ARIZONA STATE BOARD FOR PRIVATE POSTSECONDARY …

ARIZONA STATE BOARD FOR PRIVATE POSTSECONDARY

EDUCATION

FY 2022 BUDGET REQUEST

Submitted By: Kevin LaMountain, Executive Director September 1, 2021

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Sources and Uses of Funds

Agency: State Board for Private Postsecondary Education

Fund: PV2056 Private Postsecondary Education

Cash Flow Summary Actual Estimate Estimate

FY 2020 FY 2021 FY 2022

Balance Forward from Prior Year 262.4 241.6 150.3

Revenue (From Revenue Schedule) 373.5 345.0 345.0

Total Available 635.9 586.6 495.3

Total Appropriated Disbursements 394.3 436.3 436.3

Total Non-Appropriated Disbursements 0.0 0.0 0.0

Balance Forward to Next Year 241.6 150.3 59.0

Appropriated Expenditure Actual

FY 2020 Estimate

FY 2021 Estimate

FY 2022 Expenditure Categories

Personal Services 223.8 247.7 247.7

Employee Related Expenses 82.9 89.8 89.8 Prof. And Outside Services 13.8 14.0 14.0 Travel - In State 0.0 0.0 0.0 Travel - Out of State 1.0 2.0 2.0

Food 0.0 0.0 0.0 Aid to Organizations and Individuals 0.0 0.0 0.0 Other Operating Expenses 70.8 77.0 77.0 Equipment 2.0 5.8 5.8 Capital Outlay 0.0 0.0 0.0 Debt Service 0.0 0.0 0.0 Cost Allocation 0.0 0.0 0.0 Transfers 0.0 0.0 0.0 Expenditure Categories Total: 394.3 436.3 436.3

Non-Lapsing Authority from Prior Years 0.0 0.0 0.0 Administrative Adjustments 0.0 0.0 0.0 Capital Projects (Land, Buildings,Improvements) 0.0 0.0 0.0 Appropriated 27th Pay Roll 0.0 0.0 0.0 Legislative Fund Transfers 0.0 0.0 0.0 IT Project Transfers 0.0 0.0 0.0

Appropriated Expenditure Total: 394.3 436.3 436.3

Apppropriated FTE: 4.0 4.0 4.0

Non-Appropriated Expenditure Actual

FY 2020 Estimate

FY 2021 Estimate


Personal Services 0.0 0.0 0.0 Employee Related Expenses 0.0 0.0 0.0 Prof. And Outside Services 0.0 0.0 0.0 Travel - In State 0.0 0.0 0.0 Travel - Out of State 0.0 0.0 0.0 Food 0.0 0.0 0.0 Aid to Organizations and Individuals 0.0 0.0 0.0 Other Operating Expenses 0.0 0.0 0.0 Equipment 0.0 0.0 0.0 Capital Outlay 0.0 0.0 0.0 Debt Service 0.0 0.0 0.0 Cost Allocation 0.0 0.0 0.0 Transfers 0.0 0.0 0.0 Expenditure Categories Total: 0.0 0.0 0.0

Cap Transfer due to Fund Balance 0.0 0.0 0.0 Residual Equity Transfer 0.0 0.0 0.0 Prior Commitments or Obligated Expenditures 0.0 0.0 0.0 Non Appropriated 27th Pay Roll 0.0 0.0 0.0

Non-Appropriated Expenditure Total: 0.0 0.0 0.0 Non-Apppropriated FTE: 0.0 0.0 0.0

Date Printed: 8/30/2020 6:14:54 PM All dollars are presented in thousands (not FTE). 6

Sources and Uses of Funds Agency: State Board for Private Postsecondary Education

Fund Description

OSPB: Revenues from annual license filing fees paid by private postsecondary education institutions that are based cn each institution's gross tuition revenues. License fees are used to support the regulatory activities of the Board.

Date Printed: 813012020 6:14:54 PM All dollars are presented in thousands (not FTE). 7

Sources and Uses of Funds


Fund: PV3027 Student Tuition Recovery

Cash Flow Summary Actual Estimate Estimate

FY 2020 FY 2021 FY 2022

Balance Forward from Prior Year 149.6 87.7 (0.6)

Revenue (From Revenue Schedule) 272.4 176.0 175.7

Total Available 422.0 263.7 175.1

Total Appropriated Disbursements 0.0 0.0 0.0

Total Non-Appropriated Disbursements 334.3 264.3 264.3

Balance Forward to Next Year 87.7 (0.6) (89.2)

