ARIZONA STATE SENATE RESEARCH STAFF TO: MEMBERS OF THE SENATE EDUCATION COMMITTEE DATE: February 14, 2023 SUBJECT: Strike everything amendment to S.B. 1400, relating to noncredit workforce training Purpose Includes noncredit workforce training full-time equivalent student enrollment (FTSE) in a community college district's (CCD's) reported FTSE used to calculate the CCD's state aid and expenditure limit. Background Statute directs the Legislature to determine a CCD's state aid and expenditure limit each fiscal year according to prescribed formulas and adjustments based on the CCD's FTSE count. The FTSE calculation method depends on if the FTSE count will be used for the state aid calculation or the expenditure limit calculation. The FTSE used to determine state aid is equal to the total of a CCD's basic actual, additional short-term and open entry, open exit and skill center FTSE count. The FTSE used to determine a CCD's expenditure limit is equal to the sum of: 1) the total of basic actual, additional short-term and open entry, open exit and skill center full-time equivalent students, calculated as prescribed, and multiplied by 0.3; and 2) the number of full-time equivalent students enrolled in approved career and technical education courses (A.R.S. Title 15, Chapter 12, Article 4). A community college course that is offered for credit must qualify for a certificate or degree, transfer to a college or university, provide skills necessary for entry-level jobs or other college courses, improve job skills, provide continuing education or meet all of the following: 1) have a formal course outline; 2) evaluate students based on course mastery; 3) require faculty to meet CCD standards; 4) base the credit hours awarded on effort required of, and competencies gained by, students; 5) require prerequisite competencies; 6) be developed through formal curriculum review; and 7) have an evaluation component. Noncredit courses are courses that do not meet the criteria established for credit courses and are the financial responsibility of a CCD (A.R.S. ยง 15-1410). If including a CCD's FTSE for noncredit workforce training in the CCD's reported FTSE results in a change to a CCD's statutory state aid, there may be a fiscal impact to the state General Fund. Provisions 1. Includes a CCD's FTSE for noncredit workforce training in the calculation of the CCD's reported FTSE used to determine a CCD's state aid and expenditure limitation. 2. Adds the FTSE for noncredit workforce training to the reported CCD FTSE counts that the Auditor General annually audits and reports to the Joint Legislative Budget Committee, the Governor's Office of Strategic Planning and Budgeting and the Economics Estimates Commission. MASON HOLLER RESEARCH ASSISTANT ANALYST LAURA BENITEZ LEGISLATIVE RESEARCH ANALYST EDUCATION COMMITTEE Telephone: (602) 926-3171 STRIKER MEMO S.B. 1400 Page 2 3. Requires noncredit workforce training FTSE to be determined by dividing the total class attended clock hours or contact hours of each person who completes vocational training by 640. 4. Deems, to be the financial responsibility of a CCD, any course that does not meet the criteria to be offered as a course for credit or as a noncredit workforce training. 5. Allows a course that is offered for credit to award credit hours or contact hours, rather than only credits, based on the effort required of and the competencies gained by the students. 6. Requires a noncredit workforce training or a career and technical education course that is offered for contact hours instead of credit hours and meets the prescribed criteria for a credit course to be: a) consistent with the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, as amended by the federal Strengthening Career and Technical Education for the 21st Century Act; b) included on the eligible training provider list maintained according to the federal Workforce Innovation and Opportunity Act; or c) requested by a business or industry. 7. Defines noncredit workforce training as a noncredit workforce training or career and technical education course that meets outlined requirements. 8. Makes technical and conforming changes. 9. Becomes effective on the general effective date.