Budget bounty — Walker earmarks funds; lawmakers talking tax cuts

• Raising spending for public education by 5 percent — that's $78.6 million, plus fully funding student growth for the fall of 2005 — an additional $33.8 million.

• Increasing state salaries by an average of 3 percent.

• Bonding for $139 million in construction projects, including roads, rebuilding the state Capitol and other state buildings. "We're retiring $137 million in bonds next year, so this is a minimal increase" in state borrowing, said Walker.

• Boosting the state's Rainy Day Fund by $72 million, bringing it to a record level of $146 million. "That fund got us through," Walker said.

• Reinvesting in the state prison system. Walker said even though some Utahns might not like it, it's time to add beds "so we don't have a lot of prisoners let loose on the streets" because of overcrowding.

• Putting $6.3 million into the new Drug Offenders Reform Act, an effort to get drug offenders/drug addicts treated outside of the prison system.

• Giving the Utah Defense Alliance $5 million to help keep the government from closing Hill Air Force Base.

• Ignoring the push from Utah County officials to add lanes on I-15. Walker did not include the request in her budget. A gasoline tax increase could provide some of those funds, but Walker said there might be other ways to pay for the project.

Valentine said a "gasoline tax hike is remote," considering state revenues are increasing so much naturally.

Optimistic response

Reaction Friday to the governor's second — and final — budget was upbeat.

Leaders of the state's largest teachers union are combing through Walker's education budget proposal. But it looks encouraging, Utah Education Association government relations director Vik Arnold said.

"We're relieved that the funding drought appears to be coming to an end. We are hopeful that the Legislature shares the governor's sentiments, and we'll follow her lead," Arnold said.

"It's a great statement that the governor has made, in recognition of the fact that teachers and other state employees have weathered some pretty difficult years over the past three years. Hopefully, we're seeing a light at the end of the tunnel."

Higher education administrators were also pleased, especially since 17 of the 18 items on their funding wish-list were addressed in the budget.

"This is very good news for all of Utah's public colleges and universities, and we hope that her recommendations will be given serious consideration by both Gov.-elect Huntsman and the Legislature," Commissioner of High Education Richard Kendell said.