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7 LONG TITLE
8 General Description:
9 This bill amends provisions regarding public education funding.
10 Highlighted Provisions:
11 This bill:
12 ▸ establishes a limit on the amount of an increase to the value of the weighted pupil
13 unit funded through the weighted pupil unit value tax rate;
14 ▸ requires a local education agency governing board to hold a public meeting
15 regarding the use of funds from the Teacher and Student Success Account; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 53F-2-301, as last amended by Laws of Utah 2018, Chapters 6, 456 and renumbered
24 and amended by Laws of Utah 2018, Chapter 2
25 53F-2-301.5, as enacted by Laws of Utah 2018, Chapter 456
26 ENACTS:
27 53G-7-217, Utah Code Annotated 1953
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29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 53F-2-301 is amended to read:
31 53F-2-301. Minimum basic tax rate for a fiscal year that begins after July 1, 2022.
32 (1) The provisions of this section are not in effect for a fiscal year that begins on July 1,
33 2018, 2019, 2020, 2021, or 2022.
34 (2) As used in this section:
35 (a) "Basic levy increment rate" means a tax rate that will generate an amount of
36 revenue equal to $75,000,000.
37 (b) "Combined basic rate" means a rate that is the sum of:
38 (i) the minimum basic tax rate; and
39 (ii) the WPU value rate.
40 (c) "Commission" means the State Tax Commission.
41 (d) "Equity pupil tax rate" means the tax rate that will generate an amount of revenue
42 equal to the amount generated by the equity pupil tax rate as defined in Section 53F-2-301.5 in
43 the fiscal year that begins July 1, 2022.
44 (e) "Minimum basic local amount" means an amount that is:
45 (i) equal to the sum of:
46 (A) the school districts' contribution to the basic school program the previous fiscal
47 year;
48 (B) the amount generated by the basic levy increment rate;
49 (C) the amount generated by the equity pupil tax rate; and
50 (D) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax
51 Commission multiplied by the minimum basic rate; and
52 (ii) set annually by the Legislature in Subsection (3)(a).
53 (f) "Minimum basic tax rate" means a tax rate certified by the commission that will
54 generate an amount of revenue equal to the minimum basic local amount described in
55 Subsection (3)(a).
56 (g) "Weighted pupil unit value" or "WPU value" means the amount established each
57 year in the enacted public education budget that is multiplied by the number of weighted pupil
58 units to yield the funding level for the basic school program.
59 (h) "WPU value amount" means an amount:
60 (i) that is equal to the product of:
61 (A) [
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63 (B) the percentage share of local revenue to the cost of the basic school program in the
64 immediately preceding fiscal year; and
65 (ii) set annually by the Legislature in Subsection (4)(a).
66 (i) "WPU value increase limit" means the lesser of:
67 (i) the total cost to the basic school program to increase the WPU value over the WPU
68 value in the prior fiscal year; or
69 (ii) the total cost to the basic school program to increase the WPU value by 3% over
70 the WPU value in the prior fiscal year.
71 [
72 generate an amount of revenue equal to the WPU value amount described in Subsection (4)(a).
73 (3) (a) The minimum basic local amount for the fiscal year that begins on July 1, 2018,
74 is $408,073,800 in revenue statewide.
75 (b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
76 on July 1, 2018, is .001498.
77 (4) (a) The WPU value amount for the fiscal year that begins on July 1, 2018, is
78 $18,650,000 in revenue statewide.
79 (b) The preliminary estimate of the WPU value rate for the fiscal year that begins on
80 July 1, 2018, is .000069.
81 (5) (a) On or before June 22, the commission shall certify for the year:
82 (i) the minimum basic tax rate; and
83 (ii) the WPU value rate.
84 (b) The estimate of the minimum basic tax rate provided in Subsection (3)(b) and the
85 estimate of the WPU value rate provided in Subsection (4)(b) are based on a forecast for
86 property values for the next calendar year.
87 (c) The certified minimum basic tax rate described in Subsection (5)(a)(i) and the
88 certified WPU value rate described in Subsection (5)(a)(ii) are based on property values as of
89 January 1 of the current calendar year, except personal property, which is based on values from
90 the previous calendar year.
