SALT LAKE CITY — Governor Spencer Cox has vetoed a bill that reworks how property tax money goes to local school districts.
Most property tax money goes directly to local school districts. Senate Bill 37, sponsored by Sen. Lincoln Fillmore, R-South Jordan, would take that money and put it in the state's general fund, then it would be distributed to local school districts.
Gov. Cox told legislative leaders in a letter outlining his veto that it was a "perception problem" with the public and legal issues raised by Utah State Auditor Tina Cannon.
"At its core, this bill changes how we collect and distribute the state portion of property tax revenues for schools. Right now, Utahns are correctly told by their government that their local property tax dollars are going to fund their local schools. That arrangement is spelled out specifically in our annual property tax notices, and it’s a promise we’ve honored for decades. SB 37 represents a clear departure from this practice by moving those dollars into the state’s general fund, with income tax revenues replacing them before they go back out to districts. At a minimum, such accounting creates a perception problem as we lose the direct connection between taxpayers and their neighborhood schools," Gov. Cox wrote.
But he said the problem was bigger than that.
"Moving restricted property tax funding into the general fund creates significant technical and legal questions. For one, it’s not entirely clear whether these property tax dollars, once they land in the general fund, still carry the restrictions that have always protected them for education use. Without that clarity, future legislatures could easily redirect those funds to other priorities and away from Utah schoolchildren. I oppose that change."
The governor said the legislature was sending the wrong message about the value Utah places on education funding with the bill. It was something he told reporters he was concerned about when asked about bills he would veto during an event in Manti.
"I am concerned about the narrative that we’re hearing from so many that we don’t care about teachers or that we’re adverse to education and that’s just not true," he told FOX 13 News. "The legislature’s been incredible. Over $2 billion in the last four years, more than any time in our state’s history. I care deeply about our teachers, I care deeply about our education system especially in rural Utah. We want teachers to know, educators to know, parents to know, families to know that the public education system in Utah is robust and supported and we’ve got their backs."
In a statement to FOX 13 News, Senate President J. Stuart Adams, R-Layton, hinted at the possibility of a veto override.
"Vetoes are part of the legislative process. However, I respectfully disagree with the decision to veto S.B.37, which establishes a framework to provide a more fair funding structure, ensuring that every school district is treated equally in terms of state funding. The bill does not cut education funding; rather, it stabilizes the funding system, ultimately providing better support for all of Utah's students," he said.
"In the next couple of weeks, we will have discussions with lawmakers and then decide how to proceed. We remain committed to ensuring that Utah's education system remains well-funded, well-managed and prepared for the future. We look forward to engaging in further discussions with the governor and all stakeholders as we continue to build on Utah's legacy of educational excellence. I appreciate the governor's commitment to working together to ensure Utah's continued success for generations to come."
Opponents of the bill also suggested it was the legislature's attempt to get around a judge's decision to void Amendment A on the ballot last year (that removed the earmark on income tax for public education). The Utah Supreme Court had voided Amendment D and it trickled down to Amendment A.
"The Utah Education Association applauds Governor Spencer Cox’s decision to veto SB 37," the state's largest teachers union said in a statement on Monday. "This bill would have redirected public education funds away from Utah’s public schools and weakened local control. Utah must preserve education funds for their intended purpose: supporting the success of Utah’s public school students."
The Utah State Board of Education said it was also happy to see the veto.
"The Utah State Board of Education (USBE) is pleased the value of public education funding has been reaffirmed today through Governor Cox’s veto of SB37," the board said in a statement. "The Board voted to formally request Governor Cox to veto S.B. 37, — which would alter the flow of property tax revenue and change the way Utah schools are funded... we are grateful that the governor has chosen to stand alongside USBE and uphold Utah’s commitment to strong public education and local control."
Read the governor's veto letter here:
