FY 2016 Appropriation

The Minimum School Program (MSP) is the largest budget program annually appropriated by the Legislature and supports the operation of all public schools in Utah. The MSP provides the primary revenue source for Utah's school districts and charter schools, collectively known as Local Education Agencies (LEA). Utah's LEAs currently enroll more than 612,000 students. Program revenues support educational activities in all grades including pre-kindergarten through the 12th grade. In most instances, state revenue distributed through the MSP to the public schools is conducted on a formula basis.

Three major programs collectively comprise the MSP: the Basic School Program, the Related to Basic School Program, and the Voted & Board Local Levy programs. In addition to these programs, the MSP accounts for other one-time appropriations made by the Legislature for distribution to school districts and charter schools.

Funding History

Funding Issues

1 Percent WPU Value Increase

It costs approximately $26 million for each 1 percent increase or decrease in the WPU Value. Programs impacted include: The Basic School Program (all WPUs), Pupil Transportation, Concurrent Enrollment, Enhancement for At-Risk Students, Youth-in-Custody, Enhancement for Accelerated Students in the Related to Basic School Program.

At Risk Funding

Funding will provide for increased interventions for students learning English as a second language, students living in poverty, homeless stduents, and students underperforming on state assessments. Included in this request is $600,000 to fund the MESA program (math/science programs for girls and minority students).

Beverley Taylor Sorenson Elementary Arts

Funding will increase the reach of the program into additional elementary schools. Preliminary estimates indicate that the additional funding will allow approximately 173 additional elementary schools to participate and serve an additional 140,000 students. This will allow approximately 70 percent of elementary schools to participate in the program.

Dual Immersion Growth

Additional funding will provide for the continuation of dual immersion programs into secondary schools based on language instruction from K-6 schools. Also, funding will allow for an expansion of 22 additional elementary schools to participate in the program.

Enrollment Growth

Total enrollment in the public education system is projected to increase by 7,951 students in FY 2016, with a total enrollment of 630,104. Additional students in the system increases the cost to certain programs as designated by statute or legislative precedent. Adjustments are made in the following programs based on consensus enrollment and WPU estimates: Basic School Program: $24,284,600 Funds an additional 8,380 WPUs in FY 2016. Related to Basic School Program: $10,698,800 Provides a 1.3% increase to the following programs: Pupil Transportation, Enhancement for At-Risk Students, Youth-in-Custody, Adult Education, Enhancement for Accelerated Students, and Concurrent Enrollment. Provides an increase of $4,459,600 to the Local Replacement and $83,200 to the Administrative Cost programs for charter schools. Finally, increases th eamount for the Educator Salary Adjustment by $3,429,500 to account for additional teachers hired by LEAs in fall 2014. Voted & Board Local Levy: $23,023,600 Adjusts funding levels to provide the state guarante rate for all qualifying WPUs. Increases the state guarantee rate as provided in statute from $27.92 per WPU to $30.11 per WPU. The total local property tax revenue contribution to the cost of the Basic School Program is expected to increase by $8,462,600 in FY 2016. This amount works as an off-set to the total increased cost of the Basic School Program above.

Enrollment Growth - Charter School Pupil Accounting Extension

The Governor recommends continuing to determine charter school WPUs by using the higher of Prior-Year Plus Growth or Fall Enrollment methodology for one year. The statute that allows the "higher of" option expires at the end of FY 2015. This will increase the number of WPUs in the Basic School Program by 1,942.

Increased Interest & Dividends Revenue

Additional revenue in the Interest & Dividends Account that will be distributed to public schools.

Professional Development: At Risk Math

Funding will provide professional development services for teachers in grades 4-8 in mathematics content and pedagogy. Students at-risk of failing will be supported with learning interventions.

Special Ed Intensive Services

Provides additional funding to reimburse LEAs for students that cost more than 3 times the state average. LEAs must apply to the USOE for funding and demonstrate that they have expended sufficient funding to receive a reimbursement. LEAs can receive additional reimbursement for costs over $20,000 a year for a student. Currently, the state has approximately $1,225,000 to fund reimbursements, with $1,000,000 coming from Federal IDEA and the remaining from state the state appropriation for Special Education State Programs. With this funding, LEAs are reimbursed for 12 percent of their costs in excess of the base threshold. Estimates indicate that to reimburse for all costs over the threshold would cost approximately $28 million. An additional $10 million will reimburse approximately 40 percent of costs.

