S.B. 5 Enrolled

1

AMENDMENTS TO THE MINIMUM SCHOOL
2 PROGRAM BUDGET
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Howard A. Stephenson
6 House Sponsor: Gordon E. Snow
7
8 LONG TITLE
9 General Description:
10 This bill provides funding for the Minimum School Program.
11 Highlighted Provisions:
12 This bill:
13 . creates a cap on the number of charter schools that the State Charter School Board
14 may authorize to begin operations in the 2007-08 school year;
15 . modifies provisions governing the inclusion of foreign exchange students for the
16 purpose of apportioning state monies;
17 . establishes the value of the weighted pupil unit at $2,417;
18 . establishes a ceiling for the state contribution to the maintenance and operations
19 portion of the Minimum School Program for fiscal year 2006-07 of $2,032,219,545;
20 . authorizes the State Board of Education to use nonlapsing balances to restore
21 special education funding;
22 . makes one-time appropriations for fiscal year 2006-07 for:
23 . pupil transportation;
24 . library books and supplies;
25 . the Enrollment Growth Program;
26 . charter schools;
27 . classroom supplies; and
28 . a charter school study.
29

30 Monies Appropriated in this Bill:
31 This bill appropriates:
32 . as an ongoing appropriation, $2,011,119,545 from the Uniform School Fund for
33 fiscal year 2006-07;
34 . for fiscal year 2006-07 only, $150,000 from the General Fund; and
35 . for fiscal year 2006-07 only, $31,100,000 from the Uniform School Fund.
36 Other Special Clauses:
37 This bill takes effect on July 1, 2006.
38 This bill coordinates with S.B. 3 by providing that certain amendments in this bill
39 supersede the amendments in S.B. 3.
40 Utah Code Sections Affected:
41 AMENDS:
42 53A-1a-515, as last amended by Chapter 291, Laws of Utah 2005
43 53A-2-206, as last amended by Chapter 257, Laws of Utah 2004
44 53A-17a-103, as last amended by Chapters 9 and 184, Laws of Utah 2005
45 53A-17a-104, as last amended by Chapters 9 and 184, Laws of Utah 2005
46 53A-17a-148, as last amended by Chapters 9 and 184, Laws of Utah 2005
47 ENACTS:
48 53A-1a-502.5, Utah Code Annotated 1953
49
50 Be it enacted by the Legislature of the state of Utah:
51 Section 1. Section 53A-1a-502.5 is enacted to read:
52 53A-1a-502.5. State Charter School Board to authorize the establishment of
53 charter schools.
54 The State Charter School Board may only authorize:
55 (1) a maximum of five charter schools that will begin operation in the 2007-08 school
56 year; and
57 (2) a combined maximum student capacity of 5,000 students for the charter schools

58 authorized in accordance with Subsection (1).
59 Section 2. Section 53A-1a-515 is amended to read:
60 53A-1a-515. Charters authorized by local school boards.
61 (1) (a) Individuals and entities identified in Section 53A-1a-504 may enter into an
62 agreement with a local school board to establish and operate a charter school within the
63 geographical boundaries of the school district administered by the board.
64 (b) The charter schools described in Subsection (1)(a) are in addition to the limited
65 number of charter schools authorized by the State Charter School Board in Section
66 53A-1a-502.5 .
67 (2) (a) An existing public school that converts to charter status under a charter granted
68 by a local school board may:
69 (i) continue to receive the same services from the school district that it received prior to
70 its conversion; or
71 (ii) contract out for some or all of those services with other public or private providers.
72 (b) Any other charter school authorized by a local school board may contract with the
73 board to receive some or all of the services referred to in Subsection (3)(a).
74 (3) (a) (i) A public school that converts to a charter school under a charter granted by a
75 local school board shall receive funding:
76 (A) through the school district; and
77 (B) on the same basis as it did prior to its conversion to a charter school.
78 (ii) The school may also receive federal monies designated for charter schools under
79 any federal program.
80 (b) (i) A local school board-authorized charter school operating in a facility owned by
81 the school district and not paying reasonable rent to the school district shall receive funding:
82 (A) through the school district; and
83 (B) on the same basis that other district schools receive funding.
84 (ii) The school may also receive federal monies designated for charter schools under
85 any federal program.

