Legislators worry about state's 2011 budget health
While Utah state government may get out of this fiscal year fine financially, it's next year and the year beyond that worry top state bosses.
And according to a new study put out by a nationwide legislative group, Utah is not alone in future budget worries.
Most states are missing their tax-collection goals as of April of this year, says the National Conference of State Legislatures.
Utah is off on its personal income-tax collections — one of the worst showings among the 50 states — reports the NCSL. But the Beehive State is doing OK in its sales-tax collections and its corporate income-tax take. And it is up 96 percent in severance-tax collections.
"We should end this fiscal year (June 30) just about right on budget," says Jonathan Ball, the Legislature's chief budget officer.
Utah House Speaker Dave Clark, R-Santa Clara, recently warned that Utah may be able to struggle through until January of 2010 without a special legislative session or major adjustments in spending.
But the spring of 2010 could be trouble. And the 2010-2011 revenue picture "scares me spitless," says Clark, a southern Utah banker.
Between facing the end of a $400 million federal stimulus package, greater contributions to the state's retirement fund and mandates to fund student growth in public education and Medicaid-enrollment increases, Ball says Utah could face a $700 million "gap" for fiscal year 2011.
Legislators will set that budget in the next general session.
Because Utah used federal stimulus one-time cash and state revenue surpluses to "backfill" hundreds of millions of dollars into ongoing programs, especially public education and health care, if the current serious recession doesn't rebound quickly, really tough political decisions must be made.
Sound bad?
Other states are much worse off, the NCSL study shows. California, the poster-boy of bad state budgeting, could run out of money in mid-July this year if drastic program cuts aren't made and taxes raised.
Clark said Utah lawmakers will have to seriously look at raising the state tobacco tax and maybe even the alcohol tax — along with more budget cuts — come the 2010 Legislature.
The NCSL study found that Utah had missed its personal income-tax collection targets in four out of four areas.
Utah actually did better than predicted in sales-tax collections. And it was 96 percent above its oil and gas severance-tax prediction.
Utah was up in corporate income-tax estimates, but off 35 percent in total corporate tax take.
Recent comments
Patriot ya ya. Blame blame blame. You have th wrong name on your...
Patriot haha | June 10, 2009 at 3:59 p.m.
I sure hope this doesn't hurt my little fourth graders. The second...
Clare | June 10, 2009 at 11:02 a.m.
What seems so strange to me is that the Legislature sits around and...
Mind Boggling | June 10, 2009 at 9:16 a.m.
- Utah Jazz fall apart against Kings 12:17 a.m.
- 3A football: Tigers pull away 12:12 a.m.
- Editorial: 'Immigrant' children needy 12:12 a.m.
- Reagan, Thatcher and the pope 12:12 a.m.
- Cougars come up short of title 12:11 a.m.
- Colorful observations on ethics, more 12:11 a.m.
- Elections offered few new themes 12:11 a.m.
- Realignment myth of '08 demolished 12:11 a.m.
- Berlin division stronger than ever 12:11 a.m.
- Demos' losses could rise 12:11 a.m.
- Gay advocates trek to LDS office
207 - Dirk does dirty work in Dallas
190 - Lobo suspended
171 - Speed has never been BYU's game
136 - Cougars crush hapless Cowboys
128 - House passes health care bill
111 - RSL rallies to advance
102 - Prep football: San Juan vs. S. Sevier
102 - Thousands protest health bill
100 - Provo company innovating engines
98
Why do so many people live so close to refineries in Utah and elsewhere?
NASA's Stardust probe continues to bring new knowledge about the nature...
Nothing proposed would keep young adults from learning of the reality of sex,...
the only "decent" team we played we lost to? I guess that Air Force isn't a...
I am watching the game again, and it is awesome!!!
I can't help but laugh inside when I read comments from YBU/TCU fans who...
(from the independant) I like Dennis Miller.... and Bill Maher, although I...
As a BYU alumnus, I can't justify to myself ever donating another dollar to...
Not a chance. Don't get me wrong they are both studs, but if Asiata wasn't...
Titan Fan, sorry that some of your best players got hurt. I hope they...
So sad how fear based so many are.
Will the Jazz even make the playoffs this year. The way they are playing it...

