Chief Sponsor: Dean Sanpei

Senate Sponsor: Lyle W. Hillyard


8     General Description:
9          This bill supplements or reduces appropriations previously provided for school districts,
10     charter schools, and certain state education agencies for the fiscal year beginning July 1,
11     2015, and ending June 30, 2016, and modifies related budgetary provisions.
12     Highlighted Provisions:
13          This bill:
14          ▸     extends, for an additional year, a provision that allows the number of weighted pupil
15     units assigned to a charter school to be based on the higher of:
16               •     October 1 enrollment in the current school year; or
17               •     average daily membership in the prior school year plus growth;
18          ▸     provides budget increases and decreases for the use and support of certain state
19     education agencies;
20          ▸     provides budget increases and decreases for programs that support school districts
21     and charter schools;
22          ▸     provides intent language;
23          ▸     establishes the value of the weighted pupil unit for fiscal year 2015-16 at:
24               •     $2,837 for the special education and career and technology add-on programs;
25     and
26               •     $3,092 for all other programs; and
27          ▸     makes technical changes, including deleting outdated language.

28     Money Appropriated in this Bill:
29          This bill appropriates for fiscal year 2016:
30          ▸     $635,000 from the General Fund;
31          ▸     $7,000,000 from the Uniform School Fund;
32          ▸     $246,430,500 from the Education Fund; and
33          ▸     $24,983,100 from various sources as detailed in this bill.
34     Other Special Clauses:
35          This bill provides a special effective date.
36     Utah Code Sections Affected:
37     AMENDS:
38          53A-1a-513, as last amended by Laws of Utah 2013, Chapter 470
39     Uncodified Material Affected:

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 53A-1a-513 is amended to read:
44          53A-1a-513. Funding for charter schools.
45          (1) As used in this section:
46          (a) "Charter school students' average local revenues" means the amount determined as
47     follows:
48          (i) for each student enrolled in a charter school on the previous October 1, calculate the
49     district per pupil local revenues of the school district in which the student resides;
50          (ii) sum the district per pupil local revenues for each student enrolled in a charter
51     school on the previous October 1; and
52          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
53     enrolled in charter schools on the previous October 1.
54          (b) "District local property tax revenues" means the sum of a school district's revenue
55     received from the following levies:
56          [(i) (A) a voted levy imposed under Section 53A-17a-133;]
57          [(B) a board levy imposed under Section 53A-17a-134;]
58          [(C) a 10% of basic levy imposed under Section 53A-17a-145;]

59          [(D) a tort liability levy imposed under Section 63G-7-704;]
60          [(E) a capital outlay levy imposed under Section 53A-16-107; and]
61          [(F) a voted capital outlay levy imposed under Section 53A-16-110; or]
62          [(ii) (A)] (i) a voted local levy imposed under Section 53A-17a-133;
63          [(B)] (ii) a board local levy imposed under Section 53A-17a-164, excluding revenues
64     expended for:
65          [(I)] (A) recreational facilities and activities authorized under Title 11, Chapter 2,
66     Playgrounds;
67          [(II)] (B) pupil transportation, up to the amount of revenue generated by a .0003 per
68     dollar of taxable value of the school district's board local levy; and
69          [(III)] (C) the K-3 Reading Improvement Program, up to the amount of revenue
70     generated by a .000121 per dollar of taxable value of the school district's board local levy; and
71          [(C)] (iii) a capital local levy imposed under Section 53A-16-113.
72          (c) "District per pupil local revenues" means an amount equal to the following, using
73     data from the most recently published school district annual financial reports and state
74     superintendent's annual report:
75          (i) district local property tax revenues; divided by
76          (ii) the sum of:
77          (A) a school district's average daily membership; and
78          (B) the average daily membership of a school district's resident students who attend
79     charter schools.
80          (d) "Resident student" means a student who is considered a resident of the school
81     district under Title 53A, Chapter 2, Part 2, District of Residency.
82          (e) "Statewide average debt service revenues" means the amount determined as
83     follows, using data from the most recently published state superintendent's annual report:
84          (i) sum the revenues of each school district from the debt service levy imposed under
85     Section 11-14-310; and
86          (ii) divide the sum calculated under Subsection (1)(e)(i) by statewide school district
87     average daily membership.
88          (2) (a) Charter schools shall receive funding as described in this section, except
89     Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).

