From Deseret News archives:

Licensing-fee increases to bring in $2.3 million

Published: Thursday, Feb. 24, 2005 8:41 p.m. MST
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Senate Budget Chairman Lyle Hillyard, R-Logan, said that the $2.3 million in new revenue seems low compared to many years, although there seems to be an increase each year in some fees. The increases are supposed to be justified with increased costs, for things such as a jump in applicants or new computer systems that require additional training, to the various appropriations legislative subcommittees.

"Fees cover the costs to the agencies, and are spent by the agencies," Hillyard said. "Fees should never generate surplus revenue, and it's not a problem, from what I've heard. But I'm always willing to look at it."

While it is important to charge the users of state government appropriate fees, House Minority Leader Ralph Becker, D-Salt Lake, said it is also proper not to overcharge them.

John Massey, legislative fiscal analyst, said a fee study has not been done for several years. When the last one was done, it was found that some fees were too low — they weren't covering the real cost of administrating that specific profession — while others were too high. A number of corrections were made then.

Not all fees go up each year (although many do). Last year, fee increases amounted to almost $14 million in new revenue, $9 million of which came from a $32 surcharge which justice courts were allowed to tack onto tickets. There were also large jumps in hunting permit fees, especially to out-of-state residents, and a small increase for almost all professional licenses to cover the cost of a new computer database.

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This year, $1.6 million of the new fees are generated from a new fee for expanded newborn screening tests. There are also increased fees for a few hunting permits, notary licenses, airplane registration, and mortgage broker training.

Teachers, both new and veteran, will see as much as a $40 bump in their licensing fees to cover the increased costs of background checks, which are currently running months behind schedule. Although some leaders complained about the increased costs for a profession which the state is already struggling to find people for, the fees were not reduced. Instead, they followed the recommendations of DOPL.

"We do raise these each year," as DOPL suggests, said Bigelow.

Another twist is a change in hospital licenses from an annual license to a two-year license. Although the extra year's hospital and nursing home payment kicks in nearly another $800,000 for fiscal 2005-2006, it is generally supported in the industry, said Deb Wynkoop, policy manager for the Utah Hospital Association.

"They're the same fees (over two years), but they will reduce administrative costs," she said. "We are in favor of anything which increases efficiency and saves everyone time."


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

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