1     
PUBLIC EDUCATION BUDGET AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Eliason

5     
Senate Sponsor: Lincoln Fillmore

6     

7     LONG TITLE
8     General Description:
9          This bill supplements or reduces appropriations otherwise provided for the support and
10     operation of public education for the fiscal year beginning July 1, 2020, and ending
11     June 30, 2021, and for the fiscal year beginning July 1, 2021, and ending June 30, 2022.
12     Highlighted Provisions:
13          This bill:
14          ▸     provides appropriations for the use and support of school districts, charter schools,
15     and state education agencies;
16          ▸     directs the State Board of Education on how to execute certain funding programs;
17          ▸     provides appropriations for other purposes as described;
18          ▸     amends and enacts provisions related to certain appropriations for public education,
19     including:
20               •     allowing the State Board of Education (state board) to use data from fiscal year
21     2020 for certain funding formulas in certain circumstances;
22               •     allowing the state board to distribute funds to mitigate funding losses associated
23     with the elimination of the Administrative Cost Program;
24               •     requiring the state board to allocate funds for English language learner software;
25     and
26               •     providing the State Charter School Board with increased budgetary autonomy;
27          ▸     makes technical and conforming changes; and

28          ▸     provides intent language.
29     Money Appropriated in this Bill:
30          This bill appropriates $50,561,400 in operating and capital budgets for fiscal year 2021,
31     including:
32          ▸     $3,851,200 from the Education Fund; and
33          ▸     $46,710,200 from various sources as detailed in this bill.
34          This bill appropriates $2,270,000 in transfers to unrestricted funds for fiscal year 2021.
35          This bill appropriates $100,384,400 in operating and capital budgets for fiscal year
36     2022, including:
37          ▸     $100 from the General Fund;
38          ▸     $28,288,700 from the Uniform School Fund;
39          ▸     $29,786,500 from the Education Fund; and
40          ▸     $42,309,100 from various sources as detailed in this bill.
41     Other Special Clauses:
42          This bill provides a special effective date.
43     Utah Code Sections Affected:
44     AMENDS:
45          53E-5-302, as last amended by Laws of Utah 2019, Chapter 186
46          53F-2-304, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 9
47          53F-2-706, as enacted by Laws of Utah 2020, Fifth Special Session, Chapter 14
48          53G-5-202, as last amended by Laws of Utah 2018, Chapter 383 and renumbered and
49     amended by Laws of Utah 2018, Chapter 3
50     ENACTS:
51          53F-2-209, Utah Code Annotated 1953
52          53F-2-418, Utah Code Annotated 1953
53     REPEALS:
54          53F-5-212, as last amended by Laws of Utah 2020, Chapters 354 and 408
55     

56     Be it enacted by the Legislature of the state of Utah:
57          Section 1. Section 53E-5-302 is amended to read:
58          53E-5-302. State board to designate low performing schools -- Needs assessment.

59          (1) Except as provided in Subsection (4), the state board shall:
60          (a) annually designate a school as a low performing school; and
61          (b) conduct a needs assessment for a low performing school by thoroughly analyzing
62     the root causes of the low performing school's low performance.
63          (2) The state board may use up to 5% of the appropriation provided under this part to
64     hire or contract with one or more individuals to conduct a needs assessment described in
65     Subsection (1)(b).
66          (3) A school that was designated as a low performing school based on 2015-2016
67     school year performance that is not in the lowest performing 3% of schools statewide following
68     the 2016-2017 school year is exempt from the provisions of this part.
69          (4) (a) The state board is not required to designate as a low performing school a school
70     for which the state board is not required to assign an overall rating in accordance with Section
71     53E-5-204.
72          (b) The requirement to designate a school as a low-performing school described in
73     Subsection (1) does not apply in relation to the 2020-2021 and 2021-2022 school years.
74          Section 2. Section 53F-2-209 is enacted to read:
75          53F-2-209. Use of data to determine funding in fiscal years 2021 and 2022.
76          (1) For fiscal years 2021 and 2022, if data necessary for programmatic funding
77     distributions to LEAs is inconsistent due to adjustments related to effects of the COVID-19
78     emergency, the state board may use the analogous data from fiscal year 2020 or the 2019-2020
79     school year, at the state board's discretion to execute programmatic funding distributions to
80     LEAs.
81          (2) The state board shall report to the Public Education Appropriations Subcommittee
82     before September 30, 2021, on instances in which the board used fiscal year 2020 data under
83     Subsection (1).
84          Section 3. Section 53F-2-304 is amended to read:
85          53F-2-304. Necessarily existent small schools -- Computing additional weighted
86     pupil units -- Consolidation of small schools.
87          (1) As used in this section, "necessarily existent small schools funding balance" means
88     the difference between:
89          (a) the amount appropriated for the necessarily existent small schools program in a

