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By Lyle Hillyard
Senate Chair of Executive Appropriations

There have been hopes raised at the release of the year-end TC 23 showing that we have a small surplus in all three funds that things are turning up. I hope that is true, but I have learned over the years that all TC-23’s except the last one where they include the entire year end adjustments which is released near the end of August show 95 percent of our cash flow and don’t always give a true picture of the revenues for budgeting purposes. Until we know the remaining five percent of revenues, along with adjustments and expenditures, it is too soon to declare a surplus. It is always better to show a surplus for the state than a negative amount but let's not spend any of this surplus just yet.

First, the transportation fund. We budget based on the money coming in. If it comes in as projected, the projects listed are funded. If it is low, UDOT just cuts back on the projects. If there is a surplus, they move on to other projects that have been listed if that occurs. Sometimes projects come in under budget and that may allow them to go further down the list. $10.0 M additional money will be very helpful and may well stand but will not impact the other budgets where we are grateful are not down.

Second, the general and education funds. Our staff tells us that when the necessary transfers are made out of those funds, and the final corporate tax adjustments are made, this surplus may well be gone. I know the Governor’s staff has been working with agencies to see that they do not spend any balances at the end of the year which are not absolutely necessary to help cover these transfers. Hopefully it will come out even. If there is a small shortfall, we have provided for the Department of Finance to cover those with fund balances set to be used for next year’s budget so we will end up balanced but down a small amount for FY 2010 which we can cover in January. If there is a small surplus, I can assure you that there will be many urgent requests for the money.

Welcome aboard Governor Herbert. This will be another challenging year.

3 Comments:

 marry said...

This post has been removed by a blog administrator.

11/25/2009 10:35 PM  

 The Senate Site said...

Sorry "Marry Davidson" - that looks a lot like spam.

11/26/2009 12:37 AM  

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