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FY 1997 Appropriations Report - Public Education

    Fiscal Year 1997 funding for public education in Utah will increase over $172.5 million or 10 percent from FY 1996 estimated expenditures. The Minimum School Program grew by 10.64 percent and public education agency budgets were increased by 3.5 percent. In addition to these increases, the Legislature also included supplemental appropriations of $13.3 million for FY 1996. While total increases for Public Education grew over $172.5 million after reductions in other funds were accounted for, state funding increased by $191 million for FY 1997. Of this amount $84.5 million is considered one- time funding from the Uniform School Fund. (See Table 34 - Public Education Summary)

Uniform School Fund

    Legislative appropriations from the Uniform School Fund for FY 1997 are projected at $1,513,327,631. The projected ongoing revenue available is $1,387,590,000. The difference of $125,737,631 for succeeding year appropriations will either not be available thereby creating a one-time funding for FY 1997 only; or new economic forecasts will need to cover programs the legislature desires to continue before considering new program requests. In light of this, the Legislature specifically designated $48,239,800 in Uniform School Fund appropriations in House Bill 405, "Minimum School Program Act Amendments", as one-time funded programs. In addition, it was recognized that a minimum of $35.8 million of Minimum School Programs would require ongoing funding from potential new revenues in subsequent years. This does not include the increasing costs of the voted and board leeway programs discussed below.

    In addition, House Bill 1007, "Public Education Operating Deficits," as passed in the 1996 Second Special Session, provides additional guarantees for State supported funding of Public Education. The bill provided for use of the Budgetary Reserve Account and other options to cover operational deficits because of insufficient Uniform School Funds.

Voted and Board Leeways

    The Legislature adopted statutory changes in the Minimum School voted and board leeway programs that provide for increasing state funding participation each year through FY 2002 beginning in FY 1998. The statutory changes provide for a state guarantee on increasing rates from the current .0006 up to .0016 by FY 2002. The dollar contribution is indexed to .0075 time the prior year weighted pupil unit value(WPU). The first FY 1998 minimum costs of this action is estimated to be approximately $6,323,000. This initiative will increase the ongoing program cost needed to be funded with new revenues prior to any other considerations.

    In the 1996 Second Special Session of the Legislature, Senate Bill 1001, "Voted and Board Leeway Amendment," was passed. This guaranteed state contributions to school districts for these programs for a two-year period when tax rates and other adjustments affect the formula contribution.

Minimum School Program

     The Minimum School Program is designed to provide funding on an equitable basis to all of the school districts in the state. The 1996 Legislature increased state funding for public schools $187.4 million (16 percent) over the original prior year appropriation. The Legislature provided these dramatic funding increases in a year when Utah schools continue to see small student growth compared with past years (0.84 percent increase projected). Also, the Legislature reduced taxes in the state basic levy for public education (Est. $30 million tax cut), and income tax reductions of approximately $50 million for a total tax reduction of $80 million.

See Table 33 - Minimum School Program Summary.

    Some of the funding increases provided in the Minimum School Program for FY 1997 include the following:

Weighted Pupil Unit

    The Weighted Pupil Unit which funds the basic school program was increased by 4 percent. This is above the projected inflation rate and is the seventh consecutive year where the value of the WPU was increased higher than the rate of inflation.

Retirement Rate

     Over $9.5 million was provided for projected rate increases in the retirement program which is a 1.02 percent increase.

Class-Size

    Perhaps the most notable legislative funding initiative for public education for FY 1997 was the significant new appropriated dollars for class-size reduction. The legislature added $30,000,000 to this program bringing the total program funding to a level of $53,063,600 including related social security and retirement funds. Along with the dollar appropriation the legislature passed House Bill 235, "Reducing Class-Size in Public Schools." This bill provided for 50 percent of the funding to be utilized in kindergarten through second grade and the remainder up through grade six, with emphasis on reading skills.

Growth

  •      Funding of $11.4 million was provide to accommodate the 0.85 percent growth in students expected in FY 1997.

    Special Education Programs

  •      The Legislature added $275,000 for the preschool special education program.