90     fiscal year; and
91          (b) the amount distributed to school districts for the necessarily existent small schools
92     program in the same fiscal year.
93          (2) (a) Upon application by a local school board, the state board shall, in consultation
94     with the local school board, classify schools in the school district as necessarily existent small
95     schools, in accordance with this section and state board rules adopted under Subsection (3).
96          (b) An application must be submitted to the state board before April 2, and the state
97     board must report a decision to a local school board before June 2.
98          (3) The state board shall adopt standards and make rules, in accordance with Title 63G,
99     Chapter 3, Utah Administrative Rulemaking Act, to:
100          (a) govern the approval of necessarily existent small schools consistent with principles
101     of efficiency and economy that serve the purpose of eliminating schools where consolidation is
102     feasible by participation in special school units; and
103          (b) ensure that school districts are not building secondary schools in close proximity to
104     one another where economy and efficiency would be better served by one school meeting the
105     needs of secondary students in a designated geographical area.
106          (4) The state board shall prepare and publish objective standards and guidelines for
107     determining which small schools are necessarily existent after consultation with local school
108     boards.
109          (5) (a) Additional weighted pupil units for schools classified as necessarily existent
110     small schools shall be computed using distribution formulas adopted by the state board.
111          (b) The distribution formulas establish the following maximum sizes for funding under
112     the necessarily existent small school program:
113          (i) an elementary school                    160
114          (ii) a one or two-year secondary school          300
115          (iii) a three-year secondary school               450
116          (iv) a four-year secondary school               500
117          (v) a six-year secondary school               600
118          (c) An elementary school with fewer than 10 students shall receive the same add-on
119     weighted pupil units as an elementary school with 10 students.
120          (d) A secondary school with fewer than 15 students shall receive the same add-on

121     weighted pupil units as a secondary school with 15 students.
122          (e) If a necessarily existent small school generates ADM in both elementary and
123     secondary grades, the state board may divide the school's ADM between an elementary and
124     secondary distribution formula.
125          (f) The state board shall prepare and distribute an allocation table based on the
126     distribution formula to each school district.
127          (6) (a) To avoid penalizing a school district financially for consolidating the school
128     district's small schools, additional weighted pupil units may be allowed a school district each
129     year, not to exceed two years.
130          (b) The additional weighted pupil units may not exceed the difference between what
131     the school district receives for a consolidated school and what the school district would have
132     received for the small schools had the small schools not been consolidated.
133          (7) (a) The state board may allocate up to 208 weighted pupil units to support schools
134     that:
135          (i) have isolating conditions, as defined by the state board, including geographic
136     isolation; and
137          (ii) do not qualify for necessarily existent small schools funding due to formula
138     limitations.
139          (b) The state board shall review funding allocations under this Subsection (7) at least
140     once every five calendar years.
141          (8) If the state board classifies a school as a necessarily existent small school in
142     accordance with this section, the state board shall, subject to legislative appropriation,
143     distribute small district base funding to the relevant school district in the following amounts:
144          (a) for a district with 500 students or less, 83 additional weighted pupil units;
145          (b) for a district with 501 to 1,000 students, 28 additional weighted pupil units; and
146          (c) for a district with 1,001 to 2,000 students, 14 additional weighted pupil units.
147          (9) Subject to legislative appropriation, the state board shall give first priority from an
148     appropriation made under this section to funding an expense approved by the state board as
149     described in Subsection 53G-6-305(3)(a).
150          (10) (a) Subject to Subsection (10)(b) and after a distribution made under Subsection
151     (9), the state board may distribute a portion of necessarily existent small schools funding:

