Bill Text: AZ HB2126 | 2016 | Fifty-second Legislature 2nd Regular | Introduced


Bill Title: Expenditure limitations; community colleges

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2016-01-14 - Referred to House GHE Committee [HB2126 Detail]

Download: Arizona-2016-HB2126-Introduced.html

 

 

 

REFERENCE TITLE: expenditure limitations; community colleges

 

 

 

State of Arizona

House of Representatives

Fifty-second Legislature

Second Regular Session

2016

 

 

HB 2126

 

Introduced by

Representatives Shope, Olson

 

 

AN ACT

 

amending sections 15‑1444, 15‑1471 and 41‑563, Arizona Revised Statutes; relating to community college districts.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 15-1444, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1444.  General powers and duties of district governing boards

A.  Except as otherwise provided, the district board shall:

1.  Maintain each community college for a period of not less than eight months in each year and, if the funds of the district are sufficient, maintain each community college for a longer period.

2.  Adopt policies in a public forum to offer programs that meet the educational needs of the population served by the community college.

3.  Enforce the courses of study prescribed by the district board.

4.  Visit each community college under its jurisdiction and examine carefully into its management, conditions and needs.

5.  Exclude from each community college all books, publications or papers of a sectarian, partisan or denominational character intended for use as textbooks.

6.  Appoint and employ a chancellor or chancellors, vice‑chancellors, a president or presidents, vice‑presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees it deems necessary. The district board may enter into employment contracts with chancellors, vice‑chancellors and presidents for a duration of more than one year but not more than five years.

7.  Determine the salaries of persons it appoints and employs.

8.  Remove any officer or employee if in its judgment the interests of education in this state require the removal.

9.  Award degrees, certificates and diplomas on the completion of courses and curriculum as it deems appropriate.

10.  Appoint or employ, if it deems necessary, police officers who shall have the authority and power of peace officers.  The police officers who have received a certificate from the Arizona peace officer standards and training board are eligible for membership in and benefits under either title 38, chapter 5, article 2 or the public safety personnel retirement system under title 38, chapter 5, article 4.

11.  Determine the location within the district of a community college and purchase, receive, hold, make and take leases of, sell and convey real or personal property for the benefit of the community colleges under its jurisdiction.

12.  Obtain insurance or be self‑insured, or a combination of insurance and self‑insurance, against loss, to the extent it is determined necessary on community college buildings of the district.  The local district shall have an insurable interest in the buildings.

B.  The district board may:

1.  Administer trusts declared or created for the district and receive by gift or devise and hold in trust or otherwise property wheresoever located, and if not otherwise provided, dispose of the property for the benefit of the district.

2.  Lease real property, as lessor or as lessee.  If a district is the lessee, the lease may contain an option to purchase the property.  The district board may adopt policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to lease property under this paragraph.  Any delegation by the district board pursuant to this paragraph may be rescinded in whole or in part at any time by the district board.

3.  Sue and be sued.

4.  Contract.  The district board may adopt such policies as are deemed necessary and may delegate in writing to the chancellor or president of the district, or their designees, all or any part of its authority to contract under this paragraph.  Any delegation of authority under this paragraph may be rescinded by the district board at any time in whole or in part.

5.  Construct, remodel and repair buildings.

6.  In conjunction with other districts, establish policies for procurement of goods and services.

7.  Provide a plan or plans for employee benefits, which may include optional retirement programs pursuant to section 15‑1451, subsection A, which allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.

8.  Accept grants or donations of monies from the United States, or from any of its agencies, departments or officers, or from persons, corporations, foundations or associations.  A district board shall deposit the monies into a specific fund or account and a district board shall administer the monies in accordance with the purpose of the grant or donation with specific policies or restrictions as described or stipulated in the grant or donation.  In the case of personal property granted or donated to or for the benefit of a community college district, a district board shall immediately transfer possession and ownership of the property to the designated district.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article Ix, section 21, constitution of arizona.

