Bill Summary – FastDemocracy

Enrolled Copy                                                                             S.B. 2
                      PUBLIC EDUCATION BUDGET AMENDMENTS
                                         2020 GENERAL SESSION
                                            STATE OF UTAH
                                 Chief Sponsor: Lyle W. Hillyard
                                      House Sponsor: Steve Eliason
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 LONG TITLE
 General Description:
        This bill supplements or reduces appropriations otherwise provided for the support and
 operation of public education for the fiscal year beginning July 1, 2019, and ending
 June 30, 2020, and for the fiscal year beginning July 1, 2020, and ending June 30, 2021.
 Highlighted Provisions:
        This bill:
        < provides appropriations for the use and support of school districts, charter schools,
 and state education agencies;
        < increases the value of the weighted pupil unit (WPU) by 6% over the value of the
 WPU for fiscal year 2020 to set the value at $3,745 for fiscal year 2021;
        < adjusts the number of weighted pupil units to implement program changes in the
 Necessarily Existent Small Schools program;
        < provides appropriations for other purposes as described;
        < amends and enacts provisions related to certain appropriations for public education,
 including:
              C   youth in custody;
              C   use of Minimum School Program balances;
              C   charter school administration; and
              C   the nonlapsing authority of the State Board of Education;
        < makes technical and conforming changes; and
        < provides intent language.
 Money Appropriated in this Bill:
      S.B. 2                                                                         Enrolled Copy
        This bill appropriates $3,820,200 in operating and capital budgets for fiscal year 2020,
 all of which is from the Education Fund.
        This bill appropriates $263,313,500 in operating and capital budgets for fiscal year
 2021, including:
        <   $236,365,300 from the Education Fund; and
        <   $26,948,200 from various sources as detailed in this bill.
        This bill appropriates $22,350,000 in restricted fund and account transfers for fiscal
 year 2021, including:
        <   $20,600,000 from the Education Fund; and
        <   $1,750,000 from various sources as detailed in this bill.
 Other Special Clauses:
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        53E-1-202, as enacted by Laws of Utah 2019, Chapter 324 and last amended by
 Coordination Clause, Laws of Utah 2019, Chapter 223
        53E-3-503, as last amended by Laws of Utah 2019, Chapters 186 and 187
        53F-2-205, as last amended by Laws of Utah 2019, Chapter 186
        53F-2-301.5, as last amended by Laws of Utah 2019, Chapter 408
        53F-2-304, as last amended by Laws of Utah 2019, Chapter 186
        53F-2-306, as last amended by Laws of Utah 2019, Chapters 186 and 408
        53F-2-504, as last amended by Laws of Utah 2019, Chapters 134, 186, and 283
        63J-1-602.2, as last amended by Laws of Utah 2019, Chapters 136, 326, 468, and 469
 ENACTS:
        53F-9-103, Utah Code Annotated 1953
 REPEALS:
        53F-2-414, as last amended by Laws of Utah 2019, Chapters 136 and 408
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       Enrolled Copy                                                                            S.B. 2
 Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 53E-1-202 is amended to read:
         53E-1-202. Reports to and action required of the Public Education
 Appropriations Subcommittee.
         (1) In accordance with applicable provisions and Section 68-3-14, the following
 recurring reports are due to the Public Education Appropriations Subcommittee:
         (a) the State Superintendent's Annual Report by the state board described in Section
 53E-1-203;
         (b) the report described in Section 53E-10-703 by the Utah Leading through Effective,
 Actionable, and Dynamic Education director on research and other activities; and
         (c) the report by the STEM Action Center Board described in Section 63N-12-208,
 including the information described in Section 63N-12-213 on the status of the computer
 science initiative.
         (2) (a) The one-time report by the state board regarding cost centers and implementing
 activity based costing is due to the Public Education Appropriations Subcommittee in
 accordance with Section 53E-3-520.
         (b) The occasional report, described in Section 53F-2-502 by the state board on the
 program evaluation of the dual language immersion program, is due to the Public Education
 Appropriations Subcommittee and in accordance with Section 68-3-14.
         (3) In accordance with applicable provisions, the Public Education Appropriations
 Subcommittee shall complete the following:
         (a) the evaluation described in Section 53F-2-410 of funding for at-risk students; and
         [(b) the reviews of related to basic school programs as described in Section 53F-2-414;
 and]
         [(c)] (b) if required, the study described in Section 53F-4-304 of scholarship payments.
         Section 2. Section 53E-3-503 is amended to read:
         53E-3-503. Education of individuals in custody of or receiving services from
 certain state agencies -- Establishment of coordinating council -- Advisory councils.
