Bill Summary – FastDemocracy

Enrolled Copy                                                                              S.B. 2
                      PUBLIC EDUCATION BUDGET AMENDMENTS
                                      2022 GENERAL SESSION
                                          STATE OF UTAH
                                 Chief Sponsor: Lincoln Fillmore
                                  House Sponsor: Steve Eliason
 6
 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, 2021, and ending
 June 30, 2022, and appropriates funds for the fiscal year beginning July 1, 2022, and
 ending June 30, 2023.
 Highlighted Provisions:
        This bill:
        < provides appropriations for the use and support of school districts, charter schools,
 and state education agencies;
        < sets the value of the weighted pupil unit (WPU) at $4,038 for fiscal year 2023;
        < directs the State Board of Education on how to execute certain funding programs;
        < provides teacher bonuses for certain teachers who accepted extra work assignments;
        < permits the state board to use certain nonlapsing balances to provide grants for
 scholarships for certain school employees to become school-based mental health
 workers;
        < changes the state contribution for transportation costs for school districts;
        < changes the calculation of WPUs for foreign exchange students;
        < amends the calculation of hold-harmless allocations to local education agencies for
 At-Risk WPUs;
        < amends the growth formula for concurrent enrollment;
        < provides appropriations for other purposes as described;
        < transfers funding from the Uniform School Fund to various restricted funds and
      S.B. 2                                                                          Enrolled Copy
 accounts;
        < reorganizes operating programs among line items at the State Board of Education;
        < provides appropriations for other purposes as described;
        < makes technical and conforming changes; and
        < approves intent language.
 Money Appropriated in this Bill:
        This bill appropriates $496,787,400 in operating and capital budgets for fiscal year
 2022, including:
        < ($21,293,200) from the Uniform School Fund;
        < ($807,600) from the Education Fund; and
        < $518,888,200 from various sources as detailed in this bill.
        This bill appropriates $21,293,200 in restricted fund and account transfers for fiscal
 year 2022, from the Uniform School Fund.
        This bill appropriates $712,092,400 in operating and capital budgets for fiscal year
 2023, including:
        < $126,973,600 from the Uniform School Fund;
        < $25,440,500 from the Education Fund; and
        < $559,678,300 from various sources as detailed in this bill.
        This bill appropriates $8,733,200 in restricted fund and account transfers for fiscal year
 2023, from the Education Fund.
 Other Special Clauses:
        This bill provides a special effective date.
        This bill provides a coordination clause.
 Utah Code Sections Affected:
 AMENDS:
        53F-2-301.5, as last amended by Laws of Utah 2021, Chapter 6
        53F-2-303, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 14
        53F-2-314, as enacted by Laws of Utah 2021, Chapter 319
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       Enrolled Copy                                                                                S.B. 2
         53F-2-402, as last amended by Laws of Utah 2019, Chapter 186
         53F-2-409, as last amended by Laws of Utah 2020, Chapters 220, 365, 378, and 408
         53F-2-415, as last amended by Laws of Utah 2020, Chapters 202 and 408
         63I-2-253, as last amended by Laws of Utah 2021, First Special Session, Chapter 14
 ENACTS:
         53F-2-524, Utah Code Annotated 1953
 Utah Code Sections Affected by Coordination Clause:
         53F-2-301.5, as last amended by Laws of Utah 2021, Chapter 6
66
 Be it enacted by the Legislature of the state of Utah:
         Section 1. 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:
         (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
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        S.B. 2                                                                        Enrolled Copy
 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:
         (A) the WPU value increase limit; 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 increase limit" means the lesser of:
         (i) the total cost to the basic school program to increase the WPU value over the WPU
 value in the prior fiscal year; or
         (ii) the total cost to the basic school program to increase the WPU value by 4% over
 the WPU value in the prior fiscal year.
         (k) "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,
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        Enrolled Copy                                                                                S.B. 2
 [2021, is $575,931,800] 2022, is $645,921,400 in revenue statewide.
