Big surplus sets record in Utah
Huntsman, legislators looking to boost the promised tax cut
The Utah Tax Commission says the state ended its fiscal year June 30 with a $351 million tax surplus in the state's two main revenue funds. That is twice the size of the last largest surplus, a $172 million whopper seen in July 2005.
The large surplus now in state bank accounts "highlights Utah's strong economy," says Mike Mower, spokesman for Gov. Jon Huntsman Jr.
It's too early to decide how to spend all that extra money, Mower said. But Huntsman will have specific suggestions when his 2006-07 budget is released in early December.
However, Huntsman told the Deseret Morning News last week the large surplus makes him more comfortable with increasing the already-promised state income tax cut from $70 million to around $115 million. And he's willing to have a special session this fall to give an income tax cut in the 2006 year.
Senate President John Valentine, R-Orem, likewise likes the surplus numbers he's seeing.
"It shows we in Utah have very good employment — most of the surplus comes in personal and corporate income taxes," Valentine said.
Meanwhile, Rep. Greg Hughes, R-Draper, who chairs the new "conservative caucus" in the Utah House, says a state spending limitation law will allow legislators in the coming 2007 general session to "only spend around $12 million more" in non-education, non-transportation areas.
"We need to give this money back" to taxpayers in some form, Hughes believes.
The extra cash, the state spending limitation law, and a desire to cut and reform state income taxes can lead to a perfect political storm — and show the true nature of Republicans and Democrats on fiscal responsibility, Hughes believes.
Utahns' money
The newspaper reviewed the past 13 fiscal years of state government tax collection, which shows that through conservative revenue estimates, combined with at least some attempt at holding state government growth, most years the state has ended its budget years with surpluses — although considerably smaller piles of money than in the past two years.
Even after Huntsman and Republican legislative leaders decided to give taxpayers at least a $160 million tax cut this coming year, state leaders approved a 2006-07 General Fund and Uniform School Fund budget that grew by more than 17 percent.
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