DAR File No. 42117
This rule was published in the October 1, 2017, issue (Vol. 2017, No. 19) of the Utah State Bulletin.
Aiding Financially Distressed School Districts
Notice of Proposed Rule
DAR File No.: 42117
Filed: 09/15/2017 08:49:06 AM
Purpose of the rule or reason for the change:
Following a five-year review, the Utah State Board of Education determined that Rule R277-420 continued to be necessary so it was continued. The rule is amended to provide necessary technical and conforming changes to bring the rule into compliance with the Rulewriting Manual for Utah.
Summary of the rule or change:
The amendments to this rule provide technical and conforming changes that include changes to numbering, references, and terminology.
Statutory or constitutional authorization for this rule:
- Art X Sec 3
- Subsection 53A-19-105(5)
- Section 53A-1-401
Anticipated cost or savings to:
the state budget:
The amendments to Rule R277-420 provide technical and conforming changes which will likely not result in a cost or savings to the state budget.
The amendments to Rule R277-420 provide technical and conforming changes which will likely not result in a cost or savings to local governments.
The amendments to Rule R277-420 provide technical and conforming changes which will likely not result in a cost or savings to small businesses.
persons other than small businesses, businesses, or local governmental entities:
The amendments to Rule R277-420 provide technical and conforming changes 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:
The amendments to Rule R277-420 provide technical and conforming changes 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
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 firstname.lastname@example.org
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:
This rule may become effective on:
Angela Stallings, Deputy Superintendent, Policy and Communication
R277. Education, Administration.
R277-420. Aiding Financially Distressed School Districts.
2]. Authority and Purpose.
A.] This rule is authorized by
which requires the Board to develop standards for defining
and aiding financially distressed school districts[
, and Section 53A-1-401(3) which permits the Board to adopt
rules in accordance with its responsibilities].
B.] The purpose of this rule is to specify [ the] eligibility requirements [ for] and [ the] procedures for nonrecurring or nonroutine
interfund transfers for financially distressed school
A. "Board" means the Utah State Board of
Education. B.] "Interfund transfer" means a transaction
which withdraws money from one fund and places it in another
I]nterfund transfer[ s are]
regulated by statute and Board rules.
Interfund transfers do not include interfund loans in which money is temporarily withdrawn from a fund with full obligation for repayment during the fiscal year.
C. "School district," for purposes of this rule,
means school district under the direction of the local board of
education. D. "State Superintendent" means the State
Superintendent of Public Instruction. For purposes of this rule,
the Board's designee is the State Superintendent. E. "USOE" means the Utah State Office of
Education. F.] "Without recourse" means there is no
obligation to return withdrawn money to the fund from which it was
To qualify as a financially distressed school district, a
school district shall meet all of the following
A. Have ] a deficit of three percent or more in its year end
unappropriated maintenance and operation fund balance following a
reduction for any amount in an undistributed reserve[ .]
B. Be] unable to meet its financial obligations in a timely
C. Be] unable to reduce the maintenance and operation
deficit by [ twenty-five]
percent in its budget for the next year[ .]
D. Have] made reasonable, local
efforts to eliminate the deficit[ .]
E. Be] financially incapable of meeting statewide
educational standards adopted by the Board[ .]
a deficit resulting from circumstances not subject
to administrative decisions.
This judgment shall be made] following an on-site
visit and consultation with the school district and local school
board[ by USOE staff].
R277-420-4. Procedures for Making Interfund Transfers.
A.] A local school board [ applying to qualify]
for an interfund transfer under this rule [ shall request that the USOE visit the school district,
conduct an audit, and assist the local school board and district
staff in developing a plan to eliminate the deficit.]
B. The school district shall meet the eligibility
requirements of R277-420-3 and be approved as a financially
distressed school district by the Board or its designee.]
C.] A school district designated as financially distressed
may make nonrecurring or nonroutine interfund transfers to the
maintenance and operation fund upon the
approval of the [ Board or its designee].
D.] [ The] interfund transfer shall be established by [ the] school district under the direction of the local school
board in an undistributed reserve account consistent with Section
KEY: education finance
Date of Enactment or Last Substantive Amendment: [
November 8, 2012]
Notice of Continuation: September 13, 2017
Authorizing, and Implemented or Interpreted Law: 53A-19-105;
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2017/b20171001.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at email@example.com. For questions about the rulemaking process, please contact the Office of Administrative Rules.