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.

1. H.B. XX
Amendments to Education Financing
Representative Merlynn Newbold

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. Bottom Line
20 Districts 21 Districts Charters
Budget Budget Budget
Taxes Taxes
$1,956,400 -$2,918,600 $962,200

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. 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. 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. 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. 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. Two Revenue Streams
Basic Levy Revenue
Local Levy
Basic Program Cost

10. This Bill . . .
increases funding from
the basic levy . . .
Basic Levy Revenue
Local Levy
Basic Program Cost

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. 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. This Bill . . .
Basic levy revenue is
distributed differently
than local levy revenue.
Basic Levy Revenue
Local Levy
Basic Program Cost

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. 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. • 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. 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. 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. • Is there Inequity?
• Are Districts Over Funded?
• Are 21 Districts Under Taxed?
• Is this the Right Approach?

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. 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. 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. 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. 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. 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. 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. In addition to its three
districts, Summit County pays
enough state income tax to
cover up to 18 other districts.

28. • Is there Inequity? NO
• Are Districts Over Funded? NO
• Are 21 Districts Under Taxed? NO
• Is this the Right Approach?

29. Two Ways to Equalize
• Build up the lesser

30. Two Ways to Equalize
• Build up the lesser
• Reduce the greater

31. Two Ways to Equalize
• Build up the lesser
• Reduce the greater (level down)

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. 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. 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. The End