$64 million surplus estimated for Utah

While not swimming in surplus funds, the state of Utah's tax collections are looking better as income taxes come due Thursday.

A new, monthly state revenue report shows the state is running a $64.21 million surplus in its two main funds, the General Fund and the Uniform School Fund. The state's Transportation Fund is also running a $6.41 million surplus.

These are just estimates, warn state Tax Commission economists. The state's fiscal year ends June 30, and no one will know for sure about any cash surpluses until then.

But it is good news, as state tax revenues, after being down for three straight years, are making a comeback.

"We've had two straight months of sales tax (revenue) up by more than 7 percent. And that's very important," said Doug Macdonald, Tax Commission chief economist.

Over a three-year period, legislators and former Gov. Mike Leavitt had to find ways to make up for more than $700 million in lost tax revenue — money that didn't come in as expected.

They did it by pulling sales tax money out of highway and building projects, and bonding for the difference; cutting state budgets; and draining the state's Rainy Day Fund.

Individual income taxes — due April 15 — remain strong, noted Macdonald.

His new TC23 revenue report shows personal income taxes coming in nearly $43 million more than anticipated.

"We aren't creating a lot of new jobs," he said. "Instead, businesses are getting more productivity (and thus the state more corporate income tax revenue) out of their current work force."

Corporate income taxes are up 45 percent, "better than expected," said Macdonald.

Personal income tax withholding is also up. And income tax refunds — at $86.5 million so far this year — are lower than the $91.9 million paid out by this same date a year ago.

Utah lawmakers crafted a tight budget for next fiscal year, which starts July 1, during their January and February general session.

A number of buildings desired by the state building board and colleges and universities were not funded.

While no one is yet promising what will happen if the state does collect $60 million or $70 million more than anticipated when this fiscal year ends, there is a long list of road and building projects waiting for the extra money, should lawmakers in 2005 allocate those funds.

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