FY 2016 Appropriation

The Necessarily Existent Small Schools (NESS) program assists school districts in operating schools in remote areas of the state and with low student populations. Schools meet necessarily existent standards if "one-way bus travel over Board approved bus routes from the school to the nearest school within the district of the same type requires: students in kindergarten through grade six to travel more than 45 minutes; students in grades seven through twelve to travel more than one hour and 15 minutes" (Utah State Board of Education, R277-445-3). In addition to the distance requirement, schools must not exceed a maximum enrollment threshold established in statute based on the ADM of the school.

School Size Limits -- A necessarily existent small school does not exceed the following ADM thresholds:

  • 160 ADM for elementary schools, (including kindergarten)
  • 300 ADM for one or two-year secondary schools,
  • 450 ADM for three-year secondary schools,
  • 550 ADM for four-year secondary schools,
  • and, 600 ADM for six-year secondary schools.

Application Required -- In order for a school to qualify for necessarily existent status, the school district must apply to the State Board of Education on behalf of the school. "Upon application by each school district, the State Board of Education shall, in conjunction with local school boards, classify particular schools in each district as necessarily existent small schools" (UCA 53A-17a-109 ). Charter schools are not necessarily existent small schools and do not qualify for program funding.

Formula -- Funding is allocated to a school district with qualifying schools on a WPU basis. Program WPUs are determined by "a regression formula based on prior year ADM and school grade span" (USOE Finance & Statistics, MSP Descriptions, November 2006). The regression formula indicates that elementary schools that qualify for the program can receive a maximum per-school WPU amount of 54.8. WPU amounts for secondary schools range from 119.1 WPUs for 1 or 2 year secondary schools with a maximum ADM of 300 to 150.4 WPUs for a 6 year secondary school with a maximum ADM of 600.

Funding History
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $28,931,800 from all sources for Necessarily Existent Small Schools. This is a 4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $28,931,800 from the General/Education Funds, an increase of 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 WPU Value Increase (4%)$1,122,800$0
OngoingOne-TimeFinancing Source
$1,122,800$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 Necessarily Existent Small Schools Program is governed by the following statute.

  • UCA 53A-17a-109 -- establishes application, qualification, and WPU regulations for the governance of the Necessarily Existent Small Schools Program. Statute provides a mechanism that prevents financial penalties to a school district resulting from school consolidation efforts.

The State Board of Education has passed administrative rules to further govern the Necessarily Existent Small Schools Program. The governing rule may be found in Administrative Rules R277-445.

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.


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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.