Tax and Budget

Years of inadequate public investment have left Utah families struggling with many unmet needs. Our schools require better funding to hire more teachers, counselors, and nurses. We need affordable child care for both our cities and rural areas, along with affordable housing, cleaner air, and much more.

So why are our state leaders so determined to eliminate the primary source of funding for our public education system and other community services that help kids and their families?

Between 2018 to 2024, the state legislature cut the state income tax four times, from 5% to 4.55%. Our leaders act like they are doing us all a favor, reducing our income taxes by a few dozen dollars each year - but these seemingly small cuts have resulted in an annual revenue loss of over $800M. 

Now, Utah’s legislative leaders are clear about their intentions to eliminate the income tax entirely.

However extreme and unrealistic these plans might seem, don’t doubt that they will try to do it. This year’s Interim Study Items include studying alternatives to the income tax. 

The Consequences

Eliminating the income tax in Utah would further reduce funding for essential services, leading to devastating cuts affecting education, healthcare, and social services. This could mean decreased compensation for educators, fewer family resources, and longer wait times for assistance. The majority of Utahns do not want lower taxes if it means lower-quality services. Income tax cuts don’t make states more prosperous or competitive, and they don’t help families make ends meet.

Proponents of eliminating the income tax have yet to propose any viable plan to replace the enormous revenue loss that will follow. Only one state, Alaska, has ever eliminated its income tax, and it did so only after striking oil.

An Unfair Tax System

A fair tax system relies on a balanced approach, combining property tax, sales tax, and income tax to ensure stability, fairness, and responsiveness. The income tax is meant to represent the leg of fairness, ensuring that wealthy households pay their fair share. 

Eliminating the income tax does not ensure that large corporations and the wealthiest residents pay their fair share in taxes. In fact, the benefits of income tax cuts overwhelmingly benefit the wealthy. Eliminating the income tax would provide a benefit of $121,514 to the top 1% of Utahns, but only provide $121 to the lowest-income 20%. 

In recent years, wealthy corporations have enjoyed record profits, but aren’t paying their fair share in taxes. Further tax cuts mean they will pay even less. If the wealthy and corporations paid their fair share, we could expand opportunities to everyone, by investing in quality education, cleaner air, child care, and healthcare.

Utah's Values

Utahns believe in taking care of each other no matter what. But the recent years of revenue elimination have prioritized the wealthy and corporations instead. Now, over 60% of Utahns feel the state is on the wrong track, and that quality of life is worse than it was five years ago. Continuing to starve the state budget for critical public services, such as public education and highway safety, will not reverse that sentiment. 

State leaders should focus on strengthening the vital services that make sure working people, small businesses, and families have the tools to build a good life. It's time to prioritize the well-being of all Utahns over short-sighted tax cuts for the wealthy.

Our organization recognizes the importance of standing against policies that jeopardize the well-being of Utah’s children. We believe that regular community members have the right and responsibility to influence decisions about policies that affect their lives. 

The ability of everyday Utahns to influence public policy directly, through ballot initiatives, should be part of our state’s democratic process. However, the state legislature for years has passed laws that make it more difficult for members of the public to pose questions to their fellow voters statewide, by conducting ballot initiatives.  

This year, the campaign to suppress public ballot initiatives takes the form of two complementary bills, both sponsored by Rep. Jason Kyle (R-Huntsville). HJR14, “Proposal to Amend Utah Constitution - Statewide Initiatives,” would amend our state constitution so that a simple majority of Utah voters can no longer approve new or expanded funding streams for state programs. The bill increases the threshold for a winning ballot initiative from 50% to 60%, when the ballot initiative seeks to increase revenue for state programs through a new tax or by expanding an existing tax. HB284, “Initiative Amendments,”  would require a ballot initiative that increases taxes to specify where the money will come from to pay for the tax increase. 

