The Board Leeway Program allows a local school board to levy a property tax rate to support the district's General Fund. Statute limits the tax rate a school district may levy to 0.0018 or 0.0025 per dollar of taxable value. The state provides a guarantee similar to the Voted Local Levy Program.
The Legislature consolidated several tax levies into the Board Local Levy during the 2011 General Session. The levies consolidated include the following:
- Recreation Levy
- Transportation Levy
- Board Leeway
- Impact Aid
- Ten Percent of Basic
- Reading Levy
- Tort Liability
The maximum tax rate a school district may levy under the program, either 0.0018 or 0.0025, is determined by the total rate of all the levies mentioned above on January 1, 2011.
Formula -- Similar to the Vote Local Levy, the Board Local Levy contains a state guarantee component. The state guarantee is the same statutorily set dollar amount used for the Voted Local Levy program. The state provides the guarantee amount for each 0.0001 tax increment up to a maximum of 0.0004.
During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $116,162,200 from all sources for Board Local Levy Program. This is a 17.7 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $20,173,900 from the General/Education Funds, an increase of 28.1 percent from revised Fiscal Year 2015 estimates.
In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:
Prior to the statutory changes made during the 2011 General Session, revenue generated by the Board Leeway program were restricted to class size reduction efforts in the school district. Following the changes, revenue generated from the Board Local Levy is unrestricted and a local school board can expend the funding to best meet local needs.
A combination of local property tax revenue and state Education Fund revenue support the cost of the program. In FY 2015, the Legislature appropriated a total of $97.2 million to the program with $15.7 million coming from the Education Fund.
In FY 2015, the Legislature authorized an increase in the state guarantee contribution from $27.36 to $27.92 per weighted pupil unit.
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.