AZ HB2025

Withhold state aid from community college districts that exceed their constitutional expenditure limitation for fiscal years 2023-2024, 2024-2025, and 2025-2026.

Impose graduated penalties based on the amount by which expenditures exceed the limitation: $5,000 for less than 5% excess, $15,000 for 5-10% excess, and $20,000 for 10-12% excess.

For excess expenditures of 12% or greater, withhold state aid according to existing law (section 41-1279.07), except provisional community college districts in counties with populations under 300,000 cannot have more than 1% of their budget withheld.

Apply the provisions retroactively to June 30, 2022.