Download Zipped Introduced WordPerfect HB0002S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute H.B. 2

Senator Howard A. Stephenson proposes the following substitute bill:


             1     
MINIMUM SCHOOL PROGRAM BUDGET

             2     
AMENDMENTS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Merlynn T. Newbold

             6     
Senate Sponsor: Howard A. Stephenson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill provides funding for the Minimum School Program.
             11      Highlighted Provisions:
             12          This bill:
             13          .    establishes a ceiling for the state contribution to the Minimum School Program for
             14      fiscal year 2009-10 of $2,138,232,586;
             15          .    appropriates $22,499,700 to the State Board of Education for fiscal year 2009-10 for
             16      school building aid programs for school districts;
             17          .    modifies the funding of charter schools;
             18          .    modifies the district administrative cost formula;
             19          .    makes one-time appropriations for fiscal year 2009-10; and
             20          .    makes one-time appropriations for fiscal year 2008-09.
             21      Monies Appropriated in this Bill:
             22          This bill appropriates:
             23          .    the following Minimum School Program monies:
             24              .    $2,031,884,786 from the Uniform School Fund for fiscal year 2009-10;
             25              .    $20,000,000 from the Uniform School Fund Restricted - Interest and Dividends


             26      Account for fiscal year 2009-10;
             27              .    $86,347,800 from the Uniform School Fund for fiscal year 2009-10 only;
             28              .    ($84,167,200) from the Uniform School Fund for fiscal year 2008-09 only;
             29              .    $207,176,000 from Federal Funds - American Recovery and Reinvestment Act
             30      (H.R. 1, 111th Congress) for fiscal year 2009-10 only; and
             31              .    $91,200,000 from Federal Funds - American Recovery and Reinvestment Act
             32      (H.R. 1, 111th Congress) for fiscal year 2008-09 only; and
             33          .    the following School Building Program monies:
             34              .    $22,499,700 from the Uniform School Fund for fiscal year 2009-10; and
             35              .    $3,171,700 from the Uniform School Fund for fiscal year 2008-09 only.
             36      Other Special Clauses:
             37          This bill provides an effective date.
             38          This bill coordinates with S.B. 4, Current School Year Supplemental Minimum School
             39      Program Budget Adjustments, by providing superseding and substantive amendments.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          53A-1a-502.5, as last amended by Laws of Utah 2008, Chapter 397
             43          53A-1a-513, as last amended by Laws of Utah 2008, Chapters 382 and 397
             44          53A-17a-104, as last amended by Laws of Utah 2008, Chapters 1 and 397
             45          53A-17a-108, as last amended by Laws of Utah 2008, Chapters 1 and 397
             46          53A-17a-120.5, as enacted by Laws of Utah 2007, Chapter 368
             47          53A-17a-125, as last amended by Laws of Utah 2004, Chapter 330
             48          53A-17a-127, as last amended by Laws of Utah 2008, Chapter 397
             49          53A-17a-133, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
             50          53A-17a-134, as last amended by Laws of Utah 2008, Chapter 231
             51          53A-17a-135, as last amended by Laws of Utah 2008, Chapter 1
             52          53A-17a-148, as last amended by Laws of Utah 2008, Chapter 289
             53          53A-21-501, as last amended by Laws of Utah 2008, Chapter 1 and renumbered and
             54      amended by Laws of Utah 2008, Chapter 236
             55     
             56      Be it enacted by the Legislature of the state of Utah:


             57          Section 1. Section 53A-1a-502.5 is amended to read:
             58           53A-1a-502.5. Charter schools -- Maximum authorized students.
             59          (1) The State Charter School Board and local school boards may only authorize a
             60      combined maximum student capacity of:
             61          (a) 32,921 students for the charter schools in the 2008-09 school year; and
             62          (b) beginning in the 2009-10 school year, an annual increase in charter school
             63      enrollment capacity equal to 1.4% of total school district enrollment as of October 1 of the
             64      previous school year.
             65          (2) (a) The State Board of Education, in consultation with the State Charter School
             66      Board, shall allocate the students under Subsection (1) between the State Charter School Board
             67      and local school boards.
             68          (b) One-third of the student capacity described under Subsection (1)(b) shall be
             69      allocated to increase the maximum student capacity of operating charter schools.
             70          (c) If the operating charter schools do not use the allocation described under
             71      Subsection (2)(b), the remaining student capacity may be used by new charter schools.
             72          (3) An increase in charter school enrollment capacity in the 2011-12 school year or
             73      thereafter shall receive:
             74          (a) tentative approval by the State Board of Education by November 30 of the year that
             75      is two years before the year that the increase in charter school enrollment capacity takes effect;
             76      and
             77          (b) final approval by the State Board of Education by the following April 1, subject to
             78      legislative authorization of the increase in charter school enrollment capacity.
             79          Section 2. Section 53A-1a-513 is amended to read:
             80           53A-1a-513. Funding for charter schools.
             81          (1) As used in this section:
             82          (a) "Charter school students' average local revenues" means the amount determined as
             83      follows:
             84          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             85      district per pupil local revenues of the school district in which the student resides;
             86          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             87      school on the previous October 1; and


