Gov. Spencer Cox supports November ballot question on tax cuts; will sign bill targeting Salt Lake County DA | News | Salt Lake City Weekly

Gov. Spencer Cox supports November ballot question on tax cuts; will sign bill targeting Salt Lake County DA 

Doing the Math

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click to enlarge Gov. Spencer Cox takes questions from reporters at PBS Utah on Thursday, March 21, 2024. - TRENT NELSON | POOL PHOTO
  • Trent Nelson | Pool Photo
  • Gov. Spencer Cox takes questions from reporters at PBS Utah on Thursday, March 21, 2024.

Lawmakers have previously weakened the income tax earmark by adding higher education and, more recently, services for children and the disabled as permitted uses of the state's Education Fund. But a question on the November ballot would do away with the earmark entirely, if approved by voters, opening income tax collections to any area of government spending in exchange for eliminating the state's portion of food taxes.

Speaking at his monthly televised press conference at PBS Utah, Cox suggested that ending the earmark would have little practical effect on the funding levels for public education, while cash-strapped families stand to benefit from lower prices on groceries.

"This is a tax [cut] that will help people, especially those on the margins who struggle," Cox said. "[Lawmakers] have found a way around the earmark every single year that I’ve been involved in the legislative process, and that will continue."

Lawmakers have worked for years to repeal the income tax earmark, arguing that it ties the hands of the budget process by segregating state funds into separate pots. The income tax-fed Education Fund has also tended to generate a higher surplus than the sales tax-based General Fund in recent years, though legislative leaders note that volatility between the two funds can lead to a "structural imbalance" as spending needs are prioritized year-to-year.

The tension between the two revenue sources led to a failed attempt at tax reform in 2019, as lawmakers attempted to broaden sales tax collections to include services like hair-styling and landscaping while cutting the overall sales tax rate. A panel of legislators toured the state in an effort to sell those plans to the public, only to face a wave of backlash and leading to a hasty repeal in order to avoid a likely ballot referendum in 2020.

But one piece of that reform effort—the removal of state sales tax on food—was broadly popular, and proponents have continued to push for that change. That led to legislation combining food taxes and Education Fund spending into a single ballot question that will appear before voters this fall.

Last week, the Utah Education Association (UEA) announced its opposition to November's constitutional amendment. The teacher's union had previously taken a position of neutrality on the question, but UEA President Renée Pinkney said in a prepared statement that the association's Board of Directors had voted unanimously against removal of the income tax earmark.

"This decision was not taken lightly," Pinkney wrote. "The UEA Board of Directors believes the proposed amendment goes against our values and challenges what we stand for."

Pinkney noted that education funding levels in Utah are already insufficient—the state ranks at or near the bottom of the nation in per-pupil spending, depending on the measurement used—and she criticized the creation of a $90 million private school voucher program over the last two years, money that otherwise would have gone to support public schools.

"We have yet to realize a fully funded public education system," Pinkney said. "The UEA has been protecting the promise of public education for over 150 years, and we don't intend to compromise our values now."

After the UEA announced its opposition, Salt Lake City Democrat Rep. Angela Romero, the House Minority leader, said she supported the union's decision and that removing the income tax earmark contradicts the "crucial need" to invest in public schools.

“If SJR10 is implemented, it would authorize the legislature to redirect funds away from public schools," she said. "As an elected official, one of my top priorities is to ensure that all children have access to high-quality education."

Cox also said that he intends to sign controversial legislation that places new reporting requirement on the district attorney of Salt Lake County—and only Salt Lake County—including the tracking of all office work in 15-minute increments and creating a process for Cox to recommend a replacement prosecutor.

Critics of the bill accused Republican lawmakers of unfairly targeting District Attorney Sim Gill, an elected Democrat. But Cox suggested that lawmakers had legitimate concerns with how Gill runs the DA's office, particularly in light of the millions of dollars recently approved to redevelop the State Fairpark area and to establish a downtown "revitalization zone."

"We have more investment going into Salt Lake City than at any time in our state’s history," Cox said. "I think it’s fair for them to want to receive information about decisions that are being made and why decisions are being made."

Asked about the potential for appointing a replacement county prosecutor, Cox said he would only pursue such action under egregious circumstances and not over partisan disagreements.

"I believe elections have consequences," Cox said. "So just because I disagree or don’t like what someone else is doing, that’s not grounds for a replacement. That would only be used in the case of corruption or something that is more than just political."

Thursday evening is the deadline for Cox to sign or veto legislation passed during the 2024 session. He said the sheer volume of bills this year—nearly 600, a new record—has made review of bills a challenge and that some vetoes are likely, though he tried to work out his concerns with sponsoring lawmakers whenever possible.

"I work really hard to make those better bills," he said. "The more you veto, the more likely you are to get overridden."

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About The Author

Benjamin Wood

Benjamin Wood

Bio:
Lifelong Utahn Benjamin Wood has worn the mantle of City Weekly's news editor since 2021. He studied journalism at Utah State University and previously wrote for The Salt Lake Tribune, the Deseret News and Entertainment Weekly

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