School Finance Amendments, the official text

School Finance Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: Matt MacPherson

LONG TITLE
General Description:
This bill changes the flexible allocation to teacher and classroom salary support.
Highlighted Provisions:
This bill: changes the flexible allocation to teacher and classroom salary support; and
makes technical changes.

Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS:
53F-2-208, as last amended by Laws of Utah 2025, Chapters 6, 165
53F-2-421, as last amended by Laws of Utah 2025, Chapter 165

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53F-2-208 is amended to read:
53F-2-208. Cost of adjustments for growth and inflation.
(1) In accordance with Subsection (5), the Legislature shall annually determine: (a) the estimated state cost of adjusting for inflation in the next fiscal year, based on a rolling five-year average ending in the current fiscal year, ongoing state tax fund appropriations to the following programs: (i) education for youth in care, described in Section 53E-3-503;
(ii) concurrent enrollment courses for accelerated foreign language students described in Section 53E-10-307;
(iii) the Basic Program, described in Part 3, Basic Program (Weighted Pupil Units);
(iv) the Adult Education Program, described in Section 53F-2-401;
(v) state support of pupil transportation, described in Section 53F-2-402;
(vi) the Enhancement for Accelerated Students Program, described in Section 53F-2-408;
(vii) the Concurrent Enrollment Program, described in Section 53F-2-409;
(viii) the juvenile gang and other violent crime prevention and intervention program, described in Section 53F-2-410;
(ix) the [flexible allocation] teacher and classroom salary support, described in Section 53F-2-421; and
(x) dual language immersion, described in Section 53F-2-502; and

(b) the estimated state cost of adjusting for enrollment growth, in the next fiscal year, the current fiscal year's ongoing state tax fund appropriations to the following programs: (i) a program described in Subsection (1)(a);
(ii) educator salary adjustments, described in Section 53F-2-405;
(iii) the Salary Supplement for Highly Needed Educators Program, described in Section 53F-2-504;
(iv) the Voted and Board Local Levy Guarantee programs, described in Section 53F-2-601; and
(v) charter school local replacement funding, described in Section 53F-2-702.

(2) The state board shall provide all information necessary to calculate adjustments described in Subsection (1) to the Office of the Legislative Fiscal Analyst no later than October 15 of each year.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state board shall make rules to ensure compliance with Subsection (2), including: (a) establishing the necessary information from the LEA, including: (i) fall student enrollment counts;
(ii) the number of educators the LEA employs; and
(iii) other information as the Utah Code identifies for each program described in Subsection (1); and

(b) requiring a deadline for an LEA to provide the information necessary for the state board to comply with Subsection (2).

(4) If an LEA does not meet the deadline or provide the required information described in Subsection (3), the state board may not use the LEA's information to calculate growth as described in Subsection (1)(b).
(5) (a) In or before December each year, the Executive Appropriations Committee shall determine: (i) the cost of the inflation adjustment described in Subsection (1)(a); and
(ii) the cost of the enrollment growth adjustment described in Subsection (1)(b).

(b) The Executive Appropriations Committee shall make the determinations described in Subsection (5)(a) based on recommendations developed by the Office of the Legislative Fiscal Analyst, in consultation with the state board and the Governor's Office of Planning and Budget.

(6) Beginning in the 2026 fiscal year, if the Executive Appropriations Committee includes in the public education base budget or the final public education budget an increase in the value of the WPU in excess of the amounts described in Subsection (1)(a), the Executive Appropriations Committee shall also include an appropriation to the Local Levy Growth Account established in Section 53F-9-305 in an amount equivalent to at least 0.5% of the total amount appropriated for WPUs in the relevant budget.

Section 2. Section 53F-2-421 is amended to read:
53F-2-421. Teacher and classroom salary support.
Subject to appropriations in accordance with Section 53F-2-208, the state board shall distribute funds in the MSP [flexible allocation] teacher and classroom salary support on a WPU basis resulting in LEAs receiving funding proportional to the number of WPUs the LEA generates under the Basic School Program[.] to support compensation for classroom teachers and other aides and paraprofessionals who support classroom instruction.

Section 3. Effective Date.
This bill takes effect on July 1, 2026.

3-11-26 11:49 AM