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S.B. 2

             1     

MINIMUM SCHOOL PROGRAM BUDGET

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Howard A. Stephenson

             6     
House Sponsor: Bradley G. Last

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill provides funding for the Minimum School Program and other education
             11      programs.
             12      Highlighted Provisions:
             13          This bill:
             14          .    establishes the value of the weighted pupil unit at $2,577;
             15          .    establishes a ceiling for the state contribution to the maintenance and operations
             16      portion of the Minimum School Program for fiscal year 2008-09 of $2,495,183,979;
             17          .    modifies provisions related to the funding of charter schools;
             18          .    authorizes the use of appropriations for accelerated learning programs for
             19      International Baccalaureate programs;
             20          .    modifies the positions that qualify for educator salary adjustments and increases the
             21      salary adjustments for those positions;
             22          .    establishes and funds the following ongoing programs:
             23              .    a pilot project using a home-based educational technology program to develop
             24      school readiness skills of preschool children;
             25              .    a financial and economic literacy passport to track student mastery of certain
             26      concepts;
             27              .    the Teacher Salary Supplement Program to provide a salary supplement to an


             28      eligible teacher;
             29              .    stipends for special educators for additional days of work;
             30              .    an optional grant program to provide an extended year for math and science
             31      teachers through the creation of Utah Science Technology and Research
             32      Centers;
             33              .    the High-ability Student Initiative Program to provide resources for educators to
             34      enhance the academic growth of high-ability students; and
             35              .    the English Language Learner Family Literacy Centers Program;
             36          .    makes one-time appropriations for fiscal year 2008-09 for:
             37              .    pupil transportation to and from school;
             38              .    the Beverley Taylor Sorenson Elementary Arts Learning Program to provide
             39      grants to integrate arts teaching and learning into selected schools; and
             40              .    classroom supplies;
             41          .    requires the State Board of Education to allocate Minimum School Program
             42      nonlapsing balances to provide:
             43              .    one-time signing bonuses for new teachers;
             44              .    one-time performance-based compensation; and
             45              .    a grant program to minimize the expenses of teachers to obtain the American
             46      Board Distinguished Teacher certification and to provide additional
             47      compensation to teachers who obtain that certification;
             48          .    provides a repeal date for certain pilot programs;
             49          .    makes nonlapsing appropriations; and
             50          .    makes technical corrections.
             51      Monies Appropriated in this Bill:
             52          This bill appropriates:
             53          .    the following Minimum School Program Monies:
             54              .    $2,436,864,479 from the Uniform School Fund for fiscal year 2008-09;
             55              .    $26,499,500 from the Uniform School Fund Restricted - Interest and Dividends
             56      Account for fiscal year 2008-09;
             57              .    $31,820,000 from the Uniform School Fund for fiscal year 2008-09 only; and
             58              .    $280,000 from the Uniform School Fund for fiscal year 2007-08 only; and


             59          .    the following other education program monies:
             60              .    $3,469,580 from the Uniform School Fund for fiscal year 2008-09;
             61              .    $150,000 from the Uniform School Fund for fiscal year 2008-09 only;
             62              .    $1,000,000 from the Uniform School Fund for fiscal year 2007-08 only;
             63              .    $250,000 from the General Fund for fiscal year 2008-09; and
             64              .    $50,000 from the General Fund for fiscal year 2007-08 only.
             65      Other Special Clauses:
             66          This bill provides an effective date.
             67          This bill coordinates with H.B. 1 by providing superseding and substantive
             68      amendments.
             69      Utah Code Sections Affected:
             70      AMENDS:
             71          53A-1a-501.6, as last amended by Laws of Utah 2007, Chapter 344
             72          53A-1a-502.5, as last amended by Laws of Utah 2007, Chapter 344
             73          53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9 and 291
             74          53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
             75          53A-17a-104, as last amended by Laws of Utah 2007, Chapters 2, 344, 368, and 372
             76          53A-17a-108, as last amended by Laws of Utah 2007, Chapter 344
             77          53A-17a-120, as last amended by Laws of Utah 2007, Chapter 368
             78          53A-17a-126, as last amended by Laws of Utah 2003, Chapters 221 and 320
             79          53A-17a-127, as last amended by Laws of Utah 2001, Chapter 73
             80          53A-17a-148, as last amended by Laws of Utah 2006, Chapter 354
             81          53A-17a-153, as enacted by Laws of Utah 2007, Chapter 380
             82          63-55b-153, as last amended by Laws of Utah 2007, Chapter 216
             83      ENACTS:
             84          53A-1a-1001, Utah Code Annotated 1953
             85          53A-1a-1002, Utah Code Annotated 1953
             86          53A-1a-1003, Utah Code Annotated 1953
             87          53A-1a-1004, Utah Code Annotated 1953
             88          53A-1a-1005, Utah Code Annotated 1953
             89          53A-1a-1006, Utah Code Annotated 1953


