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Senate report raises state revenue outlook; one-time receipts jump to about $78 million
Summary
Senator McAllister presented revised fourth-quarter revenue estimates that increase projected one-time receipts for June 30, 1994, to about $78 million and add roughly $32 million in ongoing revenue for 1995, driven largely by sales-and-use taxes; senators noted options including reduced bonding, tax cuts, or redirected earmarks.
Senator McAllister told the Utah State Senate that updated fourth-quarter collections have improved the state’s revenue picture, raising projected one-time revenues for the year ending June 30, 1994, from about $53 million to roughly $78 million.
McAllister said sales-and-use taxes accounted for the largest share of the increase, with insurance, tobacco, and corporate franchise taxes contributing additional amounts. He said the analysts’ estimates and the governor’s figures were ‘‘almost exactly the same,’’ and warned senators to be cautious about assuming the gains are permanent.
The senator said revised estimates also add about $32 million in ongoing revenue for the 1995 fiscal year, largely from continued strength in sales-and-use taxes and a modest rise in personal and corporate tax collections. ‘‘People of the state have been willing to spend and I expect in some cases borrow and spend,’’ McAllister said in presenting the numbers.
Lawmakers responded that the additional revenue creates a range of policy options — including using money for one-time projects, lowering taxes, or reducing planned bond issues. McAllister noted the governor had proposed moving $43 million of ongoing funds into one-time projects and urged caucus discussion to decide whether to revise allocations before the executive appropriations meeting scheduled the next day.
Next steps: the executive appropriations committee was scheduled to meet the following afternoon to identify one-time allocations and send subcommittees recommendations for detailed work later in the week.
