Expenditure Limit

Modernizing the Expenditure Limit & Base Adjustment

Gila Community College operates under a state expenditure limitation created more than 45 years ago. This outdated formula restricts how much of the College’s existing revenue can be used each year, even when those funds are already collected locally and dedicated to serving students, employers, and communities.

On November 3, 2026, Proposition 425 will ask Gila County voters to consider a permanent base limit expenditure adjustment of $5,051,588. This will enable GCC to use existing funds to continue providing educational programs in Gila County, and avoid penalties without requesting additional funding or impacting your taxes.

Adjusting the funding base will also enable GCC to keep tuition at one of the lowest rates in the state, offer free tuition for Gila County residents 55 and over, and supplement external sources of private and governmental financial aid in the form of GCC scholarships and grants.

Most Frequently Asked Questions

In 1980, Arizona voters approved a constitutional spending cap that limits how much each community college district may spend annually. The limit is calculated using a formula based on:

  • 1979/80 base-year expenditures
  • Inflation, measured by the GDP Implicit Price Deflator
  • Full-Time Student Equivalent (FTSE) enrollment

The formula adjusts only for inflation and enrollment. It does not account for rising demand for higher education, rapid technological change, modern workforce training needs, online and hybrid learning, rural delivery costs, or accreditation requirements. As a result, the formula no longer reflects the true cost of providing high-quality education and essential services in Gila County.

GCC is committed to fiscal responsibility and long-term stability. However, the current expenditure limitation restricts the College’s ability to use the funding it already receives from local taxpayers and other revenue sources.

The expenditure limitation was established using spending levels from 1979/80, a time when Gila Community College operated on a much smaller scale and before the Payson Campus was built. Because the formula is tied to that early baseline, it does not reflect the facilities, programs, and services that have since been added to meet the needs of Gila County including the operation of the Regional Training Center in Globe/Miami.

If the College exceeds the limit, the State of Arizona may impose significant penalties, including fines up to five times the amount of excess expenditures or withholding one-third of state aid.

Modernizing the base limit ensures GCC can continue serving students and employers without risking these penalties.

With an updated base limit, GCC can:

  • Maintain and expand academic and workforce programs
  • Support dual enrollment and early College pathways
  • Invest in technology, facilities, and student service
  • Meet accreditation requirements
  • Serve more students across Gila County
  • Strengthen partnerships with local employers
  • Continued to offer tuition waivers to residents 55+ years

Annual Expenditure Limit = 1979/80 Base Limit Expenses × FTSE × Inflation Factor

  • FTSE represents 30 credits completed by one or more students per year.
  • Inflation is measured using the GDP Implicit Price Deflator.

 

Because the formula is tied to 1979/80 spending levels, it does not reflect today’s educational landscape or the needs of a modern rural community college.

2026 Adopted Fiscal Year Budget

$9.9 million dollars: GCC’s total budget 

 

2026 Revenue

  • $6.2 million dollars in local property taxes
  • $2.5 million dollars in state assistance and grants
  • $1.2 million dollars in other revenue

 

2026 Expenditure Limitation

$4.56 million dollars: GCC’s expenditure limitation

This means GCC can legally spend less than half of the revenue it receives to serve Gila County.

A base limit expense adjustment would not increase taxes or generate a request for additional funding. It simply modernizes a 45-year-old formula and allows GCC to use the funding it already receives. It protects the college from state penalties and supports long-term financial stability.

This adjustment ensures GCC can continue offering high-quality programs and services that meet the needs of students, employers, and communities.

Other Arizona counties have recently approved similar adjustments with strong voter support, including Maricopa County, Graham County, and Pima Community College. These approvals reflect a statewide recognition that the 1979/80 formula no longer meets today’s educational and workforce needs.

If the base limit is not adjusted, GCC may be forced to:

  • Reduce programs and services
  • Discontinue tuition waivers and discounts
  • Delay or cancel workforce initiatives
  • Restrict investments in technology and accreditation
  • Operate below its available revenue capacity

 

These potential limitations would directly impact students, employers, and the region’s economic future.

Modernizing the 1980 expenditure limitation ensures GCC can continue to provide affordable, local higher education, prepare students for high-demand careers, support rural learners through flexible delivery models, continue to provide tuition waivers to students 55 and over, and contribute to the economic vitality of Gila County.

Gila Community College remains committed to transparency, responsible stewardship, and serving the people of Gila County with excellence.

Please review the following requirements carefully:

The deadline for submitting an argument for or against Gila County Community College District Proposition 425 for the November 3, 2026 General Election is 5:00 PM on Wednesday, August 5, 2026.

The statement cannot exceed 300 words.

Name and signature are required.  Any title(s) in addition to the name will count toward the 300-word limit.

The signature must take place in the presence of a notary, and must be subscribed and affirmed by the notary’s seal.

In accordance with A.R.S. § 19-124, if an argument is sponsored by an organization, it must include the sworn statements of two executive officers of that organization. If an argument is sponsored by a political committee, it must include the sworn statement of the committee’s chair or treasurer.

Contact Information: The address, phone, and Email of the individual must be included. This information is not printed in the Publicity Pamphlet but does become a public record.

Each individual argument must be delivered by mail or email to:

Gila County School Superintendent Office

Attn: Cindy Fisher-Smith

1400 E Ash St

Globe, AZ 85501

Please note:

  • Notarization of an individual’s argument for or against is required by law.
  • The version received first will be considered the final statement submitted.
  • No more than 10 arguments for or 10 arguments against will be published in the Publicity Pamphlet.
  • A Publicity Pamphlet will be mailed to all Arizona households with a registered voter. The pamphlet will include the full text of the question appearing on the ballot, as well as arguments submitted for and against the question to be considered.
  • Arguments are published in the order they are received.

 

Additional information can be found at: www.voteyesonprop425.com.