HB 428 makes targeted changes to Utah’s school property tax and public education funding framework. It revises the definition and certification process for the minimum basic tax rate imposed by school districts, requiring that rate to be certified by consensus among the State Tax Commission, the Governor’s Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst. The bill also updates related calculations for the basic school program and preserves the requirement that local school boards impose the combined basic rate to qualify for state support.
The bill also expands the uses of the Public Education Economic Stabilization Restricted Account. In addition to existing uses for one-time public education appropriations, the account may now be used to cover shortfalls in the Minimum School Program when income tax and Uniform School Fund revenues are insufficient, and specifically to fund the minimum basic local amount if the minimum basic tax rate does not generate enough revenue. The bill includes technical changes and takes effect May 7, 2025.
Impact
HB 428 amends Utah Code Sections 53F-2-301 and 53F-9-204, affecting how school district property tax rates are set and how public education stabilization funds may be deployed. It does not appropriate new money, but it changes the statutory mechanism for certifying school tax rates and authorizes a broader backstop use of the Public Education Economic Stabilization Restricted Account to support the basic school program when property tax revenue is insufficient.
Sentiment
The bill appears to have been received very positively and moved through the Legislature without recorded opposition. It received unanimous favorable votes in House committee, passed the House 73-0, received a favorable recommendation in Senate committee, and passed the Senate 24-0. The voting history suggests broad bipartisan support for the bill’s education funding and property tax adjustments.
Contention
No major contention is reflected in the available committee or floor history, and there are no transcript excerpts indicating debate. The main policy issue implicit in the bill is the balance between local property tax revenue, state education funding obligations, and the use of stabilization reserves to cover shortfalls. Any potential concern would likely center on the expanded authority to use reserve funds for ongoing school funding gaps and the new consensus-based certification process for tax rates, but no organized opposition is shown in the record provided.