S.B. 2 Enrolled

1

MINIMUM SCHOOL PROGRAM AND PUBLIC EDUCATION
2 BUDGET AMENDMENTS
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Howard A. Stephenson
6 House Sponsor: Merlynn T. Newbold
7
8 LONG TITLE
9 General Description:
10 This bill supplements or reduces appropriations previously provided for school
11 districts, charter schools, and certain state education agencies for the fiscal year
12 beginning July 1, 2010 and ending June 30, 2011 and modifies related budgetary
13 provisions.
14 Highlighted Provisions:
15 This bill:
16 . provides budget increases and decreases for the use and support of certain state
17 education agencies;
18 . provides budget increases and decreases for programs that support school districts
19 and charter schools;
20 . provides intent language;
21 . establishes the value of the weighted pupil unit at $2,577 for fiscal year 2010-11;
22 . prescribes the powers and duties of the State Board of Education to adjust
23 Minimum School Program allocations;
24 . provides that monies appropriated to the State Board of Education are nonlapsing;
25 . modifies the state guarantee under the voted leeway and board-authorized leeway
26 programs;
27 . provides that the state guarantee under the voted leeway and board-authorized
28 leeway programs shall apply to tax rates approved by a certain date;
29 . provides that if monies appropriated to charter schools to replace local property

30 taxes are less than the amount prescribed by a statutory funding formula, monies shall be
31 allocated among charter schools in proportion to each charter school's share of the total
32 enrollment in charter schools;
33 . provides that if monies appropriated for charter school administrative costs are
34 insufficient to provide the amount per student prescribed in statute, the
35 appropriation shall be allocated among charter schools in proportion to each charter
36 school's share of the total enrollment in charter schools;
37 . provides that if the Legislature reduces funding to public schools due to an
38 Education Fund budget deficit:
39 . the reduction shall be allocated in proportion to each school district's or charter
40 school's share of Minimum School Program funds; and
41 . a school district or charter school may determine which programs, with certain
42 exceptions, are affected by the reduction; and
43 . makes technical amendments.
44 Monies Appropriated in this Bill:
45 This bill appropriates for fiscal year 2010-11:
46 . $946,200 from the General Fund;
47 . ($2,048,016,623) from the Uniform School Fund;
48 . $2,362,586,586 from the Education Fund; and
49 . $1,000 from various sources as detailed in this bill.
50 Other Special Clauses:
51 This bill takes effect on July 1, 2010.
52 Utah Code Sections Affected:
53 AMENDS:
54 53A-1a-513, as last amended by Laws of Utah 2009, Chapter 391
55 53A-17a-108, as last amended by Laws of Utah 2009, Chapter 391
56 53A-17a-133, as last amended by Laws of Utah 2009, Chapters 204 and 391
57 53A-17a-134, as last amended by Laws of Utah 2009, Chapter 391

58 53A-17a-146, as last amended by Laws of Utah 2009, Chapter 4
59 63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
60 REPEALS AND REENACTS:
61 53A-17a-105, as last amended by Laws of Utah 2009, Chapter 183
62 Uncodified Material Affected:
63 ENACTS UNCODIFIED MATERIAL
64
65 Be it enacted by the Legislature of the state of Utah:
66 Section 1. Section 53A-1a-513 is amended to read:
67 53A-1a-513. Funding for charter schools.
68 (1) As used in this section:
69 (a) "Charter school students' average local revenues" means the amount determined as
70 follows:
71 (i) for each student enrolled in a charter school on the previous October 1, calculate
72 the district per pupil local revenues of the school district in which the student resides;
73 (ii) sum the district per pupil local revenues for each student enrolled in a charter
74 school on the previous October 1; and
75 (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
76 enrolled in charter schools on the previous October 1.
77 (b) "District per pupil local revenues" means the amount determined as follows, using
78 data from the most recently published school district annual financial reports and state
79 superintendent's annual report:
80 (i) calculate the sum of a school district's revenue received from:
81 (A) a voted levy imposed under Section 53A-17a-133 ;
82 (B) a board levy imposed under Section 53A-17a-134 ;
83 (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
84 (D) a tort liability levy imposed under Section 63G-7-704 ;
85 (E) a capital outlay levy imposed under Section 53A-16-107 ; and

86 (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
87 (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
88 (A) a school district's average daily membership; and
89 (B) the average daily membership of a school district's resident students who attend
90 charter schools.
91 (c) "Resident student" means a student who is considered a resident of the school
92 district under Title 53A, Chapter 2, Part 2, District of Residency.
93 (d) "Statewide average debt service revenues" means the amount determined as
94 follows, using data from the most recently published state superintendent's annual report:
95 (i) sum the revenues of each school district from the debt service levy imposed under
96 Section 11-14-310 ; and
97 (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
98 average daily membership.
99 (2) (a) Charter schools shall receive funding as described in this section, except
100 Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
101 (b) Charter schools authorized by local school boards that are converted from district
102 schools or operate in district facilities without paying reasonable rent shall receive funding as
103 prescribed in Section 53A-1a-515 .
104 (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
105 funds, as applicable, on the same basis as a school district receives funds.
106 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program
107 Act, to charter schools, charter school pupils shall be weighted, where applicable, as follows:
108 (i) .55 for kindergarten pupils;
109 (ii) .9 for pupils in grades 1-6;
110 (iii) .99 for pupils in grades 7-8; and
111 (iv) 1.2 for pupils in grades 9-12.
112 (4) (a) (i) A school district shall allocate a portion of school district revenues for each
113 resident student of the school district who is enrolled in a charter school on October 1 equal to

