College Funding: Where Does the
Money Come From?Maderia Ellison, Director of Financial Services
Northland Pioneer CollegeJune 11, 2015
Money Doesn’t Grow on Trees
Gain a high level understanding of:
1. How the State of Arizona funds Universities & Community Colleges
2. How the funding model for Community Colleges is changing
3. How funding impacts you as an employee
Learning Objectives
FY 2014 FY 2015 FY 2016 $8.0
$8.5
$9.0
$9.5
$10.0
$9.5 $9.3
$9.1
Governor and State Legislature allocate resources based on estimated revenue collections
Billion
s
Arizona Budget - Enacted
General Fund Revenues
Arizona BudgetHigher Ed Reductions
UniversitiesFY 2016
Reduction
ASU $53.3 million
NAU $17.3 million
U of A $28.4 million
Community Colleges FY 2016
Reduction
Maricopa $8.8 million
Pima $7.1 million
Pinal $1.0 million
FY 14 FY 15 FY 16 $10.0
$20.0
$30.0
$40.0 $34.5
$32.5
$18.2
Operating State Aid
Million
sArizona Budget
Community Colleges
StateLocalStudents
Historic Funding ModelCommunity Colleges
Operating State Aid (A.R.S. §15-1466)
Support operating and maintenance expenses Funding formula is based on enrollment
STEM Funding (A.R.S. §15-1464) Support for science, technology, engineering and
mathematics (STEM) and workforce programs
Equalization Aid (A.R.S. §15-1402 and §15-1468) Support to community colleges that have an insufficient
property tax base
Community CollegesFunding Sources - State
Property Taxes (A.R.S. §42-17151)
Community Colleges have authority to levy taxes on property Primary - Support operating and maintenance
expenses Secondary – Voter approved; supports debt
Truth in Taxation (A.R.S. §15-1461.01) Increase requires hearing Maximum increase is 2% increase
Community CollegesFunding Sources - Local
Tuition
AZ Constitution state “…instruction furnished shall be as nearly free as possible”
How Students Pay for Tuition Grants - Pell implemented new restrictions July
2012 Scholarships – Limited and competitive Student Loans – Default rates are increasing Employers/Third Parties - Have limited funding
Community CollegesFunding Source -
Students
Compensation
Furlough Downsize Reorganize
Department Budgets/Programs Reductions Eliminations Defer costs
Funding Reductions Impacts to Employees
Joint Legislative Budget Committee
Arizona Budgets for Universities and Community Colleges http://www.azleg.gov/jlbc.htm
Arizona State Legislature State Constitution & Arizona Revised Statutes Financial Reports for Universities and Community Colleges http://www.azleg.gov/
Office of the Auditor General Financial Reports for Universities and Community Colleges http://www.azauditor.gov/
Websites