Gas prices pinch budgets
Utah governments forced to fund the big increases
Already, state officials are looking at boosting the state budget next year by nearly $685,000 to make up for the increase in gas costs.
"We're some weeks away from putting our budget together, but I can tell you this, that energy prices as high as they are will affect costs across the board. There's no doubt about that," Huntsman said during the taping of his monthly news conference on KUED Channel 7.
And rising fuel costs are hitting governments throughout the state as well, forcing city and county officials to bump up budgets, scrutinize vehicle use and perhaps cut back on social programs that rely heavily on transportation.
Provo added $150,000 to its 2005-06 budget to deal with projected fuel costs, but less than two months after passing the new budget, city officials realize it isn't nearly enough. By the end of the year, the city is expected to spend $60,000 in excess of its gas budget.
In July the city was $5,000 over budget, said Scott Peppler, manager of Provo fleet maintenance.
"We tried to anticipate rising fuel costs in our budget," Provo finance director John Borgut said. "We tried to think worst-case scenarios. But because prices continue to go up, we'll just have to become more efficient in other areas to offset those rising costs."
"But the way the price is escalating, that won't cut it alone," Peppler said.
Borgut said the city is evaluating the need of each of the 450 gas-fueled vehicles in its fleet. The evaluation includes how to limit the mileage of those vehicles.
Jim Reams, Orem's city manager, said, like others, the city is struggling with the increased costs but added, "You gotta let the officers drive around and patrol. You gotta let the water guys go out."
The governor said his office is looking at ways to make the state fleet more efficient, including switching to alternative fuels.
That will be one of the first duties of his new energy adviser, Laura Nelson, when she starts work next month. She'll look for waste, Huntsman said, "so we can operate government more efficiently from an energy-consumption standpoint."
Steve Saltzgiver, state director of fleet operations, is already passing along fuel-saving tips to the government agencies that use the more than 3,700 cars he manages. "It's very frustrating," Saltzgiver said, remarking on the steady rise in gas prices.
Getting rid of some of the gas guzzlers in the fleet is a possibility, especially if fuel prices continue to climb. Saltzgiver said vehicles that run on alternative fuels cost about $6,000 more than a regular sedan, making them cost-effective only if gas hits $3 a gallon.
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