From Deseret News archives:
Utah tallies $106 million surplus
Transportation fund also collects an extra $12.5 million
In addition to the $106 million in the state's school and general fund accounts, the state transportation fund has a $12.5 million surplus as well.
The State Tax Commission reported Thursday that through the 12 months of fiscal 2004 — from July 2003 through June 2004 — tax revenues came in higher than expected.
Chief commission economist Doug Macdonald said sales taxes came in $32 million higher, while personal income taxes were nearly $60 million more than estimated.
It's the largest surplus since 2000, when the state closed out its fiscal year $120 million ahead.
Since the turn of the century, Utah state government has been bleeding red ink. Over several years, as Utah's economy slowed along with the rest of the nation's, legislators and former Gov. Mike Leavitt had to make up more than $700 million in lost tax revenue.
Through special legislative sessions and the general sessions, legislators trimmed back budgets and borrowed money to build highways and buildings. They also drained the state's Rainy Day funds, which dropped from more than $100 million to around $10 million.
By law, half of the new $106 million surplus will now flow into Rainy Day funds, which should help Utah maintain its AAA bond rating, the highest given by New York bond rating firms.
Last month, Gov. Olene Walker, who leaves office in January, said she would not suggest to legislators in a planned September special session that any of the new surplus be spent. That would leave it up to the newly elected governor and Legislature to decide how the surplus is spent.
In his monthly revenue update Macdonald said, "State sales tax collections were up 7.8 percent, better than expected."
While employee withholding taxes were down more than estimated, spring personal income tax refund checks were down 11 percent from 2003. Macdonald said Utahns got back $1.7 million less in refund checks this spring than they got a year ago.
Corporate income taxes have lagged this year. But the new report notes that by fiscal year's end, corporate tax revenues of $28 million were 7 percent better than estimated by lawmakers when they readjusted revenue estimates last February.
Higher gasoline prices this spring and summer have curtailed driving. And Macdonald said income from the state's per-gallon gasoline tax is 1.6 percent lower than estimated because of high fuel costs at the pump. But other special fuel taxes came in higher than anticipated.
E-mail: bbjr@desnews.com
