From Deseret News archives:

State's surplus just gets bigger

Published: Tuesday, Feb. 13, 2007 12:34 a.m. MST
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Senators and Huntsman like SB223, a bill that would trim around $102 million from the new flat-rate income tax.

But House Republicans have openly, and harshly, criticized the bill, saying it doesn't do enough for "the guy busting his butt to make $80,000 a year, pay a high mortgage and make charitable contributions; his wife stays at home to take care of their two young kids" — as one House leader put it Monday.

Meanwhile, Senate Republicans don't want to cut more of the sales tax on food, even though that's a priority for the House GOP. Huntsman has joined the House in supporting the elimination of locally assessed, so-called "boutique" sales taxes on food purchases.

Also Monday, House Democratic Caucus members released their budget suggestions, saying the state should take advantage of Utah's upbeat economy to "get ahead" on funding public education and state Health and Human Services programs.

During a Monday press conference, House Minority Leader Rep. Ralph Becker, D-Salt Lake, was clear about Democrats' fiscal concerns.

"Our highest priority is public education," Becker said. "We're putting our money where our mouths are."

The Democrats are proposing the state increase per-pupil spending by 10 percent.

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Their plan also addresses the medical and dental needs of disabled people. They suggest using $4 million in ongoing funds to reduce by half the number of people on the state's waiting list for disability services. They are also on board with Huntsman's proposal for upping the funding for the Children's Health Insurance Program.

Transportation funding and tax cuts are perhaps their biggest departure from the GOP plan. The Democrats want to set aside $300 million in one-time money to fund new highway projects and roads, while the Republicans plan on funding transportation using ongoing money.

They have penciled in $100 million for tax cut, a significantly lower figure than their House Republican colleagues have offered. And unlike the majority party they aren't interested in a flat tax.

"Our caucus has been very skeptical of the flat tax proposal," Becker said.

Instead, Rep. Brad King, D-Price, said they favor tax cuts that would target lower-income Utahns. "We felt like last year, what was done by the Legislature benefited those who were well off," King said.

"We should be looking at the whole population," Becker said.

They haven't specifically identified where they would like to see taxes trimmed. King said they will look at all 10 legislative bills that include various cuts.

Their budget proposal also includes plans for giving state employees raises.


E-mail: lisa@desnews.com; bbjr@desnews.com; smansell@desnews.com

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