MINUTES OF THE
PUBLIC EDUCATION APPROPRIATIONS SUBCOMMITTEE
Tuesday, January 24, 2023 • 8:00 a.m. • 110 Senate Building


Members Present:
Sen. Lincoln Fillmore, Senate Chair
Rep. Susan Pulsipher, House Chair
Rep. Norman K Thurston, Vice Chair
Sen. Keith Grover
Sen. David P. Hinkins
Sen. Derrin R. Owens
Sen. Kathleen A. Riebe
Rep. Joel K. Briscoe
Rep. James Cobb
Rep. Steve Eliason
Rep. Katy Hall
Rep. Dan N. Johnson
Rep. Carol S. Moss
Rep. Karen M. Peterson
Rep. Candice B. Pierucci

Members Absent:
Sen. Ann Millner
Sen. Jerry W. Stevenson
Rep. Jefferson Moss
Rep. Robert M. Spendlove

Staff Present:
Ben Leishman, Finance Manager
Matthew Henderson, Financial Analyst
Andrew Talleh, Financial Analyst
Nancy Skidmore, Committee Secretary

Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.
1.Call to Order
Chair Pulsipher called the meeting to order at 8:12 a.m.
2.Base Budget Modification
Ben Leishman presented Base Budget Modifications.
3. Base Budget Modifications Brief
Rep. Briscoe asked if LEA's had budgetary flexibility authority during the last two years.
Ben Leishman responded.
Rep. Johnson asked for an explanation of the reasoning behind not being able to do a lump sum distribution.
Ben Leishman responded.
3.Approval of Minutes
MOTION:Rep. Johnson moved to approve the minutes of the January 18, 2023 and January 20, 2023, meetings.The motion passed with a vote of 10-0-9.
Yeas - 10Nays- 0Abs- 9
Rep. J. Briscoe
Sen. L. Fillmore
Rep. K. Hall
Sen. D. Hinkins
Rep. D. Johnson
Rep. C. Moss
Sen. D. Owens
Rep. K. Peterson
Rep. S. Pulsipher
Sen. K. Riebe
Rep. J. Cobb
Rep. S. Eliason
Sen. K. Grover
Sen. A. Millner
Rep. J. Moss
Rep. C. Pierucci
Rep. R. Spendlove
Sen. J. Stevenson
Rep. N. Thurston
4.Line-Item Review: Educator Licensing
Matthew Henderson presented Educator Licensing Review.
5.Line-Item Review: Voted & Board Local Levy Programs
4. LFA Educator Licensing Budget Review - GS2023
Ben Leishman presented Voted & Board Local Levy Programs.
5. MSP Budget Review - Voted & Board
5a. Voted & Board Distributions - Rate vs. Increment
Rep. Briscoe asked if the $108 million local levy account budgeted during the freeze of the last five-years is the total local levy account or is it the amount applied to voted and board local levy.
Ben Leishman responded.
Rep. Thurston asked about the effect of tax bill H.B 293 in relation to the tax increase and the 5-year freeze.
Ben Leishman responded.
Rep. Johnson asked for clarification of the $130 million in the Equity Pupil Restricted Fund and how excess money is used.
Ben Leishman responded.
Rep. Eliason asked if the public could receive an income tax rebate if there is excess income tax dollars. He also asked if the excess funds are generated by residential or commercial property tax payers or both.
Ben Leishman responded.
Rep. Peterson asked how many districts have maxed out their board levy.
Ben Leishman responded.
Sen. Riebe commented that taking money out of the budget and earmarking it for different causes creates more burden on the goal of the Minimum School Program.
Ben Leishman responded.
Rep. Thurston asked for clarification of the State Guarantee Rate and the disparity between each school district's property in its ability to generate property tax money.
Sen. Fillmore and Ben Leishman responded.
Rep. Briscoe commented that the Legislature has created a minimum guarantee so each school district is equalized.
Ben Leishman responded.
Sen. Riebe commented that the needs of the state are changing so there is a need to measure the many challenges of the district other than money.
Ben Leishman responded.
Rep. Eliason commented that Utah is one of a handful of states that has never been sued for equalization of funding. That being said, he feels that there needs to be more transparency about equity at the district level.
Ben Leishman continued his presentation.
Rep. Johnson asked if school districts have to choose between voted or board levies in using increment over rate or can they have a hybrid.
Ben Leishman responded.
6.Equalization Panel
Ben Leishman, Craig Carter, Business Administrator, Davis County School District, Michael Harrison, Business Administrator, Nebo School District and Randy Upton, Business Administrator, Park City School District responded to questions about Equalization.
Rep. Thurman asked a hypothetical question about equalization between school districts.
Craig Carter responded.
Sen. Owens commented that it is a Constitutional duty of the Legislature to continue to move toward equalizing school districts.
