H.B. XX
Amendments to Education Financing
    Representative Merlynn Newbold
2 Equalization Issues
• Salt Lake County
  – Caused by the Creation of the New School District
  – Capital Outlay Funding
...
Bottom Line
20 Districts     21 Districts    Charters
Budget           Budget         Budget
Taxes            Taxes


 $1,...
20 Districts   21 Districts    Charters

Budget         Budget         Budget
Taxes          Taxes
Davis          Park Cit...
Charter Schools
        Garfield                                                   $0.00
            Juab                 ...
Charter Schools
        Garfield                                                               $0.00
            Juab     ...
Charter Schools
        Garfield
                                                                      $27.00
            ...
Consolidates 7 Local Levies

                                      Board Leeway
                                          ...
Two Revenue Streams




             Basic Levy Revenue



Local Levy



             Basic Program Cost
This Bill . . .

                                    increases funding from
                                    the basic ...
This Bill . . .

                                    increases funding from
                                    the basic ...
This Bill . . .

                                    increases funding from
                                    the basic ...
This Bill . . .
                                    Basic levy revenue is
                                    distributed ...
This Bill . . .
                                    Basic levy revenue is
                                    distributed ...
This Bill . . .
                                    Basic levy revenue is
                                    distributed ...
• Districts that gain from the Basic Levy increase
  have to lower their local levy by the same
  amount – no net increase...
Why this Bill?
 [This bill] “narrows the gap of our
 per student funding and our
 property owner effort in funding
 public...
Why this Bill?
In other words, over half the school districts
  either overspend or under tax. This over
   expenditure an...
•   Is there Inequity?
•   Are Districts Over Funded?
•   Are 21 Districts Under Taxed?
•   Is this the Right Approach?
Is there Funding
    Inequity?

    Using a combination of
different statistical measures,
Education Week ranks Utah as
  ...
Are 21 Districts Overfunded?
• 21 District Average Per Pupil Expenditures
     – $7,164
• U.S. Average Per Pupil Expenditu...
Are We Under Taxed?

         61 percent of Summit County’s
     residential property value is taxed at a
    rate that is...
Are We Under Taxed?
                            Property Taxes Per Capita
    Summit                                      ...
Are We Under Taxed?
                   Property Taxes as % of Income
        Rich
   Wasatch
       Kane
    Daggett
    S...
Are We Under Taxed?

Each year, Park City School District must
  give the State $2+ million from local
 property tax reven...
Are We Under Taxed?
Federal Funding in K-12 Education
                                    Residents of Park
              ...
In addition to its three
districts, Summit County pays
  enough state income tax to
cover up to 18 other districts.
•   Is there Inequity? NO
•   Are Districts Over Funded? NO
•   Are 21 Districts Under Taxed? NO
•   Is this the Right App...
Two Ways to Equalize
• Build up the lesser
Two Ways to Equalize
• Build up the lesser
• Reduce the greater
Two Ways to Equalize
• Build up the lesser
• Reduce the greater (level down)
House Bill XX
Equalizes by leveling down – reducing
some districts without building up the
others.

An Example of “Levelin...
Why is it that “Park City gets to offer
a lot better programs to their
students than Alpine does, or at least
spends more ...
Why is it that Alpine doesn’t get to
a lot better programs to their
offer
          like Alpine d
students thanPark City o...
The End
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Equalization Explained

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Park City School District's Patrick Ogden explains what the newest equalization bill looks like (as best we know). Presented to the public 1/14/10.

