State board asks governor to veto two bills; members debate tax and rulemaking changes

The Utah State Board of Education on Monday voted to request that the governor veto two bills it said would harm the board’s authority or state education financing.

The board voted to ask for a veto of S.B. 37, “Minimum Basic Tax Rate Amendments,” by motion of Member Riel; the motion passed with a tally reported as 9 in favor, 2 abstaining and 3 opposed. The board later voted to request a veto of S.B. 268 (sub. 2), “Rules Review and General Oversight Committee Amendments,” on a motion by Member Kelly; that motion passed 12–2.

Why it matters: board members raised two distinct concerns. Several members described S.B. 37 as a finance change that could move large amounts of income-tax-related revenue into the general fund rather than education funding. On S.B. 268, members said the measure would give the legislature ongoing oversight that could undercut the board’s rulemaking process and deny the board and the public the due process available through administrative rulemaking.

Details, votes and debate:

- S.B. 37 (minimum basic tax rate amendments): Member Riel, who urged the board to seek a veto, described the bill’s mechanics as alarming: “It's money laundering,” she said, citing public testimony reported to the board. Dale Frost, the board’s minimum school program administrator, summarized the fiscal note for members: “the fiscal note says $842,000,000,” and he said the change could shift hundreds of millions to a billion dollars over a multi-year period as income-tax growth is backfilled. The motion to request a governor veto of S.B. 37 passed, 9 in favor, 2 abstained (Members Davis and Earl) and 3 opposed (members identified in the meeting as voting no).

- S.B. 268 (rules review and general oversight committee amendments, sub. 2): Several members described the proposal as creating a standing oversight mechanism that could allow the legislature to intervene in board rulemaking at any time rather than using the established administrative-rules process. Superintendent Randy Dixon and board leadership said they had met with sponsor Senator McKay and discussed how the sponsor viewed the process; members nonetheless voiced concern the language singled out the state board while excluding executive agencies. The board then passed a motion requesting the governor veto S.B. 268 (sub. 2) if necessary; that motion passed 12–2, with members Brenton and Himas recorded in opposition.

Board directions and next steps: board leadership and staff said they will coordinate communications with the governor’s office on the veto requests and will share detailed concerns and operational impacts—particularly how bills would affect teachers and local education agencies—so executive staff have context before signing or vetoing. Staff also said they would continue outreach to bill sponsors to seek negotiated fixes where possible.

The actions reported in the meeting were formal board motions and recorded votes; staff noted the legislature could still act before the governor signs or vetoes bills and stressed the importance of continuing coordination while the session concludes.