No. 29039 (Amendment): R277-422. State Supported Voted Leeway, Local Board-Approved Leeway and Local Board Leeway for Reading Improvement Programs

DAR File No.: 29039
Filed: 09/15/2006, 05:23
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to allow school districts to be exempt from the advertisement (notice) requirements of the property tax law when increasing the voted leeway levy above the certified tax rate if an election to consider the leeway is held within four years. This amendment brings the rule in compliance with changes in state law.

Summary of the rule or change:

The amended rule adds a definition and allows a school district to budget an increased amount of ad valorem property tax revenue without required advertising requirements based on the date of voted leeway approval.

State statutory or constitutional authorization for this rule:

Subsections 53A-1-402(1)(e) and 53A-1-401(3)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget. Any savings will benefit school districts.

local governments:

There are no anticipated costs to local government. School districts may save a modest amount of money in their exemption from advertising certain increases usually required by law.

other persons:

There are no anticipated costs or savings to other persons. Any savings may affect school districts, not individuals.

Compliance costs for affected persons:

There are no compliance costs for affected persons. There may be savings, not costs, for school districts.

Comments by the department head on the fiscal impact the rule may have on businesses:

I have reviewed this rule and I see no fiscal impact on businesses. Patti Harrington, State Superintendent of Public Instruction

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY UT 84111-3272

Direct questions regarding this rule to:

Carol Lear at the above address, by phone at 801-538-7835, by FAX at 801-538-7768, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/31/2006

This rule may become effective on:

11/08/2006

Authorized by:

Carol Lear, Director, School Law and Legislation

RULE TEXT

R277. Education, Administration.

R277-422. State Supported Voted Leeway, Local Board-Approved Leeway and Local Board Leeway for Reading Improvement Programs.

R277-422-1. Definitions.

A. "Ad valorem property tax" means a tax based on the assessed value of real estate or personal property.

[A]B. "Board" means the Utah State Board of Education.

[B]C. "Voted leeway program" or "state-supported voted leeway program" means a state-supported program in which a property tax levy approved under Section 53A-17a-133 is authorized to cover a portion of the costs within the general fund of the state-supported minimum school program in a district.

[C]D. "Local board leeway program" or "local board-approved leeway program" means a state-supported program in which a local board authorizes a property tax levy under Section 53A-17a-134 to cover a portion of the costs within the school district general fund of the state-supported minimum school program. The levy may require voter approval under Section 53A-17a-134(4). These funds shall be spent for class size reduction or other purposes in a district if the local board determines that the average class size in the school district is not excessive.

[D]E. "Local board" means the school board members elected to govern a school district.

[E]F. "Local board leeway for reading improvement" means a local board leeway program in which a local board authorizes a property tax levy under Section 53A-17a-151 to cover a portion of the costs of a school district K-3 Reading Improvement Program established in Section 53A-17a-150.

[F]G. "State-supported" means a formula-based state contribution of money to the voted leeway program and the board-approved leeway program as defined in Section 53A-17a-133(3) and Section 53A-17a-134(2).

 

R277-422-2. Authority and Purpose.

A. This rule is authorized by Utah Constitution Article X, Section 3 which vests general control and supervision of public education in the Board, Section 53A-1-402(1)([f]e) which directs the Board to establish rules for [the minimum school program]school productivity and cost effectiveness measures, federal programs, school budget formats, and financial, statistical, and student accounting requirements, and Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of this rule is to specify requirements, timelines, and clarifications for the state-supported voted, local board-approved, and local board leeway for reading improvement programs.

 

R277-422-3. Requirements and Timelines for State-Supported Voted Leeway.

A. A local board may establish a state-supported voted leeway program following an election process that approves a special tax. The election process is provided for under Section 53A-17a-133(2).

B. Local boards which have approved voted leeway programs since 1965 may set an annual fiscal year fixed tax rate levy for the voted leeway equal to or less than the levy authorized by the election.

C. Effective January 1, 2007, a school district may budget an increased amount of ad valorem property tax revenue from a voted leeway in addition to revenue from new growth without required compliance with the advertisement requirements if the voted leeway is or was approved:

(1) on or after January 1, 2003; and

(2) within the four-year period immediately preceding the year in which the school district seeks to budget an increased amount of ad valorem property tax.

D. Effective January 1, 2007, a school district may levy a tax rate without having to comply with the advertisement requirements of Sections 59-2-918 and 919 if:

(1) the levy exceeds the certified tax rate as the result of a school district budgeting an increased amount of ad valorem property tax derived from a voted leeway;

(2) the voted leeway was approved on or after January 1, 2003; and

(3) the voted leeway was approved within the four-year period immediately preceding the year in which the school district seeks to budget an increased amount of ad valorem property tax revenue derived from the voted leeway.

[C]E. An election to consider adoption or modification of a state-approved voted leeway program is required.

[D]F. A local board may continue an existing state-supported voted leeway program despite a majority vote opposing a modification of the state-supported voted leeway program.

[E]G. If adoption of a voted leeway program is contingent upon an offset reduction of other local board tax levies, the local board shall allow the electors, in a election, to reconsider modifying or discontinuing the voted leeway program prior to a subsequent increase in the certified tax rate as set by the local board.

[F]H. The state provides state guarantee funds to support the district state-supported voted leeway according to the amount specified in Section 53A-17a-133(3) and the local board-approved leeway according to the amount specified in Section 53A-17a-134(2).

[G]I. State and local funds received by a local board under the state-supported voted leeway program are unrestricted revenue and may be budgeted and expended within the school district's general fund as authorized by the local board.

[H]J. In order to receive state support for an initial or subsequent increase in a voted leeway tax rate, a local board shall receive voter approval no later than December 1 prior to the commencement of the fiscal year of implementation of that initial or additional voted leeway tax rate.

[I]K. If a school district qualifies for state support the year prior to an increase in its existing voted leeway tax levy; and:

(1) receives voter approval for an increase after December 1, and

(2) intends to levy the additional rate for the fiscal year starting the following July 1, then

(3) the district shall only receive state support for the existing voted leeway tax rate and not the additional voter-approved tax rate for the fiscal year commencing the following July 1, and

(4) shall receive state support for the existing and additional voter-approved tax rate for each year thereafter, as long as the district qualifies to receive state support.

 

KEY: education, finance

Date of Enactment or Last Substantive Amendment: [July 16, 2004]2006

Notice of Continuation: October 18, 2002

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-402(1)(f); 53A-1-401(3); 53A-17a-133; 53A-17a-134; 53A-17a-150; 53A-17a-151; 59-2-918; 59-2-919