From Deseret News archives:

State expects $420M surplus

Forecast down but still record, 'healthy growth'

Published: Monday, April 2, 2007 12:34 a.m. MDT
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John Massey, the Legislature's top budget officer, said history shows his office "has been pretty close" in estimating the impacts of tax-cut bills. And he denies there is any political posturing that changes his fiscal notes.

"We make (tax) estimates two years out. How the economy acts beyond that, we can't say, although if we think there could be a big impact" because of the type of tax cut being given, "then we'll mention that" in the fiscal note, Massey said.

Macdonald suddenly retired from the Tax Commission after several tax commissioners complained that he was giving his opinion of tax reform in Utah too liberally. After he stepped down, the four commissioners announced that no longer would the commission estimate how much of a surplus or deficit the state was running.

Different reasons were given to the Morning News by tax commissioners for the halting of the tax-tracking service — with one commissioner saying he had been told by several legislators that reporting huge tax surpluses brought unwelcomed political pressure.

The commissioners finally said they were just not in the business of making revenue forecasts, even though Macdonald had done it for 15 years.

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But Senate Majority Leader Curt Bramble, R-Provo, said it was important for the state — like any other business — to know monthly how it was faring in budget spent, revenue in.

Bramble, an accountant, said several months ago that he would put together some kind of economic/tax revenue forecast panel to come up with tax surplus estimates.

Wednesday, Bramble said he was too busy in the 2007 Legislature and now in his tax-preparation business to deal with the issue now but within a month or so would attempt to resume the tax surplus forecasts.

Chris Bleak, chief of staff for House Speaker Greg Curtis, R-Sandy, said by summer the Legislature's Executive Appropriations Committee — made up of House and Senate leaders of both bodies — would adopt a system to make revenue forecasts. "We will have some group to do the forecasts immediately," said Bleak, "once (leaders) adopt the system."


E-mail: bbjr@desnews.com

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