Appropriated Expenditure Actual

FY 2020 Estimate

FY 2021 Estimate


Personal Services 0.0 0.0 0.0 Employee Related Expenses 0.0 0.0 0.0

Prof. And Outside Services 0.0 0.0 0.0

Travel - In State 0.0 0.0 0.0

Travel - Out of State 0.0 0.0 0.0

Food 0.0 0.0 0.0

Aid to Organizations and Individuals 0.0 0.0 0.0

Other Operating Expenses 0.0 0.0 0.0

Equipment 0.0 0.0 0.0

Capital Outlay 0.0 0.0 0.0

Debt Service 0.0 0.0 0.0

Cost Allocation 0.0 0.0 0.0

Transfers 0.0 0.0 0.0 Expenditure Categories Total: 0.0 0.0 0.0

Non-Lapsing Authority from Prior Years 0.0 0.0 0.0 Administrative Adjustments 0.0 0.0 0.0

Capital Projects (Land, Buildings,Improvements) 0.0 0.0 0.0 Appropriated 27th Pay Roll 0.0 0.0 0.0 Legislative Fund Transfers 0.0 0.0 0.0 IT Project Transfers 0.0 0.0 0.0

Appropriated Expenditure Total: 0.0 0.0 0.0

Apppropriated FTE: 0.0 0.0 0.0

Non-Appropriated Expenditure Actual

FY 2020 Estimate

FY 2021 Estimate


Personal Services 134.8 140.0 140.0 Employee Related Expenses 47.2 48.8 48.8 Prof. And Outside Services 3.5 3.5 3.5 Travel - In State 0.1 0.0 0.0 Travel - Out of State 0.3 1.0 1.0 Food 0.0 0.0 0.0 Aid to Organizations and Individuals 103.1 25.0 25.0 Other Operating Expenses 45.3 46.0 46.0 Equipment 0.0 0.0 0.0 Capital Outlay 0.0 0.0 0.0 Debt Service 0.0 0.0 0.0 Cost Allocation 0.0 0.0 0.0 Transfers 0.0 0.0 0.0 Expenditure Categories Total: 334.3 264.3 264.3

Cap Transfer due to Fund Balance 0.0 0.0 0.0 Residual Equity Transfer 0.0 0.0 0.0 Prior Commitments or Obligated Expenditures 0.0 0.0 0.0 Non Appropriated 27th Pay Roll 0.0 0.0 0.0

Non-Appropriated Expenditure Total: 334.3 264.3 264.3

Non-Apppropriated FTE: 1.0 1.0 1.0


Sources and Uses of Funds Agency: State Board for Private Postsecondary Education

1

Fund Description

OSPB: Revenues are from school assessments of tuition of newly enrolled students up to a maximum of $10 per assessed student. Regionally accredited private postsecondary institutions, such as the University of Phoenix and Grand Canyon University, are exempt from assessments. The Board levies an assessment only when the fund's balance falls below $500,000. The fund is used to compensate students who suffer financial damages as a result of an institution ceasing operations.

Date Printed: 8130/2020 6:14:55 PM All dollars are presented in thousands (not FTE). 9

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Program Expenditure Schedule


Program: Licensing and Regulation

FY 2020 Actual

FY 2021 Expd. Plan

FTE 4.0 4.0 Expenditure Category Total 4.0 4.0

Appropriated PV2056-A Private Postsecondary Education (Appropriated) 4.0 4.0

4.0 4.0

Non-Appropriated P1/3027-N Student Tuition Recovery (Non-Appropriated) 0.0 0.0

0.0 0.0

Fund Source Total 4.0 4.0

Personal Services 222.6 244.2

Boards and Commissions 1.2 3.5 Expenditure Category Total 223.8 247.7

Appropriated

P12056-A Private Postsecondary Education (Appropriated) 223.8 247.7

223.8 247.7


Employee Related Expenses 82.9 89.8 Expenditure Category Total 82.9 89.8

Appropriated P12056-A Private Postsecondary Education (Appropriated) 82.9 89.8

82.9 89.8


Professional and Outside Services 14.0

External Prof/Outside Sery Budg And Appn 0.0

External Investment Services 0.0

Other External Financial Services 0.0

Attorney General Legal Services 13.8

External Legal Services 0.0

External Engineer/Architect Cost- Exp 0.0

External Engineer/Architect Cost- Cap 0.0

Other Design 0.0

Temporary Agency Services 0.0

Hospital Services 0.0

Other Medical Services 0.0

Institutional Care 0.0

Education And Training 0.0

Vendor Travel 0.0

Professional & Outside Services Excluded from Cost Allocati 0.0

Vendor Travel - Non Reportable 0.0

External Telecom Consulting Services 0.0

Costs related to those in custody of the State 0.0

Non - Confidential Specialist Fees 0.0

Confidential Specialist Fees 0.0

Outside Actuarial Costs 0.0

Other Professional And Outside Services 0.0


Program Expenditure Schedule Agency: State Board for Private Postsecondary Education


