HB 396 Utah House · 2025 General Session

Small School District Scale of Operations Formula

HB 396 updates Utah's school funding formula to provide additional support for "necessarily existent" small schools - rural districts with very small enrollments (e.g., ≤27 students per grade in K-6 or ≤125 in 7-12) that lack nearby alternatives. The bill adds a two-part funding system: one part accounts for the higher cost of operating small districts (scale of operations), and another adjusts funding based on rural enrollment size for each grade band (e.g., 9 base units for ≤5 students, with incremental adjustments as enrollment grows). The state board must develop the exact formula through rules and review it every five years starting in 2030, ensuring small school districts meeting the criteria receive targeted funding. This change directly affects rural school districts classified as "necessarily existent" under the new definition.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Feb 2025
House Passage
Mar 2025
Senate Passage
Mar 2025
Signed into Law
Mar 2025
Introduced Feb 4, 2025 Signed Mar 24, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Enrolled · 6 edits · Mar 24, 2025
MODERATE
This bill amends the funding formula for necessarily existent small schools in Utah, updating eligibility criteria, funding calculations, and review processes. The changes affect how rural and small schools receive weighted pupil units for state funding, with specific adjustments to enrollment thresholds and review timelines.
Scope change
The bill maintains the same scope of applying to necessarily existent small schools and rural school districts, but modifies specific eligibility thresholds and funding calculation methods.
ELIGIBILITY

Updated enrollment thresholds for necessarily existent small schools, changing the student count limits for grade bands 7-12 from 61 to 61 students for additional weighting calculations.

FISCAL

Added new provision allowing the state board to provide base level funding for necessarily existent small schools with 15 or fewer students in grades 7-12.

REQUIREMENT

Enhanced requirements for school splits, adding detailed proposal requirements including enrollment projections, educational justification, and financial impact analysis.

TIMELINE

Added provisions for five-year reviews starting in fiscal year 2030 to update weightings, county classifications, and locale codes.

ENFORCEMENT

Added new procedures for reviewing and approving school splits of necessarily existent small schools, including state board and Public Education Appropriations Subcommittee oversight.

DEFINITION

Maintained the same definition for necessarily existent small schools but added new provisions for handling schools that no longer qualify after membership increases.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
31
Key actions
8
Committee
6
Mar 24, 2025
Signed into law
Governor Signed
executive
Mar 5, 2025
Legislature · Passed
House/ signed by Speaker/ sent for enrolling
legislature
Mar 5, 2025
Lower · Passed
Senate/ signed by President/ returned to House
lower
Feb 28, 2025
Upper · Passed
Senate/ committee report favorable
upper
Feb 28, 2025
Upper · Passed
Senate Comm - Favorable Recommendation
upper
Feb 26, 2025
Committee
Senate/ to standing committee
upper
Feb 25, 2025
Introduced
Senate/ 1st reading (Introduced)
upper
Feb 24, 2025
Upper · Passed
House/ passed 3rd reading
upper
Feb 18, 2025
Lower · Passed
House/ committee report favorable
lower
Feb 18, 2025
Lower · Passed
House Comm - Favorable Recommendation
lower
Feb 10, 2025
Committee
House/ to standing committee
lower
Feb 4, 2025
Introduced
House/ 1st reading (Introduced)
lower
1 primary · 1 co-sponsor

Sponsors