DAR File No. 37736

Education, Administration

Section R277-422-3

Requirements and Timelines for State-Supported Voted Local Levy

Notice of Proposed Rule

(Amendment)

DAR File No.: 37736
Filed: 06/14/2013 10:18:19 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R277-422-3 is amended to make it consistent with requirements in H.B. 49, Voted and Board Levy Programs Amendments, 2013 General Legislative Session, and recent audit findings and suggestions.

Summary of the rule or change:

The amendments provide changes to Subsection R277-422-3(D) to increase the state guarantee under these programs to a level which would allocate to school districts any prior year carry-over balances under the Voted and Board Local Levy Programs.

State statutory or constitutional authorization for this rule:

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

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. The amendment to the rule applies to school districts.

local governments:

There may be more local funding based on the state appropriation.

small businesses:

There is no anticipated cost or savings to small businesses. This rule and the amendment apply to public education and do not affect businesses.

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

There is no anticipated cost or savings to persons other than small businesses, businesses, or local government entities. The amendment to the rule applies to school districts.

Compliance costs for affected persons:

There are no compliance costs for affected persons. School districts may participate in the program.

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.

Martell Menlove, 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 carol.lear@schools.utah.gov

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:

07/31/2013

This rule may become effective on:

08/07/2013

Authorized by:

Carol Lear, Director, School Law and Legislation

R277. Education, Administration.

R277-422. State Supported Voted Local Levy, Board Local Levy and Reading Improvement Program.

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

A. A local board may establish a state-supported voted 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 local levy equal to or less than the levy authorized by the election.

C. A school district may budget an increased amount of ad valorem property tax revenue from a voted local levy in addition to revenue from new growth without required compliance with the advertisement requirements if the voted 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 local levy approved or modified on or after January 1, 2009, the proposition submitted to the voters 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. [The state provides state guarantee funds to support the district voted local levy according to the amount specified in Section 53A-17a-133(3) and the Board local levy according to the amount specified in Section 53A-17a-164(3).]Any prior year voted and board local funding balance shall be used to increase the current guarantee for the board and voted local levy programs. Funding shall be distributed based on the increased guarantee per WPU.

E. State and local funds received by a local board under the voted local levy program are unrestricted revenue and may be budgeted and expended within the school district's general fund.

F. In order to receive state support for an initial voted 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 local levy tax rate.

G. If a school district qualifies for state support the year prior to an increase in its existing voted 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 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.

 

KEY: education, finance

Date of Enactment or Last Substantive Amendment: [December 17, 2012]2013

Notice of Continuation: October 5, 2012

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-402(1)(f); 53A-1-401(3); 53A-17a-133; 53A-17a-164; 53A-17a-150; 53A-17a-151; 59-2-919