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H.B. 3

This document includes House Floor Amendments incorporated into the bill on Fri, Feb 11, 2005 at 3:42 PM by chopkin. --> This document includes House Floor Amendments (CORRECTED) incorporated into the bill on Mon, Feb 14, 2005 at 8:45 AM by ddonat. -->              1     

MINIMUM SCHOOL PROGRAM ACT

             2     
AMENDMENTS

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Gordon E. Snow

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill provides funding for the Minimum School Program.
             10      Highlighted Provisions:
             11          This bill:
             12          .    establishes a ceiling for the state contribution to the maintenance and operations
             13      portion of the Minimum School Program for fiscal year 2005-06 of $1,783,631,186;
             14          .    establishes the value of the weighted pupil unit at $2,258;
             15          .    appropriates $27,288,900 to the State Board of Education for fiscal year 2005-06 for
             16      school building aid programs for school districts;
             17          .    directs the state superintendent to include certain expenditure data in an annual
             18      report to the governor and the Legislature; and
             19          .    imposes a deadline for the authorization of a charter school in order to qualify for
             20      certain state funds.
             21      Monies Appropriated in this Bill:
             22          This bill appropriates for fiscal year 2005-06:
             23          .    $1,773,711,186 from the Uniform School Fund; and
             24          .    $9,920,000 from the Interest and Dividends Account.
             25      Other Special Clauses:
             26          This bill provides an effective date.
             27      Utah Code Sections Affected:



             28      AMENDS:
             29          53A-1-301, as last amended by Chapters 221 and 315, Laws of Utah 2003
             30          53A-1a-513, as last amended by Chapter 257, Laws of Utah 2004
             31          53A-17a-103, as last amended by Chapter 257, Laws of Utah 2004
             32          53A-17a-104, as last amended by Chapter 257, Laws of Utah 2004
             33          53A-17a-135, as last amended by Chapter 257, Laws of Utah 2004
             34          53A-17a-148, as last amended by Chapter 257, Laws of Utah 2004
             35          53A-21-105, as last amended by Chapter 257, Laws of Utah 2004
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 53A-1-301 is amended to read:
             39           53A-1-301. Appointment -- Qualifications -- Duties.
             40          (1) (a) The State Board of Education shall appoint a superintendent of public
             41      instruction, hereinafter called the state superintendent, who is the executive officer of the board
             42      and serves at the pleasure of the board.
             43          (b) The board shall appoint the state superintendent on the basis of outstanding
             44      professional qualifications.
             45          (c) The state superintendent shall administer all programs assigned to the State Board
             46      of Education in accordance with the policies and the standards established by the board.
             47          (2) The superintendent shall develop a statewide education strategy focusing on core
             48      academics, including the development of:
             49          (a) core curriculum and graduation requirements;
             50          (b) a process to select instructional materials that best correlate to the core curriculum
             51      and graduation requirements that are supported by generally accepted scientific standards of
             52      evidence;
             53          (c) professional development programs for teachers, superintendents, and principals;
             54          (d) remediation programs;
             55          (e) a method for creating individual student learning targets, and a method of
             56      measuring an individual student's performance toward those targets;
             57          (f) progress-based assessments for ongoing performance evaluations of districts and
             58      schools;



             59          (g) incentives to achieve the desired outcome of individual student progress in core
             60      academics, and which do not create disincentives for setting high goals for the students;
             61          (h) an annual report card for school and district performance, measuring learning and
             62      reporting progress-based assessments;
             63          (i) a systematic method to encourage innovation in schools and school districts as they
             64      strive to achieve improvement in their performance; and
             65          (j) a method for identifying and sharing best demonstrated practices across districts and
             66      schools.
             67          (3) The superintendent shall perform duties assigned by the board, including the
             68      following:
             69          (a) investigating all matters pertaining to the public schools;
             70          (b) adopting and keeping an official seal to authenticate the superintendent's official
             71      acts;
             72          (c) holding and conducting meetings, seminars, and conferences on educational topics;
             73          (d) presenting to the governor and the Legislature each December a report of the public
             74      school system for the preceding year to include:
             75          (i) data on the general condition of the schools with recommendations considered
             76      desirable for specific programs;
             77          (ii) a complete statement of fund balances;
             78          (iii) a complete statement of revenues by fund and source;
             79          (iv) a complete statement of adjusted expenditures by fund, the status of bonded
             80      indebtedness, the cost of new school plants, and school levies;
             81          (v) a complete statement of state funds allocated to each of the state's 40 school
             82      districts by source, including supplemental appropriations, and a complete statement of
             83      expenditures by each district, including supplemental appropriations, by function and object as
             84      outlined in the U.S. Department of Education publication "Financial Accounting for Local and
             85      State School Systems";
             86          (vi) a complete statement, by school district H. and charter school .H , of the
             86a      amount of and percentage increase
             87      or decrease in expenditures from the previous year attributed to:
             88          (A) wage increases, with expenditure data for base salary adjustments identified
             89      separately from step and lane expenditures;


