Officials project $47M new revenue for budget, but it won't be enough to restore cuts

SALT LAKE CITY — State tax revenues are expected to climb another $47 million in the upcoming budget year, lawmakers learned Tuesday, on top of the $216 million in growth already projected.

And after several years of budget shortfalls due to the economic downturn, there's also supposed to be another $31 million left over when the current budget year ends June 30.

While that's good news, there's still not going to be enough money available to restore cuts already made in the preliminary base budget and pay for new public school students.

That means Gov. Gary Herbert isn't likely to get what he asked for in his $11.9 billion budget for the new fiscal year that begins July 1, a spending plan that counted largely on continued economic growth.

The Legislature's GOP majority, on the other hand, is saying the eagerly awaited new revenue numbers show their decision to slash 7 percent from the governor's budget was the right one.

The cut was intended to take care of the so-called structural imbalance in the budget, a $315 million hole left as a result of federal stimulus funds and other one-time monies no longer being available.

Utahns appear to agree with the Republicans in the Legislature, not the Republican in the governor's office.

A new Deseret News/KSL poll found that 52 percent of Utahns surveyed said they favored budget cuts, while 37 percent preferred the governor's plan to keep current levels of spending intact.

Conducted by Dan Jones & Associates Feb. 8-10, the poll of 496 Utahns has a margin of error of plus or minus 4.4 percent.

Senate President Michael Waddoups, R-Taylorsville, said the public "realizes we're not about to do away with essential services." Utahns, he said, understand from their own experience the need to cut budgets.

GOP lawmakers have insisted since before the session began in January that the governor's budget had to be cut across the board, at least to start.

Herbert complained publicly that the base budget process was "convoluted" and could have been avoided if lawmakers were more optimistic about the economy.

House Speaker Becky Lockhart, R-Provo, said she felt the Legislature's approach towards building a budget was vindicated by the new numbers.

"Absolutely I do," Lockhart said. "We're not going to apologize for that. It's a good process."