Agency: MSP - Related to Basic Programs

Line Item: Block Grant Programs

Background

During the 2001 General Session the Legislature consolidated twenty five categorical programs within the Minimum School Program. The majority of these programs were consolidated into a series of large block grants. The Legislature created three block grants out of fifteen programs and transferred four programs to the Utah State Office of Education budget. The four categorical programs moved to the USOE include Staff Development, Reading Scholarship Program, Regional Service Center Funding, and Contingency Fund. Finally, the Legislature loosened spending requirements for another six programs (these programs are found in the next chapter).

Funding Detail

Program: Local Discretionary

Function

The Local Discretionary Block Grant Program provides revenue to allow the local school district and charter schools to meet locally determined needs. The block grant resulted from several consolidated MSP categorical programs. Four previous categorical programs include the Un-restricted Local Program, Education Technology Initiative, Character Education, and School Nurses. Upon consolidation into the Local Discretionary Block Grant, individual program identities and allocation formulas associated with the categorical programs were removed.

Formula - Consolidation removed former distribution methods and a new distribution formula is based on Regular Basic Program WPUs. The Local Discretionary Block Grant distribution formula requires that 8 percent of the total appropriation be distributed equally among all school districts (with charter schools treated as a single school district) and 92 percent on a proportional Regular Basic Program WPU basis.

Statutory Authority

The following statute governs the Local Discretionary Block Grant Program.

• UCA 53A-17a-123 - requires the State Board of Education to develop a distribution formula that allocates revenues in a fair and equitable manner. The statute also details expenditure limitations placed on school districts and charter schools.

Administrative Rule R277-478 was passed by the State Board of Education. The rule provides administrative procedures associated with the governance of the Local Discretionary Block Grant Program.

Funding Detail

In FY 2008, $21.8 million was allocated to assist school districts and charter schools through this block grant program. The total amount allocated in FY 2009 remained at $21.8 million. The majority of school districts likely report a decrease in Local Discretionary Block Grant funding. Since the formula distributes revenue based largely on a district/charter school's total WPU count, as WPUs increase and revenue remains flat available revenue is spread among a larger WPU base. This in turn decreases the allocation to some district/charter schools while the funding level remains constant.

Program: Intervention for Student Success

Function

The Interventions for Student Success block grant is used to 'improve the academic performance of students who do not meet performance standards as determined by U-PASS [Utah Performance Assessment System for Students] test results; interventions must be consistent with a district plan approved by the local school board, and the plan must specify intended results' (USOE Finance & Statistics, MSP Descriptions, November 2006).

The block grant contains six MSP categorical programs that were designed to help the academic progress of students at the greatest risk of falling behind. Consolidated programs include; Truancy Intervention and Prevention, Incentives for Excellence, Alternative Middle Schools, Reading Initiative, Experimental/Developmental Formula, Local Discretionary Program, and Alternative Language Services. Upon consolidation into the Interventions for Student Success Block Grant, individual program identities and allocation formulas associated with the categorical programs were removed.

Formula - The Interventions for Student Success Block Grant is distributed to school districts and charter schools based on a formula that accounts for district size (student population) and the proportion of English language learners in a school district or charter school. Of the two formula components, 77 percent is distributed based on the total number of WPUs in a district or charter school. Eight percent (of the 77 percent) is distributed equally among school districts (charter schools count as one district). The second component, 23 percent, is distributed based on the proportional number of English language learners.

Statutory Authority

The following statute governs the Interventions for Student Success Block Grant.

• UCA 53A-17a-123.5 - directs the State Board of Education to establish a fair and equitable distribution formula, requires school districts to develop a plan for the expenditure of block grant funds, and provides restrictions on the use of block grant funds.

Administrative Rule R277-478 was passed by the State Board of Education. The rule provides administrative procedures associated with the governance of the Interventions for Student Success Block Grant program.

Funding Detail

In FY 2008, nearly $18 million was allocated to support the programs funded through this block grant. The total amount allocated in FY 2009 increased to over $18.8 million.

Program: Quality Teaching

Function

The Quality Teaching Block Grant is used to 'implement long term professional development plans in both schools and districts; the plans must be approved by the local school board, and each individual school plan must be consistent with the district plan' (USOE Finance & Statistics, MSP Descriptions, November 2006). The program was established during the 2003 General Session to provide school districts with maximum flexibility in the use of their funding as appropriated by the State Legislature.

The Legislature created the block grant by combining the Career Ladder Program with a $10 million increase to provide for two additional professional development work-days. The Career Ladder Program was a categorical program within the MSP. Subsequent action by the Legislature removed $5 million from the block grant (or one extra professional development day).

In FY 2008, the Legislature provided an additional $6.6 million in addition to funding approriated for inflation and student growth. The additional $6.6 million was appropriated to provide for additional professional development time for educators.

Formula - School districts and charter schools receive Quality Teaching Block Grant funds on a formula basis proportional to their prior year Regular Basic WPU allocation and prior year licensed FTE level. Charter schools are treated as one school district. The distribution formula distributes 70 percent of program funds based on prior year WPUs and 30 percent based on prior year licensed FTE levels.

Formula Restrictions - Program funds cannot be used to hire additional staff, to maintain current staffing levels, or to cover administrative costs.

Statutory Authority

The following statute governs the state contribution to the Quality Teaching Block Grant Program.

• UCA 53A-17a-124 - requires the State Board of Education to develop a distribution formula that allocates revenue in a fair and equitable manner. Further the statute requires local school boards to use block grant funds to implement school and district comprehensive, long-term professional development plans.

Administrative Rule R277-478 was passed by the State Board of Education. The rule provides administrative procedures associated with the governance of the Quality Teaching Block Grant Program.

Funding Detail

In FY 2008, over $73.9 million was allocated to support the programs funded through this block grant. The total revenue allocated in FY 2009 increased to over $77.6 million.