DAY 30 — What to do with $209 million?

Utah’s consensus revenue numbers were released today in cooperation with leaders from the Utah Senate, House of Representatives, Legislative Fiscal Analyst, the Governor’s Office of Management and Budget and Utah State Tax Commission.  We will use this analysis as we determine where the added revenue should be allocated: rainy day fund to education to new programs to tax cuts to ????  At this point, everything is on the table and we’re paying particular attention to the fact that the last time revenue was this robust was 2008, right before the last recession.  

The revised total available new revenue at this time, after base budget changes, is $453 million ongoing and $128 million one-time, for a total of $581 million. At last year at this time, it was $361 million available ongoing and $6 million available one-time.

The FY 2018 amounts do not include $25-$80 million in new ongoing revenue that can be expected from the federal tax reform.

In December, consensus numbers estimated $382 million ongoing and $101 million one-time in available new revenue.

In January, the Legislature designed a portion of the new revenue to:

  • Repay $85 million to the rainy-day funds
  • Finance $67 million in buildings that were approved last year
  • Fix an $18 million matter with firefighter retirement
  • Pay $3 million for the statutory Tourism Marketing Performance Fund increment
  • Among other minor changes

Leaving $292 million ongoing and $12 million one-time available for tax cuts and further spending priorities, prior to base budget reductions. During the base budget process, the Legislature reduced spending by $35 million ongoing and $33 million one-time.

Our economists now predict that the  Legislature will have additional $126 million ongoing and $83 million one-time in new revenue compared to the December amounts.

The new ongoing revenue:

  • $65 million in General Fund
  • $61 million in Education Fund.

The new one-time revenue:

  • $28 million in General Fund
  • $55 million in Education Fund

The revised total available new revenue at this time, after base budget changes, is $453 million ongoing and $128 million one-time. At last year at this time, it was $361 million available ongoing and $6 million available one-time.

The above FY 2018 amounts do not include $25-$80 million in new ongoing revenue that can be expected from the federal tax reform.

Deseret News: Utah lawmakers now have $581 million in additional revenues

SL Trib: Utah legislators told they have an extra $209 million to spend 

 

 

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2 Responses to DAY 30 — What to do with $209 million?

  1. Jim Allen says:

    I don’t agree with the headline “Utah lawmakers now have $581 million in additional revenues” That is not there money and should be repaid to the taxpayers or put aside for a rainy day or pay down debt.

  2. Becky says:

    Good clarification! We are looking at a tax decrease this year.

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