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New revenue projections reduce Utah’s FY2002 outlook by about $31.8 million
Summary
Fiscal analysts presented revised revenue estimates showing an approximate $31.8 million reduction, a $35.4 million fall in the Uniform School Fund and an overall projected decrease near $33.1 million for the 2002 budgeting period; lawmakers expressed concern about education funding and held tax-cut/education protection items in reserve.
The Utah House received updated state revenue projections on Feb. 15 that reduce the Legislature’s FY2002 outlook by roughly $31.8 million and show a $35.4 million drop in the Uniform School Fund.
Representative Alexander distributed the new figures to members and explained that the largest declines were in the Uniform School Fund and withholding (income-tax-related collections). “The bracket at $31,800,000 — that is the reduction that we will see in the revenue projections,” Alexander said, noting offsetting one-time increases but an overall downward revision of near $33.1 million for the budget period.
He told members that withholding rates have fallen (from 8% last year to about 6% in the most recent data), capital-gains and business investment have slowed, and construction activity has softened — all factors behind the downward revision. Members asked whether previously discussed set-asides — for an education-protection fund and tax cuts — remained on the table; Alexander replied those items were still being held pending further work.
Representative Buffmeier used the floor to warn that education funding could be in jeopardy and urged colleagues to review available resources and bills that affect school funding. The new projections were delivered to members to inform appropriations and prioritization work in committees.
Next steps: Appropriations committees and leadership will use the revised figures in ongoing budget prioritization; lawmakers signaled further review of education-related allocations.
