AD C STUDY M EON COM MUNITY COLLEGE
FUNDING
Gherald L. Hoopes, Jr., Chair
President, Eastern Arizona College
James R. Carmthers, 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 Disnict
Doma J. Schober, Executive Director, Arizona Community College' Association .
Sandra S.Voeker, Chair, Yavapai County Community College District Board
November 14, 1991
TABLE OF CONTENTS
SYDORSEMENTS. ........................................................................................... 3
INTRODUCTION .............................................................................................4
3XCKGROUND .............................................................................................. .i
. ASSUMPTIONS OF THE AD HOC COMMITTEk ...................................................... 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 iM&O State Aid for
Capital Outlay Purposes ...................................................................1 0
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
APPElWIX D . M&O State Aid Worksheets ........................................................ 15
APPENDIX E . Equalization Aid Draft Legislation ..................................................... 19
APPENDIX F . Equalization Aid Worksheet ............................................................ 21
Tne entities listed have endorsed this Finai Repon: of the Ad Hoc Study Committee on Community
College Funding of t!e Anzona Community College Presidents' Counc11 [hrough adoption of [he
resoiuuon be!ow.
XESOLL'TXON
ENDORSING THE FINAL REPORT
OF THE
AD HOC STUDY COMMI?TEE ON COMMUNlTY COLLEGE FUNDING
S t i B r n D TO
THE ARIZONA COM;'MCm COLLEGE PRESIDEIUiTS' COLYCIL
NOVEI/IBER 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 current community college
funding structure and develop a funding smcture 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 expendinue smcture 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; providmg
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 setting
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.
INTRODUCTION
The Ad Hoc Study Committee on Community College Funding (Ad Hoc Comrmttee) of the
.kizona Community Coilege Presidents Council (ACCPC) was ~iventh e charge "to analvze the
current cornrnuniry college funding struc:ure and deveiop a funding srrucrure that best meels the
needs of the ten commumry coliege dismcts. '
Tqis new funding strucrure was 10 be reviewed and endorsed by he Xnzona Camrnunity Coilese
Presidents' C ~ n c i lt,h e indivlduai Disrnct Governing Boards. the .Arizona .Association of Dismkt
Governing Boards, and the State Board of Girectors for Communi~y Colleges of Arizona. This
proposal would then be presented to the Joint Legislative Committee on Community College
Finance established by Chapter 255, Laws of 1991 (S.3. 1318) which was chzged 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, Se?tember 12, October 35 meetings and a November
12 reieconference). ~n addition, much research-and anaiysis were conducted duhng 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 ef 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 evoiving 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 tenns 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 l&al communities throughout the State. For citizens across
Arizona of various ages and aspirations, they are the great equalizers of opportunity for higher
education: accessible, flexibie, cost-effective and responsive. Arizona's Cornmuni~Cj oileges are
an integral part of post-secondary education and economic development throughout :he State. The
System enjoys strong support and an excellent reputation for quality teaching and learning boch
inside and outside the State.
The Ad Hoc Committee examined the valuation base and tax rate of each dismct. It became
apparent that an zquity problem ,exists among !he Ilistric:~. Some ;listric:s have a !ow valuation
base and are unabie to raise sufficient revenue to suppon a community coilege. Even the dismcls
that at one time enjoyed rapid valuation increases are experiencing slow growth in assessed
valuation which means that the ab~iityo r local taxpayers to pay for the costs of a community
college district is diminished. Some dlsmcts 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 rate/assessed valuation inequity
among the dismcts is by expanding equalization aid to help remedy the inequity. The proposal for
changing the equalization aid formula will provide aid to additional dismcts by revising the amount
of primary assessed valuation necessary to quaiify 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 coilege districts using the actual primary assessed valuation numbers of the rural
districts from the prior two years. This will enable a few more dismcts 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 growth, 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 (h/l&O) state aid is an attempt to preserve the "base" amount of operating aid
provided to each dismct while 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 Fiance.
After much deliberation the Ad Hoc Committee developed the assumption^ and 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 beiieve it shouid.
The i2rlzona Lz~slatureb as an opportunity now 10 move the State's Community Coilege System a
quantum leap akad in its abiiity to me: hie educational needs of the citizens of this State in the
21 st century.
