HB 2575
Initials CH Page 1 Caucus & COW
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
Caucus & COW
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)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note