Statewide school equalization plan passes Legislature

The "equalization" bill, which spreads $15 million to help school districts pay for buildings statewide but virtually guarantees a tax increase in for most Salt Lake County residents, is headed to Gov. Jon Huntsman Jr. for his signature.

The Senate on Monday voted 17-9 to agree with the changes the House made Friday, mostly to spread the $15 million in one-time money building help to every school district in the state except tax-rich Park City.

But the controversial part to equalize property tax revenues in Salt Lake County school districts remained untouched. That part requires Murray, Jordan-east, Salt Lake City and Granite school districts to pool part of their property tax money to send $12 million to the tax-poor, and rapidly growing, Jordan-west district. As such, residents in those districts almost definitely will see a property tax hike to make up for the loss.

That brought no votes from most Salt Lake County representatives and several Democrats.

The bill is "inherently unfair to a portion of Salt Lake County," said Sen. Pat Jones, D-Cottonwood Heights.

"We need to have a statewide equalization plan ... this does not do that," she said. "If we're going to make an equalization plan, let's make it fair in this state."

The bill stems from the Jordan District split. The district's west side lost more than half its tax base when east-side residents voted to secede last November. East-side representatives vowed to address ways to make raising money to build schools more fair. Right now, school districts have different tax bases; some, with several big businesses; others, bedroom communities, resulting in some residents being taxed at higher rates to make ends meet. Buildings primarily are paid for by property taxes. Two task forces took on the issue since last spring.

SB48 has been substituted five times. It at first sought to spread just under $29 million in ongoing money to 25 school districts to help them build or refurbish schools. In turn, taxes were to go down in districts receiving money, but school boards could hold hearings to keep the tax rates the same to pull in the additional money. The bill then changed to include the Salt Lake County equalization, and again when only $15 million in one-time money was slotted for the bill.

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