF TAX RATES ASD ASSESSED VALUATION BASE
APPENDIX F
Cochise
Coconino
Graham
4Mohave
Navajo
Pinal
Yavapai
1992-93 Fisca Impact Ana
[21 Final Ad Hoc Committee Recommendation - ARS 15-1464 provisions - Chapter 288 1991 Legislature
Coconino FTSE Projected at FY91-92 Appropriated Level
Pi 92-9 (3tn u o maAt- el