State revenue forecast looks grim

Get ready for some more bad economic times for Utah state government, with layoffs of state workers and a reduction of programs for Human Services recipients and other "critical" areas potentially considered, state legislators were told Wednesday.

In the last House GOP caucus for the 2007-08 Legislature — which also saw a standing ovation for retiring House Speaker Greg Curtis, R-Sandy; House Majority Whip Gordon Snow, R-Roosevelt; and other members leaving — a dim financial picture was painted for the majority representatives.

Earlier this week the state Tax Commission said for the first four months of this fiscal year general tax revenues were down by nearly $120 million from the first four months a year ago.

House budget chairman Ron Bigelow, R-West Valley, who will serve in the same post in the next two years of the Legislature, said while Utah is in better shape than "almost any other state" with a $414 million Rainy Day Fund and an extra $100 million put aside for public education, there will likely be even more cuts to the current year's budget come January.

"They could impact (state workers') employment, services to individuals (on state programs)," said Bigelow. "We picked the low-hanging fruit" in September's special session where more than $300 million was cut from state programs/building in the current fiscal year which ends next June 30.

"Now the (budget-cutting) decisions will be much harder."

The Senate Republicans were not able to meet in their normal closed caucus because of an extraordinary session dealing with judicial and other appointments. However, Sen. Lyle Hillyard, R-Logan, the current budget chair who will continue to serve in that capacity under new Senate leadership, said that he had seen the numbers and was "concerned" about the continued drop.

"I don't like the trend," he said.

He warned that if the numbers continue to slide, which he expects, education will probably not be held harmless during the next round of cuts. He suggested that education officials start looking for ways to provide lower cost services at schools, which make a large portion of the budget.

"They are going to need to be part of the solution," he said.

Senate President-elect Michael Waddoups, R-Taylorsville, said that there is no more "fat to liposuction" from the budget.

"I think we're up against some budget cuts," he said.

Outgoing Senate President John Valentine, R-Orem, said he would not be surprised to see cuts reach 7 percent next year, more than double the amounts of cuts made during the recent special session.

E-mail: bbjr@desnews.com; lisa@desnews.com

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