This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Thu, Feb 22, 2018 at 1:44 PM by estauffer.
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6 Cosponsors:
7 J. Stuart Adams
8 Curtis S. Bramble
Wayne A. Harper
Daniel Hemmert
Ann Millner
Howard A. Stephenson
Daniel W. Thatcher
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10 LONG TITLE
11 General Description:
12 This bill amends and enacts provisions related to public education funding.
13 Highlighted Provisions:
14 This bill:
15 ▸ amends provisions related to the Enhancement for At-Risk Students Program;
16 ▸ directs the Legislature, subject to future budget constraints, to appropriate funds to
17 increase the number of guaranteed local levy increments;
18 ▸ directs the State Board of Education to use the appropriation to increase:
19 • the number of guaranteed local levy increments to 20, giving first priority to
20 guaranteed voted local levy increments and second priority to guaranteed board
21 local levy increments; and
22 • the guaranteed amount for each local levy increment per weighted pupil unit
23 after increasing the number of guaranteed local levy increments;
24 ▸ directs a local school board to use funds received from the state local levy guarantee
25 programs for public education purposes;
26 ▸ modifies the property tax rate cap for the school board local levy to subject all
27 school districts to the same rate cap;
28 ▸ creates the Local Levy Growth Account;
29 ▸ repeals the following outdated levies prohibited since January 1, 2012:
30 • the board-approved leeway;
31 • the capital outlay levy;
32 • the additional levy for debt service, school sites, buildings, buses, textbooks,
33 and supplies; and
34 • the board leeway for reading improvement;
35 ▸ repeals outdated language, including language related to school capital outlay in
36 counties of the first class repealed December 31, 2016;
37 ▸ provides legislative intent language related to certain appropriations; and
38 ▸ makes technical and conforming changes.
39 Money Appropriated in this Bill:
40 This bill appropriates in fiscal year 2019:
41 ▸ to the State Board of Education - Minimum School Program - Related to Basic
42 School Programs, as an ongoing appropriation:
43 • from the Education Fund, $15,000,000;
44 ▸ to the State Board of Education - Minimum School Program - Related to Basic
45 School Programs, as an ongoing appropriation:
46 • from the Education Fund, $5,000,000;
47 ▸ to the State Board of Education - Minimum School Program - Basic School
48 Program, as an ongoing appropriation:
49 • from the Education Fund, $500,000;
50 ▸ to the Education Fund Restricted -- Local Levy Growth Account, as an ongoing
51 appropriation:
52 • from the Education Fund, $36,117,300; and
53 ▸ to the State Board of Education -- Minimum School Program -- Voted and Board
54 Local Levy Programs, as an ongoing appropriation:
55 • from the Education Fund Restricted -- Local Levy Growth Account,
56 $36,117,300.
57 Other Special Clauses:
58 None
59 Utah Code Sections Affected:
60 AMENDS:
61 53F-2-201, as renumbered and amended by Laws of Utah 2018, Chapter 2
62 53F-2-203, as renumbered and amended by Laws of Utah 2018, Chapter 2
63 53F-2-205, as renumbered and amended by Laws of Utah 2018, Chapter 2
64 53F-2-303, as enacted by Laws of Utah 2018, Chapter 2
65 53F-2-312, as renumbered and amended by Laws of Utah 2018, Chapter 2
66 53F-2-410, as renumbered and amended by Laws of Utah 2018, Chapter 2
67 53F-2-503, as renumbered and amended by Laws of Utah 2018, Chapter 2
68 53F-2-601, as enacted by Laws of Utah 2018, Chapter 2
69 53F-2-704, as enacted by Laws of Utah 2018, Chapter 2
70 53F-3-102, as renumbered and amended by Laws of Utah 2018, Chapter 2
71 53F-8-302, as renumbered and amended by Laws of Utah 2018, Chapter 2
72 53F-8-303, as renumbered and amended by Laws of Utah 2018, Chapter 2
73 53F-8-402, as renumbered and amended by Laws of Utah 2018, Chapter 2
74 53F-9-302, as renumbered and amended by Laws of Utah 2018, Chapter 2
75 53G-3-304, as renumbered and amended by Laws of Utah 2018, Chapter 3
76 ENACTS:
77 53F-9-305, Utah Code Annotated 1953
78 REPEALS:
79 53F-2-602, as enacted by Laws of Utah 2018, Chapter 2
80 53F-8-401, as renumbered and amended by Laws of Utah 2018, Chapter 2
81 53F-8-404, as renumbered and amended by Laws of Utah 2018, Chapter 2
82 53F-8-405, as renumbered and amended by Laws of Utah 2018, Chapter 2
83 53F-8-406, as renumbered and amended by Laws of Utah 2018, Chapter 2
84
85 Be it enacted by the Legislature of the state of Utah:
86 Section 1. Section 53F-2-201 is amended to read:
87 53F-2-201. Cost of operation and maintenance of minimum school program --
88 Division between state and school districts.
89 (1) The total cost of operation and maintenance of the Minimum School Program in the
90 state is divided between the state and school districts as follows:
91 (a) Each school district shall impose a minimum basic tax rate on all taxable, tangible
92 property in the school district and shall contribute the tax proceeds toward the cost of the basic
93 program as provided in this chapter.
94 (b) Each school district may also impose a levy under Section 53F-8-301 or 53F-8-302
95 for the purpose of participating in the respective local levy state programs [
96 in Section 53F-2-601 [
97 (c) The state shall contribute the balance of the total costs.
98 (2) The contributions by the school districts and by the state are computed separately
99 for the purpose of determining their respective contributions to:
100 (a) the basic program; and [
101
102 (b) the local levy state guarantee programs described in Section 53F-2-601.
103 Section 2. Section 53F-2-203 is amended to read:
104 53F-2-203. Reduction of local education board allocation based on insufficient
105 revenues.
106 (1) As used in this section, "Minimum School Program funds" means the total of state
107 and local funds appropriated for the minimum school program, excluding:
108 [
109 [
110 (a) an appropriation for a state guaranteed local levy increment as described in Section
111 53F-2-601; and
112 [
113 pursuant to Section 53F-2-704.
