Utah Constitutional Requirements for Education Funding Amendment (2024)

Utah Constitutional Requirements for Education Funding Amendment
Election date November 5, 2024
Topic Taxes and Education
Status On the ballot
Type Constitutional amendment	Origin State legislature

The Utah Constitutional Requirements for Education Funding Amendment is on the ballot in Utah as a legislatively referred constitutional amendment on November 5, 2024.^[1]

A "yes" vote supports: requiring taxes on intangible property and income to be used to maintain a public education funding framework, provided through state law, that (1) uses a portion of revenue growth for Uniform School Fund expenditures for changes in student enrollment and long-term inflation and (2) provides a budgetary stabilization account; and allowing the state to use tax revenue for other purposes after education funding requirements are met.

A "no" vote opposes changing the allowed uses for income tax and intangible property tax revenue and opposes allowing the state to use tax revenue for other purposes after education funding requirements are met.

Another constitutional amendment is also on the 2024 ballot in Utah that would increase the constitutional limit on annual distributions from the State School Fund for public education from 4% to 5% of the fund. To read more about the amendment, click here.

Overview

What would the amendment change about education funding in Utah?

See also: Text of measure

Currently, under Section 5 of Article XIII of the Utah Constitution, all revenue from income taxes and intangible property taxes must be used to fund public education, higher education, children, and persons with disabilities.

The proposed amendment would remove the constitutional mandate on how revenues from these taxes are spent. The amendment would provide that taxes on intangible property and income be used to maintain a public education funding framework, provided through state law, that (1) uses a portion of revenue growth for Uniform School Fund expenditures for changes in student enrollment and long-term inflation and (2) provides a budgetary stabilization account. The amendment would allow tax revenue from intangible property and income to be used for other purposes once the requirements for public education funding are met.^[2]

What are supporters and opponents saying about this amendment?

See also: Support and Opposition

State Senator and amendment sponsor Dan McCay (R) said the amendment would "protect and provide continued constitutional protections but then allow for ... revenue in the income tax fund to be used for other state purposes once we fulfilled our responsibilities for growth, and for student enrollment and long-term inflation.” House Majority Leader Mike Schultz (R) said, "It’s time for us as a state to come together and figure out another way forward and how to balance our state’s budget. We have a constitutional duty to balance our state’s budget. We don’t get to make this decision. We can’t make this decision. This bill allows the citizens of the state to make the decision and I think that’s what we need to do."^[3]

Utah House Democrats said, "We cannot support these measures to remove the constitutional earmark on public education funding because education funding is essential to our state’s future and should never be used as a bargaining chip. We strongly believe that education funding is non-negotiable and as Democrats, we believe we must continue to keep public education a priority. ... The language in [the amendment] is vague and the House Democrats worry that the way it is written will result in a significant loss of investment into public education, making education funding subject to the whims of political tides."^[4]

How is this amendment related to repealing the state sales tax on food?

See also: House Bill 54, 2023

The Utah State Legislature passed House Bill 54, titled Tax Revisions, along partisan lines with Republicans voting in favor and Democrats voting against. Among other changes to taxes, the bill was designed to reduce the income tax rate for individuals and businesses from 4.85% to 4.65%. HB 54 was also designed to repeal the state sales tax on food beginning in 2025 if voters approve this constitutional amendment.^[5]

Text of measure

Constitutional changes

See also: Utah Constitution

The amendment would amend Section 5 of Article XIII of the Utah Constitution. The following underlined text would be added and struck-through text would be deleted:^[1]

Note: Use your mouse to scroll over the below text to see the full text.

