'More Santa than Scrooge': Huntsman's budget buoyed by surpluses, growth

Published: Friday, Dec. 9, 2005 11:30 p.m. MST
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Hundreds of millions of dollars in new revenue has put Gov. Jon Huntsman Jr. in a giving mood.

At $9.6 billion, the governor's proposed budget is the largest in the state's history. But with $449 million in estimated one-time surpluses between last year and this year — and $581 million in ongoing revenue growth for next year — there's plenty to spend.

"This year's budget is a lot more Santa than Scrooge," Huntsman said Friday during a news conference in the state Capitol during which he announced details of his spending plan for the budget year that begins July 1, 2006.

Among those with well-stuffed stockings in the budget are transportation officials, taxpayers, universities, teachers and state employees. The governor wants to give:

• $62 million for the Utah Science, Technology and Research initiative (USTAR), including $50 million for new buildings at the University of Utah and Utah State University.

• $60 million in tax cuts, including a lower income tax rate and some form of reduction or tax credit for the sales tax on food.

• $234 million in new funding for public education, including money for enrollment growth, teacher salary increases and specialized programs.

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• $140 million more for transportation projects, plus $83 million in general obligation bonds for road construction.

• $74 million to raise state employee salaries and help bring corrections officers and college professors closer to market averages.

"I'm very comfortable and happy with this budget," Huntsman said. "This is one of those extraordinary years when we can fund a lot of things."

Spending would go up over last year's budget by just under 7 percent under the Republican governor's budget, which would mark the first time state spending would exceed $9 billion. Education and transportation, Huntsman said repeatedly, would get the most money ever under his proposal.

Yet even with all of what he's spreading around, there's still more than $40 million on the table. That number includes an additional $25 million the governor would like to see go to the state's so-called Rainy Day fund, over and above what's required.

He may have to tap that cash. As with any proposed budget from a governor, there are potential disputes with legislators — especially with 2006 being an election year for most of them. The two branches could end up battling over the amount of money being proposed for tax cuts — House leaders want $100 million, with most of it going to remove sales tax on food — and the proposed bonding measures, which conservative legislators seldom favor.

Killing the food tax

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Ravell Call, Deseret Morning News

Gov. Jon Huntsman Jr. answers questions about budget Friday at Capitol.

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