114 (2) If the Legislature reduces appropriations made to support public schools under this
115 chapter because an Education Fund budget deficit, as defined in Section 63J-1-312, exists, the
116 State Board of Education, after consultation with each local education board, shall allocate the
117 reduction among school districts and charter schools in proportion to each school district's or
118 charter school's percentage share of Minimum School Program funds.
119 (3) Except as provided in Subsection (5) and subject to the requirements of Subsection
120 (7), a local education board shall determine which programs are affected by a reduction
121 pursuant to Subsection (2) and the amount each program is reduced.
122 (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified
123 amount in any particular program is waived if reductions are made pursuant to Subsection (2).
124 (5) A local education board may not reduce or reallocate spending of funds distributed
125 to the school district or charter school for the following programs:
126 (a) educator salary adjustments provided in Section 53F-2-405;
127 (b) the Teacher Salary Supplement Program provided in Section 53F-2-504;
128 (c) the extended year for special educators provided in Section 53F-2-310;
129 (d) USTAR centers provided in Section 53F-2-505;
130 (e) the School LAND Trust Program created in Section 53F-2-404; or
131 (f) a special education program within the Basic School Program.
132 (6) A local education board may not reallocate spending of funds distributed to the
133 school district or charter school to a reserve account.
134 (7) A local education board that reduces or reallocates funds in accordance with this
135 section shall report all transfers into, or out of, Minimum School Program programs to the
136 State Board of Education as part of the school district or charter school's Annual Financial and
137 Program report.
138 Section 3. Section 53F-2-205 is amended to read:
139 53F-2-205. Powers and duties of State Board of Education to adjust Minimum
140 School Program allocations -- Use of remaining funds at the end of a fiscal year.
141 (1) [
142 (a) "Board" means the State Board of Education.
143 (b) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
144 Sec. 6301 et seq.
145 (c) "Program" means a program or allocation funded by a line item appropriation or
146 other appropriation designated as:
147 (i) Basic Program;
148 (ii) Related to Basic Programs;
149 (iii) Voted and Board Levy Programs; or
150 (iv) Minimum School Program.
151 (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
152 in a program is underestimated, the board shall reduce the value of the weighted pupil unit in
153 that program so that the total amount paid for the program does not exceed the amount
154 appropriated for the program.
155 (3) If the number of weighted pupil units in a program is overestimated, the board shall
156 spend excess money appropriated for the following purposes giving priority to the purpose
157 described in Subsection (3)(a):
158 (a) to support the value of the weighted pupil unit in a program within the basic
159 state-supported school program in which the number of weighted pupil units is underestimated;
160 (b) to support the state [
161
162
163 53F-2-601, if:
164 (i) local contributions to the voted local levy program or board local levy program are
165 overestimated; or
166 (ii) the number of weighted pupil units within school districts qualifying for a
167 guarantee is underestimated;
168 (c) to support the state supplement to local property taxes allocated to charter schools,
169 if the state supplement is less than the amount prescribed by Section 53F-2-704; or
170 (d) to support a school district with a loss in student enrollment as provided in Section
171 53F-2-207.
172 (4) If local contributions from the minimum basic tax rate imposed under Section
173 53F-2-301 are overestimated, the board shall reduce the value of the weighted pupil unit for all
174 programs within the basic state-supported school program so the total state contribution to the
175 basic state-supported school program does not exceed the amount of state funds appropriated.
176 (5) If local contributions from the minimum basic tax rate imposed under Section
177 53F-2-301 are underestimated, the board shall:
178 (a) spend the excess local contributions for the purposes specified in Subsection (3),
179 giving priority to supporting the value of the weighted pupil unit in programs within the basic
180 state-supported school program in which the number of weighted pupil units is underestimated;
181 and
182 (b) reduce the state contribution to the basic state-supported school program so the
183 total cost of the basic state-supported school program does not exceed the total state and local
184 funds appropriated to the basic state-supported school program plus the local contributions
185 necessary to support the value of the weighted pupil unit in programs within the basic
186 state-supported school program in which the number of weighted pupil units is underestimated.
187 (6) Except as provided in Subsection (3) or (5), the board shall reduce the state
188 guarantee per weighted pupil unit provided under the [
189 local levy state guarantee program described in Section 53F-2-601 [
190
191 (a) local contributions to the voted local levy program or board local levy program are
192 overestimated; or
193 (b) the number of weighted pupil units within school districts qualifying for a
194 guarantee is underestimated.
195 (7) Money appropriated to the board is nonlapsing.
196 (8) The board shall report actions taken by the board under this section to the Office of
197 the Legislative Fiscal Analyst and the Governor's Office of Management and Budget.
198 Section 4. Section 53F-2-303 is amended to read:
199 53F-2-303. Foreign exchange student weighted pupil units.
200 (1) A school district or charter school may include foreign exchange students in the
201 district's or school's membership and attendance count for the purpose of apportionment of
202 state money, except as provided in Subsections (2) through (4).
203 (2) (a) Notwithstanding Section 53F-2-302, foreign exchange students may not be
204 included in average daily membership for the purpose of determining the number of weighted
205 pupil units in the grades 1-12 basic program.
206 (b) Subject to the limitation in Subsection (3), the number of weighted pupil units in
207 the grades 1-12 basic program attributed to foreign exchange students shall be equal to the
208 number of foreign exchange students who were:
209 (i) enrolled in a school district or charter school on October 1 of the previous fiscal
210 year; and
211 (ii) sponsored by an agency approved by the district's local school board or charter
212 school's governing board.
213 (3) (a) The total number of foreign exchange students in the state that may be counted
214 for the purpose of apportioning state money under Subsection (2) shall be the lesser of:
215 (i) the number of foreign exchange students enrolled in public schools in the state on
216 October 1 of the previous fiscal year; or
217 (ii) 328 foreign exchange students.
218 (b) The State Board of Education shall make rules in accordance with Title 63G,
219 Chapter 3, Utah Administrative Rulemaking Act, to administer the cap on the number of
220 foreign exchange students that may be counted for the purpose of apportioning state money
221 under Subsection (2).
