Compendium of Budget Information for the 2010 General Session

Public Education
Appropriations Subcommittee
Subcommittee Table of Contents

Agency: MSP - Related to Basic Programs

Line Item: Related to Basic Programs

Function

Related to Basic Programs compliment the general educational services provided through the Basic School Program by allocating revenue to school districts and charter schools for employee social security and retirement costs. Also, the Related to Basic Programs provides school districts with funding to support to and from pupil transportation costs (statute excludes charter schools from receiving state pupil transportation funding). Historically, the appropriations for Social Security & Retirement and To-and-From School Pupil Transportation have increased each year with adjustments for student enrollment growth and the percent change in the value of the WPU.

Funding Detail

Sources of Finance
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Uniform School Fund $0 $0 $404,743,916 $171,934,014 $79,554,696
Uniform School Fund, One-time $0 $0 $0 $23,578,100 $169,979,600
American Recovery and Reinvestment Act $0 $0 $0 $185,581,800 $112,794,200
Total
$0
$0
$404,743,916
$381,093,914
$362,328,496
 
Programs:
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Social Security and Retirement $0 $0 $333,315,119 $306,147,049 $296,181,631
To and From School - Pupil Transportation $0 $0 $70,928,797 $74,446,865 $65,646,865
Guarantee Transportation Levy $0 $0 $500,000 $500,000 $500,000
Total
$0
$0
$404,743,916
$381,093,914
$362,328,496
 
Categories of Expenditure
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Other Charges/Pass Thru $0 $0 $404,743,916 $381,093,914 $362,328,496
Total
$0
$0
$404,743,916
$381,093,914
$362,328,496
Subcommittee Table of Contents

Program: Social Security and Retirement

Function

The Social Security and Retirement Program compensates school districts and charter schools for some of the Social Security and Retirement costs associated with the Basic School Program (WPU driven programs). The amount of revenue required to support Social Security and Retirement costs in the Basic School Program is determined by formula based on the number of WPUs adopted by the Legislature.

Formula - Revenue appropriated to school districts and charter schools for Social Security and Retirement is distributed proportionately based on current year Weighted Pupil Units. Statutory provisions provide for changes in the amount of revenue appropriated to support the Social Security and Retirement Program based on student growth, the percent increase to the value of the WPU, and any changes to the retirement rate established by the Utah Retirement System.

Statutory Authority

The following statute governs State support for the Social Security and Retirement program.

  • UCA 53A-17a-125 - provides statutory detail for the distribution formula detailed above. Further, the statute provides for employee and employer contribution rates based on a contributory or non-contributory program.

Funding Detail

The Social Security and Retirement program became the primary vehicle for delivering budget reductions in FY 2009 and FY 2010. Because funding is distributed on a WPU basis, reductions to school districts and charter schools is equitable based on their total number of WPUs. The reductions to the program in FY 2009 and FY 2010 did not remove the obligation of school districts and charter schools to pay retirement and social security costs of their employees, but reallocate funds internally to pay for these obligations.

Sources of Finance
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Uniform School Fund $0 $0 $333,315,119 $96,987,149 $13,407,831
Uniform School Fund, One-time $0 $0 $0 $23,578,100 $169,979,600
American Recovery and Reinvestment Act $0 $0 $0 $185,581,800 $112,794,200
Total
$0
$0
$333,315,119
$306,147,049
$296,181,631
 
Categories of Expenditure
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Other Charges/Pass Thru $0 $0 $333,315,119 $306,147,049 $296,181,631
Total
$0
$0
$333,315,119
$306,147,049
$296,181,631
Subcommittee Table of Contents

Program: To and From School - Pupil Transportation

Function

To and From School - Pupil Transportation provides revenue to assist the State's 40 school districts in transporting students to and from school each day. 'These funds are to be used to transport students to and from school who are eligible for bussing based on the distance they live from school, and to pay for equipment and administrative expenses' (USOE School Finance Reference Manual, 2000-2001). In addition to providing direct student transportation services, program funding is used by school districts to pay for 'in lieu of' transportation expenses as an alternative to busing some students. Program funding also supports the establishment of guidelines for personnel training, as well as guidelines for bus routing and mapping.

Program funding also supports the pupil transportation program at the Utah Schools for the Deaf and Blind. Each year, the Legislature establishes in statute the amount of pupil transportation funding for the schools.

Formula - State revenue is distributed to the school districts based on the Transportation Finance Formula. This formula includes the statutory required items, namely, 'an allowance per mile for approved bus routes; an allowance per hour for approved bus routes; and an annual allowance for equipment and overhead costs based on approved bus routes and the age of the equipment' (UCA 53A-17a-127). School districts only receive state revenue for transporting eligible students as defined by statute. Based on available state revenues, statute requires that the state contribute 85 percent of the funding toward paying for approved pupil transportation costs in the school districts. School districts must use other available revenues (either unrestricted state revenues or local property tax revenue) to pay the difference between the state allocation and actual program cost.