90          (b) Charter schools authorized by local school boards that are converted from district
91     schools or operate in district facilities without paying reasonable rent shall receive funding as
92     prescribed in Section 53A-1a-515.
93          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school shall
94     receive state funds, as applicable, on the same basis as a school district receives funds.
95          (b) For the [2013-14 and 2014-15 school years] 2015-16 school year, the number of
96     weighted pupil units assigned to a charter school for the kindergarten and grades 1 through 12
97     programs of the Basic School Program shall be:
98          (i) based on the higher of:
99          (A) October 1 enrollment in the current school year; or
100          (B) average daily membership in the prior school year plus growth as determined under
101     Section 53A-17a-106; and
102          (ii) weighted as provided in Subsection (3)(c).
103          (c) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
104     schools, charter school pupils shall be weighted, where applicable, as follows:
105          (i) .55 for kindergarten pupils;
106          (ii) .9 for pupils in grades 1 through 6;
107          (iii) .99 for pupils in grades 7 through 8; and
108          (iv) 1.2 for pupils in grades 9 through 12.
109          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
110     resident student of the school district who is enrolled in a charter school on October 1 equal to
111     25% of the lesser of:
112          (A) district per pupil local revenues; or
113          (B) charter school students' average local revenues.
114          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
115     established under Chapter 28, Utah School Bond Guaranty Act.
116          (b) The State Board of Education shall:
117          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
118     state funds the school district is authorized to receive under Chapter 17a, Minimum School
119     Program Act; and
120          (ii) remit the money to the student's charter school.

121          (c) Notwithstanding the method used to transfer school district revenues to charter
122     schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
123     schools under this section from:
124          (i) unrestricted revenues available to the school district; or
125          (ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
126     allocations to charter schools attributed to each of the revenue sources listed in Subsection
127     (1)(b).
128          (d) (i) Subject to future budget constraints, the Legislature shall provide an
129     appropriation for charter schools for each student enrolled on October 1 to supplement the
130     allocation of school district revenues under Subsection (4)(a).
131          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
132     state for a charter school student shall be the sum of:
133          (A) charter school students' average local revenues minus the allocation of school
134     district revenues under Subsection (4)(a); and
135          (B) statewide average debt service revenues.
136          (iii) If the total of a school district's allocation for a charter school student under
137     Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
138     $1427, the state shall provide an additional supplement so that a charter school receives at least
139     $1427 per student under this Subsection (4).
140          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
141     amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
142     among charter schools in proportion to each charter school's enrollment as a percentage of the
143     total enrollment in charter schools.
144          (B) If the State Board of Education makes adjustments to Minimum School Program
145     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
146     (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.
147          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
148     expended for funding school facilities only.
149          (5) Charter schools are eligible to receive federal funds if they meet all applicable
150     federal requirements and comply with relevant federal regulations.
151          (6) The State Board of Education shall distribute funds for charter school students

152     directly to the charter school.
153          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
154     transportation funding.
155          (b) The board shall also adopt rules relating to the transportation of students to and
156     from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127.
157          (c) The governing body of the charter school may provide transportation through an
158     agreement or contract with the local school board, a private provider, or with parents.
159          (8) (a) (i) In accordance with Section 53A-1a-513.5, the State Charter School Board
160     may allocate grants for start-up costs to charter schools from money appropriated for charter
161     school start-up costs.
162          (ii) The governing board of a charter school that receives money from a grant under
163     Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
164     charter school.
165          (b) The State Board of Education shall coordinate the distribution of federal money
166     appropriated to help fund costs for establishing and maintaining charter schools within the
167     state.
168          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
169     endowment, gift, or donation of any property made to the school for any of the purposes of this
170     part.
171          (b) It is unlawful for any person affiliated with a charter school to demand or request
172     any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
173     with the charter school as a condition for employment or enrollment at the school or continued
174     attendance at the school.
175          Section 2. One-time appropriation for classroom supplies.
176          (1) As used in this section, "classroom teacher" or "teacher" means permanent teacher
177     positions filled by one teacher or two or more job-sharing teachers:
178          (a) who are licensed personnel;
179          (b) who are paid on the teacher's salary schedule;
180          (c) who are hired for an entire contract period; and
181          (d) whose primary function is to provide instructional or a combination of instructional
182     and counseling services to students in public schools.

