No. 35344 (Amendment): Rule R277-422. State Supported Voted Leeway, Local Board-Approved Leeway and Local Board Leeway for Reading Improvement Programs

(Amendment)

DAR File No.: 35344
Filed: 10/13/2011 03:12:41 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 301 (2011 General Session) consolidated the existing thirteen school district tax levies into six property tax levies. This rule is amended to reflect changes to the law and to allow for local matching funds for the K-3 Reading Improvement Program.

Summary of the rule or change:

The amended rule provides adding and changing definitions, changing terminology throughout the rule, removing unnecessary language, adding current language consistent with state law, and provides requirements for local K-3 Reading Improvement matching funds levies.

State statutory or constitutional authorization for this rule:

• Subsection 53A-1-402(1)(e)
• Subsection 53A-1-401(3)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget. This rule provides language to consolidate local levies as allowed by 2011 legislation.

local governments:

There are no anticipated costs or savings to local government. Legislation from 2011 outlines new appropriate local levies by local school boards. Costs to local boards should be similar to previous authorized levies. The K-3 Reading Improvement Program previously required matching local funds. Costs under this amended rule should be similar.

small businesses:

There are no anticipated costs or savings to small businesses. This rule applies to public education and does not affect businesses.

persons other than small businesses, businesses, or local governmental entities:

There are no anticipated costs or savings to individuals under this amended rule. The process is at the local government level.

Compliance costs for affected persons:

There are no compliance costs for affected persons. The rule provides criteria for local boards of education. There are no compliance criteria or costs for individuals.

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.

Larry K. Shumway, State Superintendent

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:

12/01/2011

This rule may become effective on:

12/08/2011

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]Local Levy, Board Local Levy and Reading Improvement Program[s].

R277-422-1. Definitions.

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

B. "Board" means the Utah State Board of Education.

C. "Board local levy" means a state-supported program under Section 53A-17a-164 to cover a portion of the costs within the school district's general fund of the state-supported minimum school program.

[C]D. "Common Data Committee" means a committee established by the USOE responsible to determine consensus estimates for student enrollments and assessed valuations. The Committee includes representatives from the Governor's Office of Planning and Budget, the Legislative Fiscal Analyst's Office, and the Utah State Tax Commission.

[ 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's 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.

] E . "Free or reduced meal applications" means the applications received by a school district or charter school under the Board-supervised federal Child Nutrition Program.

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

[ 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.

] G. "State-supported" means a formula-based state contribution of [money]funds to the voted [leeway]local levy program and the [b]Board[-approved leeway] local levy program as defined in Section 53A-17a-133(3) and Section 53A-17a-[134(2)]164(3).

H. "USOE" means the Utah State Office of Education.

I. "Voted [leeway program" or "state-supported voted leeway program]local levy" means a state-supported program in which a voter-approved 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.

J. "Weighted pupil unit (WPU)" means the basic per pupil unit used to calculate the amount of state funds for which a school district is eligible.

 

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)(e) which directs the Board to establish rules for 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 levy, board[-approved, and] local levy, and [board leeway for] reading improvement program[s].

 

R277-422-3. Requirements and Timelines for State-Supported Voted [Leeway]Local Levy.

A. A local board may establish a state-supported voted [leeway]local levy 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 local levy or voted leeway programs since 1965 may set an annual fiscal year fixed tax rate levy for the voted [leeway]local levy equal to or less than the levy authorized by the election.

C. Effective January 1, 200[7]9, a school district may budget an increased amount of ad valorem property tax revenue from a voted [leeway]local levy in addition to revenue from new growth without required compliance with the advertisement requirements if the voted [leeway]local levy is or was approved:

(1) on or after January 1, 2003;

(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; and

(3) for a voted [leeway]local levy approved or modified on or after January 1, 2009, the proposition submitted to the electors contains the following statement: A vote in favor of this tax means that (name of school district) may increase revenue from this property tax without advertising the increase for the next five years.

D. Effective January 1, 200[7]9, a school district may levy a tax rate without [having to comply with]meeting the advertisement requirements of Section 59-2-919 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]local levy;

(2) the voted [leeway]local levy was approved on or after January 1, 2003;

(3) the voted [leeway]local levy 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]local levy; and

(4) for a voted [leeway]local levy approved or modified on or after January 1, 2009, the proposition submitted to the electors contains the following statement: A vote in favor of this tax means that (name of school district) may increase revenue from this property tax without advertising the increase for the next five years.

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

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

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

H. The state provides state guarantee funds to support the district [state-supported] voted [leeway]local levy according to the amount specified in Section 53A-17a-133(3) and the [local b]Board[-approved leeway] local levy according to the amount specified in Section 53A-17a-[134(2)]164(3).

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

J. In order to receive state support for an initial voted [leeway]local levy 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 voted [leeway]local levy tax rate.

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

(1) does not receive voter approval for an increase after June 30 of the previous fiscal year and before December 2 of the previous fiscal year; 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]local levy 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.

 

[R277-422-4. Local Board-Approved Leeway Requirements and Timelines.

The state support does not apply to a board-approved leeway in the first fiscal year the leeway is in effect unless the leeway was approved by voters under Sections 53A-17a-134(4) through (6) or an increased rate appears in the previous fiscal year.

 

]R277-422-[5]4. [Optional Reading Improvement Levy Requirements and Timelines]K-3 Reading Achievement Program.

[A. Local funds received by a local board under the local board leeway for reading improvement tax levy shall be used for funding the school district's K-3 Reading Improvement Program.

(1) This levy is in addition to any other tax levy or maximum tax rate; and

(2) does not require voter approval; and

(3) may be modified or terminated by a majority vote of the local board.

(4) The local board leeway for reading improvement is not a state-supported levy.

B. A local board shall establish its optional board leeway for reading improvement levy by June 1 to have the levy apply to the fiscal year beginning July 1 in that same calendar year.

C. If after 36 months of K-3 Reading Improvement Program operation, a school district fails to meet the goals stated in the district's plan for student reading proficiency improvement, as measured by gain scores, the local board shall at the next possible tax rate setting opportunity terminate its board leeway for reading improvement tax levy.

D. School districts that fail to reach their reading goals shall terminate their levy under Section 53A-17a-150(15). After a period of no less than one year, school districts that terminated their levy may present a new or revised K-3 Reading Initiative plan to the Board. Following approval by the Board, the local board may reinstate the levy at the next possible tax rate setting opportunity.]A. The K-3 Reading Improvement Program consists of program funds and is created to achieve the state's goal of having third graders reading at or above grade level.

[E]B. Funding

(1) The calculation for the K-3 Reading Achievement funding shall be consistent with Section 53A-17a-150 which requires matching funds and Section 53A-17a-151.

(2) The following data shall be used for the reading fund calculations:

(a) The most recent numbers of adjusted assessed valuations received by the USOE from the Common Data Committee;

(b) The previous year's tax collection rate;

(c) The previous year's number of Free and Reduced Price Meal applications; and

(d) The current fiscal year total number of WPUs received by LEAs for the basic school program.

 

[R277-422-6. Tax Rate Setting Schedule.

Districts shall submit all approved tax levies to county auditors before the second Tuesday in August.

 

]KEY: education, finance

Date of Enactment or Last Substantive Amendment: [December 9, 2010]2011

Notice of Continuation: October 5, 2007

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]164; 53A-17a-150; 53A-17a-151; 59-2-919

 

---