Agency: MSP - Voted and Board Local Levy Programs

Line Item: Voted and Board Local Levy Programs

Function

The Voted Leeway and Board Leeway are state-supported programs in which school districts levy a property tax and the state guarantees a certain amount of revenue generated per Weighted Pupil Unit. As guarantee programs, state funding supplements school districts with lower property values. Only school districts that don't meet the minimum revenue per WPU receive an allocation of state funding.

Included in this section is a third property tax levied by school districts: the Board Leeway -- Reading Improvement Program. This program is more of a matching program. School districts receive state funding for the K-3 Reading Improvement Program if they match the state allocation with property tax revenue (or some other local revenue source).

House Bill 301 of the 2011 General Session created two new levies based upon certain existing levies.

The first new levy is the Capital Local Levy, which is a combination of the previous:

• Capital Outlay Levy; and

• Voted Capital Levy.

The second new levy is the Board Local Levy, which is a combination of the previous:

• Board Leeway Levy;

• K-3 Reading Levy;

• Public Law Levy;

• Special Transportation Levy;

• Recreation Levy;

• Utah Government Immunity Levy; and

• 10% Additional Basic Levy.

The bill imposed new maximum caps for the new rates.

Funding Detail

In FY 2011, local school districts generated approximately $310.5 million in local revenues to support the Voted and Board Leeway programs. The Legislature provided approximately $57.9 million ongoing to fund the Voted and Board state guarantee in the same year. Increased state costs are due to an overall decrease in the taxable value of properties within qualifying school districts.

Local school districts generated $15 million to support the K-3 Reading Improvement program. Similarly, the Legislature appropriated $15 million to support the program. Please see the K-3 Reading Improvement Program above for more information

Program: Voted Local Levy Program

Function

First authorized by the Legislature in 1954, the Voted Leeway Program is a property tax levy authorized to cover a portion of the costs of operation and maintenance of the state supported Minimum School Program in a school district. In order to impose the property tax levy, the Voted Leeway must receive a majority vote by the school district electorate. Revenue generated through a district's Voted Leeway may be budgeted and expended under general fund (GASB replaced the previously used "maintenance and operation" with general fund) as authorized by the local school board.

Formula -- When including the Board Leeway levy, a district may impose a Voted Leeway rate of up to 0.002 to generate property tax and state aid revenue to supplement the district's general fund costs. In addition to the property tax, the State provides a "state guarantee" for each school district levying the Voted Leeway levy. The guarantee is a statutorily set dollar amount of 0.0001 of tax rate per Weighted Pupil Unit (WPU).

Statute provides for an annual increase in the state guarantee rate. Statute states that the rate "shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12 program by making the value of the guarantee equal to 0.010544 times the value of the prior year's weighted pupil unit for the grades 1 through 12 program. The guarantee shall increase by 0.0005 times the value of the prior year's weighted pupil unit for the grades 1 through 12 program for each succeeding year subject to the Legislature appropriating funds for an increase in the guarantee."

In FY 2013, the Legislature authorized an increase in the state guarantee contribution from $27.17 to $27.36 per weighted pupil unit.

Statutory Authority

• UCA 53A-17a-133 -- authorizes the Voted Leeway Program, establishes the state funded guarantee thresholds, and outlines election procedures for school districts implementing a Voted Leeway.

  The State Board of Education's Administrative Rule R277-422-3 provides administrative procedures associated with the governance of the Voted Leeway Program.

  Funding Detail

  Sources of Finance (click linked fund name for more info)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
  Uniform School Fund	$21,246,637	$27,927,928	$0	$0	$0
  Uniform School Fund, One-time	$0	$10,685,600	$0	$0	$0
  Education Fund	$0	$0	$43,260,692	$66,292,848	$74,697,400
  Local Revenue	$252,090,709	$250,468,222	$257,755,300	$253,746,900	$223,502,700
  Beginning Nonlapsing	$0	$0	$0	$12,077,900	$0
  Closing Nonlapsing	$0	$0	($12,077,900)	($28,665,300)	$0
  Total	$273,337,346	$289,081,750	$288,938,092	$303,452,348	$298,200,100
  Categories of Expenditure (mouse-over category name for definition)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
  Other Charges/Pass Thru	$273,337,346	$289,081,750	$288,938,092	$303,452,348	$298,200,100
  Total	$273,337,346	$289,081,750	$288,938,092	$303,452,348	$298,200,100