    Technology

        Technology funding increased by $22,800,000 through various actions of the Legislature. Part of the $22.8 million increase ($4.7 million) in one-time funding will fund UtahLink - the state's public education on ramp to the information highway. This goes to fund training programs for teachers, software development and licensing costs as well as physical costs associated with the statewide area computer network. An additional $1.5 million ongoing funding provides for the ETI maintenance program in the MSP. The remaining $9.6 million in one-time funds expands the Educational Technology Initiative for FY 1997 as does the $7.0 million in supplemental appropriations for FY 1996.

    Applied Technology

        An increase of $1.5 million was added to continue implementation of a new formula for high school applied technology programs, and $1.0 million for equipment needs.

    Alternative Language Services

        This program is designed to help districts meet OCR(Office of Civil Rights) standards in providing for a personalized education for those students who speak language other than English. The funding increase of $2,000,000 provides inservice training to teachers for implementation of bilingual instructional models that meet national and regional criteria standards.

    Youth-In-Custody

        The Youth-in-Custody Program received an increase of $1,313,971 for FY 1997 plus a supplemental appropriation of $627,000 for FY 1996. Youth- in-Custody is a program for persons under the age of twenty-one who are in the custody of a state agency other than the Utah State Training School, Utah State Hospital, State Division of Corrections, or Utah State Prison.

    Concurrent Enrollment

        This program received an ongoing increase of $600,000 and a supplemental FY 1996 appropriation of $400,000 to provided for increased enrollment participation in these programs. It will increase the amount available to school districts for students to take college classes while still in high school.

    At-Risk Students

        Over $400,000 was added to the At-Risk Program to provided more discretionary funding to school districts to deal with educational programs for these students.

    Character Education

        Additional funding of $250,000 provides a total $550,000 for second year programs for districts to develop and implement character education programs that are a result of cooperation with district stakeholders and that fit within state guidelines.

    Staff Development

        This program is designed to provide in-service education to secondary school teachers including instruction in practices which incorporate the revised mathematics and science core curriculum; use of technology as an instructional tool; develop teacher skills in the use of new assessment tools that demonstrate student competency; etc. New funding of $2,000,000 is in addition to a base amount of $1,001,230 and statutory provisions that allow similar in-service training with technology and career ladder funds.

    Sign Language Education

        A new program to provide funds for pilot projects in school districts for teaching sign language to students that do not have disabilities was implemented by the Legislature. A $100,000 appropriation was provided to begin this initiative.

    Comprehensive Guidance

        The Comprehensive Guidance program addresses, very specifically, the strategies in the State's Public Education Strategic Plan that relate to developing an individualized educational/occupational program for every student (SEOP). The program is intended to take school counseling to a new level of performance, holding both counselors and principals accountable for the use of counselors' time while focusing services on student outcomes. This year's increased appropriation of $1,200,000 will provide a total of $4,336,150 for third year funding.

    Pupil Transportation

  • Pupil transportation was fully funded with the addition of $6,089,800 to the base for a total of $45,116,734 for FY 1997.

    Centennial Schools

  • Centennial Schools were funded with a carry forward balance of approximately $2,500,000 and an appropriation of $1,100,000 for a total of $3,600,000 for FY 1997.

    High Impact Schools

  •      Second year funding for this program was provided with appropriations of $1.7 million for a total amount of $5,450,000 for FY 1997.

    Textbooks, Supplies and Equipment

  •      Responding to needs for textbooks and supplies the Legislature provided an appropriation of $10.0 million to assist school districts in securing adequate books and supplies.

  •      The Legislature passed House Bill 73, "Appropriation for Classroom Supplies". This provides $3,000,000 to be distributed to teachers for classroom supplies and materials. No teacher may receive more than $150.00 as provided in the bill. The appropriation was made to the State Board of Education for distribution to classroom teachers.

    School Library Media

         The Legislature provided a separate appropriation for school library media collections of $4,500,000 which is to ensure districts fund these specific needs in FY 1997.

    Extended School Year

    • The appropriation of $2,000,000 in additional experimental/ developmental funds is to provide increased resources for districts to try pilot programs that extend the school year. These funds are distributed on a request for proposal basis by the State Board of Education.

