Second Substitute H.B. 109

This document includes House Floor Amendments incorporated into the bill on Thu, Mar 6, 2014 at 5:09 PM by jeyring. -->

Representative David E. Lifferth proposes the following substitute bill:

1 PUBLIC EDUCATION CAPITAL FUNDING EQUALIZATION
2 2014 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Ken Ivory
5 Senate Sponsor: Aaron Osmond
6
7 LONG TITLE
8 General Description:
9 This bill provides funding for public education capital outlay programs.
10 Highlighted Provisions:
11 This bill:
12 . creates a restricted account known as the Capital Outlay Account;
13 . requires a portion of an Education Fund revenue surplus to be deposited in the
14 Capital Outlay Account; H. and
15 [ . requires a portion of unexpended balances in certain programs of the Minimum
16 School Program at the end of a fiscal year to be deposited in the Capital Outlay
17 Account; and ] .H
18 . requires the State Board of Education to allocate money appropriated from the
19 Capital Outlay Account to school districts eligible to receive funds through the
20 Capital Outlay Enrollment Growth Program or Capital Outlay Foundation Program.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill takes effect on July 1, 2014.
25 Utah Code Sections Affected:

26 AMENDS:
27 H. [ 53A-17a-105 , as last amended by Laws of Utah 2013, Chapter 310 ] .H
28 ENACTS:
29 53A-21-601 , Utah Code Annotated 1953
30 53A-21-602 , Utah Code Annotated 1953
31
32 Be it enacted by the Legislature of the state of Utah:
33 H. [ Section 1. Section 53A-17a-105 is amended to read:
34 53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
35 School Program allocations.
36 (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
37 in a program is underestimated, the State Board of Education shall reduce the value of the
38 weighted pupil unit in that program so that the total amount paid for the program does not
39 exceed the amount appropriated for the program.
40 (2) If the number of weighted pupil units in a program is overestimated, the State
41 Board of Education shall spend excess money appropriated for the following purposes giving
42 priority to the purpose described in Subsection (2)(a):
43 (a) to support the value of the weighted pupil unit in a program within the basic
44 state-supported school program in which the number of weighted pupil units is underestimated;
45 (b) to support the state guarantee per weighted pupil unit provided under the voted
46 local levy program established in Section 53A-17a-133 or the board local levy program
47 established in Section 53A-17a-164 , if:
48 (i) local contributions to the voted local levy program or board local levy program are
49 overestimated; or
50 (ii) the number of weighted pupil units within school districts qualifying for a
51 guarantee is underestimated;
52 (c) to support the state supplement to local property taxes allocated to charter schools,
53 if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4); or
54 (d) to support a school district with a loss in student enrollment as provided in Section
55 53A-17a-139 .
56 (3) If local contributions from the minimum basic tax rate imposed under Section

57 53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
58 weighted pupil unit for all programs within the basic state-supported school program so the
59 total state contribution to the basic state-supported school program does not exceed the amount
60 of state funds appropriated.
61 (4) If local contributions from the minimum basic tax rate imposed under Section
62 53A-17a-135 are underestimated, the State Board of Education shall:
63 (a) spend the excess local contributions for the purposes specified in Subsection (2),
64 giving priority to supporting the value of the weighted pupil unit in programs within the basic
65 state-supported school program in which the number of weighted pupil units is underestimated;
66 and
67 (b) reduce the state contribution to the basic state-supported school program so the
68 total cost of the basic state-supported school program does not exceed the total state and local
69 funds appropriated to the basic state-supported school program plus the local contributions
70 necessary to support the value of the weighted pupil unit in programs within the basic
71 state-supported school program in which the number of weighted pupil units is underestimated.
72 (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
73 reduce the guarantee per weighted pupil unit provided under the voted local levy program
74 established in Section 53A-17a-133 or board local levy program established in Section
75 53A-17a-164 , if:
76 (a) local contributions to the voted local levy program or board local levy program are
77 overestimated; or
78 (b) the number of weighted pupil units within school districts qualifying for a
79 guarantee is underestimated.
80 (6) [Money] Except as provided in Subsection 53A-21-602 (4), money appropriated to
81 the State Board of Education is nonlapsing.
82 (7) The State Board of Education shall report actions taken by the board under this
83 section to the Office of the Legislative Fiscal Analyst and the Governor's Office of
84 Management and Budget. ] .H
85 Section H. [ 2 ] 1 .H . Section 53A-21-601 is enacted to read:
86 53A-21-601. Capital Outlay Account -- Definitions.
87 As used in this part:

88 (1) "Account" means the Capital Outlay Account created in Section 53A-21-602 .
89 (2) "Education Fund revenue surplus" has the meaning defined in Section 63J-1-313 .
90 (3) "Education Fund revenue surplus balance" means the balance of an Education Fund
91 revenue surplus remaining after the Division of Finance:
92 (a) transfers Education Fund revenue surplus money to the Education Budget Reserve
93 Account as required by Section 63J-1-313 ; and
94 (b) transfers any year-end contingency appropriations, year-end set-asides, or other
95 year-end transfers required by law from the Education Fund revenue surplus.
96 (4) "Operating deficit" has the meaning defined in Section 63J-1-313 .
97 Section H. [ 3 ] 2 .H . Section 53A-21-602 is enacted to read:
98 53A-21-602. Capital Outlay Account.
99 (1) There is created within the Education Fund a restricted account known as the
100 Capital Outlay Account.
101 (2) The Capital Outlay Account consists of:
102 (a) an Education Fund revenue surplus transferred to the account pursuant to
103 Subsection (3); H. and
104 [ (b) unexpended balances in the following programs within the Minimum School
105 Program at the end of a fiscal year that are transferred to the account pursuant to Subsection
106 (4):
107 (i) the Basic Program; and
108 (ii) the Related to Basic Programs; and
109 (c) ] (b) .H interest on account funds.
110 (3) The Division of Finance shall transfer the Education Fund revenue surplus balance,
111 up to a maximum of H. [ $75,000,000 ] [ $15,000,000 ] $25,000,000 .H annually, to the Capital
111a Outlay Account.
112 H. [ (4) The Division of Finance shall transfer to the Capital Outlay Account 33% of the
113 unexpended balance in each of the following programs within the Minimum School Program at
114 the end of a fiscal year:
115 (a) the Basic Program; and
116 (b) the Related to Basic Programs.
117 (5) ] (4) .H Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
118 Finance determines that an operating deficit exists, the Division of Finance may reduce the

119 transfer to the Capital Outlay Account by the amount necessary to eliminate the operating
120 deficit.
121 H. [ (6) ] (5) .H Upon the appropriation of money from the Capital Outlay Account
121a to the State
122 Board of Education, the State Board of Education shall:
123 (a) (i) allocate H. [ 75% ] 50% .H of the money to the Capital Outlay Enrollment
123a Growth Program;
124 and
125 (ii) distribute the money to school districts in accordance with Section 53A-21-302 ;
126 and
127 (b) (i) allocate H. [ 25% ] 50% .H of the money to the Capital Outlay Foundation
127a Program; and
128 (ii) distribute the money to school districts in accordance with Section 53A-21-202 .
129 Section H. [ 4 ] 3 .H . Effective date.
130 This bill takes effect on July 1, 2014.