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Utah state budget

Utah
Annual
Fiscal Year 2012
GF Revenue


Lawmakers approved the $13 billion Utah state budget on March 8, 2012.[1] It increases spending from the prior year by approximately $440 million.[2] In December 2011, Gov. Gary Herbert proposed a $12.9 billion budget for FY2013, which would increase funding for K-12 education and higher education.[3]

Utah has a total state debt of approximately $24,792,086,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the budget gap. [4]

See also: The Utah State Budget on State Budget Solutions
2011 State spending & deficit in billions[5]
Total spending Health care Education Protection Transport Other
$4.8 $.36 $3 $.39 $0.003 $1
2011 Local spending & deficit in billions[6]
Total spending Pension Health care Education Welfare Protection Transport Deficit
$14.9 $0 $0.3 $4.3 $0.3 $1.1 $1.2 $16.2

[edit] FY2013 State Budget

Lawmakers approved the $13 billion Utah state budget on March 8, 2012.[7] It increases spending from the prior year by approximately $440 million.[8] State revenues are projected to increase by more than $360 million.[7]

The budget does not raise taxes.[7]

The total state debt will drop about $130 million under the plan. Still, the state has about $1,200 in debt for every Utahn.[8]

Highlights of the budget include:

  • a 1 percent raise for state employees, including higher education employees and lawmakers set aside money for school districts to give K-12 teachers 1 percent raises;[7]
  • $87 million more funds than FY2012 for Medicaid to address the increase of Utahns enrolling in the program;[8]
  • $110 million in new funds for public education, including the $41 million the governor requested to cover an enrollment increase of 12,500 students.[8]

Governor's Proposed Budget

On Dec. 12, 2011, Gov. Gary Herbert released his proposed FY2013 budget of $12.9 billion.[9] Highlights of the proposed budget include:

  • $2.5 billion would go to K-12 public education with $111 million in new funding, including $41 million to help cover an enrollment increase of 12,500 students during the next school year;
  • $93 million more in higher education funding.[9]

The budget spends $160 million more than FY2012 on Medicaid, with enrollment in the program expected to grow by 39,000 individuals.[9]

A budget summary released by Herbert shows that state revenues are climbing to $5 billion from a low of $4.2 billion two years ago. The plan does not include any tax increases.[9] The governor asked lawmakers to cut unemployment insurance tax rates for the state’s 85,000 employers, “and allow them to create more jobs and hire more people.”[10]

Lawmakers will discuss the governor's proposed budget when the legislative session opens Jan. 23, 2012.[9]

[edit] FY2012 State Budget

State lawmakers first created the FY2012 state budget with 7% across the board cuts budget based on revenue projections made in December 2010, but the February 2011 projections showed that the state would have more revenue would be higher than expected. Lawmakers then restored money to the base budget that was originally cut.[11]

The $12 billion budget FY2012 is essentially flat, with an additional $50 million proposed for public education and about $37 million for Medicaid growth.[12]

State parks lost $4 million in ongoing funds, but it was replaced with $4 million in one-time money. While lawmakers said they were working to find ongoing funds, it likely won’t be the full $4 million.[13]

Medicaid cost the state $1.8 billion, which is approximately 9 percent of the state budget.[14]

A summary of the budget prepared by the state can be found here.

[edit] Structural Imbalance

The structural imbalance in the FY 2012 budget is approximately $52 million, down substantially from $313 million in FY 2011.[15]

[edit] Education

The Legislature found a way to fund K-12 public education higher than the governor asked, with an increase of $50 million, and it also funded the growth of students in the system, more than 14,000 of them. The budget cuts funding to higher education by 2.5% but said that colleges and universities could make up the difference in raising tuition fees for students.[11] The increase of $50 million includes $34.5 million ongoing and $15.6 million in one-time funds.[15]

[edit] Governor's Proposed Budget

Gov. Herbert's proposed $11.9 billion FY2012 budget addresses $313 million structural imbalance resulting from the end of federal stimulus funds and other one-time sources of revenue primarily by relying on economic growth.[16][17] The Executive Appropriations Committee cut $329 million, which is 7%, from the Governor's proposed budget.[17]

The proposed budget provides almost $3 billion public for K-12 education budget.[17] It also includes a proposed change in income tax collections for the self-employed, expected to generate $130 million.[16]

Governor Herbert said his FY 2012 budget recommendations reflected five key goals:[15]

  • Increase funding for public education
  • Protect critical functions
  • Reduce the structural imbalance
  • Retain a responsible balance in the budget reserve accounts
  • Balance the budget without tax increases

[edit] Budget transparency

In 2008, the Utah State Legislature passed SB 38. The bill proposed the availability of public financial information on the Internet. Additionally it modified notice requirements of the Open and Public Meetings Act. [18] As noted below, Utah's spending transparency website was launched in May 2009.

Criteria for evaluating spending databases
State DatabaseSearchabilityGrantsContractsLine Item ExpendituresDept/Agency BudgetsPublic Employee Salary
Transparent UtahY
600px-Yes check.png
N
600px-Red x.png
Y
600px-Yes check.png
Y
600px-Yes check.png
Y
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P
Partial.png

Although this database does not list information about Utah's contracts, that information has been made available here.