183          (2) (a) The State Board of Education shall distribute money appropriated for teacher
184     supplies and materials to classroom teachers in school districts, the Utah Schools for the Deaf
185     and the Blind, and charter schools on the basis of the number of classroom teachers in each
186     school as compared to the total number of classroom teachers.
187          (b) Teachers shall receive up to the following amounts:
188          (i) $250 for a teacher on salary schedule steps one through three teaching in
189     kindergarten through grade 6 or preschool handicapped;
190          (ii) $200 for a teacher on salary schedule steps one through three teaching in grades 7
191     through 12;
192          (iii) $175 for a teacher on salary schedule step four or higher teaching in kindergarten
193     through grade 6 or preschool handicapped; and
194          (iv) $150 for a teacher on salary schedule step four or higher teaching in grades 7
195     through 12.
196          (c) If the appropriation is not sufficient to provide to each teacher the full amount
197     allowed under Subsection (2)(b), teachers on salary schedule steps one through three shall
198     receive the full amount allowed with the remaining money apportioned to all other teachers.
199          (3) Teachers shall spend money appropriated for classroom supplies and materials for
200     school supplies, materials, or field trips under rules adopted by the State Board of Education.
201          Section 3. Operating and capital budgets -- FY 2016 appropriations for state
202     education agencies, school districts, and charter schools -- Value of the weighted pupil
203     unit.
204          (1) Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act,
205     for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following sums of
206     money are appropriated from resources not otherwise appropriated, or reduced from amounts
207     previously appropriated, out of the funds or accounts indicated. These sums of money are in
208     addition to any amounts previously appropriated for fiscal year 2016.
209          (2) The value of each weighted pupil unit (WPU) for fiscal year 2015-16 is increased
210     from the value of the WPU for fiscal year 2015-16 established in S.B. 1, Public Education Base
211     Budget Amendments, and set at:
212          (a) $2,837 for:
213          (i) Special Education -- Add-on; and

214          (ii) Career & Technical Education District Add-on; and
215          (b) $3,092 for all other programs.
State Board of Education - Minimum School Program

Item 1
To State Board of Education - Minimum School Program - Basic School Program
218          From Uniform School Fund

219          From Uniform School Fund, One-time

220          From Education Fund

221          From Education Fund, One-time

222          From Local Revenue

223          From Beginning Nonlapsing Appropriation Balances

224          From Closing Nonlapsing Appropriation Balances

225          Schedule of Programs:
226               Kindergarten (-896 WPUs)                     735,300
227               Grades 1 - 12 (7,694 WPUs)                      90,405,400
228               Necessarily Existent Small Schools                 1,122,800
229               Professional Staff (710 WPUs)                 8,560,300
230               Administrative Costs           180,600
231               Special Education - Add-on (2,143 WPUs)            14,181,700
232               Special Education - Preschool (125 WPUs)            1,556,900
233               Special Education - Self-contained (-360 WPUs)      601,100
234               Special Education - Extended School Year           51,500
235               Special Education - State Programs (351 WPUs)      1,434,100
236               Career and Technical Education - Add-on            4,375,300
237                    (380 WPUs)
238               Class Size Reduction (499 WPUs)                6,217,800
239          The Legislature intends that the State Board of Education develop minimum program
240     standards, including maximum class size limits in kindergarten through grade 3, that local
241     education agencies must meet in order to continue to receive Class Size Reduction funding.
242     The Legislature also intends that the State Board of Education develop an estimate of the cost
243     necessary to limit class sizes in kindergarten through grade 3, without impacting class sizes in
244     grades 4 through 12. The Legislature also intends that the State Board of Education report the

245     standards and estimated costs to the Education Interim Committee and the Public Education
246     Appropriations Subcommittee by October 31, 2015.
Item 2
To State Board of Education - Minimum School Program - Related to Basic School
248     Programs
249          From Education Fund

250          From Education Fund, One-time

251          From Interest and Dividends Account

252          From Beginning Nonlapsing Appropriation Balances

253          From Closing Nonlapsing Appropriation Balances

254          Schedule of Programs:
255               To and From School - Pupil Transportation           9,852,200
256               Flexible Allocation - WPU Distribution           23,106,600
257               Enhancement for At-Risk Students                1,304,600
258               Youth in Custody                          1,065,500
259               Adult Education                          523,400
260               Enhancement for Accelerated Students           232,800
261               Concurrent Enrollment                     3,496,100
262               School LAND Trust Program                2,149,300
263               Charter School Local Replacement           25,015,000
264               Charter School Administration                83,200
265               K-3 Reading Improvement                     2,600,000
266               Educator Salary Adjustments                     3,430,000
267               USFR Teacher Salary Supplement Restricted 1,500,000
268                    Account          
269               School Library Books and Electronic Resources      1,050,000
270               Matching Funds for School Nurses                60,000
271               Critical Languages and Dual Immersion           600,000
272               USTAR Centers (Year-Round Math and Science)      6,200,000
273               Teacher Supplies and Materials                6,000,000
274               Beverley Taylor Sorenson Elementary Arts           4,500,000
275               Civics Education - State Capitol Field Trips           150,000

