AZ HB2017

Establishes penalties for community college districts that exceed their constitutional expenditure limitation in fiscal year 2022-2023 through withholding of state aid.

Withholds $5,000 in state aid if excess expenditures are less than 5% of the limitation.

Withholds $15,000 if excess expenditures are 5% to less than 10% of the limitation, and $20,000 if 10% to less than 12%.

Withholds amounts calculated under existing law (A.R.S. § 41-1279.07) for excess expenditures of 12% or more, except provisional community college districts in counties with populations not exceeding 300,000 are capped at 1% of their budget.

Applies retroactively to June 30, 2021.