The Ad Hoc Committee's :ec~n;me3dauons were based on the foilowing assumpr,ons a ~ e ~ucpoin
by the members at the outser:
** The Ad Hoc Committee's recommendations should serve as the foundation for work by the
Joint Lepslative Cornmitree on Community College Finance.
** The funding structure should be acceptable to all districts and should not negatively impact
any of the dismcts.
** The funding structure couid 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 district 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 dismbute dollars equitably in good economic times and bad
economic times.
** The funding structure should consicier fairly the question of economies of scale in
allocating the state funding.
** The funding structure should consider the varying local tax rates of the dismcts.
** The funding formula should use actual, audited FTSE numbers.
** State funding should reflect student enrollment growth and inflationary changes.
-- Revised ~ainGnancean d 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.
RECOMMFYDATTONS OF THE AD HOC COMMITTEE
** MAINTENANCX AIUD OPERATING (MSrO) STATE .&ID
BASE PLUS FCR,MULA
For fiscal year 1992-93. the Ad Hoc Committee recommends that all .M&O state aid
appropnared ;o [he :en cornmunirv coilese ciismc:s be mproonared av :ine .tern :o czcn
distric: in the same propomon as he current year's (fiscal year !99!-92) appropnatlons for
-M&O stare aid. See MPEXDLX A on page 12 for draft statutory session law !any~ageto
implement this recommendation.
For fiscal year 1993-34 and thereafter, the Ad Hoc Cormnittee recommends hat an M&O
State Aid formula be established to ~rovidefo r an inflation-adiusted base amount of state
operating aid for each community Allege dismct in conjuncti-on with a payment for any
FTSE growth over the previous fiscal year. This could be descnbed 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 districts will serve as the dismct's base and will be adjusted by
the GNP implicit price deflator to arrive at the base amount of state operating aid for
each dismct for the next fisca. year (1993-94). This calculation will always occur
first and will always be paid fmt.
- A rate per FTSE will be established which will be used to pay for annual FTSE
growth. The rate per FTSE will be computed annually as the average appropriation
per FTSE for all of the districts. The rate will be calculated by dividing the total
M&O state aid received by the districts in the previous year by the total actual
system FTSE for the previous year. The FTSE growth payment, along with the
inflation-adjustment, will become the new base for each district.
The FTSE growth payment each year will be based on the difference between the
last two prior 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 Districrs
when this formula is implemented. See APPENDIX B on page 13 for draft
statutory session law language to implement the FTSE adjustment recommendation.
See APPENDIX C on page 14 for draft statutory language to impiement the recommendation for
M&O state aid noted above and APPENDIX D for worksheets showing the actual calculations.
The worksheet on page 15 shows the calculations for fiscal year 1992-93 and pages 16 through 18
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 Hoc 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 district for repair and maintenance of state-owned buildings based on
ac:ur;i, audited ,TSE from 2 prior year with the rate per FTSE adjusted each year by the GNP
Lnpiicir price dezlator.
* * EQUALIZATION AID
Tie .Ad 3cc Committee recommends that :he cancept of equalization aid be retained.
However, the current statutory foxmula drivins the equalization aid appropriation should be
nodified by:
increasing the u n m q assessed valuation base to S550,000,000 (from the 1992-93
base :evei of S459.614,303); . .- ,. - - ..
- sing the prior yex's acxal primary assessed valuation for each district rather than
an esmate of the current year's pnmary assessed vaiuanon for each dismct;
- 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 acrual 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 APPElNDIX E on page 19 for draft statutory language to implement the recommendations
noted above and APPENDLX F on page 21 for a worksheet showing the actual calculations.
* * FLEXIBLE USE OF CAPITAL OUTLAY STATE AID FOR M910
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 capitai
outlay sate aid for M&O purposes or up :o hat same amount of M&0 State .4id for capitai outlay
ourposes.
