While votes for Amendment A and D won’t count, Utah voters still get to decide on amendments B and C. Like A, Amendment B also deals with education funding and asks, “Shall the Utah Constitution be amended to increase the limit on the annual distributions from the State School Fund to public schools from 4% to 5% of the fund?”
If you’re curious what that means, here’s a quick bit of context and explanation.
When Utah became a state in 1896, the federal government gave it trust lands to support certain public institutions. Revenue generated from activity on that land, like leasing and developing it, is put into permanent endowments, invested and then distributed to beneficiaries.
While multiple institutions benefit from the lands, most of the money goes to public education. Every public school receives money from the Permanent State School Fund annually. School Community Councils, made up of parents and educators, then decide how to use the money.
Currently, the state constitution says only up to 4% of the State School Fund can be distributed each year. If approved, Amendment B would raise the cap to 5%.
Kim Christy, director of the Utah Land Trusts Protection and Advocacy Office, said the school fund has seen strong growth over the past 30 years, going from $50 million to $3.3 billion. The goal of the fund, he said, is to benefit current and future Utah students.
“Right now, the administration has recognized that the cap is actually tilting in favor of future generations.”
In other words, the fund has seen more growth than expected but current students aren’t getting their fair share of those benefits. To create balance, Christy said the recommendation is to raise the cap, “which we believe will create better equilibrium for both future and current generation of students.”
According to his office, if the increased cap were in place today, Utah schools would have received $120 million this school year instead of $106 million. Unlike other public education funds, this is not taxpayer money.
“Bottom line: this will help public education at no cost to taxpayers,” Christy said.
Amendment A also dealt with education funding but it received pushback from education groups. Amendment B doesn’t have any vocal critics and is supported by the Utah PTA, the Utah Taxpayers Association, the State Board of Education, the Utah School Boards Association, the Utah School Superintendents Association, the Utah Rural Schools Association and Utah Treasurer Marlo Oaks. State lawmakers also unanimously approved putting it on the ballot.
Oaks, who is also board chair of the School and Institutional Trust Funds Office, said the amendment would give more flexibility in raising the ceiling but wouldn’t require an increased payout. The trust funds office noted that a 5% cap is pretty common compared to other endowments, such as for foundations or universities.
In a statement, Utah PTA President Corey Fairholm said, “not only does Amendment B mean more money for Utah students, these funds support teachers, and involve parents in determining how School LAND Trust Funds are used at their child’s school.”
