AZ HB2364

Removes requirement for universities to deposit tuition, registration fees, and other revenues included in the operating budget to the state treasurer; instead allows universities to retain these revenues for expenditure as approved by the board.

Requires universities to submit an annual report to the joint legislative budget committee detailing expenditure of all tuition revenues for the prior fiscal year by October 1 each year.

Establishes a performance-based funding model for universities to be adopted by the Arizona Board of Regents by June 30, 2015, using metrics including degrees conferred, completed student credit hours, and externally funded research and public service spending.

Requires the Board of Regents to use the performance-based funding model when preparing annual budget requests and to make the model available to the governor's office and legislature for budget preparation.

Removes provisions creating a separate process for adopting operating budgets equal to appropriated general fund monies plus tuition and fee revenues approved by the board.