Utah State School Fund Distribution Cap Increase Amendment (2024)

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Utah State School Fund Distribution Cap Increase Amendment
Flag of Utah.png
Election date
November 5, 2024
Topic
Education and State and local government budgets, spending and finance
Status
On the ballot
Type
Constitutional amendment
Origin
State legislature

The Utah State School Fund Distribution Cap Increase Amendment is on the ballot in Utah as a legislatively referred constitutional amendment on November 5, 2024.[1]

A "yes" vote supports increasing the limit on annual distributions from the State School Fund for public education from 4% to 5% of the fund.

A "no" vote opposes increasing the limit on annual distributions from the State School Fund for public education from 4% to 5% of the fund.


Overview

What would this amendment change about state school fund distributions?

See also: Text of measure

The amendment would increase the limit on annual distributions from the State School Fund for public education from 4% to 5% of the fund.

The Utah State School Fund is provided for under Section 5 of Article X of the Utah Constitution. Only investment earnings, not principal, can be distributed from the Utah State School Fund. This money can only be used to provide money for the public education system. Distributions are independent of other tax revenues that are dedicated to education funding. Since voter approval of Utah Amendment B in 2016, annual distributions are capped at 4% of the fund.

Distributions are made to public schools based on a per-pupil formula. School Community Councils, comprised of parents and educators, determine how to spend the funds. Expenditures could include purchasing new library books and hiring teacher aids. On February 7, 2023, the Utah State Treasurer announced that the State School Fund would distribute $101 million to public schools in 2023, a 5.4% increase from the 2022 distribution of $95.85 million. In 2021, the distribution to schools was $92.84 million.[2]

What are supporters and opponents saying about this measure?

See also: Support and Opposition

State Rep. and amendment sponsor Jefferson Moss (R) said, "This would increase the cap of the payout, which will be great. It will increase the amount we can give directly to school children and schools throughout the state."[3]

Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.

Is there another amendment related to education funding on the 2024 ballot in Utah?

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.

Another amendment on the 2024 ballot 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.[4]

Text of measure

Constitutional changes

See also: Utah Constitution

The amendment would amend Section 5 of Article X 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 X, Section 5. [State School Fund and Uniform School Fund -- Establishment and use -- Debt guaranty.]

(1) There is established a permanent State School Fund which consists of:

(a) proceeds from the sales of all lands granted by the United States to this state for the support of the public elementary and secondary schools;
(b) 5% of the net proceeds from the sales of United States public lands lying within this state;
(c) all revenues derived from nonrenewable resources on state lands, other than sovereign lands and lands granted for other specific purposes;
(d) all revenues derived from the use of school trust lands;
(e) revenues appropriated by the Legislature; and
(f) other revenues and assets received by the permanent State School Fund under any other provision of law or by bequest or donation.

(2) (a) The permanent State School Fund shall be prudently invested by the state and shall be held by the state in perpetuity.

(b) Only earnings received from investment of the permanent State School Fund may be distributed from the fund, and any distribution from the fund shall be for the support of the public education system as defined in Article X, Section 2 of this constitution.
(c) Annual distributions from the permanent State School Fund under Subsection (2)(b) may not exceed 4% 5% of the fund, calculated as provided by statute.
(d) The Legislature may make appropriations from school trust land revenues to provide funding necessary for the proper administration and management of those lands consistent with the state's fiduciary responsibilities towards the beneficiaries of the school land trust. Unexpended balances remaining from the appropriation at the end of each fiscal year shall be deposited in the permanent State School Fund.
(e) The permanent State School Fund shall be guaranteed by the state against loss or diversion.

(3) There is established a Uniform School Fund which consists of:

(a) money from the permanent State School Fund;
(b) revenues appropriated by the Legislature; and
(c) other revenues received by the Uniform School Fund under any other provision of law or by donation.

(4) The Uniform School Fund shall be maintained and used for the support of the state's public education system as defined in Article X, Section 2 of this constitution and apportioned as the Legislature shall provide.

(5) (a) Notwithstanding Article VI, Section 29, the State may guarantee the debt of school districts created in accordance with Article XIV, Section 3, and may guarantee debt incurred to refund the school district debt. Any debt guaranty, the school district debt guaranteed thereby, or any borrowing of the state undertaken to facilitate the payment of the state's obligation under any debt guaranty shall not be included as a debt of the state for purposes of the 1.5% limitation of Article XIV, Section 1.

(b) The Legislature may provide that reimbursement to the state shall be obtained from monies which otherwise would be used for the support of the educational programs of the school district which incurred the debt with respect to which a payment under the state's guaranty was made.[5]

Support

Supporters

Officials

Individuals

  • Ryan Kulig - Finance and Operations Officer at Utah School & Institutional Trust Funds Office


Arguments

  • State Rep. Jefferson Moss (R): "This would increase the cap of the payout, which will be great. It will increase the amount we can give directly to school children and schools throughout the state."