222 (4) Notwithstanding [
223 pupil units in the grades 1-12 basic program for foreign exchange students, as determined by
224 Subsections (2) and (3), may not be included for the purposes of determining a school district's
225 state guarantee money under [
226 Section 5. Section 53F-2-312 is amended to read:
227 53F-2-312. Appropriation for class size reduction.
228 (1) Money appropriated to the State Board of Education for class size reduction shall
229 be used to reduce the average class size in kindergarten through the eighth grade in the state's
230 public schools.
231 (2) Each school district or charter school shall receive an allocation based upon the
232 school district or charter school's prior year average daily membership in kindergarten through
233 grade 8 plus growth as determined under Subsection 53F-2-302(3) as compared to the total
234 prior year average daily membership in kindergarten through grade 8 plus growth of school
235 districts and charter schools that qualify for an allocation pursuant to Subsection (8).
236 (3) (a) A local education board may use an allocation to reduce class size in any one or
237 all of the grades referred to under this section, except as otherwise provided in Subsection
238 (3)(b).
239 (b) (i) Each local education board shall use 50% of an allocation to reduce class size in
240 any one or all of grades kindergarten through grade 2, with an emphasis on improving student
241 reading skills.
242 (ii) If a school district's or charter school's average class size is below 18 in grades
243 kindergarten through grade 2, a local education board may petition the State Board of
244 Education for, and the State Board of Education may grant, a waiver to use an allocation under
245 Subsection (3)(b)(i) for class size reduction in the other grades.
246 (4) Schools may use nontraditional innovative and creative methods to reduce class
247 sizes with this appropriation and may use part of an allocation to focus on class size reduction
248 for specific groups, such as at risk students, or for specific blocks of time during the school
249 day.
250 (5) (a) A local education board may use up to 20% of an allocation under Subsection
251 (1) for capital facilities projects if such projects would help to reduce class size.
252 (b) If a school district's or charter school's student population increases by 5% or 700
253 students from the previous school year, the local education board may use up to 50% of any
254 allocation received by the respective school district or charter school under this section for
255 classroom construction.
256 (6) This appropriation is to supplement any other appropriation made for class size
257 reduction.
258 (7) The Legislature shall provide for an annual adjustment in the appropriation
259 authorized under this section in proportion to the increase in the number of students in the state
260 in kindergarten through grade eight.
261 (8) (a) For a school district or charter school to qualify for class size reduction money,
262 a local education board shall submit:
263 (i) a plan for the use of the allocation of class size reduction money to the State Board
264 of Education; and
265 (ii) beginning with the 2014-15 school year, a report on the local education board's use
266 of class size reduction money in the prior school year.
267 (b) The plan and report required pursuant to Subsection (8)(a) shall include the
268 following information:
269 (i) (A) the number of teachers employed using class size reduction money;
270 (B) the amount of class size reduction money expended for teachers; and
271 (C) if supplemental school district or charter school funds are expended to pay for
272 teachers employed using class size reduction money, the amount of the supplemental money;
273 (ii) (A) the number of paraprofessionals employed using class size reduction money;
274 (B) the amount of class size reduction money expended for paraprofessionals; and
275 (C) if supplemental school district or charter school funds are expended to pay for
276 paraprofessionals employed using class size reduction money, the amount of the supplemental
277 money; and
278 (iii) the amount of class size reduction money expended for capital facilities.
279 (c) In addition to submitting a plan and report on the use of class size reduction money,
280 a local education board shall annually submit a report to the State Board of Education that
281 includes the following information:
282 (i) the number of teachers employed using K-3 Reading Improvement Program money
283 received pursuant to [
284 (ii) the amount of K-3 Reading Improvement Program money expended for teachers;
285 (iii) the number of teachers employed in kindergarten through grade 8 using Title I
286 money;
287 (iv) the amount of Title I money expended for teachers in kindergarten through grade
288 8; and
289 (v) a comparison of actual average class size by grade in grades kindergarten through 8
290 in the school district or charter school with what the average class size would be without the
291 expenditure of class size reduction, K-3 Reading Improvement Program, and Title I money.
292 (d) The information required to be reported in Subsections (8)(b)(i)(A) through (C),
293 (8)(b)(ii)(A) through (C), and (8)(c) shall be categorized by a teacher's or paraprofessional's
294 teaching assignment, such as the grade level, course, or subject taught.
295 (e) The State Board of Education may make rules specifying procedures and standards
296 for the submission of:
297 (i) a plan and a report on the use of class size reduction money as required by this
298 section; and
299 (ii) a report required under Subsection (8)(c).
300 (f) Based on the data contained in the class size reduction plans and reports submitted
301 by local education boards, and data on average class size, the State Board of Education shall
302 annually report to the Public Education Appropriations Subcommittee on the impact of class
303 size reduction, K-3 Reading Improvement Program, and Title I money on class size.
304 Section 6. Section 53F-2-410 is amended to read:
305 53F-2-410. Enhancement for At-Risk Students Program.
306 (1) (a) Subject to the requirements of Subsection (1)(b), the State Board of Education
307 shall distribute money appropriated for the Enhancement for At-Risk Students Program to
308 school districts and charter schools according to a formula adopted by the State Board of
309 Education, after consultation with local education boards.
310 (b) (i) The State Board of Education shall appropriate $1,200,000 from the
311 appropriation for Enhancement for At-Risk Students for a gang prevention and intervention
312 program designed to help students at-risk for gang involvement stay in school.
313 (ii) Money for the gang prevention and intervention program shall be distributed to
314 school districts and charter schools through a request for proposals process.
315 (2) In establishing a distribution formula under Subsection (1)(a), the State Board of
316 Education shall:
317 (a) use the following criteria:
318 [
319 [
320 [
321 [
322 (v) chronic absenteeism; and
323 (vi) homelessness;
324 (b) ensure that the distribution formula distributes money on a per student and per
325 criterion basis; and
326 (c) ensure that the distribution formula provides funding for each criterion that a
327 student meets such that a student who meets:
328 (i) one criterion is counted once; and
329 (ii) more than one criterion is counted for each criterion the student meets.
330 (3) Subject to future budget constraints, the amount appropriated for the Enhancement
331 for At-Risk Students Program shall increase annually with growth in the at-risk student
332 population and changes to the value of the weighted pupil unit as defined in Section 53F-9-305.