9.  Enter into intergovernmental agreements or contracts pursuant to section 11‑952.01 for participation in programs offered by public agency pools or separately contract with a trustee or board of trustees that provides a common self‑insurance program with pooled funds and risks pursuant to section 15‑382, subsection B, paragraph 2.  The district board is not required to engage in competitive procurement in order to make the decision to participate in these programs.

10.  Name a building or a group of buildings that is located on a community college campus on behalf of a person or entity that has made a significant contribution of monies or other property to the community college or the community college district.

11.  Enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit-sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through community college district research.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article Ix, section 21, constitution of arizona.

12.  Enter into an intergovernmental agreement pursuant to section 15‑1747 to participate in a reciprocity agreement subject to the terms of the reciprocity agreement.

13.  Collect auxiliary fees, including cafeteria fees, food service fees, bookstore fees and dormitory fees.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article Ix, section 21, constitution of arizona.

14.  Provide services for a tribal college.  Monies received pursuant to this paragraph are not considered local revenues for the purposes of article Ix, section 21, constitution of arizona.

C.  If a district acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the district shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest.  The lien for unpaid delinquent taxes, penalties and interest on property acquired by the district:

1.  Is not abated, extinguished, discharged or merged in the title to the property.

2.  Is enforceable in the same manner as other delinquent tax liens.

D.  In a district whose boundaries encompass a vehicle emissions control area as defined in section 49‑541, the district board shall require all out‑of‑county and out‑of‑state students to sign an affidavit at the time of course registration that the student's vehicle meets the requirements of section 49‑542.  The district board on property under its jurisdiction within a vehicle emissions control area shall prohibit the parking of those vehicles that fail to comply with section 49‑542.

E.  A community college district and a joint technical education district governing board may enter into agreements for the provision of administrative, operational and educational services and facilities.

F.  Each district may establish a program for the exchange of students between the community colleges under its jurisdiction and colleges and universities located in Sonora, Mexico.  The program may provide for in‑state tuition for Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for Arizona students enrolled or seeking enrollment in Sonora colleges and universities. The community colleges may work in conjunction with the Arizona‑Mexico commission in the governor's office to coordinate recruitment and admissions activities to provide for in‑state tuition for up to fifty Sonora students at the community colleges under the jurisdiction of the district in exchange for similar tuition provisions for up to fifty total Arizona students enrolled or seeking enrollment in Sonora colleges and universities.

G.  Each district shall facilitate transfer articulation coordination pursuant to section 15‑1824. END_STATUTE

Sec. 2.  Section 15-1471, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1471.  Expenditure limitations; overrides; permanent change in base limit

A.  A district board, on the approval of a majority of the qualified electors in the district voting at a regularly scheduled election on the first Tuesday after the first Monday in November, may authorize expenditures in excess of the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona.  The excess expenditures authorized shall be a specified percentage of the expenditure limitation.  The impact of the authorization shall appear on the ballot and in publicity pamphlets in the same manner as prescribed in section 41‑563.03.

B.  In the resolution requesting the voters to approve expenditures in excess of the district expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, the district board shall state the number of years in which the authority to expend in excess of the limitation otherwise prescribed is to be in effect.  The district board shall not request authority from the voters for a period of less than two years nor more than seven years.

C.  Any authorization of expenditures made pursuant to this section shall be used in determining a modified expenditure limitation which that is equal to the expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, increased by the specified percentage, beginning with the fiscal year immediately following the approval of the qualified electors of the district.  The district board shall not authorize expenditures in excess of the modified expenditure limitation in subsequent fiscal years unless subsequent approval for additional excess expenditures is received as provided in subsection A of this section.

D.  A DISTRICT BOARD, BY an AFFIRMATIVE VOTE OF TWO-THIRDS OF THE MEMBERS OF THE BOARD, MAY REFER to the voters in the district A PERMANENT CHANGE IN THE BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA.  A PERMANENT CHANGE IN THE BASE LIMIT MAY BE AUTHORIZED ON THE APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS IN THE DISTRICT VOTING AT A REGULARLY SCHEDULED ELECTION ON THE FIRST TUESDAY AFTER THE FIRST MONDAY IN NOVEMBER.  THE IMPACT OF THE AUTHORIZATION SHALL APPEAR ON THE BALLOT AND IN PUBLICITY PAMPHLETS IN THE SAME MANNER AS PRESCRIBED IN SECTION 41-563.03.

