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