Ballot Initiatives in Utah Are Already Nearly Impossible

Utah is already one of the most difficult states in which to conduct a public ballot initiative. Whether the ballot initiative reflects the desires of Utahns to revert to our old state flag, or to expand Medicaid coverage to more people in need, organizers face high barriers before the voting public can weigh in. 

For example. Utah law currently requires ballot initiative organizers to collect a total of 134,298 signatures, and they must meet specific signature thresholds in at least 26 out of 29 Senate districts. (between about 3,000 and 5,600 handwritten signatures per district, depending on the Senate district). 

Even when organizers manage to clear all the hurdles to get a public ballot initiative before Utah voters, the Legislature has shown that it feels no obligation to respect voters’ desires. Ballot initiatives to legalize medical cannabis, expand Medicaid coverage to more Utahsn, and to create an independent redistricting commission (to push back on legislative gerrymandering)  all successfully passed in 2018. The legislature walked back all of these efforts, either completely undoing, or mangling the implementation of, each successful initiative.  

Why Voices Opposes HJR14 & HB284

Decisions made at the state level regarding investments in education, healthcare, childcare, and other essential services have profound consequences for future generations. By adding yet more hurdles for members of the public seeking to impact state laws, HJR14 and HB284 risk undermining the public’s constitutional right to directly petition their government. 

If HJR14 is approved, the proposed amendment will appear on voter ballots this November. Utah voters will be able to decide whether to limit their own access to this incredibly important tool for democratic influence over public policies that affect us all. 

Voices for Utah Children opposes the passage of HJR14 and HB284, recognizing the importance of preserving Utahns’ right to safeguard the interests of its children through ballot initiatives. This is particularly important now, as the legislature increasingly ignores public comment, public outcry and public sentiment when introducing and passing their bills. 

Your voice matters! You can participate in the democratic process right now by weighing in on these bills, either by providing a public comment during the committee hearings or by writing your legislator to express your objections.

VIEW OUR LEGISLATIVE TRACKER TO LEARN MORE!

Representative Susan Pulsipher’s HB 153: Child Care Revisions narrowly passed the Utah State Legislature on February 28, 2024, and was signed by the Governor on March 14, 2024.

Initially proposed as a child tax credit expansion initiative, HB 153 has evolved into a more complex bill with significant implications. This FAQ aims to address questions about the passed bill and explain its key components.

 What does HB 153 do?

There are three main components to this bill:

1. Child Tax Credit Expansion: HB 153 expands Utah’s child tax credit to include 4-year-olds. Currently, children aged 1-3 are eligible if their family meets certain income criteria and has a tax liability. This expansion will make the credit available to 0.4% more families, benefiting 1.1% more children, with an average annual tax savings of $456 per eligible family.
2. Unlicensed Provider Capacity Expansion: HB 153 increases the cap on the number of unrelated children an unlicensed provider can care for from 6 to 8 (current law remains at 10 children cap if also caring for related children). With this change, Utah now ranks as the second-worst state nationally in unregulated care capacity, trailing only South Dakota.
3. New Unlicensed Provider Oversight: In response to concerns from the child care community, HB 153 introduces new requirements for unlicensed providers. They must now undergo criminal background checks through the Office of Child Care Licensing. Additionally, a new stipulation limits the number of children under 3 years old being cared for to 2. Previously, unlicensed providers operated without formal oversight or state requirements.

When will this go into effect?

Each component of the bill will go into effect at a different time:

1. Child Tax Credit Expansion: Initially introduced under HB 170 in 2023, the Child Tax Credit, applicable to children aged 1-3, cannot be claimed until families file their 2024 taxes, in 2025. For families with eligible 4-year-olds, the credit won't be claimable until they file their 2025 taxes, in 2026.
2. Unlicensed Provider Capacity Expansion: Starting May 1, 2024, unlicensed providers will be permitted to care for up to 8 unrelated children.
3. New Unlicensed Provider Oversight: Background check requirements and restrictions on the number of children under the age of 3 in care will take effect on July 1, 2024.

How will this new oversight of unlicensed providers function under HB 153?

