Utah school districts are proposing new tax hikes, or have already approved them, while collectively holding easily more than a billion dollars in investment accounts—an apparent dichotomy which may raise questions about the need for upping taxes.
“You’re not being asked to cut classrooms or hurt students,” said one presenter at an Alpine School District tax hearing. “You’re being asked to prioritize and live within your means.”
Among the districts holding “truth in taxation hearings” this week were Alpine – which will soon split – Tooele County and Granite School Districts.
MORE | Utah Schools’ Investments Funds:
School districts in Utah keep money in the “Public Treasurers Investment Fund,” otherwise known as “PTIF,” and large balances have drawn attention from some state lawmakers.
“The Office of State Treasurer has the tools and expertise to optimize investment returns (in PTIF) and manage risk,” according to the state treasurer’s website.
Earlier this year, a series of 2News reports delved into money districts have on the books. At the time, Utah State Auditor Tina Cannon said she identified a total of more than $4.5 billion in PTIF money held by Utah districts.
Not all of them are seeking tax hikes, but some that are have significant investment fund money.
Granite, at the end of last December, had nearly $500 million in the fund.
At its tax hearing, Granite said the district tax hike—-roughly $105 a year on a $565,000 home—-is to “cover the deficit from the state (Legislature) to maintain services to the degree possible, to pay for class size reduction and additional instructional supports in our schools.”
A teacher, who supported the tax hike, praised the board and administration, while wondering aloud if the district could go “bankrupt” for lack of funding.
A woman, citing student performance results in the district, told board members, “You don’t deserve the money you want, and you don’t deserve the money you’ve got.”
Across the state, tax hearings are not over. The Davis School District has one scheduled August 19th for a yearly tax hike of close to $100 on a $600,000 home.
Davis, at the end of 2024, had nearly $420 million in its investment fund.
Amid clear opposition to tax hikes, there are voices of support.
“I hope all of you will vote yes for this tax increase,” a man told Alpine board members. “Nobody like a tax increase, but you’re going to help us immensely in the new districts to lessen the impact that we’ll have on future tax increases.”
