Modifying provisions related to the distribution formula for general state financial aid to community colleges and including applicability provisions

The bill provides that funds appropriated by the general assembly to the department of education for general financial aid to community colleges shall be allocated to each community college for the community colleges to provide the highest quality educational opportunities and services to the greatest number of students.18C to provide that the moneys that the general assembly appropriates from the general fund of the state to the department of education for community college purposes for general state financial aid shall be allocated to each community college by the department pursuant to the terms of a distribution formula that is approved by at least of the presidents and chancellors of the community colleges. The presidents and chancellors must, on or before October of each year, establish such distribution formula for the succeeding budget year. However, the distribution formula shall not allocate funding to a community college that is below the general state financial aid the community college received in any previous budget year, unless there is a reduction in the base funding allocation. If the presidents and chancellors of the community colleges fail to approve a distribution formula, the bill requires the department of education to establish the distribution formula for general state aid to the community colleges for the succeeding budget year. When determining the distribution formula, the department of education is required to consider the enrollment and combined support for each community college. Additionally, the bill provides that the distribution formula established by the department of education shall not allocate funding to a community college that is below the general state financial aid the community college received in any previous budget year, unless there is a reduction in the base funding allocation. Current law provides that adjustments to community college state general aid allocations are required to be made based on the outcomes of audits of student enrollment. The bill strikes this provision. The bill applies to budget years beginning on or after July 1, 2025.