Surplus is officially record $170.4 million
But bubble 'one-time money from a source that is volatile,' official says
After months of rapidly escalating estimates, the final surplus for the 2005 fiscal year, which ended June 30, is $170.4 million, according to numbers released Thursday by the Governor's Office of Planning and Budget.
By comparison, last year's surplus was $93 million. In the 2000 fiscal year, when the state had another record-setting revenue stream, the budget surplus was $110 million.
In all of those years, more than a third of those revenue surpluses were transferred to various funds, as required by statute. This year, $31.7 million was put in the General Rainy Day Fund, bringing its balance to $105.6 million, and $26.7 million was moved into the Uniform School Fund Rainy Day Fund, bringing it to $40.2 million. Another $4 million was put in the Tourism Marketing Performance Account and $3.2 million was put into the industrial assistance fund.
After the transfers, the surplus that can be spent by legislators is $104.8 million. Of that, $80.2 million goes to the Uniform School Fund and $24.6 million goes to the general fund.
Richard Ellis, director of the Office of Planning and Budget, said that this year mirrored 2000 in many ways, especially the source of the additional revenue: personal income, especially from capital gains. Although the 2000 revenues were attributable to a booming and soon collapsing stock market and this year's personal income owes more thanks to real estate, both are "one-time money from a source that is volatile."
In other words, it's probably best for legislators to not expect another year with this kind of revenue surplus.
"I think we're in real good shape for the (2006) fiscal year, and we should have some type of surplus next year," Ellis said. "But we shouldn't build this into future budgets."
The additional revenue will probably give added heft to tax reform proposals that legislators are focusing on this summer, although it is unlikely that any significant tax cuts would be built into next year's budget based on the one-time revenues. Instead, legislators should probably look toward funding transportation and building projects, Ellis said.
House Speaker Greg Curtis, R-Sandy, was understandably thrilled about the surplus, even if it was not a surprise, and said "it indicates the economy is recovering." The money could fund any number of projects, especially needed capital improvements for higher education and public education, as well as transportation needs.
Still, he echoed the caution voiced by Ellis, especially considering recent events such as Hurricane Katrina, which have pushed gas prices skyward. Because of those concerns, the money will probably not fund projects that require ongoing funding.
Comments
- Jazz brass debate Millsap match 12:17 a.m.
- Teacher faces new sex charges 12:09 a.m.
- BYU professor to work on Hebrew Bible 12:08 a.m.
- Mormon Times national calendar 12:08 a.m.
- John Calvin's 500th birthday 12:08 a.m.
- Dinner Diva: Frugal grocery tips 12:08 a.m.
- FlyLady: Why is home messy? 12:08 a.m.
- Pageants inspire thousands 12:07 a.m.
- Mormon Times mile run on July 18 12:07 a.m.
- Fiddling prodigies team up to win 12:07 a.m.
- LDS seminary principal arrested
- Reactions on Boozer speculation
- Jazz down Oklahoma City
- Jazz talking Boozer trade?
- Animals removed from filthy home
- Tainted beef sold in Utah stores
- Sleepy Ridge offers much for many
- 2 Tooele police officers fired
- Let's bid 'Eli Stone' a fond farewell
- Baseball teams fear 'haunted' hotel
- LDS seminary principal arrested
142 - Bronco collecting a galaxy of recruits
141 - Jazz talking Boozer trade?
136 - Blazers may offer Millsap a contract
123 - Stadium of Fire flag burning was fake
94 - Jazz brass debate Millsap match
88 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
72 - Services bids farewell to Jackson
70
As more and more dads are put out of work in this economy, I've been...
The photographs are mysterious, brooding, dark. They show dimples and...
Didn't Obama and Biden just admit to the fact that the stimilus programs were...
The last part of the article about Cowherd is classic!!! I normally like the...
This man was my teacher in high school. He is my friend, he was like a father...
I like millsap, but portland just burried themselves. They made themselves...
It's amazing how quickly society is willing to vaccinate it's children with...
The first income tax was introduced during the Civil War, that's only 70...
If he really did what the evidence seems to show, I don't think he should be...
Utah needs Portland too much. It's much harder than you think to find good...
stacy, have you ever eaten there ??
I had Brother Pratt at Viewmont High School my sophomore year... I was really...


You can be the first to comment on this story.