Senate President John Valentine, R-Orem, said talk about state tax cuts may be premature. The new tax-surplus numbers are based on the current tax rates — which will be lower in fiscal 2008-09 because of tax cuts already given by past legislative sessions.

"I want to see how those lower rates affect tax collections before I want to look at tax cuts," said Valentine, who is up for re-election next year.

Still, something must be done to Utah's fast-rising tax collections. "We can't do nothing," said Valentine, "because these new (tax-surplus estimates) would mean we would exceed our (government) growth cap," which is set in state law.

While the extra $250 million to $400 million couldn't all be spent on government growth, as one-time surplus money it could be spent on roads, buildings or public education.

Utah has a "very fast" tax growth, said Valentine, who is a tax attorney. "But could we sustain this tax growth over time, considering the new lower tax rates that are coming" in 2008?

"Taxes are always a good discussion," said Snow. They will begin again in the 2008 Legislature.

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