DAR File No. 28464

Education, Administration

R277-477

Distribution of Funds from the School Trust Lands Account and Implementation of the School LAND Trust Program

NOTICE OF PROPOSED RULE

DAR File No.: 28464
Filed: 01/17/2006, 04:28
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to reflect the creation of the Interest and Dividends Account within the Uniform School Fund, to provide language on approval of School LAND Trust Program plans by the State Charter School Board, and provide for the Utah Schools for the Deaf and the Blind allocation of School LAND Trust Program money.

Summary of the rule or change:

The amendment provides new definitions, updates statutory references, provides for School LAND Trust Program plans, and funding for special school populations.

State statutory or constitutional authorization for this rule:

Subsection 53A-16-101.5(3)(c)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget because the amount in the Interest and Dividends Account is now added to the School LAND Trust Program funds for distribution to schools. The money has never been part of the state budget.

local governments:

There are no anticipated costs to local local government because the amount in the Interest and Dividends Account is now added to the School LAND Trust Program funds for distribution to schools. Individual schools may receive a minimal increase due to the revised definitions and policies.

other persons:

There are no anticipated costs or savings to other persons because the amount in the Interest and Dividends Account is now added to the School LAND Trust Program funds for distribution to schools.

Compliance costs for affected persons:

There are no compliance costs for affected persons. The amount in the Interest and Dividends Account is now added to the School LAND Trust Program funds for distribution to schools.

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. Patti Harrington, State Superintendent of Public Instruction

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

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:

03/03/2006

This rule may become effective on:

03/04/2006

Authorized by:

Carol Lear, Director, School Law and Legislation

RULE TEXT

R277. Education, Administration.

R277-477. Distribution of Funds from the School Trust Lands Account and Implementation of the School LAND Trust Program.

R277-477-1. Definitions.

A. "Board" means the Utah State Board of Education.

B. "Fall Enrollment Report" means the audited census of students registered in Utah public schools as [determined by enrollment on the first school day in October of each year]reported in the audited October 1 Fall Enrollment Report from the previous year.

C. "Funds" means interest and dividend income as defined under Section 53A-16-101.5(2).

D. "Interest and Dividends Account" means an account created under Section 53A-16-101 established to collect interest and dividends from the permanent State School Fund until the end of the fiscal year at which time the funds are distributed to school districts through the School LAND Trust Program.

[D]E. "Student" means a child in public school grades kindergarten through twelve counted on the audited October 1 Fall Enrollment Report of the school district, charter school, or USDB.

[E]F. "USDB" means the Utah Schools for the Deaf and the Blind.

[F]G. "USOE" means the Utah State Office of Education.

R277-477-2. Authority and Purpose.

A. This rule is authorized by Utah Constitution Article X, Section 3 which places general control and supervision of the public school system under the Board, by Section 53A-16-101.5(3)(c) which allows the Board to adopt rules regarding the time and manner in which the student count shall be made for allocation of school trust land[s] funds, and by Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of this rule is to:

(1) provide direction [o]in the distribution of interest and dividends from the [permanent State School Fund]Interest and Dividends Account created in Section 53A-16-101 and funded in Section 53A-16-101.5(2) through school districts[, and];

(2) provide a process for the dissemination of accurate and uniform information [among]to the Legislature, Board, local school boards [and districts, ]schools, the School and Institutional Trust Lands Administration, State Treasurer, State Director of Finance, USOE, and others as [may be ]necessary to facilitate effective administration and implementation of the School LAND Trust Program[.]; and

(3) determine the time and manner in which the student count shall be made for allocation of the monies as provided in Section 53A-16-101.5(3)(c).

R277-477-3. Distribution of Funds -- Determination of Proportionate Share.

A. Funds shall be distributed to school districts[,] and charter schools[, and the USDB] as provided under Section 53A-16-101.5(3)(a). The distribution shall be based on the state's total fall enrollment as reflected in the audited October 1 Fall Enrollment Report from the previous school year.

B. Each school district and the USOE, with regard to charter schools and the USDB, shall distribute funds received under R277-477-3A to each school[, including schools that have opened since the prior October 1 Enrollment Report,] on an equal per student basis.

