Compendium of Budget Information for the 2010 General Session

Public Education
Appropriations Subcommittee

Function

Article 10, Section 3 of the Utah Constitution states 'The general control and supervision of the public education system shall be vested in a State Board of Education.' Further, the Constitution reads 'The State Board of Education shall appoint a State Superintendent of Public Instruction who shall be the executive officer of the board.' The Board and its appointed State Superintendent administer the various operating programs and divisions supporting Utah's public education system. These programs and divisions include the Minimum School Program (MSP); School Building Program; Utah State Office of Education (USOE); Educator Licensing; Utah Charter School Board; Utah State Office of Rehabilitation (USOR); Utah Schools for the Deaf and the Blind (USDB); Child Nutrition Programs; Fine Arts Outreach; Science Outreach; and Education Contracts.

The State Board adopted the following mission and vision statements to guide its role in overseeing Utah's education system. "The Utah State Board of Education will fulfill its constitutional and statutory responsibilities by establishing policies that promote excellence in learning for all students. The Board will provide leadership, vision, advocacy, so that all students have educational opportunities to meet their potential and achieve proficiency." Further, the Board's Vision Statement reads, 'We see Utah as a place where all children are of infinite value and the education of each child is our most pressing responsibility' (Utah State Board of Education, Vision Statement, Mission Statement, and Goals).

The Board consists of 15 members, representing 15 voting districts. The State Board of Regents which governs the State's higher education system appoints two Regents to participate as non-voting members of the State Board of Education. Accordingly, two members of the State Board of Education participate as non-voting members of the State Board of Regents. The operating budget for the State Board of Education may be found in the State Office of Education line item.

Funding Detail

The Utah State Constitution created the Uniform School Fund (USF) to support the State's education system. Personal income tax provides the majority of USF revenue. Historically, over 85 percent of USF revenue comes from the Personal Income Tax. The remaining USF revenue sources include the Corporate Franchise Tax and Corporate Income Tax.

The Education Fund was established during the 2006 General Session of the Legislature. House Bill 294 stated that the 'Education Fund shall receive all revenues from taxes on intangible property or from a tax on income and shall be designated for public and higher education' (H.B. 294, 2006 General Session). The Education Fund and the General Fund are the two major revenue funds supporting state expenditures.

State funds supporting the public education system come from the Uniform School Fund (USF). The USF is a special revenue fund that 'accounts for all revenues that are required by law to be expended for the public school programs of the state' (UCA 51-5-4). Revenues supporting the Uniform School Fund are appropriated from the Education Fund.

Appropriations from the Uniform School Fund are restricted to state public (K-12) education agencies, school districts, or other state programs providing education related services. Historically, the USF has contributed approximately 73 percent of the total revenue that supports the state appropriated public education budget. The other major revenue sources include the Local Property Tax, which contributes approximately 14 percent of the total revenue and Federal Funds contribute about 11 percent. Other minor revenue sources contribute the remaining 2 percent to the budget. School districts and charter schools have additional revenues available to them outside the state appropriated budget. For school districts, these additional revenue sources are generated through levying local property taxes.

Three main expenditure categories comprise Utah's public education system. The largest expenditure program in the State budget is the Minimum School Program (MSP). The MSP has total expenditures exceeding $3 billion and supports the State's school districts and charter schools. In addition to the MSP, which supports school district operations, the Legislature provides funding for the School Building Program. The School Building Program helps support school building construction or renovation in the districts. Finally, the Public Education Agencies represent programs that support the education and development of students, as well as, special programs for the state's disabled populations. Agency programs include the State Office of Education, Educator Licensing, State Office of Rehabilitation (budget heard in Commerce & Workforce Services Subcommittee), Schools for the Deaf and Blind, Child Nutrition Programs, Fine Arts Outreach, Science Outreach, and Education Contracts.

