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Utah Geological Survey reports budget gap; agency seeks limited use of restricted funds to cover shortfall
Summary
UGS staff reported a mid‑year forecast shortfall tied to volatile mineral lease revenue and state pay-for-performance costs. The agency said it will request legislative authority to spend up to $700,000 from its restricted account and described other internal measures to reduce spending.
The Utah Geological Survey told its board on Jan. 15 that a combination of lower-than-expected mineral lease revenue and state pay-for-performance obligations left the agency facing a fiscal shortfall for the current year.
UGS staff said the agency expects to ask the Legislature this session for permission to spend up to $700,000 from a UGS-restricted account to cover the gap and smooth its operating budget. That restricted account was created under Senate Bill 133 (2021) and contains mineral lease and severance-tax receipts set aside for UGS use.
Budget details and drivers: UGS presented a mid-year forecast showing a possible shortfall driven by three main factors — a drop in mineral lease receipts relative to earlier projections, state pay-for-performance obligations the Legislature expects agencies to pay but which are only partly funded from general funds, and an administrative error that caused the agency to lose a data-preservation grant application.
Agency staff described other actions to reduce the gap, including delaying some hires, trimming capital and out-of-state travel, pushing back nonessential equipment purchases, tightening grant match assumptions, and ensuring grants are fully budgeted and billed. The agency also said it planned to reduce growth in proposals that would increase match obligations until more match funding is secured.
Data‐preservation grant: UGS staff told the board that a large federal/state data-preservation proposal planned for fiscal 2026 — described in the meeting as approximately $900,000 in total project work — was disqualified during the application process because the wrong file was attached. That award would have required a local match; UGS staff said the loss was significant for planned equipment and program work for FY26.
Board votes taken: The board voted to approve the minutes of its Aug. 7, 2024 meeting and to formally ratify project proposals that had been previously approved by email since the last meeting. Both routine motions passed by voice vote with members saying “aye.”
Next steps: UGS leadership said they would ask the Legislature for permission to use restricted funds as needed to cover the shortfall for FY25, and will continue to pursue internal cost reductions and improved grant administration to prevent future shortfalls.
Agency staff emphasized they intend the restricted-account draw as a temporary, one-year measure and described work underway to make the agency’s revenue and expenditure timing less volatile in future budgets.