333 [
334 improve the academic achievement of students who are at risk of academic failure.
335 [
336 the effectiveness of the Enhancement for At-Risk Students Program.
337 [
338 under this section, the school district or charter school may use the allocation as described in
339 Section 53F-2-206.
340 (7) During the fiscal year that begins July 1, 2022, the Public Education Appropriations
341 Subcommittee shall evaluate:
342 (a) the impact of funding provided in this section to determine whether the funding has
343 improved educational outcomes for students who are at-risk for academic failure; and
344 (b) whether the funding should continue as established, be amended, or be consolidated
345 in the value of the weighted pupil unit.
346 Section 7. Section 53F-2-503 is amended to read:
347 53F-2-503. K-3 Reading Improvement Program.
348 (1) As used in this section:
349 (a) "Board" means the State Board of Education.
350 (b) "Five domains of reading" include phonological awareness, phonics, fluency,
351 comprehension, and vocabulary.
352 (c) "Program" means the K-3 Reading Improvement Program.
353 (d) "Program money" means:
354 (i) school district revenue allocated to the program from other money available to the
355 school district, except money provided by the state, for the purpose of receiving state funds
356 under this section; and
357 (ii) money appropriated by the Legislature to the program.
358 (2) The K-3 Reading Improvement Program consists of program money and is created
359 to supplement other school resources to achieve the state's goal of having third graders reading
360 at or above grade level.
361 (3) Subject to future budget constraints, the Legislature may annually appropriate
362 money to the K-3 Reading Improvement Program.
363 (4) (a) For a school district or charter school to receive program money, a local
364 education board shall submit a plan to the board for reading proficiency improvement that
365 incorporates the following components:
366 (i) assessment;
367 (ii) intervention strategies;
368 (iii) professional development for classroom teachers in kindergarten through grade
369 three;
370 (iv) reading performance standards; and
371 (v) specific measurable goals that include the following:
372 (A) a growth goal for each school within a school district and each charter school
373 based upon student learning gains as measured by benchmark assessments administered
374 pursuant to Section 53E-4-307; and
375 (B) a growth goal for each school district and charter school to increase the percentage
376 of third grade students who read on grade level from year to year as measured by the third
377 grade reading test administered pursuant to Section 53E-4-302.
378 (b) The board shall provide model plans that a local education board may use, or the
379 local education board may develop the local education board's own plan.
380 (c) Plans developed by a local education board shall be approved by the board.
381 (d) The board shall develop uniform standards for acceptable growth goals that a local
382 education board adopts for a school district or charter school as described in this Subsection
383 (4).
384 (5) (a) There is created within the K-3 Reading Achievement Program three funding
385 programs:
386 (i) the Base Level Program;
387 (ii) the Guarantee Program; and
388 (iii) the Low Income Students Program.
389 (b) The board may use no more than $7,500,000 from an appropriation described in
390 Subsection (3) for computer-assisted instructional learning and assessment programs.
391 (6) Money appropriated to the board for the K-3 Reading Improvement Program and
392 not used by the board for computer-assisted instructional learning and assessments as described
393 in Subsection (5)(b), shall be allocated to the three funding programs as follows:
394 (a) 8% to the Base Level Program;
395 (b) 46% to the Guarantee Program; and
396 (c) 46% to the Low Income Students Program.
397 (7) (a) For a school district or charter school to participate in the Base Level Program,
398 the local education board shall submit a reading proficiency improvement plan to the board as
399 provided in Subsection (4) and must receive approval of the plan from the board.
400 (b) (i) The local school board of a school district qualifying for Base Level Program
401 funds and the governing boards of qualifying elementary charter schools combined shall
402 receive a base amount.
403 (ii) The base amount for the qualifying elementary charter schools combined shall be
404 allocated among each charter school in an amount proportionate to:
405 (A) each existing charter school's prior year fall enrollment in grades kindergarten
406 through grade three; and
407 (B) each new charter school's estimated fall enrollment in grades kindergarten through
408 grade three.
409 (8) (a) A local school board that applies for program money in excess of the Base Level
410 Program funds shall choose to first participate in either the Guarantee Program or the Low
411 Income Students Program.
412 (b) A school district must fully participate in either the Guarantee Program or the Low
413 Income Students Program before the local school board may elect for the school district to
414 either fully or partially participate in the other program.
415 (c) For a school district to fully participate in the Guarantee Program, the local school
416 board shall allocate to the program money available to the school district, except money
417 provided by the state, equal to the amount of revenue that would be generated by a tax rate of
418 .000056.
419 (d) For a school district to fully participate in the Low Income Students Program, the
420 local school board shall allocate to the program money available to the school district, except
421 money provided by the state, equal to the amount of revenue that would be generated by a tax
422 rate of .000065.
423 (e) (i) The board shall verify that a local school board allocates the money required in
424 accordance with Subsections (8)(c) and (d) before the local school board distributes funds in
425 accordance with this section.
426 (ii) The State Tax Commission shall provide the board the information the board needs
427 in order to comply with Subsection (8)(e)(i).
428 (9) (a) Except as provided in Subsection (9)(c), the local school board of a school
429 district that fully participates in the Guarantee Program shall receive state funds in an amount
430 that is:
431 (i) equal to the difference between $21 multiplied by the school district's total WPUs
432 and the revenue the local school board is required to allocate under Subsection (8)(c) for the
433 school district to fully participate in the Guarantee Program; and
434 (ii) not less than $0.
435 (b) Except as provided in Subsection (9)(c), an elementary charter school shall receive
436 under the Guarantee Program an amount equal to $21 times the elementary charter school's
437 total WPUs.
438 (c) The board may adjust the $21 guarantee amount described in Subsections (9)(a) and
439 (b) to account for actual appropriations and money used by the board for computer-assisted
440 instructional learning and assessments.
441 (10) The board shall distribute Low Income Students Program funds in an amount
442 proportionate to the number of students in each school district or charter school who qualify for
443 free or reduced price school lunch multiplied by two.
