Signed by Governor Jon Huntsman, Jr.

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends the formulas for funding school building programs.

Highlights:

- Requires school districts located within a qualifying divided school district, in order to be eligible for state funding under the minimum school program, to impose a capital outlay levy equal to at least 0.0006 per dollar of taxable value. The county treasurer of a county located within a qualifying divided school district will distribute the revenue from this tax as follows [sec. 8 (2)]:

- Twenty-five percent based on a school district's percentage of the total enrollment growth for all school districts within the qualifying divided school district; and - Seventy-five percent based on a school district's percentage of the total current year enrollment for all school district's within the qualifying divided school district.

- Defines a "qualifying divided school district" as a divided school district located within a county of the second through sixth class (population under 700,000) [sec. 8 (1) (a)]. - Requires a local school board in a first-class county (population over 700,000), in order to be eligible for state funding under the minimum school program, to impose a capital outlay levy of at least 0.0006 per dollar of taxable value beginning January 1, 2009. The county treasure will distribute the revenue from this tax to school districts in the same manner as those located within a qualifying divided school district [sec. 10 (3-4) & sec. 11 (1)]. - Establishes the Capital Outlay Foundation Program to fund capital outlay for school districts based on their property tax levels and property tax output per student compared to the foundation guaranteed funding level: a minimum revenue amount per ADM (average daily membership) generated from the highest combined capital levy rate. If a school district's property tax output per ADM is less than the foundation's guaranteed funding lever per ADM, then the funds will be distributed as follows (Secs. 18-19):

- If the school district imposed the highest combined capital levy rate in the previous year, the State Board of Education will allocate an amount equal to the product of:
- The school district's prior year ADM; and - The difference between the foundation guarantee level per ADM for that fiscal year and the school district's prior year property tax output per ADM.
- If the school district imposed a combined capital levy rate less than the highest combined capital levy rate, the State Board of Education will allocate an amount equal to the product of:
- The school district's prior year ADM; - The difference between the foundation guarantee level per ADM for that fiscal year and the school district's prior year property tax output per ADM; and - The percentage of the highest combined capital levy rate that was imposed by the school district.

- Requires the State Board of Education to allocate a minimum base amount through the Capital Outlay Funding Program as follows [sec. 19 (5) (a)]:

-$200,000 to each school district with a property tax base per ADM (the quotient of a school district's derived net taxable value and ADM for the same year) that is less than or equal to the statewide average; -$100,000 to each school district with a property tax base per ADM that is greater than the statewide average, but less than or equal to two times the statewide average; -$50,000 to each school district with a property tax base per ADM that is greater than two times the statewide average and less than or equal to five times the statewide average.

- This is a substitute bill sponsored by Representative Aaron Tilton.

Full Bill Text