The Arizona Expenditure Limitation
and Eastern Arizona College
What is the Arizona Expenditure Limit for Community Colleges?
On June 3, 1980, Arizonans voted in favor of Arizona Constitution Article IX, §21, which established an annual expenditure limit in the state to restrict how much a community college district can spend—even if funding is available.
Despite the passage of time, these limits remain in place and fall short of covering the actual rising costs of providing quality education.
If a community college district exceeds its expenditure limit, it is subject to penalties—based on a formula that was established 44 years ago.
The penalties associated with exceeding this limit will cause immediate and drastic cuts in educational programs and services that will likely lead to the closure of EAC’s campus.
Delivering Flexibility to Strengthen and Expand Educational Opportunities
On April 11, 2024, the Graham County Community College District Governing Board approved a resolution to forward a ballot referral to voters to double the 1980 base factor from $4.5 million to $9 million. This will allow Eastern Arizona College to use its existing budget and will not increase taxes.
The expenditure limit for Arizona community colleges is calculated each year based on expenditures in 1979-80 multiplied by factors for inflation and student population (enrollment). The mathematical formula for calculating the expenditure limit is:
*Inflation is identified as the Gross Domestic Product (GDP) Implicit Price Deflator while the student population is defined as Full Time Student Equivalents (FTSE). FTSE are students who are taking 15 credit hours a semester or the total number of credit hours provided to students in a year divided by 30.
The Facts
What Happens
…if the Base is Adjusted
Doubling the base factor allows Eastern Arizona College to continue supporting students with flexible, high-quality, and affordable education aligned with industry demands.
…if the Base is Not Adjusted
There will be immediate and drastic cuts in educational programs and services that will likely lead to the closure of EAC’s campus.