The Office of Child Care Licensing (OCCL) within the Department of Health and Human Services already oversees residential child care licenses, which are required for providers caring for 9 or more children. OCCL also oversees the Residential Certificate program which is currently required for providers caring for 7-8 children. HB 153 now makes Residential Certification optional. 

Additionally, HB 153 essentially adds a new layer of regulated care, mandating background checks for providers caring for under 8 children who do not hold a license or certificate. Current law does not require background checks for anyone caring for under 6 children. HB 153 mandates the same level of background checks as licensed child care providers, covering all staff, volunteers, and individuals older than 12 residing in the residence.

The process and enforcement mechanisms are still unclear. The bill directs the Department of Health and Human Services to establish rules for criminal background check submission. Similar requirements exist in Idaho, but enforcement is limited to instances where an unlicensed program is reported to the state.

Stay tuned for further guidance from the Office of Child Care Licensing regarding this process.

Will this increase access to child care? Will it decrease the cost of child care?

The answer is uncertain. While the state has previously expanded unlicensed child care capacity, the lack of tracking of unlicensed child care makes it impossible to gauge effectiveness.

Regulations are often blamed for high child care costs and limited availability, but studies show no direct correlation between state regulations and child care supply levels. Utah's Office of Child Care Licensing continuously strives to make licensing as easy to obtain as possible without compromising quality and safety standards.

There's no evidence to suggest this change will alleviate the child care crisis. In fact, experts predict it may decrease available child care by incentivizing programs to downsize and forego licenses.

Is this licensing change safe?

Just as there are undoubtedly reputable unlicensed providers, incidents can occur in licensed facilities as well. However, licensed providers benefit from established systems for monitoring and support, facilitating continuous improvement. The challenge with unlicensed providers lies in the lack of oversight—without clear regulations, identifying potential risks becomes difficult. 

Unfortunately, the impact of unlicensed child care expansion often goes unrecognized until horrible things happen and it's too late. Without state oversight, it’s important for parents to learn about the differences between licensed and unlicensed child care. Below is a comparison chart outlining key distinctions, but we encourage parents to leverage OCCL's resources for informed decision-making.

* Training covers CPR, First Aid, home safety, emergency prevention, shaken baby syndrome prevention, sudden infant death syndrome prevention, care for children with disabilities, infectious disease control, child development, homelessness detection, and child abuse awareness.

This FAQ will be regularly updated with new questions and any developments from the Office of Child Care Licensing. If you have additional questions, please don't hesitate to reach out to Jenna at .

At Voices for Utah Children, we always start with this guiding question: "Is it good for all kids?" That remains our north star at the outset of the 2024 legislative session, and is reflected in our top legislative priorities.

So, what’s good for all kids in 2024?

A Healthy Start!

A healthy start in life ensures a child's immediate well-being while laying a foundation for future success. We are steadfast in our commitment to championing policies that prioritize every child's physical, mental, and emotional well-being. Central to this commitment is our focus on improving Utah’s popular Medicaid and CHIP programs, which are pivotal in the lives of many Utah children and families. 

This legislative session, a healthy start for kids looks like:

• Empowering Expectant Mothers: We support a proposal from Rep. Ray Ward (R-Bountiful) to increase access to health coverage for low-income and immigrant mothers-to-be.
• Increasing Access to Health Care: We support bills that aim to improve access to the vital healthcare services children and parents need, especially for those on Medicaid and CHIP.
• Protecting Health Coverage: We oppose any effort to defund, and exclude deserving children from, the Medicaid and CHIP programs that help thousands of Utah kids every year. 

Early Learning and Care Opportunities!

The formative years of a child's life lay the foundation for their future, shaping their cognitive abilities, socio-emotional skills, and passion for learning. We will support efforts to increase access to home visiting programs and paid family leave, but ensuring consistent, quality, and affordable child care is our top priority.

