Arizona 2022 2022 Regular Session

Arizona House Bill HB2848 Comm Sub / Analysis

Filed 06/21/2022

                      	HB 2848 
Initials CH 	Page 1 	Caucus & COW 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-fifth Legislature 
Second Regular Session 
House: APPROP DP 8-5-0-0 
 
HB 2848: higher education; 2022-2023 
Sponsor: Representative Cobb (with permission of Committee on Rules), LD 5 
Caucus & COW 
Overview 
Contains provisions relating to higher education needed to implement the FY 2023 budget. 
History 
Arizona Financial Aid Trust Fund (AFAT) 
AFAT provides immediate aid to students with verifiable financial need. 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 (A.R.S. §§ 15-1642, 15-1670). For FY 2023, student 
registration fees range from $84 to $112 for students attending main campuses (part-time 
students pay half these amounts) (JLBC Baseline). Statute requires each dollar raised pursuant 
to student registration fees to be matched by $2 appropriated by the Legislature. Laws 2021, 
Chapter 410 suspended this required match and Laws 2021, Chapter 408 appropriated 
$10,041,200 in total to the three universities for AFAT.  
Science, Technology, Engineering and Mathematics (STEM) and Workforce Programs 
State Aid 
Statute establishes a formula that 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). Laws 2021, Chapter 410 
suspended this statutory formula and Laws 2021, Chapter 408 appropriated a total of $4,549,900 
for STEM and workforce programs state aid. Laws 2019, Chapter 263 appropriated $1,600,000 
and $400,000 to Maricopa and Pima CCDs, respectively, for STEM and workforce development 
in FYs 2020-2022. 
Operating State Aid  
Statute directs the Legislature to 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). Laws 2021, Chapter 410 suspended this statutory 
formula and Laws 2021, Chapter 408 appropriated a total of $15,281,400 in operating state aid.  
Provisions 
1. As session law for FY 2023, 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 2023, declares STEM and workforce programs state aid and operating 
state aid for CCDs are as specified in the General Appropriations Act. (Sec. 2, 3) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note