On Wednesday, the Utah Legislature passed a budget bill for public education that reduces revenue by 12-15%.  With 11,000 new students enrolling in Utah’s public schools, the only way to accommodate this huge cut is to reduce class offerings and increase class size, both of which directly affect the academic success of Utah students and ultimately Utah’s economy.  Legislators have until March 11th to increase funding for HB 1, the public education budget bill, making the decision to invest in Utah’s children.

Is the budget crisis an unavoidable consequence of the economic downturn?  Let’s take a look at some recent revenue changes…

Fact Sheet: Changes to Utah's Individual Income Tax

Fact Sheet: Changes to Utah's Individual Income Tax

This 2008 fact sheet prepared by the Office of Legislative Research and General Counsel states:

 
“The Utah Legislature has cut taxes by nearly $400 million during the last two years, including significant cuts and changes to the state income tax [remember income tax is dedicated to public education]…”            

 ”The Legislature continues to reduce the rates of state and local sales tax as part of tax reform.”
 

 

 

 

 

Estimated Tax Cuts by 2007 Legislature

Estimated Tax Cuts by 2007 Legislature

 A research report written by the Utah Tax Commission states:

 ”…the Governor, the Senate, the House of Representatives, and special interest groups [special interest groups????]…passed the largest tax cut in the history of Utah.”

 

 

Research reports commissioned by Utahns for Public Schools find that systemic, if not systematic, changes have occurred in the past decade that, if reversed, would bring more than a $1 billion in revenue back into Public Education. 

Tax Policy Changes Cost to Public Education over $1 Billion Per Year

Tax Policy Changes Cost to Public Education over $1 Billion Per Year

Based on the School Funding and Tax Policy Series 2010

Funding at Risk Policy Recomendations

Diverting Education Funds from K-12 Public Education

School Funding and Tax Policy Series Report I

Poliferation of Sales Tax Eemptions and Corporate Property Tax Breaks

School Funding and Tax Policy Series Report II

Cuts to Minimum Program Property Tax Rates

School Funding and Tax Policy Series Report III

Income Tax Breaks to the Wealthy

School Funding and Tax Policy Series Report IV
 

Utahns for Public Schools recommends that the Legislature reconsider its actions of the last decade and once again conclude that Public Education should be its top long-term economic development priority. 

The Salt Lake Chamber of Commerce understands the importance of public education on the economy.  The Chamber said that education is the key to Utah’s economic future.  The Chamber stated: “In a challenging year for the state budget, the business community calls upon the State Legislature to fully fund both public and higher education–holding them harmless as cuts are administered to other programs and funding for enrollment growth.”  Watch their video, Building a First Class Workforce.

 
Utahns for Public Schools believes that it’s imperative that we have a tax system that is fair, equitable, broad-based, stable, and in sync with our economy, along with a school funding system that meets the needs of our children, ensuring adequate class sizes and quality educational opportunities for all students.  The revenues invested in public schools are an investment in our state’s future.  Public education should be funded at a level that meets the educational needs of Utah’s children, which will help to ensure the state’s economic future.