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        S.B. 2                                                                          Enrolled Copy
         (1) (a) The state board is directly responsible for the education of all individuals who
 are:
         (i) (A) younger than 21 years old; or
         (B) eligible for special education services as described in Chapter 7, Part 2, Special
 Education Program; and
         (ii) (A) receiving services from the Department of Human Services;
         (B) in the custody of an equivalent agency of a Native American tribe recognized by
 the United States Bureau of Indian Affairs and whose custodial parent resides within the state;
 or
         (C) being held in a juvenile detention facility.
         (b) The state board shall:
         (i) make rules to provide for the distribution of funds for the education of individuals
 described in Subsection (1)(a)[.]; and
         (ii) expend funds appropriated for the education of youth in custody in the following
 order of priority:
         (A) for students in a facility described in Subsection (1)(a)(ii) who are not included in
 an LEA's average daily membership; and
         (B) for students in a facility described in Subsection (1)(a)(ii) who are included in an
 LEA's average daily membership and who may benefit from additional educational support
 services.
         (c) Subject to future budget constraints, the amount appropriated for the education of
 youth in custody under this section shall increase annually based on the following:
         (i) the percentage of enrollment growth of students in kindergarten through grade 12;
 and
         (ii) changes to the value of the weighted pupil unit as defined in Section 53F-4-301.
         (2) Subsection (1)(a)(ii)(B) does not apply to an individual taken into custody for the
 primary purpose of obtaining access to education programs provided for youth in custody.
         (3) The state board shall, where feasible, contract with school districts or other
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        Enrolled Copy                                                                              S.B. 2
 appropriate agencies to provide educational, administrative, and supportive services, but the
 state board shall retain responsibility for the programs.
         (4) The Legislature shall establish and maintain separate education budget categories
 for youth in custody or who are under the jurisdiction of the following state agencies:
         (a) detention centers and the Divisions of Juvenile Justice Services and Child and
 Family Services;
         (b) the Division of Substance Abuse and Mental Health; and
         (c) the Division of Services for People with Disabilities.
         (5) (a) The Department of Human Services and the state board shall appoint a
 coordinating council to plan, coordinate, and recommend budget, policy, and program
 guidelines for the education and treatment of persons in the custody of the Division of Juvenile
 Justice Services and the Division of Child and Family Services.
         (b) The Department of Human Services and the state board may appoint similar
 councils for those in the custody of the Division of Substance Abuse and Mental Health or the
 Division of Services for People with Disabilities.
         (6) A school district contracting to provide services under Subsection (3) shall
 establish an advisory council to plan, coordinate, and review education and treatment programs
 for individuals held in custody in the district.
         Section 3. Section 53F-2-205 is amended to read:
         53F-2-205. Powers and duties of state board to adjust Minimum School Program
 allocations -- Use of remaining funds at the end of a fiscal year.
         (1) As used in this section:
         (a) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
 Sec. 6301 et seq.
         (b) "Program" means a program or allocation funded by a line item appropriation or
 other appropriation designated as:
         (i) Basic Program;
         (ii) Related to Basic Programs;
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       S.B. 2                                                                          Enrolled Copy
        (iii) Voted and Board Levy Programs; or
        (iv) Minimum School Program.
        (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
 in a program is underestimated, the state board shall reduce the value of the weighted pupil unit
 in that program so that the total amount paid for the program does not exceed the amount
 appropriated for the program.
        (3) If the number of weighted pupil units in a program is overestimated, the state board
 shall spend excess money appropriated for the following purposes giving priority to the
 purpose described in Subsection (3)(a):
        (a) to support the value of the weighted pupil unit in a program within the basic
 state-supported school program in which the number of weighted pupil units is underestimated;
        (b) to support the state guaranteed local levy increments as defined in Section
 53F-2-601, if:
        (i) local contributions to the voted local levy program or board local levy program are
 overestimated; or
        (ii) the number of weighted pupil units within school districts qualifying for a
 guarantee is underestimated;
        (c) to support the state supplement to local property taxes allocated to charter schools,
 if the state supplement is less than the amount prescribed by Section 53F-2-704; [or]
        (d) to fund the cost of the salary supplements described in Section 53F-2-504; or
        [(d)] (e) to support a school district with a loss in student enrollment as provided in
 Section 53F-2-207.
        (4) If local contributions from the minimum basic tax rate imposed under Section
 53F-2-301 or 53F-2-301.5, as applicable, are overestimated, the state board shall reduce the
 value of the weighted pupil unit for all programs within the basic state-supported school
 program so the total state contribution to the basic state-supported school program does not
 exceed the amount of state funds appropriated.