Targeted Professional Learning Initiative

Funding to provide up to three professional development days, at the rate of $8 million per day. Funding will be distributed to LEAs using a Base Plus formula to provide for an equitable distribution. Schools will be required to apply for funding through a competitive grant process that includes an accountability and evaluation plan.

Teacher Salary Supplement Program

Based on current applications, the program does not have sufficient funding to provide the full salary supplment to all qualifying math and science teachers in the current year. The program has a total of $5.42 available with $6.44 million requested. Based on USOE growth estimates, an additional $1.5 million ongoing may be needed to fund requests in FY 2016.

Teacher Supplies and Materials

Provides funding to reimburse teachers for out of pocket expenditures on classroom supplies. The program has been funded for decades from one-time sources. The subcommittee recommends that ongoing funds be appropriated to support the program. Teachers receive a varying amount of funding based on grades taught and longevity. New educators teaching in lower grades receive more than veteran educators teaching in the higher grades. The subcommittee passed intent language directing the State Board of Education on how to distribute funding. This is the same language that has been included with the appropriation for several years.

Transportation Initiative

Provide funding to LEAs to replace dirty-diesel school buses with new alternative fuel school buses. Funding will also assist in upgrading fueling infrastructure and school shop retrofits with a 50 percent match.
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $3,597,924,400 from all sources for Minimum School Program. This is a 7.1 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $2,753,960,000 from the General/Education Funds, an increase of 3.4 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Beverley Taylor Sorenson Elementary Arts$2,000,000$2,500,000
OngoingOne-TimeFinancing Source
$2,000,000$0Education Fund
$0$2,500,000Education Fund, One-time
Funding will increase the reach of the program into additional elementary schools. Preliminary estimates indicate that the additional funding will allow approximately 173 additional elementary schools to participate and serve an additional 140,000 students. This will allow approximately 70 percent of elementary schools to participate in the program.
Charter School Finance Amendments ($2,800,000)$0
OngoingOne-TimeFinancing Source
($2,800,000)$0Education Fund
Enactment of this legislation likely will not materially impact state revenue. Enactment of this bill may reduce the state cost for the Charter School Local Replacement Program by $2.8 million ongoing from the Education Fund. The collective contribution of local school districts to the cost of the program may increase from approximately $14.9 million to $17.7 million in FY 2016.
Civics Education - State Capitol Field Trips$0$150,000
OngoingOne-TimeFinancing Source
$0$150,000Education Fund, One-time
Provide grants to schools to bring students to tour the capitol building.
Dual Immersion Growth$600,000$0
OngoingOne-TimeFinancing Source
$600,000$0Education Fund
Additional funding will provide for the continuation of dual immersion programs into secondary schools based on language instruction from K-6 schools. Also, funding will allow for an expansion of 22 additional elementary schools to participate in the program.
Enrollment Growth$57,097,500$3,430,000
OngoingOne-TimeFinancing Source
$48,634,900$0Education Fund
$0$3,430,000Education Fund, One-time
$8,462,600$0Local Revenue
Total enrollment in the public education system is projected to increase by 7,951 students in FY 2016, with a total enrollment of 630,104. Additional students in the system increases the cost to certain programs as designated by statute or legislative precedent. Adjustments are made in the following programs based on consensus enrollment and WPU estimates: Basic School Program: $24,284,600 Funds an additional 8,380 WPUs in FY 2016. Related to Basic School Program: $10,698,800 Provides a 1.3% increase to the following programs: Pupil Transportation, Enhancement for At-Risk Students, Youth-in-Custody, Adult Education, Enhancement for Accelerated Students, and Concurrent Enrollment. Provides an increase of $4,459,600 to the Local Replacement and $83,200 to the Administrative Cost programs for charter schools. Finally, increases th eamount for the Educator Salary Adjustment by $3,429,500 to account for additional teachers hired by LEAs in fall 2014. Voted & Board Local Levy: $23,023,600 Adjusts funding levels to provide the state guarante rate for all qualifying WPUs. Increases the state guarantee rate as provided in statute from $27.92 per WPU to $30.11 per WPU. The total local property tax revenue contribution to the cost of the Basic School Program is expected to increase by $8,462,600 in FY 2016. This amount works as an off-set to the total increased cost of the Basic School Program above.
Enrollment Growth - Charter School Pupil Accounting Extension$5,771,700$0
OngoingOne-TimeFinancing Source
$5,771,700$0Education Fund
The Governor recommends continuing to determine charter school WPUs by using the higher of Prior-Year Plus Growth or Fall Enrollment methodology for one year. The statute that allows the "higher of" option expires at the end of FY 2015. This will increase the number of WPUs in the Basic School Program by 1,942.
Flexible Allocation$2,800,000 ($2,800,000)
OngoingOne-TimeFinancing Source
$2,800,000$0Education Fund
$0 ($2,800,000)Education Fund, One-time
Savings from the enactment of HB0119. Appropriated ongoing, but backed-out one-time in FY 2016.
Increased Interest & Dividends Revenue$2,149,300$0
OngoingOne-TimeFinancing Source
$2,149,300$0Interest and Dividends Account
Additional revenue in the Interest & Dividends Account that will be distributed to public schools.
