Impasse on Utah budget

Gov. Jon Huntsman Jr. and House Republicans have called a budget bluff of Republican senators: No compromise on tax cuts or huge revenue surpluses.

Get ready for a special legislative session this spring.

"We thought the governor's latest compromise was fair, but the Senate (Republicans) said no," House Speaker Greg Curtis told a tense and shocked special bipartisan caucus Wednesday afternoon. "Keep some of your interim (study) days free," because legislators will likely be spending some days in a special session soon.

Huntsman will call a special session unless some quick and workable compromises are reached before the mandatory general session adjournment is reached at midnight March 1.

It would be the first time in modern history that the Legislature didn't complete most of its budget work in the 45-day general session, although mistakes in bill drafting have resulted in some special budget sessions before.

Huntsman's deputy chief of staff, Mike Mower, said Wednesday's action taken by Huntsman and House members in giving up the budget battle with GOP senators "is in good faith; we've reached an impasse."

But nothing is ever over in the Legislature until the final bell rings.

And the tough stand by Huntsman and GOP House members may be to place public pressure on recalcitrant senators — who may come around to an acceptable compromise before next Wednesday night.

Curtis, R-Sandy, said Huntsman's latest compromise was generous: No action on income taxes at all this year, further study and a growing economy may lead to personal income tax cuts in the 2007 session.

"The governor gave up one of his main goals" in not demanding a "flatter, fairer" income tax now, Curtis said.

But Huntsman was not willing to also give up removing the sales tax on food. He offered a three-year phased-in removal of the state's 4.75 percent share of the sales tax. "But the Senate (Republicans) just said 'no' — no reason given," said a disappointed Curtis.

Senators are standing firm in their opposition to taking the sales tax off food. Although they talked about giving poorer Utahns a credit of $75 or so on their income taxes to compensate them for the sales tax they pay on food purchases, that was scrapped Wednesday in favor of a new, $82 million tax reform plan.