             90          (B) medical and dental premium cost adjustments; and
             91          (C) adjustments in the number of teachers and other staff;
             92          [(vi)] (vii) a statement that includes such items as fall enrollments, average
             93      membership, high school graduates, licensed and classified employees, pupil-teacher ratios,
             94      class sizes, average salaries, applicable private school data, and data from standardized
             95      norm-referenced tests in grades 5, 8, and 11 on each school and district;
             96          [(vii)] (viii) statistical information regarding incidents of delinquent activity in the
             97      schools or at school-related activities with separate categories for:
             98          (A) alcohol and drug abuse;
             99          (B) weapon possession;
             100          (C) assaults; and
             101          (D) arson;
             102          [(viii)] (ix) information about:
             103          (A) the development and implementation of the strategy of focusing on core
             104      academics;
             105          (B) the development and implementation of competency-based education and
             106      progress-based assessments; and
             107          (C) the results being achieved under Subsections (3)(d)[(viii)](ix)(A) and (B), as
             108      measured by individual progress-based assessments and the comparison of Utah Students'
             109      progress with the progress of students in other states using standardized norm-referenced tests
             110      as benchmarks; and
             111          [(ix)] (x) other statistical and financial information about the school system which the
             112      superintendent considers pertinent;
             113          (e) collecting and organizing education data into an automated decision support system
             114      to facilitate school district and school improvement planning, accountability reporting and
             115      performance recognition, and the evaluation of educational policy and program effectiveness to
             116      include:
             117          (i) data that are:
             118          (A) comparable across schools and school districts;
             119          (B) appropriate for use in longitudinal studies; and
             120          (C) comprehensive with regard to the data elements required under applicable state or


             121      federal law or state board rule;
             122          (ii) features that enable users, most particularly school administrators, teachers, and
             123      parents, to:
             124          (A) retrieve school and school district level data electronically;
             125          (B) interpret the data visually; and
             126          (C) draw conclusions that are statistically valid; and
             127          (iii) procedures for the collection and management of education data that:
             128          (A) require the state superintendent of public instruction to:
             129          (I) collaborate with school districts in designing and implementing uniform data
             130      standards and definitions;
             131          (II) undertake or sponsor research to implement improved methods for analyzing
             132      education data;
             133          (III) provide for data security to prevent unauthorized access to or contamination of the
             134      data; and
             135          (IV) protect the confidentiality of data under state and federal privacy laws; and
             136          (B) require all school districts to comply with the data collection and management
             137      procedures established under Subsection (3)(e); and
             138          (f) with the approval of the board, preparing and submitting to the governor a budget
             139      for the board to be included in the budget that the governor submits to the Legislature.
             140          (4) Upon leaving office, the state superintendent shall deliver to his successor all
             141      books, records, documents, maps, reports, papers, and other articles pertaining to his office.
             142          Section 2. Section 53A-1a-513 is amended to read:
             143           53A-1a-513. Funding for charter schools.
             144          (1) (a) Charter schools shall receive funding as described in this section, except
             145      Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
             146          (b) Charter schools sponsored by local school boards that are converted from district
             147      schools or operate in district facilities without paying reasonable rent shall receive funding as
             148      prescribed in Section 53A-1a-515 .
             149          (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
             150      funds, as applicable, on the same basis as a school district receives funds.
             151          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,