114 25% of the lesser of:
115 (A) district per pupil local revenues; or
116 (B) charter school students' average local revenues.
117 [(ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i) in
118 fiscal year 2008-09 only, a kindergarten student who is enrolled in less than a full-day
119 kindergarten program is weighted as .55 of a student.]
120 [(iii)] (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
121 established under Chapter 28, Utah School Bond Guaranty Act.
122 (b) The State Board of Education shall:
123 (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
124 state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum
125 School Program Act; and
126 (ii) remit the money to the student's charter school.
127 (c) Notwithstanding the method used to transfer school district revenues to charter
128 schools as provided in Subsection (4)(b), a school district may deduct the allocations to
129 charter schools under this section from:
130 (i) unrestricted revenues available to the school district; or
131 (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through (F) based on the
132 portion of the allocations to charter schools attributed to each of the revenue sources listed in
133 Subsections (1)(b)(i)(A) through (F).
134 (d) (i) Subject to future budget constraints, the Legislature shall provide an
135 appropriation for charter schools for each student enrolled on October 1 to supplement the
136 allocation of school district revenues under Subsection (4)(a).
137 (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
138 state for a charter school student shall be the sum of:
139 (A) charter school students' average local revenues minus the allocation of school
140 district revenues under Subsection (4)(a); and
141 (B) statewide average debt service revenues.

142 (iii) If the total of a school district's allocation for a charter school student under
143 Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
144 $1427, the state shall provide an additional supplement so that a charter school receives at
145 least $1427 per student under this Subsection (4).
146 (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
147 amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
148 among charter schools in proportion to each charter school's enrollment as a percentage of the
149 total enrollment in charter schools.
150 (B) If the State Board of Education makes adjustments to Minimum School Program
151 allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
152 (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
153 (e) Of the monies provided to a charter school under this Subsection (4), 10% shall be
154 expended for funding school facilities only.
155 (5) Charter schools are eligible to receive federal funds if they meet all applicable
156 federal requirements and comply with relevant federal regulations.
157 (6) The State Board of Education shall distribute funds for charter school students
158 directly to the charter school.
159 (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
160 transportation funding.
161 (b) The board shall also adopt rules relating to the transportation of students to and
162 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
163 (c) The governing body of the charter school may provide transportation through an
164 agreement or contract with the local school board, a private provider, or with parents.
165 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
166 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
167 the implementation of this part.
168 (ii) Applications for the grants shall be filed on a form determined by the state
169 superintendent and in conjunction with the application for a charter.

170 (iii) The amount of a grant may vary based upon the size, scope, and special
171 circumstances of the charter school.
172 (iv) The governing board of the charter school shall use the grant to meet the expenses
173 of the school as established in the school's charter.
174 (b) The State Board of Education shall coordinate the distribution of federal monies
175 appropriated to help fund costs for establishing and maintaining charter schools within the
176 state.
177 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
178 endowment, gift, or donation of any property made to the school for any of the purposes of this
179 part.
180 (b) It is unlawful for any person affiliated with a charter school to demand or request
181 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
182 with the charter school as a condition for employment or enrollment at the school or continued
183 attendance at the school.
184 Section 2. Section 53A-17a-105 is repealed and reenacted to read:
185 53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
186 School Program allocations.
187 (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
188 in a program is underestimated, the State Board of Education shall reduce the value of the
189 weighted pupil unit in that program so that the total amount paid for the program does not
190 exceed the amount appropriated for the program.
191 (2) If the number of weighted pupil units in a program is overestimated, the State
192 Board of Education shall spend excess monies appropriated for the following purposes giving
193 priority to the purpose described in Subsection (2)(a):
194 (a) to support the value of the weighted pupil unit in a program within the basic
195 state-supported school program in which the number of weighted pupil units is
196 underestimated;
197 (b) to support the state guarantee per weighted pupil unit provided under the voted

198 leeway program established in Section 53A-17a-133 or the board-approved leeway program
199 established in Section 53A-17a-134 , if:
200 (i) local contributions to the voted leeway program or board-approved leeway program
201 are overestimated; or
202 (ii) the number of weighted pupil units within school districts qualifying for a
203 guarantee is underestimated;
204 (c) to support the state supplement to local property taxes allocated to charter schools,
205 if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4);
206 (d) for charter school administrative costs, if the appropriation for charter school
207 administrative costs is insufficient to provide the amount per student prescribed in Subsection
208 53A-17a-108 (2)(a); or
209 (e) to support a school district with a loss in student enrollment as provided in Section
210 53A-17a-139 .
211 (3) If local contributions from the minimum basic tax rate imposed under Section
212 53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
213 weighted pupil unit for all programs within the basic state-supported school program so the
214 total state contribution to the basic state-supported school program does not exceed the
215 amount of state funds appropriated.
216 (4) If local contributions from the minimum basic tax rate imposed under Section
217 53A-17a-135 are underestimated, the State Board of Education shall:
218 (a) spend the excess local contributions for the purposes specified in Subsection (2),
219 giving priority to supporting the value of the weighted pupil unit in programs within the basic
220 state-supported school program in which the number of weighted pupil units is
221 underestimated; and
222 (b) reduce the state contribution to the basic state-supported school program so the
223 total cost of the basic state-supported school program does not exceed the total state and local
224 funds appropriated to the basic state-supported school program plus the local contributions
225 necessary to support the value of the weighted pupil unit in programs within the basic

