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First Substitute H.B. 109

Representative Ken Ivory proposes the following substitute bill:


             1     
PUBLIC EDUCATION CAPITAL FUNDING EQUALIZATION

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ken Ivory

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies and provides funding for the Capital Outlay Enrollment Growth
             10      Program.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies eligibility requirements for a school district to receive funds through the
             14      Capital Outlay Enrollment Growth Program;
             15          .    creates a restricted account known as the Enrollment Growth Account;
             16          .    requires a portion of an Education Fund revenue surplus to be deposited in the
             17      Enrollment Growth Account;
             18          .    requires a portion of unexpended balances in certain programs of the Minimum
             19      School Program at the end of the fiscal year to be deposited in the Enrollment
             20      Growth Account; and
             21          .    requires the State Board of Education to allocate money appropriated from the
             22      Enrollment Growth Account to school districts eligible to receive funds through the
             23      Capital Outlay Enrollment Growth Program.    
             24      Money Appropriated in this Bill:
             25          This bill appropriates in fiscal year 2015:


             26          .    to School Building Programs as a one-time appropriation:
             27              .    from the Education Fund, one-time, $61,000,000.
             28      Other Special Clauses:
             29          This bill takes effect on July 1, 2014.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32           53A-17a-105 , as last amended by Laws of Utah 2013, Chapter 310
             33           53A-21-301 , as last amended by Laws of Utah 2010, Chapter 185
             34      ENACTS:
             35           53A-21-303 , Utah Code Annotated 1953
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 53A-17a-105 is amended to read:
             39           53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
             40      School Program allocations.
             41          (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
             42      in a program is underestimated, the State Board of Education shall reduce the value of the
             43      weighted pupil unit in that program so that the total amount paid for the program does not
             44      exceed the amount appropriated for the program.
             45          (2) If the number of weighted pupil units in a program is overestimated, the State
             46      Board of Education shall spend excess money appropriated for the following purposes giving
             47      priority to the purpose described in Subsection (2)(a):
             48          (a) to support the value of the weighted pupil unit in a program within the basic
             49      state-supported school program in which the number of weighted pupil units is underestimated;
             50          (b) to support the state guarantee per weighted pupil unit provided under the voted
             51      local levy program established in Section 53A-17a-133 or the board local levy program
             52      established in Section 53A-17a-164 , if:
             53          (i) local contributions to the voted local levy program or board local levy program are
             54      overestimated; or
             55          (ii) the number of weighted pupil units within school districts qualifying for a
             56      guarantee is underestimated;


             57          (c) to support the state supplement to local property taxes allocated to charter schools,
             58      if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4); or
             59          (d) to support a school district with a loss in student enrollment as provided in Section
             60      53A-17a-139 .
             61          (3) If local contributions from the minimum basic tax rate imposed under Section
             62      53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
             63      weighted pupil unit for all programs within the basic state-supported school program so the
             64      total state contribution to the basic state-supported school program does not exceed the amount
             65      of state funds appropriated.
             66          (4) If local contributions from the minimum basic tax rate imposed under Section
             67      53A-17a-135 are underestimated, the State Board of Education shall:
             68          (a) spend the excess local contributions for the purposes specified in Subsection (2),
             69      giving priority to supporting the value of the weighted pupil unit in programs within the basic
             70      state-supported school program in which the number of weighted pupil units is underestimated;
             71      and
             72          (b) reduce the state contribution to the basic state-supported school program so the
             73      total cost of the basic state-supported school program does not exceed the total state and local
             74      funds appropriated to the basic state-supported school program plus the local contributions
             75      necessary to support the value of the weighted pupil unit in programs within the basic
             76      state-supported school program in which the number of weighted pupil units is underestimated.
             77          (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
             78      reduce the guarantee per weighted pupil unit provided under the voted local levy program
             79      established in Section 53A-17a-133 or board local levy program established in Section
             80      53A-17a-164 , if:
             81          (a) local contributions to the voted local levy program or board local levy program are
             82      overestimated; or
             83          (b) the number of weighted pupil units within school districts qualifying for a
             84      guarantee is underestimated.
             85          (6) [Money] Except as provided in Section 53A-21-303 , money appropriated to the
             86      State Board of Education is nonlapsing.
             87          (7) The State Board of Education shall report actions taken by the board under this