Sources of Finance	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$0	$0	$10,900,000	$2,312,500	$2,312,500
General Fund, One-time	$2,585,900	$7,600,000	($8,500,000)	$1,090,600	$0
Uniform School Fund	$48,601,000	$52,042,800	$59,146,800	$57,702,700	$55,432,200
Uniform School Fund, One-time	$3,846,000	$12,933,800	$2,546,000	$6,159,800	$2,700,000
Federal Funds	$339,393,000	$340,160,200	$339,840,500	$366,796,100	$345,787,600
Dedicated Credits Revenue	$27,573,300	$30,304,200	$32,563,100	$34,729,800	$29,722,000
Federal Mineral Lease	$2,896,200	$912,100	$3,187,100	$3,458,700	$846,400
Restricted Revenue	$0	$0	$0	$1,206,600	$0
GFR - Land Exchange Distribution Account	$0	$0	$394,000	$277,200	$302,400
GFR - Substance Abuse Prevention	$494,100	$494,500	$495,900	$0	$494,500
USFR - Interest and Dividends Account	$80,000	$81,900	$283,300	$0	$409,700
USFR - Professional Practices	$226,100	$86,100	$1,434,800	$0	$1,466,700
Transfers	$805,100	$3,674,200	$5,310,800	$7,893,900	$5,341,900
Transfers - Child Nutrition	($394,600)	$0	$0	$0	$0
Transfers - Health	$2,224,800	$0	$0	$0	$0
Transfers - Interagency	$776,300	$725,500	$0	$0	$0
Transfers - State Office of Education	$1,165,900	$0	$0	$0	$0
Beginning Nonlapsing	$11,156,400	$13,712,300	$23,864,500	$17,477,300	$14,885,600
Closing Nonlapsing	($13,849,400)	($23,859,300)	($24,233,100)	($16,269,500)	($14,303,800)
Lapsing Balance	($15,700)	($100,000)	($405,700)	($379,100)	($156,600)
Total	$427,564,400	$438,768,300	$446,828,000	$482,456,600	$445,241,100

Line Items	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
State Office of Education	$260,383,100	$263,687,600	$267,047,300	$285,336,600	$256,168,800
USOE - Initiative Programs	$0	$0	$0	$0	$8,259,500
State Charter School Board	$10,568,400	$10,190,600	$5,353,700	$5,521,900	$5,690,800
Educator Licensing	$0	$938,800	$1,127,500	$1,116,000	$1,310,100
Child Nutrition	$124,147,900	$129,156,500	$135,609,400	$152,274,400	$136,072,200
Fine Arts and Sciences	$3,309,000	$0	$0	$0	$0
Fine Arts Outreach	$0	$2,631,100	$3,103,600	$3,066,000	$2,786,800
Educational Contracts	$3,854,800	$3,854,800	$3,854,800	$3,700,600	$3,178,300
Utah Schools for the Deaf and the Blind	$24,781,400	$26,457,400	$28,526,900	$28,692,300	$29,454,200
Science Outreach	$0	$1,339,400	$1,687,400	$1,998,100	$1,709,400
USDB - Institutional Council	$519,800	$512,100	$517,400	$750,700	$611,000
Total	$427,564,400	$438,768,300	$446,828,000	$482,456,600	$445,241,100

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$36,344,300	$39,661,800	$43,306,800	$43,961,800	$46,587,500
In-state Travel	$763,000	$746,900	$816,800	$704,000	$859,600
Out-of-state Travel	$302,100	$386,200	$434,300	$292,100	$371,300
Current Expense	$21,615,900	$24,533,300	$25,758,100	$34,721,200	$20,114,800
DP Current Expense	$1,861,000	$1,173,300	$853,800	$1,189,500	$816,000
DP Capital Outlay	$12,800	$124,900	$265,100	$466,700	$265,100
Capital Outlay	$11,000	$93,100	$22,500	$93,400	$17,000
Other Charges/Pass Thru	$366,654,300	$372,048,800	$375,370,600	$401,027,900	$376,209,800
Total	$427,564,400	$438,768,300	$446,828,000	$482,456,600	$445,241,100

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	635.2	638.1	641.0	654.3	645.5
Vehicles	70	70	70	70	70

Subcommittee Table of Contents