Prop. 486 would raise spending cap on Maricopa County community colleges

The Maricopa County Community College District (MCCCD) is asking voters to overhaul a 44-year-old limit on how much it can spend.

By the numbers: Proposition 486 would permanently adjust the district's base expenditure limit, set in 1980, by nearly $53 million.

• That would double MCCCD's 2025-26 spending cap from about $451 million to an estimated $902 million, according to the district's election publicity pamphlet.

Why it matters: Community college districts have spending caps based on student population and inflation, which voters added to the Arizona Constitution in 1980. Because of the spending cap, MCCCD sometimes can't allocate all the money it has on an annual basis without the Legislature's authorization.

• Without legislative approval, the district would be limited in its ability to provide or expand services, regardless of whether it had the money to do so.

The big picture: To find a longer-term solution, the district put Prop. 486 on the ballot earlier this year.

• If the cap isn't raised, the district must keep returning to the Legislature for exemptions, MCCCD board member Susan Bitter Smith told Axios.
• Lawmakers approved adjustments to the spending limit in 2022 and 2023, covering the district's budget through the current academic year.
• But if Prop. 486 passes, "We should not have to come back to the ballot in anybody's near-term lifespan," she said.

Zoom in: A lot has changed for MCCCD since the passage of the 1980 spending cap, Bitter Smith said.

• For starters, standard technology, like laptops and cell phones, are more expensive.
• MCCCD offers more programs than it did 44 years ago, including four-year degrees in "workforce oriented" fields.
• MCCCD has numerous semiconductor training programs, Bitter Smith said, and is seeking accreditation for an artificial intelligence degree program.

The other side: Prop. 486 has no organized opposition campaign, and no one submitted arguments against the proposal for MCCCD's election publicity pamphlet.

• Kevin McCarthy, president of the watchdog organization the Arizona Tax Research Association, said his organization has battled community college districts over the constitutionality of raising the spending cap at the Legislature but isn't opposed to the ballot measure.

State of play: Bitter Smith emphasized that Prop. 486 won't raise taxes, noting that MCCCD adopts its budgets through a public process.

• If people are unhappy with how the district uses its spending authority, board members can be voted out in the next election.
• McCarthy said he isn't concerned about increased spending under the proposed new cap because MCCCD's taxing authority is limited.

Threat level: Still, Bitter Smith worries voters could overlook the measure because it'll be near the bottom of a very lengthy ballot.

Context: The math is different, but the concept is similar to the aggregate expenditure limit for K-12 schools that has sparked legislative battles in recent years.