Bill > SB0321

This bill modifies the state's public education funding mechanisms, primarily focusing on changes to local levy guarantees and state funding allocations. The bill introduces a new concept of "excess funds," which represents the difference between the state guarantee money a school district received in fiscal year 2025 and what it would receive based on the current certified tax rate. Starting in the 2026 fiscal year, the bill allows for a reduction in state guarantee money for school districts due to changes in property valuation, with a structured phase-out of excess funds over three years. Specifically, in the 2026 fiscal year, affected districts will receive 100% of their excess funds, dropping to 66% in 2027, 33% in 2028, and zero excess funds by 2029. The bill also limits the total number of guaranteed local levy increments to 20 across voted and board local levies, adjusts the state's guarantee calculation method, and removes a previous five-year hold harmless provision that protected school districts from funding reductions due to tax rate changes, replacing it with a one-year protection. The bill is set to take effect on July 1, 2025, and aims to create a more flexible and responsive public education funding system in Utah.

Agriculture and Natural Resources, Education

https://le.utah.gov/~2025/bills/static/SB0321.html