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SB 1839

2026-2027; higher education

57th Legislature - Second Regular Session Introduced by Dave Farnsworth and 1 co-sponsor

For 2026-2027, SB 1839 loosens the state match for the Financial Aid Trust Fund and ties STEM/workforce and operating aid for community colleges to the General Appropriations Act a

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Bill Summary · SB 1839

Summary of SB 1839 (57th Legislature, 2nd Regular Session, Arizona)

Title

2026-2027; higher education

Purpose

SB 1839 proposes adjustments to state-level funding and matching requirements for higher education, specifically targeting financial aid, community college state aid for STEM/workforce programs, and operating aid for community college districts for the 2026-2027 fiscal year. The bill makes changes to statutory requirements and aligns certain funding provisions with the general appropriations act (GAO) for that year.

Key Provisions

  1. Financial aid trust fund – state match reduction (Sec. 1)

    • Revisions to the statutory matched funding requirement for the Financial Aid Trust Fund.
    • For fiscal year 2026-2027, the bill allows the state to match each dollar raised via the surcharge on student registration fees (per §15-1642(A)) with less than the current rule of $2 in appropriations.
    • In effect, the state match requirement is loosened for that year, enabling a smaller legislatively appropriated amount to accompany the surcharge revenues.

  2. State aid for STEM and workforce programs at community colleges (Sec. 2)

    • For fiscal year 2026-2027, the amount of state aid for STEM (Science, Technology, Engineering, and Mathematics) and workforce programs in community college districts will be as specified in the General Appropriations Act (GAA).
    • This section ties the distribution or level of aid to the allocations defined in the annual GAO, rather than a fixed statutory formula.

  3. Operating state aid for community college districts (Sec. 3)

    • For fiscal year 2026-2027, operating state aid to community college districts will be as specified in the General Appropriations Act.
    • Similar to Sec. 2, this aligns operating aid levels with GAO-determined amounts for the 2026-2027 year.

Who Is Affected

  • Community college districts: The primary recipients of the changes in Secs. 2 and 3, regarding STEM/workforce program aid and operating state aid.
  • Financial Aid Trust Fund participants and students: The funding mix and reliance on the student registration fee surcharge may change due to the reduced state match in Sec. 1.
  • Arizona state budget and higher education agencies: Responsible for implementing the adjusted match and GAO-aligned appropriations for the 2026-2027 fiscal year.

Procedural/Timeline Aspects

  • Fiscal year affected: 2026-2027
  • Implementation mechanism:
    • Sec. 1 modifies the statutory match for the Financial Aid Trust Fund for the specified year.
    • Secs. 2 and 3 defer to the General Appropriations Act for determining the levels of state aid (STEM/workforce) and operating aid for community colleges for 2026-2027.
  • Status: Introduced; assigned to committee; has a stated action history with a Senate first reading on April 27, 2026.

Practical Implications

  • The state is permitting a reduced match rate for the Financial Aid Trust Fund in 2026-2027, potentially increasing reliance on surcharge-generated funds with a smaller corresponding state appropriation.
  • The exact levels of STEM/workforce and operating aid for community colleges in 2026-2027 will be determined by the General Appropriations Act, making the bill's impact dependent on GAO allocations.
  • Overall, the bill provides fiscal-year-specific flexibility by tying certain higher education funding to GAO figures rather than maintaining fixed statutory formulas for 2026-2027.

Compiled from official sources — confirm details with the bill’s official record.

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