226 state-supported school program in which the number of weighted pupil units is
227 underestimated.
228 (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
229 reduce the guarantee per weighted pupil unit provided under the voted leeway program
230 established in Section 53A-17a-133 or board-approved leeway program established in Section
231 53A-17a-134 , if:
232 (a) local contributions to the voted leeway program or board-approved leeway program
233 are overestimated; or
234 (b) the number of weighted pupil units within school districts qualifying for a
235 guarantee is underestimated.
236 (6) Monies appropriated to the State Board of Education are nonlapsing.
237 (7) The State Board of Education shall report actions taken by the board under this
238 section to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
239 and Budget.
240 Section 3. Section 53A-17a-108 is amended to read:
241 53A-17a-108. Weighted pupil units for small school district administrative costs
242 -- Appropriation for charter school administrative costs.
243 (1) Administrative costs weighted pupil units are computed and distributed to small
244 school districts in accordance with the following schedule:
245 Administrative Costs Schedule
246 School District Enrollment as of October 1 Weighted Pupil Units
247 1 - 500 students 95
248 501 - 1,000 students 80
249 1,001 - 2,000 students 70
250 2,001 - 5,000 students 60
251 (2) (a) [Money] Except as provided in Subsection (2)(b), money appropriated to the
252 State Board of Education for charter school administrative costs[, including an appropriation
253 in Section 53A-17a-104 ,] shall be distributed to charter schools in the amount of $100 for

254 each charter school student in enrollment.
255 (b) (i) If money appropriated for charter school administrative costs is insufficient to
256 provide the amount per student prescribed in Subsection (2)(a), the appropriation shall be
257 allocated among charter schools in proportion to each charter school's enrollment as a
258 percentage of the total enrollment in charter schools.
259 (ii) If the State Board of Education makes adjustments to Minimum School Program
260 allocations under Section 53A-17a-105 , the allocation provided in Subsection (2)(b)(i) shall be
261 determined after adjustments are made under Section 53A-17a-105 .
262 [(b)] (c) Charter schools are encouraged to identify and use cost-effective methods of
263 performing administrative functions, including contracting for administrative services with the
264 State Charter School Board as provided in Section 53A-1a-501.6 .
265 (3) Charter schools are not eligible for funds for administrative costs under Subsection
266 (1).
267 Section 4. Section 53A-17a-133 is amended to read:
268 53A-17a-133. State-supported voted leeway program authorized -- Election
269 requirements -- State guarantee -- Reconsideration of the program.
270 (1) An election to consider adoption or modification of a voted leeway program is
271 required if initiative petitions signed by 10% of the number of electors who voted at the last
272 preceding general election are presented to the local school board or by action of the board.
273 (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
274 voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
275 special tax.
276 (ii) The tax rate may not exceed .002 per dollar of taxable value.
277 (b) The district may maintain a school program which exceeds the cost of the program
278 referred to in Section 53A-17a-145 with this voted leeway.
279 (c) In order to receive state support the first year, a district must receive voter approval
280 no later than December 1 of the year prior to implementation.
281 (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient

282 to guarantee $25.25 per weighted pupil unit for each .0001 of the first .0016 per dollar of
283 taxable value.
284 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
285 of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
286 in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
287 taxable value if a school district levies a tax rate under both programs.
288 (c) [(i)] Beginning July 1, [2009] 2011, the $25.25 guarantee under Subsections (3)(a)
289 and (b) shall be indexed each year to the value of the weighted pupil unit by making the value
290 of the guarantee equal to [.009798] .010544 times the value of the prior year's weighted pupil
291 unit.
292 [(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
293 pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
294 the prior year's weighted pupil unit.]
295 (d) (i) The amount of state guarantee money to which a school district would
296 otherwise be entitled to under this Subsection (3) may not be reduced for the sole reason that
297 the district's levy is reduced as a consequence of changes in the certified tax rate under Section
298 59-2-924 pursuant to changes in property valuation.
299 (ii) Subsection (3)(d)(i) applies for a period of five years following any such change in
300 the certified tax rate.
301 (e) The guarantee provided under this section does not apply to the portion of a voted
302 leeway rate that exceeds the voted leeway rate that was in effect for the previous fiscal year,
303 unless an increase in the voted leeway rate was authorized in an election conducted on or after
304 July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
305 (4) (a) An election to modify an existing voted leeway program is not a
306 reconsideration of the existing program unless the proposition submitted to the electors
307 expressly so states.
308 (b) A majority vote opposing a modification does not deprive the district of authority
309 to continue an existing program.

