Foundation and Enrollment Growth

The distributions of the Capital Outlay Foundation and Enrollment Growth Program Funding are available at the following links:

Capital Outlay Foundation Program

In the 2008 General Legislative Session, the Capital Outlay Foundation Program was changed. Based on UCA 53A-21-202, for fiscal years beginning on or after July 1, 2008, the State Board of Education shall determine the foundation guarantee level per ADM (average daily membership) that fully allocates the funds appropriated for distribution.

If a qualifying school district imposes the highest combined capital levy rate in the prior year, the State Board of Education shall allocate an amount equal to the product of the following:

the qualifying school district's prior year ADM; and
an amount equal to the difference between the following:
- the foundation guarantee level per ADM for that fiscal year and

the qualifying school district's prior year property tax yield per ADM.

If a qualifying school district imposes a combined capital levy rate less than the highest combined capital levy rate, the funding allocation of that school district will be based on a percentage of their combined capital levy rate and the highest combined capital levy rate.

In addition, a school district may get a base amount of either $200,000, $100,000, or $50,000 depending on the school district's property tax base per ADM.

Enrollment Growth Program

The Utah State Board of Education shall distribute monies in the Enrollment Growth Program toqualifying school districts whose average net enrollment for the prior three years is a net increase in enrollment and the yield per ADM is less than two times the prior year’s average yield per ADM for Utah school districts.

A school district that meets the above criteria shall receive Enrollment Growth Program monies in the same proportion that the district’s three-year average net enrollment bears to the total three-year net enrollment of all the districts that meet the above criteria.

Use of Funding

According to UCA 53A-21-102, a school district may only use the monies provided under this chapter for school district capital outlay and debt service purposes.

Capital Outlay Levy

During the 2008 General Legislative Session, UCA 53A-2-118.3, Imposition of the capital outlay levy in qualifying divided school districts, was passed. This statute states that beginning with the qualifying taxable year, in order to qualify for receipt of the state contribution toward the minimum school program, a school district within a qualifying divided school district (within a county of the second through sixth class) shall impose a capital outlay levy of at least 0.0006 per dollar of taxable value.

The county treasurer shall then distribute that revenue to the school districts located within the boundaries of the qualifying divided school district based on 25% of a school district's percentage of the total enrollment growth in all of the school districts within the qualifying divided school district that have an increase in enrollment and 75% to be distributed in proportion to a school district's percentage of the total current year enrollment in all of the school districts within the qualifying divided school district, as of the October 1 enrollment counts.

In addition, beginning January 1, 2009, in order to qualify for receipt of the state contribution toward the minimum school program, a local school board in a county of the first class (Salt Lake County) shall impose a capital outlay levy of at least 0.0006 per dollar of taxable value. This revenue will be distributed in the same manner as described above for the school districts in the county of the second through sixth class.

History of Funding

Distributions for the Capital Outlay Foundation and Enrollment Growth Program from FY1996-1997 through FY2004-05 can be found in the following files:

For questions regarding the information on this page please contact:

Cathy Dudley
Property Tax Specialist
801-538-7667
801-538-7729 (fax)

Updated March 26, 2008