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Utah Legislature approves budget-balancing bill using reserves and CARES funds
Summary
Senate Bill 5001, a sweeping budget-balancing measure that draws on reserves, rainy-day funds and CARES Act money while restoring priority items, passed the House after floor debate on appropriations and cuts.
The House approved Senate Bill 5001 on June 18, a comprehensive appropriations adjustment intended to balance the 2020–21 fiscal year budget amid COVID-19 revenue declines.
Representative Last, the House sponsor, outlined the scope: ongoing revenue shortfalls of approximately $757 million and $93 million one-time, base budget reductions of about $341 million ongoing and $82 million one-time, and restorations for priority areas including Medicaid growth, homeless and affordable housing, mental health services, and a 1.8% increase in the weighted pupil unit for education. The bill draws from multiple reserves, including the public education stabilization account, Medicaid restricted account funds, working rainy-day funds, and $280 million from the Federal Coronavirus Relief Fund (CARES Act). Representative Last described plans to invest CARES funds in education technology and teacher training through the state’s UETN and to allocate grants to hospitals and COVID-response activities.
Members acknowledged the difficulty of drafting the package quickly, praised staff and committee work, and discussed the trade-offs involved in cuts and restorations. Representative Schultz and others emphasized Utah’s relative fiscal strength because of prior reserve-building, while committee chairs noted significant percentage cuts in some areas.
The House recorded a final passage of SB 5001, 73-0, and the bill will return to the Senate for the president’s signature. Representatives noted follow-up work to reconcile statutory language where funding is removed and to track implementation.
Outcome: SB 5001 passed the House with unanimous support; it includes significant use of reserves, changes to statutory funding language where necessary, and CARES Act appropriations for targeted response and recovery efforts.
