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7 LONG TITLE
8 General Description:
9 This bill requires the exclusion of a fully online student from an local education
10 agency's (LEA) capital outlay funding formulas.
11 Highlighted Provisions:
12 This bill:
13 ▸ amends the capital outlay foundation distribution formula;
14 ▸ amends the capital outlay enrollment growth distribution formula; and
15 ▸ makes technical changes.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill provides a special effective date.
20 Utah Code Sections Affected:
21 AMENDS:
22 53F-3-202, as last amended by Laws of Utah 2019, Chapter 186
23 53F-3-203, as last amended by Laws of Utah 2019, Chapter 186
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25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 53F-3-202 is amended to read:
27 53F-3-202. Capital Outlay Foundation Program created -- Distribution formulas
28 -- Allocations.
29 (1) As used in this section:
30 (a) "ADM" or "pupil in average daily membership" means the same as that term is
31 defined in Section 53F-2-102 excluding a pupil fully enrolled in an online education program
32 for at least 180 days.
33 (b) "Foundation guarantee level per ADM" means a minimum revenue amount per
34 ADM generated by the base tax effort rate, including the following:
35 (i) the revenue generated locally from a school district's combined capital levy rate; and
36 (ii) the revenue allocated to a school district by the state board in accordance with
37 Section 53F-3-202.
38 [
39 per ADM less than the foundation guarantee level per ADM.
40 [
41 in average daily membership.
42 (2) There is created the Capital Outlay Foundation Program to provide capital outlay
43 funding to a school district based on a district's local property tax effort and property tax yield
44 per student compared to a foundation guarantee funding level.
45 (3) (a) The state board shall determine the foundation guarantee level per ADM that
46 fully allocates the funds appropriated to the state board for distribution under this section.
47 (b) In determining the foundation guarantee level per ADM and a school district's
48 allocation of funds under this section, the state board shall use data from the fiscal year that is
49 two years prior to the fiscal year the school district receives the allocation, including the:
50 (i) number of pupils in average daily membership;
51 (ii) tax rates; and
52 (iii) derived net taxable value.
53 (4) By June 1, a county treasurer shall report to the state board the actual collections of
54 property taxes in the school districts located within the county treasurer's county for the period
55 beginning April 1 through the following March 31 immediately preceding that June 1.
56 (5) If a qualifying school district imposes a combined capital levy rate that is greater
57 than or equal to the base tax effort rate, the state board shall allocate to the qualifying school
58 district an amount equal to the product of the following:
59 (a) the qualifying school district's ADM; and
60 (b) an amount equal to the difference between the following:
61 (i) the foundation guarantee level per ADM, as determined in accordance with
62 Subsection (3); and
63 (ii) the qualifying school district's property tax yield per ADM.
64 (6) If a qualifying school district imposes a combined capital levy rate less than the
65 base tax effort rate, the state board shall allocate to the qualifying school district an amount
66 equal to the product of the following:
67 (a) the qualifying school district's ADM;
68 (b) an amount equal to the difference between the following:
69 (i) the foundation guarantee level per ADM; and
70 (ii) the qualifying school district's property tax yield per ADM; and
71 (c) a percentage equal to:
72 (i) the qualifying school district's combined capital levy rate; divided by
73 (ii) the base tax effort rate.
74 (7) (a) The state board shall allocate:
75 (i) a minimum of $200,000 to each small school district with a property tax base per
76 ADM less than or equal to the statewide average property tax base per ADM;
77 (ii) a minimum of $100,000 to each small school district with a property tax base per
78 ADM that is:
79 (A) greater than the statewide average property tax base per ADM; and
80 (B) less than or equal to two times the statewide average property tax base per ADM;
81 and
82 (iii) a minimum of $50,000 to each small school district with a property tax base per
83 ADM that is:
84 (A) greater than two times the statewide average property tax base per ADM; and
85 (B) less than or equal to five times the statewide average property tax base per ADM.
86 (b) The state board shall incorporate the minimum allocations described in Subsection
87 (7)(a) in its calculation of the foundation guarantee level per ADM determined in accordance
88 with Subsection (3).
89 Section 2. Section 53F-3-203 is amended to read:
90 53F-3-203. Capital Outlay Enrollment Growth Program created -- Distribution
91 formulas -- Allocations.
92 (1) As used in this section:
93 (a) "Average annual net enrollment increase" means the quotient of:
94 (i) (A) enrollment in the prior fiscal year, based on October 1 enrollment counts
95 excluding a pupil fully enrolled in an online education program for at least 180 days; minus
96 (B) enrollment in the year four years prior, based on October 1 enrollment counts
97 excluding a pupil fully enrolled in an online education program for at least 180 days; divided
98 by
99 (ii) three.
100 (b) "Eligible district" or "eligible school district" means a school district that:
101 (i) has an average annual net enrollment increase; and
102 (ii) has a property tax base per ADM in the year two years prior that is less than two
103 times the statewide average property tax base per ADM in the year two years prior.
104 (2) There is created the Capital Outlay Enrollment Growth Program to provide capital
105 outlay funding to school districts experiencing net enrollment increases.
106 (3) [
107 annually allocate appropriated funds to eligible school districts in accordance with Subsection
108 (4).
109 (4) The state board shall allocate to an eligible school district an amount equal to the
110 product of:
111 (a) the quotient of:
112 (i) the eligible school district's average annual net enrollment increase; divided by
113 (ii) the sum of the average annual net enrollment increase in all eligible school
114 districts; and
115 (b) the total amount appropriated for the Capital Outlay Enrollment Growth Program in
116 that fiscal year.
117 Section 3. Effective date.
118 This bill takes effect on July 1, 2024.