Second Substitute S.B. 2

Representative Bradley G. Last proposes the following substitute bill:

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 $2,497,012,086;
17 . modifies provisions related to the funding of charter schools;
18 . modifies requirements regarding instructional materials;
19 . authorizes the use of appropriations for accelerated learning programs for
20 International Baccalaureate programs;
21 . modifies the positions that qualify for educator salary adjustments and increases the
22 salary adjustments for those positions;
23 . establishes and funds the following ongoing programs:
24 . a pilot project using a home-based educational technology program to develop
25 school readiness skills of preschool children;

26 . a financial and economic literacy passport to track student mastery of certain
27 concepts;
28 . the Teacher Salary Supplement Program to provide a salary supplement to an
29 eligible teacher;
30 . stipends for special educators for additional days of work;
31 . an optional grant program to provide an extended year for math and science
32 teachers through the creation of Utah Science Technology and Research
33 Centers;
34 . the High-ability Student Initiative Program to provide resources for educators to
35 enhance the academic growth of high-ability students;
36 . the English Language Learner Family Literacy Centers Program; and
37 . career and technical education online assessment;
38 . makes one-time appropriations for fiscal year 2008-09 for:
39 . pupil transportation to and from school;
40 . the Beverley Taylor Sorenson Elementary Arts Learning Program to provide
41 grants to integrate arts teaching and learning into selected schools; and
42 . classroom supplies;
43 . provides a repeal date for certain pilot programs;
44 . makes nonlapsing appropriations; and
45 . makes technical corrections.
46 Monies Appropriated in this Bill:
47 This bill appropriates:
48 . the following Minimum School Program Monies:
49 . $2,438,692,586 from the Uniform School Fund for fiscal year 2008-09;
50 . $26,499,500 from the Uniform School Fund Restricted - Interest and Dividends
51 Account for fiscal year 2008-09;
52 . $31,820,000 from the Uniform School Fund for fiscal year 2008-09 only; and
53 . $280,000 from the Uniform School Fund for fiscal year 2007-08 only; and
54 . the following other education program monies:
55 . $3,000,000 from the Uniform School Fund for fiscal year 2008-09;
56 . $150,000 from the Uniform School Fund for fiscal year 2008-09 only;

57 . $1,000,000 from the Uniform School Fund for fiscal year 2007-08 only;
58 . $250,000 from the General Fund for fiscal year 2008-09; and
59 . $50,000 from the General Fund for fiscal year 2007-08 only.
60 Other Special Clauses:
61 This bill provides an effective date.
62 This bill coordinates with H.B. 1 by providing superseding and substantive
63 amendments.
64 Utah Code Sections Affected:
65 AMENDS:
66 53A-1a-502.5, as last amended by Laws of Utah 2007, Chapter 344
67 53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9 and 291
68 53A-14-107, as enacted by Laws of Utah 2007, Chapter 349
69 53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
70 53A-17a-104, as last amended by Laws of Utah 2007, Chapters 2, 344, 368, and 372
71 53A-17a-108, as last amended by Laws of Utah 2007, Chapter 344
72 53A-17a-120, as last amended by Laws of Utah 2007, Chapter 368
73 53A-17a-126, as last amended by Laws of Utah 2003, Chapters 221 and 320
74 53A-17a-127, as last amended by Laws of Utah 2001, Chapter 73
75 53A-17a-153, as enacted by Laws of Utah 2007, Chapter 380
76 63-55b-153, as last amended by Laws of Utah 2007, Chapter 216
77 ENACTS:
78 53A-1a-1001, Utah Code Annotated 1953
79 53A-1a-1002, Utah Code Annotated 1953
80 53A-1a-1003, Utah Code Annotated 1953
81 53A-1a-1004, Utah Code Annotated 1953
82 53A-1a-1005, Utah Code Annotated 1953
83 53A-1a-1006, Utah Code Annotated 1953
84 53A-1a-1007, Utah Code Annotated 1953
85 53A-13-110, Utah Code Annotated 1953
86 53A-17a-156, Utah Code Annotated 1953
87 53A-17a-157, Utah Code Annotated 1953