             88          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             89      enrolled in charter schools on the previous October 1.
             90          (b) "District per pupil local revenues" means the amount determined as follows, using
             91      data from the most recently published school district annual financial reports and state
             92      superintendent's annual report:
             93          (i) calculate the sum of a school district's revenue received from:
             94          (A) a voted levy imposed under Section 53A-17a-133 ;
             95          (B) a board levy imposed under Section 53A-17a-134 ;
             96          (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
             97          (D) a tort liability levy imposed under Section 63G-7-704 ;
             98          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             99          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
             100          (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
             101          (A) a school district's average daily membership; and
             102          (B) the average daily membership of a school district's resident students who attend
             103      charter schools.
             104          (c) "Resident student" means a student who is considered a resident of the school
             105      district under Title 53A, Chapter 2, Part 2, District of Residency.
             106          (d) "Statewide average debt service revenues" means the amount determined as
             107      follows, using data from the most recently published state superintendent's annual report:
             108          (i) sum the revenues of each school district from the debt service levy imposed under
             109      Section 11-14-310 ; and
             110          (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
             111      average daily membership.
             112          (2) (a) Charter schools shall receive funding as described in this section, except
             113      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             114          (b) Charter schools authorized by local school boards that are converted from district
             115      schools or operate in district facilities without paying reasonable rent shall receive funding as
             116      prescribed in Section 53A-1a-515 .
             117          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             118      funds, as applicable, on the same basis as a school district receives funds.


             119          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             120      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             121          (i) .55 for kindergarten pupils;
             122          (ii) .9 for pupils in grades 1-6;
             123          (iii) .99 for pupils in grades 7-8; and
             124          (iv) 1.2 for pupils in grades 9-12.
             125          (4) (a) (i) [Except as provided in Subsection (4)(a)(ii), a] A school district shall
             126      allocate a portion of school district revenues for each resident student of the school district who
             127      is enrolled in a charter school on October 1 [equal to 25% of the lesser of] as follows:
             128          (A) in fiscal years 2008-09 and 2009-10, the allocation shall equal 25% of the lesser of:
             129          [(A)] (I) district per pupil local revenues; or
             130          [(B)] (II) charter school students' average local revenues[.];
             131          (B) in fiscal year 2010-11, the allocation shall equal 50% of the lesser of:
             132          (I) district per pupil local revenues; or
             133          (II) charter school students' average local revenues;
             134          (C) in fiscal year 2011-12, the allocation shall equal 75% of the lesser of:
             135          (I) district per pupil local revenues; or
             136          (II) charter school students' average local revenues; and
             137          (D) beginning in fiscal year 2012-13, the allocation shall equal 100% of the lesser of:
             138          (I) district per pupil local revenues; or
             139          (II) charter school students' average local revenues.
             140          (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i) in
             141      fiscal year 2008-09 only, a kindergarten student who is enrolled in less than a full-day
             142      kindergarten program is weighted as .55 of a student.
             143          (iii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             144      established under Chapter 28, Utah School Bond Guaranty Act.
             145          (b) The State Board of Education shall:
             146          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             147      state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum
             148      School Program Act; and
             149          (ii) remit the money to the student's charter school.


             150          (c) Notwithstanding the method used to transfer school district revenues to charter
             151      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             152      schools under this section from:
             153          (i) unrestricted revenues available to the school district; or
             154          (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through (F) based on the
             155      portion of the allocations to charter schools attributed to each of the revenue sources listed in
             156      Subsections (1)(b)(i)(A) through (F).
             157          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             158      appropriation for charter schools for each student enrolled on October 1 to supplement the
             159      allocation of school district revenues under Subsection (4)(a).
             160          (ii) Except as provided in [Subsections] Subsection (4)(d)(iii) [and (iv)], the amount of
             161      money provided by the state for a charter school student shall be the sum of:
             162          (A) charter school students' average local revenues minus the allocation of school
             163      district revenues under Subsection (4)(a); and
             164          (B) statewide average debt service revenues.
             165          (iii) If the total of a school district's allocation for a charter school student under
             166      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             167      $1427, the state shall provide an additional supplement so that a charter school receives at least
             168      $1427 per student under this Subsection (4).
             169          [(iv) For the purpose of providing state monies for charter school students under this
             170      Subsection (4)(d), a kindergarten student who is enrolled in less than a full-day kindergarten
             171      program is weighted as .55 of a student.]
             172          (e) Of the monies provided to a charter school under this Subsection (4), 10% shall be
             173      expended for funding school facilities only.
             174          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             175      federal requirements and comply with relevant federal regulations.
             176          (6) The State Board of Education shall distribute funds for charter school students
             177      directly to the charter school.
             178          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             179      transportation funding.
             180          (b) The board shall also adopt rules relating to the transportation of students to and


