Utah 2025 Regular Session

Utah Senate Bill SB0321 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	02-21 15:05 S.B. 321
2	2	1
3	3	Public Education Funding Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Lincoln Fillmore
7	7	House Sponsor:
8	8	2
9	9
10	10	3
11	11	LONG TITLE
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13	13	General Description:
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15	15	This bill removes a hold harmless provision.
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17	17	Highlighted Provisions:
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19	19	This bill:
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21	21	▸ removes a hold harmless provision related to voted and board levies;
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23	23	▸ provides for a graduated phase out of the hold harmless provision; and
24	24	10
25	25	▸ makes technical corrections.
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27	27	Money Appropriated in this Bill:
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29	29	None
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31	31	Other Special Clauses:
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33	33	This bill provides a special effective date.
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35	35	Utah Code Sections Affected:
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37	37	AMENDS:
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39	39	53F-2-601, as last amended by Laws of Utah 2023, Chapter 467
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41	41
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43	43	Be it enacted by the Legislature of the state of Utah:
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45	45	Section 1. Section 53F-2-601 is amended to read:
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47	47	53F-2-601 . State guaranteed local levy increments -- Appropriation to increase
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49	49	number of guaranteed local levy increments -- No effect of change of minimum basic tax
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51	51	rate -- Voted and board local levy funding balance -- Use of guaranteed local levy
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53	53	increment funds.
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55	55	(1) As used in this section:
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57	57	(a) "Board local levy" means a local levy described in Section 53F-8-302.
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59	59	(b) "Excess funds" means the difference between:
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61	61	(i) the amount of state guarantee money a school district received in the 2025 fiscal
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63	63	year; and
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65	65	(ii) the amount of state guarantee money a school district would receive based solely
66	66	S.B. 321 S.B. 321 02-21 15:05
67	67	31
68	68	on the certified tax rate in effect for the 2025 fiscal year.
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70	70	[(b)] (c) "Guaranteed local levy increment" means a local levy increment guaranteed by
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72	72	the state[:] as described in Subsection (2).
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74	74	[(i) for the board local levy, described in Subsections (2)(a)(ii)(A) and (2)(b)(ii)(B); or]
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76	76	[(ii) for the voted local levy, described in Subsections (2)(a)(ii)(B) and (2)(b)(ii)(A).]
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78	78	[(c)] (d) "Local levy increment" means .0001 per dollar of taxable value.
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80	80	[(d)(i) "Voted and board local levy funding balance" means the difference between:]
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82	82	[(A) the amount appropriated for the guaranteed local levy increments in a fiscal
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84	84	year; and]
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86	86	[(B) the amount necessary to fund in the same fiscal year the guaranteed local levy
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88	88	increments as determined under this section.]
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90	90	[(ii) "Voted and board local levy funding balance" does not include appropriations
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92	92	described in Subsection (2)(b)(i).]
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94	94	(e) "Voted local levy" means a local levy described in Section 53F-8-301.
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96	96	(2)(a)(i) [In] In accordance with Subsection 53F-2-205(6) and in addition to the
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98	98	revenue collected from the imposition of a voted local levy or a board local levy,
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100	100	the state shall guarantee that a school district receives, subject to Subsections [
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102	102	(2)(b)(ii)(C)] (2)(b)(ii)(B) and (3)(a), for each guaranteed local levy increment, an
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104	104	amount sufficient to guarantee for a fiscal year [that begins] beginning on or after
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106	106	July 1, 2018, $43.10 per weighted pupil unit.
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108	108	[(ii) Except as provided in Subsection (2)(b)(ii), the number of local levy increments
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110	110	that are subject to the guarantee amount described in Subsection (2)(a)(i) are:]
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112	112	[(A) for a board local levy, the first four local levy increments a local school board
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114	114	imposes under the board local levy; and]
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116	116	[(B) for a voted local levy, the first 16 local levy increments a local school board
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118	118	imposes under the voted local levy.]
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120	120	(ii) The number of guaranteed local levy increments under this Subsection (2) for a
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122	122	school district may not exceed 20 guaranteed local levy increments, regardless of
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124	124	whether the guaranteed local levy increments are from the imposition of a voted
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126	126	local levy, a board local levy, or a combination of the two.
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128	128	(b)(i) Subject to future budget constraints[ and Subsection (2)(c)], the Legislature
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130	130	shall annually appropriate money from the Local Levy Growth Account
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132	132	established in Section 53F-9-305 for purposes described in Subsection (2)(b)(ii).