Article XIII, Section 5. [Use and amount of taxes and expenditures.] (1) (a) The Legislature shall provide by statute for an annual tax sufficient, with other revenues, to defray the estimated ordinary expenses of the State for each fiscal year. (b) If the ordinary expenses of the State will exceed revenues for a fiscal year, the Governor shall: (i) reduce all State expenditures on a pro rata basis, except for expenditures for debt of the State; or (ii) convene the Legislature into session under Article VII, Section 6 to address the deficiency. (2) (a) For any fiscal year, the Legislature may not make an appropriation or authorize an expenditure if the State's expenditure exceeds the total tax provided for by statute and applicable to the particular appropriation or expenditure. (b) Subsection (2)(a) does not apply to an appropriation or expenditure to suppress insurrection, defend the State, or assist in defending the United States in time of war. (3) For any debt of the State, the Legislature shall provide by statute for an annual tax sufficient to pay: (a) the annual interest; and (b) the principal within 20 years after the final passage of the statute creating the debt. (4) Except as provided in Article X, Section 5, Subsection (5)(a), the Legislature may not impose a tax for the purpose of a political subdivision of the State, but may by statute authorize political subdivisions of the State to assess and collect taxes for their own purposes. (5) All revenue from taxes on intangible property or from a tax on income shall be used to (a) support the systems of public education and higher education as defined in Article X, Section 2; and (b) to maintain a statutory public education funding framework that: (i) uses a portion of revenue growth for expenditures from the Uniform School Fund for changes in student enrollment and long-term inflation; and (ii) provides a budgetary stabilization account; (b) (c) to support children and to support individuals with a disability.and (d) to support other state needs after the fulfillment of the requirements in Subsection (5)(b). (6) Proceeds from fees, taxes, and other charges related to the operation of motor vehicles on public highways and proceeds from an excise tax on liquid motor fuel used to propel those motor vehicles shall be used for: (a) statutory refunds and adjustments and costs of collection and administration; (b) the construction, maintenance, and repair of State and local roads, including payment for property taken for or damaged by rights-of-way and for associated administrative costs; (c) driver education; (d) enforcement of state motor vehicle and traffic laws; and (e) the payment of the principal of and interest on any obligation of the State or a city or county, issued for any of the purposes set forth in Subsection (6)(b) and to which any of the fees, taxes, or other charges described in this Subsection (6) have been pledged, including any paid to the State or a city or county, as provided by statute. (7) Fees and taxes on tangible personal property imposed under Section 2, Subsection (6) of this article are not subject to Subsection (6) of this Section 5 and shall be distributed to the taxing districts in which the property is located in the same proportion as that in which the revenue collected from real property tax is distributed. (8) A political subdivision of the State may share its tax and other revenues with another political subdivision of the State as provided by statute. (9) Beginning July 1, 2016, the aggregate annual revenue from all severance taxes, as those taxes are defined by statute, except revenue that by statute is used for purposes related to any federally recognized Indian tribe, shall be deposited annually into the permanent State trust fund under Article XXII, Section 4, as follows: (a) 25% of the first $50,000,000 of aggregate annual revenue; (b) 50% of the next $50,000,000 of aggregate annual revenue; and (c) 75% of the aggregate annual revenue that exceeds $100,000,000.[6]

Campaign finance

See also: Campaign finance requirements for Utah ballot measures

If you are aware of a committee registered to support or oppose this measure, please email editor@ballotpedia.org.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$0.00	$0.00	$0.00	$0.00	$0.00
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00

Support

Supporters

Officials

• State Sen. Dan McCay (R)
• State Rep. Karen Peterson (R)
• State Rep. Mike Schultz (R)

Arguments

Opposition

Opponents

Officials

• State Rep. Brian King (D)

Organizations

• Utah Education Association

Arguments

Background

Constitutional requirements for education funding in Utah

Currently, under Section 5 of Article XIII of the Utah Constitution, individual income taxes, corporate income and franchise taxes, as well as taxes on intangible property are constitutionally mandated to fund public and higher education in Utah. Tax revenue from these sources funds public elementary and secondary schools as well as public universities and colleges. According to Section 2 of Article X of the Utah Constitution, the Utah Legislature may also designate additional education institutions to receive state funding.^[7]

Amendment G, 2018

See also: Utah Constitutional Amendment G (2018)

In 2020, Utah voters approved Amendment G by a vote of 54% to 46% to allow the Utah State Legislature to use revenue from income taxes and intangible property taxes to "support children and to support individuals with a disability." Going into the 2020 election, under the Utah Constitution, tax revenue from income taxes and intangible property could only be used to fund education.