             181      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             182          (c) The governing body of the charter school may provide transportation through an
             183      agreement or contract with the local school board, a private provider, or with parents.
             184          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             185      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             186      the implementation of this part.
             187          (ii) Applications for the grants shall be filed on a form determined by the state
             188      superintendent and in conjunction with the application for a charter.
             189          (iii) The amount of a grant may vary based upon the size, scope, and special
             190      circumstances of the charter school.
             191          (iv) The governing board of the charter school shall use the grant to meet the expenses
             192      of the school as established in the school's charter.
             193          (b) The State Board of Education shall coordinate the distribution of federal monies
             194      appropriated to help fund costs for establishing and maintaining charter schools within the
             195      state.
             196          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             197      endowment, gift, or donation of any property made to the school for any of the purposes of this
             198      part.
             199          (b) It is unlawful for any person affiliated with a charter school to demand or request
             200      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             201      with the charter school as a condition for employment or enrollment at the school or continued
             202      attendance at the school.
             203          Section 3. Section 53A-17a-104 is amended to read:
             204           53A-17a-104. Amount of state's contribution toward minimum school program.
             205          (1) The total contribution of the state toward the cost of the minimum school program
             206      may not exceed the sum of [$2,497,012,086] $2,138,232,586 for the fiscal year beginning July
             207      1, [2008] 2009, except as otherwise provided by the Legislature through supplemental
             208      appropriations.
             209          (2) There is appropriated from state and local funds for fiscal year [2008-09] 2009-10
             210      for distribution to school districts and charter schools, in accordance with this chapter, monies
             211      for the following purposes and in the following amounts:


             212          (a) basic program - kindergarten, [$65,182,638 (25,294 WPUs)] $68,424,504 (26,552
             213      WPUs);
             214          (b) basic program - grades 1-12, [$1,258,253,751 (488,263 WPUs)] $1,291,316,661
             215      (501,093 WPUs);
             216          (c) basic program - professional staff, [$116,307,741 (45,133 WPUs)] $118,627,041
             217      (46,033 WPUs);
             218          (d) basic program - administrative costs, $4,174,740 (1,620 WPUs);
             219          (e) basic program - necessarily existent small schools and units for consolidated
             220      schools, $19,711,473 (7,649 WPUs);
             221          (f) special education - regular program - add-on WPUs for students with disabilities,
             222      [$155,789,958 (60,454 WPUs)] $160,029,123 (62,099 WPUs);
             223          (g) preschool special education program, [$22,082,313 (8,569 WPUs)] $22,623,483
             224      (8,779 WPUs);
             225          (h) self-contained regular WPUs, [$34,573,032 (13,416 WPUs)] $35,632,179 (13,827
             226      WPUs);
             227          (i) extended year program for severely disabled, [$968,952 (376 WPUs)] $992,145
             228      (385 WPUs);
             229          (j) special education programs in state institutions and district impact aid, [$4,293,282
             230      (1,666 WPUs)] $4,398,939 (1,707 WPUs);
             231          (k) career and technical education district programs, [$67,530,285 (26,205 WPUs)]
             232      $68,656,434 (26,642 WPUs), including [$1,154,458] $1,174,084 for summer career and
             233      technical education agriculture programs;
             234          [(l) career and technical education district set-aside, $2,878,509 (1,117 WPUs);]
             235          [(m)] (l) class size reduction, [$88,373,061 (34,293 WPUs)] $90,537,741 (35,133
             236      WPUs);
             237          [(n)] (m) Social Security and retirement programs, [$349,906,049] $13,987,831;
             238          [(o)] (n) pupil transportation to and from school, [$74,446,865] $65,646,865, of which
             239      not less than $2,584,435 shall be allocated to the Utah Schools for the Deaf and Blind to pay
             240      for transportation costs of the schools' students;
             241          [(p)] (o) guarantee transportation levy, $500,000;
             242          [(q) Local Discretionary Block Grant Program, $21,820,748;]


             243          [(r)] (p) Interventions for Student Success Block Grant Program, [$18,844,111]
             244      $15,000,000;
             245          [(s) Quality Teaching Block Grant Program, $77,615,641;]
             246          [(t)] (q) highly impacted schools, [$5,123,207] $4,610,907;
             247          [(u)] (r) at-risk programs, [$31,411,241] $28,270,141;
             248          [(v)] (s) adult education, [$10,266,146] $9,266,146;
             249          [(w)] (t) accelerated learning programs, [$4,295,581] $3,566,081;
             250          [(x)] (u) concurrent enrollment, [$9,672,586] $8,705,286;
             251          [(y)] (v) High-ability Student Initiative Program, [$500,000] $495,000;
             252          [(z)] (w) English Language Learner Family Literacy Centers, [$2,000,000] $1,800,000;
             253          [(aa)] (x) electronic high school, $2,000,000;
             254          [(bb)] (y) School LAND Trust Program, [$26,499,500] $20,000,000;
             255          [(cc)] (z) state supplement to local property taxes for charter schools, pursuant to
             256      Section 53A-1a-513 , [$36,957,646] $45,288,446;
             257          [(dd)] (aa) charter school administrative costs, [$2,898,600] $3,677,000;
             258          [(ee)] (bb) K-3 Reading Improvement Program, $15,000,000;
             259          [(ff)] (cc) Public Education Job Enhancement Program, [$2,430,000] $2,187,000;
             260          [(gg)] (dd) educator salary adjustments, $148,260,200;
             261          [(hh)] (ee) Teacher Salary Supplement Restricted Account, [$4,300,000] $4,000,000;
             262          [(ii)] (ff) library books and electronic resources, [$1,500,000] $500,000;
             263          [(jj)] (gg) school nurses, [$1,000,000] $900,000;
             264          [(kk)] (hh) critical languages, $230,000;
             265          [(ll)] (ii) extended year for special educators, [$2,900,000] $2,610,000;
             266          [(mm)] (jj) USTAR Centers, [$6,900,000] $6,210,000;
             267          [(nn)] (kk) state-supported voted leeway, [$273,337,346] $278,396,150;
             268          [(oo)] (ll) state-supported board leeway, [$71,575,858] $73,324,640; and
             269          [(pp)] (mm) state-supported board leeway for K-3 Reading Improvement Program,
             270      $15,000,000.
             271          Section 4. Section 53A-17a-108 is amended to read:
             272           53A-17a-108. Weighted pupil units for small school district administrative costs
             273      -- Appropriation for charter school administrative costs.