86 (c) Any other charter school authorized by a local school board shall receive funding as
87 provided in Section 53A-1a-513 .
88 (4) (a) A local school board that receives an application for a charter school under this
89 section shall, within 45 days, either accept or reject the application.
90 (b) If the board rejects the application, it shall notify the applicant in writing of the
91 reason for the rejection.
92 (c) The applicant may submit a revised application for reconsideration by the board.
93 (d) If the local school board refuses to authorize the applicant, the applicant may seek a
94 charter from the State Charter School Board under Section 53A-1a-505 .
95 (5) The State Board of Education shall make a rule providing for a timeline for the
96 opening of a charter school following the approval of a charter school application by a local
97 school board.
98 (6) (a) After approval of a charter school application, the applicant and the local school
99 board shall set forth the terms and conditions for the operation of the charter school in a written
100 contractual agreement.
101 (b) The agreement is the school's charter.
102 (7) A local school board shall:
103 (a) annually review and evaluate the performance of charter schools authorized by the
104 local school board and hold the schools accountable for their performance;
105 (b) monitor charter schools authorized by the local school board for compliance with
106 federal and state laws, rules, and regulations; and
107 (c) provide technical support to charter schools authorized by the local school board to
108 assist them in understanding and performing their charter obligations.
109 (8) A local school board may terminate a charter school it authorizes as provided in
110 Sections 53A-1a-509 and 53A-1a-510 .
111 (9) The governing body of a local school board-authorized charter school shall be
112 independent of the local school board except as otherwise specifically provided in this chapter.
113 Section 3. Section 53A-2-206 is amended to read:

114 53A-2-206. Exchange and interstate compact students -- Inclusion in attendance
115 count -- Annual report -- Requirements for exchange student agencies.
116 (1) A school district or charter school may include the following students in the
117 district's or school's membership and attendance count for the purpose of apportionment of
118 state monies:
119 (a) a foreign exchange student sponsored by an agency approved by the district's local
120 school board or charter school's governing board, subject to the limitation of Subsection (2);
121 (b) a student enrolled under an interstate compact, established between the State Board
122 of Education and the state education authority of another state, under which a student from one
123 compact state would be permitted to enroll in a public school in the other compact state on the
124 same basis as a resident student of the receiving state; or
125 (c) a student receiving services under the Compact on Placement of Children.
126 (2) (a) [The] Through June 30, 2007, number of foreign exchange students that may be
127 counted for the purpose of apportioning state monies shall be the lesser of:
128 [(a)] (i) the number of foreign exchange students:
129 [(i)] (A) enrolled in the school district or charter school; and
130 [(ii)] (B) sponsored by an exchange student agency approved by the district's local
131 school board or charter school's governing board; or
132 [(b)] (ii) the number of students that have withdrawn from the school district or charter
133 school to participate in a foreign exchange program in a foreign country.
134 (b) (i) Beginning July 1, 2007, the total number of foreign exchange students in the
135 state that may be counted for the purpose of apportioning state monies shall be the lesser of:
136 (A) the number of foreign exchange students enrolled in public schools in the state on
137 October 1 of the previous fiscal year; or
138 (B) 328 foreign exchange students.
139 (ii) The State Board of Education shall make rules in accordance with Title 63, Chapter
140 46a, Utah Administrative Rulemaking Act, to administer the cap on the number of foreign
141 exchange students that may be counted for the purpose of apportioning state monies.