88 53A-17a-158, Utah Code Annotated 1953
89 53A-17a-159, Utah Code Annotated 1953
90 53A-17a-160, Utah Code Annotated 1953
91 53A-17a-161, Utah Code Annotated 1953
92 53A-17a-162, Utah Code Annotated 1953
93
94 Be it enacted by the Legislature of the state of Utah:
95 Section 1. Section 53A-1a-502.5 is amended to read:
96 53A-1a-502.5. Charter schools -- Maximum authorized students.
97 (1) The State Charter School Board and local school boards may only authorize a
98 combined maximum student capacity of:
99 [(a) 27,921 students for the charter schools in the 2007-08 school year; and]
100 [(b)] (a) 32,921 students for the charter schools in the 2008-09 school year[.]; and
101 (b) beginning in the 2009-10 school year, an annual increase in charter school
102 enrollment capacity equal to 1.4% of total school district enrollment as of October 1 of the
103 previous school year.
104 (2) (a) The State Board of Education, in consultation with the State Charter School
105 Board, shall allocate the students under Subsection (1) between the State Charter School Board
106 and local school boards.
107 (b) One-third of the student capacity described under Subsection (1)(b) shall be
108 allocated to increase the maximum student capacity of operating charter schools.
109 (c) If the operating charter schools do not use the allocation described under
110 Subsection (2)(b), the remaining student capacity may be used by new charter schools.
111 Section 2. Section 53A-1a-513 is amended to read:
112 53A-1a-513. Funding for charter schools.
113 (1) As used in this section:
114 (a) "Charter school students' average local revenues" means the amount determined as
115 follows:
116 (i) for each student enrolled in a charter school on the previous October 1, calculate the
117 district per pupil local revenues of the school district in which the student resides;
118 (ii) sum the district per pupil local revenues for each student enrolled in a charter

119 school on the previous October 1; and
120 (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
121 enrolled in charter schools on the previous October 1.
122 (b) "District per pupil local revenues" means the amount determined as follows, using
123 data from the most recently published school district annual financial reports and state
124 superintendent's annual report:
125 (i) calculate the sum of a school district's revenue received from:
126 (A) a voted levy imposed under Section 53A-17a-133 ;
127 (B) a board levy imposed under Section 53A-17a-134 ;
128 (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
129 (D) a tort liability levy imposed under Section 63-30d-704 ;
130 (E) a capital outlay levy imposed under Section 53A-16-107 ; and
131 (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
132 (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
133 (A) a school district's average daily membership; and
134 (B) the average daily membership of a school district's resident students who attend
135 charter schools.
136 (c) "Resident student" means a student who is considered a resident of the school
137 district under Title 53A,Chapter 2, District of Residency.
138 (d) "Statewide average debt service revenues" means the amount determined as
139 follows, using data from the most recently published state superintendent's annual report:
140 (i) sum the revenues of each school district from the debt service levy imposed under
141 Section 11-14-310 ; and
142 (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
143 average daily membership.
144 [(1)] (2) (a) Charter schools shall receive funding as described in this section, except
145 Subsections [(2)] (3) through [(7)] (8) do not apply to charter schools described in Subsection
146 [(1)] (2)(b).
147 (b) Charter schools authorized by local school boards that are converted from district
148 schools or operate in district facilities without paying reasonable rent shall receive funding as
149 prescribed in Section 53A-1a-515 .

