School Fees The Injunction (1994) The USBE Internal Audit (USBE) https://schools.utah.gov/file/746e31d4-b202-424c- 9fa5-d0d652dc3616 The OLAG Audit (OLAG) https://le.utah.gov/audit/18_09rpt.pdf USBE Task Force Recommendations (TFR)

The Problem The State Board of Education Has Not Fulfilled Its Constitutional Role to Supervise and Control Secondary School Fees (OLAG) LEAs failed to approve all fees, disclose fee information to parents, and create fee waiver policy consistent with the law (OLAG) Significant revenue has been collected from students in violation of the law (OLAG) Local Boards Avoid Compliance by Calling Some Fees Optional (OLAG) LEA and school administrators have shown a lack of motivation to understand and follow law and rule (OLAG) Many LEAs are not waiving fees required for participation in activities for eligible students (OLAG) Certain unreasonable fees could deny students who do not qualify for waivers the opportunity to participate (OLAG)

School Activity Inclusion …many LEAs are not waiving certain fees for waiver-eligible students and are potentially excluding students who do not qualify for waivers by increasing fees to unreasonable levels. (OLAG) Although the … data is not conclusive, it does provide evidence to suggest changes in school fees do not mirror changes in the cumulative inflation rate of 166%. Fees ranged anywhere from 55% below and 712% above the cumulative inflation rate, which raises the question about the factors driving establishment of fees. (USBE) Charges for activities designated as “optional” are still fees and must be approved, listed on fee schedules, and waived for eligible students. (OLAG)

Subsidizing Fee Waivers Three out of four (75%) LEAs with multiple secondary campuses are not distributing the burden of fee waivers equally among their schools. (USBE) An LEA may not use revenue collected through fees to offset the cost of fee waivers by requiring students and families who do not qualify for fee waivers to pay an increased fee amount to cover the costs of students and families who qualify for fee waivers. (TFR)

Current USBE Requests: The Board directed staff to request changes to statute or rule in order to give the USBE the authority to suspend an LEA’s right to charge fees. The Board directed staff to seek legislative changes to update the definition of “textbook” in statute; amend statute to prohibit schools from charging fees for textbooks, except for textbooks for concurrent enrollment or AP courses; and if necessary, include a provision that fees for concurrent enrollment and AP course textbooks would be waivable. The Board directed staff to seek legislation to create a funding program to offset the impact of revenue lost from fee waivers. (Not new revenue stream) The Board directed staff to seek changes to legislation to prohibit elementary schools from having prescriptive school uniforms. The Board directed staff to further define provisions related to uniforms to be considered by a Board committee for possible rule or statute change.

The Bill (A work in progress): Requires that the State Board shall withhold funds from an LEA that does not comply with fee law/regulations (USBE is implementing a 6-step process to help LEAs come into compliance) Requires a district or charter board must approve specific fee amounts and maximum fee amounts Requires improved transparency—Incorporates provisions from the Task Force Report including noticing requirements and meeting requirements in statute Incorporates Task Force Report language prohibiting an LEA from increasing fees to subsidize revenue lost from fee waivers Amends the definition of “textbook” – Concurrent Enrollment Textbooks Makes certain amendments to the statutory definition of school uniforms