142 (3) A school district or charter school may:
143 (a) enroll foreign exchange students that do not qualify for state monies; and
144 (b) pay for the costs of those students with other funds available to the school district
145 or charter school.
146 (4) Due to the benefits to all students of having the opportunity to become familiar
147 with individuals from diverse backgrounds and cultures, school districts are encouraged to
148 enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
149 declining or stable enrollments where the incremental cost of enrolling the foreign exchange
150 student may be minimal.
151 (5) The board shall make an annual report to the Legislature on the number of
152 exchange students and the number of interstate compact students sent to or received from
153 public schools outside the state.
154 (6) (a) A local school board or charter school governing board shall require each
155 approved exchange student agency to provide it with a sworn affidavit of compliance prior to
156 the beginning of each school year.
157 (b) The affidavit shall include the following assurances:
158 (i) that the agency has complied with all applicable policies of the board;
159 (ii) that a household study, including a background check of all adult residents, has
160 been made of each household where an exchange student is to reside, and that the study was of
161 sufficient scope to provide reasonable assurance that the exchange student will receive proper
162 care and supervision in a safe environment;
163 (iii) that host parents have received training appropriate to their positions, including
164 information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
165 are in a position of special trust;
166 (iv) that a representative of the exchange student agency shall visit each student's place
167 of residence at least once each month during the student's stay in Utah;
168 (v) that the agency will cooperate with school and other public authorities to ensure
169 that no exchange student becomes an unreasonable burden upon the public schools or other

170 public agencies;
171 (vi) that each exchange student will be given in the exchange student's native language
172 names and telephone numbers of agency representatives and others who could be called at any
173 time if a serious problem occurs; and
174 (vii) that alternate placements are readily available so that no student is required to
175 remain in a household if conditions appear to exist which unreasonably endanger the student's
176 welfare.
177 (7) (a) A local school board or charter school governing board shall provide each
178 approved exchange student agency with a list of names and telephone numbers of individuals
179 not associated with the agency who could be called by an exchange student in the event of a
180 serious problem.
181 (b) The agency shall make a copy of the list available to each of its exchange students
182 in the exchange student's native language.
183 Section 4. Section 53A-17a-103 is amended to read:
184 53A-17a-103. Definitions.
185 As used in this chapter:
186 (1) "Basic state-supported school program" or "basic program" means public education
187 programs for kindergarten, elementary, and secondary school students that are operated and
188 maintained for the amount derived by multiplying the number of weighted pupil units for each
189 district by [$2,280] $2,417, except as otherwise provided in this chapter.
190 (2) "Certified revenue levy" means a property tax levy that provides an amount of ad
191 valorem property tax revenue equal to the sum of:
192 (a) the amount of property tax revenue to be generated statewide in the previous year
193 from imposing a minimum basic tax rate, as specified in Subsection 53A-17a-135 (1)(a); and
194 (b) the product of:
195 (i) new growth, as defined in Section 59-2-924 and rules of the State Tax Commission;
196 and
197 (ii) the minimum basic tax rate certified by the State Tax Commission for the previous

198 year.
199 (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
200 board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
201 (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
202 (5) (a) "State-supported minimum school program" or "minimum school program"
203 means public school programs for kindergarten, elementary, and secondary schools as
204 described in this Subsection (5).
205 (b) The minimum school program established in the districts shall include the
206 equivalent of a school term of nine months as determined by the State Board of Education.
207 (c) (i) The board shall establish the number of days or equivalent instructional hours
208 that school is held for an academic school year.
209 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
210 when approved by local school boards, shall receive full support by the State Board of
211 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
212 commercial advertising.
213 (d) The program includes the total of the following annual costs:
214 (i) the cost of a basic state-supported school program; and
215 (ii) other amounts appropriated in this chapter in addition to the basic program.
216 (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
217 factors that is computed in accordance with this chapter for the purpose of determining the
218 costs of a program on a uniform basis for each district.
219 Section 5. Section 53A-17a-104 is amended to read:
220 53A-17a-104. Amount of state's contribution toward minimum school program.
221 (1) The total contribution of the state toward the cost of the minimum school program
222 may not exceed the sum of [$1,794,543,275] $2,032,219,545 for the fiscal year beginning July
223 1, [2005] 2006, except as otherwise provided by the Legislature through supplemental
224 appropriations.
225 (2) There is appropriated from state and local funds for fiscal year [2005-06] 2006-07