310 (c) If adoption of a leeway program is contingent upon an offset reducing other local
311 school board levies, the board must allow the electors, in an election, to consider modifying or
312 discontinuing the program prior to a subsequent increase in other levies that would increase
313 the total local school board levy.
314 (d) Nothing contained in this section terminates, without an election, the authority of a
315 school district to continue an existing voted leeway program previously authorized by the
316 voters.
317 (5) Notwithstanding Section 59-2-919 , a school district may budget an increased
318 amount of ad valorem property tax revenue derived from a voted leeway imposed under this
319 section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without
320 having to comply with the notice requirements of Section 59-2-919 , if:
321 (a) the voted leeway is approved:
322 (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
323 (ii) within the four-year period immediately preceding the year in which the school
324 district seeks to budget an increased amount of ad valorem property tax revenue derived from
325 the voted leeway; and
326 (b) for a voted leeway approved or modified in accordance with this section on or after
327 January 1, 2009, the school district complies with the requirements of Subsection (7).
328 (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
329 section that exceeds the certified tax rate without having to comply with the notice
330 requirements of Section 59-2-919 if:
331 (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
332 increased amount of ad valorem property tax revenue derived from a voted leeway imposed
333 under this section;
334 (b) [if] the voted leeway was approved:
335 (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
336 (ii) within the four-year period immediately preceding the year in which the school
337 district seeks to budget an increased amount of ad valorem property tax revenue derived from

338 the voted leeway; and
339 (c) for a voted leeway approved or modified in accordance with this section on or after
340 January 1, 2009, the school district complies with requirements of Subsection (7).
341 (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
342 electors regarding the adoption or modification of a voted leeway program shall contain the
343 following statement:
344 "A vote in favor of this tax means that (name of the school district) may increase
345 revenue from this property tax without advertising the increase for the next five years."
346 Section 5. Section 53A-17a-134 is amended to read:
347 53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
348 (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
349 value to maintain a school program above the cost of the basic school program as follows:
350 (a) a local school board shall use the monies generated by the tax for class size
351 reduction within the school district;
352 (b) if a local school board determines that the average class size in the school district
353 is not excessive, it may use the monies for other school purposes but only if the board has
354 declared the use for other school purposes in a public meeting prior to levying the tax rate; and
355 (c) a district may not use the monies for other school purposes under Subsection (1)(b)
356 until it has certified in writing that its class size needs are already being met and has identified
357 the other school purposes for which the monies will be used to the State Board of Education
358 and the state board has approved their use for other school purposes.
359 (2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per
360 weighted pupil unit for each .0001 per dollar of taxable value.
361 (b) The guarantee shall increase in the same manner as provided for the voted leeway
362 guarantee in [Subsections] Subsection 53A-17a-133 (3)(c)[(i) and (ii)].
363 (c) (i) The amount of state guarantee money to which a school district would otherwise
364 be entitled to under this Subsection (2) may not be reduced for the sole reason that the
365 district's levy is reduced as a consequence of changes in the certified tax rate under Section

366 59-2-924 pursuant to changes in property valuation.
367 (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
368 the certified tax rate.
369 (d) The guarantee provided under this section does not apply to:
370 (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
371 leeway was approved by voters pursuant to Subsections (4) through (6); or
372 (ii) the portion of a board-authorized leeway rate that is in excess of the
373 board-authorized leeway rate that was in effect for the previous fiscal year.
374 (3) The levy authorized under this section is not in addition to the maximum rate of
375 .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
376 rate under that section.
377 (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
378 require voter approval, but the board may require voter approval if requested by a majority of
379 the board.
380 (5) An election to consider disapproval of the board-authorized levy is required, if
381 within 60 days after the levy is established by the board, referendum petitions signed by the
382 number of legal voters required in Section 20A-7-301 , who reside within the school district,
383 are filed with the school district.
384 (6) (a) A local school board shall establish its board-approved levy by April 1 to have
385 the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
386 election is required under this section, the levy applies to the fiscal year beginning July 1 of
387 the next calendar year.
388 (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
389 occur at a general election in even-numbered years, except that a vote required under this
390 section in odd-numbered years shall occur at a special election held on a day in odd-numbered
391 years that corresponds to the general election date. The school district shall pay for the cost of
392 a special election.
393 (7) (a) Modification or termination of a voter-approved leeway rate authorized under

394 this section is governed by Section 53A-17a-133 .
395 (b) A board-authorized leeway rate may be modified or terminated by a majority vote
396 of the board subject to disapproval procedures specified in this section.
397 (8) A board levy election does not require publication of a voter information pamphlet.
398 Section 6. Section 53A-17a-146 is amended to read:
399 53A-17a-146. Reduction of district allocation based on insufficient revenues.
400 (1) [(a)] As used in this section, "Minimum School Program funds" means the total of
401 state and local funds appropriated [under Section 53A-17a-104 ] for the Minimum School
402 Program, excluding:
403 [(i)] (a) the state-supported voter leeway pursuant to Section 53A-17a-133 ;
404 [(ii)] (b) the state-supported board leeway pursuant to Section 53A-17a-134 ; and
405 [(iii)] (c) the appropriation to charter schools to replace local property tax revenues
406 pursuant to Section 53A-1a-513 .
407 [(b) The State Board of Education,]
408 (2) If the Legislature reduces appropriations made to support public schools under
409 Title 53A, Chapter 17a, Minimum School Program Act, because an Education Fund budget
410 deficit, as defined in Section 63J-1-312 , exists, the State Board of Education, after
411 consultation with each school district and charter school, shall allocate the [ongoing locally
412 determined] reduction [provided in Section 53A-17a-104 for fiscal year 2008-09] among
413 school districts and charter schools in proportion to each school district's or charter school's
414 percentage share of Minimum School Program funds.
415 [(2) Each district and] (3) Except as provided in Subsection (5), a school district or
416 charter school shall determine which programs are affected by[,] a reduction pursuant to
417 Subsection (2) and the amount [of, the reductions, except as provided in Subsection (4)] each
418 program is reduced.
419 [(3) The] (4) Except as provided in Subsections (5) and (6), the requirement to spend
420 a specified amount in any particular program is waived if reductions are [required under this
421 section, except as provided in Subsection (4).] made pursuant to Subsection (2).