FY 2020 Actual

FY 2021 Expd. Plan

Expenditure Category Total

Appropriated P12056-A Private Postsecondary Education (Appropriated)

13.8

13.8

14.0

14.0

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Appropriated PV2056-A Private Postsecondary Education (Appropriated) 0.0 0.0

0.0 0.0


Travel Out of State 1.0 2.0 Expenditure Category Total 1.0 2.0

Appropriated

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1.0 2.0


Food 0.0 0.0 Expenditure Category Total 0.0 0.0

Aid to Organizations and Individuals 0.0 0.0 Expenditure Category Total 0.0 0.0

Other Operating Expenses 77.0 Other Operating Expenditures Budg Approp 0.0 Other Operating Expenditures Exduded from Cost Allocatio 0.0 Risk Management Charges To State Agency 2.0 Risk Management Deductible - Indemnity 0.0 Risk Management Deductible- Legal 0.0 Risk Management Deductible - Medical 0.0 Risk Management Deductible - Other 0.0 Gen Uab- Non Physical-Taxable- Self Ins 0.0 Gross Proceeds Payments To Attorneys 0.0 General Liability- Non-Taxable- Self Ins 0.0 Medical Malpractice - Self-Insured 0.0 Automobile Liability - Self Insured 0.0 General Property Damage - Self- Insured 0.0 Automobile Physical Damage-Self Insured 0.0 Liability Insurance Premiums 0.0 Property Insurance Premiums 0.0 Workers Compensation Benefit Payments 0.0 Self Insurance- Administrative Fees 0.0 Self Insurance - Premiums 0.0 Self Insurance - Claim Payments 0.0 Self Insurance - Pharmacy Claims 0.0 Premium Tax On Altcs 0.0





FY 2020 FY 2021 Actual Expd. Plan

Other Insurance-Related Charges 0.0

Internal Service Data Processing 14.8

Internal Service Data Proc- Pc/Lan 0.0

External Programming-Mainframe/Legacy 0.0

External Programming- Pc/Lan/Serv/Web 0.0

External Data Entry 0.0

Othr External Data Proc-Mainframe/Legacy 0.0

Othr External Data Proc-Pc/Lan/Serv/Web 0.0

Pmt for AFIS Development & Usage 0.5

Internal Service Telecommunications 0.0

External Telecom Long Distance-In-State 4.1

External Telecom Long Distance-Out-State 0.0

Other External Telecommunication Service 0.0

Electricity 0.0

Sanitation Waste Disposal 0.0

Water 0.0

Gas And Fuel Oil For Buildings 0.0

Other Utilities 0.0

Building Rent Charges To State Agendes 21.5

Priv Lease To Own Bld Rent Chrgs To Agy 0.0

Cert Of Part Bid Rent Chrgs To Agy 0.0

Rental Of Land And Buildings 0.0

Rental Of Computer Equipment 0.0

Rental Of Other Machinery And Equipment 0.0

Miscellaneous Rent 3.4

Interest On Overdue Payments 0.0

All Other Interest Payments 0.0

Internal Acct/Budg/Finandal Svcs 19.2

Other Internal Services 0.0

Repair And Maintenance - Buildings 0.0

Repair And Maintenance - Vehicles 0.0

Repair And Maint - Mainframe And Legacy 0.0

Repair And Maint-Pc/Lan/Serv/Web 0.0

Repair And Maintenance - Other Equipment 0.7

Other Repair And Maintenance 0.0

Software Support And Maintenance 0.0

Uniforms 0.0

Inmate Clothing 0.0

Security Supplies 0.0

Office Supplies 1.5 Computer Supplies 0.0

Housekeeping Supplies 0.0

Bedding And Bath Supplies 0.0

Drugs And Medidne Supplies 0.0

Medical Supplies 0.0

Dental Supplies 0.0

Automotive And Transportation Fuels 0.0

Automotive Lubricants And Supplies 0.0

Rpr And Maint Supplies-Not Auto Or Build 0.0 Repair And Maintenance Supplies-Building 0.0

Other Operating Supplies 0.0

Date Printed: 813012020 6:15:03 PM All dollars are presented in thousands (not FTE).

