EXPENDITURE LIMIT
Learn the importance to our community colleges
PROPOSITION 486 – The Arizona Expenditure Limit and Maricopa Community Colleges
What is the Expenditure Limit?
In 1980, Arizona voters established an expenditure limit to restrict how much a community college district, including Maricopa Community Colleges, can spend—even if funding is available.
How does it impact Maricopa Community Colleges?
The Expenditure Limit prohibits community colleges from spending money even if we have it in our budget. It is a cap that was created 44 years ago (in 1980) that no longer reflects the expenses associated with our current programs, services, and infrastructure.
For example, the expenditure limit does not account for increases in:
- Workforce Programs
- Technology Infrastructure (e.g. internet and computers)
- Career and Technical EducatIon (CTE)
- Non-credit Training
- Baccalaureate Degrees
- Programs That Serve High School Students
How is it Calculated?
The expenditure limit for Arizona community colleges is calculated each year based on certain expenditures in 1979-80 multIplied by factors for inflatIon and student populatIon (enrollment).
The mathematical formula for calculating the expenditure limit is – Expenses from the 1979/1980 Fiscal Year, multiplied by the Full-Time Student Equivalency Factor (FTSE), multiplied by the Inflation Factor.
FTSE is a full-time student taking 15 credit hours a semester. Today, the average Maricopa student is part-time, taking 8.1 credit hours while balancing work and life responsibilities. Each student requires the same level of support as a full-time student.
What happens if the base is not adjusted?
A community college district that exceeds its expenditure limitation is subject to penalties based on the percentage of the excess expenditures. With no change to the expenditure limit base, Maricopa Community Colleges will need to cut up to $100 million in expenses.
What happens if the base is adjusted?
Permanently adjusting the base on which the expenditure limit is calculated allows Maricopa Community Colleges to continue supporting students across Maricopa County with high-quality, flexible, and affordable education.
How can we adjust the base?
In spring of 2024, the Governing Board of Maricopa Community Colleges approved a resolution to forward Proposition 486 to voters to permanently adjust the base on which the expenditure limit is calculated. Prop 486 will be included in the upcoming November 5, 2024 election. Adjusting the base limit will allow the community colleges to use their existing budget.
Key points
- Prop 486 is not a request for additional funds
- Prop 486 is not asking for a tax increase
- Prop 486 is not asking to get rid of the expenditure limit
- Prop 486 is a request to permanently adjust the base of the expenditure limit formula to allow us to spend money we already have
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