K-12 Digital Literacy$0$5,000,000
OngoingOne-TimeFinancing Source
$0$5,000,000Education Fund, One-time
Funding to improve instruction in digital/computer literacy, including, professional development for teachers, introducation of keyboarding in elementary schools, introducation of coding to elementary students, increase computer lab time, and re-align digital literacy courses.
Local Revenue used in MSP Formulas$12,456,100$0
OngoingOne-TimeFinancing Source
$12,456,100$0Local Revenue
Estimated additional property tax revenue generated by local school districts in FY 2016 and factors into state funding formulas for the Voted & Board Local Levy Program. The state does not collect this revenue, however the allocation of state funding is dependent on the amount of revenue each school district generates per WPU.
Matching Fund for School Nurses$120,000$0
OngoingOne-TimeFinancing Source
$120,000$0Education Fund
Provide matching grants to schools to hire school nurses. Schools must provide a match of 50 percent of the grant amount to receive funding.
MSP Balances Transferred to the Education Fund$0 ($8,000,000)
OngoingOne-TimeFinancing Source
$0 ($8,000,000)Transfers
No Description
MSP Nonlapsing - Estimated Available Balance$0$8,000,000
OngoingOne-TimeFinancing Source
$0$40,835,500Beginning Nonlapsing
$0 ($32,835,500)Closing Nonlapsing
No Description
Property Tax Equalization Amendments$56,250,000$0
OngoingOne-TimeFinancing Source
($75,000,000)$0Education Fund
$56,250,000$0EFR - Minimum Basic Growth Account
$75,000,000$0Local Revenue
Enactment of this legislation could increase budgeted local revenue to the Minimum School Program by $75,000,000 annually. Growth in local revenue decreases Education Fund amounts used to equalize the Basic School Program. This bill transfers the Education Fund savings into a newly created Minimum Basic Growth Account. Enactment of this legislation could increase the local property tax component of the Basic School Program by $75,000,000 annually. The result is a decrease in Education Fund expenditures used to equalize the Basic School Program equal to $75,000,000 annually. The Education Fund expenditure decrease is transferred to a newly created Minimum Basic Growth Account, which is then expended using the Voted and Board Levy, Capital Foundation and Enrollment Growth formulas.
School Library Books and Electronic Resources$300,000$750,000
OngoingOne-TimeFinancing Source
$300,000$0Education Fund
$0$750,000Education Fund, One-time
Provide grants to public schools to purchase books and electronic resources (books, periodicals, journals, etc.) for school library/media centers.
Special Ed Intensive Services$1,001,800$2,000,000
OngoingOne-TimeFinancing Source
$1,001,800$0Education Fund
$0$2,000,000Education Fund, One-time
Provides additional funding to reimburse LEAs for students that cost more than 3 times the state average. LEAs must apply to the USOE for funding and demonstrate that they have expended sufficient funding to receive a reimbursement. LEAs can receive additional reimbursement for costs over $20,000 a year for a student. Currently, the state has approximately $1,225,000 to fund reimbursements, with $1,000,000 coming from Federal IDEA and the remaining from state the state appropriation for Special Education State Programs. With this funding, LEAs are reimbursed for 12 percent of their costs in excess of the base threshold. Estimates indicate that to reimburse for all costs over the threshold would cost approximately $28 million. An additional $10 million will reimburse approximately 40 percent of costs.
Teacher Salary Supplement Program$1,500,000$1,650,000
OngoingOne-TimeFinancing Source
$1,500,000$0Education Fund
$0$1,650,000Education Fund, One-time
Based on current applications, the program does not have sufficient funding to provide the full salary supplment to all qualifying math and science teachers in the current year. The program has a total of $5.42 available with $6.44 million requested. Based on USOE growth estimates, an additional $1.5 million ongoing may be needed to fund requests in FY 2016.
Teacher Salary Supplement Program Amendments$53,600$0
OngoingOne-TimeFinancing Source
$53,600$0Education Fund
Enactment of this bill would transfer $13,352,000 in FY 2016 and $18,185,000 in FY 2017 from the Education Fund to the Teacher Salary Supplement Restricted Account. That amount could grow to $42,351,000 in FY 2021. Enactment of this bill could cost $13.4 million in FY 2016 and $18.2 million in FY 2017, growing to $42.4 million in 2021, from the Teacher Salary Supplement Restricted Account for changes in the amount of the salary supplement for eligible teachers and expanded definition of an eligible teacher. The bill would transfer like amounts from the Education Fund to the Teacher Salary Supplement Restricted Account.
Teacher Supplies and Materials$0$6,000,000
OngoingOne-TimeFinancing Source
$0$6,000,000Education Fund, One-time
Provides funding to reimburse teachers for out of pocket expenditures on classroom supplies. The program has been funded for decades from one-time sources. The subcommittee recommends that ongoing funds be appropriated to support the program. Teachers receive a varying amount of funding based on grades taught and longevity. New educators teaching in lower grades receive more than veteran educators teaching in the higher grades. The subcommittee passed intent language directing the State Board of Education on how to distribute funding. This is the same language that has been included with the appropriation for several years.
WPU Value Increase (4%)$104,022,800$0
OngoingOne-TimeFinancing Source
$104,022,800$0Education Fund
It costs approximately $26 million for each 1 percent increase or decrease in the WPU Value. Programs impacted include: The Basic School Program (all WPUs), Pupil Transportation, Concurrent Enrollment, Enhancement for At-Risk Students, Youth-in-Custody, Enhancement for Accelerated Students in the Related to Basic School Program.

