1. Maderia Ellison, Director of Financial Services Northland Pioneer College June 11, 2015

2.  Money Doesn’t Grow on Trees

3.   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

4.  Arizona Budget - Enacted General Fund Revenues

5.  Arizona Budget Higher Ed Reductions Universities FY 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

6.  Arizona Budget Community Colleges

7.  Historic Funding Model Community Colleges

8.   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 Colleges Funding Sources - State

9.   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 Colleges Funding Sources - Local

10.   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 Colleges Funding Source - Students

11.   Compensation  Furlough  Downsize  Reorganize  Department Budgets/Programs  Reductions  Eliminations  Defer costs Funding Reductions Impacts to Employees

12.   Joint Legislative Budget Committee  Arizona Budgets for Universities and Community Colleges  http://www.azleg.gov/jlbc.htm 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/ http://www.azleg.gov/  Office of the Auditor General  Financial Reports for Universities and Community Colleges  http://www.azauditor.gov/ http://www.azauditor.gov/ Websites