SALT LAKE CITY — While Utah's economy remains strong, revenue numbers used to fund programs and set the annual state budget have come in lower than anticipated.
That will likely mean some programs and initiatives don't get as much money as they hoped — if any — and a highly-touted tax cut from House and Senate Republican leaders may be up in the air.
"We’ll be evaluating what the needs are and tax cuts are still on the table, but they may be a little harder to do right now," Senate President J. Stuart Adams, R-Layton, told reporters on Wednesday.
The consensus numbers from Governor Spencer Cox's office and the Utah State Legislature show revenues grew by 3.5%. However, revenues coming into the state since October's estimates have declined. Here's how it breaks down, according to the numbers released on Wednesday:
- Ongoing general funds increased by $16 million from October consensus numbers
- One-time general funds decreased by $900,000 from October consensus numbers
- Ongoing income tax funds decreased by $54 million from October consensus numbers
- One-time income tax funds decreased by $73 million from October consensus numbers
"Utah is consistently recognized as one of the best-managed states in the nation, and that’s no accident," said Gov. Spencer Cox in a statement. "We work hard to ensure every dollar of state funds is spent wisely and reflects the values and priorities of Utahns. We’ll continue to build a state that serves its people and stands as a beacon of economic prosperity for the nation."
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But asked to explain the decline, the Senate President said: "We’ve just been used to hyper-growth." He argued they were not bad and lawmakers have already set aside roughly $160 million for a tax cut.
But many programs and initiatives may not see as much money in a tight budget year.
"A lot of the bills we’re running will basically crash because of lack of funding," said Sen. Jerry Stevenson, R-Layton, the Senate's budget chief.
That happened to Rep. Jason Thompson's House Bill 389 offering a tax credit to businesses to build child care centers inside their facilities. The House Revenue & Taxation Committee held his bill despite public comment largely in support of it over lawmaker concerns about giving tax credits to some and taking people out of the home.
"We're in a really tight budget year, I understand that," Rep. Thompson, R-River Heights, told FOX 13 News. "When I look at this bill and I look at what this bill will do for the workforce by having providers coming in and providing the vast majority of the expense, we stimulate the economy."
Child care is an under-served need in the state, Rep. Thompson argued. Business leaders testified that it's a need for their employees.
"We hear from businesses, we hear from employees that they are struggling and need help and support," said Mary Catherine Perry with the Salt Lake Chamber, the state's largest business organization.
Elizabeth Garbe with the United Way told the committee about the costs.
"It’s very expensive for families, it’s very expensive for child care providers, and it’s really expensive for then child care employees," she said.
It's not the only child care bill on Utah's Capitol Hill being pushed for support. Senate Minority Leader Luz Escamilla, D-Salt Lake City, has revived a bill to turn unused office space in state buildings into child care centers.
"Where can we invest as a state when we have limited resources?" she said Wednesday. "In our own buildings is a place to start."