422 [(4)] (5) A school district or charter school may not reduce or reallocate spending of
423 funds distributed to the school district or charter school for the following programs:
424 (a) educator salary adjustments provided in Section 53A-17a-153 ;
425 (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156 ;
426 (c) the extended year for special educators provided in Section 53A-17a-158 ; [and]
427 (d) USTAR centers provided in Section 53A-17a-159 [.];
428 (e) the School LAND Trust Program created in Section 53A-16-101.5 ; or
429 (f) a special education program within the Basic School Program.
430 (6) A school district or charter school may not reallocate spending of funds distributed
431 to the school district or charter school to a reserve account.
432 Section 7. Section 63J-1-602 is amended to read:
433 63J-1-602. Nonlapsing accounts and funds.
434 (1) The following revenue collections, appropriations from a fund or account, and
435 appropriations to a program are nonlapsing:
436 (a) appropriations made to the Legislature and its committees;
437 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
438 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
439 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
440 (e) funds collected by pesticide dealer license registration fees, as provided in Section
441 4-14-3 ;
442 (f) funds collected by pesticide applicator business registration fees, as provided in
443 Section 4-14-13 ;
444 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
445 (h) funds deposited as dedicated credits under the Insect Infestation Emergency
446 Control Act, as provided in Section 4-35-6 ;
447 (i) the Percent-for-Art Program created in Section 9-6-404 ;
448 (j) the Centennial History Fund created in Section 9-8-604 ;
449 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;

450 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
451 (m) the LeRay McAllister Critical Land Conservation Program created in Section
452 11-38-301 ;
453 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
454 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided
455 in Section 19-6-120 ;
456 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
457 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
458 (q) award monies under the Crime Reduction Assistance Program, as provided under
459 Section 24-1-19 ;
460 (r) funds collected from the emergency medical services grant program, as provided in
461 Section 26-8a-207 ;
462 (s) fees and other funding available to purchase training equipment and to administer
463 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
464 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
465 federal Social Security Act, as provided in Section 26-18-3 ;
466 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
467 26-46-102 ;
468 (v) monies collected from subscription fees for publications prepared or distributed by
469 the insurance commissioner, as provided in Section 31A-2-208 ;
470 (w) monies received by the Insurance Department for administering, investigating
471 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
472 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
473 provided in Section 31A-31-109 ;
474 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
475 provided in Section 31A-38-104 ;
476 (z) certain funds in the Department of Workforce Services' program for the education,
477 training, and transitional counseling of displaced homemakers, as provided in Section

478 35A-3-114 ;
479 (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
480 (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
481 (cc) funding for a new program or agency that is designated as nonlapsing under
482 Section 36-24-101 ;
483 (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
484 (ee) funds available to the State Tax Commission for purchase and distribution of
485 license plates and decals, as provided in Section 41-1a-1201 ;
486 (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
487 provided in Section 41-1a-1221 ;
488 (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
489 Regulation Act, as provided in Section 41-3-601 ;
490 (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
491 Regulation Act, as provided in Section 41-3-604 ;
492 (ii) the Off-Highway Access and Education Restricted Account created in Section
493 41-22-19.5 ;
494 (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
495 provided in Section 41-22-36 ;
496 (kk) monies collected under the Notaries Public Reform Act, as provided under
497 46-1-23 ;
498 (ll) certain funds associated with the Law Enforcement Operations Account, as
499 provided in Section 51-9-411 ;
500 (mm) the Public Safety Honoring Heroes Restricted Account created in Section
501 53-1-118 ;
502 (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
503 Section 53-2-107 ;
504 (oo) appropriations made to the Department of Public Safety from the Department of
505 Public Safety Restricted Account, as provided in Section 53-3-106 ;

506 (pp) appropriations to the Motorcycle Rider Education Program, as provided in
507 Section 53-3-905 ;
508 (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
509 and Safety Act, as provided in Section 53-7-314 ;
510 (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
511 (ss) [the minimum school program] appropriations to the State Board of Education, as
512 provided in Section 53A-17a-105 ;
513 (tt) certain funds appropriated from the Uniform School Fund to the State Board of
514 Education for new teacher bonus and performance-based compensation plans, as provided in
515 Section 53A-17a-148 ;
516 (uu) certain funds appropriated from the Uniform School Fund to the State Board of
517 Education for implementation of proposals to improve mathematics achievement test scores,
518 as provided in Section 53A-17a-152 ;
519 (vv) the School Building Revolving Account created in Section 53A-21-401 ;
520 (ww) monies received by the State Office of Rehabilitation for the sale of certain
521 products or services, as provided in Section 53A-24-105 ;
522 (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
523 (yy) certain funds appropriated from the General Fund to the State Board of Regents
524 for teacher preparation programs, as provided in Section 53B-6-104 ;
525 (zz) a certain portion of monies collected for administrative costs under the School
526 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
527 (aaa) certain surcharges on residence and business telecommunications access lines
528 imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
529 (bbb) certain fines collected by the Division of Occupational and Professional
530 Licensing for violation of unlawful or unprofessional conduct that are used for education and
531 enforcement purposes, as provided in Section 58-17b-505 ;
532 (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
533 (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;