             274          (1) Administrative costs weighted pupil units are computed and distributed to small
             275      school districts in accordance with the following schedule:
             276     
Administrative Costs Schedule

             277          School District Enrollment as of October 1            Weighted Pupil Units
             278          1 - [2,000] 500 students                        [53] 95
             279          [2,001 - 10,000] 501 - 1,000 students                [48] 80
             280          [10,001 - 20,000] 1,001 - 2,000 students                [25] 70
             281          [20,001 and above] 2,001 - 5,000 students                [16] 60
             282          (2) (a) Money appropriated to the State Board of Education for charter school
             283      administrative costs, including an appropriation in Section 53A-17a-104 , shall be distributed to
             284      charter schools in the amount of $100 for each charter school student in enrollment.
             285          (b) Charter schools are encouraged to identify and use cost-effective methods of
             286      performing administrative functions, including contracting for administrative services with the
             287      State Charter School Board as provided in Section 53A-1a-501.6 .
             288          (3) Charter schools are not eligible for funds for administrative costs under Subsection
             289      (1).
             290          Section 5. Section 53A-17a-120.5 is amended to read:
             291           53A-17a-120.5. Appropriation for concurrent enrollment.
             292          (1) Money appropriated to the State Board of Education in Section 53A-17a-104 for
             293      concurrent enrollment shall be allocated as follows:
             294          (a) 60% of the monies shall be allocated to local school boards and charter schools; and
             295          (b) 40% of the monies shall be allocated to the State Board of Regents.
             296          (2) The State Board of Education shall make rules providing that a school participating
             297      in the concurrent enrollment programs offered under Section 53A-15-101 shall receive an
             298      allocation from the monies described in Subsection (1)(a) as provided in Section 53A-15-101 .
             299          (3) The State Board of Regents shall make rules providing that an institution of higher
             300      education participating in the concurrent enrollment programs offered under Section
             301      53A-15-101 shall receive an allocation from the monies described in Subsection (1)(b) as
             302      provided in the rules.
             303          (4) [Each year] Subject to budget constraints, the Legislature shall annually increase
             304      the money appropriated to the State Board of Education in Section 53A-17a-104 for concurrent


             305      enrollment based on:
             306          (a) enrollment growth in concurrent enrollment from additional students enrolled,
             307      courses offered, and credit hours taken; and
             308          (b) the percentage increase in the value of the weighted pupil unit.
             309          (5) The State Board of Education and the State Board of Regents shall annually report
             310      to the Public Education Appropriations Subcommittee:
             311          (a) an accounting of the money appropriated for concurrent enrollment; and
             312          (b) a justification of the split described in Subsections (1)(a) and (b).
             313          Section 6. Section 53A-17a-125 is amended to read:
             314           53A-17a-125. Appropriation for retirement and Social Security.
             315          (1) The employee's retirement contribution shall be 1% for employees who are under
             316      the state's contributory retirement program.
             317          (2) The employer's contribution under the state's contributory retirement program is
             318      determined under Section 49-12-301 , subject to the 1% contribution under Subsection (1).
             319          (3) (a) The employer-employee contribution rate for employees who are under the
             320      state's noncontributory retirement program is determined under Section 49-13-301 .
             321          (b) The same contribution rate used under Subsection (3)(a) shall be used to calculate
             322      the appropriation for charter schools described under Subsection (5).
             323          (4) (a) Money appropriated to the State Board of Education in Section 53A-17a-104 for
             324      retirement and Social Security monies shall be allocated to school districts and charter schools
             325      based on a district's or charter school's total weighted pupil units compared to the total
             326      weighted pupil units for all districts in the state.
             327          (b) [The] Subject to budget constraints, monies needed to support retirement and
             328      Social Security shall be determined by taking the district's prior year allocation and adjusting it
             329      for:
             330          (i) student growth;
             331          (ii) the percentage increase in the value of the weighted pupil unit; and
             332          (iii) the effect of any change in the rates for retirement, Social Security, or both.
             333          (5) A charter school that has made an election of nonparticipation in the Utah State
             334      Retirement Systems in accordance with Section 53A-1a-512 and Title 49, Utah State
             335      Retirement and Insurance Benefit Act, shall use the funds described under this section for


