This document includes Senate Committee Amendments incorporated into the bill on Wed, Jan 27, 2016 at 9:47 AM by lpoole.
1     
SCHOOL FUNDING AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Howard A. Stephenson

5     
House Sponsor: Steve Eliason

6     

7     LONG TITLE
8     Committee Note:
9          The Charter School Funding Task Force recommended this bill.
10               Membership:     8 legislators     6 non-legislators
11               Legislative Vote:     6 voting for     2 voting against     0 absent
12     General Description:
13          This bill amends provisions related to charter school funding.
14     Highlighted Provisions:
15          This bill:
16          ▸      includes the existing definition of "basic program";
17          ▸      amends the definition of "district local property tax revenues" to include school
18     district revenues expended for recreational facilities and revenues received from
19     certain state guarantees;
20          ▸      amends the definition of "district per pupil local revenues" to include current year
21     estimates; Ŝ→ [and]
21a          ▸ amends the allocation that a school district makes for resident students enrolled in a
21b     charter school; and ←Ŝ
22          ▸     makes technical corrections.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:
29          53A-1a-513, as last amended by Laws of Utah 2015, Chapters 64 and 380
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 53A-1a-513 is amended to read:
33          53A-1a-513. Funding for charter schools.
34          (1) As used in this section:
35          (a) "Basic program" means the same as that term is defined in Section 53A-17a-103.
36          [(a)] (b) "Charter school students' average local revenues" means the amount
37     determined as follows:
38          (i) for each student enrolled in a charter school on the previous October 1, calculate the
39     district per pupil local revenues of the school district in which the student resides;
40          (ii) sum the district per pupil local revenues for each student enrolled in a charter
41     school on the previous October 1; and
42          (iii) divide the sum calculated under Subsection (1)[(a)](b)(ii) by the number of
43     students enrolled in charter schools on the previous October 1.
44          [(b)] (c) "District local property tax revenues" means the sum of a school district's
45     revenue received from the following [levies]:
46          (i) a voted local levy imposed under Section 53A-17a-133;
47          (ii) a board local levy imposed under Section 53A-17a-164, excluding revenues
48     expended for:
49          [(A) recreational facilities and activities authorized under Title 11, Chapter 2,
50     Playgrounds;]
51          [(B)] (A) pupil transportation, up to the amount of revenue generated by a .0003 per
52     dollar of taxable value of the school district's board local levy; and
53          [(C)] (B) the K-3 Reading Improvement Program, up to the amount of revenue
54     generated by a .000121 per dollar of taxable value of the school district's board local levy;
55     [and]
56          (iii) a capital local levy imposed under Section 53A-16-113[.]; and
57          (iv) a guarantee described in Section 53A-17a-133, 53A-17a-164, 53A-21-202, or
58     53A-21-302.
59          [(c)] (d) "District per pupil local revenues" means an amount equal to the following,
60     using data from the most recently published school district annual financial reports and state
61     superintendent's annual report[:], or for a fiscal year beginning on or after July 1, 2017, for the
62     next fiscal year, using an estimate jointly developed by the State Board of Education, the Office
63     of the Legislative Fiscal Analyst, and the Governor's Office of Management and Budget that is
64     adjusted based on the actual property tax collection compared to the estimated collection for
65     the prior fiscal year:
66          (i) district local property tax revenues; divided by
67          (ii) the sum of:
68          (A) a school district's average daily membership; and
69          (B) the average daily membership of a school district's resident students who attend
70     charter schools.
71          [(d)] (e) "Resident student" means a student who is considered a resident of the school
72     district under Title 53A, Chapter 2, Part 2, District of Residency.
73          [(e)] (f) "Statewide average debt service revenues" means the amount determined as
74     follows, using data from the most recently published state superintendent's annual report:
75          (i) sum the revenues of each school district from the debt service levy imposed under
76     Section 11-14-310; and
77          (ii) divide the sum calculated under Subsection (1)[(e)(i)](f)(i) by statewide school
78     district average daily membership.
79          (2) (a) Charter schools shall receive funding as described in this section, except
80     Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
81          (b) Charter schools authorized by local school boards that are converted from district
82     schools or operate in district facilities without paying reasonable rent shall receive funding as
83     prescribed in Section 53A-1a-515.
84          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school shall
85     receive state funds, as applicable, on the same basis as a school district receives funds.
86          (b) For the 2015-16 school year, the number of weighted pupil units assigned to a
87     charter school for the kindergarten and grades 1 through 12 programs of the Basic School
