H.B. 109

             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 unallocated balances in certain programs of the Minimum School Program
             19      at the end of the fiscal year to be deposited in the Enrollment Growth Account; and
             20          .    requires the State Board of Education to allocate money appropriated from the
             21      Enrollment Growth Account to school districts eligible to receive funds through the
             22      Capital Outlay Enrollment Growth Program.    
             23      Money Appropriated in this Bill:
             24          This bill appropriates in fiscal year 2015:
             25          .    to School Building Programs as a one-time appropriation:
             26              .    from the Education Fund, one-time, $122,000,000.
             27      Other Special Clauses:


             28          This bill takes effect on July 1, 2014.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31           53A-21-301 , as last amended by Laws of Utah 2010, Chapter 185
             32      ENACTS:
             33           53A-21-303 , Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 53A-21-301 is amended to read:
             37           53A-21-301. Capital Outlay Enrollment Growth Program -- Definitions.
             38          (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
             39      outlay funding to school districts experiencing net enrollment increases.
             40          (2) As used in this part:
             41          (a) "Account" means the Enrollment Growth Account created in Section 53A-21-303 .
             42          [(a)] (b) "Average annual net enrollment increase" means the quotient of:
             43          (i) (A) enrollment in the prior fiscal year, based on October 1 enrollment counts; minus
             44          (B) enrollment in the year four years prior, based on October 1 enrollment counts;
             45      divided by
             46          (ii) three.
             47          (c) "Education Fund revenue surplus" has the meaning defined in Section 63J-1-313 .
             48          [(b)] (d) "Eligible district" or "eligible school district" means a school district that:
             49          (i) has an average annual net enrollment increase; and
             50          (ii) has a property tax base per ADM in the year two years prior that is less than [two
             51      times] the statewide average property tax base per ADM in the year two years prior.
             52          (e) "Operating deficit" has the meaning defined in Section 63J-1-313 .
             53          Section 2. Section 53A-21-303 is enacted to read:
             54          53A-21-303. Enrollment Growth Account.
             55          (1) There is created within the Education Fund a restricted account known as the
             56      Enrollment Growth Account.
             57          (2) The Enrollment Growth Account consists of:
             58          (a) an Education Fund revenue surplus transferred to the account pursuant to


             59      Subsection (3);
             60          (b) unallocated balances in the following programs within the Minimum School
             61      Program at the end of a fiscal year that are transferred to the account pursuant to Subsection
             62      (4):
             63          (i) the Basic Program; and
             64          (ii) the Related to Basic Programs; and
             65          (c) interest on account funds.
             66          (3) The Division of Finance shall transfer to the Enrollment Growth Account the
             67      balance of an Education Fund revenue surplus remaining after:
             68          (a) the transfer of Education Fund revenue surplus money to the Education Budget
             69      Reserve Account as required by Section 63J-1-313 ; and
             70          (b) any year-end contingency appropriations, year-end set-asides, or other year-end
             71      transfers required by law.
             72          (4) The Division of Finance shall transfer to the Enrollment Growth Account
             73      unallocated balances in the following programs within the Minimum School Program at the
             74      end of a fiscal year:
             75          (a) the Basic Program; and
             76          (b) the Related to Basic Programs.
             77          (5) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
             78      Finance determines that an operating deficit exists, the Division of Finance may reduce the
             79      transfer to the Enrollment Growth Account by the amount necessary to eliminate the operating
             80      deficit.
             81          (6) Upon the appropriation of money from the Enrollment Growth Account to the State
             82      Board of Education, the State Board of Education shall allocate the money to an eligible school
             83      district as provided by Section 53A-21-302 .
             84          Section 3. Appropriation.
             85          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             86      the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following sums of money
             87      are appropriated from resources not otherwise appropriated, or reduced from amounts
             88      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             89      addition to any amounts previously appropriated for fiscal year 2015.


             90          To School Building Programs
             91              From Education Fund, one-time
$122,000,000

             92              Schedule of Programs:
             93                  Capital Outlay Enrollment Growth Program        $122,000,000
             94          Section 4. Effective date.
             95          This bill takes effect on July 1, 2014.




Legislative Review Note
    as of 2-5-14 12:09 PM


Office of Legislative Research and General Counsel


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