Finance committee approves use of FY2025 carryforward; board reallocates funds for USDB, operational contingencies and other items

The State Board of Education’s finance report approved the use of fiscal year 2025 carryforward balances for use in FY2026 and took several allocation votes across carryforward and discretionary funding.

Deborah Jacobson, assistant superintendent of operations, told the board the agency closed FY2025 with “close to $500,000,000 in carry forward this year. That’s about 7%,” and that roughly $35,000,000 of that figure requires board approval for specific spending plans. Jacobson said $7,200,000 was identified in closing as candidates to return to the Legislature or to be reallocated after further review.

On formal votes, the board approved using the FY2025 carryforward balances for use in FY2026 (unanimous vote). The board also approved several repurposing motions and discretionary allocations during the same meeting.

Key allocations and procedural outcomes included:

- Utah Schools for the Deaf and Blind (USDB): The board approved repurposing $1,600,000 from FY2025 carryforward balances to address a budget deficit at USDB, and establishing a $3,000,000 contingency for USDB for the current year. Member Booth moved the measure; the motion passed 14–1 with Member Longacre opposed. Staff said the contingency is intended to keep USDB operational while longer-term budget solutions are developed and that any unused contingency funds would be returned to carryforward for reallocation.

- Attendance campaign: Member Kelly moved to repurpose $150,000 from carryforward balances to support the board’s “Everyday Counts” attendance campaign. After discussion about messaging, statutory authority and whether attendance problems stem from instruction, accountability or other causes, Member Longacre moved and the board voted to table the attendance-campaign motion until the next day; the tabling motion passed 12–3. The $150,000 allocation was therefore not adopted at the meeting.

- Contingency and legal contingency funds: The board continued a general contingency fund of $200,000 and a legal contingency fund of $250,000; members approved the motion unanimously.

- Discretionary operations: The board approved using $350,000 of state discretionary funds to support the Office of the State Superintendent ($100,000), continue on-site security guard services at the USBE office ($150,000), and establish a building operations budget for FY2026 covering replacements and repairs ($100,000). The motion passed unanimously.

- Essay contest commemorating the 250th anniversary of the Declaration of Independence: The board approved allocating $38,500 from discretionary funds for a statewide student essay contest (grades 5, 8 and high school). The final package funds 250 $100 awards, six $1,000 runner-up awards and three $2,500 top awards; the motion passed unanimously. Board members said staff and volunteers will develop a rubric and adjudication process and that more details will come back to the board.

Votes at a glance (items from the finance discussion):

- R277-407 (school fees draft 3, second and final reading): Approved unanimously. (See separate discussion in meeting record regarding waivable fees for high-school graduation credit vs. higher-education exam fees.)

- R277-494 (charter/online/home/private student participation in extracurricular activities, draft 2, second and final reading): Approved 14–1 (Member Boggess opposed).

- Box Elder School District 180-day waiver (emergency waiver to avoid making up two days after funerals for fallen officers): Motion to approve made by Member Earl; second not specified. Vote 14 in favor, 1 abstention (Member Boggess). Waiver ratified.

- R277-319 (special-educator stipends, draft 1, second and final reading): Item was postponed until after lunch on a motion that passed 8–7; later approved unanimously with two absences.

- Use of FY2025 carryforward balances for use in FY2026: Approved unanimously.

- Repurpose $150,000 for an attendance campaign: Motion to approve was made, then a motion to table the authorization until the next day passed 12–3; allocation not approved that day.

- Repurpose $1,600,000 to cover a USDB deficit and $3,000,000 contingency for USDB: Approved 14–1 (Member Longacre opposed).

- Continue contingency fund ($200,000) and legal contingency fund ($250,000): Approved unanimously.

- Approve $350,000 of discretionary funds to support superintendent office, security, and building operations: Approved unanimously.

- Approve $38,500 for a statewide 250th-anniversary essay contest (amended upward from a $32,500 proposal): Approved unanimously.

Board members pressed staff for accounting details and asked how carryforward funds interact with statutes and the budgetary procedures act. Deborah Jacobson and Scott (finance staff) said that some reassignments of carryforward money could require legislative action depending on source restrictions and that sections had identified individual spend plans; anything above $100,000 per section required board approval.

On USDB funding specifically, staff said the $1.6 million would address an existing deficit and the $3 million contingency was intended to avoid returning to the Legislature midyear; Scott said he would oversee any contingency expenditures and that staff would report those decisions back to the board.

During discussion of attendance and messaging, Benji Carrier of the attendance team described existing materials and a campaign called “Everyday Counts,” including flyers, social media posts and sample school campaign packs the board could distribute to LEAs. Board members debated whether an advertising campaign alone would address root causes of absenteeism or whether policy, accountability, or classroom engagement needed to be addressed in parallel.

The finance committee concluded by sending the approved spend plans and discretionary motions forward as board actions; staff will provide follow-up details, rubrics and implementation guidance for board-approved allocations.