Utah’s constitution says income tax money can only go toward public and higher education. As lawmakers look for ways to create more flexibility in the budgeting process, they are exploring adding other state programs to that constitutional earmark.
Sen. Dan McCay, R-Riverton, is exploring a possible constitutional amendment to shift some funding for several programs that primarily benefit Utah’s low-income schoolchildren into the money provided by that constitutional earmark. Those programs could include the Children’s Health Insurance Program (CHIP), free school lunches and others.
“If you walk into any Title One school in the state, you recognize that may be the only healthcare they’re seen for or the only meal they’re getting. A lot of times they’re getting those things through the education system,” says McCay. “In a lot of ways, this is just an acknowledgment of the reality of where we’re at as a society in providing for our children.”
Lawmakers had discussed a possible constitutional amendment to eliminate the educational funding set aside, but that idea is going nowhere this year following the collapse of the tax reform effort. Legislative leaders have told UtahPolicy.com that it’s wise to back off changes to the source of education funding and possibly have that discussion another day.
But, adding programs to the earmark may be an easier discussion for lawmakers, especially since it potentially shifts some programs away from the general fund, freeing up money for other purposes.
McCay says he’s still investigating whether his idea can become a viable part of the state funding process but he recognizes changing how tax revenue is spent is a touchy topic.
“We still have a budget to set. We still have obligations to meet at the state level. If the people want us to get more creative in how we’re going to do tax policy, then we have to look at everything,” he says.
Since the funding earmark is spelled out in the Utah Constitution, it could require lawmakers to pass a constitutional amendment that would need to be approved by voters. But, McCay thinks there’s a possibility that lawmakers have the ability to shift some of those costs without altering the state constitution. McCay says the idea could free up a significant amount of funding in the general fund, allowing lawmakers to spend it on transportation or infrastructure.
But, lawmakers may not be in the mood to mess with education funding following the repeal of tax reform.
“Is this the right time to be talking about this? We weren’t elected to take time off when it’s time to do hard things,” said McCay.
