Budget proposal nears final draft

Legislators made headway on their final budget proposal Tuesday, including a tentative plan for funding major road construction and building projects.

While they committed to bonding for some significant projects, including the I-15 reconstruction in Utah County, the majority caucuses are still holding off support for additional tax and fee increases, with the exception of a $20 hike on the vehicle registration fee. Instead, they are hoping that a combination of budget cuts and an infusion of federal stimulus money will help them address their money problems.

Those budget cuts, which were as high as 15 percent when the budget started, will be not as harsh. Overall, public education will see a 6 percent "net" cut in budgets starting July 1, Utah colleges and universities see 9 percent cuts, said House Budget Chairman Ron Bigelow, R-West Valley. But the growth in public education will be fully funded, thanks to the stimulus money.

Still, the decisions made Tuesday by the majority caucuses in the House and the Senate doesn't mean work on the budget has been completed.

There's still work to be done sorting out how Utah's share of the federal stimulus package can be used, including where about $36 million of the $86 million in stimulus funds allocated directly to Gov. Jon Huntsman Jr. will go.

Senate Budget Chairman Lyle Hillyard, R-Logan, said the governor wants about $20 million more in ongoing revenue " to hit what he called his hot spots," including prisons.

"There's still a lot of fine-tuning that needs to be done, a lot of compromising," Hillyard said.

Huntsman spokeswoman Lisa Roskelley said budget negotiations are ongoing between the governor and legislative leaders. "The reality is there's $20 million worth of specific things that we're still working on," she said.

Roskelley said increasing the cigarette tax, something Huntsman has advocated to ease the impact of the budget cuts, will be part of the ongoing discussions.

Senate President Michael Waddoups, R-Taylorsville, said he's not sure raising taxes is a choice "we have to make right now." Despite concerns raised by Sen. Allen Christensen, R-North Ogden, about leadership blocking an increase in cigarette taxes, a hike of between 50 cents and $1.50 a pack is still an option. But, Waddoups said, so is no tax increase beyond the vehicle registration fee boost.

"Things have fallen into place" on the fiscal 2009-2010 budget over the last few days, said House Speaker Dave Clark, R-Santa Clara. That means the tobacco tax increase is not needed "yet," although the hike could be used later to shore up the budget if the economy continues to worsen.