             90          53A-1a-1007, Utah Code Annotated 1953
             91          53A-6-113, Utah Code Annotated 1953
             92          53A-13-110, Utah Code Annotated 1953
             93          53A-17a-156, Utah Code Annotated 1953
             94          53A-17a-157, Utah Code Annotated 1953
             95          53A-17a-158, Utah Code Annotated 1953
             96          53A-17a-159, Utah Code Annotated 1953
             97          53A-17a-160, Utah Code Annotated 1953
             98          53A-17a-161, Utah Code Annotated 1953
             99          53A-17a-162, Utah Code Annotated 1953
             100     
             101      Be it enacted by the Legislature of the state of Utah:
             102          Section 1. Section 53A-1a-501.6 is amended to read:
             103           53A-1a-501.6. Power and duties of State Charter School Board.
             104          (1) The State Charter School Board shall:
             105          (a) authorize and promote the establishment of charter schools, subject to the
             106      provisions in this part;
             107          (b) annually review and evaluate the performance of charter schools authorized by the
             108      State Charter School Board and hold the schools accountable for their performance;
             109          (c) monitor charter schools authorized by the State Charter School Board for
             110      compliance with federal and state laws, rules, and regulations;
             111          (d) provide technical support to charter schools and persons seeking to establish charter
             112      schools by:
             113          (i) identifying and promoting successful charter school models;
             114          (ii) facilitating the application and approval process for charter school authorization;
             115          (iii) directing charter schools and persons seeking to establish charter schools to
             116      sources of private funding and support;
             117          (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
             118      supporting and strengthening proposals before an application for charter school authorization is
             119      submitted to the State Charter School Board or a local school board; and
             120          (v) assisting charter schools to understand and carry out their charter obligations;


             121          (e) provide technical support, as requested, to a local school board relating to charter
             122      schools;
             123          (f) make recommendations on legislation and rules pertaining to charter schools to the
             124      Legislature and State Board of Education, respectively; and
             125          (g) make recommendations to the State Board of Education on the funding of charter
             126      schools.
             127          (2) The State Charter School Board may:
             128          (a) contract;
             129          (b) sue and be sued; and
             130          (c) (i) at the discretion of the charter school, provide administrative services to, or
             131      perform other school functions for, charter schools authorized by the State Charter School
             132      Board; and
             133          (ii) charge fees for the provision of services or functions.
             134          (3) (a) The State Charter School Board shall provide support services to charter schools
             135      from monies appropriated under Subsection (3)(b).
             136          (b) Subject to future budget constraints, the Legislature shall annually appropriate
             137      money to the State Charter School Board for support services to charter schools in the amount
             138      of $30 times the number of students enrolled in charter schools on October 1.
             139          Section 2. Section 53A-1a-502.5 is amended to read:
             140           53A-1a-502.5. Charter schools -- Maximum authorized students.
             141          (1) The State Charter School Board and local school boards may only authorize a
             142      combined maximum student capacity of:
             143          [(a) 27,921 students for the charter schools in the 2007-08 school year; and]
             144          [(b)] (a) 32,921 students for the charter schools in the 2008-09 school year[.]; and
             145          (b) an annual increase of 7,500 students for the charter schools beginning in the
             146      2009-10 school year.
             147          (2) (a) The State Board of Education, in consultation with the State Charter School
             148      Board, shall allocate the students under Subsection (1) between the State Charter School Board
             149      and local school boards.
             150          (b) 2,500 of the student capacity described under Subsection (1)(b) shall be allocated to
             151      increase the maximum student capacity of operating charter schools.


