Fiscal analyst presents revised revenue estimates showing modest net increases for 1997–98

Fiscal analyst Mellett told the Utah House on Feb. 18 that revised revenue estimates show limited one‑time gains for the current fiscal year and larger, ongoing increases for the next. "We have prepared revised revenue estimates for the legislature for the rest of this session for fiscal year 1997 and fiscal year 1998," Mellett said, summarizing a packet members received.

Mellett reported a net, one‑time increase of $3.1 million to the general fund for FY1997 after upward revisions to sales tax and other receipts and downward revisions to severance and inheritance taxes. For the Uniform School Fund, he said individual income tax receipts were higher than projected by about $10 million in FY1997, producing an $8.1 million net adjustment to that fund. Taken together, the two funds showed an estimated $11.2 million increase for FY1997.

For FY1998, Mellett said sales taxes and gross‑receipt collections were expected to rise and that the combined total for the general fund and Uniform School Fund would increase by an estimated $14.4 million, with the FY1998 components largely ongoing.

Members questioned the nearly simultaneous drop in permanent‑fund interest distributions. Mellett attributed the short‑term decline to decisions by the permanent‑fund committee to use more proceeds for property rehabilitation and development; he said this could raise long‑term returns but depress near‑term interest available for distribution.

Representative Stevens moved the House into the Committee of the Whole to hear the briefing and later thanked the analysts after members recessed to other business. The analyst offered to answer additional questions as members examine budget priorities during the session.