Analysts present budget reduction options and new funding requests, highlight DABS compensation issue

SALT LAKE CITY — Staff from the Legislative Fiscal Analyst Office and the Office of the Legislative Financial Analyst outlined a menu of potential budget reductions and new funding requests on Wednesday, including consensus sweeps, agency-specific one-time balances and larger policy choices for the Economic and Community Development Subappropriations Committee to consider.

Analyst Josh Pittman described the reduction options available under “related links” on the committee web page. He identified two “consensus” reductions staff had coordinated with agencies: an approximately $133,000 carryover in an unemployment insurance account and remaining balances in an education savings incentive program. Pittman also listed nonconsensus options for committee consideration, including a $1,000,000 balance tied to a previously appropriated Utah Museum of Contemporary Art façade project and a possible 5% across-the-board reduction to CCE pass-through grants.

Gary Siefers (LFA) walked committee members through additional options and said staff had flagged a mix of one-time and ongoing items for discussion. He used the Department of Alcoholic Beverage Services (DABS) as an example: staff listed an $85,000,000 one-time item and $2,000,000 ongoing figure connected to the agency’s warehouse and operations and noted recent adjustments in consumption and sales that may affect revenue forecasts. Senator Darren Owens asked whether cuts or changes to that item would affect employee turnover; staff acknowledged turnover savings and staffing implications would need to be considered if the committee adjusted the base funding.

Staff also summarized new funding requests on the committee’s list. Items raised included: $2,000,000 one-time for arts and museums operating grants (to restore the pool toward $6,000,000), $2,000,000 one-time to continue the 1 Utah service fellowship and a $500,000 one-time request for America 250 programming. The analysts called attention to several requests that rely on specific fund sources and legal restrictions: Workforce Services administers about $1,000,000,000 in federal funds that flow through programs such as SNAP and TANF, and Pittman said the department had requested ongoing TANF funds for homeless services despite a statutory expectation that TANF is used for one-time items. Staff also raised questions about a governor-requested summer meals item proposed to be paid from the public education stabilization account; education staff have concerns about whether that restricted account legally covers the program.

Analysts said the reduction list is a starting point for committee discussion and that agencies will present their cases during upcoming meetings. They emphasized consensus items could be taken immediately if the committee chose to do so and that staff can make the technical calculations required to change amounts or convert one-time funding to ongoing funding if members direct them to do so.