No. 41780 (Amendment): Rule R277-485. Loss of Enrollment

(Amendment)

DAR File No.: 41780
Filed: 06/09/2017 12:28:18 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Rule R277-485 is amended to update the rule in accordance with the Rulewriting Manual for Utah, and to clarify eligibility procedures, including a new petitioning procedure for LEAs seeking funding under this rule and Section 53A-17a-139.

Summary of the rule or change:

The amendments to Rule R277-485 provide technical and conforming changes in accordance with the Rulewriting Manual for Utah and provide language to clarify eligibility procedures.

Statutory or constitutional authorization for this rule:

• Art X, Sec 3
• Section 53A-17a-139
• Section 53A-1-401

Anticipated cost or savings to:

the state budget:

Changes to the rule are primarily restructuring and technical which will likely not result in a cost or savings to the state budget.

local governments:

Changes to the rule are primarily restructuring and technical which will likely not result in a cost or savings to local government.

small businesses:

Changes to the rule are primarily restructuring and technical which will likely not result in a cost or savings to small businesses.

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

Changes to the rule are primarily restructuring and technical which will likely not result in a cost or savings to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

Changes to the rule are primarily restructuring and technical which will likely not result in any compliance costs for affected persons.

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

After conducting a thorough analysis, it was determined that the amendments to this rule will not result in a fiscal impact to businesses.

Sydnee Dickson, State Superintendent

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

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

Direct questions regarding this rule to:

• Angela Stallings at the above address, by phone at 801-538-7656, 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:

07/31/2017

This rule may become effective on:

08/07/2017

Authorized by:

Angela Stallings, Deputy Superintendent, Policy and Communication

RULE TEXT

R277. Education, Administration.

R277-485. Loss of Enrollment.

R277-485-[2]1. Authority and Purpose.

[A.](1) This rule is authorized by:

(a) Utah Constitution Article X, Section 3, which vests general control and supervision [of]over public education in the Board[,];

(b) Section 53A-1-401[(3)], which allows the Board to [adopt rules in accordance with its responsibilities]make rules to execute the Board's duties and responsibilities under the Utah Constitution and state law[,]; and

(c) Section 53A-17a-139, which allows the Board to increase funds for a school district in order to avoid penalizing it for an excessive loss in student enrollment due to factors beyond its control.

[B.](2) The purpose of this rule is to [compensate a school district financially for an excessive loss in student enrollment due to factors beyond its control.]establish guidelines for funding under Section 53A-17a-139.

 

R277-485-[1]2. Definitions.

[A.](1) "ADM" means average daily membership derived from end-of-year data.

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

[C.](2) "Carryforward balance" means the [unspent]unobligated amount of MSP [Uniform School Fund monies]basic program education funds from the previous fiscal year.

[D.](3) "Historical Mean ADM" means the mean of the two highest ADMs in the three years preceding the prior year.

[E.](4) "Local Effort" means the prior year sum of tax rates imposed by the local school board.

[F.](5) "Lost ADM" means the difference between prior year ADM and Historical Mean ADM.

[G.](6) "Mid-year update" means the annual Minimum School Program allocation report prepared by the [USOE]Superintendent [and provided after]by January 1 annually.

[H.](7) "Minimum School Program " or "[(]MSP[)]" means the state supported Minimum School Program as defined in Title 53A[-], Chapter 17a.

[I.](8) "Weighted Pupil Unit " or "[(]WPU[)]" means the unit of measure of factors that is computed in accordance with the MSP for the purpose of determining the costs of a program on a uniform basis for each district.

 

R277-485-3. Eligibility.

[A.](1) A school district [shall be eligible for]may receive funding under this rule if the district's lost ADM is at least four percent less than the district's historical mean ADM.

(2) A school district that seeks funding under this rule shall file a petition with the Superintendent no later than September 15 that demonstrates that a loss of enrollment occurred due to unpredictable factors beyond the district's control.

(3) The Superintendent shall refer a petition filed in accordance with Subsection (2) to the Finance Committee to review and make a recommendation to the Board.

[B.](4) A [C]charter school[s are] may not [eligible for]receive funding under this rule.

 

R277-485-4. Funding.

[A.](1) The Superintendent shall allocate[source of] funding to [the]an eligible district under Subsection R277-485-3(1)[shall be the current] using the unencumbered MSP carryforward balance.

(2) The Superintendent may only award funds to a district under [T]this rule [shall provide funds to school districts only ]after all other authorized uses of the carryforward balance have been carried out.

[B.](3) The total amount of funds made available for distribution shall be equal to the lesser of:

([1]a) the sum of lost ADM in eligible districts multiplied by 25 percent of the current year value of the WPU; or

([2]b) 25 percent of the current unencumbered MSP carryforward balance.

[C.](4) The Superintendent shall distribute [A]available funds [shall be distributed]in proportion[al] to lost ADM (90 percent) and prior year local effort (10 percent) among eligible districts.

[D.](5) The Superintendent may not fund an eligible district [I]if there are not any current year unencumbered MSP funds[, eligible districts shall not be funded].

(6) The Superintendent shall distribute funds annually in one lump sum with the mid-year update of the current year MSP.

 

[ R277-485-5. Implementation.

Funds shall be distributed annually in one lump sum with the mid-year update of the current year MSP.]

 

KEY: students , enrollment

Date of Enactment or Last Substantive Amendment: [May 8, 2012]2017

Notice of Continuation: April 8, 2013

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-401; 53A-17a-139

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