             88      section to the Office of the Legislative Fiscal Analyst and the Governor's Office of
             89      Management and Budget.
             90          Section 2. Section 53A-21-301 is amended to read:
             91           53A-21-301. Capital Outlay Enrollment Growth Program -- Definitions.
             92          (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
             93      outlay funding to school districts experiencing net enrollment increases.
             94          (2) As used in this part:
             95          (a) "Account" means the Enrollment Growth Account created in Section 53A-21-303 .
             96          [(a)] (b) "Average annual net enrollment increase" means the quotient of:
             97          (i) (A) enrollment in the prior fiscal year, based on October 1 enrollment counts; minus
             98          (B) enrollment in the year four years prior, based on October 1 enrollment counts;
             99      divided by
             100          (ii) three.
             101          (c) "Education Fund revenue surplus" has the meaning defined in Section 63J-1-313 .
             102          (d) "Education Fund revenue surplus balance" means the balance of an Education Fund
             103      revenue surplus remaining after the Division of Finance:
             104          (i) transfers Education Fund revenue surplus money to the Education Budget Reserve
             105      Account as required by Section 63J-1-313 ; and
             106          (ii) transfers from the Education Fund revenue surplus any year-end contingency
             107      appropriations, year-end set-asides, or other year-end transfers required by law.
             108          [(b)] (e) "Eligible district" or "eligible school district" means a school district that:
             109          (i) has an average annual net enrollment increase; and
             110          (ii) has a property tax base per ADM in the year two years prior that is less than [two
             111      times] the statewide average property tax base per ADM in the year two years prior.
             112          (f) "Operating deficit" has the meaning defined in Section 63J-1-313 .
             113          Section 3. Section 53A-21-303 is enacted to read:
             114          53A-21-303. Enrollment Growth Account.
             115          (1) There is created within the Education Fund a restricted account known as the
             116      Enrollment Growth Account.
             117          (2) The Enrollment Growth Account consists of:
             118          (a) an Education Fund revenue surplus transferred to the account pursuant to


             119      Subsection (3);
             120          (b) unexpended balances in the following programs within the Minimum School
             121      Program at the end of a fiscal year that are transferred to the account pursuant to Subsection
             122      (4):
             123          (i) the Basic Program; and
             124          (ii) the Related to Basic Programs; and
             125          (c) interest on account funds.
             126          (3) The Division of Finance shall transfer the Education Fund revenue surplus balance,
             127      up to a maximum $75,000,000, to the Enrollment Growth Account.
             128          (4) The Division of Finance shall transfer to the Enrollment Growth Account 33% of
             129      the unexpended balance in each of the following programs within the Minimum School
             130      Program at the end of a fiscal year:
             131          (a) the Basic Program; and
             132          (b) the Related to Basic Programs.
             133          (5) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
             134      Finance determines that an operating deficit exists, the Division of Finance may reduce the
             135      transfer to the Enrollment Growth Account by the amount necessary to eliminate the operating
             136      deficit.
             137          (6) Upon the appropriation of money from the Enrollment Growth Account to the State
             138      Board of Education, the State Board of Education shall allocate the money to an eligible school
             139      district as provided by Section 53A-21-302 .
             140          Section 4. Appropriation.
             141          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             142      the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following sums of money
             143      are appropriated from resources not otherwise appropriated, or reduced from amounts
             144      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             145      addition to any amounts previously appropriated for fiscal year 2015.
             146          To School Building Programs
             147              From Education Fund, one-time
$61,000,000

             148              Schedule of Programs:
             149                  Capital Outlay Enrollment Growth Program        $61,000,000


             150          Section 5. Effective date.
             151          This bill takes effect on July 1, 2014.


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