E.  IN THE RESOLUTION REQUESTING THE VOTERS TO APPROVE A PERMANENT CHANGE IN THE BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA, THE DISTRICT BOARD SHALL STATE ALL OF THE FOLLOWING:

1.  THE CURRENT BASE LIMIT USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION.

2.  THE PROPOSED BASE LIMIT TO BE USED TO DETERMINE THE DISTRICT EXPENDITURE LIMITATION.

3.  THE INCREASE IN EXPENDITURE LIMITATION CAPACITY GENERATED BY A CHANGE IN THE BASE LIMIT FOR THE MOST RECENT CALCULATED EXPENDITURE LIMITATION.

4.  A RATIONALE FOR THE REQUEST TO AUTHORIZE A PERMANENT CHANGE IN THE BASE LIMIT USED IN THE CALCULATION OF THE EXPENDITURE LIMITATION.

F.  ANY AUTHORIZATION OF A PERMANENT CHANGE IN THE BASE LIMIT PURSUANT TO SUBSECTION D OF THIS SECTION SHALL BE USED IN DETERMINING A MODIFIED EXPENDITURE LIMITATION PRESCRIBED PURSUANT TO ARTICLE IX, SECTION 21, CONSTITUTION OF ARIZONA, BEGINNING WITH THE FISCAL YEAR IMMEDIATELY FOLLOWING THE APPROVAL of the permanent change by THE QUALIFIED ELECTORS OF THE DISTRICT. END_STATUTE

Sec. 3.  Section 41-563, Arizona Revised Statutes, is amended to read:

START_STATUTE41-563.  Expenditure limitations; determination by the commission; definitions

A.  For political subdivisions, the commission shall:

1.  Determine the base limit level of political subdivisions for each political subdivision subject to an expenditure limitation pursuant to article IX, section 20, Constitution of Arizona.  For the purposes of this subsection and subsection D of this section, the "base limit" of each political subdivision means the amount of actual payments of local revenues by such political subdivision in fiscal year 1979‑1980 as used to determine the expenditure limitation pursuant to paragraph 4 of this subsection.

2.  Determine and report to the governing board of each political subdivision subject to an expenditure limitation pursuant to article IX, section 20, Constitution of Arizona, prior to February 1 of each year, the following:

(a)  The total of the estimated population of each such political subdivision as of July 1 of the prior year and the estimated population of any areas annexed by such political subdivisions thereafter, based on the population estimates developed by the department of economic security office of employment and population statistics.  The population of any areas annexed thereafter must be estimated as of July 1 of the prior year.

(b)  The estimated change in the GDP price deflator used to determine the expenditure limitation for the following fiscal year over the GDP price deflator used to determine the expenditure limitation for the current fiscal year.

(c)  The estimated expenditure limitation for each such political subdivision for the following fiscal year.

3.  Determine and report to the governing board of each political subdivision subject to an expenditure limitation pursuant to article IX, section 20, Constitution of Arizona, prior to April 1 of each year, the following:

(a)  The total of the population of each such political subdivision as of July 1 of the prior year and the population of any areas annexed by such political subdivisions thereafter.  The population of any areas annexed thereafter must be estimated as of July 1 of the prior year.

(b)  The estimated change in the GDP price deflator used to determine the expenditure limitation for the following fiscal year over the GDP price deflator used to determine the expenditure limitation for the current fiscal year.

(c)  The expenditure limitation for each such political subdivision for the following fiscal year.

4.  Determine the expenditure limitation for each political subdivision subject to an expenditure limitation pursuant to article IX, section 20, Constitution of Arizona, as follows:

(a)  Determine the population of the political subdivision as of July 1, 1978.

(b)  Determine the total population of the political subdivision as required by paragraph 3, subdivision (a) of this subsection.

(c)  Divide the population determined in subdivision (b) of this paragraph by the population determined in subdivision (a) of this paragraph.