444 (11) A school district that partially participates in the Guarantee Program or Low
445 Income Students Program shall receive program funds based on the amount of school district
446 revenue allocated to the program as a percentage of the amount of revenue that could have been
447 allocated if the school district had fully participated in the program.
448 (12) (a) A local education board shall use program money for reading proficiency
449 improvement interventions in grades kindergarten through grade 3 that have proven to
450 significantly increase the percentage of students reading at grade level, including:
451 (i) reading assessments; and
452 (ii) focused reading remediations that may include:
453 (A) the use of reading specialists;
454 (B) tutoring;
455 (C) before or after school programs;
456 (D) summer school programs; or
457 (E) the use of reading software; or
458 (F) the use of interactive computer software programs for literacy instruction and
459 assessments for students.
460 (b) A local education board may use program money for portable technology devices
461 used to administer reading assessments.
462 (c) Program money may not be used to supplant funds for existing programs, but may
463 be used to augment existing programs.
464 (13) (a) Each local education board shall annually submit a report to the board
465 accounting for the expenditure of program money in accordance with its plan for reading
466 proficiency improvement.
467 (b) If a local education board uses program money in a manner that is inconsistent with
468 Subsection (12), the school district or charter school is liable for reimbursing the board for the
469 amount of program money improperly used, up to the amount of program money received from
470 the board.
471 (14) (a) The board shall make rules to implement the program.
472 (b) (i) The rules under Subsection (14)(a) shall require each local education board to
473 annually report progress in meeting goals stated in the school district's or charter school's plan
474 for student reading proficiency.
475 (ii) If a school does not meet or exceed the school's goals, the local education board
476 shall prepare a new plan which corrects deficiencies.
477 (iii) The new plan described in Subsection (14)(b)(ii) shall be approved by the board
478 before the local education board receives an allocation for the next year.
479 (15) (a) If for two consecutive school years, a school district fails to meet the school
480 district's goal to increase the percentage of third grade students who read on grade level as
481 measured by the third grade reading test administered pursuant to Section 53E-4-302, the
482 school district [
483 receive money appropriated by the Legislature for the K-3 Reading Improvement Program.
484 (b) If for two consecutive school years, a charter school fails to meet the charter
485 school's goal to increase the percentage of third grade students who read on grade level as
486 measured by the third grade reading test administered pursuant to Section 53E-4-302, the
487 charter school may not receive money appropriated by the Legislature for the K-3 Reading
488 Improvement Program.
489 (16) The board shall make an annual report to the Public Education Appropriations
490 Subcommittee that:
491 (a) includes information on:
492 (i) student learning gains in reading for the past school year and the five-year trend;
493 (ii) the percentage of third grade students reading on grade level in the past school year
494 and the five-year trend;
495 (iii) the progress of schools and school districts in meeting goals stated in a school
496 district's or charter school's plan for student reading proficiency; and
497 (iv) the correlation between third grade students reading on grade level and results of
498 third grade language arts scores on a criterion-referenced test or computer adaptive test; and
499 (b) may include recommendations on how to increase the percentage of third grade
500 students who read on grade level.
501 Section 8. Section 53F-2-601 is amended to read:
502 53F-2-601. State guaranteed local levy increments -- Appropriation to increase
503 number of guaranteed local levy increments -- No effect of change of minimum basic tax
504 rate -- Voted and board local levy funding balance -- Use of guaranteed local levy
505 increment funds.
506 (1) As used in this section[
507 (a) "Board local levy" means a local levy described in Section 53F-8-302.
508 (b) "Guaranteed local levy increment" means a local levy increment guaranteed by the
509 state:
510 (i) for the board local levy, described in Subsections (2)(a)(ii)(A) and (2)(b)(ii)(B); or
511 (ii) for the voted local levy, described in Subsections (2)(a)(ii)(B) and (2)(b)(ii)(A).
512 (c) "Local levy increment" means .0001 per dollar of taxable value.
513 (d) (i) "Voted and board local levy funding balance" means the difference between:
514 [
515 guaranteed local levy increments in a fiscal year; and
516 [
517 fund in the same fiscal year the guaranteed local levy increments as determined under this
518 section [
519 (ii) "Voted and board local levy funding balance" does not include appropriations
520 described in Subsection (2)(b)(i).
521 (e) "Voted local levy" means a local levy described in Section 53F-8-301.
522 (2) (a) (i) In addition to the revenue collected from the imposition of a [
523
524 guarantee that a school district receives, subject to Subsections (2)(b)(ii)(C) and (3)(a), for each
525 guaranteed local levy increment, an amount sufficient to guarantee [
526 that begins on July 1, 2018, $43.10 per weighted pupil unit [
527
528 [
529
530
531
532 (ii) Except as provided in Subsection (2)(b)(ii), the number of local levy increments
533 that are subject to the guarantee amount described in Subsection (2)(a)(i) are:
534 (A) for a board local levy, the first four local levy increments a local school board
535 imposes under the board local levy; and
536 (B) for a voted local levy, the first 16 local levy increments a local school board
537 imposes under the voted local levy.
538 (b) (i) Subject to future budget constraints and Subsection (2)(c), the Legislature shall
539 annually appropriate money from the Local Levy Growth Account established in Section
540 53F-9-305 for purposes described in Subsection (2)(b)(ii).
541 (ii) The State Board of Education shall, for a fiscal year beginning on or after July 1,
542 2018, and subject to Subsection (2)(c), allocate funds appropriated under Subsection (2)(b)(i)
543 in the following order of priority by increasing:
544 (A) by up to four increments the number of voted local levy guaranteed local levy
545 increments above 16;
546 (B) by up to 16 increments the number of board local levy guaranteed local levy
547 increments above four; and
548 (C) the guaranteed amount described in Subsection (2)(a)(i).
549 (c) The number of guaranteed local levy increments under this Subsection (2) for a
550 school district may not exceed 20 guaranteed local levy increments, regardless of whether the
551 guaranteed local levy increments are from the imposition of a voted local levy, a board local
552 levy, or a combination of the two.
