House adopts education stabilization fund with amendment to set 2% reserve

Salt Lake City — The Utah House on the floor passed House Bill 3 78 on a vote of 41–18 after adopting a floor amendment to change a surplus-reserve trigger from 4% to 2%.

Sponsor Representative Melvin R. Brown told the chamber HB 3 78 would create an education stabilization fund to help guarantee the value of the weighted pupil unit, a funding metric used to allocate state education dollars. Brown said the fund would capture surpluses in years when revenues exceed budget limits, after the legislature’s existing rainy day fund thresholds are met, and make monies available in shortfall years so school districts need not repeatedly cut programs.

Representative Oskarsen offered a floor amendment to reduce proposed set-aside percentages from 4% to 2%, saying 2% would generate roughly $16 million and be sufficient to cover likely shortfalls. Brown accepted the amendment as friendly; proponents argued it would provide predictability so school districts could plan multi‑year budgets.

Opponents questioned whether creating a separate stabilization mechanism duplicated the existing rainy day fund and raised concerns about long‑term fiscal complexity. Critics said the state had previously managed budget shortfalls without a separate education-only fund and warned about rigid earmarking of revenues.

The House adopted the amendment and passed the amended bill 41–18. The measure will be sent to the Senate for further consideration.

The next procedural step is transmittal to the Senate; no implementation date or appropriation schedule was specified on the House floor.