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Equalization Explained

  1. 1. H.B. XX Amendments to Education Financing Representative Merlynn Newbold
  2. 2. 2 Equalization Issues • Salt Lake County – Caused by the Creation of the New School District – Capital Outlay Funding • Property Tax Equalization – Amendments to Education Financing • Representative Merlynn Newbold – Operations Funding – Statewide
  3. 3. Bottom Line 20 Districts 21 Districts Charters Budget Budget Budget Taxes Taxes $1,956,400 -$2,918,600 $962,200
  4. 4. 20 Districts 21 Districts Charters Budget Budget Budget Taxes Taxes Davis Park City Nebo Salt Lake Jordan Canyons Alpine Washington Weber Wasatch Cache Murray Tooele So. Summit Granite Kane Box Elder Iron So. Sanpete Carbon San Juan Millard Sevier Emery Ogden No. Summit No. Sanpete Grand Tintic Uintah Piute Rich Duchesne Provo Wayne Logan Juab Morgan Garfield Daggett Beaver
  5. 5. Charter Schools Garfield $0.00 Juab $0.00 Wayne Duchesne Net Per Pupil Impact $0.00 $0.00 Piute $0.00 Tintic $0.00 No. Sanpete $0.00 Ogden $0.00 Sevier San Juan $0.00 $0.00 20 districts have no budget So. Sanpete Box Elder $0.00 $0.00 impact (taxes are reduced) Granite $0.00 Tooele $0.00 Cache $0.00 Weber $0.00 Alpine $0.00 Jordan $0.00 Nebo $0.00 Davis $0.00 Provo Logan Morgan Beaver Uintah Washington Iron Canyons Murray Carbon Millard Emery Salt Lake Grand Wasatch Daggett No. Summit Kane So. Summit Rich Park City -$220.00 -$170.00 -$120.00 -$70.00 -$20.00 $30.00
  6. 6. Charter Schools Garfield $0.00 Juab $0.00 Wayne Duchesne Net Per Pupil Impact $0.00 $0.00 Piute $0.00 Tintic $0.00 No. Sanpete $0.00 Ogden $0.00 Sevier San Juan $0.00 $0.00 20 districts have no budget So. Sanpete Box Elder $0.00 $0.00 impact (taxes are reduced) Granite $0.00 Tooele $0.00 Cache $0.00 Weber $0.00 Alpine $0.00 Jordan $0.00 Nebo $0.00 Davis $0.00 Provo -$1.84 Logan -$2.86 Morgan -$3.39 Beaver -$3.98 Uintah -$5.85 Washington -$7.24 Iron -$8.15 Canyons -$9.71 Murray -$14.78 Carbon Millard -$19.14 -$23.84 21 districts have budget Emery Salt Lake -$27.14 -$27.43 cuts or tax increases Grand -$31.20 Wasatch -$38.63 Daggett -$52.69 No. Summit -$54.92 Kane -$57.69 So. Summit -$61.47 Rich -$82.37 Park City -$177.81 -$220.00 -$170.00 -$120.00 -$70.00 -$20.00 $30.00
  7. 7. Charter Schools Garfield $27.00 $0.00 Only charter schools benefit Juab $0.00 Wayne Duchesne Net Per Pupil Impact $0.00 $0.00 Piute $0.00 Tintic $0.00 No. Sanpete $0.00 Ogden $0.00 Sevier San Juan $0.00 $0.00 20 districts have no budget So. Sanpete Box Elder $0.00 $0.00 impact (taxes are reduced) Granite $0.00 Tooele $0.00 Cache $0.00 Weber $0.00 Alpine $0.00 Jordan $0.00 Nebo $0.00 Davis $0.00 Provo -$1.84 Logan -$2.86 Morgan -$3.39 Beaver -$3.98 Uintah -$5.85 Washington -$7.24 Iron -$8.15 Canyons -$9.71 Murray -$14.78 Carbon Millard -$19.14 -$23.84 21 districts have budget Emery Salt Lake -$27.14 -$27.43 cuts or tax increases Grand -$31.20 Wasatch -$38.63 Daggett -$52.69 No. Summit -$54.92 Kane -$57.69 So. Summit -$61.47 Rich -$82.37 Park City -$177.81 -$220.00 -$170.00 -$120.00 -$70.00 -$20.00 $30.00
  8. 8. Consolidates 7 Local Levies Board Leeway 10% of Basic Tort Liability Program (O&M) Special Recreation Transportation Levy Local Reading Levies Discretionary Impact Aid Levy
  9. 9. Two Revenue Streams Basic Levy Revenue Local Levy Basic Program Cost
  10. 10. This Bill . . . increases funding from the basic levy . . . Basic Levy Revenue Local Levy Basic Program Cost
  11. 11. This Bill . . . increases funding from the basic levy . . . and decreases funding Basic Levy Revenue from the local levy. Local Levy Basic Program Cost
  12. 12. This Bill . . . increases funding from the basic levy . . . and decreases funding Basic Levy Revenue from the local levy. Statewide, the increase and decrease offset each other. Local Levy Basic Program Cost
  13. 13. This Bill . . . Basic levy revenue is distributed differently than local levy revenue. Basic Levy Revenue Local Levy Basic Program Cost
  14. 14. This Bill . . . Basic levy revenue is distributed differently than local levy revenue. Half the districts will Basic Levy Revenue receive more from the basic rate increase than they will lose from the drop in local levies. Local Levy Basic Program Cost