             152      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             153          (i) .55 for kindergarten pupils;
             154          (ii) .9 for pupils in grades 1-6;
             155          (iii) .99 for pupils in grades 7-8; and
             156          (iv) 1.2 for pupils in grades 9-12.
             157          (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
             158      46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including hold
             159      harmless provisions to maintain a charter elementary school's funding level for a period of two
             160      years after the effective date of the distribution formula.
             161          (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
             162      local property tax revenues.
             163          (3) The State Board of Education shall adopt rules to provide for the distribution of
             164      monies to charter schools under this section.
             165          (4) (a) The Legislature shall provide an appropriation for charter schools for each of
             166      their students to replace some of the local property tax revenues that are not available to charter
             167      schools. The amount of money provided for each charter school student shall be determined
             168      by:
             169          (i) calculating the sum of:
             170          (A) school districts' operations and maintenance revenues derived from local property
             171      taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
             172      53A-17a-135 ;
             173          (B) school districts' capital projects revenues derived from local property taxes; and
             174          (C) school districts' expenditures for interest on debt; and
             175          (ii) dividing the sum by the total average daily membership of the districts' schools.
             176          (b) Of the monies provided to a charter school under Subsection (4)(a), 10% shall be
             177      expended for funding school facilities only.
             178          (c) To qualify for money under Subsection (4)(a), a new charter school shall, by
             179      H. [ November 30 ] September 30 .H of the school year prior to the school year it intends
             179a      to begin operations:
             180          (i) obtain approval of its application for a charter from:
             181          (A) the State Board of Education, pursuant to Section 53A-1a-505 ; or
             182          (B) a local school board, pursuant to Section 53A-1a-515 ; and



             183          (ii) submit to the chartering entity an estimate of the charter school's first year
             184      enrollment.
             185          (d) Subsection (4)(c) does not apply to charter schools beginning operations in the
             186      2005-06 school year.
             187          (e) By December 1, the State Charter School Board shall submit to the Governor's
             188      Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
             189      total charter school enrollment in the state for the following school year.
             190          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             191      federal requirements and comply with relevant federal regulations.
             192          (6) The State Board of Education shall distribute funds for charter school students
             193      directly to the charter school.
             194          (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
             195      transportation funding.
             196          (b) The board shall also adopt rules relating to the transportation of students to and
             197      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             198          (c) The governing body of the charter school may provide transportation through an
             199      agreement or contract with the local school board, a private provider, or with parents.
             200          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             201      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             202      the implementation of this part.
             203          (ii) Applications for the grants shall be filed on a form determined by the state
             204      superintendent and in conjunction with the application for a charter.
             205          (iii) The amount of a grant may vary based upon the size, scope, and special
             206      circumstances of the charter school.
             207          (iv) The governing board of the charter school shall use the grant to meet the expenses
             208      of the school as established in the school's charter.
             209          (b) The State Board of Education shall coordinate the distribution of federal monies
             210      appropriated to help fund costs for establishing and maintaining charter schools within the
             211      state.
             212          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             213      endowment, gift, or donation of any property made to the school for any of the purposes of this


             214      part.
             215          (b) It is unlawful for any person affiliated with a charter school to demand or request
             216      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             217      with the charter school as a condition for employment or enrollment at the school or continued
             218      attendance at the school.
             219          (10) The State Office of Education shall use up to $1,044,000 of funding provided for
             220      new growth to fund additional growth needs in charter schools in fiscal year 2005.
             221          Section 3. Section 53A-17a-103 is amended to read:
             222           53A-17a-103. Definitions.
             223          As used in this chapter:
             224          (1) "Basic state-supported school program" or "basic program" means public education
             225      programs for kindergarten, elementary, and secondary school students that are operated and
             226      maintained for the amount derived by multiplying the number of weighted pupil units for each
             227      district by [$2,182] $2,258, except as otherwise provided in this chapter.
             228          (2) "Certified revenue levy" means a property tax levy that provides an amount of ad
             229      valorem property tax revenue equal to the sum of:
             230          (a) the amount of property tax revenue to be generated statewide in the previous year
             231      from imposing a minimum basic tax rate, as specified in Subsection 53A-17a-135 (1)(a); and
             232          (b) the product of:
             233          (i) new growth, as defined in Section 59-2-924 and rules of the State Tax Commission;
             234      and
             235          (ii) the minimum basic tax rate certified by the State Tax Commission for the previous
             236      year.
             237          (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
             238      board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
             239          (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
             240          (5) (a) "State-supported minimum school program" or "minimum school program"
             241      means public school programs for kindergarten, elementary, and secondary schools as
             242      described in this Subsection (5).
             243          (b) The minimum school program established in the districts shall include the
             244      equivalent of a school term of nine months as determined by the State Board of Education.