534 (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
535 58-44a-103 ;
536 (fff) funding for the building inspector's education program, as provided in Section
537 58-56-9 ;
538 (ggg) certain fines collected by the Division of Occupational and Professional
539 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
540 provided in Section 58-63-103 ;
541 (hhh) the Professional Geologist Education and Enforcement Fund created in Section
542 58-76-103 ;
543 (iii) certain monies in the Water Resources Conservation and Development Fund, as
544 provided in Section 59-12-103 ;
545 (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
546 check for broker and sales agent licenses, as provided in Section 61-2-9 ;
547 (kkk) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 ;
548 (lll) funds paid to the Division of Real Estate for the cost of a criminal background
549 check for a mortgage loan license, as provided in Section 61-2c-202 ;
550 (mmm) funds paid to the Division of Real Estate in relation to examination of records
551 in an investigation, as provided in Section 61-2c-401 ;
552 (nnn) certain funds donated to the Department of Human Services, as provided in
553 Section 62A-1-111 ;
554 (ooo) certain funds donated to the Division of Child and Family Services, as provided
555 in Section 62A-4a-110 ;
556 (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
557 Section 62A-13-109 ;
558 (qqq) assessments for DUI violations that are forwarded to an account created by a
559 county treasurer, as provided in Section 62A-15-503 ;
560 (rrr) appropriations to the Division of Services for People with Disabilities, as
561 provided in Section 62A-5-102 ;

562 (sss) certain donations to the Division of Substance Abuse and Mental Health, as
563 provided in Section 62A-15-103 ;
564 (ttt) certain funds received by the Division of Parks and Recreation from the sale or
565 disposal of buffalo, as provided under Section 63-11-19.2 ;
566 (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
567 Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
568 (vvv) revenue for golf user fees at the Green River State Park, as provided under
569 Section 63-11-19.6 ;
570 (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
571 Section 63-11a-503 ;
572 (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
573 (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;
574 (zzz) the Risk Management Fund created under Section 63A-4-201 ;
575 (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
576 (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
577 (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
578 provided in Section 63C-6-104 ;
579 (dddd) funding for the Medical Education Program administered by the Medical
580 Education Council, as provided in Section 63C-8-102 ;
581 (eeee) certain monies payable for commission expenses of the Pete Suazo Utah
582 Athletic Commission, as provided under Section 63C-11-301 ;
583 (ffff) funds collected for publishing the Division of Administrative Rules'
584 publications, as provided in Section 63G-3-402 ;
585 (gggg) the appropriation to fund the Governor's Office of Economic Development's
586 Enterprise Zone Act, as provided in Section 63M-1-416 ;
587 (hhhh) the Tourism Marketing Performance Account, as provided in Section
588 63M-1-1406 ;
589 (iiii) certain funding for rural development provided to the Office of Rural

590 Development in the Governor's Office of Economic Development, as provided in Section
591 63M-1-1604 ;
592 (jjjj) certain monies in the Development for Disadvantaged Rural Communities
593 Restricted Account, as provided in Section 63M-1-2003 ;
594 (kkkk) appropriations to the Utah Science Technology and Research Governing
595 Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
596 (llll) certain monies in the Rural Broadband Service Fund, as provided in Section
597 63M-1-2303 ;
598 (mmmm) funds collected from monthly offender supervision fees, as provided in
599 Section 64-13-21.2 ;
600 (nnnn) funds collected by the housing of state probationary inmates or state parole
601 inmates, as provided in Subsection 64-13e-104 (2);
602 (oooo) the Sovereign Lands Management account created in Section 65A-5-1 ;
603 (pppp) certain forestry and fire control funds utilized by the Division of Forestry, Fire,
604 and State Lands, as provided in Section 65A-8-103 ;
605 (qqqq) the Department of Human Resource Management user training program, as
606 provided in Section 67-19-6 ;
607 (rrrr) funds for the University of Utah Poison Control Center program, as provided in
608 Section 69-2-5.5 ;
609 (ssss) appropriations to the Transportation Corridor Preservation Revolving Loan
610 Fund, as provided in Section 72-2-117 ;
611 (tttt) appropriations to the Local Transportation Corridor Preservation Fund, as
612 provided in Section 72-2-117.5 ;
613 (uuuu) appropriations to the Tollway Restricted Special Revenue Fund, as provided in
614 Section 77-2-120 ;
615 (vvvv) appropriations to the Aeronautics Construction Revolving Loan Fund, as
616 provided in Section 77-2-122 ;
617 (wwww) appropriations to the State Park Access Highways Improvement Program, as

