Q&A: A Potential Jordan School District Division

      A change to Utah law passed by the 2006 Utah Legislature and modified in 2007 allowed cities to form school districts (Utah Code Ann. § 53A-2-118). On May 1, a coalition representing Alta, Cottonwood Heights, Draper, Midvale, Sandy and Salt Lake County released a study on the feasibility of creating a new school district (School District Feasibility Study, Lewis Young Robertson & Burningham/ Western Demographics—LYRB-E*). West Jordan City released a feasibility study Aug. 3 (Feasibility Analysis of New West Jordan School District, Lewis Young Robertson & Burningham/Western Demographics—LYRB-WJ*). Following public input, each of these cities voted to place proposals to create new school districts on the Nov. 6 General Election ballot.
      During its Oct. 16 meeting, the Jordan Board of Education adopted a resolution opposing a division of Jordan School District (view at www.jordandistrict.org/board/resolution.pdf).
      The following information is provided to give parents, students, taxpayers and employees answers to questions about the status and effect of dividing Jordan School District. Regardless of the outcome, the Jordan Board of Education remains committed to serving the students and taxpayers of Jordan School District through whatever opportunities or challenges lie ahead.

*City feasibility studies were conducted by independent researchers, not by Jordan School District.

• Questions
• Where are new school districts being considered?
• Are other cities within Jordan School District considering creating new school districts?
• Who will vote on creating new school districts?
• What are the potential outcomes of the Nov. 6 vote?
• What would be the current and future enrollments of school districts?
• What would be the timeline for creating new school district(s)?
• Who decides what schools and property go to which district?
• How much will it cost to start a new school district?
• Who pays the costs associated with dividing the school district?
• How is a new school district funded during the transition year?
• Will creating new districts increase operating or administration costs?
• What will happen to property taxes if new school districts are created?
• Will a new district have the financial capacity to meet funding needs?
  
• Will a remaining district have the financial capacity to meet funding needs?
• Will the property tax funding difference between east and west diminish over time?
• What are Jordan School District’s building needs and how will they be funded?
• Is the Legislature considering additional measures to assist remaining school districts?
• Will new school districts be able to provide the same level of educational services as the current Jordan School District?
• Will a remaining school district be able to provide the same level of educational services as the current Jordan School District?
  
• What will happen to schools and programs that draw students from throughout the school district?
  
• What happens to the current elected Board members if the school district is divided?
  
• How are board members for new and remaining school districts selected?
• How would a division impact current school and District employees?

1. Where are new school districts being considered?
   Residents of Alta, Cottonwood Heights, Draper, Midvale, Sandy, and parts of Salt Lake County within those cities, will vote on forming an east-side school district. Residents of West Jordan City will vote on forming a school district encompassing that city’s boundaries.
2. Are other cities within Jordan School District considering creating new school districts?
   The law allows any city, or combination of cities, with more than 50,000 residents to create a new school district (Utah Code Ann. § 53A-2-118). Cities of that size that could still vote to create a school district by themselves are Sandy and South Jordan. The South Jordan City Council recently voted to proceed with a feasibility study for creating a school district within that city’s boundaries, but no public vote will occur this year.
3. Who will vote on creating new school districts?
   During the Nov. 6 General Election, citizens who live within the two proposed new school districts will vote whether or not to create their respective school district. Residents outside those areas will not vote on this issue (Source: Utah Code Ann. § 53A-2-118).

4. Click map to enlarge

   Scenario A: Both district creation votes fail

   Scenario B: East-side vote passes, West Jordan City vote fails

   Scenario C: West Jordan City vote passes, east-side vote fails

   Scenario D: Both school district creation votes pass

   What are the potential outcomes of the Nov. 6 vote?
   Six different school district boundaries could result from the Nov. 6 election:
   
   1. Existing Jordan School District: If residents in both the proposed east-side and West Jordan City school districts vote “no” on creating a new district, the present Jordan School District would continue providing education to students (see Scenario A map).
   2. New East-Side School District: If residents in the proposed east district vote to create a new school district, it would encompass essentially those cities in southern Salt Lake Valley east of the Jordan River (see Scenario B and D maps).
      
   3. Remaining West-Side Jordan School District (including West Jordan): If residents vote to create an east-side school district and West Jordan City residents reject the proposal, the remaining Jordan School District would encompass essentially those cities in southern Salt Lake Valley west of the Jordan River (see Scenario B map).
      