             245          (c) (i) The board shall establish the number of days or equivalent instructional hours
             246      that school is held for an academic school year.
             247          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             248      when approved by local school boards, shall receive full support by the State Board of
             249      Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
             250      commercial advertising.
             251          (d) The program includes the total of the following annual costs:
             252          (i) the cost of a basic state-supported school program; and
             253          (ii) other amounts appropriated in this chapter in addition to the basic program.
             254          (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             255      factors that is computed in accordance with this chapter for the purpose of determining the
             256      costs of a program on a uniform basis for each district.
             257          Section 4. Section 53A-17a-104 is amended to read:
             258           53A-17a-104. Amount of state's contribution toward minimum school program.
             259          (1) The total contribution of the state toward the cost of the minimum school program
             260      may not exceed the sum of [$1,698,739,911] $1,783,631,186 for the fiscal year beginning July
             261      1, [2004] 2005, except as otherwise provided by the Legislature through supplemental
             262      appropriations.
             263          (2) [As an ongoing appropriation subject to future budget constraints, there] There is
             264      appropriated [from the Uniform School Fund] from state and local funds for fiscal year
             265      [2004-05] 2005-06 to the State Board of Education for distribution to school districts and
             266      charter schools, in accordance with this chapter, monies for the following purposes and in the
             267      following amounts:
             268          (a) basic program - kindergarten, [$49,053,542 (22,481 WPUs)] $51,412,402 (22,769
             269      WPUs);
             270          (b) basic program - grades 1-12, [$956,377,146 (438,303 WPUs)] $1,004,956,770
             271      (445,065 WPUs);
             272          (c) basic program - professional staff, [$93,420,148 (42,814 WPUs)] $98,317,836
             273      (43,542 WPUs);
             274          (d) basic program - administrative costs, [$3,626,484] $3,752,796 (1,662 WPUs);
             275          (e) basic program - necessarily existent small schools and units for consolidated


             276      schools, [$16,729,394 (7,667 WPUs)] $17,607,884 (7,798 WPUs);
             277          (f) special education - regular program - add-on WPUs for students with disabilities,
             278      [$117,590,162 (53,891 WPUs)] $124,469,992 (55,124 WPUs);
             279          (g) preschool special education program, [$14,540,848 (6,664 WPUs)] $16,375,016
             280      (7,252 WPUs);
             281          (h) self-contained regular WPUs, [$27,447,378 (12,579 WPUs)] $29,024,332 (12,854
             282      WPUs);
             283          (i) extended year program for severely disabled, [$765,882 (351 WPUs)] $806,106
             284      (357 WPUs);
             285          (j) special education programs in state institutions and district impact aid, [$3,006,796
             286      (1,378 WPUs)] $3,165,716 (1,402 WPUs);
             287          (k) applied technology and technical education district programs, [$51,709,036 (23,698
             288      WPUs)] $54,417,800 (24,100 WPUs), including [$943,426] $976,446 for summer applied
             289      technology agriculture programs;
             290          (l) applied technology district set-aside, [$2,203,820 (1,010 WPUs)] $2,325,740 (1,030
             291      WPUs);
             292          (m) class size reduction, [$65,902,946 (30,203 WPUs)] $69,487,692 (30,774 WPUs);
             293          (n) Social Security and retirement programs, [$261,482,231] $275,460,289;
             294          (o) pupil transportation to and from school, [$57,061,128] $59,058,267, of which not
             295      less than [$1,981,195] $2,050,537 shall be allocated to the Utah Schools for the Deaf and Blind
             296      to pay for transportation costs of the schools' students;
             297          (p) guarantee transportation levy, $500,000;
             298          (q) Local Discretionary Block Grant Program, $21,824,448;
             299          (r) Interventions for Student Success Block Grant Program, [$14,908,708]
             300      $15,844,513;
             301          (s) Quality Teaching Block Grant Program, [$57,426,623] $59,436,554;
             302          (t) highly impacted schools, $5,123,207;
             303          (u) at-risk programs, [$24,778,484] $26,542,031;
             304          (v) adult education, [$5,826,865] $6,030,807;
             305          (w) accelerated learning programs, [$8,695,104] $8,999,433;
             306          (x) electronic high school, [$700,000] $1,000,000;


