AZ HB2558

Amends Arizona's community college district financing laws to establish a new reimbursement structure where both counties and the state share costs for out-of-county students.

Requires the state general fund to reimburse community college districts for the portion of out-of-county student costs not covered by county reimbursement, calculated by subtracting county payments from total operational costs.

County reimbursement amount is determined by multiplying the per-student cost (derived from the district's primary property tax levy) by the number of full-time equivalent out-of-county students.

Modifies section 42-17203 to clarify that community college reimbursement levies for out-of-county students are based on the new shared state-county funding formula rather than the previous county-only model.

Updates the Joint Legislative Budget Committee's May 15 annual reporting requirement to notify both counties and the state of their respective reimbursement obligations under the new two-tier funding system.