             336      retirement to provide its own compensation, benefit, and retirement programs.
             337          Section 7. Section 53A-17a-127 is amended to read:
             338           53A-17a-127. Eligibility for state-supported transportation -- Approved bus
             339      routes -- Additional local tax.
             340          (1) A student eligible for state-supported transportation means:
             341          (a) a student enrolled in kindergarten through grade six who lives at least 1-1/2 miles
             342      from school;
             343          (b) a student enrolled in grades seven through 12 who lives at least two miles from
             344      school; and
             345          (c) a student enrolled in a special program offered by a school district and approved by
             346      the State Board of Education for trainable, motor, multiple-disabled, or other students with
             347      severe disabilities who are incapable of walking to school or where it is unsafe for students to
             348      walk because of their disabling condition, without reference to distance from school.
             349          (2) If a school district implements double sessions as an alternative to new building
             350      construction, with the approval of the State Board of Education, those affected elementary
             351      school students residing less than 1-1/2 miles from school may be transported one way to or
             352      from school because of safety factors relating to darkness or other hazardous conditions as
             353      determined by the local school board.
             354          (3) (a) The State Board of Education shall distribute transportation monies to school
             355      districts based on:
             356          (i) an allowance per mile for approved bus routes;
             357          (ii) an allowance per hour for approved bus routes; and
             358          [(iii) an annual allowance for equipment and overhead costs based on approved bus
             359      routes and the age of the equipment; and]
             360          [(iv)] (iii) a minimum allocation for each school district eligible for transportation
             361      funding.
             362          (b) The State Board of Education shall distribute appropriated transportation funds
             363      based on the prior year's eligible transportation costs as legally reported under Subsection
             364      53A-17a-126 (3).
             365          [(c) In order for a bus to be considered for the equipment allowance under Subsection
             366      (3)(a)(iii), it must meet federal and state regulations and standards for school buses.]


             367          [(d)] (c) The State Board of Education shall annually review the allowance per mile[,]
             368      and the allowance per hour[, and the annual equipment and overhead allowance] and adjust the
             369      [allowance] allowances to reflect current economic conditions.
             370          (4) (a) Approved bus routes for funding purposes shall be determined on fall data
             371      collected by October 1.
             372          (b) Approved route funding shall be determined on the basis of the most efficient and
             373      economic routes.
             374          (5) A Transportation Advisory Committee with representation from local school
             375      superintendents, business officials, school district transportation supervisors, and the state
             376      superintendent's staff shall serve as a review committee for addressing school transportation
             377      needs, including recommended approved bus routes.
             378          (6) (a) A local school board may provide for the transportation of students who are not
             379      eligible under Subsection (1), regardless of the distance from school, from:
             380          (i) general funds of the district; and
             381          (ii) a tax rate not to exceed .0003 per dollar of taxable value imposed on the district.
             382          (b) A local school board may use revenue from the tax to pay for transporting
             383      participating students to interscholastic activities, night activities, and educational field trips
             384      approved by the board and for the replacement of school buses.
             385          (c) (i) If a local school board levies a tax under Subsection (6)(a)(ii) of at least .0002,
             386      the state may contribute an amount not to exceed 85% of the state average cost per mile,
             387      contingent upon the Legislature appropriating funds for a state contribution.
             388          (ii) The state superintendent's staff shall distribute the state contribution according to
             389      rules enacted by the State Board of Education.
             390          (d) (i) The amount of state guarantee money which a school district would otherwise be
             391      entitled to receive under Subsection (6)(c) may not be reduced for the sole reason that the
             392      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             393      59-2-924 due to changes in property valuation.
             394          (ii) Subsection (6)(d)(i) applies for a period of two years following the change in the
             395      certified tax rate.
             396          Section 8. Section 53A-17a-133 is amended to read:
             397           53A-17a-133. State-supported voted leeway program authorized -- Election


             398      requirements -- State guarantee -- Reconsideration of the program.
             399          (1) An election to consider adoption or modification of a voted leeway program is
             400      required if initiative petitions signed by 10% of the number of electors who voted at the last
             401      preceding general election are presented to the local school board or by action of the board.
             402          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             403      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             404      special tax.
             405          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             406          (b) The district may maintain a school program which exceeds the cost of the program
             407      referred to in Section 53A-17a-145 with this voted leeway.
             408          (c) In order to receive state support the first year, a district must receive voter approval
             409      no later than December 1 of the year prior to implementation.
             410          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             411      to guarantee [$17.54] $25.25 per weighted pupil unit for each .0001 of the first .0016 per dollar
             412      of taxable value.
             413          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             414      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             415      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             416      taxable value if a school district levies a tax rate under both programs.
             417          (c) (i) Beginning July 1, [2005] 2009, the [$17.54] $25.25 guarantee under Subsections
             418      (3)(a) and (b) shall be indexed each year to the value of the weighted pupil unit by making the
             419      value of the guarantee equal to [.008544] .009798 times the value of the prior year's weighted
             420      pupil unit.
             421          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             422      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             423      the prior year's weighted pupil unit.
             424          (d) (i) The amount of state guarantee money to which a school district would otherwise
             425      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             426      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             427      pursuant to changes in property valuation.
             428          (ii) Subsection (3)(d)(i) applies for a period of five years following any such change in