25





Publications 0.0

Aggregate Withheld Or Paid Commissions 0.0

Lottery Prizes 0.0

Lottery Distribution Costs 0.0

Material for Further Processing 0.0

Other Resale Supplies 0.0

Loss On Sales Of Capital Assets 0.0

Loss on Sales of Investments 0.0

Employee Tuition Reimbursement-Graduate 0.0

Employee Tuition Reimb Under-Grad/Other 0.0

Conference Registration-Attendance Fees 0.3

Other Education And Training Costs 0.0

Advertising 0.0

Sponsorships 0.0

Internal Printing 0.0

External Printing 0.2

Photography 0.0

Postage And Delivery 0.1

Document shredding and Destruction Services 0.1

Translation and Sign Language Services 0.0

Distribution To State Universities 0.0

Other Intrastate Distributions 0.0

Awards 0.0

Entertainment And Promotional Items 0.0

Dues 0.5

Books- Subscriptions And Publications 0.1

Costs For Digital Image Or Microfilm 0.0

Revolving Fund Advances 0.0

Credit Card Fees Over Approved Limit 0.0

Relief Bill Expenditures 0.0

Surplus Property Distr To State Agencies 0.0

Security Services 1.8

Judgments - Damages 0.0

ICA Payments to Claimants Confidential 0.0

Jdgmnt-Confidential Restitution To Indiv 0.0

Judgments - Non-Confidential Restitution 0.0

Judgments - Punitive And Compensatory 0.0

Pmts Made to Resolve/Disputes/Avoid Costs of Litigation 0.0

Pmts For Contracted State Inmate Labor 0.0

Payments To State Inmates 0.0

Bad Debt Expense 0.0

Interview Expense 0.0

Employee Relocations-Nontaxable 0.0

Employee Relocations-Taxable 0.0

Non-Confidential Invest/Legal/Law Enf 0.0

Conf/Sensitive Invest/Legal/Undercover 0.0 Fingerprinting, Background Checks, Etc. 0.0 Other Miscellaneous Operating 0.0





FY 2020 Actual

P( 2021 Expd. Plan


Appropriated

P12056-A Private Postsecondary Education (Appropriated)

70.8

70.8

77.0

77.0

70.8 77.0


Current Year Expenditures 5.8

Capital Equipment Budget And Approp 0.0

Vehides Capital Purchase 0.0

Vehicles Capital Leases 0.0

Furniture Capital Purchase 0.3

Depredable Works Of Art & Hist Treas/Coll Capital Purchas 0.0

Non Depr Works Of Art & Hist Treas/Coll Cap Purchase 0.0

Furniture Capital Leases 0.0

Computer Equipment Capital Purchase 1.5

Computer Equipment Capital Lease 0.0

Telecommunication Equip-Capital Purchase 0.0

Telecommunication Equip-Capital Lease 0.0

Other Equipment Capital Purchase 0.0

Other Equipment Capital Leases 0.0

Purchased Or Licensed Software-Website 0.0

Internally Generated Software-Website 0.0

Development in Progress 0.0 Right-Of-Way/Easement/Extraction Rights 0.0

0th Int Assets purchased, licensed or internally gene-ated 0.0

Other intangible assets acquired by capital lease 0.0

Other Capital Asset Purchases 0.0

Leasehold Improvement-Capital Purchase 0.0

Other Capital Asset Leases 0.0

Non-Capital Equip Budget And Approp 0.0

Vehicles Non-Capital Purchase 0.0

Vehicles Non-Capital Leases 0.0

Furniture Non-Capital Purchase 0.0 Works Of Art And Hist Treas-Non Capital 0.0

0.0 Furniture Non-Capital Leases Computer Equipment Non-Capital Purchase 0.0

Computer Equipment Non-Capital Lease 0.0

Teleoomm Equip Non-Capital Purchase 0.0

Teleoomm Equip Non-Capital Leases 0.0 0.2 Other Equipment Non-Capital Purchase

Weapons Non-Capital Purchase 0.0 Other Equipment Non-Capital Lease 0.0 Purchased Or Licensed Software/Website 0.0 Internally Generated Software/Website 0.0 LICENSES AND PERMITS 0.0 Right-Of-Way/Easement/Extraction Exp 0.0

Other Intangible Assets - Purchased, Licensed or Internally 0.0 Noncapital Software/Web By Capital Lease 0.0 Other Intangible Assets Acquired by Capital Lease 0.0 Other Long Lived Tangible Assets to be Expenses 0.0 Non-Capital Equipment Excluded from Cost Allocation 0.0


Agency:

Program:


State Board for Private Postsecondary Education

Licensing and Regulation


Appropriated

PV2056-A Private Postsecondary Education (Appropriated)

Fund Source Total


2.0

2.0

5.8

5.8

2.0 5.8

2.0 5.8

Capital Outlay 0.0 0.0 Expenditure Category Total 0.0 0.0

Debt Service 0.0 0.0 Expenditure Category Total 0.0 0.0

Cost Allocation 0.0 0.0 Expenditure Category Total 0.0 0.0

Transfers 0.0 0.0 Expenditure Category Total 0.0 0.0

Employee Retirement Coverage Personal

Retirement System FTE Services Fund#

Arizona State Retirement System 4.0 244.2 PV2056-A

Combined Regular & Elected Positions At/Above FICA Maximum of $142,800

Total Personal FTE's not eligible for FTE Services Health, Dental & Life

0.0 0.0 0.0

Date Printed: 8/30/2020 5:15:04 PM All dollars are presented in thousands (not FTE).

