Spending

Where it comes from / Your Taxes

Almost all of the funding for Utah's K-12 education system comes from state and local taxes.  In fact, 100% of state income taxes must go towards K-12 and higher education.  And 56% of property taxes on average went towards K-12 education in 2007 (The percent varies from city to city).

1. State Income Taxes
$2 billion | 55% of total funding

As mandated by the Utah State Constitution, 100% of state income taxes (both individual and corporate) must go towards K-12 and higher education.   In the 2006-07 school year, state income taxes accounted for 55% of the funding for K-12 public education. 

2. Property Taxes
$2 billion | 29% of total funding

56% of property taxes went directly to local public school districts in 2008.  In the 2006-07 school year, property taxes accounted for 29% of the funding for K-12 public education.  The property taxes that go towards public education are set by the State Legislature and local school districts.

• 2008 Utah Taxpayers Property Tax Report>> Learn more about property taxes in Utah. Link opens a PDF.

3. Federal Taxes
$310 million | 9% of total funding

Federal taxes funded 9% of the total dollars spent on Utah's K-12 education system in the 2006-07 school year. Given the complexity of the federal tax system, it would be impossible to identify which specific federal taxes go towards Utah’s K-12 public education system.

4. State Sales Taxes
$7.7 million | 0.2% of total funding

Only $7.7 million of state sales taxes went towards K-12 public education in Utah.  Most of the revenue from state sales taxes is used for other state expenses besides K-12 education.

5. State Liquor Profits
$22 million | 1% of total funding

100% of state liquor profits go towards K-12 public education.  In the 2006-07 school year, state liquor profits accounted for 1% of the funding for K-12 public education.

6. School LAND Trust Fund
$15 million | 0.4% of total funding

Utah has 3.3 million acres of land that produce revenue.  The interest from this revenue goes directly to public schools where school community councils decide how to spend the money.  In the 2006-07 school year,the School LAND Trust Fund accounted for only 0.4% of the funding for K-12 public education.

7. Other Local Sources
$255 million | 6% of total funding

Other local sources funded 6% of the total dollars spent on Utah's K-12 education system in the 2006-07 school year.  Other local sources consist of donations, interest on school district funding reserves, etc.

Utah's Tax Burden

Utah’s total tax and fee burden as a percent of personal income increased from 5.76% in FY2005 (revised) to 16.08% in FY2006. Utah’s ranking, however, improved from 5th highest to 8th highest. Excluding fees, Utah’s tax burden at 11.34% of personal income ranks 20th and is just slightly above the national average of 11.24%. When all state and local government revenue is included, Utah ranks 11th highest.

• Learn more about Utah's tax burden>>  link opens a PDF

SOURCES

1. Utah School District Comparison 2006-07 by the Utah Taxpayers Association based on data from the Utah State Office of Education, School Finance & Statistics, Financial Reports
2. Utah's Tax Burden Increases but Ranking Improves by the Utah Taxpayers Association, published June 2008.