C. Local school boards and the USOE may adjust distributions, maintaining an equal per student distribution for school openings and closures and for boundary changes occurring after the audited October 1 Fall Enrollment Report of the prior year.

D. All schools receiving funds shall have a school community council or a board designated to make school community council decisions, including elected parent members whose membership rotates, as required by Sections 53A-1a-108 and 53A-1a-511(4)(a), and a current school plan for enhancing or improving academic excellence consistent with Section 53A-16-101.5 approved by the local school board [and]or State Charter School Board for state chartered schools.

E. The plan shall be electronically submitted to the USOE on the School LAND Trust website.

[C]F. All charter schools shall be considered collectively as a [unit]school district to receive a base amount under Section 53A-16-101.5(3)(a)(i).

G. The USDB shall receive the average statewide per pupil base amount as the school's base allocation.

[D]H. In order to receive its allocation, a school shall satisfy the requirements of Section 53A-16-101.5(4-7)[(5)(6)].

I. Plans shall include specific academic goals, steps to meet those goals, measurements to assess improvement and specific expenditures to implement plans that may include purchase of workbooks, textbooks, professional development, computer hardware and software, library and media supplies, or supplement funding for aides, teachers and specialists, and other tools for student academic improvement consistent with Section 53A-16-101.5(5).

[E]J. [Interest and dividend i]Income from the [permanent State School Fund]Interest and Dividends Account shall be distributed to school districts [at]after the close of the state fiscal year as the USOE receives the funds in the Interest and Dividends Account within the Uniform School Fund.

[F]K. Each school board shall [establish a policy for]ensure timely distribution of the funds to eligible schools.

[G]L. In a year-end report, each local board shall provide to the USOE:

(1) the names of schools and the funds distributed under this rule;

(2) required school plan information as designated in R277-477-4;

(3) a list of 10 percent of the district schools, or five schools implementing exemplary plans to be used to inform the public;[ and]

(4) the date on which funds were made available to each school[.]; and

(5) the local school board of education meeting date(s) when School LAND Trust plans were approved.

[H]M. Funds not used in the school approved plan may be carried over by the school to the next school year and added to the School LAND Trust Program funds available for expenditure in that school the following year. Schools shall provide an explanation for any carry over that exceeds one-half of the school's allocation in the school plan or report.

N. Funds from the School LAND Trust Program that are expended inconsistent with the requirements and academic intent of the law or inconsistent with the original school board/charter board approval shall be withheld by the USOE in subsequent years until the misappropriated funds have been restored.

[I]O. Schools serving only youth in custody may form committees and submit plans to the district serving the students. Youth in custody schools shall receive the same per pupil distribution as other schools in the district providing services.

[J]P. Plans submitted by schools chartered by the State Charter School Board shall be reviewed and approved by [the]each charter school governing body and then submitted to the State Charter School Board [or its designee ]for final approval.

[K]Q. Plans submitted by schools chartered by local school boards shall be reviewed and approved by the charter school and then submitted to the local school board for approval.

R. Plans submitted by the USDB governing board shall be reviewed and approved by the State Superintendent or designee.

R277-477-4. Information to USOE.

A. Information on each school's plan to address critical academic needs shall be completed via the School LAND Trust Program website maintained through the USOE for accurate and uniform reporting.

B. To facilitate submission of information by schools, each school board shall establish a timeline for timely submission of information and [approval]a district submission date for the district schools not later than May 15 of each year.

C. Timelines shall allow for school committee reconsideration and editing of the school plan [when]following local school board[s] requested changes.

D. USOE staff shall visit ten percent of the schools receiving funds from the School LAND Trust Program annually to discuss the program and website, receive information and suggestions, provide training, answer questions and review implementation of the plans and reported purchases.

E. School districts wishing to submit information to the School LAND Trust website through a comprehensive electronic plan shall meet the parameters for programming and data entry required by the USOE. They shall review School LAND Trust plans on the USOE website prior to local school board approval to ensure information consistent with the law has been downloaded by individual schools into the electronic plan visible on the School LAND Trust Program website.

KEY: schools, trust lands funds

Date of Enactment or Last Substantive Amendment: [May 17, 2002]2006

Notice of Continuation: November 23, 2005

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-16-101.5(3)(c); 53A-1-401(3)

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact 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

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.