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Beginning in 2017, one-third of new state public education dollars could be set aside and parceled out to Utah's lowest-funded school districts.
That's the vision of SB244, sponsored by South Jordan Republican Sen. Lincoln Fillmore, which passed the Utah Senate in an 18-10 vote on Monday.
The bill would steadily raise the tide for school district budgets, using the state's income tax to fill in the gaps left by unfavorable local property values.
"The school districts funded at the lowest level are falling further and further behind," Fillmore said.
But sequestering one-third of new education funding for poor districts would leave two-thirds for investing in the state as a whole. That would mean smaller increases to per-student spending, for which Utah currently ranks lowest in the nation.
Fillmore's proposal was spun off from a package of school funding reforms in the final weeks of the legislative session. And several Senators expressed concern on Monday that there was insufficient opportunity for the education community to explore the ramifications of the bill before the Legislature adjourns.
"There simply isn't enough time to get these questions answered in the next three days," said Sen. Brian Shiozawa, R-Cottonwood Heights. "I can't support this bill at this time."
Many of the state's lowest-funded districts have reached the state's cap for tax levies, collecting fewer dollars despite hitting a revenue ceiling as a result of low property values.
But there are "a fair number" of districts, Fillmore said that have not reached the cap and would benefit from his bill. Under the bill, low-funded districts would receive a greater state funding match based on their local taxing effort.
Salt Lake City Democrat Sen. Gene Davis suggested the bill would reward school districts for failing to maximize local property taxes, while also drawing funds away from the statewide budget.
"Their own taxpayers have not valued education to the point of raising their own property taxes to pay for it," he said.
Other lawmakers argued that it was the state's responsibility to correct the funding inequities created by school district boundaries.
Draper Republican Sen. Howard Stephenson, who works as president of the Utah Taxpayers Association, said the state has been working to equalize funding for 20 years. He said Fillmore's bill was both the right thing and the ethical thing to do.
"We shouldn't be picking winners and losers when it comes to our children's education," Stephenson said.
The bill will now be transferred to the House for consideration.
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