   4. New West Jordan City School District: If residents in West Jordan vote to create a new school district, it would encompass that city’s boundaries (see Scenario C and D maps).
      
   5. Remaining East/West Jordan School District (no West Jordan): If residents in West Jordan vote to create a new district and residents of the eastern cities reject the proposal, the remaining Jordan School District would encompass all the current Jordan School District boundaries except those areas located in West Jordan City (see Scenario C map).
      
   6. Remaining Southwest Jordan School District (no West Jordan or east-side): If residents in both the east-side cities and West Jordan vote to create new school districts, the remaining Jordan School District would encompass Bluffdale, Herriman, Riverton, South Jordan and parts of Salt Lake County near those cities (see Scenario D map).
5. What would be the current and future enrollments of school districts?
   The proposed new east-side school district would contain 43 percent of the students and West Jordan City 26 percent. Student enrollment is expected to grow about 4-6 percent on the west side of Jordan District over the next 10 years with a decline of 0.2 percent estimated for an east-side district (enrollment growth varies by community, see Table 1).
6. What would be the timeline for creating new school district(s)?
   As outlined by law, the timeline for creating new districts could look like this (Source: Utah Code Ann. § 53A-2-118):
   
   • Nov. 6, 2007: Voters in the proposed new districts cast ballots.
   • December 2007: If the vote passes (either east-side, West Jordan, or both), transition teams are formed and district assets are inventoried.
   • January 2008: Board of education precincts are set for both new and remaining districts.
   • June 2008: Board of education elections are held for both new and remaining districts.
   • July 1, 2008: Transition teams determine the allocation of assets between the new and remaining districts.
   • July 15, 2008: Newly elected board of education members take office.
   • August 2008-June 2009: The board of education of the new district(s) appoints a superintendent, hires staff, establishes departments and creates a new school district.
   • July 1, 2009: Districts begin independent operations. The existing Jordan School District and Board of Education provide education services for all areas until this date.
   • July 15, 2009: Terms for current Jordan Board of Education members expire.
7. Who decides what schools and property go to which district?
   The law requires transition teams representing the remaining and new district(s) to allocate assets “in a way that is fair and equitable to both the existing district and the new district…” The legislative bodies of cities and counties involved in creating a new district appoint transition team members to represent the new district. Members of the existing district board who reside in the area of the remaining district appoint transition team members to represent the remaining district. Any disputes are resolved by arbitration (Source: Utah Code Ann. § 53A-2-118).
8. How much will it cost to start a new school district?
   Dividing Jordan School District three ways will cost an estimated $144 million in start-up expenses according to feasibility studies. Unless some type of sharing arrangement is made, new districts would require new facilities for administration, transportation, maintenance, etc. Start-up costs include expenses for buildings, computer systems, legal fees, consulting, etc. It does not include employee salaries during a new district’s transitional year (see Question #10). The costs for other scenarios (see scenario maps and Question #4) are as follows (Source: LYRB-WJ, p. 52):
   