28

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32



Program: Student Tuition Recovery

FY 2020 Actual

FY 2021 Expd. Plan

FTE 1.0 1.0 Expenditure Category Total 1.0 1.0

Non-Appropriated PV3027-N Student Tuition Recovery (Non-Appropriated) 1.0 1.0

1.0 1.0


Personal Services 134.8 140.0

Boards and Commissions 0.0 0.0 Expenditure Category Total 134.8 140.0

Non-Appropriated

P13027-N Student Tuition Recovery (Non-Appropriated) 134.8 140.0

134.8 140.0


Employee Related Expenses 47.2 48.8 Expenditure Category Total 47.2 48.8

Non-Appropriated P13027-N Student Tuition Recovery (Non-Appropriated) 47.2 48.8

47.2 48.8


Professional and Outside Services 3.5

External Prof/Outside Sery Budg And Appn 0.0

External Investment Services 0.0

Other External Finandal Services 0.0

Attorney General Legal Services 3.5

External Legal Services 0.0

External Engineer/Architect Cost - Exp 0.0

External Engineer/Architect Cost- Cap 0.0

Other Design 0.0 Temporary Agency Services 0.0

Hospital Services 0.0

Other Medical Services 0.0

Institutional Care 0.0

Education And Training 0.0

Vendor Travel 0.0

Professional & Outside Services Excluded from Cost Allocati 0.0

Vendor Travel - Non Reportable 0.0 External Telecom Consulting Services 0.0 Costs related to those in custody of the State 0.0 Non - Confidential Sredalist Fees 0.0 Confidential Specialist Fees 0.0 Outside Actuarial Costs 0.0 Other Professional And Outside Services 0.0





FY 2020 Actual

FY 2021 Expd. Plan


Non-Appropriated P13027-N Student Tuition Recovery (Non-Appropriated)

3.6

3.5

3.5

3.5

3.5 3.5


Travel In-State 0.1 0.0 Expenditure Category Total 0.1 0.0


0.1 0.0


Travel Out of State 0.3 1.0 Expenditure Category Total 03 1.0


0.3 1.0


Food 0.0 0.0 Expenditure Category Total 0.0 0.0

Aid to Organizations and Individuals 103.1 25.0 Expenditure Category Total 1031 26.0


1031 25.0


Other Operating Expenses 46.0

Other Operating Expenditures Budg Approp 0.0 Other Operating Expenditures Excluded from Cost Allocatio 0.0 Risk Management Charges To State Agency 0.5 Risk Management Deductible - Indemnity 0.0

Risk Management Deductible - Legal 0.0 Risk Management Deductible - Medical 0.0 Risk Management Deductible - Other 0.0

Gen Liab- Non Physical-Taxable- Self Ins 0.0 Gross Proceeds Payments To Attorneys 0.0 General Liability- Non-Taxable- Self Ins 0.0 Medical Malpractice - Self-Insured 0.0 Automobile Liability - Self Insured 0.0 General Property Damage - Self- Insured 0.0 Automobile Physical Damage-Self Insured 0.0 Liability Insurance Premiums 0.0 Property Insurance Premiums 0.0 Workers Compensation Benefit Payments 0.0 Self Insurance - Administrative Fees 0.0 Self Insurance- Premiums 0.0


Program Expenditure Schedule Agency: State Board for Private Postsecondary Education