        (b) The preliminary estimate for the minimum basic tax rate for the fiscal year that
 begins on July 1, [2021, is .001554] 2022, is 0.001579.
        (4) (a) The WPU value amount for the fiscal year that begins on July 1, [2021, is
 $22,484,800] 2022, is $24,952,000 in revenue statewide.
        (b) The preliminary estimate for the WPU value rate for the fiscal year that begins on
 July 1, [2021, is .000063] 2022, is 0.000061.
        (5) (a) On or before June 22, the commission shall certify for the year:
        (i) the minimum basic tax rate; and
        (ii) the WPU value rate.
        (b) The estimate of the minimum basic tax rate provided in Subsection (3)(b) and the
 estimate of the WPU value rate provided in Subsection (4)(b) is based on a forecast for
 property values for the next calendar year.
        (c) The certified minimum basic tax rate described in Subsection (5)(a)(i) and the
 certified WPU value rate described in Subsection (5)(a)(ii) are based on property values as of
 January 1 of the current calendar year, except personal property, which is based on values from
 the previous calendar year.
        (6) (a) To qualify for receipt of the state contribution toward the basic school program
 and as a school district's contribution toward the cost of the basic school program for the school
 district, a local school board shall impose the combined basic rate.
        (b) (i) The state is not subject to the notice requirements of Section 59-2-926 before
 imposing the tax rates described in this Subsection (6).
        (ii) The state is subject to the notice requirements of Section 59-2-926 if the state
 authorizes a tax rate that exceeds the tax rates described in this Subsection (6).
        (7) (a) The state shall contribute to each school district toward the cost of the basic
 school program in the school district an amount of money that is the difference between the
 cost of the school district's basic school program and the sum of the revenue generated by the
 school district by the following:
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        S.B. 2                                                                         Enrolled Copy
        (i) the minimum basic tax rate;
        (ii) the basic levy increment rate;
        (iii) the equity pupil tax rate; and
        (iv) the WPU value rate.
        (b) (i) If the difference described in Subsection (7)(a) equals or exceeds the cost of the
 basic school program in a school district, no state contribution shall be made to the basic
 school program for the school district.
        (ii) The proceeds of the difference described in Subsection (7)(a) that exceed the cost
 of the basic school program shall be paid into the Uniform School Fund as provided by law and
 by the close of the fiscal year in which the proceeds were calculated.
        (8) Upon appropriation by the Legislature, the Division of Finance shall deposit an
 amount equal to the proceeds generated statewide:
        (a) by the basic levy increment rate into the Minimum Basic Growth Account created
 in Section 53F-9-302;
        (b) by the equity pupil tax rate into the Local Levy Growth Account created in Section
 53F-9-305; and
        (c) by the WPU value rate into the Teacher and Student Success Account created in
 Section 53F-9-306.
        Section 2. Section 53F-2-303 is amended to read:
        53F-2-303. Foreign exchange student weighted pupil units.
        (1) A school district or charter school may include foreign exchange students in the
 district's or school's membership and attendance count for the purpose of apportionment of
 state money, except as provided in Subsections (2) through (5).
        (2) (a) Notwithstanding Section 53F-2-302, foreign exchange students may not be
 included in average daily membership for the purpose of determining the number of weighted
 pupil units in the grades 1-12 basic program.
        (b) Subject to the limitation in Subsection (3), and except as provided in Subsection
 (5), the number of weighted pupil units in the grades 1-12 basic program attributed to foreign
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        Enrolled Copy                                                                              S.B. 2
 exchange students shall be equal to the number of foreign exchange students who were:
        (i) enrolled in a school district or charter school on October 1 of the previous fiscal
 year; and
        (ii) sponsored by an agency approved by the district's local school board or charter
 school's governing board.