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134	134	(ii) The state board shall, for a fiscal year beginning on or after July 1, 2018, [and
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137	137	subject to Subsection (2)(c), ]allocate funds appropriated under Subsection
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139	139	(2)(b)(i) and the amount described in Subsection (3)(c) in the following order of
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141	141	priority by increasing:
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143	143	(A) by [up to four increments the number of voted local levy guaranteed local levy
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145	145	increments above 16] the amount described in Subsection (2)(a)(ii); and
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147	147	[(B) by up to 16 increments the number of board local levy guaranteed local levy
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149	149	increments above four; and]
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151	151	[(C)] (B) the guaranteed amount described in Subsection (2)(a)(i).
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153	153	[(c) The number of guaranteed local levy increments under this Subsection (2) for a
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155	155	school district may not exceed 20 guaranteed local levy increments, regardless of
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157	157	whether the guaranteed local levy increments are from the imposition of a voted local
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159	159	levy, a board local levy, or a combination of the two.]
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161	161	(3)(a) The guarantee described in Subsection (2)(a)(i) is indexed each year to the value
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163	163	of the weighted pupil unit by making the value of the guarantee equal to .011962
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165	165	times the value of the prior year's weighted pupil unit.
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167	167	(b) The guarantee shall increase by .0005 times the value of the prior year's weighted
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169	169	pupil unit for each year subject to the Legislature appropriating funds for an increase
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171	171	in the guarantee.
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173	173	(c) If the indexing and growth described in Subsections (3)(a) and (b) result in a cost to
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175	175	the state in a given fiscal year that is less than the amount the Legislature
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177	177	appropriated, the state board shall dedicate the difference to the allocation described
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179	179	in Subsection (2)(b)(ii).
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181	181	(4)(a) The amount of state guarantee money that a school district would otherwise be
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183	183	entitled to receive under this section may not be reduced for the sole reason that the
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185	185	school district's board local levy or voted local levy is reduced as a consequence of
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187	187	changes in the certified tax rate under Section 59-2-924 pursuant to changes in
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189	189	property valuation.
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191	191	(b) Subsection (4)(a) applies for a period of [five] one [years] year following a change in
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193	193	the certified tax rate as described in Subsection (4)(a).
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195	195	(5) The guarantee provided under this section does not apply to the portion of a voted local
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197	197	levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
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199	199	year, unless an increase in the voted local levy rate was authorized in an election
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201	201	conducted on or after July 1 of the previous fiscal year and before December 2 of the
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203	203	previous fiscal year.
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206	206	[(6)(a) If a voted and board local levy funding balance exists for the prior fiscal year,
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208	208	the state board shall distribute the voted and board local levy funding balance, using
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210	210	the calculations for distribution of program balances for the fiscal year in which the
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212	212	balance occurs, to qualifying school districts in a one-time payment during the first
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214	214	quarter of the current fiscal year.]
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216	216	[(b) The state board shall report action taken under Subsection (6)(a) to the Office of the
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218	218	Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.]
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220	220	[(7)] (6) A local school board of a school district that receives funds described in this section
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222	222	shall budget and expend the funds for public education purposes.
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224	224	(7)(a) Beginning with the 2026 fiscal year, the amount of state guarantee money that a
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226	226	school district receives under this section may be reduced as a result of changes in the
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228	228	certified tax rate under Section 59-2-924 pursuant to changes in property valuation.
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230	230	(b) For a school district receiving state guarantee money in excess of the amount the
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232	232	school district would receive based solely on the current certified tax rate, such
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234	234	excess funds:
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236	236	(i) may not cause the amount the school district receives to exceed the total amount
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238	238	of state guarantee the school district received in the 2025 fiscal year; and
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240	240	(ii) shall be phased out over a three-year period as follows:
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242	242	(A) in the 2026 fiscal year, the school district shall receive 100% of the excess
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244	244	funds received in the 2025 fiscal year;
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246	246	(B) in the 2027 fiscal year, the school district shall receive 66% of the excess
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248	248	funds received in the 2025 fiscal year; and
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250	250	(C) in the 2028 fiscal year, the school district shall receive 33% of the excess
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252	252	funds received in the 2025 fiscal year;
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254	254	(D) in the 2029 fiscal year, the school district shall receive no excess funds.
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256	256	(c) The state board shall:
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258	258	(i) calculate the amount of excess funds for each affected school district;
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260	260	(ii) notify each affected school district of the phase-out schedule for the excess funds;
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262	262	and
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264	264	(iii) oversee the phase-out process described in this Subsection (7).
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266	266	Section 2. Effective Date.
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268	268	This bill takes effect on July 1, 2025.
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