   1. Existing Jordan School District: $0
   2. New East-Side School District: $25.8 million
      
   3. Remaining West-Side Jordan School District (incl. WJ): $40.5 million
      
   4. New West Jordan City School District: $57.7 million
      
   5. Remaining East/West Jordan School District (no WJ): $4.7 million
      
   6. Remaining SW Jordan School District (no WJ or East): $60.5 million
9. Who pays the costs associated with dividing the school district?
   Taxpayers ultimately pay all costs. The law indicates the city or cities in a newly formed district initially bear the costs of transition teams and are reimbursed by the new district within one year after it begins collecting taxes. Jordan School District bears the costs for the remaining district transition team. Beyond costs associated with the transition teams, the law does not stipulate how other start-up costs (i.e.: relocation expenses, new administration buildings/ facilities, legal fees, computer systems, etc.) are funded. All costs are paid from educational funds of school districts unless the State Legislature appropriates additional money (Source: Utah Code Ann. § 53A-2-118). Feasibility studies indicate these costs could be paid through bonding (Source: LYRB-WJ, p. 52).
10. How is a new school district funded during the transition year?
    The law provides for the board of education of a newly created district to take office July 15 of the year prior to beginning school operations, but does not give taxing authority to the board until it begins providing education services. (Source: Utah Code Ann. § 53A-2-118) At this time the law does not indicate how the board of a new district will fund staffing and start-up functions during this transition year. This issue could be addressed in future legislation.
11. Will creating new districts increase operating or administration costs?
    Per-student administration costs in 2004-05 (most recent year available) averaged $655 nationally, $378 in Utah and $344 in Jordan School District, ranking the district among the most efficient in the country (Source: U.S. Census Bureau, Public Education Finances 2005). Three districts would require three superintendents, three business administrators and other district-level staff. Unless some type of sharing arrangement is made, new districts would require new facilities and staff for administration, transportation, information systems and other departments.
12. What will happen to property taxes if new school districts are created?
    No one can definitively answer this question at this time. Property taxes can only go up or down if the board of education of a new or existing district votes to do so. An analysis of data contained in the feasibility studies indicates that, to maintain per-student funding for operations equal to that of the existing Jordan School District, an east-side district could reduce property taxes 26 percent, while the remaining west-side would need to raise property taxes 35 percent. For a West Jordan City district, the increase would be 42 percent to maintain per-student funding levels. Growth in taxable value over the next 10 years would allow an east-side district to reduce property taxes by 30 percent, while a west-side district would require a 25-percent increase and West Jordan City a 36-percent increase to maintain per-student funding equal to a combined Jordan School District (see Table 3). West-side district(s) would need to increase taxes simply to maintain per-student funding, not including additional costs for future bonds needed to build or renovate schools (see Questions #14 and 15).
13. Will a new district have the financial capacity to meet funding needs?
    Consultants conducting the east-side coalition feasibility study concluded that a “tax increase for the west district and the potential tax savings in the east district create a feasible opportunity for the creation of a new east school district, while maintaining the ability of the remaining west district to meet their projected educational and capital needs” (Source: LYRB-E, p. 11). The West Jordan City study concluded a new district in that city “will have the capacity to meet its revenue needs should the new board of education adopt appropriate tax rates and the residents of the new district approve the rate increases. It is important to note that without a tax increase the district will not have the necessary funding to cover the capital needs” (Source: LYRB-WJ, p. 10).
14. Will a remaining district have the financial capacity to meet funding needs?
    Depending on how future boards of education deal with growth and tax disparity issues, the east-side feasibility study showed those residents living in a remaining west-side district would pay at least two to three times more in debt-service property taxes than those living in a new east-side district to maintain current services (Source: LYRB-E, pp. 86-87).
15. Will the property tax funding difference between east and west diminish over time?
    According to the feasibility studies, the east side of Jordan School District has 57 percent of the taxable real estate (assessed valuation) to support 43 percent of the students. This imbalance results in a taxable value per student of $375,849 on the east and $207,092 in the west, compared to $279,154 for the existing District. For West Jordan City, the taxable value per student is $195,952. The ratio of taxable value to student enrollment will change little over the next 10 years, meaning the discrepancy in per-student taxable value between east and west will continue (see Tables 1 and 2).
16. What are Jordan School District’s building needs and how will they be funded?
    Building renovation and the need for new schools to address enrollment growth, particularly on the District’s west side, will require additional bonding and tax increases just to maintain current services. Jordan School District estimates a need for 24 new school buildings and 39 major remodel/renovation projects by 2016 at a cost of $975 million (see Table 4). About 80 percent of these costs are on the west side of Jordan School District. Based on 2006 estimates, covering these expenses will require additional bond authorization of $779 million (Source: Jordan School District Growth Summit). This does not include costs to divide school districts (see Question #8). The board of education of any new or existing district ultimately determines the district’s building needs and must put any bonding requests to a public vote.
17. Is the Legislature considering additional measures to assist remaining school districts?
    The 2007 Utah State Legislature directed a committee to study: 1) whether all voters in the existing district should be involved in the decision to create a new district, 2) whether a feasibility study should be required for each district that results from the creation of a new district, 3) whether the issue of school building equalization for districts that result from the creation of a new district should be addressed, and 4) whether any existing district should be required to divide into two or more districts when it reaches a certain size (Senate Bill 30). The Legislature took no formal action on issues 1, 2 or 4 prior to new district creation proposals being placed on the Nov. 6 ballot. During the 2007 Special Session, the Legislature elected not to adopt a school building funding equalization plan, but formed a task force to further study the issue (House Bill 1003).
18. Will new school districts be able to provide the same level of educational services as the current Jordan School District?
    Feasibility studies conducted by the east-side coalition and West Jordan City indicate “neutral or mixed” impact on education quality, depending on funding ability, in the new district(s) based on five metrics (Source: LYRB-E, p. 102; LYRB-WJ, p. 80):
    
    • School/District Scale Issues: Could be positive “if smaller districts produce the positive results demonstrated by research.”
    • Student Performance: Neutral impact for an east-side district, negative for West Jordan City.
      