226 for distribution to school districts and charter schools, in accordance with this chapter, monies
227 for the following purposes and in the following amounts:
228 (a) basic program - kindergarten, [$50,992,200 (22,365 WPUs)] $57,234,560 (23,680
229 WPUs);
230 (b) basic program - grades 1-12, [$1,014,932,880 (445,146 WPUs)] $1,118,053,443
231 (462,579 WPUs);
232 (c) basic program - professional staff, [$99,273,480 (43,541 WPUs)] $106,128,053
233 (43,909 WPUs);
234 (d) basic program - administrative costs, [$3,789,360 (1,662 WPUs)] $3,937,293
235 (1,629 WPUs);
236 (e) basic program - necessarily existent small schools and units for consolidated
237 schools, [$17,779,440 (7,798 WPUs)] $18,487,633 (7,649 WPUs);
238 (f) special education - regular program - add-on WPUs for students with disabilities,
239 [$125,076,240 (54,858 WPUs)] $136,350,221 (56,413 WPUs);
240 (g) preschool special education program, [$16,509,480 (7,241 WPUs)] $19,717,886
241 (8,158 WPUs);
242 (h) self-contained regular WPUs, [$28,999,320 (12,719 WPUs)] $32,148,517 (13,301
243 WPUs);
244 (i) extended year program for severely disabled, [$813,960 (357 WPUs)] $887,039
245 (367 WPUs);
246 (j) special education programs in state institutions and district impact aid, [$3,196,560
247 (1,402 WPUs)] $3,487,731 (1,443 WPUs);
248 (k) applied technology and technical education district programs, [$54,943,440 (24,098
249 WPUs)] $59,934,349 (24,797 WPUs), including [$985,880] $1,045,033 for summer applied
250 technology agriculture programs;
251 (l) applied technology district set-aside, [$2,348,400 (1,030 WPUs)] $2,562,020 (1,060
252 WPUs);
253 (m) class size reduction, [$70,162,440 (30,773 WPUs)] $74,378,341 (30,773 WPUs);

254 (n) Social Security and retirement programs, [$272,224,533] $310,891,038;
255 (o) pupil transportation to and from school, [$59,058,267] $62,601,763, of which not
256 less than [$2,050,537] $2,173,569 shall be allocated to the Utah Schools for the Deaf and Blind
257 to pay for transportation costs of the schools' students;
258 (p) guarantee transportation levy, $500,000;
259 (q) Local Discretionary Block Grant Program, $21,820,748;
260 (r) Interventions for Student Success Block Grant Program, [$15,842,347]
261 $16,792,888;
262 (s) Quality Teaching Block Grant Program, [$59,428,023] $62,993,704;
263 (t) highly impacted schools, $5,123,207;
264 (u) at-risk programs, [$26,557,600] $27,992,056;
265 (v) adult education, [$7,630,805] $9,148,653;
266 (w) accelerated learning programs, [$8,999,293] $12,010,853;
267 (x) electronic high school, [$1,000,000] $1,300,000;
268 (y) School LAND Trust Program, [$9,920,000] $15,000,000;
269 (z) state-supported voted leeway, [$175,975,385] $196,085,303;
270 (aa) state-supported board leeway, [$48,387,919] $54,704,476;
271 (bb) charter schools, pursuant to Section 53A-1a-513 , [$12,559,950] $21,552,450;
272 (cc) K-3 Reading Improvement Program, $12,500,000 ; and
273 (dd) state-supported board leeway for K-3 Reading Improvement Program,
274 $15,000,000.
275 Section 6. Section 53A-17a-148 is amended to read:
276 53A-17a-148. Use of nonlapsing balances.
277 [(1) For the fiscal year beginning on July 1, 2005, the State Board of Education may
278 use up to $300,000 of nonlapsing balances for the following:]
279 [(a) to stabilize the value of the weighted pupil unit;]
280 [(b) to maintain program levels in school districts that may experience unanticipated
281 and unforeseen losses of students;]

