Utah’s general fund revenues should increase by 8% in fiscal year 2023 with education funds rising by 12%, according to a news release from the Legislature’s Executive Appropriations Committee (EAC).
The EAC has recommended $160 million in savings for state taxpayers but did not specify where the savings should be applied.
Gov. Spencer Cox called for a tax credit on groceries Tuesday that would cost the state $160 million.
The committee is asking the Legislature to approve a plan that pays down bonds and does not borrow for infrastructure and transportation needs. Rainy day funds should be replenished to prepare for future economic downturns or emergencies, according to the recommendations.
Federal funds should be partially allocated as one-time funds because of the uncertainty and instability of federal stimulus money, the committee said in its recommendations.
“Though this year we have unusual additional funds, we remain committed to prudent and strategic planning to ensure our children and grandchildren have the same or better quality of life than we enjoy,” said Sen. Jerry Stevenson, R-Layton, co-chair of EAC. “While Utah is in a strong financial position, we need to make decisions that will have generational impact and solve some of our state’s long-term issues.”
The committee allocated $180 million for water projects, noting in its presentation that “Utah is a desert state.”
An additional $125 million for state employee compensation and retention would be set aside under the proposal, along with $30 million for pay raises for law enforcement.
The committee is proposing $142 million in ongoing funding for education and $19 million in one-time money that would address enrollment growth, inflation and add more funding for at-risk and socioeconomic disadvantaged populations.
Another $121 million would go to the public education stabilization fund. The committee is asking for an additional $72 million and will decide how to use the money during the upcoming legislative session, according to the news release.
If the budget recommendations are approved, veterans would see a new nursing home constructed for them in Salt Lake City with $25 million allocated for the project. Other social service initiatives include fully funding Medicaid growth and inflation with $17 million in one-time money on top of $68 million in ongoing spending.
An additional $19 million is recommended for autism insurance coverage and other benefits for those with disabilities and mental and emotional health challenges.
“Despite economic uncertainties and instability, our state has experienced unprecedented success and economic growth the past few years,” EAC co-chair Rep. Brad Last, R-Hurricane, said in a statement. “However, I think it is wise to exercise caution and remain conservative in our planning and budgeting.”
