Changes to how Utah schools are funded clear committees

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SALT LAKE CITY — Two legislative committees signed off on the proposed major changes to the way education is funded in Utah, moving HB357 and SJR9 to their final votes.

The companion bills would create a reserve account for education funds and expand what schools can spend property taxes on if voters approve a constitutional amendment to let income taxes be used for other purposes than education.

Several education groups supported the bill, though the state’s teachers union spoke out against rushing the legislation in the final days of the session.

“Constitutional amendments shouldn’t be taken lightly. We only have four days left in the session,” Utah Education Association Executive Director Brad Bartels told the House Revenue and Taxation Committee during a hearing on SJR9.

Debate to HB357 was terse at times Monday morning, with individuals from the various education stakeholders speaking out. Ultimately, the Senate Revenue and Taxation Standing Committee approved the bill with a single dissenting vote.

HB357, sponsored by Rep. Robert Spendlove, R-Sandy, would only go into effect if legislators also pass SJR9 — a resolution that proposes amending the Utah Constitution to allow income tax to also fund services for children and people with disabilities, which are both now funded through the state’s General Fund.

“To me one of the best parts of this overall proposal is ultimately we’d let Utah voters decide,” Spendlove told members of the Senate Revenue and Taxation Committee. “This bill takes effect if Utahns approve the constitutional change in the 2020 general election.”

Constitutional amendments require both the House and Senate to approve the resolution by a two-thirds majority in order for the issue to go on the November ballot.

HB357 calls for a constitutionally protected account set aside for K-12 education, as well as reserving revenues in a “public education stabilization fund.” It also calls for automatic adjustments to education funding for enrollment growth and inflation and would allow local school districts to use property tax revenue within certain limits for school operations.

Spendlove explained that the legislation is necessary to counter Utah’s unstable income tax revenue. According to Spendlove, the bill would protect, grow and stabilize educational funding going forward, as well as have the capacity to sustain education for a two-year economic downturn.

The Utah State Board of Education, the Utah School Boards Association, the Utah School Superintendents Association and Utah Association of Public Charter Schools are all in favor of the efforts, Spendlove said. Representation from the Utah PTA also attended the hearing to speak in favor of the bill though they did have some concerns with the wording.

Steve Hirase, education commissioner for the Utah PTA, said they do have some concern with the vagueness of the statement “support children and individuals with a disability.” He said they question what that could mean in future decisions and requested more specificity to be added to the statement before going to the people.

McKay Jensen, Utah School Boards Association president, praised the efforts as setting the state on a good path by stabilizing public education funding in the years to come.

“This increases transparency,” Jensen said.

However, the Utah Education Association, one of Utah’s largest education stakeholders, opposes both the bill and resolution. Representatives from their organization spoke against the measures during the two hearings.

Jay Blain, UEA director of policy and research, said his organization “reluctantly opposes” HB357 and that they are having ongoing discussions about possible changes. He declined to say what those issues involve.

In the afternoon debate on the constitutional amendment, Bartels told the House Revenue and Taxation Committee that in 1947 the people of Utah decided to put education “in a paramount position” by voting for the constitutional amendment that made it so all income tax funds are dedicated to education.

If the resolution is enacted, he said there could be a dilution in the education fund up to $650 million next year.

“We don’t want to be in a situation where we are competing with children and individuals with disabilities,” Bartels said, pointing out they he believes a “generational change” like this requires more time to discuss. He also suggested the proposal be considered during a special session because of its complexity.

But Rep. Doug Sagers, R-Tooele, said he believes there is time to address concerns at a future special session where they could make adjustments to the legislation after it is passed.

SJR9’s sponsor Sen. Dan McCay, R-Riverton, said expanding the constitutional earmark would give the state the flexibility to help children holistically.

“This language acknowledges that the whole child in the education process matters,” he said, citing school breakfast programs, efforts to make sure classrooms are appropriately academic, and other measures to mentally and physically prepare children for classroom participation as examples of services that would be covered by expanding the constitutional earmark.