COBI 2015 - Capital Outlay Foundation Program

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

The Capital Outlay Foundation Program supports capital facility construction, rennovation, and debt service in qualifying school districts. A school district receives funding based on its local property tax effort and property tax yield per student when compared to a foundation guarantee funding level.

The State Board of Education determines the foundation guarantee level per ADM (Average Daily Membership) that fully allocates the funding appropriated by the Legislature. "If a school district imposes a combined capital levy rate that is greater than or equal to the base tax effort rate, the State Board of Education shall allocate to the qualifying school district an amount equal to the product of the qualifying school district's ADM and an amount equal to the difference between the foundation guarantee level per ADM and the qualifying school district's property tax yield per ADM" (USOE, School Finance, MSP Descriptions).

During the 2010 General Session, the Legislature modified the program by eliminating base funding levels for all school districts with more than 1,000 students in ADM. The Legislature also modified the program to set "the base tax rate at the average of the highest school district's capital and debt service levies and the statewide average of school districts' capital and debt service levies" (USOE, Finance and Statistics, Website, March 2010). Finally, revisions direct the State Board of Education to determine a district's allocation of funds under the program using data from two fiscal years prior to the allocation year.

Funding History

Funding Issues

Capital Funding Equalization

The program provides state funding to assist school districts with capital maintenance, upgrades, and new construction. Funding is distributed to school districts with low tax bases per student.

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $27,610,900 from all sources for Capital Outlay Foundation Program. This is a 118.9 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $12,610,900 from the General/Education Funds, a change of 0 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 Property Tax Equalization Amendments$15,000,000$0

OngoingOne-TimeFinancing Source

$15,000,000$0EFR - Minimum Basic Growth Account

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.

In FY 2015, a total of $12.6 million was distributed to school districts. Ten school districts receive an allocation from this program. Allocation amounts range from $5.7 million to $50,000.

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Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Education Fund	12,610,900	12,610,900	12,610,900	12,610,900	12,610,900	0	12,610,900	0	12,610,900
Education Fund, One-time	0	(100,000)	0	0	0	0	0	0	0
EFR - Minimum Basic Growth Account	0	0	0	0	0	0	0	15,000,000	15,000,000
Total	$12,610,900	$12,510,900	$12,610,900	$12,610,900	$12,610,900	$0	$12,610,900	$15,000,000	$27,610,900

Show Table | Show Additional Information

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Other Charges/Pass Thru	12,610,900	12,510,900	12,610,900	12,610,900	12,610,900	0	12,610,900	15,000,000	27,610,900
Total	$12,610,900	$12,510,900	$12,610,900	$12,610,900	$12,610,900	$0	$12,610,900	$15,000,000	$27,610,900

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.