Utah legislators hear $453 million in new ongoing revenue; lawmakers outline distribution and risks

Representative Last told the House on Feb. 20 that the state’s consensus revenue forecast had improved since December, leaving about $453 million in new ongoing revenue and $128 million in one-time funds available after base-budget reductions.

The lawmaker, speaking during morning floor business, said earlier adjustments included an $85 million repayment to the rainy-day fund, $67 million for staged building funding, an $18 million firefighter retirement fix, and a $3 million tourism-marketing statutory increment. After those moves and committee reductions, he said there remained $292 million of ongoing money and $12 million of one-time money available before the appropriations process; further work by economists added another $126 million ongoing and $83 million one-time, producing the $453 million/$128 million totals.

Last said $65 million of the new ongoing revenue is attributed to the general fund and $61 million to the education fund. Of the new one-time revenue, he said $28 million is general fund and $55 million is education fund. He cautioned the numbers do not yet reflect potential impacts from federal tax changes, which he put in a wide range between $25 million and $80 million.

Why it matters: Those totals set the baseline available for lawmakers as they consider tax adjustments, possible tax cuts and spending priorities during the remainder of the session. Last framed the update as a welcome improvement compared with last year’s available revenue and urged fiscal prudence given uncertainties around federal policy.

Representative Last concluded his remarks by noting the senate had received similar updates and that appropriations work would follow in committee and on the floor.