Statute

The Minimum School Program is governed by Title 53A, Chapter 17a of the Utah Code.

  • UCA 53A-17a-101 et. seq.-- Sections 101 through 163 provide detail on the Minimum School Program and its various subprograms. Section 102 states that "the purpose of this chapter is to provide a minimum school program for the state in accordance with the constitutional mandate" (UCA 53A-17a-102).

Funding appropriated by the Legislature for education programs included in the MSP is directly distributed to school districts or charter schools. The Utah State Board of Education receives the appropriation and transfers funding to the appropriate education entity using distribution formulas established in statute. Statewide education programs that are not directly distributed to school districts or charter schools (i.e. Request for Proposal Programs, Grants, etc.) are appropriated to the State Board of Education through one of the nine line items for the Utah State Office of Education.

Funding received through the MSP, combined with local property tax revenues and federal funds, assists districts and charters in meeting the expenses of operating the public schools. These expenditures include employee salaries and benefits, class size, school construction and renovation, curriculum, textbooks and supplies, along with a myriad of other educationally-related expenses. Each year, the local boards will determine the level of funding available for each program offered in the district or charter school, as well as the level of employee compensation increases. Compensation issues are determined through local contract negotiations regardless of Legislative funding decisions or increases provided to the overall value of the MSP. 40

Revenue Distribution -- the MSP is designed to distribute state revenue to school districts and charter schools. "To a degree, the Minimum School Program acts as a series of large block grants provided by the state to support local level educational services" (LFA, Minimum School Program Compensation, July 2005). Local boards of education, as well as charter school governing boards, have the discretion and responsibility for allocating funding based on the unique circumstances of the district or charter school. Revenue distributed through the program "is not a plan of expenditure or 'budget' for the LEA [i.e. school district or charter school] to follow" (LFA, Minimum School Program Compensation, July 2005).