    Navajo Mountain

    • An appropriation of $2,000,000 is available for a new school at Navajo Mountain contingent upon the San Juan school district bonding for at least an additional $5,000,000 for capital facilities.

    Minimum School Program FY 1997 One-Time Appropriations
    ProgramFunding
    Applied technology education - District $1,500,000
    Applied technology education - District Equipment1,000,000
    Accelerated Learning Programs - Concurrent Enrollment250,000
    At Risk - Flow through District funding600,000
    Pupil Transportation 6,089,800
    Staff Development 2,000,000
    Comprehensive Guidance 200,000
    Educational Technology Initiative 9,600,000
    Ed Net/ Utah Link 4,700,000
    Centennial Schools 1,100,000
    Alternative Language Services 2,000,000
    Highly Impacted Schools 700,000
    School Building Supplies and Equipment 10,000,000
    School Library Media 4,500,000
    Experimental/Developmental Programs - Extended Year 2,000,000
    Navajo Mountain School 2,000,000
    Total ; $48,239,800

    School Building Aid Programs

        The Legislature passed Senate Bill 46, "Capital Outlay Amendments", which established a new capital outlay foundation and capital outlay loan programs for school districts. The act replaced the critical and continuing aid and capital outlay foundation programs previously utilized for many years as the state's contribution programs for school district building aid.

        The new act also provides for capital outlay bonding, construction, renovation, and debt service. In addition, a school building revolving account was established. The total appropriation of $26,358,000 was provided for the new programs with 20 percent of the funding designated for the emergency school building needs program. The emergency school building needs program is phased out by the end of FY 2001. The legislative appropriation for the new capital programs provided an increase in Uniform School Funds of $12,483,600 over the FY 1996 Uniform School Fund appropriations.

    SCHOOL BUILDING AID PROGRAMS
    FY 1996
    FY 1997 Difference
    A. Critical and Continuing Sch.Bldg. Aid
    1. Uniform School Fund $8,574,400 (100.0%)
    2. Mineral Lease Fund 4,483,600 (100.0%)
    Sub Total Critical and Continuing Aid Program $13,058,000 (100.0%)
    B. Capital Outlay Equalization
    1. Uniform School Fund $5,300,000 $21,086,400 297.9%
    2. Local Levy 5,758,000 (100.0%)
    Sub Total Capital Outlay Equalization Program $11,058,000 $21,086,400 90.7%
    C. Emergency Building Fund $5,271,600
    Total School Building Aid Programs $24,116,000 $26,358,000 9.3%

    State Office of Education

        The Utah State Office of Education was appropriated $210,000 additional funding. They received $110,000 to fund the Centennial High School Principal and one staff member. The Centennial High School will use modern technology to offer high school classes to students throughout the state. The students who pass the courses will receive high school credit for the classes. The State Office will use $100,000 to fund a statewide public awareness campaign for Applied Technology Education.

    Office of Rehabilitation Services

        The Office of Rehabilitation Services was appropriated a $1,402,300 increase in Uniform School Fund revenue. This increase was appropriated for:

    • Growth in the number of clients being served - $630,300.
    • The operation of the Regional Access Centers - $174,000.
    • To hire a Youth Specialist at the Deaf Center - $44,600.
    • Compensation and retirement - $553,400.

        They also received an appropriation of $144,100 of one-time Uniform School Fund revenue. These one-time funds will be used to fund the purchase of Assistive Technology Devices and the operation of the Governor's Committee on Employment of People with Disabilities. House Bill 94, "Assistive Technology Services" appropriates a total of $200,000, with $80,000 coming from the General Fund and $120,000 coming from the Uniform School Fund, to the State Board of Education for the Office of Rehabilitation Services to fund the activities of the Utah Center for Assistive Technology.