Utah income tax revenue, 2018-2022

The total tax revenue from individual income taxes for the fiscal year 2022 was $6.77 billion. The total revenue from the corporate franchise and income tax for the fiscal year 2022 was $937 million. The Education Fund also received tax revenue from other sources including driver education fees and mineral production withholding. The total tax revenue collected for the Education Fund in 2022 was $7,756,512,564 ($7.76 billion).^[8]

Utah Individual and Corporate Income Tax Revenue, 2018-2022
Year	Individual Income Tax Revenue	Corporate Income Tax Revenue	Total
2022	$6,771,925,739	$937,045,419	$7,708,971,158
2021	$6,110,511,295	$742,697,439	$6,853,208,734
2020	$3,985,400,426	$355,874,698	$4,341,275,124
2019	$4,320,042,492	$520,917,624	$4,840,960,116
2018	$3,998,995,761	$447,934,375	$4,446,930,136

House Bill 54 (2023)

Utah House Bill 54, titled Tax Revisions, was passed along partisan lines with Republicans voting in favor and Democrats voting against. The bill passed in the Senate by a vote of 22-6 and in the House by a vote of 50-11. Among other changes to taxes, the bill was designed to reduce the income tax rate and repeal the state sales tax on food. The provision related to repealing the sales tax on food is contingent on voter approval of the constitutional amendment in 2024.^[9]

House Bill 54 was designed to reduce the individual and corporate income tax rate from 4.85% to 4.65%, resulting in a reduction in income tax revenue by $6,670,000 in 2023, $475,400,000 in 2024, and $396,800,000 in 2025. The bill was designed to repeal the state sales tax (1.75%) on food and food ingredients beginning in 2025 if SJR 10 is approved by voters. The fiscal impact statement for the bill said "Under this change, a household that spends $6,000 annually on food/food ingredients would see tax savings of approximately $105 per year. In total, it is estimated that this change would decrease sales tax liability for taxpayers by approximately $83.8 million in FY 2025 and $211.1 million in FY 2026. Impacts would vary by household depending on the amount of expenditures on food and food ingredients." The bill was also estimated to reduce income taxes for individuals and businesses by $6,670,000 in FY 2023, $475,400,000 in FY 2024, and $396,800,000 in FY 2025 in aggregate.^[10]

Referred amendments on the ballot

From 2000 to 2022, the Utah State Legislature referred 40 constitutional amendments to the ballot. Voters approved 35 (87.50%) and rejected five (12.50%) of the referred amendments. All of the amendments were referred to the ballot for general elections during even-numbered election years. The average number of amendments appearing on the general election ballot was between three and four.

Legislatively-referred constitutional amendments, 2000-2022
Total number	Approved	Percent approved	Defeated	Percent defeated	Annual average	Annual minimum	Annual maximum
40	35	87.50%	5	12.50%	4	1	7

Path to the ballot

See also: Amending the Utah Constitution

In Utah, both chambers of the state legislature need to pass a constitutional amendment by a two-thirds vote during one legislative session to refer an amendment to the ballot.