        (3) (a) Except as provided in Subsection (5), the total number of foreign exchange
 students in the state that may be counted for the purpose of apportioning state money under
 Subsection (2) shall be the [lesser] greater of:
        (i) [the number of foreign exchange] 0.0025 of students enrolled in grades 10 through
 12 in public schools in the state on October 1 of the previous fiscal year; or
        (ii) 328 foreign exchange students.
        (b) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah
 Administrative Rulemaking Act, to administer the cap on the number of foreign exchange
 students that may be counted for the purpose of apportioning state money under Subsection (2).
        (4) Notwithstanding Section 53F-2-601, weighted pupil units in the grades 1-12 basic
 program for foreign exchange students, as determined by Subsections (2) and (3), may not be
 included for the purposes of determining a school district's state guarantee money under
 Section 53F-2-601.
        (5) This section does not apply to the 2020-2021 academic year.
        Section 3. Section 53F-2-314 is amended to read:
        53F-2-314. Weighted pupil units for students who are at-risk.
        (1) As used in this section:
        (a) "At risk" means that a public education student:
        (i) scores below proficient on a state board or LEA approved assessment; or
        (ii) meets an LEA governing board's approved definition of an at-risk student.
        (b) "Limited English proficiency" means that an English learner student received a
 score of 1-4 on an English language proficiency assessment.
        (2) (a) Additional weighted pupil units for students who are at-risk are computed based
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        S.B. 2                                                                             Enrolled Copy
 on the number of students within each LEA on October 1 of the previous school year as
 follows, added to a base of five WPUs for each LEA:
          (i) for the fiscal year beginning on July 1, 2021:
          (A) for each student who is eligible to receive free or reduced price lunch, .05
 additional weighted pupil units; and
          (B) for each student with limited English proficiency, .025 additional weighted pupil
 units; and
          (ii) for each fiscal year after the fiscal year described in Subsection (2)(a)(i), the
 additional weighed pupil units shall increase, subject to the approval of the Executive
 Appropriations Committee, by amounts that the Public Education Appropriations
 Subcommittee recommends in the subcommittee's evaluation and recommendations described
 in Section 53E-1-202.2, up to:
          (A) for each student who is eligible to receive free or reduced price lunch, .3 total
 weighted pupil units; and
          (B) for each student with limited English proficiency, up to .1 total weighted pupil
 units.
          (b) Funding for a student who falls within both Subsections (2)(a)(i)(A) and (B) shall
 be computed under both weighting factors.
          (3) An LEA governing board shall use money distributed under this section to improve
 the academic achievement of students who are at-risk.
          (4) For a year in which an allocation to an LEA under this section is less than the
 allocation to the LEA under the Enhancement for At-Risk Students Program in the 2021 fiscal
 year, the Executive Appropriations Committee shall include a one-time appropriation in the
 public education budget to supplement the difference between the two amounts, less any
 amount of state guarantee money that an LEA receives under Subsection 53F-2-601(2)(a), from
 weighted pupil units generated in Subsection (2).
          (5) (a) Annually, an LEA shall provide the following information to the state board:
          (i) a report of the LEA's use of funds allocated under this section through the annual
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        Enrolled Copy                                                                               S.B. 2
 financial reporting process; and
        (ii) the LEA's outcome data or a report of intervention effectiveness related to the use
 of the LEA's use of funds allocated under this section.
        (b) The state board shall monitor the learning outcomes resulting from the LEA's use of
 funds under this section.
        Section 4. Section 53F-2-402 is amended to read:
        53F-2-402. State support of pupil transportation.
        (1) Money appropriated to the state board for state-supported transportation of public
 school students shall be apportioned and distributed in accordance with Section 53F-2-403,
 except as otherwise provided in this section.
        (2) (a) The Utah Schools for the Deaf and the Blind shall use an allocation of pupil
 transportation money to pay for transportation of students based on current valid contractual
 arrangements and best transportation options and methods as determined by the schools.
        (b) All student transportation costs of the schools shall be paid from the allocation of
 pupil transportation money specified in statute.
        (3) (a) A local scho