Opposition

Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.

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

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.[6]

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).[7]

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

State School Fund

The Utah State School fund is provided for under Section 5 of Article X of the Utah Constitution. The fund consists of:

  • proceeds from land sales granted by the United States to support public elementary and secondary schools;
  • 5% of the net proceeds from the sales of United States public lands in the state;
  • revenue from nonrenewable resources on state lands;
  • revenue from school trust lands;
  • revenue appropriated by the legislature; and
  • revenue and assets under any other provision of law or by bequest or donation.

Money in the fund is invested and only earnings received from investment can be distributed from the fund. Funds may only be distributed to fund the public education system and distributions are independent of other tax revenues that are dedicated to education funding. Voter approval of Amendment B in 2016 capped annual distributions to 4% of the fund. Voters approved Amendment B in a vote of 64% to 36%.[8]

Distributions are made to public schools on a per-pupil formula, meaning funds are allocated per student. School Community Councils, comprised of parents and educators, determine how to spend the funds. The Utah State Treasurer said funds may be spent for things such as purchasing new library books and hiring teacher aids.[2]

State School Fund financials

On February 7, 2023, the Utah State Treasurer announced that the state school fund would distribute $101 million to public schools in 2023, a 5.4% increase from the 2022 distribution of $95.85 million. In 2021, the distribution to schools was $92.84 million.[2]

The table below details the financials of the State School Fund from 2012 to 2022.[9]

Utah State School Fund financials, 2012-2022
Fiscal year Beginning balance Revenues Transfers Ending balance
2022 $3,016,860,687 $2,954,964 -$95,824,593 $2,923,991,058
2021 $2,398,997,278 $710,695,758 -$92,832,349 $3,016,860,687
2020 $2,533,057,488 -$45,245,702 -$88,814,509 $2,398,997,278
2019 $2,472,297,753 $143,403,624 -$82,643,889 $2,533,057,488
2018 $2,386,743,596 $185,577,002 -$100,022,845 $2,472,297,753
2017 $2,160,220,505 $265,511,782 -$38,988,692 $2,386,743,596
2016 $2,137,628,643 $20,824,408 $1,767,454 $2,160,220,505
2015 $1,987,122,102 $150,106,198 $400,343 $2,137,628,643
2014 $1,605,655,426 $379,666,505 $1,800,171 $1,987,122,102
2013 $1,361,625,502 $243,443,073 $586,851 $1,605,655,426
2012 $1,279,242,460 $80,013,425 $2,369,617 $1,361,625,502

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.

On February 21, 2023, the state House approved the amendment in a vote of 66-0 with nine members absent or not voting. On March 2, 2023, the state Senate approved the amendment in a vote of 27-0 with two members absent or not voting.[1]

Vote in the Utah House of Representatives
February 21, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 50  Approveda
YesNoNot voting
Total6609
Total percent88.00%0.00%12.00%
Democrat1400
Republican5209

Vote in the Utah State Senate
March 2, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 20  Approveda
YesNoNot voting
Total2702
Total percent93.10%0.00%6.90%
Democrat600
Republican2102

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.

See also

External links

Footnotes

  1. 1.0 1.1 1.2 Utah State Legislature, "House Joint Resolution 18," accessed February 21, 2023
  2. 2.0 2.1 2.2 Utah State Treasurer, "Utah public schools to receive record $101 million distribution from School and Institutional Trust System," accessed March 28, 2023
  3. Utah State Legislature, "HJR 18 discussion," accessed March 28, 2023
  4. Utah State Legislature, "S.J.R. 10 Proposal to Amend Utah Constitution - Income Tax," accessed March 11, 2023
  5. 5.0 5.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  6. Tax.Utah.Gov, "Fiscal Year 2018 report, pg. 15," accessed March 25, 2020
  7. Tax.Utah.Gov, "Fiscal Year 2022 report, pg. 36," accessed March 14, 2023
  8. UPR, "Utah public schools receive $101 million," accessed March 28, 2023
  9. Utah State Legislature, "Permanent State School Fund," accessed March 14, 2023
  10. Salt Lake County Clerk, “Election Day Vote Centers,” accessed April 24, 2023
  11. 11.0 11.1 [https://voteinfo.utah.gov/wp-content/uploads/sites/42/2020/05/Voter-Registration-Form5-20.pdf Utah Lieutenant Governor: Elections, “State of Utah Voter Registration Form,” accessed April 24, 2023
  12. 12.0 12.1 Utah Lieutenant Governor, “Learn how to register to vote,” accessed April 24, 2023
  13. Vote.Utah.gov, "State of Utah Voter Registration Form," accessed April 24, 2023
  14. Utah State Legislature, “Section 207 Registration by provisional ballot,” accessed April 24, 2023
  15. 15.0 15.1 Justia, "Utah §20A-1-102(2022)," accessed April 24, 2023