ARIZONA STATE SENATE
Phoenix, Arizona
universities;
financial aid trust fund
Purpose
Increases general fund support of the student financial aid trust fund. Appropriates $588,800 in FY 2001-2002 and $613,800 in FY 2002-2003 from the state general fund to the Arizona Board of Regents to deposit into the financial aid trust fund.
Background
The Arizona Board of Regents (ABOR) has established a financial aid trust fund, pursuant to statute, to provide immediate aid to state university students with verifiable financial need, including students from underrepresented populations, or a unique need due to special circumstances. Monies in the fund are raised by a one percent surcharge assessed on student registration fees, and pursuant to statute, are matched on a dollar for dollar basis by legislative appropriations. The legislative appropriations come from the state general fund. State law also requires fifty percent of the monies received each year to be set aside to create an endowment for future financial need.
The Joint Legislative Budget Committee (JLBC) staff estimates that approximately $2.4 million will be raised by the surcharge in FY 2001-2002, requiring a state match of the same amount. S.B. 1384 increases the state match ratio, requiring an additional appropriation of $588,800 in FY 2001-2002 from the state general fund. Approximately $613,800 will be necessary in FY 2002-2003 due to growth in the student collection rate. Over the biennium, the impact to the state general fund of this legislation is approximately $1.2 million.
Provisions
1. Increases, from 1:1 to 1.25:1, the ratio of legislative appropriations to student surcharge collections that are deposited in the student financial aid trust fund.
2. Appropriates $588,800 in FY 2001-2002 and $613,800 in FY 2002-2003 from the state general fund to the Arizona Board of Regents to deposit into the financial aid trust fund for providing immediate aid to students with financial need. Specifies the appropriation is in addition to other legislative appropriations to the financial aid trust fund.
3. Provides for a general effective date.
1. Decreases the ration of legislative appropriations from a ration of 2:1 to 1.25:1.
2. Decreases the appropriation from $2,355,200 in FY 2001-2002 and from $2,455,200 to $613,800 in FY 2002-2003.
1. Decreases the ration of legislative appropriations from a ration of 2:1 to 1.25:1.
2. Decreases the appropriation from $2,355,200 in FY 2001-2002 and from $2,455,200 to $613,800 in FY 2002-2003.
ED 2/26/01 DPA 8-0-0-2 ED 4/5/01 DPA 6-1-1
APPROP 3/13/01 DP 11-1-0-4 APPROP 4/18/01 DPA 9-0-3
3rd Read 3/21/01 38-17-5-0
Prepared by Senate Staff
April 18, 2001