* NO CHANGE IN 'THE USE OF PROJECTED ENROLLMENT FOR
CALCULATING THE EXPENDITURE LIMITATIONS OF THE DISTRICTS
The ,Ad 90c C~mmittee rec~mmends that :he calcuiarion ~f :he annuai cxpenairure
!imitations of ;be Zornrnunlrv coileqe dismc:s 5v the Economic Esnmates Commission continue to
be based on projected enrollment. -
APPENDIX A
DRAFT SESSION LAW TO IMPLEMENT THE RECOMMEYDATIOIV ON >I&O
ST.ITE AID FOR FISCAL YEilR 1992-33 OF THE *AD HOC COMMITTEE OF
THE ACCPC
** ,M&O STATE XID FCR FISCAL YE.% 1992-1993
S e c . . Maintenance and o ~ e r a n nyt~ate aid for cornmunltv coileee aisricts for riscai vex
1993-1992
All maintenance and operating state aid appropriated to the ten community college districts
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 SESSION LAW TO TMPLEMENT THE RECOMMENDATION ON FTSE
ADJUSTMENT OF THE .ID HOC COMMITTEE OF THE ACCPC
** ADJUSTMENT OF FTSE FOR FISCAL YEAR 1990-1991 FOR YAVAPAI AIND
z~co1micoo 1wmmiZ ZUZCE ~ I S ~ C T S .
sec. - V, iva~ai :nd t,?conino :ountv cgrnrnunitv .=oilcze dismccs: 5~11-time s:udent
equivalent adjustment for tisca ye= !94tl-9 l
For fiscai year 1993- 1994 when determining the amount to 'be paid for growth in fuil-dme
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 dismct
shall be adjusted to reflect a loss of 361 for tiscal year 1990- 199 1, which will result in a fiscai year
1990- 199 1 full- time student equivalent count of 2,29 1. The Coconino county community college
dismct full-time srudent eqmvaient count for riscai year 1990-199 1 snail 'be 361.
DRAFT
APPENDIX C ,
DRAFT LEGISLATION TO IiVIPLEMENT THE PROPOSED FUNDING
FORMULA OF THE AD HOC COMMITTEE OF THE ACCPC
** M&0 STa4TE AID
Saion l. ?e?ed
Secnon 15- 1460, -4rizona Revised Statutes, is repeaied.
Sec. 2. Title 15, chapter 12, article 4, Xrizona Revised Statutes, is amended by adding d new
section 15- 1466, to read:
15-1466. State Aid: Eligibility: Limitation3
A. THE COST OF L~WINTA~T\IINAGL Wi lISTRICT POSSESSING THE QUALiFiCATIONS
AS PRESCRIBED IN THIS CX4PTEfl SHALL BE P'4ID BY TWS ST.4TE FOR THE FISCAL
YEAX i993-i994 XiW ?31EXmX 2 4 TEE MAINNER 3ROVICED IN SUBSECTIONS 3
THROUGH E IN THIS SECTION.
B. 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
DETERMINED, SHALL BE ADJUSTED BY THE PERCENTAGE GROWTH IN THE GLW
IMPLICIT PRICE DEFLATOR AS PROVIDED IN SECTION 15-901, SUBSECTION B,
PARAGRAPH 2, SUBDIVISION (0,A ND APPROPRIATED TO EACH DISTRICT.
C. IN ADDITION TO THE STATE AID PROVIDED IN SUBSECTION B OF THIS SECTION,
EACH DISTRICT QUALIFIED UNDER THIS CHAPTER SHALL BE PAID BY THIS STATE
BEGINNING IN FISCAL YEAR 1993-1994 AIND THEREAFTER AN AMOUNT FOR
GROWTH IN THE FULL-TIME STUDENT EQUIVALENT COUNT OF THE DISTRICT.
THE AMOUNT PAID TO EACH DISTRICT SHALL BE CALCUTED BY DETERMINING
THE DIFFERENCE BETWEEN THE TWO MOST RECENT FISCAL YEARS' xnT&
FULL-TIME STUDENT EQUIVALENT COUNTS AND MULTIPLYING THAT INUMBER BY
THE AiMOUNT PER FULL-TIME STUDENT EQUIVALENT PROVIDED IN THIS
SUBSECTION. THE AMOUNT PER FULL-TIME STUDENT EQUIVALENT TO BE PAID
FOR GROWTH AS SPECIFIED IN THIS SUBSECTION SHALL BE CALCULATED BY
DIVIDING THE TOTAL AMOUNT OF STATE AID RECENED BY THE DISTRICTS UNDER
THIS SECTION IN THE MOST RECElNT FISCAL YEAR BY THE PRIOR FISCAL YEAR'S
ACTUAL FULL-TIME EQUIVALENT STUDENT COUNT OF ALL OF THE DISTRICTS.