This legislative session, early learning and care opportunities for kids looks like:

• Bolstering Access to Quality Child Care: We support the efforts of both Rep. Andrew Stoddard (D-Sandy) and Rep. Ashlee Matthews (D-Kearns) to extend the successful Office of Child Care stabilization grant program that has supported licensed child care programs statewide.
• Investing in High-Quality Preschool: We support an anticipated legislative proposal to streamline Utah’s existing high-quality school-readiness program and to make it available to more preschoolers statewide. 
• Recruiting and Retaining Child Care Professionals: We support Rep. Matthews’ proposal to expand access to the Child Care Assistance Program for anyone working in the child care sector.
• Building New Child Care Businesses: We also support Rep. Matthews’ proposal to continue funding for work to develop and support new child care programs in rural, urban, and suburban areas.

To view a more comprehensive list of our 2024 early care and learning legislative priorities, click here. 

Economic Stability for Families with Children!

Economic stability forms the bedrock of thriving families and vibrant communities. To ensure that young families in Utah have the support they need to afford basic necessities, we will advocate for increasing families’ access to Utah's earned income and child tax credits.

This legislative session, economic stability for families looks like: 

• A Little Extra Help in the Early Years: We support HB 153, Rep. Susan Pulsipher’s (R-South Jordan) bill to expand Utah’s new Child Tax Credit, (currently only for children ages 1 to 3), to apply to children between 1 and 5 years of age. We also strongly recommend helping even more Utah families with young children by making the tax credit available for families with any child between birth and 5, and expanding it to include the thousands of lower- and moderate-income families who are currently excluded.
• Credit for Working Families with Kids: We support HB 149, Rep. Marsha Judkins’ (R-Provo) bill to expand Utah’s Earned Income Tax Credit so that more lower- and middle-income families with children can benefit. 

Justice for Youth!

We want to ensure that all youth, including those who come into contact with the juvenile justice system, have access to interventions and supports that work for them and for their families. We are dedicated to advancing policies and recommendations that contribute to a more fair and equitable juvenile justice system for all Utah youth.

This legislative session, justice for youth looks like:

• Prioritizing School Safety: We are monitoring bills from Rep. Wilcox (R-Ogden) and the School Safety Task Force, including: HB 14, “School Threat Penalty Amendments” and HB 84, “School Safety Amendments.” We remain hopeful that these efforts will support a secure learning environment for all students, without contributing further to the School-to-Prison Pipeline. 

Be an Advocate!

As we chart the path forward, one thing remains abundantly clear: the well-being, growth, and future of Utah's children rely on the decisions we make today. Each legislative session presents an opportunity—a chance to reaffirm our commitment, reevaluate our priorities, and reimagine a brighter, more inclusive future for all. 

Together we can continue to make Utah a place where every child's potential is realized, their dreams are nurtured, and their voices are heard.

Below are some ways you can get involved this session. 

Stay Informed with our Bill Tracker

Stay informed about important legislation we are watching and reach out to your local representatives to let them know how you feel about legislation that is important to you. We make it easy for you to subscribe and watch bills that you are most concerned about. 

VIEW TRACKER

Join us for Legislative Session Days on the Hill

Join us at the Capitol, where we offer attendees the opportunity to engage in the legislative process on a specific issue area (health and/or child care). You'll have the chance to attend bill hearings, lobby your legislators, connect with fellow community advocates, and watch House and Senate floor debates. Click the button below for the dates/times of our meetings and to RSVP.

RSVP TODAY

Celebrate Utah's Immigrant Community 

In collaboration with our partners at UT With All Immigrants, the Center for Economic Opportunity and Belonging, and I Stand with Immigrants, we are organizing Immigrant Day on the Hill. Join us to discover ways to engage in Utah's civic life. Enjoy food, explore resource tables, participate in interactive activities, and entertainment. Everyone is invited to attend this free event!

Event Details: February 13, 2024, 3:30pm-5:30pm at the Capitol Rotunda, 350 State St, Salt Lake City, UT 84103

RSVP TODAY