    Utah Schools for the Deaf and the Blind

        The Utah Schools for the Deaf and the Blind (USDB) received an appropriation increase of $1,120,700 in Uniform School Funds of which $800,000 comes from one-time Uniform School Fund revenue. This funding increase includes $54,400 for the Deaf Mentor Program. This will be a new program at the schools in FY 1997. It is designed to teach preschool deaf children and their families how to communicate more effectively with sign language. The schools also received $800,000 for the Dual Sensory Impaired Program. In FY 1996 this program was started at the State Office of Education serving dual sensory impaired children 0 to age 5. For FY 1997 the Dual Sensory Impaired Program will be moved to Utah Schools for the Deaf and the Blind and given funds to enhance the education of all Dual Sensory Impaired students 0 to age 21 throughout the State of Utah. Utah Schools for the Deaf and Blind received a budget increase of $200,000 of one-time Uniform School Fund revenue to enhance their current visually impaired and hearing impaired educational programs. Utah Schools for the Deaf and the Blind was also appropriated $66,300 to pay for fixed costs that would increase in FY 1997. Most of this increase will be used to fund the increased cost expected to come in transportation.

        The Legislature also appropriated funding to Utah Schools for the Deaf and the Blind to pay for the teachers step and lane changes as part of the pay plan. The schools also received funding for a salary and benefits adjustment for parent infant advisors.

    Educational Contracts

        The Educational Contracts furnish educational services to the Developmental Center in American Fork, the State Hospital Youth Center in Provo, and to Corrections Institutions in Draper, Gunnison and Cedar City. Each of the educational contracts received a 4 percent cost-of-living increase which equaled a total of $163,000. This increase will pay for salary increases as well as other fixed costs that will increase due to inflation. In addition to this, the Corrections Education contract also received an additional $110,000 to fund an increase in the number of inmates that will be able to participate in the program.

    Child Nutrition

        The total budget for the Child Nutrition programs for FY 1997 is $76,961,500, which provides for the overall administration and implementation of the school lunch programs. The funding provides for free and reduced price meals for those who qualify. This budget primarily consists of federal funds (87 percent). It also receives funding from the liquor control tax which is deposited in a restricted account. This account will provide approximately $9,700,000 in FY 1997 while the federal funds will provide approximately $67,000,000 and the Uniform School Fund $261,500.

    Applied Technology Education

        The 1996 Legislature considered all Applied Technology Budget items separate from the rest of the public education budget and in coordination with the higher education appropriations subcommittee. This change was formalized into law by House Bill 32 which states: " The Legislative Public Education Appropriations and Higher Education Appropriations Subcommittees shall hold annual joint meetings to review and discuss the funding of applied technology education programs in the public and higher education systems."

        Funding for Applied Technology programs in public education was increased significantly. The Legislature appropriated $93,092,049 for all applied technology programs in public education. This includes $76,528,249 of Uniform School Fund and property tax for an increase in state and local funds of $11,249,049 or 17.2 percent over FY 1996 base. Of the total appropriation, however, $7,900,000, is one-time money to be used for one-time projects.

        In addition to the committee structure changing, the Legislature also changed the way the Applied Technology Centers and Service Regions will be funded. The five Applied Technology Centers were divided into separate line items and a new line item called Applied Technology Education Development was created. No ATE region or ATC directly received any funds in FY 1997 to expand any programs. All new money for program growth was provided in the ATE Development line item.

        The Legislature appropriated $2,000,000 to the ATE Development line item for this expansion. This line item is to be used for "applied technology secondary and adult non-credit programs in the nine applied technology regions in Utah. Each funded program must be part of a regional master plan approved by the Joint Liaison Committee. In addition, these funds shall be distributed according to performance and productivity measures to be developed and adopted by the Joint Liaison Committee no later than May 1, 1996." Only $400,000 of this program was funded with ongoing funds.

        The Legislature did appropriate $600,000 to Ogden/Weber ATC, Bridgerland ATC, and Sevier Valley ATC for Operations and Maintenance funding for new buildings.

        Custom Fit programs also received significant infusion of one-time money. In addition to the base of $2,010,100, they received $900,000 of one-time money for FY 1997.

        The Legislature also funded new equipment for school districts and all nine ATE regional programs. The school districts received $1,000,000 of one-time funds for equipment and the nine regions received $2,700,000.

        The school districts ATE programs contained in the Minimum School Program were expanded dramatically also. Including the $1,000,000 for equipment and another $1,500,000 of one-time money for program growth, the total allocation for ATE programs in the 40 school districts grew by $4,313,749 from the FY 1996 base of $39,653,200. This includes standard growth for enrollment increases as well as a four percent WPU increase and the retirement rate adjustment.