Leavitt proposes $201M budget, introduces 'boom buffer' to restrain use of temporary growth

Governor Michael O. Leavitt on the floor of the Utah Legislature outlined a budget built on $201,000,000 in newly available revenue and proposed what he called a “boom buffer” to prevent temporary construction-driven gains from becoming permanent obligations. “I call this financial tool a boom buffer,” Leavitt said, explaining the state would reserve part of growth revenues until those receipts prove sustainable.

Leavitt said the revenue picture allows $128,000,000 in ongoing commitments, roughly $22,000,000 in normal one-time investments (he proposed doubling the one-time amount to $43,000,000), and $30,000,000 to replenish a rainy day fund used earlier. He said the budget contains no tax increases. “This budget contains no tax increases,” Leavitt said.

The governor framed the buffer as twofold: to fund prevention and strategic, one-time investments now and to avoid having to make deep cuts if temporary revenues fall away. He said about $51,000,000 of the $201,000,000 was identified as possible ‘‘boom’’ revenue tied to construction and one-time activity and that restraining commitments from that pool would protect the state from future volatility.

Leavitt also proposed administrative changes to budgeting: allowing departments limited non‑lapsing authority so agencies that achieve savings could carry them forward for reinvestment, and setting aside $4,000,000 unallocated to cover legislative fiscal notes on bills lawmakers advance.

Leavitt said sustained economic growth could allow future tax reductions, but he urged caution. “I would want to feel as though we had a very clear and secure picture of where we are financially before I would be prepared to advocate any such move,” he said.

The governor invited collaboration and review of the detailed budget documents to be provided to legislators in January.