Self Insurance - Claim Payments 0.0

Self Insurance - Pharmacy Claims 0.0

Premium Tax On Altcs 0.0

Other Insurance-Related Charges 0.0

Internal Service Data ProrPcsing 2.2

Internal Service Data Proc- Pc/Lan 0.0

External Programming-Mainframe/Legacy 0.0

External Programming- Pc/Lan/Serv/Web 0.0

External Data Entry 0.0

Othr External Data Proc-Mainframe/Legacy 0.0

Othr External Data Proc-Pc/Lan/Serv/Web 0.0

Pmt for AFIS Development & Usage 0.0

Internal Service Telecommunications 0.0

External Telecom Long Distance-In-State 0.0

External Telecom Long Distance-Out-State 0.0

Other External Telecommunication Service 0.0

Electridty 0.0

Sanitation Waste Disposal 0.0 Water 0.0

Gas And Fuel Oil For Buildings 0.0

Other Utilities 0.0

Building Rent Charges To State Agencies 5.4

Priv Lease To Own Bld Rent Chrgs To Agy 0.0

Cert Of Part Bid Rent Chrgs To Agy 0.0

Rental Of Land And Buildings 0.0

Rental Of Computer Equipment 0.0

Rental Of Other Machinery And Equipment 0.0

Miscellaneous Rent 31.4

Interest On Overdue Payments 0.0

All Other Interest Payments 0.0 Internal Acct/Budg/Finandal Svcs 4.8

Other Internal Services 0.0 Repair And Maintenance - Buildings 0.0 Repair And Maintenance - Vehides 0.0 Repair And Maint - Mainframe And Legacy 0.0

Repair And Maint-Pc/Lan/Serv/Web 0.0

Repair And Maintenance - Other Equipment 0.0 Other Repair And Maintenance 0.0 Software Support And Maintenance 0.0

Uniforms 0.0 Inmate Clothing 0.0 Security Supplies 0.0 Office Supplies 0.1

Computer Supplies 0.0 Housekeeping Supplies 0.0 Bedding And Bath Supplies 0.0 Drugs And Medicine Supplies 0.0 Medical Supplies 0.0 Dental Supplies 0.0 Automotive And Transportation Fuels 0.0 Automotive Lubricants And Supplies 0.0





Pie 2020 FY 2021 Actual Expd. Plan

Rpr And Maint Supplies-Not Auto Or Build 0.0

Repair And Maintenance Supplies-Building 0.0

Other Operating Supplies 0.0

Publications 0.0

Aggregate Withheld Or Paid Commissions 0.0

Lottery Prizes 0.0

Lottery Distribution Costs 0.0

Material for Further Processing 0.0

Other Resale Supplies 0.0

Loss On Sales Of Capital Assets 0.0

Loss on Sales of Investments 0.0

Employee Tuition Reimbursement-Graduate 0.0

Employee Tuition Reimb Under-Grad/Other 0.0

Conference Registration-Attendance Fees 0.0

Other Education And Training Costs 0.0

Advertising 0.0

Sponsorships 0.0

Internal Printing 0.0

External Printing 0.0

Photography 0.0

Postage And Delivery 0.1

Document shredding and Destruction Services 0.0

Translation and Sign Language Services 0.0

Distribution To State Universities 0.0

Other Intrastate Distributions 0.0

Awards 0.0

Entertainment And Promotional Items 0.0

Dues 0.0

Books- Subscriptions And Publications 0.0

Costs For Digital Image Or Microfilm 0.0

Revolving Fund Advances 0.0

Credit Card Fees Over Approved Umit 0.0

Relief Bill Expenditures 0.0

Surplus Property Distr To State Agendes 0.0 Security Services 0.0

Judgments - Damages 0.0

ICA Payments to Claimants Confidential 0.0

ldgmnt-Confidential Restitution To Indiv 0.0

Judgments - Non-Confidential Restitution 0.0

Judgments - Punitive And Compensatory 0.0

Pmts Made to Resolve/Disputes/Avoid Costs of Litigation 0.0 Pmts For Contracted State Inmate Labor 0.0 Payments To State Inmates 0.0 Bad Debt Expense 0.0 Interview Expense 0.0 Employee Relocations-Nontaxable 0.0 Employee Relocations-Taxable 0.0 Non-Confidential Invest/Legal/Law Enf 0.0 Conf/Sensitive Invest/Legal/Undercover 0.0 Fingerprinting, Background Checks, Etc. 0.0 Other Miscellaneous Operating 0.8


36




FY 2020 Actual

FY 2021 Expd. Plan


Non-Appropriated

PV3027-N Student Tuition Recovery (Non-Appropriated)

45.3

45.3

46.0

46.0

45.3 46.0


Current Year Expenditures 0.0

Capital Equipment Budget And Approp 0.0

Vehicles Capital Purchase 0.0

Vehicles Capital Leases 0.0

Furniture Capital Purchase 0.0

Depredable Works Of Art & Hist Treas/Coll Capital Purctias 0.0

Non Depr Works Of Art & Hist Treas/Coll Cap Purchase 0.0

Furniture Capital Leases 0.0

Computer Equipment Capital Purchase 0.0

Computer Equipment Capital Lease 0.0

Telecommunication Equip-Capital Purchase 0.0 Telecommunication Equip-Capital Lease 0.0