88     Program shall be:
89          (i) based on the higher of:
90          (A) October 1 enrollment in the current school year; or
91          (B) average daily membership in the prior school year plus growth as determined under
92     Section 53A-17a-106; and
93          (ii) weighted as provided in Subsection (3)(c).
94          (c) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
95     schools, charter school pupils shall be weighted, where applicable, as follows:
96          (i) .55 for kindergarten pupils;
97          (ii) .9 for pupils in grades 1 through 6;
98          (iii) .99 for pupils in grades 7 through 8; and
99          (iv) 1.2 for pupils in grades 9 through 12.
100          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
101     resident student of the school district who is enrolled in a charter school on October 1 Ŝ→ of the
101a     prior year ←Ŝ equal to
102     25% of the district per pupil local revenues Ŝ→ [.] excluding the amount of revenues described in
102a     Subsection (1)(c)(iv) collected by the district ←Ŝ
103          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
104     established under Chapter 28, Utah School Bond Guaranty Act.
105          (b) The State Board of Education shall:
106          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
107     state funds the school district is authorized to receive under Chapter 17a, Minimum School
108     Program Act; and
109          (ii) remit the money to the student's charter school.
110          (c) Notwithstanding the method used to transfer school district revenues to charter
111     schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
112     schools under this section from:
113          (i) unrestricted revenues available to the school district; or
114          (ii) the revenue sources listed in Subsection (1)[(b)](c) based on the portion of the
115     allocations to charter schools attributed to each of the revenue sources listed in Subsection
116     (1)[(b)](c).
117          (d) (i) Subject to future budget constraints, the Legislature shall provide an
118     appropriation for charter schools for each student enrolled on October 1 to supplement the
119     allocation of school district revenues under Subsection (4)(a).
120          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
121     state for a charter school student shall be the sum of:
122          (A) charter school students' average local revenues minus the allocation of school
123     district revenues under Subsection (4)(a); and
124          (B) statewide average debt service revenues.
125          (iii) If the total of a school district's allocation for a charter school student under
126     Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
127     $1427, the state shall provide an additional supplement so that a charter school receives at least
128     $1427 per student under this Subsection (4).
129          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
130     amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
131     among charter schools in proportion to each charter school's enrollment as a percentage of the
132     total enrollment in charter schools.
133          (B) If the State Board of Education makes adjustments to Minimum School Program
134     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
135     (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.
136          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
137     expended for funding school facilities only.
138          (5) Charter schools are eligible to receive federal funds if they meet all applicable
139     federal requirements and comply with relevant federal regulations.
140          (6) The State Board of Education shall distribute funds for charter school students
141     directly to the charter school.
142          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
143     transportation funding.
144          (b) The board shall also adopt rules relating to the transportation of students to and
145     from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127.
146          (c) The governing body of the charter school may provide transportation through an
147     agreement or contract with the local school board, a private provider, or with parents.
148          (8) (a) (i) In accordance with Section 53A-1a-513.5, the State Charter School Board
149     may allocate grants for start-up costs to charter schools from money appropriated for charter
150     school start-up costs.
151          (ii) The governing board of a charter school that receives money from a grant under
152     Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
153     charter school.
154          (b) The State Board of Education shall coordinate the distribution of federal money
155     appropriated to help fund costs for establishing and maintaining charter schools within the
156     state.
157          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
158     endowment, gift, or donation of any property made to the school for any of the purposes of this
159     part.
160          (b) It is unlawful for any person affiliated with a charter school to demand or request
161     any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
162     with the charter school as a condition for employment or enrollment at the school or continued
163     attendance at the school.
164          Section 2. Effective date.
165          This bill takes effect on July 1, 2016.




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