  15. 15. This Bill . . . Basic levy revenue is distributed differently than local levy revenue. Half the districts will Basic Levy Revenue receive more from the basic rate increase than they will lose from the drop in local levies. The rest of the districts Local Levy receive less from the basic rate increase than Basic Program Cost they lose from the local levy decrease.
  16. 16. • Districts that gain from the Basic Levy increase have to lower their local levy by the same amount – no net increase to their budget. • Districts that lose from the Basic Levy increase have to cut their budgets or increase their local levy.
  17. 17. Why this Bill? [This bill] “narrows the gap of our per student funding and our property owner effort in funding public education.” (Rep. Merlynn Newbold) Why is it that “Park City gets to offer a lot better programs to their students than Alpine does, or at least spends more money than Alpine does?” (Senator Howard Stephenson)
  18. 18. Why this Bill? In other words, over half the school districts either overspend or under tax. This over expenditure and under taxation causes inequity among districts. 20 Districts 21 Districts Charters Budget Budget Budget Taxes Taxes
  19. 19. • Is there Inequity? • Are Districts Over Funded? • Are 21 Districts Under Taxed? • Is this the Right Approach?
  20. 20. Is there Funding Inequity? Using a combination of different statistical measures, Education Week ranks Utah as the most equitably funded state in the nation (Hawaii is a single district state and was not included in the comparison.) The measures include state and local funding.
  21. 21. Are 21 Districts Overfunded? • 21 District Average Per Pupil Expenditures – $7,164 • U.S. Average Per Pupil Expenditures – $9,154 • Park City Per Pupil Expenditures – $7,743 FY 2006 Actual – USOE, NCES
  22. 22. Are We Under Taxed? 61 percent of Summit County’s residential property value is taxed at a rate that is 45 percent greater than most residential property in the state.
  23. 23. Are We Under Taxed? Property Taxes Per Capita Summit $2,790 Kane Rich Wasatch Daggett Salt Lake Garfield Summit County Washington Iron Grand Statewide $763 residents pay more in Morgan Weber Duchesne property taxes per capita Beaver Davis Uintah than any other county in the State. Box Elder Piute Juab Utah Wayne Tooele Carbon Sevier Cache Sanpete Millard Emery San Juan $319 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000
  24. 24. Are We Under Taxed? Property Taxes as % of Income Rich Wasatch Kane Daggett Summit 4.62% Iron Washington Garfield Statewide 2.83% Summit County residents Grand Beaver Morgan Wayne pay more in property Juab Sanpete Salt Lake taxes as a percent of Utah Piute Weber income than most Box Elder Tooele Duchesne counties in the State. Sevier Cache Davis Uintah San Juan Millard Carbon Emery 1.50% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%
  25. 25. Are We Under Taxed? Each year, Park City School District must give the State $2+ million from local property tax revenues to help support other districts and charter schools.
  26. 26. Are We Under Taxed? Federal Funding in K-12 Education Residents of Park City School District pay enough federal PCSD's Other Income 46% income tax to pay Tax for over half of the 54% federal funding in Utah’s K-12 schools.
  27. 27. In addition to its three districts, Summit County pays enough state income tax to cover up to 18 other districts.
  28. 28. • Is there Inequity? NO • Are Districts Over Funded? NO • Are 21 Districts Under Taxed? NO • Is this the Right Approach?
  29. 29. Two Ways to Equalize • Build up the lesser
  30. 30. Two Ways to Equalize • Build up the lesser • Reduce the greater
  31. 31. Two Ways to Equalize • Build up the lesser • Reduce the greater (level down)
  32. 32. House Bill XX Equalizes by leveling down – reducing some districts without building up the others. An Example of “Leveling Down” Two students stand back to back. The second student is taller than the first. In order to ensure that both are the same height, the philosophy of leveling down suggests that we cut off the feet of the taller student.
  33. 33. Why is it that “Park City gets to offer a lot better programs to their students than Alpine does, or at least spends more money than Alpine does?” (Senator Howard Stephenson)
  34. 34. Why is it that Alpine doesn’t get to a lot better programs to their offer like Alpine d students thanPark City oes? or at least does, spends more money than Alpine ?
  35. 35. The End

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