             429      the certified tax rate.
             430          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             431      of the existing program unless the proposition submitted to the electors expressly so states.
             432          (b) A majority vote opposing a modification does not deprive the district of authority to
             433      continue an existing program.
             434          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             435      school board levies, the board must allow the electors, in an election, to consider modifying or
             436      discontinuing the program prior to a subsequent increase in other levies that would increase the
             437      total local school board levy.
             438          (d) Nothing contained in this section terminates, without an election, the authority of a
             439      school district to continue an existing voted leeway program previously authorized by the
             440      voters.
             441          (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
             442      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             443      section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without
             444      having to comply with the advertisement requirements of Section 59-2-918 , if:
             445          (a) the voted leeway is approved:
             446          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             447          (ii) within the four-year period immediately preceding the year in which the school
             448      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             449      the voted leeway; and
             450          (b) for a voted leeway approved or modified in accordance with this section on or after
             451      January 1, 2009, the school district complies with the requirements of Subsection (7).
             452          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             453      section that exceeds the certified tax rate without having to comply with the advertisement
             454      requirements of Section 59-2-919 if:
             455          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             456      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             457      under this section;
             458          (b) if the voted leeway was approved:
             459          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and


             460          (ii) within the four-year period immediately preceding the year in which the school
             461      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             462      the voted leeway; and
             463          (c) for a voted leeway approved or modified in accordance with this section on or after
             464      January 1, 2009, the school district complies with requirements of Subsection (7).
             465          (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
             466      electors regarding the adoption or modification of a voted leeway program shall contain the
             467      following statement:
             468          "A vote in favor of this tax means that (name of the school district) may increase
             469      revenue from this property tax without advertising the increase for the next five years."
             470          Section 9. Section 53A-17a-134 is amended to read:
             471           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             472          (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
             473      value to maintain a school program above the cost of the basic school program as follows:
             474          (a) a local school board shall use the monies generated by the tax for class size
             475      reduction within the school district;
             476          (b) if a local school board determines that the average class size in the school district is
             477      not excessive, it may use the monies for other school purposes but only if the board has
             478      declared the use for other school purposes in a public meeting prior to levying the tax rate; and
             479          (c) a district may not use the monies for other school purposes under Subsection (1)(b)
             480      until it has certified in writing that its class size needs are already being met and has identified
             481      the other school purposes for which the monies will be used to the State Board of Education
             482      and the state board has approved their use for other school purposes.
             483          (2) (a) The state shall contribute an amount sufficient to guarantee [$17.54] $25.25 per
             484      weighted pupil unit for each .0001 per dollar of taxable value.
             485          (b) The guarantee shall increase in the same manner as provided for the voted leeway
             486      guarantee in Subsections 53A-17a-133 (3)(c)(i) and (ii).
             487          (c) (i) The amount of state guarantee money to which a school district would otherwise
             488      be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
             489      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             490      pursuant to changes in property valuation.


             491          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
             492      the certified tax rate.
             493          (3) The levy authorized under this section is not in addition to the maximum rate of
             494      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             495      rate under that section.
             496          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             497      require voter approval, but the board may require voter approval if requested by a majority of
             498      the board.
             499          (5) An election to consider disapproval of the board-authorized levy is required, if
             500      within 60 days after the levy is established by the board, referendum petitions signed by the
             501      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             502      filed with the school district.
             503          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             504      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             505      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             506      next calendar year.
             507          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
             508      occur at a general election in even-numbered years, except that a vote required under this
             509      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             510      years that corresponds to the general election date. The school district shall pay for the cost of
             511      a special election.
             512          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             513      this section is governed by Section 53A-17a-133 .
             514          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             515      of the board subject to disapproval procedures specified in this section.
             516          (8) A board levy election does not require publication of a voter information pamphlet.
             517          Section 10. Section 53A-17a-135 is amended to read:
             518           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             519          (1) (a) In order to qualify for receipt of the state contribution toward the basic program
             520      and as its contribution toward its costs of the basic program, each school district shall impose a
             521      minimum basic tax rate per dollar of taxable value that generates [$260,731,750] $273,950,764


             522      in revenues statewide.
             523          (b) The preliminary estimate for the [2008-09] 2009-10 minimum basic tax rate is
             524      [.00125] .001303.
             525          (c) The State Tax Commission shall certify on or before June 22 the rate that generates
             526      [$260,731,750] $273,950,764 in revenues statewide.
             527          (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             528      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .
             529          (2) (a) The state shall contribute to each district toward the cost of the basic program in
             530      the district that portion which exceeds the proceeds of the levy authorized under Subsection
             531      (1).
             532          (b) In accord with the state strategic plan for public education and to fulfill its
             533      responsibility for the development and implementation of that plan, the Legislature instructs
             534      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             535      of the coming five years to develop budgets that will fully fund student enrollment growth.
             536          (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
             537      cost of the basic program in a school district, no state contribution shall be made to the basic
             538      program.
             539          (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
             540      the basic program shall be paid into the Uniform School Fund as provided by law.
             541          Section 11. Section 53A-17a-148 is amended to read:
             542           53A-17a-148. Use of nonlapsing balances.
             543          (1) As used in this section:
             544          (a) "Education entity" means a school district, charter school, or the Utah Schools for
             545      the Deaf and the Blind.
             546          (b) (i) "New educator" means a person who:
             547          (A) is an educator as defined in Section 53A-17a-153 ;
             548          (B) is hired by an education entity to begin teaching during the 2008-09 school year;
             549          (C) did not work in this state as an educator for an education entity during the 2007-08
             550      school year; and
             551          (D) has never received a signing bonus in this state.
             552          (ii) A new educator may include a person who is returning to education after one or


