The Arizona Expenditure Limitation

What is the Arizona Expenditure Limit for Community Colleges?

On June 3, 1980, Arizonans voted in favor of Arizona Constitution Article IX, §21, which established an annual expenditure limit in the state to restrict how much a community college district can spend—even if funding is available.

If a community college district exceeds its expenditure limit, it is subject to penalties—based on a formula that was established 44 years ago.

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Delivering Flexibility to Strengthen and Expand Educational Opportunities

On March 19, 2024, the Governing Board of Maricopa Community Colleges approved a resolution to forward a ballot referral to voters to permanently adjust the base on which the expenditure limit is calculated. This will allow the community colleges to use their existing budget and is not a request for additional funds.

The expenditure limit for Arizona community colleges is calculated each year based on expenditures in 1979-80 multiplied by factors for inflation and student population (enrollment). The mathematical formula for calculating the expenditure limit is seen in the graphic below.
 

Annual expenditure limit equals fiscal year 1979–1980 expenses times full time student enrollment times inflation factor


*Inflation is identified as the Gross Domestic Product (GDP) Implicit Price Deflator while the student population is defined as Full Time Student Equivalents (FTSE). FTSE are students who are taking 15 credit hours a semester or the total number of credit hours provided to students in a year divided by 30.

 

The Math Behind the Maricopa Community Colleges Expenditure Limit

In 1980, the expenditure limit 'base' for Maricopa Community Colleges was set at the amount we spent that year to serve students. Each year after, the amount is nothing more than a number in the formula and does not represent actual dollars being spent. By permanently adjusting the base on which the expenditure limit is determined, Maricopa Community Colleges can continue supporting students across Maricopa County with flexible, high-quality, and affordable education.

Adjusting the base limit does not increase taxes or add any new funding to the budget - It simply allows Maricopa Community Colleges the flexibility to use its existing budget.

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The Facts

Voting in favor of an expenditure limit base adjustment in the November 2024 election will not raise taxes.

A lot of things have changed in the past 44 years, including the expenses of delivering current academic services and infrastructures associated with the high-impact workforce development programs that meet critical needs for Arizona’s economy.

Additional programs, such as affordable baccalaureate degree offerings and programs that support high school students have also been added to support our commitment to affordability and flexibility.

What Happens

Submissions for arguments for and against the question to be considered at the November 5, 2024, General Election Ballot Measure are now closed.

The Publicity Pamphlet will be mailed to each Arizona household with a registered voter.

For additional questions about the expenditure limit, please email expenditure.limitation@domail.maricopa.edu