Utah's just one of 19 states that didn't raise taxes

Utah was one of only 19 states that didn't increase taxes this year in the face of huge budget shortfalls, a new national study shows.

But should Utah lawmakers decide to raise the state's tobacco and alcohol taxes next year, it won't be alone. Thirteen states raised their tobacco taxes this year and five states raised their liquor taxes, a study prepared by the National Conference of State Legislatures released Monday shows.

A third of the Utah Legislature is in Philadelphia this week for the annual NCSL conference, where various issues facing states are being discussed.

Top on the list is the financial crisis many states face, with perhaps the worst being California, where Democratic and Republican lawmakers can't agree on a budget fix and the state began issuing writs of debt several weeks ago instead of payment checks.

Final numbers are being prepared on just how Utah ended the June 30 fiscal year. Estimates predicted the state could end the year with a $40 million surplus, or a $40 million deficit.

But even that larger debt number dwindles to the $700 million budget gap Utah lawmakers could face come their January general session.

And GOP legislative leaders have talked about raising the tobacco and/or alcohol taxes to help close that gap — along with spending hundreds of millions of dollars out of the state's Rainy Day fund.

The new NCSL report shows just how well Utah state government has been managed over recent years compared to other states, even with the belt-tightening Utah lawmakers had to do earlier this year.

The state still has a AAA bond rating (one of the few in the nation) and still has $417 million in the Rainy Day fund.

Public schools face a 4 percent budget cut this coming fall, while other state programs were cut around 7.5 percent for the new fiscal year that started July 1.

But large state employee layoffs were avoided, although workers didn't get a pay raise this year.

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