See also: Evaluation of Utah state website

[edit] Budget Background

Utah's fiscal year begins July 1 and ends June 30 of the following year. Every year the state's agencies submit budget requests along with past expenditures and allocations. Usually by December the Governor develops a budget recommendation which is then delivered to the Legislature. Following a series of hearings and discussions the Senate and the House make any necessary changes before approving the final bill. Once the appropriations bills are debated and the Legislature as a whole passes them the bills are signed by the Governor. [19]

By law, the Governor, within three days after the convening of the Legislature in the annual general session, submits a budget for the ensuing fiscal year. However, at least 34 days before the submission of any budget, the Governor delivers a confidential draft copy of his proposed budget recommendations.[20]

John Nixon is Executive Director of the Utah Governor's Office of Planning and Budget (GOPB). The Budget section under the direction of Phillip Jeffery, provides budgetary analyses, reviews program plans and budget details, and prepares budget detail for the annual Governor's Budget Recommendation to the Utah State Legislature. At the conclusion of each general session, analysts summarize appropriations and monitor expenditures throughout the year.[21]

[edit] Accounting Principles

Main article: Utah government accounting principles

The Utah Office of the State Auditor is responsible for state and local audits. The Financial Audit Division is responsible for auditing all state departments, agencies and colleges and universities. The Local Government Division ensures uniform accounting, budgeting, and financial reporting by Utah's local governments. Audit reports for the current year and two prior years are available online. Older reports not listed on their Web site may be obtained by emailing: lsiebenhaar@utah.gov. Auston Johnson has been State Auditor since July 1995 and was re-elected for a four-year term starting January 1, 2009.[22]

The Institute for Truth in Accounting (IFTA) rates Utah “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Utah's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[23] Utah's CAFRs are a publication of the Utah Division of Finance (DAF), a division within the Utah State Department of Administrative Services (DAS). Kimberly K. Hood is Executive Director of the DAS, and John Reidhead is the Director of the Division of Finance, Utah's chief fiscal officer and responsible for exercising accounting control over state departments and agencies except institutions of higher education. DAF responsibilities include:[24]

  • Procedures for the approval and allocation of funds
  • Accounting control over fund assets
  • Approval of proposed expenditures

The Department of Administrative Services (DAS) was created by the Forty-fourth Legislature in March 1981 with passage of the Administrative Services Act. This action was a result of an organizational study of state administrative services by the Governor's Committee on Executive Reorganization (Agency #357).[25]

Credit Rating Fitch Moody's S&P
Utah[26] AAAAaaAAA

[edit] Stimulus

Utah has received $1.5 billion in federal funding.[27]

[edit] Public Employees

Main article: Utah public employee salaries
Main article: Utah public pensions

According to 2008 Census data, the state of Utah and local governments in the state employed a total of 179,899 people.[28] Of those employees, 112,162 were full-time employees receiving a net pay of $445,209,194 per month and 67,737 were part-time employees paid $60,442,587 per month.[28] More than 60% of those employees, or 108,104 employees, were in education or higher education.[28]

[edit] External links

[edit] Additional reading

[edit] References

  1. ↑ The Daily Herald "Mostly quiet Legislative session concludes March 9, 2012
  2. ↑ The Salt Lake Tribune "Budget grows as state shakes off recession" March 9, 2012
  3. ↑ Businessweek "Utah governor unveils $12.9B budget proposal" Dec. 12, 2011
  4. ↑ State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
  5. ↑ Summaries/FY2011_SumBk.pdf Office of the Governor, Budget FY2011
  6. ↑ USA Spending, State Guesstimated* Government Spending
  7. ↑ 7.0 7.1 7.2 7.3 The Daily Herald "Mostly quiet Legislative session concludes March 9, 2012
  8. ↑ 8.0 8.1 8.2 8.3 The Salt Lake Tribune "Budget grows as state shakes off recession" March 9, 2012
  9. ↑ 9.0 9.1 9.2 9.3 9.4 Businessweek "Utah governor unveils $12.9B budget proposal" Dec. 12, 2011
  10. ↑ Businessweek "Governors Seeking Jobs Offer Tax Breaks as Budget Woes Ease" Jan. 31, 2012
  11. ↑ 11.0 11.1 The Daily Herald "State budget done, cuts not as deep as once expected" March 11, 2011
  12. ↑ Washington Examiner "Utah budget mostly flat, won't tap reserves" March 5, 2011
  13. ↑ KCPW.org "Higher Ed, Parks Lose Funding in Latest Budget Plan" March 8, 2011
  14. ↑ The Salt Lake Tribune "Utah’s Medicaid not the budget-buster you might think" Aug. 24, 2011
  15. ↑ 15.0 15.1 15.2 Governor's Office of Planning and Budget
  16. ↑ 16.0 16.1 The Deseret News "2011 Legislature: Budget, immigration biggest legislative issues" Jan. 23, 2011
  17. ↑ 17.0 17.1 17.2 The Deseret News "Utah legislative leaders slash 7 percent from state budget" Jan. 25, 2011
  18. ↑ State of Utah, "Performance Elevated," retrieved April 7, 2009
  19. ↑ Governor's Office of Planning and Budget,"Budget Process," retrieved April 7,2009
  20. ↑ National Association of Budget Officers, "Budget Processes in the States," 2008
  21. ↑ Utah Governor's Office of Planning and Budget Web site, retrieved November 16, 2009
  22. ↑ Utah Office of the State Auditor Web site, retrieved November 16, 2009
  23. ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  24. ↑ Utah State Department of Administrative Services Web site, retrieved November 16, 2009
  25. ↑ Utah State Department of Administrative Services Web site, retrieved November 16, 2009
  26. ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
  27. ↑ Recovery, "Stimulus Spending by State"
  28. ↑ 28.0 28.1 28.2 2008 Utah Public Employment U.S. Census Data
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