Self-employed tax break, state jobs may become budget trimming casualty

Utah legislators started the tough decision-making on Thursday of cutting $272 million from the state budgets, and one casualty could be a new tax break for self-employed Utahns.

A "framework" for cutting the money was adopted unanimously early Thursday by the Legislature's top leaders in both parties, and it included the $18 million tax cut for self-employed Utahns to help them pay for their own health insurance.

That cut "is a critical element" to GOP Gov. Jon Huntsman Jr.'s health care reform effort, said Lisa Roskelley, Huntsman's spokeswoman.

"We want (legislators) to look at other options," than cutting that $18 million tax break, she said.

House Speaker Greg Curtis said that "there is disagreement" and leaders were working to preserve the cut.

Thursday afternoon the budget subcommittees met to determine which cuts to propose. Legislative leaders met again Thursday evening, with floor time for the legislators not planned until Friday.

Along with the tax break, there will also be cuts to staffing, primarily by not funding currently unfilled positions. But that does not mean there will not be some lay-offs.

Senate President John Valentine, R-Orem, said he did not know yet how many state employees would lose their jobs because of the budget crunch.

State agencies submitted a list of cuts to Gov. Jon Huntsman Jr.'s office that included nearly 199 full-time positions, but it was not clear how many were actually filled.

Corrections, for example, said 44 jobs would need to be eliminated, while public safety would have to do away with 21 jobs, including 17 state trooper positions, and courts would lose 49 slots.

They may also not hire two new driving under the influence enforcement officers, or two special liquor law enforcement officers. However, those positions could be filled as part of liquor law reform, which is expected to happen during the 2009 General Session.

Valentine said none of the trooper jobs were actually filled at this time. "We won't lay-off highway patrol officers," he said. "We'll pull back funding for unfilled vacancies."

While the governor asked agencies to come up with a 3 percent budget reduction, which totaled nearly $185 million, the Legislature's GOP majority asked for an additional 1 percent cut.