Sen. Riebe asked if there is any effort in the local communities to help with local taxes to keep teachers in their districts.
Craig Carter responded.
Rep. Briscoe commented on the many differences in how property tax is generated in each school districts.
Rep. Thurston asked for an explanation of school districts health care insurance increases. He also asked each panelists which health care insurance their district is using.
Michael Harrison, Craig Carter, and Randy Upton responded.
Sen. Fillmore commented on the importance of equalization in our school districts and expressed gratitude that the Equalization Program is creating more equity between school districts.
Rep. Pulsipher expressed appreciation to the panel for coming and all the work that they do.
7.Line-Item Review: School Building Programs
Ben Leishman presented the School Building Programs review.
7. School Building Programs Budget Review
7a. School Building Program Distributions
Sen. Owens asked if last year's school building funding bill is connected to the Capital Outlay Foundation Program.
Ben Leishman responded.
Rep. Moss asked if there is a basic funding amount for each district in the Capital Outlay Foundation Program.
Ben Leishman responded.
Rep. Moss asked how districts with less money can compete with districts with more money.
Ben Leishman responded.
Sen. Riebe illustrated how the school districts and the community are interwoven with an example of how some school districts need to use their schools as Community Centers..
8.Small District Capital Projects Fund
Ben Leishman presented Small District Capital Projects Fund.
8. [USBE] Emery School District
Sen. Owens commented that the amount of tax money a district receives for funding is a direct result of the geography of the school district.
Emery School District Small District Capital Funding
Ryan Maughan, Superintendent, Emery School District and Jackie Allred, Business Administrator, Emery School District presented Emery School Districts funding needs.
Ben Leishman added content to the Emery School District presentation.
Rep. Thurston asked if there are replacement plans for future building.
Ryan Maughan responded.
Rep. Thurston asked if the school district has the ability to set aside money for future building needs.
Ryan Maughan responded.
Sen. Hinkins asked to make a motion to open a bill file to investigate the Emery School District funding.
Ben Leishman responded.
Sen Hickens asked if it would be sufficient to have staff draft intent language for this committee.
Ben Leishman responded.
Sen. Hinkins asked the Committee to take note of the suggestions for Emery School District funding that Ben Leishman presented.
Sydney Dixon, Superintendent of Public Instruction, Utah State Board of Education commented on Emery School Districts presentation.
Scott Jones, Deputy Superintendent of Operations, Utah State Board of Education presented Small District Capital Projects 2023 slides.
8a. [USBE] Small District Capital Projects 2023
9.Requests for Appropriation
Rep. Peterson presented an appropriation request for Grow Your Own.
Rep. Thurston asked who shoulders the financial burden for Grow Your Own.
Rep. Peterson, Sydnee Dickson, and Chair Pulsipher responded.
Rep. Thurston asked if there is data on how students are progressing in the program and/or if students complete the Grow Your Own program.
Lisa McLachlan, Educator Preparation Coordinator, Utah State Board of Education and Sydnee Dixon responded.
Sen. Riebe commented that the Grow Your Own program is changing the schools in a positive way. She asked if this program is working with social workers, psychologists and teachers.
Rep. Peterson responded.
Sen. Hinkins commented that San Juan County has been able to "grow your own" teachers in the Native Americans communities by using the Grow Your Own Program.
Rep. Peterson responded.
Rep. Bennion presented an appropriation request for School Energy and Water Reductions.
9. [Rep. Bennion] H.B. 217 Slides
Rep. Thurston asked if these improvement eventually will pay for themselves.
Rep. Bennion responded.
Rep. Thurson asked if this should be a low interest loan rather than a grant.
Rep. Bennion responded.
MOTION:Sen. Hinkins moved to adjourn.The motion passed with a vote of 7-0-12.
Yeas - 7Nays- 0Abs- 12
Rep. J. Briscoe
Rep. S. Eliason
Sen. D. Hinkins
Rep. D. Johnson
Rep. C. Moss
Rep. S. Pulsipher
Rep. N. Thurston
Rep. J. Cobb
Sen. L. Fillmore
Sen. K. Grover
Rep. K. Hall
Sen. A. Millner
Rep. J. Moss
Sen. D. Owens
Rep. K. Peterson
Rep. C. Pierucci
Sen. K. Riebe
Rep. R. Spendlove
Sen. J. Stevenson
Chair Pulsipher adjourned the meeting at 10:46 a.m.