             152          (c) If the operating charter schools do not use the allocation described under
             153      Subsection (2)(b), the remaining student capacity may be used by new charter schools.
             154          Section 3. Section 53A-1a-513 is amended to read:
             155           53A-1a-513. Funding for charter schools.
             156          (1) As used in this section:
             157          (a) "Charter school students' average local revenues" means the amount determined as
             158      follows:
             159          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             160      district per pupil local revenues of the school district in which the student resides;
             161          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             162      school on the previous October 1; and
             163          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             164      enrolled in charter schools on the previous October 1.
             165          (b) "District per pupil local revenues" means the amount determined as follows, using
             166      data from the most recently published school district annual financial reports and state
             167      superintendent's annual report:
             168          (i) calculate the sum of a school district's revenue received from:
             169          (A) a voted levy imposed under Section 53A-17a-133 ;
             170          (B) a board levy imposed under Section 53A-17a-134 ;
             171          (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
             172          (D) a tort liability levy imposed under Section 63-30d-704 ;
             173          (E) a capital outlay levy imposed under Section 53A-16-107 ;
             174          (F) a voted capital outlay levy imposed under Section 53A-16-110 ;
             175          (G) state support for a voted levy program provided under Section 53A-17a-133 ;
             176          (H) state support for a board levy program provided under Section 53A-17a-134 ; and
             177          (I) state ongoing appropriations to the Capital Outlay Foundation and Enrollment
             178      Growth Programs created in Section 53A-21-102 ; and
             179          (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
             180          (A) a school district's average daily membership; and
             181          (B) the average daily membership of a school district's resident students who attend
             182      charter schools.


             183          (c) "Resident student" means a student who is considered a resident of the school
             184      district under Title 53A,Chapter 2, District of Residency.
             185          (d) "Statewide average debt service revenues" means the amount determined as
             186      follows, using data from the most recently published state superintendent's annual report:
             187          (i) sum the revenues of each school district from the debt service levy imposed under
             188      Section 11-14-310 ; and
             189          (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
             190      average daily membership.
             191          [(1)] (2) (a) Charter schools shall receive funding as described in this section, except
             192      Subsections [(2)] (3) through [(7)] (8) do not apply to charter schools described in Subsection
             193      [(1)] (2)(b).
             194          (b) Charter schools authorized by local school boards that are converted from district
             195      schools or operate in district facilities without paying reasonable rent shall receive funding as
             196      prescribed in Section 53A-1a-515 .
             197          [(2)] (3) (a) Except as provided in Subsection [(2)] (3)(b), a charter school shall receive
             198      state funds, as applicable, on the same basis as a school district receives funds.
             199          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             200      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             201          (i) .55 for kindergarten pupils;
             202          (ii) .9 for pupils in grades 1-6;
             203          (iii) .99 for pupils in grades 7-8; and
             204          (iv) 1.2 for pupils in grades 9-12.
             205          [(c) The State Board of Education shall make rules in accordance with Title 63,
             206      Chapter 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including
             207      hold harmless provisions to maintain a charter elementary school's funding level for a period of
             208      two years after the effective date of the distribution formula.]
             209          [(d) Subsection (2)(b) does not apply to funds appropriated to charter schools to
             210      replace local property tax revenues.]
             211          [(3) The State Board of Education shall adopt rules to provide for the distribution of
             212      monies to charter schools under this section.]
             213          [(4) (a) The Legislature shall provide an appropriation for charter schools for each of


