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By Lyle Hillyard
Senate Chair of Executive Appropriations

Last Tuesday, at Executive Appropriations, we heard a report on Utah’s economy and the impact it will have on state revenues come January when the session begins. According to our analyst, we can expect from $250.0 M and $400.0 M in new ongoing revenue beginning in FY 2009, due to economic expansion in the current fiscal year.

Collections from personal income tax continues to grow, which means more people are working and generating more personal income. Sales tax has also increased. Home sales have slowed but that loss has been compensated by the growth in commercial building. Commercial buildings do not have the 45% discount in value like homes, which bodes well for future property tax payments thus helping local schools with building needs. The Governor and our Fiscal Analyst will announce the exact figures for sales and income tax revenues in the middle of December.

This will, again, raise the issue of our spending cap. The cap was enacted in the mid-90's to insure that government does not grow faster than inflation and population. We don’t know the new spending cap but the Governor and our Fiscal Analyst will make estimates mid-November, with final figures determined at the first of February. This always raises the question of whether or not we need a spending cap. Revenue expended in public education or one-time spending for roads and buildings are excluded from consideration. I will keep you updated as more information becomes available.

1 Comments:

 Anonymous said...

"This always raises the question of whether or not we need a spending cap."

I hope the good Senator is kidding! The rest of the world lives with spending constraints. Having a government without them is asking for trouble.

10/24/2007 7:40 AM  

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