(d)  Determine the estimated or actual GDP price deflator for the 1978 calendar year.

(e)  Determine the estimated GDP price deflator for the calendar year immediately preceding the fiscal year for which the expenditure limitation is being determined.

(f)  Divide the GDP price deflator determined in subdivision (e) of this paragraph by the GDP price deflator determined in subdivision (d) of this paragraph.

(g)  Multiply the amount determined in paragraph 1 of this subsection for the political subdivision by the quotient determined in subdivision (c) of this paragraph and multiply the resulting product by the quotient determined in subdivision (f) of this paragraph.

5.  If any annexation, consolidation or change in the boundaries of a political subdivision occurs after the determination and report required by paragraph 3 of this subsection but before July 1 of the current year, the commission, as promptly as feasible, shall redetermine the total population, calculated in paragraph 4, subdivision (b) of this subsection, of the political subdivisions affected by the annexation, consolidation or change in boundaries.  The commission shall determine respective amended expenditure limitations based on the amended population, which shall be promptly reported to the governing board of each of the affected political subdivisions.  The political subdivisions affected shall use the revised expenditure limitation if it is received before the annual financial statement and estimate of expenses is prepared as required by section 42‑17101.

6.  In the event of the creation of a new city or town, the base limit of the new city or town shall be determined by multiplying the average amount of actual fiscal year 1979‑1980 per capita payments of local revenues for all cities and towns within the county in which the new city or town is located by the population of the new city or town.

7.  In the event of the division of a county into two or more new counties, determine the expenditure limitation for each of the new counties or the consolidation of counties, pursuant to article IX, section 20, Constitution of Arizona, using one of the following two methods.  The board of supervisors of each new county upon the affirmative vote of two‑thirds of the members of the board of supervisors, on or before February 1 following the county's establishment, shall adopt one of the expenditure limitations determined:

(a)  Method one:

(i)  Determine the existing county which that has a population closest to the population of the new county as of July 1 for the fiscal year preceding the fiscal year for which the expenditure limit is being determined.

(ii)  Determine the per capita expenditure limit for the existing county determined in item (i) of this subdivision based on the amount determined in paragraph 3, subdivision (c) of this subsection for the first full fiscal year following the establishment of the new county government.

(iii)  Multiply the per capita amount determined in item (ii) of this subdivision by the population of the new county as of July 1 in the fiscal year in which the new county government is established.  The amount thus determined is the expenditure limit for the new county for the first full fiscal year following its establishment.

(iv)  Determine a base limit for the new county which that will yield the new expenditure limit determined in item (iii) of this subdivision for the first full fiscal year following the establishment of the new county government.

(b)  Method two:

(i)  Determine the per capita expenditure limit of the old county or counties for the last full fiscal year prior to the establishment of the new county government based upon on the amount determined in paragraph 3, subdivision (c) of this subsection.

(ii)  Multiply the per capita amount determined in item (i) of this subdivision by the population of the new county as of July 1 in the fiscal year in which the new county government is established.  The amount thus determined is the expenditure limit for the new county for the first full fiscal year following its establishment.

(iii)  Determine a base limit for the new county which that will yield the new expenditure limit determined in item (ii) of this subdivision for the first full fiscal year following the establishment of the new county government.

8.  If the governing board of a political subdivision authorizes expenditures in excess of the expenditure limitation determined pursuant to paragraph 4 of this subsection as provided in article IX, section 20, subsection (2), paragraph (b), subdivision (i), Constitution of Arizona, the expenditure limitation for such political subdivision for the following fiscal year shall be reduced by the amount of expenditures in excess of the limitation, unless the governing board has held an election as provided in article IX, section 20, subsection (2), paragraph (b), subdivision (ii), Constitution of Arizona, and the excess expenditure has been approved by a majority of the qualified electors voting in such election.

9.  If the citizens of a political subdivision approve an increase or decrease in the expenditure limitation as provided in article IX, section 20, subsection (6), Constitution of Arizona, the base limit of a political subdivision shall be adjusted by the commission such that the expenditure limitation of the political subdivision for the fiscal year following approval reflects the approved increase or decrease.