             214      their students to replace some of the local property tax revenues that are not available to charter
             215      schools. The amount of money provided for each charter school student shall be determined
             216      by:]
             217          [(i) calculating the sum of:]
             218          [(A) school districts' operations and maintenance revenues derived from local property
             219      taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
             220      53A-17a-135 ;]
             221          [(B) school districts' capital projects revenues derived from local property taxes; and]
             222          [(C) school districts' expenditures for interest on debt; and]
             223          [(ii) dividing the sum by the total average daily membership of the districts' schools.]
             224          (4) (a) (i) Except as provided in Subsections (4)(a)(ii) and (iii), a school district shall
             225      allocate a portion of school district revenues for each resident student of the school district who
             226      is enrolled in a charter school on October 1 as follows:
             227          (A) in fiscal year 2008-09, the allocation shall equal 25% of the lesser of:
             228          (I) district per pupil local revenues; or
             229          (II) charter school students' average local revenues;
             230          (B) in fiscal year 2009-10, the allocation shall equal 50% of the lesser of:
             231          (I) district per pupil local revenues; or
             232          (II) charter school students' average local revenues;
             233          (C) in fiscal year 2010-11, the allocation shall equal 75% of the lesser of:
             234          (I) district per pupil local revenues; or
             235          (II) charter school students' average local revenues; and
             236          (D) beginning in fiscal year 2011-12, the allocation shall equal 100% of the lesser of:
             237          (I) district per pupil local revenues; or
             238          (II) charter school students' average local revenues.
             239          (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i), a
             240      kindergarten student who is enrolled in less than a full-day kindergarten program is weighted as
             241      .55 of a student.
             242          (iii) (A) As used in this section, "virtual charter school" means a performance-based
             243      charter school that delivers synchronous or asynchronous instruction from a teacher to a
             244      student primarily through the use of technology via the Internet in a virtual or remote setting.


             245          (B) A school district's allocation of revenues under this Subsection (4)(a) for a student
             246      enrolled in a virtual charter school may not exceed $500.
             247          (iv) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             248      established under Chapter 28, Utah School Bond Guaranty Act.
             249          (b) The State Board of Education shall:
             250          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             251      state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum
             252      School Program Act; and
             253          (ii) remit the money to the student's charter school.
             254          (c) Notwithstanding the method used to transfer school district revenues to charter
             255      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             256      schools under this section from:
             257          (i) unrestricted revenues available to the school district; or
             258          (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through (I) based on the
             259      portion of the allocations to charter schools attributed to each of the revenue sources listed in
             260      Subsections (1)(b)(i)(A) through (I).
             261          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             262      appropriation for charter schools for each student enrolled on October 1 to supplement the
             263      allocation of school district revenues under Subsection (4)(a).
             264          (ii) Except as provided in Subsections (4)(d)(iii) and (iv), the amount of money
             265      provided by the state for a charter school student shall be the sum of:
             266          (A) charter school students' average local revenues minus the allocation of school
             267      district revenues under Subsection (4)(a); and
             268          (B) statewide average debt service revenues.
             269          (iii) If the total of a school district's allocation for a charter school student under
             270      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             271      $1427, the state shall provide an additional supplement so that a charter school receives at least
             272      $1427 per student under this Subsection (4).
             273          (iv) For the purpose of providing state monies for charter school students under this
             274      Subsection (4)(d), a kindergarten student who is enrolled in less than a full-day kindergarten
             275      program is weighted as .55 of a student.


             276          (v) (A) Subsections (4)(d)(ii) through (iv) do not apply to virtual charter schools.
             277          (B) If the total of a school district's allocation for a virtual charter school student under
             278      Subsection (4)(a) is less than $500, the state shall provide an additional supplement so that a
             279      virtual charter school receives at least $500 per student under this Subsection (4).
             280          [(b)] (e) Of the monies provided to a charter school under this Subsection (4)[(a)], 10%
             281      shall be expended for funding school facilities only.
             282          [(c) To qualify for money under Subsection (4)(a), a new charter school shall, by
             283      September 30 of the school year prior to the school year it intends to begin operations:]
             284          [(i) obtain approval of its application for a charter from:]
             285          [(A) the State Board of Education, pursuant to Section 53A-1a-505 ; or]
             286          [(B) a local school board, pursuant to Section 53A-1a-515 ; and]
             287          [(ii) submit to the chartering entity an estimate of the charter school's first year
             288      enrollment.]
             289          [(d) Subsection (4)(c) does not apply to charter schools beginning operations in the
             290      2005-06 school year.]
             291          [(e) By December 1, the State Charter School Board shall submit to the Governor's
             292      Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
             293      total charter school enrollment in the state for the following school year.]
             294          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             295      federal requirements and comply with relevant federal regulations.
             296          (6) The State Board of Education shall distribute funds for charter school students
             297      directly to the charter school.
             298          (7) (a) Notwithstanding Subsection [(2)] (3), a charter school is not eligible to receive
             299      state transportation funding.
             300          (b) The board shall also adopt rules relating to the transportation of students to and
             301      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             302          (c) The governing body of the charter school may provide transportation through an
             303      agreement or contract with the local school board, a private provider, or with parents.
             304          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             305      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             306      the implementation of this part.