Public Education Budget Amendments -- are unique pieces of legislation in comparison with other budgetary acts (bills) passed by the Legislature each year. Passage of the Public Education Appropriations bill often amends or revises codified statute. This allows the Legislature to change statutes governing public education in conjunction with appropriation decisions. It also brings relevant laws into review each legislative session. Included in this bill are other provisions that outline the intent of the Legislature and appropriation of one time funding for certain programs.

MSP Data Consensus - two major data sets significantly impact the overall cost of the MSP. The first is the projected number of students that will enroll in schools across the state. The second is the value of assessed property used to estimate local property tax revenues generated through the Basic Rate to support the MSP.

Each year the Office of the Legislative Fiscal Analyst meets with representatives from the Governor's Office of Management and Budget and the State Board of Education to establish consensus estimates for student enrollments and assessed valuations. This 'Common Data Committee' also includes representatives from the Utah State Tax Commission (when reviewing assessed valuations), the Utah Education Association, and other interested individuals and organizations. Consensus estimates generated through the committee process ensures that each entity uses the same base data throughout the budgeting process.

Enrollment Projections -- the method utilized to project student enrollment has historically provided a relatively accurate basis for determining MSP appropriations. Representatives from the Legislative Fiscal Analyst's Office, the Governor's Office of Management and Budget, and the State Office of Education develop independent enrollment projections each year. The offices use methodologies which include historical trends, district reporting, birth statistics, mortality rates, and any number of other factors to try to estimate student enrollment numbers. Upon the completion of these independent estimates, the offices meet together as the Common Data Committee to reach agreement on a common projection of student enrollment for the coming school year.

Student Enrollments -- a total of 622,153 students enrolled in Utah's public schools for the 2014-15 school year. This was an increase of 1.7 percent over the prior school year. Projections indicate that public schools will enroll approximately 7,951 more students in fall 2015, an increase of 1.3 percent over fall 2014.

Intent Language

HB0002: Item 1

The Legislature intends that the State Board of Education develop minimum program standards, including maximum class size limits in grades K-3, that local education agencies must meet in order to continue to receive Class Size Reduction funding. Including an estimate of the cost necessary to limit class sizes in grades K-3, without impacting class sizes in grades 4-12. The Legislature also intends that the State Board of Education report these standards and estimated costs to the Education Interim Committee and the Public Education Appropriations Subcommittee by October 31, 2015.

HB0002: Item 2

The Legislature intends that the State Board of Education review the Pupil Transportation Allocation Formula and recommend ways to improve the formula to increase efficiency, simplify allocation methodology to school districts, and provide incentives for alternative transportation methods. The Legislature further intends that the State Board of Education report its recommendations to the Education Interim Committee and the Public Education Appropriations Subcommittee by October 31, 2015.

HB0002: Item 2

The Legislature intends that the State Board of Education and State Board of Regents provide joint recommendations on how to ensure that each concurrent enrollment course is taught by a qualified instructor, that credits earned by students count towards major and minor degree requirements at state colleges and universities, and that students are advised on the transferability of credits to private and out of state institutions. The Legislature also intends that these recommendations be reported to the Education Interim Committee and the Public Education Appropriations Committee by October 31, 2015.

The budget for the Minimum School Program is divided into three sections, namely, MSP-Basic School Program, MSP-Related to Basic School Program, and MSP-Voted & Board Leeways. Please refer to these sections for more detail on the budget.

During the 2013 General Session, the Legislature passed House Bill 49 which directs the State Board of Education to "use a voted and board local levy funding balance in the prior fiscal year to increase the value of the state guarantee per weighted pupil unit in the current fiscal year." At the close of FY 2013, the Voted and Board Local Levy programs had a combined balance of $22,627,700. This amount was distributed to participating school districts in FY 2014 and is reflected in the budget detail table below. A lower amount, approximately $5.5 million in balances remaining at the end of FY 2014 will be distributed to participating districts in FY 2015.

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.