150 [(2)] (3) (a) Except as provided in Subsection [(2)] (3)(b), a charter school shall receive
151 state funds, as applicable, on the same basis as a school district receives funds.
152 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
153 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
154 (i) .55 for kindergarten pupils;
155 (ii) .9 for pupils in grades 1-6;
156 (iii) .99 for pupils in grades 7-8; and
157 (iv) 1.2 for pupils in grades 9-12.
158 [(c) The State Board of Education shall make rules in accordance with Title 63,
159 Chapter 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including
160 hold harmless provisions to maintain a charter elementary school's funding level for a period of
161 two years after the effective date of the distribution formula.]
162 [(d) Subsection (2)(b) does not apply to funds appropriated to charter schools to
163 replace local property tax revenues.]
164 [(3) The State Board of Education shall adopt rules to provide for the distribution of
165 monies to charter schools under this section.]
166 [(4) (a) The Legislature shall provide an appropriation for charter schools for each of
167 their students to replace some of the local property tax revenues that are not available to charter
168 schools. The amount of money provided for each charter school student shall be determined
169 by:]
170 [(i) calculating the sum of:]
171 [(A) school districts' operations and maintenance revenues derived from local property
172 taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
173 53A-17a-135 ;]
174 [(B) school districts' capital projects revenues derived from local property taxes; and]
175 [(C) school districts' expenditures for interest on debt; and]
176 [(ii) dividing the sum by the total average daily membership of the districts' schools.]
177 (4) (a) (i) Except as provided in Subsection (4)(a)(ii), a school district shall allocate a
178 portion of school district revenues for each resident student of the school district who is
179 enrolled in a charter school on October 1 equal to 25% of the lesser of:
180 (A) district per pupil local revenues; or

181 (B) charter school students' average local revenues.
182 (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i), a
183 kindergarten student who is enrolled in less than a full-day kindergarten program is weighted as
184 .55 of a student.
185 (iii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
186 established under Chapter 28, Utah School Bond Guaranty Act.
187 (b) The State Board of Education shall:
188 (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
189 state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum
190 School Program Act; and
191 (ii) remit the money to the student's charter school.
192 (c) Notwithstanding the method used to transfer school district revenues to charter
193 schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
194 schools under this section from:
195 (i) unrestricted revenues available to the school district; or
196 (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through (F) based on the
197 portion of the allocations to charter schools attributed to each of the revenue sources listed in
198 Subsections (1)(b)(i)(A) through (F).
199 (d) (i) Subject to future budget constraints, the Legislature shall provide an
200 appropriation for charter schools for each student enrolled on October 1 to supplement the
201 allocation of school district revenues under Subsection (4)(a).
202 (ii) Except as provided in Subsections (4)(d)(iii) and (iv), the amount of money
203 provided by the state for a charter school student shall be the sum of:
204 (A) charter school students' average local revenues minus the allocation of school
205 district revenues under Subsection (4)(a); and
206 (B) statewide average debt service revenues.
207 (iii) If the total of a school district's allocation for a charter school student under
208 Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
209 $1427, the state shall provide an additional supplement so that a charter school receives at least
210 $1427 per student under this Subsection (4).
211 (iv) For the purpose of providing state monies for charter school students under this

212 Subsection (4)(d), a kindergarten student who is enrolled in less than a full-day kindergarten
213 program is weighted as .55 of a student.
214 [(b)] (e) Of the monies provided to a charter school under this Subsection (4)[(a)], 10%
215 shall be expended for funding school facilities only.
216 [(c) To qualify for money under Subsection (4)(a), a new charter school shall, by
217 September 30 of the school year prior to the school year it intends to begin operations:]
218 [(i) obtain approval of its application for a charter from:]
219 [(A) the State Board of Education, pursuant to Section 53A-1a-505 ; or]
220 [(B) a local school board, pursuant to Section 53A-1a-515 ; and]
221 [(ii) submit to the chartering entity an estimate of the charter school's first year
222 enrollment.]
223 [(d) Subsection (4)(c) does not apply to charter schools beginning operations in the
224 2005-06 school year.]
225 [(e) By December 1, the State Charter School Board shall submit to the Governor's
226 Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
227 total charter school enrollment in the state for the following school year.]
228 (5) Charter schools are eligible to receive federal funds if they meet all applicable
229 federal requirements and comply with relevant federal regulations.
230 (6) The State Board of Education shall distribute funds for charter school students
231 directly to the charter school.
232 (7) (a) Notwithstanding Subsection [(2)] (3), a charter school is not eligible to receive
233 state transportation funding.
234 (b) The board shall also adopt rules relating to the transportation of students to and
235 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
236 (c) The governing body of the charter school may provide transportation through an
237 agreement or contract with the local school board, a private provider, or with parents.
238 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
239 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
240 the implementation of this part.
241 (ii) Applications for the grants shall be filed on a form determined by the state
242 superintendent and in conjunction with the application for a charter.

