H.B. 158

1

STUDENT-BASED BUDGETING
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: David G. Butterfield
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill requires a school district to distribute certain revenues to schools in
10 accordance with a weighted student formula and requires a principal to determine how
11 to use revenues available to the school to meet students' needs.
12 Highlighted Provisions:
13 This bill:
14 . provides for reporting of noncompliance, and enforcement of compliance, of certain
15 State Board of Education rules;
16 . requires a school district to distribute, by July 1, 2014, no less than 85% of
17 Minimum School Program revenues to schools;
18 . requires a school district to allocate Minimum School Program revenues distributed
19 to a school in accordance with a weighted student formula, with exceptions;
20 . directs a school principal to:
21 . prepare a school budget;
22 . consult with an advisory committee in preparing a school budget; and
23 . submit the school budget to the local school board for approval;
24 . requires a school budget to be aligned with and support the school instructional,
25 academic, and student achievement goals;
26 . requires a school principal to determine how to use revenue available to the school
27 to meet the needs of the school's students; and

28 . requires a school district to publish on the school district's website information on
29 revenue available to a school and the school budget.
30 Money Appropriated in this Bill:
31 None
32 Other Special Clauses:
33 None
34 Utah Code Sections Affected:
35 AMENDS:
36 53A-1a-108.5, as enacted by Laws of Utah 2002, Chapter 324
37 ENACTS:
38 53A-1-410, Utah Code Annotated 1953
39 53A-2-501, Utah Code Annotated 1953
40 53A-2-502, Utah Code Annotated 1953
41 53A-2-503, Utah Code Annotated 1953
42 53A-2-504, Utah Code Annotated 1953
43 53A-2-505, Utah Code Annotated 1953
44 53A-2-506, Utah Code Annotated 1953
45 53A-2-507, Utah Code Annotated 1953
46
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 53A-1-410 is enacted to read:
49 53A-1-410. Report of noncompliance to the State Board of Education.
50 (1) The state superintendent shall report to the State Board of Education any report
51 made to a member of the staff of the State Board of Education regarding noncompliance of
52 Chapter 2, Part 5, Student-based Budgeting Act.
53 (2) In accordance with the powers granted to the State Board of Education under
54 Section 53A-1-401 , the State Board of Education may take action to enforce compliance with
55 State Board of Education rules related to Chapter 2, Part 5, Student-based Budgeting Act.
56 Section 2. Section 53A-1a-108.5 is amended to read:
57 53A-1a-108.5. School improvement plan.
58 (1) (a) Each school community council shall annually evaluate the school's U-PASS

59 test results and use the evaluations in developing a school improvement plan.
60 (b) In evaluating U-PASS test results and developing a school improvement plan, a
61 school community council may not have access to data that reveal the identity of students.
62 (2) Each school improvement plan shall:
63 (a) identify the school's most critical academic needs;
64 (b) recommend a course of action to meet the identified needs;
65 (c) list any programs, practices, materials, or equipment that the school will need to
66 implement its action plan to have a direct impact on the instruction of students and result in
67 measurable increased student performance; and
68 (d) describe how the school intends to enhance or improve academic achievement,
69 including how [financial resources available to the school, such as School LAND Trust
70 Program money received under Section 53A-16-101.5 and state and federal grants,] the school
71 budget will be used to enhance or improve academic achievement.
72 (3) The school improvement plan shall focus on the school's most critical academic
73 needs but may include other actions to enhance or improve academic achievement and
74 community environment for students.
75 (4) The school principal shall make available to the school community council the
76 school budget and other data needed to develop the school improvement plan.
77 (5) The school improvement plan shall be subject to the approval of the local school
78 board of the school district in which the school is located.
79 (6) A school community council may develop a multiyear school improvement plan,
80 but the plan must be presented to and approved annually by the local school board.
81 (7) Each school shall:
82 (a) implement the school improvement plan as developed by the school community
83 council and approved by the local school board;
84 (b) provide ongoing support for the council's plan; and
85 (c) meet local school board reporting requirements regarding performance and
86 accountability.
87 Section 3. Section 53A-2-501 is enacted to read:
88 Part 5. Student-based Budgeting Act
89 53A-2-501. Title.

