School financial equity bill defeated

After almost an hour of debate, a bill meant to create financial equity between school districts failed in the House, 33-42, Monday.

HB66, sponsored by Rep. Merlynn Newbold, R-South Jordan, aims to make funding for schools fair regardless of whether a district comprises an area of wealth or poverty.

There have now been nine substitutes on the bill, the last of which included adding an element stating that as property tax growth occurs, funding is to be used for districts that are paying a charter school offset.

After shuffling through the paperwork from the substitutes, some lawmakers said they doubted everyone understood the bill and they would like to send the legislation to interim for further study and discussion.

"We really ought to take some time. This affects every district in the state. We should make sure we are getting it right," said Rep. Kay McIff, R-Richfield.

The representatives voted 38-37 to consider a ninth substitute of the bill, after which hefty discussion ensued.

"We already have a statewide equalization with our income tax," said Rep. Marie Poulson, D-Salt Lake, adding she not only opposed approving the bill but also didn't want to discuss it in interim.

"This is long overdue," said Rep. Sheryl Allen, R-Bountiful. She supports the equalization aspect of the bill, explaining Davis School District could use a bit of financial equity as compared to the rest of the state.

The overall bill would increase the state property tax while decreasing local property tax by an equal amount. Local property taxes stay within the school districts. State property taxes are spread throughout the state.

There would be no change in people's property taxes — rather how the taxes are spent would change. The bill proposes shifting $155 million in local district taxes to state property tax.

If the bill were approved, 22 school districts — plus charter schools as a whole — would have gained funding, while 19 would have lost funding.

Charter schools would have gained $8.8 million, Davis School District would have gained $4.9 million and Alpine School District would have gained $3.3 million.

The Salt Lake School District would have lost $8 million, Park City School District would have lost $7.8 million and Canyons School District would have lost $3.2 million.

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