(1) As used in this section, "necessarily existent small schools funding balance" means the difference between: (a) the amount appropriated for the necessarily existent small schools program in a fiscal year; and (b) the amount distributed to school districts for the necessarily existent small schools program in the same fiscal year.

(a) the amount appropriated for the necessarily existent small schools program in a fiscal year; and

(b) the amount distributed to school districts for the necessarily existent small schools program in the same fiscal year.

(2) (a) Upon application by a local school board, the state board shall, in consultation with the local school board, classify schools in the school district as necessarily existent small schools, in accordance with this section and state board rules adopted under Subsection (3). (b) An application must be submitted to the state board before April 2, and the state board must report a decision to a local school board before June 2.

(a) Upon application by a local school board, the state board shall, in consultation with the local school board, classify schools in the school district as necessarily existent small schools, in accordance with this section and state board rules adopted under Subsection (3).

(b) An application must be submitted to the state board before April 2, and the state board must report a decision to a local school board before June 2.

(3) The state board shall adopt standards and make rules to: (a) govern the approval of necessarily existent small schools consistent with principles of efficiency and economy that serve the purpose of eliminating schools where consolidation is feasible by participation in special school units; and (b) ensure that school districts are not building secondary schools in close proximity to one another where economy and efficiency would be better served by one school meeting the needs of secondary students in a designated geographical area.

(a) govern the approval of necessarily existent small schools consistent with principles of efficiency and economy that serve the purpose of eliminating schools where consolidation is feasible by participation in special school units; and

(b) ensure that school districts are not building secondary schools in close proximity to one another where economy and efficiency would be better served by one school meeting the needs of secondary students in a designated geographical area.

(4) A one or two-year secondary school that has received necessarily existent small school money under this section prior to July 1, 2000, may continue to receive such money in subsequent years.

(5) The state board shall prepare and publish objective standards and guidelines for determining which small schools are necessarily existent after consultation with local school boards.

(6) (a) Additional weighted pupil units for schools classified as necessarily existent small schools shall be computed using regression formulas adopted by the state board. (b) The regression formulas establish the following maximum sizes for funding under the necessarily existent small school program: (i) an elementary school 160 (ii) a one or two-year secondary school 300 (iii) a three-year secondary school 450 (iv) a four-year secondary school 500 (v) a six-year secondary school 600 (c) Schools with fewer than 10 students shall receive the same add-on weighted pupil units as schools with 10 students. (d) The state board shall prepare and distribute an allocation table based on the regression formula to each school district.

(a) Additional weighted pupil units for schools classified as necessarily existent small schools shall be computed using regression formulas adopted by the state board.

(b) The regression formulas establish the following maximum sizes for funding under the necessarily existent small school program: (i) an elementary school 160 (ii) a one or two-year secondary school 300 (iii) a three-year secondary school 450 (iv) a four-year secondary school 500 (v) a six-year secondary school 600

(i) an elementary school 160

(ii) a one or two-year secondary school 300

(iii) a three-year secondary school 450

(iv) a four-year secondary school 500

(v) a six-year secondary school 600

(c) Schools with fewer than 10 students shall receive the same add-on weighted pupil units as schools with 10 students.

(d) The state board shall prepare and distribute an allocation table based on the regression formula to each school district.

(7) (a) To avoid penalizing a school district financially for consolidating the school district's small schools, additional weighted pupil units may be allowed a school district each year, not to exceed two years. (b) The additional weighted pupil units may not exceed the difference between what the school district receives for a consolidated school and what the school district would have received for the small schools had the small schools not been consolidated.

(a) To avoid penalizing a school district financially for consolidating the school district's small schools, additional weighted pupil units may be allowed a school district each year, not to exceed two years.

(b) The additional weighted pupil units may not exceed the difference between what the school district receives for a consolidated school and what the school district would have received for the small schools had the small schools not been consolidated.

(8) Subject to legislative appropriation, the state board shall give first priority from an appropriation made under this section to funding an expense approved by the state board as described in Subsection 53G-6-305(3)(a).

(9) (a) Subject to Subsection (9)(b) and after a distribution made under Subsection (8), the state board may distribute a portion of necessarily existent small schools funding in accordance with a formula adopted by the state board that considers the tax effort of a local school board. (b) The amount distributed in accordance with Subsection (9)(a) may not exceed the necessarily existent small schools fund in balance of the prior fiscal year.

(a) Subject to Subsection (9)(b) and after a distribution made under Subsection (8), the state board may distribute a portion of necessarily existent small schools funding in accordance with a formula adopted by the state board that considers the tax effort of a local school board.

(b) The amount distributed in accordance with Subsection (9)(a) may not exceed the necessarily existent small schools fund in balance of the prior fiscal year.

(10) A local school board may use the money allocated under this section for maintenance and operation of school programs or for other school purposes as approved by the state board.