Bill
HB 4146
The bill ties higher education funding to the FY 2027 General Appropriations Act, adjusting the Financial Aid Trust Fund match and reaffirming STEM, workforce, and operating aid as
HB 4146 (2026-2027; higher education) – Arizona, 57th Legislature, 2nd Regular Session
Purpose and overall intent
- The bill contains budget-related provisions for higher education to implement the FY 2027 General Appropriations Act (the state budget). It adjusts certain funding mechanisms and confirms existing program designations for community colleges within the budget context.
Key provisions and changes
1) Financial Aid Trust Fund – state match
- Section 1: For FY 2026-2027, the statute clarifies that each dollar raised by the surcharge on student registration fees (as authorized under the Financial Aid Trust Fund) may be matched by less than $2 in state appropriations. In other words, the legislature is permitted to provide a match amount smaller than the prior $2-for-$1 ratio, maintaining the permutation that state funds may not fully double the private/fee-derived amounts.
- Purpose: This affects how much state funding will accompany revenues generated by the student registration fee surcharge, influencing the overall funding available for the financial aid trust.
2) State aid for STEM, workforce, and related programs (community colleges)
- Section 2: For FY 2026-2027, state aid for science, technology, engineering, and mathematics (STEM) and workforce programs for community college districts is “as specified in the general appropriations act.”
- Section 3: For FY 2026-2027, operating state aid for community college districts is also “as specified in the general appropriations act.”
- Purpose: These sections reaffirm that the specific allocation levels for STEM/ workforce programs and general operating aid are governed by the main budget bill (the General Appropriations Act), rather than by separate statutory formulas in this act.
3) Administrative and procedural notes
- The bill is described as session law for FY 2027, meaning its provisions are intended to become effective as part of the budget enactments and operate within that fiscal year’s legal framework.
- The bill retains alignment with ongoing statutory authorities, ensuring that funding levels for community colleges and related programs follow the state budget as set in the General Appropriations Act.
Affected entities and impacts
- Financial Aid Trust Fund: The match level tied to surcharge revenues could be adjusted downward from the prior “up to $2” per dollar, potentially reducing state-matching funds available for financial aid.
- Community college districts: State aid for STEM, workforce programs, and general operating support will continue to be determined by the General Appropriations Act, with this bill signaling no independent statutory changes beyond those budgetary specifications.
- Students and higher education institutions: Indirect impact through the funding levels that support financial aid, STEM/workforce programs, and operating funding for community colleges.
Timeline and procedural aspects
- Effective as session law for FY 2027 once enacted.
- Action history indicates introduction and first reading occurred in April 2026; subsequent steps would follow standard Arizona legislative process toward passage and implementation in the FY 2027 budget.
Notes
- The bill is part of the annual budget process, coordinating statutory provisions with the General Appropriations Act to implement the state’s higher education funding for the 2027 fiscal year.
Compiled from official sources — confirm details with the bill’s official record.
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