282 [(c) to equalize programs in school districts where a strict application of the law
283 provides inequity;]
284 [(d) to pay the added cost when students attend school out of state; and]
285 [(e) other uses approved by the board.]
286 [(2) For the fiscal year beginning on July 1, 2005, the State Board of Education may
287 use up to $1,000,000 of uncommitted nonlapsing balances for adult high school completion
288 and adult basic skill programs.]
289 [(3) For the fiscal year beginning on July 1, 2005, the State Board of Education shall
290 use Minimum School Program nonlapsing balances to supplement the appropriation to charter
291 schools for the replacement of local property tax revenues, up to the amount allowed under
292 their formula detailed in Subsection 53A-1a-513 (4).]
293 [(4) The State Board of Education may use Minimum School Program nonlapsing
294 balances dedicated to the Public Education Job Enhancement Program to support program
295 administration as follows:]
296 [(a) $26,000 is authorized in fiscal year 2004-05; and]
297 [(b) $60,000 is authorized in fiscal year 2005-06.]
298 The State Board of Education may use Minimum School Program nonlapsing balances
299 to restore special education funding as follows:
300 (1) up to $902,538 is authorized in fiscal year 2005-06; and
301 (2) up to $902,538 is authorized in fiscal year 2006-07.
302 Section 7. Ongoing appropriation for charter school administration.
303 (1) As an ongoing appropriation subject to future budget constraints, there is
304 appropriated for fiscal year 2006-07, $100,000 from the Uniform School Fund to the State
305 Board of Education for charter school administration.
306 (2) The State Board of Education, in consultation with the State Charter School Board,
307 shall distribute the money appropriated in Subsection (1) on an equalized per student basis as
308 determined by the actual fall enrollment count to charter schools that receive funding through
309 the Minimum School Program - Administrative Cost Formula Program.

310 Section 8. One-time appropriation for pupil transportation.
311 There is appropriated from the Uniform School Fund to the State Board of Education
312 for fiscal year 2006-07 only, $5,000,000 for pupil transportation to and from school as
313 provided in Subsections 53A-17a-127 (1) through (5).
314 Section 9. One-time appropriation for library books and supplies.
315 (1) There is appropriated from the Uniform School Fund to the State Board of
316 Education for fiscal year 2006-07 only, $2,000,000 for library books and supplies.
317 (2) It is the intent of the Legislature that the State Board of Education shall distribute
318 the money appropriated in Subsection (1) as follows:
319 (a) 25% shall be divided equally among all public schools; and
320 (b) 75% shall be divided among public schools based on each school's average daily
321 membership as compared to the total state average daily membership.
322 Section 10. One-time appropriation for the Enrollment Growth Program.
323 There is appropriated from the Uniform School Fund to the State Board of Education
324 for fiscal year 2006-07 only, $10,000,000 for the Enrollment Growth Program described in
325 Section 53A-21-103.5 .
326 Section 11. One-time appropriation for charter schools.
327 (1) There is appropriated from the Uniform School Fund to the State Board of
328 Education for fiscal year 2006-07 only, $7,100,000 for charter schools.
329 (2) It is the intent of the Legislature that the State Board of Education shall distribute
330 the money appropriated in Subsection (1) based upon average daily membership of the charter
331 schools.
332 Section 12. One-time appropriation for classroom supplies.
333 (1) There is appropriated from the Uniform School Fund to the State Board of
334 Education for fiscal year 2006-07 only, $7,000,000 for classroom supplies and materials.
335 (2) (a) The board shall distribute the appropriation to classroom teachers in school
336 districts, the Schools for the Deaf and the Blind, the Edith Bowen Laboratory School, and
337 charter schools on the basis of the number of classroom teachers in each school as compared to

