Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 65 (2024GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/20/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends the capital outlay foundation distribution formula;
• amends the capital outlay enrollment growth distribution formula; and
• makes technical changes.

Every vote on this bill

Bill text

ONLINE STUDENT FUNDING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
 Carol S. Moss
LONG TITLE
General Description:
This bill requires the exclusion of a fully online student from an local education
agency's (LEA) capital outlay funding formulas.
Highlighted Provisions:
This bill:
▸ amends the capital outlay foundation distribution formula;
▸ amends the capital outlay enrollment growth distribution formula; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
53F-3-202
, as last amended by Laws of Utah 2019, Chapter 186
53F-3-203
, as last amended by Laws of Utah 2019, Chapter 186
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53F-3-202
 is amended to read:
53F-3-202.
Capital Outlay Foundation Program created -- Distribution formulas
-- Allocations.
(1) As used in this section:
(a) 
"ADM" or "pupil in average daily membership" means the same as that term is
defined in Section 
53F-2-102
 excluding a pupil fully enrolled in an online education program
for at least 180 days.
(b)
 "Foundation guarantee level per ADM" means a minimum revenue amount per
ADM generated by the base tax effort rate, including the following:
(i) the revenue generated locally from a school district's combined capital levy rate; and
(ii) the revenue allocated to a school district by the state board in accordance with
Section 
53F-3-202
.
[
(b)
] 
(c)
 "Qualifying school district" means a school district with a property tax yield
per ADM less than the foundation guarantee level per ADM.
[
(c)
] 
(d)
 "Small school district" means a school district that has fewer than 1,000 pupils
in average daily membership.
(2) There is created the Capital Outlay Foundation Program to provide capital outlay
funding to a school district based on a district's local property tax effort and property tax yield
per student compared to a foundation guarantee funding level.
(3) (a) The state board shall determine the foundation guarantee level per ADM that
fully allocates the funds appropriated to the state board for distribution under this section.
(b) In determining the foundation guarantee level per ADM and a school district's
allocation of funds under this section, the state board shall use data from the fiscal year that is
two years prior to the fiscal year the school district receives the allocation, including the:
(i) number of pupils in average daily membership;
(ii) tax rates; and
(iii) derived net taxable value.
(4) By June 1, a county treasurer shall report to the state board the actual collections of
property taxes in the school districts located within the county treasurer's county for the period
beginning April 1 through the following March 31 immediately preceding that June 1.
(5) If a qualifying school district imposes a combined capital levy rate that is greater
than or equal to the base tax effort rate, the state board shall allocate to the qualifying school
district an amount equal to the product of the following:
(a) the qualifying school district's ADM; and
(b) an amount equal to the difference between the following:
(i) the foundation guarantee level per ADM, as determined in accordance with
Subsection (3); and
(ii) the qualifying school district's property tax yield per ADM.
(6) If a qualifying school district imposes a combined capital levy rate less than the
base tax effort rate, the state board shall allocate to the qualifying school district an amount
equal to the product of the following:
(a) the qualifying school district's ADM;
(b) an amount equal to the difference between the following:
(i) the foundation guarantee level per ADM; and
(ii) the qualifying school district's property tax yield per ADM; and
(c) a percentage equal to:
(i) the qualifying school district's combined capital levy rate; divided by
(ii) the base tax effort rate.
(7) (a) The state board shall allocate:
(i) a minimum of $200,000 to each small school district with a property tax base per
ADM less than or equal to the statewide average property tax base per ADM;
(ii) a minimum of $100,000 to each small school district with a property tax base per
ADM that is:
(A) greater than the statewide average property tax base per ADM; and
(B) less than or equal to two times the statewide average property tax base per ADM;
and
(iii) a minimum of $50,000 to each small school district with a property tax base per
ADM that is:
(A) greater than two times the statewide average property tax base per ADM; and
(B) less than or equal to five times the statewide average property tax base per ADM.
(b) The state board shall incorporate the minimum allocations described in Subsection
(7)(a) in its calculation of the foundation guarantee level per ADM determined in accordance
with Subsection (3).
Section 2. Section 
53F-3-203
 is amended to read:
53F-3-203.
Capital Outlay Enrollment Growth Program created -- Distribution
formulas -- Allocations.
(1) As used in this section:
(a) "Average annual net enrollment increase" means the quotient of:
(i) (A) enrollment in the prior fiscal year, based on October 1 enrollment counts
excluding a pupil fully enrolled in an online education program for at least 180 days
; minus
(B) enrollment in the year four years prior, based on October 1 enrollment counts
excluding a pupil fully enrolled in an online education program for at least 180 days
; divided
by
(ii) three.
(b) "Eligible district" or "eligible school district" means a school district that:
(i) has an average annual net enrollment increase; and
(ii) has a property tax base per ADM in the year two years prior that is less than two
times the statewide average property tax base per ADM in the year two years prior.
(2) There is created the Capital Outlay Enrollment Growth Program to provide capital
outlay funding to school districts experiencing net enrollment increases.
(3) [
For fiscal years beginning on or after July 1, 2008, the
] 
The
 state board shall
annually allocate appropriated funds to eligible school districts in accordance with Subsection
(4).
(4) The state board shall allocate to an eligible school district an amount equal to the
product of:
(a) the quotient of:
(i) the eligible school district's average annual net enrollment increase; divided by
(ii) the sum of the average annual net enrollment increase in all eligible school
districts; and
(b) the total amount appropriated for the Capital Outlay Enrollment Growth Program in
that fiscal year.
Section 3. 
Effective date.
This bill takes effect on July 1, 2024.