Compendium of Budget Information for the 2010 General Session
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| Subcommittee Table of Contents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency: School Building Programs Line Item: School Building Programs Function The School Building Programs assist school districts in the construction or renovation of school facilities and paying debt service. Funding Detail
Program: Capital Outlay Foundation Program Function The Capital Outlay Foundation Program supports 'school districts in capital outlay bonding, facilities construction and renovation, and debt service' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). In order to participate in the program, a school district must levy a Capital Outlay Levy to support capital equipment or capital facilities projects and debt service. 'If the rate is at least 0.002400 per dollar of taxable value, the district qualifies for full funding; if the rate is less than this amount, the district qualifies for funding proportional to the rate as a percentage of 0.002400' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). School districts may use up to 0.000200 of its capital outlay levy for the maintenance of school plants. If this option is exercised, a maintenance of effort equal to at least the dollar amount expended for the preceding year, plus the average annual percentage increase in the district's M & O budget for the current year is required. If a school district elects to issue and sell general obligation bonds to finance its building program, the district must levy a Debt Service tax-which has no ceiling-that will derive at least its general obligation bond principal and interest debt payment annually. The full faith and credit of the school district is pledged. In addition, the State of Utah has placed its full faith and credit behind each school district bond through the School Bond Guarantee Act (53A-28)-a default avoidance program-wherein the State's bonded indebtedness credit rating is extended to each school district. Formula - The state guarantee provides a 'minimum per ADM using available monies in the fund [level of state appropriation] and the assessed valuation per ADM in each school district' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). School Building Revolving Account The School Building Revolving Account provides 'short term loans to both school districts and charter schools for the construction and renovation of school buildings' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). The State Superintendent contracts with school districts to repay monies, with interest, within five years. School districts may use state building monies and/or local revenues to repay loans. Statute requires the State Superintendent to establish a committee to review loan requests made by school districts, and to 'make recommendations regarding approval or disapproval of a loan application. . . . the committee's recommendation shall include: the recommended amount of the loan; the payback schedule; and the interest rate to be charged' (UCA 53A-21-104(4)(a)). Charter Schools - The School Building Revolving Account contains a Charter School Building Subaccount. This subaccount includes funds appropriated by the Legislature, loan repayments, and interest earned off of the subaccount. 'The State Superintendent shall make loans to charter schools . . . To pay for the costs of constructing or renovating charter school buildings' (UCA 53A-21-104). Loans granted under the Charter School Building Subaccount also require committee recommendation similar to the School Building Revolving Account. Funding Detail
Program: Capital Outlay Enrollment Growth Program Function The Enrollment Growth Program was established to 'provide additional support to those school districts which are experiencing the most pressing needs for facilities due to rapid growth' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). In order to qualify for monies under the Enrollment Growth Program, a school district must receive revenue distributed under the Capital Outlay Foundation Program and 'have an average net increase in student enrollment over the prior three years' (USOE Finance and Statistics, School District Tax Levies Descriptions, March 2006). Formula - School districts receive Enrollment Growth Program monies in the same proportion that the district's three-year average net increased enrollment bears to the total three-year net increased enrollment of all the districts which qualify to receive funds under the Enrollment Growth Program. Funding Detail
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