Utah education board allocates $35M to replace lost school fees revenue

In a pivotal discussion during the recent Utah government meeting on May 24, 2025, officials outlined significant financial updates impacting school funding across the state. A key highlight was the allocation of $35.5 million aimed at replacing lost school fees revenue due to new legislative changes. This funding, derived from House Bill 450, specifically targets charter and district schools operating as of the 2020 session, with a focus on grades 7 through 12.

For schools serving younger students, particularly K-6 charter schools, the financial implications are notable. While they will not receive direct funding from this allocation, they will benefit from a portion of the overall $35.5 million, receiving 50% in fiscal year 2026, 30% in 2027, and 20% in 2028. This unrestricted revenue is intended to help schools recover from the loss of general student fees that have been affected by new fee regulations.

Additionally, the meeting addressed the establishment of new programs, including the First Credential and Catalyst Center programs, with rulemaking currently in progress. The Utah State Board of Education (USBE) is actively seeking a director for the Catalyst Center, set to begin operations on July 1, 2025.

Another noteworthy initiative discussed was the Rural School Athletics Facilities Grant, which has been allocated $4.4 million in one-time funding. Schools can apply for grants of up to $500,000 each, with rulemaking for this program expected to commence in June.

As these programs and funding allocations take shape, they promise to significantly impact the financial landscape for Utah schools, particularly in addressing the challenges posed by recent legislative changes.