        (5) If local contributions from the minimum basic tax rate imposed under Section
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        Enrolled Copy                                                                                S.B. 2
 53F-2-301 or 53F-2-301.5, as applicable, are underestimated, the state board shall:
         (a) spend the excess local contributions for the purposes specified in Subsection (3),
 giving priority to supporting the value of the weighted pupil unit in programs within the basic
 state-supported school program in which the number of weighted pupil units is underestimated;
 and
         (b) reduce the state contribution to the basic state-supported school program so the
 total cost of the basic state-supported school program does not exceed the total state and local
 funds appropriated to the basic state-supported school program plus the local contributions
 necessary to support the value of the weighted pupil unit in programs within the basic
 state-supported school program in which the number of weighted pupil units is underestimated.
         (6) Except as provided in Subsection (3) or (5), the state board shall reduce the state
 guarantee per weighted pupil unit provided under the local levy state guarantee program
 described in Section 53F-2-601, if:
         (a) local contributions to the voted local levy program or board local levy program are
 overestimated; or
         (b) the number of weighted pupil units within school districts qualifying for a
 guarantee is underestimated.
         (7) Money appropriated to the state board is nonlapsing, including appropriations to the
 Minimum School Program and all agencies, line items, and programs under the jurisdiction of
 the state board.
         (8) The state board shall report actions taken by the state board under this section to the
 Office of the Legislative Fiscal Analyst and the Governor's Office of Management and Budget.
         Section 4. Section 53F-2-301.5 is amended to read:
         53F-2-301.5. Minimum basic tax rate for a fiscal year that begins on July 1, 2018,
 2019, 2020, 2021, or 2022.
         (1) The provisions of this section are in effect for a fiscal year that begins before July 1,
 2023.
         (2) As used in this section:
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        S.B. 2                                                                           Enrolled Copy
         (a) "Basic levy increment rate" means a tax rate that will generate an amount of
 revenue equal to $75,000,000.
         (b) "Combined basic rate" means a rate that is the sum of:
         (i) the rate floor; and
         (ii) the WPU value rate.
         (c) "Commission" means the State Tax Commission.
         (d) "Equity pupil tax rate" means the tax rate that is:
         (i) calculated by subtracting the minimum basic tax rate from the rate floor; or
         (ii) zero, if the rate calculated in accordance with Subsection (2)(d)(i) is zero or less.
         (e) "Minimum basic local amount" means an amount that is:
         (i) equal to the sum of:
         (A) the school districts' contribution to the basic school program the previous fiscal
 year;
         (B) the amount generated by the basic levy increment rate; and
         (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax
 Commission multiplied by the minimum basic tax rate; and
         (ii) set annually by the Legislature in Subsection (3)(a).
         (f) "Minimum basic tax rate" means a tax rate certified by the commission that will
 generate an amount of revenue equal to the minimum basic local amount described in
 Subsection (3)(a).
         (g) "Rate floor" means a rate that is the greater of:
         (i) a .0016 tax rate; or
         (ii) the minimum basic tax rate.
         (h) "Weighted pupil unit value" or "WPU value" means the amount established each
 year in the enacted public education budget that is multiplied by the number of weighted pupil
 units to yield the funding level for the basic school program.
         (i) "WPU value amount" means an amount that is:
         (i) equal to the product of:
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        Enrolled Copy                                                                             S.B. 2
        (A) the total cost to the basic school program to increase the WPU value over the WPU
 value in the prior fiscal year; and
        (B) the percentage share of local revenue to the cost of the basic school program in the
 prior fiscal year; and
        (ii) set annually by the Legislature in Subsection (4)(a).
        (j) "WPU value rate" means a tax rate certified by the commission that will generate an
 amount of revenue equal to the WPU value amount described in Subsection (4)(a).
        (3) (a) The minimum basic local amount for the fiscal year that begins on July 1,
 [2019] 2020, is [$490,684,600] $547,952,600 in revenue statewide.
        (b) The preliminary estimate for the minimum basic tax rate for the fiscal year that
 begins on July 1, [2019] 2020, is [.001588] .001576.
        (4) (a) The WPU value amount for the fiscal year that begins on July 1, [2019] 2020, is
 [$18,800,000] $20,600,000 in revenue statewide.
        (b) The preliminary estimate for the WPU value rate for the fiscal year that begins on
 July 1, [2019] 2020, is [.000061] .000060.
        (5) (a) On or before June 22, the commission shall certify for the year:
        (i) the