152          (i) in accordance with a formula adopted by the state board that considers the tax effort
153     of a local school board; or
154          (ii) to isolated small schools, as identified by the state board.
155          (b) The amount distributed in accordance with Subsection (10)(a) may not exceed the
156     necessarily existent small schools fund in balance of the prior fiscal year.
157          (11) A local school board may use the money allocated under this section for
158     maintenance and operation of school programs or for other school purposes as approved by the
159     state board.
160          (12) (a) Notwithstanding this section and subject to legislative appropriations, the state
161     board may, in accordance with Subsection (12)(b), distribute one-time funding that the
162     Legislature appropriates to mitigate funding losses as described in legislative appropriations.
163          (b) The state board may make the distribution described in Subsection (12)(a) to school
164     districts that:
165          (i) enroll fewer than 5,000 students; and
166          (ii) do not pay local property tax proceeds into the Uniform School Fund as described
167     in Section 53F-2-301.5.
168          Section 4. Section 53F-2-418 is enacted to read:
169          53F-2-418. English language learner software.
170          (1) Subject to legislative appropriations, the state board shall:
171          (a) allocate funds to LEAs for English language learner software; and
172          (b) make the allocation described in Subsection (1)(a) using a formula that provides:
173          (i) a base amount for each LEA that has English language learner students; and
174          (ii) a distribution of remaining funding in proportion to the LEA's share of statewide
175     English language learner students.
176          (2) An LEA shall use an allocation the LEA receives under Subsection (1) to select a
177     vendor and pay for software licenses for English language learner instruction.
178          Section 5. Section 53F-2-706 is amended to read:
179          53F-2-706. Small charter school base funding.
180          (1) Subject to legislative appropriation, the state board shall distribute small charter
181     school base funding in the following amounts to charter schools with 2,000 or less students:
182          (a) for a charter school with 300 students or less, $40,000;

183          (b) for a charter school with 301 to 400 students, $35,000;
184          (c) for a charter school with 401 to 500 students, $30,000;
185          (d) for a charter school with 501 to 600 students, $25,000;
186          (e) for a charter school with 601 to 1,000 students, $20,000; and
187          (f) for a charter school with 1,001 to 2,000 students, $15,000.
188          (2) A charter school's eligibility for small charter school base funding is determined by
189     the charter school's student enrollment on October 1 of a given year.
190          (3) Notwithstanding this section and subject to legislative appropriations, the state
191     board may distribute to charter schools, regardless of size, one-time funding that the
192     Legislature appropriates to mitigate funding losses as described in legislative appropriations.
193          Section 6. Section 53G-5-202 is amended to read:
194          53G-5-202. Status and powers of State Charter School Board.
195          (1) The State Charter School Board may:
196          [(1)] (a) enter into contracts;
197          [(2)] (b) sue and be sued; and
198          [(3) (a)] (c) (i) at the discretion of the charter school, provide administrative services
199     to, or perform other school functions for, charter schools authorized by the State Charter
200     School Board; and
201          [(b)] (ii) charge fees for the provision of services or functions.
202          (2) The state board shall:
203          (a) approve the annual budget and expenditures of the State Charter School Board; and
204          (b) otherwise grant autonomy to the State Charter School Board to manage the State
205     Charter School Board's budget.
206          Section 7. Repealer.
207          This bill repeals:
208          Section 53F-5-212, Grants for additional educators for high-need schools.
209          Section 8. Fiscal Year 2021 Appropriation.
210          The following sums of money are appropriated for the fiscal year beginning July 1,
211     2020, and ending June 30, 2021. These are additions to amounts otherwise appropriated for
212     fiscal year 2021.
213          Subsection 8(a). Operating and Capital Budgets.