B.  For community college districts, the commission shall:

1.  Determine the base limit of each community college district subject to an expenditure limitation pursuant to article IX, section 21, Constitution of Arizona.  For the purposes of this subsection and subsection D of this section, the "base limit" of each community college district means the amount of expenditures of local revenues in fiscal year 1979‑1980 as used to determine the expenditure limitation pursuant to paragraph 3 of this subsection.

2.  Determine and report to the governing board of each community college district prior to February 1 of each year the following:

(a)  The estimated student population, utilizing the procedure prescribed in section 15‑1466.01, of each community college district for the following fiscal year.

(b)  The estimated change in the GDP price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of this section.

(c)  The expenditure limitation for each community college district for the following fiscal year.

(d)  The modified expenditure limitation as prescribed in section 15‑1471, if applicable.

3.  2.  Determine and report to the governing board of each community college district prior to April 1 of each year the following:

(a)  The estimated student population, utilizing the procedure prescribed in section 15‑1466.01, of each community college district for the following fiscal year. using any of the following methods as selected by the governing board of the community college district:

(i)  THE AVERAGE OF THE FIVE MOST RECENTLY PUBLISHED FULL-TIME EQUIVALENT STUDENT REPORTs PRODUCED BY THE AUDITOR GENERAL.

(ii)  THE MOST RECENT PUBLISHED FULL-TIME EQUIVALENT STUDENT REPORT PRODUCED BY THE AUDITOR GENERAL.

(iii)  IF approved BY THE JOINT LEGISLATIVE BUDGET COMMITTEE, AN AMOUNT NOT TO EXCEED FIVE PERCENT more THAN THE MOST RECENT PUBLISHED FULL-TIME EQUIVALENT STUDENT REPORT PRODUCED BY THE AUDITOR GENERAL.

(b)  The estimated change in the GDP price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of this section.

(c)  The expenditure limitation for each community college district for the following fiscal year.

(d)  The modified expenditure limitation as prescribed in section 15‑1471, if applicable.

4.  3.  Determine the expenditure limitation for each community college district, as follows:

(a)  Determine the student population of each community college district for fiscal year 1979‑1980 using the definition of full‑time equivalent student in section 15‑1401 in 1979‑1980, except that if a redefinition of full‑time equivalent student changes the number of semester credit units per semester from fifteen units, the student population for the 1979‑1980 base year shall be recalculated using the new number of units.

(b)  Determine the estimated student population of each community college district for the fiscal year for which the expenditure limitation is being determined using the definition of full‑time equivalent student in section 15‑1401.

(c)  Divide the student population determined in subdivision (b) of this paragraph by the student population determined in subdivision (a) of this paragraph.

(d)  Determine the estimated or actual GDP price deflator for the 1978 calendar year.

(e)  Determine the estimated GDP price deflator for the calendar year immediately preceding the fiscal year for which the expenditure limitation is being determined.

(f)  Divide the GDP price deflator determined in subdivision (e) of this paragraph by the GDP price deflator determined in subdivision (d) of this paragraph.

(g)  Multiply the amount determined in paragraph 1 of this subsection for the community college district by the quotient determined in subdivision (c) of this paragraph and multiply the resulting product by the quotient determined in subdivision (f) of this paragraph.

5.  4.  In the event of an annexation, the creation of a new community college district or a consolidation or change in the boundaries of a community college district, the base limit of a community college district shall be adjusted by the commission according to the following guidelines:

(a)  In the event of the creation of a new community college district, the base limit of the community college district shall be determined by multiplying the average amount of 1979‑1980 per capita expenditures of local revenues for all community college districts within the state by the student population of the new community college district.  The expenditure limit of the county in which the new community college district is located shall be reduced by the amount paid to other community college districts for tuition in the fiscal year preceding the fiscal year in which the new community college district is created.

(b)  In the case of an annexation, consolidation or change in the boundaries of a community college district, the base limit of a community college district shall be adjusted by the commission to reflect the change by increasing the base limit of the community college district gaining the newly included territory and decreasing the base limit of the community college district losing the territory.