FUNDING FOR GROWTH APPROPRLATED IN ACCORDANCE WITH THS SUBSECTION
SHALL BE ALLOCATED EQUALLY AMONG ALL OF THE DISTRICTS ELIGIBLE TO
RECEIVE FUNDINGFOR GROWTH.
D. STATE AID APPROPRIATED TO THE DISTRICTS SHALL BE ALLOCATED AND PAID
IN ACCORDANCE WITH SUBSECTION B OF THIS SECTION BEFORE ANY FUNDING IS
ALLOCATED AND PAID IN ACCORDANCE WITH SUBSECIlON C OF THIS SECTION.
E. THE TOTAL AMOUNT APPROPRIATED TO EACH DISTRICT EACH FISCAL YEAR IN
ACCORDANCE WITH SUBSECTIONS B AND C OF THIS SECTION SHALL SERVE AS
THE AMOUNT OF STATE AID TO BE ADJUSTED IN THE NEXT FISCAL,YEAR AS
REQUIRED BY SUBSECTION B OF THIS SECTION.
Al<17,ONA (~OblbIUNl'l'Y( ' O l , l , l ~( ill; SYS lI<h1
R1 cPr 0 S I A I E All) 1'UNI)INCi l<l:C'Ohlhll3NI)A I ION
l - l S ( ~ A l , Yl:Al< 19'9~1-OS (l'l<OJl C' I I;[))
- l!tlSl< 1'1,tJS l ~ O l ~ b l l l l , A 1 2 LlNlJlN(; -
DRAFT LEGISLATION TO IMPLEMENT THE PROPOSED FUNDING
FORMULA OF THE .AD HOC COIMMITTEE 0% THE XCCPC
* * EQUALIZATION ,AID
Szcrion :. Section 15- 1402, ,*izona Rz-~lsedS tatures, is amended 10 reac:
A. Community college disuics nay be organizer! under the provisions of this chapter for a s~ng!e
county, two or more contiguous counties or an existing community college disnict and contiguous
counties not part of any existing community college district if the proposed district has a p n m q
assessed valuation, based on the valuation for he preceding year, of at least :wo 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 aosr iecznt federai 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 3 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
NUME3ERS FROM THE PRIOR TWO YEARS.
Sec. 2. Re~eal
Section 15- 1468, Arizona Revised Statutes, is repealed.
See. 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 cornrnunitv college districts.
A. ANY DISTRICT WHICH BY VIRTUE OF SECTION 15-1402 IS A PART OF THE
STATE COPVLMUMTY COLLEGE SYSTEM, BUT WHICH DISTRICT HAS LESS THAN THE
AMOUNT OF PRfMARY 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 THE AMOUNT OF PRDCIARY
ASSESSED VALUATION PRESCRIBED IN SECTION 15- 1402.
2. DETERMINE THE ACTUAL PRIOR YEAR'S PRIMARY PROPERTY TAX RATE FOR
THE DISTRICT.
3. DETERMNE 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 AAW THEN DIVIDING THE PRIOR YEAR'S TOTAL ACTUAL
PRIMARY TAX LEVY OF THOSE SAME DISTRICTS BY THAT QUOTIENT.
4. MULTPLY THE DIFFERENCE DETERMINED IN PARAGRAPH 1 OF THIS
SUBSECTION BY THE LESSER OF TEE TAX R.4TE.S DETERhlINED IN PARAGRAPHS 2
A373 3 OF THIS SUBSECT'ION.
B. TEE EQ.C-KTZ\TIGN &AID PRGVDED FOR IN STLITBSECTON X OF 'THIS SECTION
STrF,ALL BE YSED FOR TEE SAlW ?UEtDOSES SPECZED IN SECTION l5- 1462 ,AAW
S W ii3 E Ai'PCRT;GX33 TO XXY QU;IL;Fr'iNG ZISTXCT TUXSCANT TC SECTICN
:-i A 167.
NOTE: Underscored -- delete existin e Ian 2uaaz
CAPITAL LETTERS = ADD lWW LANGUAGE
(NOTE: TEE= \NILL BE OTHER COWCR1.IING WANGES THAT WILL =ED TO BE
MADE N THE STATUTES RELATING TO C O r v l i m COLLEGES IF THESE FUNDING
FORMULA CHANGES ARE ADOPTED.)