338 the total number of classroom teachers.
339 (b) Teachers shall receive up to the following amounts:
340 (i) a teacher on salary schedule steps one through three teaching in grades kindergarten
341 through six or preschool handicapped - $360;
342 (ii) a teacher on salary schedule steps one through three teaching in grades seven
343 through twelve - $310;
344 (iii) a teacher on salary schedule step four or higher teaching in grades kindergarten
345 through six or preschool handicapped - $285; and
346 (iv) a teacher on salary schedule step four or higher teaching in grades seven through
347 twelve - $235.
348 (c) If the appropriation in Subsection (1) is not sufficient to provide to each teacher the
349 full amount allowed under Subsection (2)(b), teachers on salary schedule steps one through
350 three shall receive the full amount allowed with the remaining monies apportioned to all other
351 teachers.
352 (d) Teachers shall spend the money for school supplies, materials, or field trips under
353 rules adopted by the State Board of Education.
354 (e) As used in this section, "classroom teacher" or "teacher" means permanent teacher
355 positions filled by one teacher or two or more job-sharing teachers:
356 (i) who are licensed personnel;
357 (ii) who are paid on the teacher's salary schedule;
358 (iii) who are hired for an entire contract period; and
359 (iv) whose primary function is to provide instructional or a combination of
360 instructional and counseling services to students in public schools.
361 Section 13. One-time appropriation for charter school study.
362 (1) (a) There is appropriated $150,000 from the General Fund for fiscal year 2006-07
363 only to the Office of Legislative Research and General Counsel for a charter school study under
364 the direction and approval of the Executive Appropriations Committee.
365 (b) As directed and approved by the Executive Appropriations Committee, the Office

366 of Legislative Research and General Counsel and the Office of the Legislative Fiscal Analyst
367 shall jointly conduct the study.
368 (c) In conducting the study, the Office of Legislative Research and General Counsel
369 and the Office of the Legislative Fiscal Analyst shall consult with the Office of the Legislative
370 Auditor General, State Board of Education, State Charter School Board, charter schools, and
371 school districts.
372 (2) The study shall:
373 (a) evaluate the services provided to charter schools by the divisions within the Utah
374 State Office of Education and by the school districts where charter schools are located;
375 (b) identify tasks required of the State Charter School Board to assume its statutory
376 obligations;
377 (c) identify long-term administrative needs of the state and school districts required to
378 sustain charter schools;
379 (d) evaluate the financial condition of the state's charter schools;
380 (e) examine funding equity between charter schools and district schools;
381 (f) compare the use of a local tax replacement formula to a local revenue sharing
382 mechanism;
383 (g) determine school level administrative costs;
384 (h) identify the financial needs of and sources of funding for charter schools as they
385 begin operations;
386 (i) evaluate a school district's role and responsibility in funding a student attending a
387 charter school;
388 (j) examine the current process used to assess a charter school's financial plan and
389 long-term sustainability;
390 (k) (i) identify requirements for granting charters to schools that primarily serve special
391 needs students; and
392 (ii) examine the financial feasibility of operating a charter school that primarily serves
393 special needs students;

394 (l) identify needs of charter schools relating to securing and maintaining adequate
395 facilities to support the operations of a school;
396 (m) evaluate a school district's role and responsibility in providing for the capital
397 facility needs of students attending a charter school;
398 (n) examine processes governing charter school facility leases and procurement
399 contracts for school construction;
400 (o) summarize the experience of other states relating to growth and oversight of charter
401 schools;
402 (p) evaluate how charter school and student growth affects the public education system
403 as a whole; and
404 (q) make recommendations on how to accommodate growth in the number of charter
405 schools and students attending charter schools, in terms of administration and funding.
406 (3) The Office of Legislative Research and General Counsel and the Office of the
407 Legislative Fiscal Analyst shall coordinate with the Department of Administrative Services to
408 address the liability of the state in regards to charter school facilities and leases.
409 (4) The Office of Legislative Research and General Counsel and the Office of the
410 Legislative Fiscal Analyst shall report the findings of the study to the Executive Appropriations
411 Committee prior to October 31, 2006.
412 Section 14. Effective date.
413 This bill takes effect on July 1, 2006.
414 Section 15. Coordinating S.B. 5 with S.B. 3 -- Superseding amendments.
415 If this S.B. 5 and S.B. 3, Minimum School Program Base Budget Amendments, both
416 pass, it is the intent of the Legislature that the amendments to Sections 53A-17a-103 and
417 53A-17a-104 in S.B. 5 supersede the amendments to Sections 53A-17a-103 and 53A-17a-104
418 in S.B. 3 when the Office of Legislative Research and General Counsel prepares the Utah Code
419 database for publication.