    • Year-Round Schools: Neutral or positive impact for both east-side and West Jordan districts (Note: the Jordan Board of Education has a stated goal to move schools to traditional schedules as soon as school populations allow.)
      
    • Division of Facility Assets: Neutral impact for both east-side and West Jordan districts. Potentially negative if new district(s) is unable to duplicate or share school resources.
      
    • Central Instructional Support Quality: Negative or neutral impact for both east-side and West Jordan City districts.
19. Will a remaining school district be able to provide the same level of educational services as the current Jordan School District?
    No feasibility study was conducted on behalf of students or residents in a remaining school district.
20. What will happen to schools and programs that draw students from throughout the school district?
    Student population allows larger school districts to offer more “magnet” and special programs than a smaller enrollment can support. In a division, transition teams representing the remaining and new district(s) will be charged with allocating assets “in a way that is fair and equitable to both the existing district and the new district…” (Source: Utah Code Ann. § 53A-2-118). The impact of a division on these Jordan School District programs is unknown:
    • Jordan Applied Technology Center, Sandy Campus: Technical training in business and computer programs, floral design, cosmetology, welding, auto mechanics and other technology fields.
    • Jordan Applied Technology Center, West Jordan Campus: Technical training in biotechnology, medical/dental assisting, pharmacy, physical therapy, veterinary, aviation and engineering.
      
    • Jordan Family Education Center (Midvale): Support services, classes and counseling for families and students.
      
    • Jordan Resource Center (Midvale): Middle- and high-school program for students with severe behavioral and emotional challenges.
      
    • Jordan Valley School (Midvale): School for students with severe multiple disabilities.
      
    • Itineris Early College High School (West Jordan): Science and mathematics high school.
      
    • Middle School ALPS (Midvale): Advanced learning program for middle school students.
      
    • International Baccalaureate (Midvale): Internationally recognized rigorous high school program for juniors and seniors.
      
    • Valley High (South Jordan): Alternative high school for students struggling in a regular school setting.
      
    • South Valley School (West Jordan): Training for special education students in independent living skills, character education and vocational preparation.
      
    • Southpointe High (Sandy): Educational services for adults 18 and older whose class has graduated.
21. What happens to the current elected Board members if the school district is divided?
    The current Board provides educational services to students in all areas until new districts begin operations. If a new district is created, current Jordan Board of Education members continue to serve until “July 15 of the second year after the election at which voters approve the creation of a new district, regardless of when the term would otherwise have terminated” (see Question #6; Source: Utah Code Ann. § 53A-2-118).
22. How are board members for new and remaining school districts selected?
    The law allows 45 days following an election to create a new school district to divide school districts (new or remaining) into local school board precincts. This is done by the county council for school districts encompassing more than one city or the city council for school districts contained in one city. Seven board members would be elected for each district (new and remaining) during an election in June following the vote to create a new district. The new board members take office July 15 following the election (Source: Utah Code Ann. § 53A-2-118).
23. How would a division impact current school and District employees?
    EMPLOYMENT: The law states that individuals employed at schools transferred to a new district become employees of the new district and that the school board of the new district shall “have discretion in the hiring of all other staff.” The law is silent as to what happens to non-school employees at the remaining district, including central staff and staff assigned to multiple schools.
    SALARY/BENEFITS: The law states that the school board of a new district shall “adopt the personnel policies and practices of the existing district, including salary schedules and benefits.” In addition, employees of the new district retain the same status as a career or provisional employee with accrued seniority and benefits. This applies to employees of the existing district hired by the new district or employees transferred to the new district then rehired by the existing district within one year of the date of the creation of a new district. The law does not stipulate how long a new district is required to honor the existing District’s personnel policies, practices, salary schedules and benefits (Source: Utah Code Ann. § 53A-2-122).

• For More Information — The following sources were used for information contained in this publication:
  
• Utah State Code (Title 53A, Chapter 2)
  
• U.S. Census Bureau, Public Education Finances 2005
  
• School District Feasibility Study (LYRB-E)*
  
• Feasibility Analysis of New West Jordan School District (LYRB-WJ)*
  
• Jordan School District Growth Summit

*City feasibility studies were conducted by independent researchers, not by Jordan School District