Legislators, guv chip away at 2006 budget disputes

Their joint press conference was replete with sunshine and smiles. But legislative leaders and Gov. Jon Huntsman Jr. still face a daunting amount of work to resolve budget disputes before the 2006 Legislature ends on Wednesday.

As first reported by the Deseret Morning News, GOP lawmakers and the governor have compromised on a $160 million tax-cut package that includes slicing 2 percent from the state's 4.75 percent share of the sales tax on food purchases.

Also announced Friday were agreements boosting per-pupil

spending on education by another $20 million and setting aside $90 million for roads, $8 million for water projects and another $22 million for legislative committee priorities.

"This is a session for the history books," Huntsman said. Still, the governor acknowledged the estimated $9.6 billion state budget is far from finished. "We still have ahead of us negotiations about a lot of money," he said.

A long list of needs fighting for a piece of more than a half-billion dollars in unbudgeted one-time surplus funds range from new technology centers on university campuses to assistance for the disabled.

Hundreds of millions of dollars in building requests, transportation projects and other infrastructure proposals are still pending. Targeted education programs, such as beginning teacher bonuses or all-day kindergarten, continue to be debated.

And even though the contentious issue of taking the sales tax off food — which pitted the governor and the House against the Senate — has been settled for now, both supporters and opponents expect to pick up the debate next session, if not sooner.

What is finished is the framework for a $160 million tax-cut package, thanks to a compromise reached Thursday. The deal calls for a 2 percent cut in the state portion of the sales tax on food, a "flatter" 4.95 percent income tax with limited deductions and exemptions, and five targeted business tax cuts totaling $20 million.

The compromise also calls for on-going funding of $90 million for transportation, $20 million to give a 1 percent boost to schools' weighted pupil unit, and $8 million for water resource development. An additional $22 million will also be returned to the appropriations subcommittees, meaning that $78 million is available to fund their specific priorities.