             307          [(y) School LAND Trust Program, $8,820,000 ;]
             308          [(z)] (y) state-supported voted leeway, [$159,084,242] $176,049,358;
             309          [(aa)] (z) state-supported board leeway, [$45,357,016] $48,412,249; [and]
             310          [(bb)] (aa) charter schools, pursuant to Section 53A-1a-513 , [$5,002,450.]
             311      $12,611,950; and
             312          (bb) K-3 Reading Improvement Program, $12,500,000.
             313          (3) There is appropriated from the Interest and Dividends Account $9,920,000 to the
             314      State Board of Education for the School LAND Trust Program for the fiscal year beginning
             315      July 1, 2005.
             316          Section 5. Section 53A-17a-135 is amended to read:
             317           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             318          (1) (a) In order to qualify for receipt of the state contribution toward the basic program
             319      and as its contribution toward its costs of the basic program, each school district shall impose a
             320      minimum basic tax rate per dollar of taxable value that generates [$217,590,703] $225,872,138
             321      in revenues statewide.
             322          (b) The preliminary estimate for the [2004-05] 2005-06 minimum basic tax rate is
             323      [.001754] .001702.
             324          (c) The State Tax Commission shall certify on or before June 22 the rate that generates
             325      [$217,590,703] $225,872,138 in revenues statewide.
             326          (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             327      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .
             328          (2) (a) The state shall contribute to each district toward the cost of the basic program in
             329      the district that portion which exceeds the proceeds of the levy authorized under Subsection
             330      (1).
             331          (b) In accord with the state strategic plan for public education and to fulfill its
             332      responsibility for the development and implementation of that plan, the Legislature instructs
             333      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             334      of the coming five years to develop budgets that will fully fund student enrollment growth.
             335          (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
             336      cost of the basic program in a school district, no state contribution shall be made to the basic
             337      program.


             338          (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
             339      the basic program shall be paid into the Uniform School Fund as provided by law.
             340          Section 6. Section 53A-17a-148 is amended to read:
             341           53A-17a-148. Use of nonlapsing balances.
             342          (1) For the fiscal year beginning on July 1, [2004] 2005, the State Board of Education
             343      may use up to $300,000 of nonlapsing balances for the following:
             344          (a) to stabilize the value of the weighted pupil unit;
             345          (b) to maintain program levels in school districts that may experience unanticipated
             346      and unforeseen losses of students;
             347          (c) to equalize programs in school districts where a strict application of the law
             348      provides inequity;
             349          (d) to pay the added cost when students attend school out of state; and
             350          (e) other uses approved by the board.
             351          [(2) For the fiscal year beginning on July 1, 2004, the State Board of Education may
             352      use up to $1,000,000 of uncommitted nonlapsing balances for adult high school completion
             353      and adult basic skill programs.]
             354          [(3)] (2) For the fiscal year beginning on July 1, [2004] 2005, the State Board of
             355      Education shall use Minimum School Program nonlapsing balances to supplement the
             356      appropriation to charter schools for the replacement of local property tax revenues, up to the
             357      amount allowed under their formula detailed in Subsection 53A-1a-513 (4).
             358          (3) The State Board of Education may use Minimum School Program nonlapsing
             359      balances dedicated to the Public Education Job Enhancement Program to support program
             360      administration as follows:
             361          (a) $26,000 is authorized in fiscal year 2004-05; and
             362          (b) $60,000 is authorized in fiscal year 2005-06.
             363          Section 7. Section 53A-21-105 is amended to read:
             364           53A-21-105. State contribution to capital outlay programs.
             365          (1) As an ongoing appropriation subject to future budget constraints, there is
             366      appropriated from the Uniform School Fund for fiscal year [2004-05] 2005-06, $27,288,900 to
             367      the State Board of Education for the capital outlay programs created in Section 53A-21-102 .
             368          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall


             369      distribute:
             370          (a) $24,358,000 in accordance with the Capital Outlay Foundation Program described
             371      in Section 53A-21-103 ; and
             372          (b) $2,930,900 in accordance with the Enrollment Growth Program described in
             373      Section 53A-21-103.5 .
             374          Section 8. Effective date.
             375          This bill takes effect on July 1, 2005, except that Section 53A-17a-148 takes effect on
             376      May 2, 2005.




Legislative Review Note
    as of 2-11-05 9:53 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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