553 [
554 (3) (a) The guarantee described in Subsection (2)(a)(i) shall be indexed each year to the
555 value of the weighted pupil unit [
556 the guarantee equal to .011962 times the value of the prior year's weighted pupil unit [
557
558 (b) The guarantee shall increase by .0005 times the value of the prior year's weighted
559 pupil unit [
560 Legislature appropriating funds for an increase in the guarantee.
561 [
562 would otherwise be entitled to receive under this section may not be reduced for the sole reason
563 that the school district's board local levy or voted local levy is reduced as a consequence of
564 changes in the certified tax rate under Section 59-2-924 pursuant to changes in property
565 valuation.
566 (b) Subsection [
567 change in the certified tax rate as described in Subsection (4)(a).
568 [
569 voted local levy rate that exceeds the voted local levy rate that was in effect for the previous
570 fiscal year, unless an increase in the voted local levy rate was authorized in an election
571 conducted on or after July 1 of the previous fiscal year and before December 2 of the previous
572 fiscal year.
573 [
574 year, the State Board of Education shall:
575 (i) use the voted and board local levy funding balance to increase the value of the state
576 guarantee per weighted pupil unit described in Subsection [
577 and
578 (ii) distribute [
579 guaranteed local levy increment funds to school districts based on the increased value of the
580 state guarantee per weighted pupil unit described in Subsection [
581 (b) The State Board of Education shall report action taken under [
582 (6)(a) to the Office of the Legislative Fiscal Analyst and the Governor's Office of Management
583 and Budget.
584 (7) A local school board of a school district that receives funds described in this section
585 shall budget and expend the funds for public education purposes.
586 Section 9. Section 53F-2-704 is amended to read:
587 53F-2-704. Charter school levy state guarantee.
588 (1) As used in this section:
589 (a) "Charter school levy per pupil revenues" means the same as that term is defined in
590 Section 53F-2-703.
591 (b) "Charter school students' average local revenues" means the amount determined as
592 follows:
593 (i) for each student enrolled in a charter school on the previous October 1, calculate the
594 district per pupil local revenues of the school district in which the student resides;
595 (ii) sum the district per pupil local revenues for each student enrolled in a charter
596 school on the previous October 1; and
597 (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
598 enrolled in charter schools on the previous October 1.
599 (c) "District local property tax revenues" means the sum of a school district's revenue
600 received from the following:
601 (i) a voted local levy imposed under Section 53F-8-301;
602 (ii) a board local levy imposed under Section 53F-8-302, excluding revenues expended
603 for:
604 (A) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
605 taxable value of the school district's board local levy; and
606 (B) the K-3 Reading Improvement Program, up to the amount of revenue generated by
607 a .000121 per dollar of taxable value of the school district's board local levy;
608 (iii) a capital local levy imposed under Section 53F-8-303; and
609 (iv) a guarantee described in Section 53F-2-601, [
610 53F-3-203.
611 (d) "District per pupil local revenues" means, using data from the most recently
612 published school district annual financial reports and state superintendent's annual report, an
613 amount equal to district local property tax revenues divided by the sum of:
614 (i) a school district's average daily membership; and
615 (ii) the average daily membership of a school district's resident students who attend
616 charter schools.
617 (e) "Resident student" means a student who is considered a resident of the school
618 district under Title 53G, Chapter 6, Part 3, School District Residency.
619 (f) "Statewide average debt service revenues" means the amount determined as
620 follows, using data from the most recently published state superintendent's annual report:
621 (i) sum the revenues of each school district from the debt service levy imposed under
622 Section 11-14-310; and
623 (ii) divide the sum calculated under Subsection (1)(f)(i) by statewide school district
624 average daily membership.
625 (2) (a) Subject to future budget constraints, the Legislature shall provide an
626 appropriation for charter schools for each charter school student enrolled on October 1 to
627 supplement the allocation of charter school levy per pupil revenues described in Subsection
628 53F-2-702(3)(a).
629 (b) Except as provided in Subsection (2)(c), the amount of money provided by the state
630 for a charter school student shall be the sum of:
631 (i) charter school students' average local revenues minus the charter school levy per
632 pupil revenues; and
633 (ii) statewide average debt service revenues.
634 (c) If the total of charter school levy per pupil revenues distributed by the State Board
635 of Education and the amount provided by the state under Subsection (2)(b) is less than $1,427,
636 the state shall provide an additional supplement so that a charter school receives at least $1,427
637 per student under Subsection 53F-2-702(3).
638 (d) (i) If the appropriation provided under this Subsection (2) is less than the amount
639 prescribed by Subsection (2)(b) or (c), the appropriation shall be allocated among charter
640 schools in proportion to each charter school's enrollment as a percentage of the total enrollment
641 in charter schools.
642 (ii) If the State Board of Education makes adjustments to Minimum School Program
643 allocations as provided under Section 53F-2-205, the allocation provided in Subsection
644 (2)(d)(i) shall be determined after adjustments are made under Section 53F-2-205.
645 (3) (a) Except as provided in Subsection (3)(b), of the money provided to a charter
646 school under Subsection 53F-2-702(3), 10% shall be expended for funding school facilities
647 only.
648 (b) Subsection (3)(a) does not apply to an online charter school.
649 Section 10. Section 53F-3-102 is amended to read:
650 53F-3-102. Definitions.
651 As used in this chapter:
652 (1) "ADM" or "pupil in average daily membership" is as defined in Section 53F-2-102.
653 (2) "Base tax effort rate" means the average of:
654 (a) the highest combined capital levy rate; and
655 (b) the average combined capital levy rate for the school districts statewide.
656 (3) "Combined capital levy rate" means a rate that includes the sum of the following
657 property tax levies:
658 [
659 [
660
661 [
662 [
663 (b) (i) the capital local levy authorized in Section 53F-8-303; and
664 (ii) the debt service levy authorized in Section 11-14-310.
665 (4) "Derived net taxable value" means the quotient of:
666 (a) the total property tax collections from April 1 through the following March 31 for a
667 school district for the calendar year preceding the March 31 date; divided by
668 (b) the school district's total tax rate for the calendar year preceding the March 31
669 referenced in Subsection (4)(a).
670 (5) "Highest combined capital levy rate" means the highest combined capital levy rate
671 imposed by a school district within the state for a fiscal year.
672 (6) "Property tax base per ADM" means the quotient of:
673 (a) a school district's derived net taxable value; divided by
674 (b) the school district's ADM.
