Veto: Gov. Cox rejects bill that would alter how property taxes fund state’s K-12 education. Here’s how others reacted

Gov. Spencer Cox pulled out his veto stamp Monday, rejecting a bill that would alter the way property taxes are managed to fund Utah K-12 schools.

Currently, local property taxes go directly to fund school districts — which are then, if needed, supplemented by the state to meet minimum funding standards for each student.

Senate Bill 37 would require school districts collecting revenue through local property taxes to remit those funds to the state rather than keeping them locally. The state would then be tasked to distribute the money to school districts to ensure adequate student funding.

It’s designed to centralize handling of funds and, in the words of the bill’s sponsor, Sen. Lincoln Fillmore, R-South Jordan, to function as a state budgeting tool “so that we are treating all school districts equally.”

In a letter addressed to lawmakers explaining the veto, Cox wrote that nothing “is more critical or sacred” than the government’s handling of taxpayer dollars.

“After receiving veto requests from the State Auditor, State Board of Education, the Utah School Boards Association, and the Utah School Superintendents Association, I have decided to veto Senate Bill 37,” he wrote.

The governor added that SB37 calls for fundamental changes in how the state portion of property tax revenues for schools are collected and distributed.

“Right now, Utahns are correctly told by their government that their local property tax dollars are going to fund their local schools. That arrangement is spelled out specifically in our annual property tax notices, and it’s a promise we’ve honored for decades.

“SB37 represents a clear departure from this practice by moving those dollars into the state’s general fund, with income tax revenues replacing them before they go back out to districts.”

At a minimum, Cox wrote, such accounting creates a “perception problem” with the loss of a direct connection between taxpayers and their neighborhood schools.

But the change, he added, presents more than perception challenges.

“Moving restricted property tax funding into the general fund creates significant technical and legal questions. For one, it’s not entirely clear whether these property tax dollars, once they land in the general fund, still carry the restrictions that have always protected them for education use.

“Without that clarity, future legislatures could easily redirect those funds to other priorities and away from Utah schoolchildren. I oppose that change.”

The governor also wrote that he was concerned about “the sheer number of bills introduced and passed each session — including education bills.”

Lawmakers can ultimately decide SB37’s fate

Now the proverbial ball that is SB37 is back in the Legislature’s court.

To override Cox’s veto, a two-thirds majority vote would be required in both the Utah House and Senate.

Time will tell if lawmakers favoring SB37 have the votes needed to override the governor.

During the 2025 legislative session, the bill passed through the House with 41 “yeas” and 27 “nays.” The final Senate vote was 20-8.

Senate President Stuart Adams said he plans to discuss the veto with lawmakers over the next couple of weeks before deciding how to proceed.

“Vetoes are part of the legislative process. However, I respectfully disagree with the decision to veto SB37, which establishes a framework to provide a more fair funding structure, ensuring that every school district is treated equally in terms of state funding,” Adams said in a statement.

“The bill does not cut education funding; rather, it stabilizes the funding system, ultimately providing better support for all of Utah’s students.”

Adams added he and his colleagues are committed to ensuring Utah’s education system is well-funded, well-managed and well-positioned for the future.

“We look forward to engaging in further discussions with the governor and all stakeholders as we continue to build on Utah’s legacy of educational excellence. I appreciate the governor’s commitment to working together to ensure Utah’s continued success for generations to come.”

Support for Cox’s veto

In a statement released following the governor’s veto, the Utah State Board of Education said the “value of public education funding” was reaffirmed by Monday’s executive action:

“The Board voted to formally request Governor Cox to veto SB37, — which would alter the flow of property tax revenue and change the way Utah schools are funded — during its March board meeting. We are grateful that the governor has chosen to stand alongside USBE and uphold Utah’s commitment to strong public education and local control.

“The Board will continue to partner with the legislature and the governor’s office to open doors of opportunity for all Utah children.”

Meanwhile, the state’s largest public education employee’s union, the Utah Education Association, saluted Cox’s actions:

“The Utah Education Association applauds Governor Spencer Cox’s decision to veto SB37. This bill would have redirected public education funds away from Utah’s public schools and weakened local control. Utah must preserve education funds for their intended purpose: supporting the success of Utah’s public school students.”