             553      more years of interrupted service.
             554          (2) The State Board of Education may use Minimum School Program nonlapsing
             555      balances to restore special education funding as follows:
             556          (a) up to $902,538 is authorized in fiscal year 2005-06; and
             557          (b) up to $902,538 is authorized in fiscal year 2006-07.
             558          (3) The State Board of Education shall [use] allocate $5,000,000 of Minimum School
             559      Program nonlapsing balances in fiscal year 2008-09 [as follows: (a) $5,000,000 shall be
             560      allocated] to education entities to provide one-time signing bonuses for new educators as
             561      provided under Subsection (4), including money for the following employer-paid benefits:
             562          [(i)] (a) retirement;
             563          [(ii)] (b) workers' compensation;
             564          [(iii)] (c) Social Security; and
             565          [(iv)] (d) Medicare[; and].
             566          [(b) $20,000,000 shall be allocated to education entities to provide one-time
             567      performance-based compensation as provided under Subsection (5).]
             568          (4) (a) Subject to the availability of funding, education entities shall provide a one-time
             569      signing bonus of $1,000 to a new educator.
             570          (b) If the total cost of bonuses and employer-paid benefits under Subsection (4)(a) for
             571      all education entities exceeds $5,000,000, all bonuses shall be reduced pro rata so that the total
             572      cost does not exceed $5,000,000.
             573          (c) To qualify for a bonus, a new educator shall:
             574          (i) be hired prior to October 1, 2008; and
             575          (ii) work for at least 90 days for the education entity.
             576          [(5) (a) The $20,000,000 for performance-based compensation shall be allocated to
             577      qualifying education entities on a per pupil basis.]
             578          [(b) (i) To receive an allocation under Subsection (5)(a), an education entity shall:]
             579          [(A) submit, prior to July 1, 2008, a written performance-based compensation plan to
             580      the State Board of Education that conforms to guidelines established by the State Board of
             581      Education in rule; and]
             582          [(B) receive approval of the plan by the State Board of Education.]
             583          [(ii) The performance-based compensation plan shall provide specific information


             584      about how the education entity intends to spend its allocation, including:]
             585          [(A) who is eligible for the performance-based compensation;]
             586          [(B) criteria for awarding performance-based compensation;]
             587          [(C) the instruments or assessments that may be used to measure or evaluate
             588      performance;]
             589          [(D) the amount of performance-based compensation that may be awarded; and]
             590          [(E) whether the performance-based compensation will be based on individual, team,
             591      or school-based performance, or a combination of those.]
             592          [(iii) The State Board of Education shall send the approved plans to the Executive
             593      Appropriations Committee and the Education Interim Committee by August 1, 2008 for review
             594      and comment.]
             595          [(c) (i) An education entity shall award performance-based compensation from monies
             596      distributed under this section for employee performance during the 2008-09 school year.]
             597          [(ii) Performance-based compensation monies may only be used in accordance with an
             598      education entity's performance-based compensation plan.]
             599          [(iii) If an education entity uses performance-based compensation monies for purposes
             600      other than those stated in this Subsection (5) and its performance-based compensation plan, the
             601      education entity shall reimburse the monies that were improperly used.]
             602          [(d) An education entity that awards performance-based compensation from monies
             603      distributed under this section shall report the following information to the Executive
             604      Appropriations Committee by June 30, 2009:]
             605          [(i) the number of employees who received performance-based compensation;]
             606          [(ii) the total number of employees;]
             607          [(iii) the average performance-based compensation awarded to employees; and]
             608          [(iv) the maximum performance-based compensation awarded to an employee.]
             609          [(6)] (5) The State Board of Education may make rules as necessary to administer this
             610      section, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             611          Section 12. Section 53A-21-501 is amended to read:
             612           53A-21-501. State contribution to capital outlay programs.
             613          (1) As an ongoing appropriation subject to future budget constraints, there is
             614      appropriated from the Uniform School Fund for fiscal year [2008-09, $27,288,900] 2009-10,


             615      $22,499,700 to the State Board of Education for the capital outlay programs created in this
             616      chapter.
             617          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
             618      distribute:
             619          (a) [$24,358,000] $19,568,800 in accordance with the Capital Outlay Foundation
             620      Program pursuant to Section 53A-21-202 ; and
             621          (b) $2,930,900 in accordance with the Capital Outlay Enrollment Growth Program
             622      pursuant to Section 53A-21-302 .
             623          Section 13. One-time appropriations for fiscal year 2009-10.
             624          (1) There is appropriated from the Uniform School Fund to the State Board of
             625      Education for fiscal year 2009-10 only:
             626          (a) $75,597,800 for Social Security and retirement as provided in Section
             627      53A-17a-125 ; and
             628          (b) $750,000 for critical language and dual immersion pilot programs as provided in
             629      Sections 53A-15-104 and 53A-15-105 .
             630          (2) There is appropriated from Federal Funds - American Recovery and Reinvestment
             631      Act (H.R. 1, 111th Congress) to the State Board of Education for fiscal year 2009-10 only,
             632      $207,176,000 for Social Security and retirement as provided in Section 53A-17a-125 .
             633          Section 14. One-time appropriation for classroom supplies.
             634          (1) There is appropriated from the Uniform School Fund to the State Board of
             635      Education for fiscal year 2009-10 only, $10,000,000 for classroom supplies and materials.
             636          (2) (a) Of the amount appropriated in Subsection (1), the board shall distribute
             637      $7,500,000 to classroom teachers in school districts, the Utah Schools for the Deaf and the
             638      Blind, and charter schools on the basis of the number of classroom teachers in each school as
             639      compared to the total number of classroom teachers.
             640          (b) Teachers shall receive up to the following amounts:
             641          (i) a teacher on salary schedule steps one through three teaching in grades kindergarten
             642      through six or preschool handicapped - $360;
             643          (ii) a teacher on salary schedule steps one through three teaching in grades seven
             644      through twelve - $310;
             645          (iii) a teacher on salary schedule step four or higher teaching in grades kindergarten


