15-1661

15-1661. Annual appropriation; enrollment
audit; expenditure; balance; salaries

A. There shall be appropriated in the general appropriation bill for each fiscal
year a sum of monies not less than eighty-five one-hundredths of one mill on the dollar
of the assessed valuation of all taxable property in the state for the improvement,
support and maintenance of the institutions under the Arizona board of regents'
jurisdiction, including payment of salaries, current expenses, purchase of equipment,
making necessary repairs, construction of new buildings, purchase of lands and in general
for payment of all such expenses connected with the management of the institutions under
the Arizona board of regents' jurisdiction. The department of revenue, upon compiling the
aggregate assessed valuation of all taxable property within this state, shall compute the
amount of monies so determined and certify such amount over its seal to the department of
administration and the state treasurer.

B. The full-time equivalent student enrollment reported for the previous fiscal
year by each university shall be audited annually by the auditor general. The auditor
general shall report the results of the audit to the staffs of the joint legislative
budget committee and the governor's office of strategic planning and budgeting on or
before October 15 of each year. On or before July 21 of each academic year, each
university shall provide for the previous fall semester a certified report to the auditor
general of the number of full-time equivalent students calculated by the university and a
separate report only for those students who meet the residency requirements prescribed in
section 15-1802. The university's records used to calculate full-time equivalent student
enrollment shall be provided to the auditor general in an electronic format prescribed by
the auditor general. Beginning in 2006, each university shall submit to the auditor
general a summary of its full-time equivalent student enrollment accounting policies and
procedures, compilation procedures and source records used for calculating full-time
equivalent student enrollment. These accounting policies and procedures, compilation
procedures and source records shall comply with policies developed on or before June 30,
2006 by the Arizona board of regents, in consultation with the auditor general and
reviewed by the joint legislative budget committee. These policies shall include a review
and recommendations of the necessity of minimum requirements for students enrolled in
classes to qualify for appropriations pursuant to this section, including requirements
that the class be a for-credit course that is necessary for the completion of a degree
and that the student enrolled in the course be physically present in this state at the
time the course is conducted. The basic actual full-time equivalent student enrollment
shall be counted on the forty-fifth day after the basic actual full-time equivalent
student enrollment classes begin for the fall and spring semesters, as published in the
university catalogs, and divided by two. The Arizona board of regents shall also make
recommendations of whether each professor or instructor should be required to review
class rosters and make additions or deletions as necessary. If so, class rosters that
reflect enrollment as of the forty-fifth day shall be provided by the registrar's office
to each professor or instructor for every class section. The class roster shall indicate
the course number, course title, time, instructor name and students enrolled. On the
forty-fifth day class rosters, each professor or instructor shall indicate as withdrawn
each student who has formally withdrawn from the course, and that student shall not be
counted for state aid purposes. The official forty-fifth day rosters shall include a
manual signature and date or an electronic authorization and date by the professor or
instructor and shall include the following certification:

I hereby certify that the information contained in this class roster
accurately reflects those students who are enrolled.

C. The Arizona board of regents shall also report the basic actual full-time
equivalent student enrollment for only those students who meet the residency requirements
prescribed in section 15-1802. The basic actual full-time equivalent student enrollment
for only those students who meet the residency requirements prescribed in section 15-1802
that is reported by each university for the previous fiscal year shall be annually
audited by the auditor general.

D. Students who have withdrawn or who have been withdrawn from classes as of the
forty-fifth day shall not be counted for state aid purposes. A record shall be maintained
that identifies student withdrawals by date of withdrawal, as of the forty-fifth day and
after the forty-fifth day for the entire semester.

E. Amounts appropriated as provided by subsection A shall be paid as other claims
against this state are paid.

F. The balance of appropriations as provided by subsection A at the end of the
fiscal year, if any, shall not revert to the general fund but shall be carried forward
for the continued use for which appropriated.

G. Monies appropriated to a university under the jurisdiction of the Arizona board
of regents for cost of living salary increases for university employees shall be used to
provide cost of living salary increases to all university employees including graduate
student assistants. If monies are appropriated to a university for salary increases based
on merit, the monies shall be used to provide merit increases according to the merit pay
plan adopted by the Arizona board of regents.

H. The Arizona board of regents shall determine current actual full-time equivalent
student enrollment at each of the institutions under the jurisdiction of the Arizona
board of regents. Full-time equivalent student enrollment shall be calculated by adding
the following:

1. The total number of enrolled fall and spring semester credit hours in 100-level
credit courses and 200-level credit courses divided by fifteen.

2. The total number of enrolled fall and spring semester credit hours in 300-level
credit courses and 400-level credit courses divided by twelve.

3. The total number of enrolled fall and spring semester credit hours in graduate
level credit courses divided by ten.

I. The Arizona board of regents, in its annual budget request, shall not include
funding for any student who is enrolled at an institution under the jurisdiction of the
Arizona board of regents and who has earned credit hours in excess of the undergraduate
credit hour threshold, except that the undergraduate credit hour threshold shall not
apply to students who are enrolled in a degree program that requires credit hours above
the credit threshold. For the purposes of this subsection, the undergraduate credit hour
threshold is one hundred fifty-five hours for students who attend a university under the
jurisdiction of the board in fiscal year 2006-2007, one hundred fifty hours for students
who attend a university under the jurisdiction of the board in fiscal year 2007-2008 and
one hundred forty-five hours for students who attend a university under the jurisdiction
of the board after fiscal year 2007-2008. The undergraduate credit hour threshold shall
be based on the actual full-time equivalent student enrollment counted on the forty-fifth
day after classes begin for the fall and spring semesters and any budget adjustment based
on student enrollment shall occur in the fiscal year following the actual full-time
equivalent student enrollment count. The undergraduate credit hour threshold shall not
apply to credits earned in the pursuit of up to two baccalaureate degrees, credits earned
in the pursuit of up to two state regulated licensures and certificates, credits earned
in the pursuit of teaching certification, credits transferred from a private institution
of higher education, credits transferred from an institution of higher education in
another state, credits earned at another institution of higher education but that are not
accepted as transfer credits at the university where the student is currently enrolled
and credits earned by students who enroll at a university under the jurisdiction of the
board more than twenty-four months after the end of that student's previous enrollment at
a public institution of higher education in this state.