214          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
215     Legislature appropriates the following sums of money from the funds or accounts indicated for
216     the use and support of the government of the state of Utah.
217     
Public Education

218     
State Board of Education - Minimum School Program

219     
Item
1 To State Board of Education - Minimum School Program - Basic School Program
220          From Education Fund, One-time
15,000,000

221          Schedule of Programs:
222               Grades 1 - 12                              15,000,000
223     
Item
2 To State Board of Education - Minimum School Program - Voted and Board Local

224     Levy Programs
225          From Education Fund, One-time
(15,000,000)

226          Schedule of Programs:
227               Voted Local Levy Program                    (7,500,000)
228               Board Local Levy Program                    (7,500,000)
229     
State Board of Education

230     
Item
3 To State Board of Education - Child Nutrition
231          From Federal Funds, One-time
48,927,100

232          Schedule of Programs:
233               Child Nutrition                         48,927,100
234     
Item
4 To State Board of Education - Initiative Programs

235          From Beginning Nonlapsing Balances
(2,170,000)

236          Schedule of Programs:
237               Contracts and Grants                         (670,000)
238               ELL Software Licenses                    (1,500,000)
239     
Item
5 To State Board of Education - MSP Categorical Program Administration

240          From Beginning Nonlapsing Balances
(100,000)

241          Schedule of Programs:
242               Dual Immersion                         (100,000)
243     
Item
6 To State Board of Education - State Administrative Office

244          From Education Fund, One-time
4,000,000


245          Schedule of Programs:
246               Statewide Financial Management System Grants     4,000,000
247          The Legislature intends that the State Board of Education use one-time funds
248     appropriated to support Statewide Financial Management System Grants to provide grants to
249     local education agencies in fiscal year 2021, fiscal year 2022, or fiscal year 2023 to make
250     changes to local data systems to facilitate data transfers between the LEA and the state.
251     
Item
7 To State Board of Education - General System Support

252          From Education Fund, One-time
(95,700)

253          Schedule of Programs:
254               Student Achievement                         (95,700)
255     
Item
8 To State Board of Education - State Charter School Board

256          From Education Fund, One-time
(53,100)

257          Schedule of Programs:
258               From Closing Nonlapsing Balances               53,100
259          Subsection 8(b). Transfers to Unrestricted Funds.
260          The Legislature authorizes the State Division of Finance to transfer the following
261     amounts to the unrestricted General Fund, Education Fund, or Uniform School Fund, as
262     indicated, from the restricted funds or accounts indicated. Expenditures and outlays from the
263     General Fund, Education Fund, or Uniform School Fund must be authorized by an
264     appropriation.
265     
Public Education

266     
Item
9 To Education Fund
267          From Nonlapsing Balances - Transfer from Dual Language Program
100,000

268          From Nonlapsing Balances - Transfer from ELL Software Licenses
1,500,000

269          From Nonlapsing Balances - Transfer from Initiative Programs
670,000

270          Schedule of Programs:
271               Education Fund, One-time                    2,270,000
272          Section 9. Fiscal Year 2022 Appropriation.
273          The following sums of money are appropriated for the fiscal year beginning July 1,
274     2021, and ending June 30, 2022. These are additions to amounts otherwise appropriated for
275     fiscal year 2022.

276          Subsection 9(a). Operating and Capital Budgets.
277          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
278     Legislature appropriates the following sums of money from the funds or accounts indicated for
279     the use and support of the government of the state of Utah.
280     
Public Education

281     
State Board of Education - Minimum School Program

282     
Item
10 To State Board of Education - Minimum School Program - Basic School Program
283          From Uniform School Fund
500,000

284          From Uniform School Fund, One-time
3,600,000

285          Schedule of Programs:
286               Necessarily Existent Small Schools (131 WPUs)          4,100,000
287          The Legislature intends that the State Board of Education distribute funds in accordance
288     with Subsection 53F-2-304(12) to mitigate funding losses associated with the elimination of
289     the Administrative Cost Program.
290     
Item
11 To State Board of Education - Minimum School Program - Related to Basic School

