Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance topic
No spam. Unsubscribe anytime.
Committee approves first reading of R277-113 to update LEA fiscal flexibility language
Summary
The Utah State Board of Education committee approved R277-113 on first reading to revise rule language about local education agency (LEA) fiscal flexibility. The change removes COVID-specific wording and clarifies how LEAs may exercise a 35% flexibility on restricted state program allocations.
The committee approved R277-113, titled “LEA fiscal and auditing policies—amendment,” on first reading and will forward the draft for second and final reading by the full Board.
School finance staff said the rule change removes obsolete COVID-era language and clarifies how LEAs may use the existing fiscal flexibility authority that allows them to reassign up to 35% of a restricted state program allocation to other educational purposes.
Sam Urie, school finance director, told the committee the legislature removed a sunset on the fiscal flexibility statute during a special session earlier in the year; staff had previously taken the related rule language out in anticipation of a sunset and were now restoring and cleaning up the text. “The COVID language was removed from the statute,” Urie said, and the amended rule removes references that had confused some LEAs about how to apply transfers of restricted funds.
Members asked technical questions about accounting practices referenced in rule. Urie and John Palmer, the school finance financial reporting manager, said some LEAs have raised questions about how to meet generally accepted accounting principles (GAAP) for certain transfers; staff said GAAP-compliant contra-revenue accounting is currently the most appropriate approach but that the department could explore alternatives later as part of an ongoing chart-of-accounts work group.
Member Randy Booth moved the committee to approve R277-113 draft 1 on first reading and forward it to the board for final reading. The motion carried; committee leadership reported the vote as unanimous.
The committee did not alter the rule’s substance beyond the technical cleanup described by staff. Staff said the existing statute already sets the broad framework for when and how LEAs may activate the 35% flexibility; the rule edits are intended to reduce confusion about tracking and reporting when funds are transferred into more general program codes.