Other Equipment Capital Purchase 0.0

Other Equipment Capital Leases 0.0

Purchased Or Licensed Software-Website 0.0

Internally Generated Software-Website 0.0

Development in Progress 0.0

Right-Of-Way/Easement/Extraction Rights 0.0

0th Int Assets purchased, licensed or internally generated 0.0

Other intangible assets acquired by capital lease 0.0 Other Capital Asset Purchases 0.0 Leasehold Improvement-Capital Purchase 0.0 Other Capital Asset Leases 0.0

Non-Capital Equip Budget And Approp 0.0 Vehicles Non-Capital Purchase 0.0

Vehides Non-Capital Leases 0.0 Furniture Non-Capital Purchase 0.0 Works Of Art And Hist Treas-Non Capital 0.0 Furniture Non-Capital Leases 0.0 Computer Equipment Non-Capital Purchase 0.0 Computer Equipment Non-Capital Lease 0.0 Telecomm Equip Non-Capital Purchase 0.0

0.0 Telecomm Equip Non-Capital Leases Other Equipment Non-Capital Purchase 0.0 Weapons Non-Capital Purchase 0.0 Other Equipment Non-Capital Lease 0.0 Purchased Or Licensed Software/Website 0.0 Internally Generated Software/Website 0.0 LICENSES AND PERMITS 0.0 Right-Of-Way/Easement/Extraction Exp 0.0 Other Intangible Assets - Purchased, Licensed or Internally 0.0

0.0 Noncapital Software/Web By Capital Lease Other Intangible Assets Acquired by Capital Lease 0.0 Other Long Lived Tangible Assets to be Expenses 0.0 Non-Capital Equipment Exduded from Cost Allocation 0.0


37





Non-Appropriated

PV3027-N Student Tuition Recovery (Non-Appropriated)

Fund Source Total

FY 2020 Pif 2021 Actual Expd. Plan

0.0

0.0

0.0

0.0

0.0 0.0

0.0 0.0

Capital Outlay 0.0 0.0 Expenditure Category Total 0.0 0.0

Debt Service 0.0 0.0 Expenditure Category Total 0.0 0.0

Cost Allocation 0.0 0.0 Expenditure Category Total 0.0 0.0

Non-Appropriated

PV3027-N Student Tuition Recovery (Non-Appropriated) 0.0 0.0

0.0 0.0


Transfers 0.0 0.0 Expenditure Category Total 0.0 0.0

Non-Appropriated

PV3027-N Student Tuition Recovery (Non-Appropriated) 0.0 0.0

0.0 0.0


Employee Retirement Coverage Personal

Retirement System FTE Services Fund#

Arizona State Retirement System 1.0 140.0 PV3027-N

Combined Regular & Elected Positions At/Above FICA Maximum of $142,800

Total Personal FTE's not eligible for FTE Services Health, Dental & Life

0.0 0.0 0.0


38

Administrative Costs Agency: State Board for Private Postsecondary Education

Administrative Costs Summary

Common Administrative Area FY 2021

Personal Services 7.5

ERE 7.5

All Other 1.0

Administrative Costs Total: 16.0

Administrative Cost! Total Expenditure Ratio

FY 2021

Request Admin %

700.6 2.3%

Date Printed: 8130/2020 6:15:10 PM All dollars are presented in thousands (not FTE). 39

II. Cover Letter

40

Arizona State Board for Private Postsecondary Education 1740 W Adams St, Suite 3008 Phoenix, Arizona 85007 (602) 542-5716 Executive Director: Kevin J. LaMountain M.Ed. Website: ppse.az.gov

September 1, 2020

The Honorable Doug Ducey Governor, State of Arizona 1700 W. Washington Street Phoenix, AZ 85007

Governor Ducey:

The Arizona State Board for Private Postsecondary Education (Board) respectfully submits the Operating Budget Request for FY 2022.

This budget was approved by the Board during the August 27, 2020 board meeting.

Enclosed, please find the following:

1. FY 2022 Budget request including the Revenue Forecast Methodology 2. FY 2020 — 2022 Master List 3. Current Organizational Chart 4. FY 2020 — FY2025 Strategic Plan

The original and one copy are being submitted as required.

If you have any questions, please contact me at 602-542-5716.

Sincerely,

Kevin Executive

41

III. Organizational Chart

42

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43

IV. Funding Issue Justifications

44

V. Revenue Forecast Methodology

45

Arizona State Board for Private Postsecondary Education 1740 W Adams St., Suite 3008 Phoenix, Arizona 85007 (602) 542-5716 Executive Director: Kevin J. LaMountain M.Ed. Website: ppse.az.gov

August 5, 2020

RE: Revenue Forecast Methodology

FUND 2056

Revenue projections are based upon the assumption that the expected school level of 200 will remain consistent for FY21 and FY22. The current COVID-19 situation may impact FY22 — FY25 as licensed schools struggle with attracting students for in-person instruction.