291     Programs
292          From Uniform School Fund
16,688,700

293          From Uniform School Fund, One-time
7,500,000

294          From Beginning Nonlapsing Balances
(11,400)

295          From Closing Nonlapsing Balances
11,400

296          Schedule of Programs:
297               Pupil Transportation To and From School               2,500,000
298               Beverley Taylor Sorenson Elementary Arts
299               Learning Program                              2,000,000
300               Early Intervention                              7,000,000
301               Grants for Educators in High-need Schools               (500,000)
302               National Board Certified Teacher Program               (246,300)
303               Grants for Professional Learning                    3,935,000
304               Charter School Funding Base Program               5,000,000
305               English Language Learner Software                    4,500,000
306          (1) The Legislature intends that the expenditures upon which state funding is

307     contingent under Items 2, 9, 22, and 33 in S.B. 1, Public Education Base Budget Amendments,
308     be modified to include all of the federally allowed activities for the Federal Coronavirus Relief
309     for Public Education funds except:
310          (a) school facility repairs and improvements to enable operation of schools to reduce
311     risk of virus transmission and exposure to environmental health hazards, and to support student
312     health needs; and
313          (b) inspection, testing, maintenance, repair, replacement, and upgrade projects to
314     improve the indoor air quality in school facilities, including mechanical and non-mechanical
315     heating, ventilation, and air conditioning systems, filtering, purification and other air cleaning,
316     fans, control systems, and window and door repair and replacement.
317          (2) The Legislature further intends that the State Board of Education distribute funds in
318     accordance with Subsection 53F-2-706(3) to mitigate funding losses associated with the
319     elimination of the Administrative Cost Program.
320     
State Board of Education

321     
Item
12 To State Board of Education - Educator Licensing
322          From Education Fund
246,300

323          From Beginning Nonlapsing Balances
11,400

324          From Closing Nonlapsing Balances
(11,400)

325          Schedule of Programs:
326               National Board-Certified Teachers                    246,300
327     
Item
13 To State Board of Education - Fine Arts Outreach

328          From Education Fund
250,000

329          Schedule of Programs:
330               Provisional Program                              250,000
331     
Item
14 To State Board of Education - Initiative Programs

332          From Education Fund
6,800,000

333          From Education Fund, One-time
5,408,100

334          From Beginning Nonlapsing Balances
2,988,400

335          Schedule of Programs:
336               Computer Science Initiatives                         5,000,000
337               Contracts and Grants                              3,300,000

338               Early Warning Pilot Program                         125,000
339               Electronic Elementary Reading Tool                    1,500,000
340               ProStart Culinary Arts Program                    300,000
341               School Turnaround and Leadership Development Act     (4,028,500)
342               UPSTART                                   9,000,000
343     
Item
15 To State Board of Education - MSP Categorical Program Administration

344          From Education Fund
1,065,000

345          Schedule of Programs:
346               Early Learning Training and Assessment               1,065,000
347     
Item
16 To State Board of Education - Science Outreach

348          From Education Fund
475,000

349          Schedule of Programs:
350               Informal Science Education Enhancement               475,000
351     
Item
17 To State Board of Education - State Administrative Office

352          From General Fund
100

353          From Education Fund
(3,448,300)

354          From Education Fund, One-time
29,100

355          From Federal Funds, One-time
37,178,400

356          From General Fund Restricted - Mineral Lease
1,900

357          From Revenue Transfers
28,900

358          From Uniform School Fund Restricted - Trust Distribution Account
170,000

359          From Uniform School Fund Restricted - Trust Distribution Account,
360           One-time
105,000

361          From Beginning Nonlapsing Balances
(1,625,500)

362          From Closing Nonlapsing Balances
1,376,900

363          Schedule of Programs:
364               Board and Administration                         37,193,900
365               Financial Operations                              112,300
366               Indirect Cost Pool                              196,000
367               School Trust                                   275,000
368               Special Education                              (50,000)