675 (7) "Property tax yield per ADM" means:
676 (a) the product of:
677 (i) a school district's derived net taxable value; and
678 (ii) the base tax effort rate; divided by
679 (b) the school district's ADM.
680 (8) "Statewide average property tax base per ADM" means the quotient of:
681 (a) the sum of all school districts' derived net taxable value; divided by
682 (b) the sum of all school districts' ADM.
683 Section 11. Section 53F-8-302 is amended to read:
684 53F-8-302. Board local levy.
685 (1) The terms defined in Section 53F-2-102 apply to this section.
686 (2) Subject to the other requirements of this section, [
687
688 general fund.
689 (3) (a) For purposes of this Subsection (3), "combined rate" means the sum of:
690 (i) the rate imposed by a local school board under Subsection (2); and
691 (ii) the charter school levy rate, described in Section 53F-2-703, for the local school
692 board's school district.
693 [
694
695 [
696 not exceed .0025 per dollar of taxable value in any calendar year [
697
698
699 [
700 [
701 [
702 [
703 [
704
705 [
706 [
707 (4) In addition to the revenue a school district collects from the imposition of a levy
708 pursuant to this section, the state shall contribute an amount as described in Section
709 [
710 (5) (a) For a calendar year beginning on or after January 1, 2017, the State Tax
711 Commission shall adjust a board local levy rate imposed by a local school board under this
712 section by the amount necessary to offset the change in revenues from the charter school levy
713 imposed under Section 53F-2-703.
714 (b) A local school board is not required to comply with the notice and public hearing
715 requirements of Section 59-2-919 for an offset described in Subsection (5)(a) to the change in
716 revenues from the charter school levy imposed under Section 53F-2-703.
717 [
718
719
720 [
721 school levy per district revenues, a local school board may not increase a board local levy rate
722 under this section if the purpose of increasing the board local levy rate is to capture the
723 revenues assigned to the charter school levy through the adjustment in a board local levy rate
724 under Subsection (5)(a).
725 [
726 under this section, the local school board shall:
727 (i) prepare a written statement that attests that the local school board is in compliance
728 with Subsection (5)[
729 (ii) read the statement described in Subsection (5)[
730 public meeting where the local school board discusses increasing the board local levy rate; and
731 (iii) send a copy of the statement described in Subsection (5)[
732 Commission.
733 Section 12. Section 53F-8-303 is amended to read:
734 53F-8-303. Capital local levy.
735 (1) [
736 a tax to fund the school district's capital projects.
737 [
738 .0030 per dollar of taxable value in any calendar year.
739 [
740
741
742
743 [
744
745 [
746 [
747
748 [
749 [
750
751
752
753 [
754
755
756 [
757
758 [
759 [
760
761
762
763 [
764 [
765 Section 13. Section 53F-8-402 is amended to read:
766 53F-8-402. Special tax to buy school building sites, build and furnish
767 schoolhouses, or improve school property.
768 (1) (a) Except as provided in Subsection (6), a local school board may, by following
769 the process for special elections established in Sections 20A-1-203 and 20A-1-204, call a
770 special election to determine whether a special property tax should be levied for one or more
771 years to buy building sites, build and furnish schoolhouses, or improve the school property
772 under its control.
773 (b) The tax may not exceed .2% of the taxable value of all taxable property in the
774 district in any one year.
775 (2) The board shall give reasonable notice of the election and follow the same
776 procedure used in elections for the issuance of bonds.
777 (3) If a majority of those voting on the proposition vote in favor of the tax, it is [
778
779 county assessment roll for that year.
780 (4) (a) Within 20 days after the election, the board shall certify the amount of the
781 approved tax to the governing body of the county in which the school district is located.
782 (b) The governing body shall acknowledge receipt of the certification and levy and
783 collect the special tax.
784 (c) It shall then distribute the collected taxes to the business administrator of the school
785 district at the end of each calendar month.
786 (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
787 real and personal property at the same time as state and county taxes.
788 (6) Notwithstanding Subsections (3) and (4), beginning January 1, 2012, a local school
789 board may not levy a tax in accordance with this section.
790 Section 14. Section 53F-9-302 is amended to read:
791 53F-9-302. Minimum Basic Growth Account.
792 (1) As used in this section, "account" means the Minimum Basic Growth Account
793 created in this section.
794 (2) There is created within the Education Fund a restricted account known as the
795 "Minimum Basic Growth Account."
796 (3) The account shall be funded by amounts deposited into the account in accordance
797 with Section 53F-2-301.
798 (4) The account shall earn interest.
799 (5) Interest earned on the account shall be deposited into the account.
800 (6) Upon appropriation by the Legislature:
801 (a) 75% of the money from the account shall be used to fund the state's contribution to
802 the voted local levy guarantee described in Section 53F-2-601;
803 (b) 20% of the money from the account shall be used to fund the Capital Outlay
804 Foundation Program as provided in Section 53F-3-203; and
805 (c) 5% of the money from the account shall be used to fund the Capital Outlay
806 Enrollment Growth Program as provided in Section 53F-3-203.
807 Section 15. Section 53F-9-305 is enacted to read:
808 53F-9-305. Local Levy Growth Account.
809 (1) As used in this section:
810 (a) "Account" means the Local Levy Growth Account created in this section.
811 (b) "Growth threshold" means the product of:
812 (i) the total state cost to increase by 1% the prior year value of the weighted pupil unit;
813 and
814 (ii) 3.
815 (c) "Value of the weighted pupil unit" means the amount established each year in the
816 enacted public education budget that is multiplied by the number of weighted pupil units to
817 yield the funding level for the basic state-supported school program.
818 (2) There is created within the Education Fund a restricted account known as the
819 "Local Levy Growth Account."
820 (3) (a) For a fiscal year beginning on July 1, 2019, and each July 1 thereafter, if
821 revenues collected from the individual income tax and the corporate franchise tax over the
822 previous fiscal year are greater than the growth threshold, Ŝ→ [
823 Subsection (3)(b),
823a transfer from the Education Fund to the account an amount equal to the
824 product of:
825 (i) the total state cost to increase by 1% the prior year value of the weighted pupil unit;
826 and
827 (ii) 1.02.