             646      through six or preschool handicapped - $285; and
             647          (iv) a teacher on salary schedule step four or higher teaching in grades seven through
             648      twelve - $235.
             649          (c) If the appropriation in Subsection (1) is not sufficient to provide to each teacher the
             650      full amount allowing under Subsection (2)(b), teachers on salary schedule steps one through
             651      three shall receive the full amount allowed with the remaining monies apportioned to all other
             652      teachers.
             653          (3) (a) Of the amount appropriated in Subsection (1), the State Board of Education
             654      shall distribute $2,500,000 for classroom supplies and materials in accordance with a
             655      distribution formula established by rule.
             656          (b) The State Board of Education shall make rules in accordance with Subsections
             657      (3)(c) and (d) and Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the
             658      distribution of the $2,500,000.
             659          (c) The rules shall give priority to teachers in any grade in the first year of teaching in
             660      the awarding of the monies.
             661          (d) The rules may allow the monies to be distributed to teachers in any grade in the
             662      second through fifth year of teaching.
             663          (4) Teachers shall spend the money appropriated in Subsection (1) for school supplies,
             664      materials, or field trips under rules adopted by the State Board of Education.
             665          (5) As used in this section, "classroom teacher" or "teacher" means permanent teacher
             666      positions filled by one teacher or two or more job-sharing teachers:
             667          (a) who are licensed personnel;
             668          (b) who are paid on the teacher's salary schedule;
             669          (c) who are hired for an entire contract period; and
             670          (d) whose primary function is to provide instructional or a combination of instructional
             671      and counseling services to students in public schools.
             672          Section 15. One-time appropriations for fiscal year 2008-09.
             673          (1) There is appropriated from the Uniform School Fund to the State Board of
             674      Education for fiscal year 2008-09 only:
             675          (a) $11,016,400 for the contribution of the state toward the cost of the minimum school
             676      program as provided in Subsection 53A-17a-104 (1);


             677          (b) ($91,200,000) for the offset of the ongoing locally determined reduction as
             678      provided in Subsection (1) of Uncodified Section 5, Appropriation, in 2009 General Session,
             679      S.B. 4, Current School Year Supplemental Minimum School Program Budget Adjustments;
             680          (c) $1,585,900 for the Capital Outlay Foundation Program for allocation pursuant to
             681      Section 53A-21-202 ;
             682          (d) $1,585,800 for the Capital Outlay Enrollment Growth Program for allocation
             683      pursuant to Section 53A-21-302 ; and
             684          (e) ($3,983,600) for educator salary adjustments as provided in Section 53A-17a-153 .
             685          (2) There is appropriated from Federal Funds - American Recovery and Reinvestment
             686      Act (H.R. 1, 111th Congress) to the State Board of Education for fiscal year 2008-09 only,
             687      $91,200,000.
             688          Section 16. Effective date.
             689          This bill takes effect on July 1, 2009, except:
             690          (1) if approved by two-thirds of all the members elected to each house, Uncodified
             691      Section 15, One-time appropriations for fiscal year 2008-09, takes effect upon approval by the
             692      governor, or the day following the constitutional time limit of Utah Constitution Article VII,
             693      Section 8, without the governor's signature, or in the case of a veto, the date of veto override;
             694      and
             695          (2) Section 53A-1a-513 takes effect on May 12, 2009.
             696          Section 17. Coordinating H.B. 2 with S.B. 4 -- Superseding and substantive
             697      amendments.
             698          If this H.B. 2 and S.B. 4, Current School Year Supplemental Minimum School Program
             699      Budget Adjustments, both pass, it is the intent of the Legislature that when the Office of
             700      Legislative Research and General Counsel prepares the Utah Code database for publication,
             701      effective July 1, 2009:
             702          (1) the amendments to Subsection 53A-17a-104 (1) in this H.B. 2 shall replace the
             703      amendments to Subsection 53A-17a-104 (1) in S.B. 4;
             704          (2) Subsection 53A-17a-104 (2)(q) in S.B. 4 shall be deleted;
             705          (3) Subsection 53A-17a-104 (2)(gg) in S.B. 4 shall be renumbered and read as follows:
             706      "(dd) educator salary adjustments, $148,260,200;"
             707          (4) the word "and" in Subsection 53A-17a-104 (2)(oo) in S.B. 4 shall be reinserted;


             708          (5) the amendment to Subsection 53A-17a-104 (2)(pp) in S.B. 4 shall be deleted; and
             709          (6) Subsection 53A-17a-104 (qq) in S.B. 4 shall be deleted.


[Bill Documents][Bills Directory]