Huntsman unveils $10.7 billion budget

Saying Utah's economy is the best in 25 years, Gov. Jon Huntsman Jr. today unveiled a $10.7 billion budget for next year that includes $100 million in tax cuts, which the governor likes to describe as "tax reform."

Speaking to a room packed with journalists, staffers and other interested parties, Huntsman said he was able to greatly help public and higher education.

"Utah's school kids are on Santa's good list," said Huntsman.

Those sentiments were echoed by executives of the Utah Education Association, the state's largest teacher union.

"He really stepped up to the plate," said Kim Campbell, president of the UEA.

Huntsman is proposing nearly a 20 percent increase in public and higher education spending.

The Weighted Pupil Unit — the state's basic per-student budget number for K-12 — goes up by 7 percent, and Huntsman provides money for class-size reduction (average of 20 kids K-3rd grade) and full-time kindergarten for those who want it.

Overall, Huntsman's $10.7 billion spending plan for fiscal 2007-2008.

"The economy is growing, job growth is exceedingly high, and we have a large budget surplus," Huntsman said.

Huntman's economists estimate that the state has a record-setting $498.2 million for the year that ends June 30.

Combine that with last year's surplus of $308.4 million, legislators will have a mind-bending $800 million in one-time cash to allocate when they come into session Jan. 15.

With all that money — record levels of tax collections — Huntsman said he wants to continue "tax reform." That takes away some cash that

otherwise would have grown state government more than some conservative legislators wish. Overall, the 2007-2008 budget will grow by 6.7 percent, if Huntsman's recommendations in all areas are adopted.

If only state funds are counted, however, the new budget increases a hefty 15 percent. That's less than the 17 percent increase that lawmakers adopted in the current year's budget. But at 15 percent, that means state spending on local tax dollars will have gone up nearly a third in two years — a level that some GOP lawmakers may balk at.

In tax cuts/tax reform, Huntsman wants to lower the current 5.35 percent level of the new flat-rate income tax to 5.0 percent and implement a taxpayer tax credit, also.