828 Ŝ→ [
829 amount to transfer under Subsection (3)(a).
830 (c)
831 (4) The account shall earn interest.
832 (5) The interest earned on the account shall be deposited into the account.
833 (6) The Legislature shall appropriate money in the account to the State Board of
834 Education for purposes described in Section 53F-2-601.
835 Section 16. Section 53G-3-304 is amended to read:
836 53G-3-304. Property tax levies in new district and remaining district --
837 Distribution of property tax revenue.
838 (1) Notwithstanding terms defined in Section 53G-3-102, as used in this section:
839 (a) "Divided school district" or "existing district" means a school district from which a
840 new district is created.
841 (b) "New district" means a school district created under Section 53G-3-302 after May
842 10, 2011.
843 (c) "Property tax levy" means a property tax levy that a school district is authorized to
844 impose, except:
845 (i) the minimum basic tax rate imposed under Section 53F-2-301;
846 (ii) a debt service levy imposed under Section 11-14-310; or
847 (iii) a judgment levy imposed under Section 59-2-1330.
848 (d) "Qualifying taxable year" means the calendar year in which a new district begins to
849 provide educational services.
850 (e) "Remaining district" means an existing district after the creation of a new district.
851 (2) A new district and remaining district shall continue to impose property tax levies
852 that were imposed by the divided school district in the taxable year prior to the qualifying
853 taxable year.
854 (3) Except as provided in Subsection (6), a property tax levy that a new district and
855 remaining district are required to impose under Subsection (2) shall be set at a rate that:
856 (a) is uniform in the new district and remaining district; and
857 (b) generates the same amount of revenue that was generated by the property tax levy
858 within the divided school district in the taxable year prior to the qualifying taxable year.
859 (4) [
860 county in which a property tax levy is imposed under Subsection (2) shall distribute revenues
861 generated by the property tax levy to the new district and remaining district in proportion to the
862 percentage of the divided school district's enrollment on the October 1 prior to the new district
863 commencing educational services that were enrolled in schools currently located in the new
864 district or remaining district.
865 [
866
867
868
869 (5) On or before March 31, a county treasurer shall distribute revenues generated by a
870 property tax levy imposed under Subsection (2) in the prior calendar year to a new district and
871 remaining district as provided in Subsection (4).
872 (6) (a) Subject to the notice and public hearing requirements of Section 59-2-919, a
873 new district or remaining district may set a property tax rate higher than the rate required by
874 Subsection (3), up to:
875 (i) the maximum rate, if any, allowed by law; or
876 (ii) the maximum rate authorized by voters for a voted local levy under Section
877 53F-8-301.
878 (b) The revenues generated by the portion of a property tax rate in excess of the rate
879 required by Subsection (3) shall be retained by the district that imposes the higher rate.
880 Section 17. Repealer.
881 This bill repeals:
882 Section 53F-2-602, Board local levy state guarantee.
883 Section 53F-8-401, Capital outlay levy -- Authority to use proceeds of .0002 tax
884 rate for maintenance of school facilities -- Restrictions and procedure -- Limited
885 authority to use proceeds for general fund purposes -- Notification required when using
886 proceeds for general fund purposes -- Authority for small school districts to use levy
887 proceeds for operation and maintenance of plant services.
888 Section 53F-8-404, Board-approved leeway -- Purpose -- State support --
889 Disapproval.
890 Section 53F-8-405, Additional levy by local school board for debt service, school
891 sites, buildings, buses, textbooks, and supplies.
892 Section 53F-8-406, Board leeway for reading improvement.
893 Section 18. Appropriation.
894 The following sums of money are appropriated for the fiscal year beginning July 1,
895 2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
896 fiscal year 2019.
897 Subsection Ŝ→ [
898 Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
899 Legislature appropriates the following sums of money from the funds or accounts indicated for
900 the use and support of the government of the state of Utah.
901 ITEM 1
902 To State Board of Education -- Minimum School Program - Related to
903 Basic School Programs
904 From Education Fund
$15,000,000
905 Schedule of Programs:
906 Enhancement for At-Risk Students Program $15,000,000
907 ITEM 2
908 To State Board of Education -- Minimum School Program - Related to
909 Basic School Programs
910 From Education Fund
$5,000,000
911 Schedule of Programs:
912 To and From School - Pupil Transportation $5,000,000
913 The Legislature intends that the appropriation under this item:
914 (1) for the fiscal year beginning July 1, 2019, the total ongoing appropriation shall be
915 $10,000,000;
916 (2) for the fiscal year beginning July 1, 2020, the total ongoing appropriation shall be
917 $15,000,000;
918 (3) for the fiscal year beginning July 1, 2021, the total ongoing appropriation shall be
919 $20,000,000; and
920 (4) for the fiscal year beginning July 1, 2022, the total ongoing appropriation shall be
921 $25,000,000.
922 ITEM 3
923 To State Board of Education -- Minimum School Program - Basic School Program
924 From Education Fund
$500,000
925 Schedule of Programs:
926 Necessarily Existent Small Schools $500,000
927 The Legislature intends that the appropriation under this item:
928 (1) for the fiscal year beginning July 1, 2019, the total ongoing appropriation shall be
929 $1,000,000; and
930 (2) for the fiscal year beginning July 1, 2020, the total ongoing appropriation shall be
931 $1,500,000.
932 ITEM 4
933 To State Board of Education -- Minimum School Program -- Voted and
934 Board Local Levy Programs
935 From Education Fund Restricted -- Local Levy Growth Account
$36,117,300
936 Schedule of Programs:
937 Voted Local Levy Program $18,050,600
938 Board Local Levy Program $18,066,700
939 Subsection Ŝ→ [
940 The Legislature authorizes the State Division of Finance to transfer the following
941 amounts between the following funds or accounts as indicated. Expenditures and outlays from
942 the funds to which the money is transferred must be authorized by an appropriation.
943 ITEM 5
944 To Education Fund Restricted -- Local Levy Growth Account
945 From Education Fund
$36,117,300
946 Schedule of Programs:
947 Education Fund Restricted -- Local Levy
948 Growth Account $36,117,300