(c)  If an existing community college district consolidates with a contiguous county not part of a community college district, the commission shall:

(i)  Increase the base limit of the existing community college district by an amount equal to the amount of revenue which that would have been generated by applying the primary property tax rate of the existing community college district in the immediately prior year to the limited assessed valuation of the contiguous county in the immediately prior year.

(ii)  Decrease the base limit of the contiguous county by the amount of reimbursement prescribed by section 15‑1469, subsection B, paragraph 1, paid by such county in the 1979‑1980 base year, except that no decrease shall be made to the base limit of such county if the reimbursement prescribed by section 15‑1469, subsection B, paragraph 1 in the immediately prior year was paid by the state pursuant to section 15‑1469.01.

(d)  In the case of a decrease in service boundaries of a community college district, the base limit of the community college district shall be reduced by the commission to reflect the amount attributable to the service area in fiscal year 1979‑1980 and the base student population of the community college district shall be reduced by the commission to reflect fiscal year 1979‑1980 student population attributable to the service area. The adjusted base limit and the adjusted fiscal year 1979‑1980 student population shall be used in determining the expenditure limitation for the community college district in the first year in which the service boundaries are diminished and in each subsequent year.

C.  For school districts, the commission shall:

1.  Determine the base limit of school districts subject to the expenditure limitation prescribed by article IX, section 21, subsection (2), Constitution of Arizona.  For the purposes of this subsection and subsection D of this section, "base limit" means the total amount of expenditures of local revenues of all school districts in fiscal year 1979‑1980 as used to determine the expenditure limitation pursuant to paragraph 4 of this subsection.

2.  Determine and report to the legislature prior to March 1 of each year the following:

(a)  The estimated total student population of all school districts for the current year.

(b)  The estimated change in the GDP price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of this section.

(c)  The estimated aggregate expenditure limitation for all school districts for the following fiscal year.

3.  Determine and report to the legislature, prior to May 1 of each year, the following:

(a)  The total student population of all school districts for the current year.

(b)  The estimated change in the GDP price deflator as prescribed in subsection A, paragraph 2, subdivision (b) of this section.

(c)  The aggregate expenditure limitation for all school districts for the following fiscal year.

4.  Determine the aggregate expenditure limitation for all school districts as follows:

(a)  Determine the aggregate student population of all school districts for the school year 1978‑1979.

(b)  Determine the total student population of all school districts for the current year.

(c)  Divide the aggregate student population determined in subdivision (b) of this paragraph by the aggregate student population in subdivision (a) of this paragraph.

(d)  Determine the estimated or actual GDP price deflator for the 1978 calendar year.

(e)  Determine the estimated GDP price deflator for the calendar year immediately preceding the fiscal year for which the aggregate expenditure limitation is being determined.

(f)  Divide the GDP price deflator determined in subdivision (e) of this paragraph by the GDP price deflator determined in subdivision (d) of this paragraph.

(g)  Multiply the amount determined in paragraph 1 of this subsection by the quotient determined in subdivision (c) of this paragraph and multiply the resulting product by the quotient determined in subdivision (f) of this paragraph.

D.  In the case of a transfer of all or any part of the cost of providing a governmental function, pursuant to article IX, section 20, subsection (4), Constitution of Arizona, or article IX, section 21, subsection (5), Constitution of Arizona, the base limit of political subdivisions, community college districts or school districts, whichever is applicable, shall be adjusted by the commission to reflect the transfer by increasing the base limit of the political subdivision, community college district or school district to which the cost is transferred and decreasing the base limit of the political subdivision, community college district or school district from which the cost is transferred by the amount of the cost of the transferred governmental function.

E.  For the purposes of this section:

1.  "Commission" means the economic estimates commission.

2.  "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce for the four quarters of the calendar year.

3.  "Political subdivision" means any county, city, including any charter city, or town.

4.  "Population" shall be defined pursuant to article IX, section 20, subsection (3), paragraph (f), Constitution of Arizona.

5.  "Student population" shall be defined pursuant to article IX, section 21, subsection (4), paragraph (e), Constitution of Arizona. END_STATUTE

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