369               Statewide Online Education Program               (4,610,700)
370               Student Support Services                         700,000
371          The Legislature intends that the State Board of Education;
372          (1) report to the Public Education Appropriations Subcommittee, on or before
373     September 30, 2021, regarding how school-level data included in the Annual Financial Reports
374     (AFRs) and Annual Program Reports (APRs) will be reported in a public-facing format; and
375          (b) (i) develop a fee for service schedule for certifying the special education programs
376     of residential treatment centers; and
377          (ii) report the schedule to the Public Education Appropriations Subcommittee on or
378     before October 1, 2021.
379     
Item
18 To State Board of Education - General System Support

380          From Education Fund
78,500

381          From Education Fund, One-time
7,864,900

382          Schedule of Programs:
383               Teaching and Learning                         926,500
384               Assessment and Accountability                    7,016,900
385          (1) The Legislature intends that the Utah State Board of Education use any revenue or
386     nonlapsing balances generated from the licensing of Readiness Improvement Success
387     Empowerment (RISE) questions to develop additional assessment questions for all state
388     assessments, provide professional learning for Utah educators, and for risk mitigation
389     expenditures.
390          (2) The Legislature intends that, of the appropriations provided to State Board of
391     Education - Teaching and Learning, $225,000 be used to implement the provisions of
392     American Indian and Alaskan Native Education, S.B. 124, Chapter 269, Laws of Utah 2020,
393     General Session.
394          (3) The Legislature intends that, of the appropriations provided by this item, $800,000
395     one-time be used to implement the provisions of Concurrent Enrollment Certificate Pilot
396     Program, H.B. 336, Chapter 321, Laws of Utah 2020, General Session.
397     
Item
19 To State Board of Education - State Charter School Board

398          From Education Fund
1,600

399          Schedule of Programs:

400               State Charter School Board                         1,600
401     
Item
20 To State Board of Education - Utah Schools for the Deaf and the Blind

402          From Education Fund
300

403          From Education Fund, One-time
1,825,000

404          From Revenue Transfers
100

405          Schedule of Programs:
406               Support Services                              400
407               Administration                              1,325,000
408               Utah State Instructional Materials Access Center          500,000
409          The Legislature intends that the Utah Schools for the Deaf and the Blind charge a fee to
410     out-of-state schools for instructional materials produced by the Utah State Instructional
411     Materials Access Center (USIMAC) to cover actual costs of reprinting and shipping per
412     volume. The estimated fee amount is $150 per Braille volume and $15 shipping.
413     
Item
21 To State Board of Education - Statewide Online Education

414          From Education Fund
4,390,100

415          From Education Fund, One-time
4,800,900

416          From Revenue Transfers
(28,900)

417          From Beginning Nonlapsing Balances
1,625,500

418          From Closing Nonlapsing Balances
(1,376,900)

419          Schedule of Programs:
420               Statewide Online Education                         9,410,700
421          The Legislature intends that the State Board of Education use one-time funding
422     appropriated to the Statewide Online Education Program to meet the following priorities:
423          (1) fully fund requests for enrollment from homeschool students; and
424          (2) use remaining funding to support enrollment requests from students accessing the
425     program through a private school.
426     
State Board of Education

427     
Item
22 To School and Institutional Trust Fund Office
428          From School and Institutional Trust Fund Management Account
1,865,300

429          Schedule of Programs:
430               School and Institutional Trust Fund Office               1,865,300

431          Section 10. Effective date.
432          (1) Except as provided in Subsection (2), if approved by two-thirds of all the members
433     elected to each house, this bill takes effect upon approval by the governor, or the day following
434     the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
435     signature, or in the case of a veto, the date of veto override.
436          (2) The following sections of this bill take effect on July 1, 2021:
437          (a) Section 53E-5-302;
438          (b) Section 53F-2-209;
439          (c) Section 53F-2-304;
440          (d) Section 53F-2-418;
441          (e) Section 53F-2-706;
442          (f) Section 53G-5-202;
443          (g) Section 7, Repealer;
444          (h) Section 9, Fiscal Year 2022 Appropriations; and
445          (i) Subsection 9(a), Operating and Capital Budgets.