Legislature has nearly $600 million to spend — on what?

By Bob Bernick Jr.
Deseret Morning News
Published: Thursday, Jan. 13, 2005 11:57 p.m. MST
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The 2005 legislaturestarts Monday. And it's one of the rare chances for a new start in state government.

We have a new governor, Jon Huntsman Jr.

We have a new speaker of the House, Rep. Greg Curtis, R-Sandy.

And we have a new president of the Senate, Sen. John Valentine, R-Orem.

They take over a state government that has been fairly well run. We have not seen monetary scandals, big or small, like we had in Salt Lake County in 2004.

During the past decade, state government has, on several occasions, been singled out for praise by various magazines or government watchdog agencies.

And citizens should be pleased with those good-government awards.

While other, larger states saw huge revenue shortfalls and fiscal crises in the early 2000s, Utah government trimmed back a few programs, installed some hiring freezes, didn't give state workers much in the way of pay raises, and then drained the Rainy Day Fund — getting through our financial problems here without tax hikes or mass layoffs.

Compared to California and other states, Utah was well prepared for the fiscal crunch. But there are clearly tough times ahead here.

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More than 140,000 new kids are headed for our public schools. The prison population, steady or even in decline the past decade, is on the rise again. As the federal government sees huge deficits coming, money coming back to the states continues to dwindle, meaning Medicaid and Medicare programs cost state government more each year. And the cost of a public college education rises year after year much faster than inflation.

So, in comes the new governor and legislative leaders to find — what?

More than $370 million in estimated new tax revenue growth and around $237 million in one-time cash surpluses. In short, state government is back in the money. And in the Legislature, it's always more fun to deal with surpluses than revenue shortfalls.

I remember one year in the mid-1990s. Marty Stephens, who just retired as House speaker, was then the House budget chairman. He walked to the blackboard in the GOP caucus room and wrote down some numbers, stepped away and told his fellow Republicans that they had just over $500 million in new tax revenues and one-time surpluses.

A hush fell over the legislators. Here were supposed fiscal conservatives who had half a billion dollars to spend.

Well, it being an election year and all, they gave a $90 million property tax cut.

This year — if the estimates and one-time surplus numbers are accurate — the Republican-controlled Legislature, with a GOP governor, will have nearly $600 million in tax revenue growth and one-time surpluses.

But there will be no talk of tax cuts this year, both Huntsman and GOP legislative leaders say. No talk, that is, of a general tax cut — no reduction in the tax rates for property, personal income or sales taxes.

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