243 (iii) The amount of a grant may vary based upon the size, scope, and special
244 circumstances of the charter school.
245 (iv) The governing board of the charter school shall use the grant to meet the expenses
246 of the school as established in the school's charter.
247 (b) The State Board of Education shall coordinate the distribution of federal monies
248 appropriated to help fund costs for establishing and maintaining charter schools within the
249 state.
250 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
251 endowment, gift, or donation of any property made to the school for any of the purposes of this
252 part.
253 (b) It is unlawful for any person affiliated with a charter school to demand or request
254 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
255 with the charter school as a condition for employment or enrollment at the school or continued
256 attendance at the school.
257 [(10) The State Office of Education shall use up to $1,044,000 of funding provided for
258 new growth to fund additional growth needs in charter schools in fiscal year 2005.]
259 Section 3. Section 53A-1a-1001 is enacted to read:
260 Part 10. UPSTART
261 53A-1a-1001. Definitions.
262 As used in this part:
263 (1) "Contractor" means the educational technology provider selected by the State Board
264 of Education under Section 53A-1a-1002 .
265 (2) "Low income" means an income below 200% of the federal poverty guideline.
266 (3) "Preschool children" means children who are:
267 (a) age four or five; and
268 (b) have not entered kindergarten.
269 (4) "UPSTART" means the pilot project established by Section 53A-1a-1002 that uses
270 a home-based educational technology program to develop school readiness skills of preschool
271 children.
272 Section 4. Section 53A-1a-1002 is enacted to read:
273 53A-1a-1002. Pilot project to develop school readiness skills of preschool children.

274 (1) UPSTART, a pilot project that uses a home-based educational technology program
275 to develop school readiness skills of preschool children, is established within the public
276 education system.
277 (2) UPSTART is created to:
278 (a) evaluate the effectiveness of giving preschool children access, at home, to
279 interactive individualized instruction delivered by computers and the Internet to prepare them
280 academically for success in school; and
281 (b) test the feasibility of scaling a home-based curriculum in reading, math, and science
282 delivered by computers and the Internet to all preschool children in Utah.
283 (3) The State Board of Education shall contract with an educational technology
284 provider, selected through a request for proposals process, for the delivery of a home-based
285 educational technology program for preschool children that meets the requirements of
286 Subsection (4).
287 (4) A home-based educational technology program for preschool children shall meet
288 the following standards:
289 (a) the contractor shall provide computer-assisted instruction for preschool children on
290 a home computer connected by the Internet to a centralized file storage facility;
291 (b) the contractor shall:
292 (i) provide technical support to families for the installation and operation of the
293 instructional software; and
294 (ii) provide for the installation of computer and Internet access in homes of low income
295 families that cannot afford the equipment and service;
296 (c) the contractor shall have the capability of doing the following through the Internet:
297 (i) communicating with parents;
298 (ii) updating the instructional software;
299 (iii) validating user access;
300 (iv) collecting usage data;
301 (v) storing research data; and
302 (vi) producing reports for parents, schools, and the Legislature;
303 (d) the program shall include the following components:
304 (i) computer-assisted, individualized instruction in reading, mathematics, and science;