91 (6) (a) To qualify for receipt of the state contribution toward the basic school program
92 and as a school district's contribution toward the cost of the basic school program for the school
93 district, each local school board shall impose the combined basic rate.
94 (b) (i) The state is not subject to the notice requirements of Section 59-2-926 before
95 imposing the tax rates described in this Subsection (6).
96 (ii) (A) Except as provided in Subsection (6)(b)(ii)(B), the state is subject to the notice
97 requirements of Section 59-2-926 if the state authorizes a tax rate that exceeds the tax rates
98 described in this Subsection (6).
99 (B) For a calendar year that begins on January 1, 2018, the state is not subject to the
100 notice and public hearing requirements of Section 59-2-926 if the state authorizes a combined
101 basic rate that exceeds the tax rates authorized in this section.
102 (7) (a) The state shall contribute to each school district toward the cost of the basic
103 school program in the school district an amount of money that is the difference between the
104 cost of the school district's basic school program and the sum of revenue generated by the
105 school district by the following:
106 (i) the combined basic rate;
107 (ii) the basic levy increment rate; and
108 (iii) the equity pupil tax rate.
109 (b) (i) If the difference described in Subsection (7)(a) equals or exceeds the cost of the
110 basic school program in a school district, no state contribution shall be made to the basic
111 school program for the school district.
112 (ii) The proceeds of the difference described in Subsection (7)(a) that exceed the cost
113 of the basic school program shall be paid into the Uniform School Fund as provided by law and
114 by the close of the fiscal year in which the proceeds were calculated.
115 (8) Upon appropriation by the Legislature, the Division of Finance shall deposit an
116 amount equal to the proceeds generated statewide:
117 (a) by the basic levy increment rate into the Minimum Basic Growth Account created
118 in Section 53F-9-302;
119 (b) by the equity pupil tax rate into the Local Levy Growth Account created in Section
120 53F-9-305; and
121 (c) by the WPU value rate into the Teacher and Student Success Account created in
122 Section 53F-9-306.
123 (9) After July 1, 2022, but before November 30, 2022, the Public Education
124 Appropriations Subcommittee:
125 (a) shall review the WPU value rate, the impact of revenues generated by the WPU
126 value rate on public education funding, and whether local school boards should continue to
127 levy the WPU value rate; and
128 (b) may recommend an increase, repeal, or continuance of the WPU value rate.
129 Section 2. Section 53F-2-301.5 is amended to read:
130 53F-2-301.5. Minimum basic tax rate for a fiscal year that begins on July 1, 2018,
131 2019, 2020, 2021, or 2022.
132 (1) The provisions of this section are in effect for a fiscal year that begins before July 1,
133 2023.
134 (2) As used in this section:
135 (a) "Basic levy increment rate" means a tax rate that will generate an amount of
136 revenue equal to $75,000,000.
137 (b) "Combined basic rate" means a rate that is the sum of:
138 (i) the rate floor; and
139 (ii) the WPU value rate.
140 (c) "Commission" means the State Tax Commission.
141 (d) "Equity pupil tax rate" means the tax rate that is:
142 (i) calculated by subtracting the minimum basic tax rate from the rate floor; or
143 (ii) zero, if the rate calculated in accordance with Subsection (2)(d)(i) is zero or less.
144 (e) "Minimum basic local amount" means an amount that is:
145 (i) equal to the sum of:
146 (A) the school districts' contribution to the basic school program the previous fiscal
147 year;
148 (B) the amount generated by the basic levy increment rate; and
149 (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax
150 Commission multiplied by the minimum basic tax rate; and
151 (ii) set annually by the Legislature in Subsection (3)(a).
152 (f) "Minimum basic tax rate" means a tax rate certified by the commission that will
153 generate an amount of revenue equal to the minimum basic local amount described in
154 Subsection (3)(a).
155 (g) "Rate floor" means a rate that is the greater of:
156 (i) a .0016 tax rate; or
157 (ii) the minimum basic tax rate.
158 (h) "Weighted pupil unit value" or "WPU value" means the amount established each
159 year in the enacted public education budget that is multiplied by the number of weighted pupil
160 units to yield the funding level for the basic school program.
