First Substitute H.B. 109

Representative Ken Ivory 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: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies and provides funding for the Capital Outlay Enrollment Growth
10 Program.
11 Highlighted Provisions:
12 This bill:
13 . modifies eligibility requirements for a school district to receive funds through the
14 Capital Outlay Enrollment Growth Program;
15 . creates a restricted account known as the Enrollment Growth Account;
16 . requires a portion of an Education Fund revenue surplus to be deposited in the
17 Enrollment Growth Account;
18 . requires a portion of unexpended balances in certain programs of the Minimum
19 School Program at the end of the fiscal year to be deposited in the Enrollment
20 Growth Account; and
21 . requires the State Board of Education to allocate money appropriated from the
22 Enrollment Growth Account to school districts eligible to receive funds through the
23 Capital Outlay Enrollment Growth Program.
24 Money Appropriated in this Bill:
25 This bill appropriates in fiscal year 2015:

26 . to School Building Programs as a one-time appropriation:
27 . from the Education Fund, one-time, $61,000,000.
28 Other Special Clauses:
29 This bill takes effect on July 1, 2014.
30 Utah Code Sections Affected:
31 AMENDS:
32 53A-17a-105 , as last amended by Laws of Utah 2013, Chapter 310
33 53A-21-301 , as last amended by Laws of Utah 2010, Chapter 185
34 ENACTS:
35 53A-21-303 , Utah Code Annotated 1953
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 53A-17a-105 is amended to read:
39 53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
40 School Program allocations.
41 (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
42 in a program is underestimated, the State Board of Education shall reduce the value of the
43 weighted pupil unit in that program so that the total amount paid for the program does not
44 exceed the amount appropriated for the program.
45 (2) If the number of weighted pupil units in a program is overestimated, the State
46 Board of Education shall spend excess money appropriated for the following purposes giving
47 priority to the purpose described in Subsection (2)(a):
48 (a) to support the value of the weighted pupil unit in a program within the basic
49 state-supported school program in which the number of weighted pupil units is underestimated;
50 (b) to support the state guarantee per weighted pupil unit provided under the voted
51 local levy program established in Section 53A-17a-133 or the board local levy program
52 established in Section 53A-17a-164 , if:
53 (i) local contributions to the voted local levy program or board local levy program are
54 overestimated; or
55 (ii) the number of weighted pupil units within school districts qualifying for a
56 guarantee is underestimated;

57 (c) to support the state supplement to local property taxes allocated to charter schools,
58 if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4); or
59 (d) to support a school district with a loss in student enrollment as provided in Section
60 53A-17a-139 .
61 (3) If local contributions from the minimum basic tax rate imposed under Section
62 53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
63 weighted pupil unit for all programs within the basic state-supported school program so the
64 total state contribution to the basic state-supported school program does not exceed the amount
65 of state funds appropriated.
66 (4) If local contributions from the minimum basic tax rate imposed under Section
67 53A-17a-135 are underestimated, the State Board of Education shall:
68 (a) spend the excess local contributions for the purposes specified in Subsection (2),
69 giving priority to supporting the value of the weighted pupil unit in programs within the basic
70 state-supported school program in which the number of weighted pupil units is underestimated;
71 and
72 (b) reduce the state contribution to the basic state-supported school program so the
73 total cost of the basic state-supported school program does not exceed the total state and local
74 funds appropriated to the basic state-supported school program plus the local contributions
75 necessary to support the value of the weighted pupil unit in programs within the basic
76 state-supported school program in which the number of weighted pupil units is underestimated.
77 (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
78 reduce the guarantee per weighted pupil unit provided under the voted local levy program
79 established in Section 53A-17a-133 or board local levy program established in Section
80 53A-17a-164 , if:
81 (a) local contributions to the voted local levy program or board local levy program are
82 overestimated; or
83 (b) the number of weighted pupil units within school districts qualifying for a
84 guarantee is underestimated.
85 (6) [Money] Except as provided in Section 53A-21-303 , money appropriated to the
86 State Board of Education is nonlapsing.
87 (7) The State Board of Education shall report actions taken by the board under this

88 section to the Office of the Legislative Fiscal Analyst and the Governor's Office of
89 Management and Budget.
90 Section 2. Section 53A-21-301 is amended to read:
91 53A-21-301. Capital Outlay Enrollment Growth Program -- Definitions.
92 (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
93 outlay funding to school districts experiencing net enrollment increases.
94 (2) As used in this part:
95 (a) "Account" means the Enrollment Growth Account created in Section 53A-21-303 .
96 [(a)] (b) "Average annual net enrollment increase" means the quotient of:
97 (i) (A) enrollment in the prior fiscal year, based on October 1 enrollment counts; minus
98 (B) enrollment in the year four years prior, based on October 1 enrollment counts;
99 divided by
100 (ii) three.
101 (c) "Education Fund revenue surplus" has the meaning defined in Section 63J-1-313 .
102 (d) "Education Fund revenue surplus balance" means the balance of an Education Fund
103 revenue surplus remaining after the Division of Finance:
104 (i) transfers Education Fund revenue surplus money to the Education Budget Reserve
105 Account as required by Section 63J-1-313 ; and
106 (ii) transfers from the Education Fund revenue surplus any year-end contingency
107 appropriations, year-end set-asides, or other year-end transfers required by law.
108 [(b)] (e) "Eligible district" or "eligible school district" means a school district that:
109 (i) has an average annual net enrollment increase; and
110 (ii) has a property tax base per ADM in the year two years prior that is less than [two
111 times] the statewide average property tax base per ADM in the year two years prior.
112 (f) "Operating deficit" has the meaning defined in Section 63J-1-313 .
113 Section 3. Section 53A-21-303 is enacted to read:
114 53A-21-303. Enrollment Growth Account.
115 (1) There is created within the Education Fund a restricted account known as the
116 Enrollment Growth Account.
117 (2) The Enrollment Growth Account consists of:
118 (a) an Education Fund revenue surplus transferred to the account pursuant to

119 Subsection (3);
120 (b) unexpended balances in the following programs within the Minimum School
121 Program at the end of a fiscal year that are transferred to the account pursuant to Subsection
122 (4):
123 (i) the Basic Program; and
124 (ii) the Related to Basic Programs; and
125 (c) interest on account funds.
126 (3) The Division of Finance shall transfer the Education Fund revenue surplus balance,
127 up to a maximum $75,000,000, to the Enrollment Growth Account.
128 (4) The Division of Finance shall transfer to the Enrollment Growth Account 33% of
129 the unexpended balance in each of the following programs within the Minimum School
130 Program at the end of a fiscal year:
131 (a) the Basic Program; and
132 (b) the Related to Basic Programs.
133 (5) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
134 Finance determines that an operating deficit exists, the Division of Finance may reduce the
135 transfer to the Enrollment Growth Account by the amount necessary to eliminate the operating
136 deficit.
137 (6) Upon the appropriation of money from the Enrollment Growth Account to the State
138 Board of Education, the State Board of Education shall allocate the money to an eligible school
139 district as provided by Section 53A-21-302 .
140 Section 4. Appropriation.
141 Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
142 the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following sums of money
143 are appropriated from resources not otherwise appropriated, or reduced from amounts
144 previously appropriated, out of the funds or accounts indicated. These sums of money are in
145 addition to any amounts previously appropriated for fiscal year 2015.
146 To School Building Programs
147 From Education Fund, one-time

$61,000,000

148 Schedule of Programs:
149 Capital Outlay Enrollment Growth Program $61,000,000

150 Section 5. Effective date.
151 This bill takes effect on July 1, 2014.