305 (ii) a multisensory reading tutoring program; and
306 (iii) a validated computer adaptive reading test that does not require the presence of
307 trained adults to administer and is an accurate indicator of reading readiness of children who
308 cannot read;
309 (e) the contractor shall have the capability to quickly and efficiently modify, improve,
310 and support the product;
311 (f) the contractor shall work in cooperation with school district personnel who will
312 provide administrative and technical support of the program as provided in Section
313 53A-1a-1003 ;
314 (g) the contractor shall solicit families to participate in the program as provided in
315 Section 53A-1a-1004 ; and
316 (h) in implementing the home-based educational technology program, the contractor
317 shall seek the advise and expertise of early childhood education professionals within the Utah
318 System of Higher Education on issues such as:
319 (i) soliciting families to participate in the program;
320 (ii) providing training to families; and
321 (iii) motivating families to regularly use the instructional software.
322 (5) The contract shall provide funding for a home-based educational technology
323 program for preschool children for one year with an option to extend the contract for additional
324 years or to expand the program to a greater number of preschool children, subject to the
325 appropriation of money by the Legislature for UPSTART.
326 Section 5. Section 53A-1a-1003 is enacted to read:
327 53A-1a-1003. School district participation in UPSTART.
328 (1) A school district may participate in UPSTART if the local school board agrees to
329 work in cooperation with the contractor to provide administrative and technical support for the
330 pilot project.
331 (2) Family participants in UPSTART shall be solicited from school districts that
332 participate in UPSTART.
333 (3) A school district that participates in UPSTART shall:
334 (a) receive funding for:
335 (i) paraprofessional and technical support staff; and

336 (ii) travel, materials, and meeting costs of the program;
337 (b) participate in program training by the contractor; and
338 (c) agree to adopt standardized policies and procedures in implementing the pilot
339 project.
340 Section 6. Section 53A-1a-1004 is enacted to read:
341 53A-1a-1004. Family participation in UPSTART.
342 (1) The contractor shall solicit families to participate in UPSTART through a public
343 information campaign and referrals from participating school districts.
344 (2) (a) Preschool children who participate in UPSTART shall:
345 (i) be from families with diverse socioeconomic and ethnic backgrounds; and
346 (ii) reside in different regions of the state in both urban and rural areas.
347 (b) At least 30% of the preschool children who participate in UPSTART shall be from
348 low income families.
349 (3) A low income family that cannot afford a computer and Internet service to operate
350 the instructional software may obtain a computer and peripheral equipment on loan and receive
351 free Internet service for the duration of the family's participation in the pilot project.
352 (4) The contractor shall make the home-based educational technology program
353 available to families at an agreed upon cost if the number of families who would like to
354 participate in UPSTART exceeds the number of participants funded by the legislative
355 appropriation.
356 Section 7. Section 53A-1a-1005 is enacted to read:
357 53A-1a-1005. Purchase of equipment and service through cooperative purchasing
358 contracts.
359 The State Board of Education or a school district may purchase computers, peripheral
360 equipment, and Internet service for low income families who cannot afford them through
361 cooperative purchasing contracts administered by the state Division of Purchasing and General
362 Services.
363 Section 8. Section 53A-1a-1006 is enacted to read:
364 53A-1a-1006. Audit and evaluation.
365 (1) The state auditor shall:
366 (a) conduct an annual audit of the contractor's use of funds for UPSTART; or

367 (b) contract with an independent certified public accountant to conduct an annual audit.
368 (2) The State Board of Education shall:
369 (a) require by contract that the contractor will open its books and records relating to its
370 expenditure of funds pursuant to the contract to the state auditor or the state auditor's designee;
371 (b) reimburse the state auditor for the actual and necessary costs of the audit; and
372 (c) contract with an independent, qualified evaluator, selected through a request for
373 proposals process, to evaluate the home-based educational technology program for preschool
374 children.
375 &n