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Senate adopts third substitute to phase out county capital‑outlay equalization and give short‑term relief
Summary
The Senate passed third substitute Senate Bill 175 to phase out certain county‑level school capital‑outlay equalization and provide temporary flexibility and limited borrowing authority for distressed districts, with the sponsor emphasizing protections for Jordan School District and a phased approach to avoid harm to current recipients.
Senators approved third substitute Senate Bill 175 after the sponsor, Senator McAdams, described a negotiated package combining a phased phase‑out of county capital‑outlay equalization and short‑term relief options for distressed school districts. The goal, McAdams said, is to give districts like Jordan School District tools to manage immediate capital needs while transitioning to a different equalization model over several years.
The bill allows receiving districts to phase out of equalization without immediate financial pain and gives the Legislature and local boards time to craft a statewide equalization approach. It also authorizes a limited borrowing option allowing districts to use capital outlay accounts for constrained general fund needs under tight conditions, a provision intended to provide flexibility during the economic downturn.
Supporters argued the measure protects students and provides urgent flexibility; opponents raised concerns about long‑term fairness and representation on advisory bodies. Senator Stevenson and others praised the mediator role played in crafting the third substitute. The Senate passed the bill under suspension of the rules by roll call and transmitted it to the House for their action.
