State Board of Education mulling statewide property tax for charter schools

SALT LAKE CITY — The State Board of Education is considering different methods to better "equalize" education funding across Utah, including a statewide property tax to fund charter schools.

Board member David Thomas, who supports the levy, said charter schools are public schools and shouldn't be treated differently.

"They should have the same kind of funding source," he said. "It should work the exact same way, which means a small levy, statewide, to support charter schools."

Currently, charter schools can't impose taxes. Local school boards instead share a portion of their local tax revenues with their charter schools while the state makes up the difference through general funds. That leads to an unstable funding source, Thomas said, and every year charters have to rely on the Legislature for funding.

The levy would generate $67 million for charter schools that is currently being paid for through the local replacement funds. The levy would equate to about $30 a year for a home valued at $150,000. The property tax revenue would free up income tax funds that could potentially go toward increasing the weighted pupil unit — the funding districts receive per child from the state.

Thomas plans to present the concepts he shared with the state board to a legislative education interim committee on Oct. 20.

Sen. Howard Stephenson, R-Draper, who chairs that committee and is president of the Utah Taxpayers Association, said there's little chance the idea will gain traction with lawmakers.

"I predict that is dead on arrival at the Legislature," he said. "Those children are already funded through their local school district property taxes. … That's just not going to happen."

Some board members raised concerns about the proposal, and four voted not to present the proposal to the Legislature.

Dennis Morrill said charter schools were supposed to be innovative, inexpensive alternatives to public schools, but Thomas' concept shows the opposite.

Other board members expressed concern that some districts with no charter schools would have to pay to support districts that have several, without any benefit for their spending.

"I'm very troubled by the statewide levy," said chairwoman Debra Roberts.