161 (i) "WPU value amount" means an amount that is:
162 (i) equal to the product of:
163 (A) [
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165 (B) the percentage share of local revenue to the cost of the basic school program in the
166 prior fiscal year; and
167 (ii) set annually by the Legislature in Subsection (4)(a).
168 (j) "WPU value increase limit" means the lesser of:
169 (i) the total cost to the basic school program to increase the WPU value over the WPU
170 value in the prior fiscal year; or
171 (ii) the total cost to the basic school program to increase the WPU value by 3% over
172 the WPU value in the prior fiscal year.
173 [
174 generate an amount of revenue equal to the WPU value amount described in Subsection (4)(a).
175 (3) (a) The minimum basic local amount for the fiscal year that begins on July 1, 2018,
176 is $408,073,800 in revenue statewide.
177 (b) The preliminary estimate for the minimum basic tax rate for the fiscal year that
178 begins on July 1, 2018, is .001498.
179 (4) (a) The WPU value amount for the fiscal year that begins on July 1, 2018, is
180 $18,650,000 in revenue statewide.
181 (b) The preliminary estimate for the WPU value rate for the fiscal year that begins on
182 July 1, 2018, is .000069.
183 (5) (a) On or before June 22, the commission shall certify for the year:
184 (i) the minimum basic tax rate; and
185 (ii) the WPU value rate.
186 (b) The estimate of the minimum basic tax rate provided in Subsection (3)(b) and the
187 estimate of the WPU value rate provided in Subsection (4)(b) is based on a forecast for
188 property values for the next calendar year.
189 (c) The certified minimum basic tax rate described in Subsection (5)(a)(i) and the
190 certified WPU value rate described in Subsection (5)(a)(ii) are based on property values as of
191 January 1 of the current calendar year, except personal property, which is based on values from
192 the previous calendar year.
193 (6) (a) To qualify for receipt of the state contribution toward the basic school program
194 and as a school district's contribution toward the cost of the basic school program for the school
195 district, a local school board shall impose the combined basic rate.
196 (b) (i) The state is not subject to the notice requirements of Section 59-2-926 before
197 imposing the tax rates described in this Subsection (6).
198 (ii) The state is subject to the notice requirements of Section 59-2-926 if the state
199 authorizes a tax rate that exceeds the tax rates described in this Subsection (6).
200 (7) (a) The state shall contribute to each school district toward the cost of the basic
201 school program in the school district an amount of money that is the difference between the
202 cost of the school district's basic school program and the sum of the revenue generated by the
203 school district by the following:
204 (i) the minimum basic tax rate;
205 (ii) the basic levy increment rate;
206 (iii) the equity pupil tax rate; and
207 (iv) the WPU value rate.
208 (b) (i) If the difference described in Subsection (7)(a) equals or exceeds the cost of the
209 basic school program in a school district, no state contribution shall be made to the basic
210 school program for the school district.
211 (ii) The proceeds of the difference described in Subsection (7)(a) that exceed the cost
212 of the basic school program shall be paid into the Uniform School Fund as provided by law and
213 by the close of the fiscal year in which the proceeds were calculated.
214 (8) Upon appropriation by the Legislature, the Division of Finance shall deposit an
215 amount equal to the proceeds generated statewide:
216 (a) by the basic levy increment rate into the Minimum Basic Growth Account created
217 in Section 53F-9-302;
218 (b) by the equity pupil tax rate into the Local Levy Growth Account created in Section
219 53F-9-305; and
220 (c) by the WPU value rate into the Teacher and Student Success Account created in
221 Section 53F-9-306.
222 Section 3. Section 53G-7-217 is enacted to read:
223 53G-7-217. Meeting requirement for using Teacher and Student Success Account
224 funds.
225 Before using funds distributed by the state board from the Teacher and Student Success
226 Account described in Section 53F-9-306, an LEA governing board shall hold a meeting that is
227 subject to Title 52, Chapter 4, Open and Public Meetings Act, to:
228 (1) discuss how the LEA proposes to use the funds; and
229 (2) allow for public comment on the proposed use of the funds.