Senator Hilliard warns sequestration, revised revenue estimates will squeeze Utah budget

Senator J. Hilliard briefed the Utah Senate on updated budget projections, saying staff no longer expect the revenue assumptions the Legislature used when preparing for the session and that sequestration scheduled for March 1 was now built into staff models.

Hilliard said the November figures had assumed "$300,000,000 ongoing, dollars $121,000,000 one time," but that those estimates rested on policy assumptions that had not occurred. He called attention to a "$25,000,000 structural imbalance in public education" that arose after growth figures were revised, and warned that blending ongoing and one-time funds could mask fiscal risks.

In response to Senator Valentine’s question about federal cuts, Hilliard and staff described earlier estimates of roughly $78,000,000 in federal pass-through money and more recent figures ranging down toward $39,000,000 identified in the state budget. Hilliard emphasized uncertainty about the local impact of federal cuts and the "psychological impact" if federal furloughs or program reductions occur. He said the Senate would meet with appropriations subcommittee chairs to determine where state resources should be prioritized.

Hilliard said the Legislature has one-time surplus cash that should allow it to finish the year but cautioned that "we'll be watching the figures very closely" and that staff would continue updating lawmakers as federal and revenue assumptions change.

The chamber did not take final budget votes during the morning session; Hilliard invited questions and told members staff would provide more detail in upcoming meetings.