618 provided in Section 72-3-207 ;
619 (xxxx) the Traffic Noise Abatement Program created in Section 72-6-112 ;
620 (yyyy) certain funds received by the Office of the State Engineer for well drilling fines
621 or bonds, as provided in Section 73-3-25 ;
622 (zzzz) certain monies appropriated to increase the carrying capacity of the Jordan
623 River that are transferred to the Division of Parks and Recreation, as provided in Section
624 73-10e-1 ;
625 (aaaaa) certain fees for the cost of electronic payments under the State Boating Act, as
626 provided in Section 73-18-25 ;
627 (bbbbb) certain monies appropriated from the Water Resources Conservation and
628 Development Fund, as provided in Section 73-23-2 ;
629 (ccccc) the Lake Powell Pipeline Project Operation and Maintenance Fund created in
630 Section 73-28-404 ;
631 (ddddd) certain funds in the Water Development and Flood Mitigation Reserve
632 Account, as provided in Section 73-103-1 ;
633 (eeeee) certain funds appropriated for compensation for special prosecutors, as
634 provided in Section 77-10a-19 ;
635 (fffff) the Indigent Aggravated Murder Defense Trust Fund created in Section
636 77-32-601 ;
637 (ggggg) the Indigent Felony Defense Trust Fund created in Section 77-32-701 ;
638 (hhhhh) funds donated or paid to a juvenile court by private sources, as provided in
639 Subsection 78A-6-203 (1)(c);
640 (iiiii) a state rehabilitative employment program, as provided in Section 78A-6-210 ;
641 and
642 (jjjjj) fees from the issuance and renewal of licenses for certified court interpreters, as
643 provided in Section 78B-1-146 .
644 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
645 program may be treated as nonlapsing unless:

646 (a) it is expressly referenced by this section;
647 (b) it is designated in a condition of appropriation in the appropriations bill; or
648 (c) nonlapsing authority is granted under Section 63J-1-603 .
649 (3) Each legislative appropriations subcommittee shall review the accounts and funds
650 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
651 Section 8. One-time appropriation for classroom supplies.
652 (1) (a) The State Board of Education shall distribute money appropriated for
653 classroom supplies and materials to classroom teachers in school districts, the Utah Schools
654 for the Deaf and the Blind, and charter schools on the basis of the number of classroom
655 teachers in each school as compared to the total number of classroom teachers.
656 (b) Teachers shall receive up to the following amounts:
657 (i) a teacher on salary schedule steps one through three teaching in grades
658 kindergarten through six or preschool handicapped - $250;
659 (ii) a teacher on salary schedule steps one through three teaching in grades seven
660 through twelve - $200;
661 (iii) a teacher on salary schedule step four or higher teaching in grades kindergarten
662 through six or preschool handicapped - $175; and
663 (iv) a teacher on salary schedule step four or higher teaching in grades seven through
664 twelve - $150.
665 (c) If the appropriation is not sufficient to provide to each teacher the full amount
666 allowed under Subsection (1)(b), teachers on salary schedule steps one through three shall
667 receive the full amount allowed with the remaining monies apportioned to all other teachers.
668 (2) Teachers shall spend money appropriated for classroom supplies and materials for
669 school supplies, materials, or field trips under rules adopted by the State Board of Education.
670 (3) As used in this section, "classroom teacher" or "teacher" means permanent teacher
671 positions filled by one teacher or two or more job-sharing teachers:
672 (a) who are licensed personnel;
673 (b) who are paid on the teacher's salary schedule;

674 (c) who are hired for an entire contract period; and
675 (d) whose primary function is to provide instructional or a combination of
676 instructional and counseling services to students in public schools.
677 Section 9. Appropriations for state education agencies and programs that
678 support school districts and charter schools -- Value of weighted pupil unit.
679 (1) Under the terms and conditions of Utah Code Title 63J, as applicable, the following
680 sums of money are appropriated from resources not otherwise appropriated, or reduced from
681 amounts previously appropriated, out of the funds or fund accounts indicated for distribution
682 to state education agencies, school districts, and charter schools for the fiscal year beginning
683 July 1, 2010 and ending June 30, 2011. These appropriations are additions to amounts
684 previously appropriated for fiscal year 2010-11.
685 (2) The value of the weighted pupil unit (WPU) for fiscal year 2010-11 is increased by
686 $90 over the value of the WPU for fiscal year 2010-11 established in H.B. 1, Minimum School
687 Program Base Budget, for a total WPU value of $2,577.
688 State Board of Education
689 Item 1 To State Board of Education - State Office of Education
690 From Uniform School Fund

($20,706,500)

691 From Education Fund

$21,102,000

692 From Federal Funds

$400

693 From Dedicated Credits Revenue

$200

694 Schedule of Programs:
695 Board of Education - Operations

$18,500

696 Student Achievement $332,500
697 Data and Business Services

$23,000

698 Law, Legislation and Educational Services

$22,100

699 The Legislature intends that the State Board of Education develop a plan to create a
700 website where best practices and studies of school districts and charter schools may be posted
701 for the purpose of facilitating and encouraging innovation, cost-savings, and productivity.

702 The State Board of Education is requested to make a report on the plan to the Education
703 Interim Committee no later than the committee's October interim committee meeting.
704 Item 2 To State Board of Education - Utah State Office of Education - Initiative Programs
705 From General Fund

$946,200

706 From Uniform School Fund

($3,182,100)

707 From Education Fund

$7,119,400

708 Schedule of Programs:
709 Contracts and Grants

$4,883,500

710 Item 3 To State Board of Education - State Charter School Board
711 From Uniform School Fund

($575,800)

712 From Education Fund

$575,800

713 Item 4 To State Board of Education - Educator Licensing Professional Practices
714 From Uniform School Fund Restricted - Professional Practices

$200

715 Schedule of Programs:
716 Educator Licensing

$200

717 Item 5 To State Board of Education - State Office of Education - Child Nutrition
718 From Uniform School Fund

($136,700)

719 From Education Fund

$139,500

720 From Federal Funds

$400

721 From Dedicated Credits Revenue

$100

722 Schedule of Programs:
723 Child Nutrition

$3,300

724 Item 6 To State Board of Education - Fine Arts Outreach
725 From Uniform School Fund

($2,731,000)