276               K-12 Digital Literacy                          5,000,000
277               Special Education - Intensive Services           2,000,000
278          The Legislature intends that the appropriation for the Flexible Allocation - WPU
279     Distribution program be distributed to school districts and charter schools on the basis of the
280     number of weighted pupil units in a school district or charter school compared to the total
281     number of weighted pupil units and that the State Board of Education provide for the reporting
282     of school district and charter school expenditures of the program money.
283          The Legislature intends that the State Board of Education review the Pupil
284     Transportation Allocation Formula and recommend ways to improve the formula to increase
285     efficiency, simplify allocation methodology to school districts, and provide incentives for
286     alternative transportation methods. The Legislature further intends that the State Board of
287     Education report its recommendations to the Education Interim Committee and the Public
288     Education Appropriations Subcommittee by October 31, 2015.
289          The Legislature intends that the State Board of Education and State Board of Regents
290     provide joint recommendations on how to ensure that each concurrent enrollment course is
291     taught by a qualified instructor, that credits earned by students count towards major and minor
292     degree requirements at state colleges and universities, and that students are advised on the
293     transferability of credits to private and out of state institutions. The Legislature also intends
294     that these recommendations be reported to the Education Interim Committee and the Public
295     Education Appropriations Committee by October 31, 2015.
Item 3
To State Board of Education - Minimum School Program - Voted and Board Local
297     Levy Programs
298          From Education Fund

299          From Local Revenue

300          Schedule of Programs:
301               Voted Local Levy Program                     28,779,000
302               Board Local Levy Program                     6,700,700
State Board of Education

Item 4
To State Board of Education - State Office of Education
305          From Education Fund

306          From Education Fund, One-time

307          From General Fund Restricted - Mineral Lease

308          From General Fund Restricted - Substance Abuse Prevention

309          From Interest and Dividends Account

310          From Revenue Transfers - Indirect Costs

311          Schedule of Programs:
312               Assessment and Accountability                206,600
313               Educational Equity                          (37,100)
314               Board and Administration                     6,159,300
315               Business Services                          58,400
316               Career and Technical Education                (388,200)
317               District Computer Services                     (401,000)
318               Federal Elementary and Secondary Education Act      (166,300)
319               Law and Legislation                          (28,500)
320               Public Relations                     (12,700)
321               School Trust                               (48,200)
322               Special Education                          (183,600)
323               Teaching and Learning                     (255,300)
324          The Legislature intends that the State Board of Education use any nonlapsing balances
325     generated from the licensing of Student Assessment of Growth and Excellence (SAGE)
326     questions to other states to develop additional assessment questions and provide professional
327     learning for Utah educators.
328          The Legislature intends that the State Board of Education use the revenue bond savings
329     of $264,700 from the Education Fund to support a portion of the State Board of Education's
330     Risk Mitigation Plan.
Item 5
To State Board of Education - Utah State Office of Education - Initiative Programs
332          From General Fund, One-time

333          From Education Fund

334          From Education Fund, One-time

335          From Revenue Transfers - Indirect Costs

336          Schedule of Programs:
337               Contracts and Grants                          50,000

338               Electronic High School                     (14,300)
339               Upstart Early Childhood Education                1,000,000
340               ProStart Culinary Arts Program                300,000
341               General Financial Literacy                     (5,600)
342               Carson Smith Scholarships                     623,800
343               Early Intervention                          3,000,000
Item 6
To State Board of Education - State Charter School Board
345          From Education Fund

346          From Revenue Transfers - Indirect Costs

347          Schedule of Programs:
348               State Charter School Board                     150,900
Item 7
To State Board of Education - Educator Licensing Professional Practices
350          From Professional Practices Restricted Subfund

351          From Revenue Transfers - Indirect Costs

352          Schedule of Programs:
353               Educator Licensing                          (105,100)
Item 8
To State Board of Education - State Office of Education - Child Nutrition
355          From Federal Funds

356          From Revenue Transfers - Indirect Costs

357          Schedule of Programs:
358               Child Nutrition                     (19,327,000)
Item 9
To State Board of Education - Child Nutrition - Federal Commodities
360          From Federal Funds

361          Schedule of Programs:
362               Child Nutrition - Federal Commodities           19,159,300
Item 10
To State Board of Education - Fine Arts Outreach
364          From Education Fund

365          From Education Fund, One-time

366          Schedule of Programs:
367               Professional Outreach Programs                600,000
368               Requests for Proposals                     250,000

Item 11
To State Board of Education - Science Outreach
370          From Education Fund

371          Schedule of Programs:
372               Informal Science Education Enhancement           1,790,000
Item 12
To State Board of Education - Utah Schools for the Deaf and the Blind
374          From Education Fund

375          From Education Fund, One-time

376          Schedule of Programs:
377               Instructional Services                          300,000
378               Support Services                          1,552,000
379          Section 4. Effective date.
380          This bill takes effect on July 1, 2015.

Legislative Review Note
     as of 3-9-15 11:52 AM

Office of Legislative Research and General Counsel