No. 27204 (Amendment): R277-422. State Supported Voted Leeway

DAR File No.: 27204
Filed: 06/01/2004, 03:14
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to provide requirements, timelines, and clarifications for the state-supported voted leeway, local board-approved leeway, and local board leeway for reading improvement programs.

 

Summary of the rule or change:

The rule provides new definitions, requirements and timelines for state-supported voted leeway, procedures for local board-approved leeway requirements and timelines, optional reading improvement levy requirements and timelines, and a tax rate setting schedule.

 

State statutory or constitutional authorization for this rule:

Section 53A-1-401(1)(f)

 

Anticipated cost or savings to:

the state budget:

There are no anticipated cost or savings to state budget. Monies were appropriated by the 2004 Utah State Legislature to provide funding for a reading improvement program.

 

local governments:

There are no anticipated cost or savings to school districts. Local school boards may raise their voted and local board leeway following a vote of the voters in the school district. A complex formula and process allows for a local increase for reading improvement if the local school board provides matching funds.

 

other persons:

Individual taxpayers may have a nominal tax increase if the local school board chooses to participate and if the taxpayers approve the increase.

 

Compliance costs for affected persons:

There may be a nominal tax increase if the local school board chooses to participate and if the taxpayers approve the increase. It is uncertain what cost individual taxpayers would pay if a local school board chooses to raise board and voted leeway.

 

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. Patrick Ogden, Interim 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:

07/15/2004

 

This rule may become effective on:

07/16/2004

 

Authorized by:

Carol Lear, Coordinator 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. "Board" means the Utah State Board of Education.

B. "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 operation and maintenance] of the state-supported minimum school program in a district.

C. "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. "Local board" means the school board members elected to govern a school district.

E. "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.

[D]F. "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).[

C. "WPU" means weighted pupil unit: the basic unit used in calculating each district's share of state school funds.]

 

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) which directs the Board to establish rules for the minimum school program, 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 [standards]requirements, timelines, and clarifications for the state-supported voted, local board-approved, and local board leeway for reading improvement [leeway ]programs.

 

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

A. [Each district that has approved a voted leeway program may set a voted leeway tax levy as authorized by the election required under Section 53A-17a-133 and by the local board of education.]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).

[(1)]B. [districts]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[;].

[(2)]C. [districts that set their levies on a percentage based on elections held prior to 1965 may estimate their tax rate levy limits for the fiscal year according to the following formula:

A equals ((Estimated WPU's for Fiscal Year / 26) times $ Value of State Distribution Unit at time of election) plus Fiscal Year State Transportation $ Value to and from School

Levy Limit for Fiscal Year equals (% Authorized by Elections times A) minus Fiscal Year Tax Rate Yield of .0002

The local board of education may authorize a voted leeway levy equal to or less than the levy limit.]An election to consider adoption or modification of a state-approved voted leeway program is required.

D. 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. 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.

[B]F. 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).

[C. Districts shall submit levies to county auditors before the second Tuesday in August.

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

H. 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. 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.

 

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

In order to receive state support for an initial or subsequent increase in a board-approved leeway tax rate, a local board shall approve the tax rate no later than April 1 prior to the commencement of the fiscal year of implementation of that initial or additional board leeway tax rate.

 

R277-522-5. Optional Reading Improvement Levy Requirements and Timelines.

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.

 

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

[1987]2004

Notice of Continuation October 18, 2002

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