             307          (ii) Applications for the grants shall be filed on a form determined by the state
             308      superintendent and in conjunction with the application for a charter.
             309          (iii) The amount of a grant may vary based upon the size, scope, and special
             310      circumstances of the charter school.
             311          (iv) The governing board of the charter school shall use the grant to meet the expenses
             312      of the school as established in the school's charter.
             313          (b) The State Board of Education shall coordinate the distribution of federal monies
             314      appropriated to help fund costs for establishing and maintaining charter schools within the
             315      state.
             316          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             317      endowment, gift, or donation of any property made to the school for any of the purposes of this
             318      part.
             319          (b) It is unlawful for any person affiliated with a charter school to demand or request
             320      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             321      with the charter school as a condition for employment or enrollment at the school or continued
             322      attendance at the school.
             323          [(10) The State Office of Education shall use up to $1,044,000 of funding provided for
             324      new growth to fund additional growth needs in charter schools in fiscal year 2005.]
             325          Section 4. Section 53A-1a-1001 is enacted to read:
             326     
Part 10. UPSTART

             327          53A-1a-1001. Definitions.
             328          As used in this part:
             329          (1) "Contractor" means the educational technology provider selected by the State Board
             330      of Education under Section 53A-1a-1002 .
             331          (2) "Low income" means an income below 200% of the federal poverty guideline.
             332          (3) "Preschool children" means children who are:
             333          (a) age four or five; and
             334          (b) have not entered kindergarten.
             335          (4) "UPSTART" means the pilot project established by Section 53A-1a-1002 that uses
             336      a home-based educational technology program to develop school readiness skills of preschool
             337      children.


             338          Section 5. Section 53A-1a-1002 is enacted to read:
             339          53A-1a-1002. Pilot project to develop school readiness skills of preschool children.
             340          (1) UPSTART, a pilot project that uses a home-based educational technology program
             341      to develop school readiness skills of preschool children, is established within the public
             342      education system.
             343          (2) UPSTART is created to:
             344          (a) evaluate the effectiveness of giving preschool children access, at home, to
             345      interactive individualized instruction delivered by computers and the Internet to prepare them
             346      academically for success in school; and
             347          (b) test the feasibility of scaling a home-based curriculum in reading, math, and science
             348      delivered by computers and the Internet to all preschool children in Utah.
             349          (3) The State Board of Education shall contract with an educational technology
             350      provider, selected through a request for proposals process, for the delivery of a home-based
             351      educational technology program for preschool children that meets the requirements of
             352      Subsection (4).
             353          (4) A home-based educational technology program for preschool children shall meet
             354      the following standards:
             355          (a) the contractor shall provide computer-assisted instruction for preschool children on
             356      a home computer connected by the Internet to a centralized file storage facility;
             357          (b) the contractor shall:
             358          (i) provide technical support to families for the installation and operation of the
             359      instructional software; and
             360          (ii) provide for the installation of computer and Internet access in homes of low income
             361      families that cannot afford the equipment and service;
             362          (c) the contractor shall have the capability of doing the following through the Internet:
             363          (i) communicating with parents;
             364          (ii) updating the instructional software;
             365          (iii) validating user access;
             366          (iv) collecting usage data;
             367          (v) storing research data; and
             368          (vi) producing reports for parents, schools, and the Legislature;


             369          (d) the program shall include the following components:
             370          (i) computer-assisted, individualized instruction in reading, mathematics, and science;
             371          (ii) a multisensory reading tutoring program; and
             372          (iii) a validated computer adaptive reading test that does not require the presence of
             373      trained adults to administer and is an accurate indicator of reading readiness of children who
             374      cannot read;
             375          (e) the contractor shall have the capability to quickly and efficiently modify, improve,
             376      and support the product;
             377          (f) the contractor shall work in cooperation with school district personnel who w