Utah coffers are bursting at seams

Already flush with new money to spend, state leaders Monday received additional revenue estimates that will boost both their financial budgets and their political relationships.

State budget experts issued revised — and significantly increased — revenue projections for the coming year, adding an additional $48 million in one-time cash surpluses and $74 million in ongoing monies. Altogether, the state now has $398 million in new, ongoing revenues and $285 million in one-time surpluses for a record-setting total of $683 million.

Almost every legislative session, lawmakers and the governor look longingly to the mid-February revenue estimates as a way to bail themselves out of pending budget crunches. Historically, a few million — maybe even $10 million or $20 million — is found, and a collective sigh can be heard from Capitol Hill.

But Monday's surprise announcement — leaders were hinting last week that Monday's update would be meager — is unprecedented.

The new, ongoing funding alone covers the $70 million in transportation funding legislators approved last week as part of HB1, despite the fact that the amount is more than double the amount proposed by Gov. Jon Huntsman Jr. in his budget. In fact, the new revenue projections may have solved any looming disputes about whether roads, state employee salaries or new building construction should take precedence in the state's budget.

"Yes, it relieves tension," House Speaker Greg Curtis, R-Sandy, said after the new estimates were announced, trying hard not to break into a smile.

The new estimates add to revenue that no Legislature in Utah has ever seen before, something that worried Curtis. With government growth around 10 percent during the coming fiscal year, he said legislators need to "take a breath" and consider what could happen if lawmakers do not exercise caution.

At the same time, Curtis said he expects the House Republican caucus will now support the $95 million in ongoing funding for transportation recommended by the appropriations subcommittee.

Jason Chaffetz, Huntsman's chief of staff, said the governor will meet with legislative leaders today and is "playing with different scenarios and possibilities" for the new money. He was also open to spending even more on transportation but is also still very focused on his other priorities, such as market adjustments for state salaries and education projects, according to Chaffetz.

"With more money on the table, it opens up more possibilities," Chaffetz said. "Nobody ever gets everything they want. We recognize that."

Instead of releasing a new budget proposal or setting specific amounts for spending, Chaffetz said the governor's office would work with the Legislature to get their priorities funded. While saying "transportation is a priority for us," he also cautioned that "there shouldn't necessarily be a rush to spend" all of the new revenue. The state also should look at increasing the amount transferred to places like the rainy day fund, he said.

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