The amendment was introduced as Senate Joint Resolution 10 on February 17, 2023. On February 28, 2023, the state Senate approved the amendment in a vote of 22-6, with Republicans in favor and Democrats opposed, with one Republican member absent or not voting. On March 3, the House approved an amended version of the bill by a vote of 57-17 with one member absent or not voting. On the same day, the Senate concurred with the House's substitute bill in a vote of 22-6, with Republicans in favor and Democrats opposed, with one Republican member absent or not voting^[1]

Vote in the Utah House of Representatives March 3, 2023 Requirement: Two-thirds (66.67 percent) vote of all members in each chamber Number of yes votes required: 50  a Yes No Not voting Total 57 17 1 Total percent 76.00% 22.66% 1.33% Democrat 0 14 0 Republican 57 3 1

Vote in the Utah State Senate March 3, 2023 Requirement: Two-thirds (66.67 percent) vote of all members in each chamber Number of yes votes required: 20  a Yes No Not voting Total 22 6 1 Total percent 89.66% 0.00% 10.35% Democrat 0 6 0 Republican 22 0 1

How to cast a vote

See also: Voting in Utah

Click "Show" to learn more about current voter registration rules, identification requirements, and poll times in Utah.

How to cast a vote in Utah

Poll times Utah is an all-mail voting state that offers vote centers for voters that choose to vote in person. All vote centers are open from 7 a.m. to 8 p.m. local time. Utah voters are able to vote in person at any vote center. An individual who is in line at the time polls close must be allowed to vote.[11] Registration Check your voter registration status here. To register to vote in Utah, an applicant must be a citizen of the United States, a resident of Utah for at least 30 days prior to the election, and at least 18 years old by the next general election. Pre-registration is available for 16- and 17-year-olds. 17-year-olds may vote in primary elections if they will turn 18 by the general election.[12] Registration can be completed online or by mailing in a form. The deadline to register online or by mail is 11 days before Election Day. After this deadline, voters may register in person at a vote center by casting a provisional ballot and providing two forms of identification.[13][12][14] Automatic registration Utah does not practice automatic voter registration. Online registration See also: Online voter registration Utah has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration In 2018, Utah enacted same-day voter registration; voters may register on Election Day and during the ten days prior by casting a provisional ballot and providing two forms of identification.[13][15] Residency requirements Prospective voters must be residents of the state for at least 30 days before the election. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Utah does not require proof of citizenship for voter registration. Verifying your registration The Utah Lieutenant Governor’s office allows residents to check their voter registration status online by visiting this website. Voter ID requirements Utah requires in-person voters to present non-photo identification while voting.[16] The following list of accepted ID was current as of April 2023. Click here for the Utah State Legislature's statute defining accepted ID to ensure you have the most current information. “ "Valid voter identification" means: a form of identification that bears the name and photograph of the voter which may include: a currently valid Utah driver license; a currently valid identification card that is issued by: the state; or a branch, department, or agency of the United States; a currently valid Utah permit to carry a concealed weapon; a currently valid United States passport; or a currently valid United States military identification card; one of the following identification cards, whether or not the card includes a photograph of the voter: a valid tribal identification card; a Bureau of Indian Affairs card; or a tribal treaty card; or two forms of identification not listed under Subsection (76)(a) or (b) but that bear the name of the voter and provide evidence that the voter resides in the voting precinct, which may include: a current utility bill or a legible copy thereof, dated within the 90 days before the election; a bank or other financial account statement, or a legible copy thereof; a certified birth certificate; a valid social security card; a check issued by the state or the federal government or a legible copy thereof; a paycheck from the voter's employer, or a legible copy thereof; a currently valid Utah hunting or fishing license; certified naturalization documentation; a currently valid license issued by an authorized agency of the United States; a certified copy of court records showing the voter's adoption or name change; a valid Medicaid card, Medicare card, or Electronic Benefits Transfer Card; a currently valid identification card issued by: a local government within the state; an employer for an employee; or a college, university, technical school, or professional school located within the state; or a current Utah vehicle registration.[16][6] ”

See also

2024 measures 2024 ballot measures Taxes on the ballot 2024 legislative sessions

Utah Utah ballot measures Utah ballot measure laws

News and analysis Ballot measure lawsuits Ballot measure readability Ballot measure polls

External links

• Senate Joint Resolution 10

Footnotes

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