  Subcommittee Table of Contents

  Program: Board Local Levy Program

  Function

  The Board Leeway Program allows a local school board to levy a property tax rate of up to 0.0004 to maintain a school program above the cost of the basic program. Statute limits the use of revenue generated by the Board Leeway Program to class size reduction. However, if a local school board determines that district class sizes are not excessive, it may seek authorization to use program revenue to support other district functions. "If a local school board determines that the average class size in the school district is not excessive, it may use the monies for other school purposes but only if the board has declared the use for other school purposes in a public meeting prior to levying the tax rate" (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). Statute also requires school district to certify to the State Board of Education that class size needs are being met and identify the other school purposes for which Board Leeway revenues will be used before they can use any generated revenue.

  Formula -- Similar to the Voted Leeway, the Board Leeway contains a state guarantee component. The state guarantee component is a statutorily set dollar amount per 0.0001 of tax rate per WPU, with a cap at 0.0004.

  Please refer to the Voted Leeway formula section for more information on the state guarantee rate.

  Statutory Authority

  • UCA 53A-17a-134 -- provides statutory authorization for the Board Leeway and restricts the use of generated revenue to class size reduction efforts. The statute outlines the required procedure districts must follow in order to use generated revenue on other district programs (other than class size reduction efforts) and establishes the state funded guarantee amount.

    The State Board of Education's Administrative Rule R277-422-3 provides administrative procedures associated with the governance of the Board Leeway Program.

    Funding Detail

    Sources of Finance (click linked fund name for more info)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
    Uniform School Fund	$7,279,343	$10,072,256	$0	$0	$0
    Uniform School Fund, One-time	$0	$2,814,400	$0	$0	$0
    Education Fund	$0	$0	$14,667,456	$15,000,000	$19,901,400
    Local Revenue	$64,296,515	$63,252,384	$63,539,800	$63,196,800	$62,418,200
    Beginning Nonlapsing	$0	$0	$0	$4,426,500	$0
    Closing Nonlapsing	$0	$0	($4,426,500)	($8,853,000)	$0
    Total	$71,575,858	$76,139,040	$73,780,756	$73,770,300	$82,319,600
    Categories of Expenditure (mouse-over category name for definition)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
    Other Charges/Pass Thru	$71,575,858	$76,139,040	$73,780,756	$73,770,300	$82,319,600
    Total	$71,575,858	$76,139,040	$73,780,756	$73,770,300	$82,319,600

    Subcommittee Table of Contents

    Program: Board Local Levy Program - Reading Improvement

    Function

    The K-3 Reading Improvement Program discussed in the Related to Basic School Program also includes a local property tax component. Generated property tax revenue, when combined with the state allocation in the Related to Basic School Program, supports a school district's reading improvement plan, which is mainly to have students reading at grade level by the end of the third grade.

    There are three programs in the Reading Improvement Program: the Base Level Program; the Guarantee Program, and the Low Income Students Program. To fully participate in the Guarantee Program, a school district shall allocate to the program an amount equal to the amount of revenue that would be generated by a tax rate of 0.000056 for each program. To fully participate in the Low Income Students program, a school district shall allocate to the program an amount equal to th eamount of revenue that would be generated by a tax rate of 0.000065. A school district must fully participate in one program before it may elect to participate in the other program.

    If for three consecutive years an LEA fails to meet its reading goals, the local board shall terminate any tax levy imposed and may not receive money appropriated by the Legislature for the K-3 Reading Improvement Program.

    Please refer to the K-3 Reading Improvement Program in the Related to Basic School Program for more information.

    Statutory Authority

    Please refer to the statutory guidelines detailed in the K-3 Reading Improvement Program section in the Minimum School Program.

    Funding Detail

    Sources of Finance (click linked fund name for more info)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
    Local Revenue	$15,000,000	$15,000,000	$15,000,000	$15,000,000	$15,000,000
    Total	$15,000,000	$15,000,000	$15,000,000	$15,000,000	$15,000,000
    Categories of Expenditure (mouse-over category name for definition)	2009 Actual	2010 Actual	2011 Actual	2012 Actual	2013 Approp
    Other Charges/Pass Thru	$15,000,000	$15,000,000	$15,000,000	$15,000,000	$15,000,000
    Total	$15,000,000	$15,000,000	$15,000,000	$15,000,000	$15,000,000

    Subcommittee Table of Contents