726 From Education Fund

$2,786,800

727 Schedule of Programs:
728 Professional Outreach Programs

$54,800

729 Subsidy Program

$1,000

730 Item 7 To State Board of Education - State Office of Education - Educational Contracts
731 From Uniform School Fund

($3,114,700)

732 From Education Fund

$3,137,800

733 Schedule of Programs:
734 Youth Center

$23,100

735 Item 8 To State Board of Education - Science Outreach
736 From Uniform School Fund

($1,661,600)

737 From Education Fund

$1,695,500

738 Schedule of Programs:
739 Informal Science Education Enhancement

$25,600

740 Science Enhancement

$8,300

741 Item 9 To State Board of Education - Utah Schools for the Deaf and the Blind
742 From Uniform School Fund

($22,311,000)

743 From Education Fund

$22,753,700

744 From Federal Funds

($300)

745 From Dedicated Credits Revenue

$500,000

746 From Closing Nonlapsing Appropriation Balances

($186,000)

747 Schedule of Programs:
748 Instructional Services

$297,000

749 Support Services

$145,400

750 Institutional Council

$314,000

751 Item 10 To State Board of Education - Utah Schools for the Deaf and Blind - Institutional
752 Council
753 From Dedicated Credits Revenue

($500,000)

754 From Closing Nonlapsing Appropriation Balances

$186,000

755 Schedule of Programs:
756 Institutional Council

($314,000)

757 Basic School Program

758 Item 11 To Basic School Program
759 From Uniform School Fund

($1,560,112,936)

760 From Education Fund

$1,627,171,936

761 Schedule of Programs:
762 Kindergarten

$2,385,270

763 Grades 1 - 12

$45,939,690

764 Necessarily Existent Small Schools

$688,410

765 Professional Staff

$4,202,820

766 Administrative Costs

$139,500

767 Special Education - Add-on

$5,751,270

768 Special Education - Pre-school

$805,950

769 Special Education - Self-contained

$1,272,330

770 Special Education - Extended Year

$35,370

771 Special Education - State Programs

$159,840

772 Career & Technical Ed District Add-on

$2,453,310

773 Class Size Reduction

$3,225,240

774 The Legislature intends that the State Board of Education allocate $23,484 from the
775 appropriation to the Career & Technical Education District Add-on program to support
776 summer Career & Technical Education agriculture programs. This allocation is in addition to
777 the allocation provided for summer Career & Technical Education agriculture programs for
778 fiscal year 2010-11 in H.B. 1, Minimum School Program Base Budget.
779 Related to Basic Programs
780 Item 12 To Related to Basic Programs
781 From Uniform School Fund

($374,194,403)

782 From Education Fund

$590,968,302

783 From Education Fund, One-time

$12,708,000

784 Schedule of Programs:
785 Social Security and Retirement

($13,139,631)

786 To and From School - Pupil Transportation

$1,312,900

787 Guarantee Transportation Levy

$10,000

788 Flexible Allocation - WPU Distribution

$217,566,730

789 Intervention for Student Success Block Grant

$300,000

790 Adult Education

$185,300

791 Electronic High School

($1,960,000)

792 Charter School Local Replacement

$14,564,900

793 Charter School Administration

$617,600

794 Public Education Job Enhancement

($1,793,300)

795 Educator Salary Adjustments

$5,081,200

796 Library Books & Electronic Resources

($90,000)

797 Critical Languages & Dual Immersion

$750,000

798 USTAR Centers (Year-Round Math & Science)

$124,200

799 Performance Based Compensation

$294,000

800 Teacher Supplies and Materials

$5,000,000

801 Beverley Taylor Sorenson Elementary Arts

$658,000

802 The Legislature intends that monies for the Flexible Allocation - WPU Distribution
803 program be distributed to school districts and charter schools on the basis of the number of
804 weighted pupil units in a school district or charter school compared to the total number of
805 weighted pupil units and that the State Board of Education provide for the reporting of school
806 districts' and charter schools' expenditures of the program monies.
807 The Legislature intends that the State Board of Education allocate $51,700 from the
808 appropriation for To and From School - Pupil Transportation to support transportation costs at
809 the Utah Schools for the Deaf and the Blind. This allocation is in addition to the allocation
810 provided to support transportation costs at the Utah Schools for the Deaf and the Blind for
811 fiscal year 2010-11 in H.B. 1, Minimum School Program Base Budget.
812 The Legislature intends that enrollment in charter schools in the 2011-12 school year
813 may increase up to 6,000 students over the projected enrollment of 42,211 students in the

814 2010-11 school year.
815 Voted and Board Leeway Programs
816 Item 13 To Voted and Board Leeway Programs
817 From Uniform School Fund

($37,240,184)

818 From Education Fund

$57,928,148

819 Schedule of Programs:
820 Voted Leeway

$15,891,364

821 Board Leeway

$4,796,600

822 School Building Programs
823 Item 14 To School Building Programs
824 From Uniform School Fund

($22,049,700)

825 From Education Fund

$14,499,700

826 Schedule of Programs:
827 Capital Outlay Foundation Program

($6,566,500)

828 Capital Outlay Enrollment Growth Program

($983,500)

829 Section 10. Effective date.
830 This bill takes effect on July 1, 2010.