Utah school districts turn to property tax increases to fund teacher pay amid wage competition
Several Utah school districts are seeking higher property tax levies this year as they try to keep up with rising demands for employee compensation. In total, 14 districts are asking voters to authorize more local funding, with at least six citing changing pay scales as a key factor.
Box Elder School District is asking for more than $11 million in additional annual property tax revenue, which would push the district’s tax rate up by nearly 25%. Superintendent Steve Carlsen said the district needs the extra money to compete with nearby districts that offer higher pay, observing that losing teachers to better-paying opportunities has hampered their schools.
“We do not like the fact that we’re placing, you know, more burden upon our taxpayers, especially our homeowners,” Carlsen said. “We just felt like we needed to do it to keep Box Elder in a competitive market for great teachers because great teachers, as we know, help kids be successful.”
Utah’s public schools are funded through a mix of federal, state and local funds. State funding is allocated to schools based on enrollment, while each district’s board determines how much revenue to raise from property taxes. Because Box Elder has fewer students, it receives less state support than urban districts. Box Elder County’s rural character and fewer businesses mean property tax revenue plays a larger role in funding schools, and space has been left for competition by higher-paying districts in other areas. Carlsen noted that his district has seen faculty and staff leave for better offers in recent years.
“The only way we can solve it right now is to go to our folks and try to be as kind as we can, yet do what we need to do, hopefully, to help our employees,” he said.
Tax revenue is commonly seen as one of the few viable options to address this funding gap, according to Billy Hesterman, president of the Utah Taxpayers Association. Rural districts face particular challenges, he added.
“We do have a problem that students in our state, some portion of their education, the quality of it is being determined by where they live instead of by, you know, how good they do and how good of a teacher we can hire,” Hesterman said.
Even urban districts are feeling the pressure. Provo City School District is pursuing a 5.47% property tax increase. The district’s website notes that neighboring districts can offer higher pay to new teachers, and the pay gap grows with length of service. Provo plans to use the extra revenue to improve retention of top teachers, making the case that funding must reflect market realities to preserve instructional quality.
“We’re now having a, maybe, correction in the market of people saying ‘This is how much I’m willing to work for to be a teacher,’ and the taxpayers are having to cover it,” Hesterman said.
Hesterman emphasized a long-term goal of equalizing funding differences to ensure a consistent standard of education across the state. He said lawmakers and policymakers should work toward leveling the playing field, while districts like Box Elder prepare to raise tax revenue to keep pace with the rest of the state.
Summary
– Fourteen Utah districts are seeking higher property taxes this year to fund teacher pay amid competitive market pressures.
– Box Elder District seeks more than $11 million annually, increasing the local tax rate by about 25%.
– Provo City District is proposing a 5.47% tax increase to retain high-quality teachers.
– Utah’s funding mix (federal, state, local) and disparities between rural and urban districts drive the push for local tax revenue.
– Advocates call for policy reforms to equalize funding across districts while acknowledging the burden on homeowners.
Additional comments
– This development highlights the ongoing debate over how best to fund education in Utah—balancing fair pay for teachers with the financial realities for taxpayers, especially in rural areas. The situation may spur policy discussions on funding formulas, potentially leading to reforms aimed at reducing regional disparities without overburdening property owners.
Logical outlook
– If funding disparities persist, more districts may pursue local tax measures, reinforcing the need for a holistic review of Utah’s education-finance framework. Strategic reform could help align pay scales with job market realities while protecting homeowners from steep year-over-year tax increases. A constructive path would involve bipartisan collaboration to create a sustainable funding model that supports teacher recruitment and retention statewide.