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 This outdated formula restricts how much of the College’s existing revenue can be used each year, even when those funds are already collected locally and dedicated to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.
A voter-approved base limit expense adjustment in November 2026 would modernize this formula and allow GCC to use its current funding responsibly and effectively, without raising 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.
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
Annual Expenditure Limit = 1979/80 Base Limit Expenses × FTSE × Inflation Factor
FTSE represents 30 credits completed by one or more students.
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.
- $4.56 million dollars: GCC’s expenditure limitation
- $9.9 million dollars: GCC’s total budget
- $6.2 million dollars in local property taxes
- $2.5 million dollars in state assistance and grants
- $1.2 million dollars in other revenue
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 and would not create new revenue. 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
- Limit enrollment
- Delay or cancel workforce initiatives
- Restrict investments in technology and accreditation
- Operate below its available revenue capacity
These impacts would directly affect students, employers, and the region’s economic future.
Modernizing the 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, 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.