The Utah State Office of Education (USOE) developed the Transportation Finance Formula to govern the distribution of State To-and-From School transportation funds. The formula is divided into two schedules and the total state revenue received by a school district is the sum of these two schedules. Schedule A represents the portion of state revenue received by a school district that is ‘formula driven.' School districts receive these funds by transporting eligible students to and from school. Schedule A contains four components. These components, when summed, determine the level of funding a school district receives for this portion of the program. Each of the Schedule A components are detailed below: (USOE School Finance and Statistics, Transportation Finance Formula, July 2006)

  1. Time Allowance - school districts are paid a rate that 'reflects the state average cost per minute for driver salaries, retirement, social security and health and accident insurance.'

  1. Mileage Allowance - school districts are paid a rate that 'reflects the state average cost per mile for bus fuel, lubrication, tires/tubes, and repair parts.'

  1. Administration Allowance - school districts are provided funds for the 'salaries and benefits of district transportation administrators. The calculation for administrative allowance consists of three parts: an allowance for pupils transported, and allowance for route minutes, and an allowance for route miles.'

Each of the components listed above has a reimbursement rate that governs the distribution of Schedule A revenue. Prior to FY 2010, the Transportation Finance Formula included a component that reimbursed school districts for the cost of depreciation of school buses. The Legislature removed this provision from the formula in H.B. 2 "Minimum School Program Budget Amendments" (2009 General Session). As a result of this change, funding for To & From Pupil Transportation was reduced by $8.8 million.

Schedule B is much less complex than Schedule A. Essentially, school districts receive Schedule B revenue through application. School districts may 'request state reimbursement for miscellaneous, non-formula related expenses incurred in transporting eligible students' (USOE School Finance and Statistics, Transportation Finance Formula, July 2006). Approximately 2.5 percent of the total revenue allocated to the To and From Program is distributed through Schedule B.

Statutory Authority

The statutory authority for Pupil Transportation rests primarily in three statutes. These statutes provide for the funding and governance structure for pupil transportation in the State.

  • UCA 53A-17a-104(o)(p) - Provides the annual appropriation supporting pupil transportation to and from school and the guarantee transportation levy. This statute also details the amount of revenue allocated to the Utah Schools for the Deaf and Blind to support related transportation activities.

  • UCA 53A-17a-126 - Provisions detail how funding appropriated in UCA 53A-17a-104 are to be distributed among the school districts and the Utah Schools for the Deaf and Blind. The statute requires a pro-rata reduction among revenue recipients should insufficient funds be appropriated by the Legislature to cover the total cost of pupil transportation in the state.

  • UCA 53A-17a-127 - Details the eligibility requirements to receive state-supported pupil transportation funds and establishes a state Transportation Advisory Committee. Eligible students must reside 1 ˝ miles from school (grades K-6) or 2 miles from school (grades 7-12) to qualify for state transportation funding.

Administrative Rule R277-600 was passed by the State Board of Education. The rule provides administrative procedures associated with the governance of Pupil Transportation.

Funding Detail

Transportation funding for the Utah Schools for the Deaf and the Blind (USDB) is also appropriated through the To and From School program. Of the total appropriation listed below, approximately $2.5 million is allocated to USDB. The remaining appropriation is allocated to school districts based on the Transportation Finance Formula.

Sources of Finance
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Uniform School Fund $0 $0 $70,928,797 $74,446,865 $65,646,865
Total
$0
$0
$70,928,797
$74,446,865
$65,646,865
 
Categories of Expenditure
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Other Charges/Pass Thru $0 $0 $70,928,797 $74,446,865 $65,646,865
Total
$0
$0
$70,928,797
$74,446,865
$65,646,865
Subcommittee Table of Contents

Program: Guarantee Transportation Levy

Function

The Guarantee Transportation Levy assists a minority of small school districts in providing pupil transportation services not covered through the Transportation Finance Formula. The program also assists these districts with the added transportation costs associated with remote locations and small student populations.

A district can levy a tax to purchase new buses, provide special busing for hazardous walking areas, and fund transportation costs associated with field and activity trips. A local school board qualifies if it levies at least the minimum special transportation tax rate of 0.0002 (FY 2003), and the levy imposed by the district is not enough to generate at least 85% of the state average cost per mile for the purposes listed above.

Statutory Authority

Please refer to the statutory provisions and State Board of Education rules identified in the Pupil Transportation - To and From School Program.

Funding Detail

State revenue supporting the Guarantee Transportation Levy has remained stable for the past nine years at $500,000 annually.

Sources of Finance
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Uniform School Fund $0 $0 $500,000 $500,000 $500,000
Total
$0
$0
$500,000
$500,000
$500,000
 
Categories of Expenditure
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Other Charges/Pass Thru $0 $0 $500,000 $500,000 $500,000
Total
$0
$0
$500,000
$500,000
$500,000
Subcommittee Table of Contents