From Deseret News archives:

Surplus up by $87 million

And it will likely grow; but no extra for Palace

Published: Thursday, April 21, 2005 9:09 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
The money just keeps on rolling in.

State legislators and Gov. Jon Huntsman Jr. spent a record $650 million in new and one-time money during the 2005 Legislature, which ended just six weeks ago, and now the state has another $87.2 million in surplus funds.

And that $87.2 million extra will likely grow even more by the time the state's fiscal year ends June 30, lawmakers were told Wednesday.

"We've had some really good revenues, a very good year," Doug Macdonald, chief economist of the state Tax Commission, told the joint Revenue and Taxation Committee.

Even with the new funds, however, legislators decided not to allocate any of the "extra" cash for the Salt Palace Convention Center expansion — with leaders saying they won't count their chickens before they hatch.

Macdonald said the first three quarters of fiscal 2004-05 has seen hundreds of millions of dollars extra collected by the state, mostly in increased personal income taxes.

Much of that was spent by lawmakers during the 2005 Legislature, which adjourned March 2.

Story continues below
Tuesday and Wednesday of this week lawmakers were in special session to decide several items, including how to deal with the federal government's No Child Left Behind and a state contribution to the Salt Palace expansion.

Macdonald told lawmakers the state's General Fund and Uniform School Fund, together, are running a $87.2 million surplus — and that's after lawmakers updated the state budget in the general session, greatly increasing current year revenue estimates.

In essence, the $87 million is "new money."

But House Speaker Greg Curtis, R-Sandy, said Republicans aren't willing now to give any of it to the Salt Palace.

"We spent like drunken sailors" during the 2005 Legislature, Curtis said. Legislators allocated a combined $650 million more over current budgets between one-time surpluses this year and greatly increased revenue estimates for fiscal 2006.

The state may well end the current fiscal year June 30 with $100 million unspent, but those monies will be looked at in the 2006 Legislature, Curtis said.

Some of the good economic news:

• Wages are up 8 percent, unemployment is down, reflecting an 11.4 percent increase in individual income tax take, $55.89 more than estimated.

• Corporate income tax is up 28.6 percent, bringing in $10 million more than anticipated.

• The per-gallon gasoline tax is down, but not as much as economists believed as gasoline prices have topped $2 a gallon.

Budget-estimators guessed the tax would drop by 2.1 percent; but it's down just 0.5 percent, bringing in $5 million more than anticipated.

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

Tiger needs to convert to the FLDS faith so he can marry all of these women...

Letters: Roundabouts great

I agree with whoever said it works well when there's only one lane of traffic...

Cougars in better mood about bowl

"Your not a BYU Grad." By the way, it is YOU ARE not a BYU Grad, not your....

Cougars in better mood about bowl

Undergraduate and graduate, my friend, which is why I am disappointed in:...

lets not put all the blame on Anserson. His marketing team had a big part in...

Some of our children and grandchildren were friends with Jared and they...

Andersen apologizes for Jordan hoax

Mr. Anderson was not alone in this hoax... I understand that Bryan has fessed...

That is so dumb! I think I will listen to 98% of all scientists and NOT the...

I think it is sad and pathetic that any team would play worse and be less...

Andersen apologizes for Jordan hoax

What were the Flash thinking? Do they not teach business ethics at BYU? I...

Advertisements