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:

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             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

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             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:

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             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

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             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.

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