90 This part is known as the "Student-based Budgeting Act."
91 Section 4. Section 53A-2-502 is enacted to read:
92 53A-2-502. Definitions.
93 As used in this part:
94 (1) "Minimum School Program revenues" means the following revenues received by a
95 school district:
96 (a) state revenues distributed to a school district for a program funded by a line item
97 appropriation designated as follows:
98 (i) Basic School Program;
99 (ii) Related to Basic Programs; or
100 (iii) Voted and Board Leeway Programs;
101 (b) revenue from a basic levy imposed by the school district under Section
102 53A-17a-135 , except proceeds which exceed the cost of a school district's basic program and
103 are deposited into the Uniform School Fund pursuant to Section 53A-17a-135 ;
104 (c) revenue from a voted local levy imposed by the school district under Section
105 53A-17a-133 ; and
106 (d) revenue from a board local levy imposed by the school district under Section
107 53A-17a-164 .
108 (2) "Weighted student formula" means a formula for distributing money to schools in
109 which a base allocation is set for each student and weights are added to the base allocation
110 depending on student need or other factors.
111 Section 5. Section 53A-2-503 is enacted to read:
112 53A-2-503. Purposes of student-based budgeting.
113 The purposes of student-based budgeting are to:
114 (1) create a system of excellent schools in Utah led by great principals who have the
115 authority, resources, and responsibility to teach all students well;
116 (2) engage those closest to the students in making key decisions that impact the
117 students;
118 (3) empower schools and hold them accountable for results;
119 (4) provide for fair and transparent funding that schools can rely on annually;
120 (5) allow dollars to follow each student;

121 (6) put the resources in the schools;
122 (7) provide students with similar characteristics a similar level of resources; and
123 (8) develop an equitable, simple, and transparent approach to help schools achieve
124 results for students.
125 Section 6. Section 53A-2-504 is enacted to read:
126 53A-2-504. Distribution of revenue to schools in accordance with a weighted
127 student formula.
128 (1) Beginning on July 1, 2014, a school district shall distribute no less than 85% of
129 Minimum School Program revenues to schools.
130 (2) (a) Except as provided in Subsections (3) and (4), Minimum School Program
131 revenues distributed to schools shall be allocated in accordance with a weighted student
132 formula established by the local school board.
133 (b) A weighted student formula shall allocate revenue distributed to schools under
134 Subsection (1) in a fair and equitable manner that takes into account student needs.
135 (3) Revenue a school district receives for a program funded through a Related to Basic
136 Programs line item appropriation that is restricted for a certain purpose may be allocated to
137 schools in a manner other than a weighted student formula.
138 (4) To mitigate a decrease in resources available to a school, a school district may
139 phase in the implementation of a weighted student formula over a three-year period.
140 Section 7. Section 53A-2-505 is enacted to read:
141 53A-2-505. School budget -- Principal to determine use of school revenue.
142 (1) The principal of each school shall:
143 (a) prepare a budget for the expenditure of revenue distributed to the school under
144 Section 53A-2-504 ;
145 (b) consult with an advisory committee appointed under Subsection (2) in preparing the
146 budget; and
147 (c) submit the budget to the local school board for approval.
148 (2) (a) The principal shall appoint an advisory committee to:
149 (i) review the instructional, academic, and student achievement goals of the school;
150 and
151 (ii) recommend how a school budget may be created to achieve the goals described in

152 Subsection (2)(a)(i).
153 (b) The advisory committee:
154 (i) shall include a parent or guardian member of the school community council who
155 serves as chair of the school community council; and
156 (ii) may include the following personnel employed at the school:
157 (A) administrators;
158 (B) teachers; and
159 (C) instructional support personnel.
160 (3) A school budget prepared and approved under Subsection (1) shall be aligned with
161 and support:
162 (a) the goals described in Subsection (2); and
163 (b) the school improvement plan developed under Section 53A-1a-108.5 .
164 (4) (a) If a local school board disapproves a school budget submitted under Subsection
165 (1), the local school board shall provide a written explanation of why the budget was
166 disapproved and request the principal to revise the budget.
167 (b) The principal shall submit a revised school budget to the local school board for
168 approval.
169 (5) In preparing a school budget, a principal shall determine:
170 (a) how to use revenue available to the school to meet the needs of the school's
171 students;
172 (b) the number and type of both licensed and classified staff positions;
173 (c) the teaching assignments or other work assignments of licensed and classified
174 personnel at the school;
175 (d) how to provide for instructional support services, such as curriculum development
176 or professional development;
177 (e) how to provide for building and grounds maintenance;
178 (f) what instructional materials to acquire, subject to the requirements of Sections
179 53A-13-101 and 53A-14-107 ; and
180 (g) what other resources are necessary for the education of the school's students.
181 Section 8. Section 53A-2-506 is enacted to read:
182 53A-2-506. School budget -- Employee salaries and benefits.

183 A school shall be charged for, and a school budget shall include revenue and
184 expenditures for, the actual cost of the salaries and benefits of personnel employed at the
185 school.
186 Section 9. Section 53A-2-507 is enacted to read:
187 53A-2-507. Revenue and budget information published on school district website.
188 A school district shall publish on the school district's website:
189 (1) the amount of revenue distributed to each school in accordance with Section
190 53A-2-504 ;
191 (2) how the total revenues distributed to a school are calculated using a weighted pupil
192 formula and other allocation formulas;
193 (3) how a weighted pupil formula is phased in over a three-year period pursuant to
194 Section 53A-2-504 ; and
195 (4) each school budget.




Legislative Review Note
as of 2-15-12 9:53 AM

Office of Legislative Research and General Counsel