The chart below (from included spreadsheet) shows the forecast for FY22 will equal that of FY21. The forecast uses FY20 actuals as a base.

FY 20 Fill.) Notts Revenue

FY21 Forecast

Number Revenue

FY22 Forecast

Number Arleta Renewals 197 $ 248209.00 200 $ 250,0)0.00 200 $ 250,000.80 Service Requests 279 $ 138,988.03 250 $125,000.00 250 $ 125,catoo New Applications F19 $ 14,954.00 20 $ 20,003.00 20 $ lo,occoo

Total Revenue $ 401,151.00 $ 395.000.00 $ 395,000.00

Credit Card Fees (1.45%) $ 5,831.19 $ 5,727.50 $ 5,727.50 Total After Fees $ 396,319.81 5389,272.50 $ 389,272.50

10% General Fond $ 39,631.98 $ 38,927.25 $ 38,927.25

Total Operating Revenue $ 356487.113 $350,34525 $ 350,34515

FUND 3027

Revenue for this fund is generated entirely through assessments for Nationally accredited institutions. There are currently 155 institutions that pay the assessment. This assessment is calculated by rule A.R.S. § 32-3072(B). As enrollment will be flat or declining in the upcoming few years, it is expected the revenue in this fund will remain around the $170,000 range. Please note the billed amount for FY21 is $199,565.52, however we expect the actual collected will be closer to $170,000 as some schools will close prior to the collection date of October 1.

FY21 Projected revenue $170,000* FY22 Projected revenue $170,000*

* There has been a change in federal law that eliminates the terms "national and regional" accreditations. This became law on July 1, 2020 and potentially impacts our ability to bill the previously exempted institutions (Regionally Accredited). This would add an additional $650,000 to FY21 revenue. Our board is currently in discussion with the Arizona Attorney General and Governor's office to determine next steps. If we were to receive the revenue from these institutions, this would increase our fund beyond $500,000 and would not need to bill in FY22 or FY23.

46

VI. Sources and Uses Justification

47

Fund PV3027 (Student Tuition Recovery Fund -STRF)

FY2022 Budget Request: $264.3 FY2022 Revenue Expectation: $175.7 F12022 Balance Forward from PY: ($0.6) FY2022 Balance Forward to NY: ($89.2)

Fund Specifics: PV3027 is a non-appropriated fund used for the following purposes. 1. Provide financial recovery for students that attended a school that has closed, and their

education was not completed. The fund will reimburse cash payments made to the closed school during the entire time of attendance.

2. Student Records —The fund also supports the recovery, storage, maintenance, and retrieval of student transcripts (used for continuing education, employment, licensure among other reasons). There are currently 4.5 M documents stored at Iron Mountain and an additional 500K documents stored digitally. Staff process approximately 800 transcript requests per month. These records are maintained in perpetuity.

During FY2020, fund PV3027 experienced a dramatically higher payout than expected. This increase was due to the closure of three large schools (The Golf Academy, The Art Institute of Phoenix, Argosy University). Expenditures were $334.3K on a revenue of $272.4K. This fund balance has decreased over the past 4 years due to the precipitous closures of a number of schools. As a result, our balance forward continues to decline resulting in a negative balance for FY2021 and into FY2022.

Staff has met with the legislature to seek assistance with a restructure of the STRF fund, however, no progress has been made over the past two years. In addition, staff has met with the Governor's office to seek solutions to this issue. No definitive guidance has been provided at this time.

It is anticipated the fund will generate $175K in FY2022 resulting in a deficit of nearly $90K. By statute, we must bill institutions each year if the STRF fund falls below a minimum of $500K. We have billed the past 4 years as school closures continue to mount depleting the fund. This is expected to continue as COVID-19 continues to impact school operations.

The plan moving forward remains a work in progress. Currently our statute exempts "regionally accredited institutions" from paying into the STRF fund. We have only billed "National and Non-accredited institutions). The US Department of Education has, as of July 1, 2020, removed the designation of "regional or national" accreditation and now uses "institutional or programmatic" accreditation. This change might allow the fund to bill the previous exempt institutions. If that were to happen, that would increase our STRF revenue from $175K to $900K. We are seeking guidance from the AG and Governor's office on this matter.

Staff does plan to seek legislative changes to statutes in the 2020/2021 session.

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Documents

ARIZONA STATE BOARD FOR PRIVATE POSTSECONDARY …