FY 2019 Utah Governor's Budget Recommendations

BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS

Budget
BUILDING ON SUCCESS BUILDING and Policy
ON SUCCESS Investments
BUILDING ON SUCCESS BUILDING ON SUCCESS
for Utah Life Elevated 2020
BUILDING ON SUCCESSGovernor Gary
BUILDING ON SUCCESS R. Herbert
BUILDING ON SUCCESS BUILDING ON SUCCESS
BUILDING ON SUCCESSBudget
BUILDING ONRecommendations
SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS
FISCAL YEAR 2019 SUCCESS
BUILDING ON SUCCESS BUILDING ON FISCAL YEAR 2018ON
BUILDING SUPPLEMENTALS
SUCCESS BUILDING ON SUCCESS
Budget and Policy Investments for
Utah Life Elevated 2020
Life Elevated 2020

Effective & Efficient Government Qualified Workforce
Affordable, Thriving Communities Equitable & Competitive Revenue

Utahs unparalleled population and economic growth are key contributors to the life elevated experience. Ensuring that
growth translates to accessible opportunities requires careful forethought and a willingness to face challenges head on. Life
Elevated 2020 is a collaborative, statewide growth strategy to further enhance the prosperity and quality of life of all Utahns.
This budget not only considers how to spend new revenue but how well the state is maximizing existing resources.
$16.7 billion
One of only nine balanced budget $575 million
states to maintain rainy day balances
AAAbond
rating
$382 million
new ongoing money
$102 million
In new one-time funds after $35 million deposit to rainy day funds
$276 million -- Education -- $9 billion

new ongoing money total budget for education
for education 72% ofgoing
new revenue
to education (state, local, federal)
Through year 3, reached 67 percent of Governors 5-year goal of
$1 billion for public education and $275 million for post-secondary education
K - 12 Post-Secondary Education
$208 million in new funding $102 million in new funding ($68 million
ongoing and $34 million one time)
$170 million increase Increase of $33.2 million for USHE
in flexible, local education funding compensation (including $8 million to avoid
mandatory tuition increases) and a flexible
Weighted Pupil Unit (WPU) increase of $121 funding increase of $24 million
million (4%) allows local school boards flexibility Increase of $1.7 million for technical college
to focus on local investments for: compensation, a flexible funding increase of
Professional development $7 million, and $0.7 million for new O&M
Teacher salary increases 2018: the Year of Technical Education
Technology development Objectives
Counseling Dramatically increase completion
rates while lowering cost per-student
Amount equal to a 1.6% WPU increase
Lead the nation in students completing high-
$34 million WPU add on for children at risk of
quality technical education
academic failure
Ensure access and equity to include 1st
$25 million ($14.8 million ongoing and $10.2
generation and non-traditional students
million one time) for property tax equalization
Support training programs for sectors
Enrollment growth of 7,700 students experiencing skill gaps and labor shortages
improve alignment between graduate skills and
$36 million workforce needs
Budget and Policy Investments for
Utah Life Elevated 2020
Air Quality Water Transportation

Utah Division of Air Executive Water Finance Re-emphasis on users
Quality has set an Board established by the paying for transportation
ambitious goal to reduce Governor in 2017 to costs according to use
annual statewide per conduct financial and $1.9 billion total
capita emissions by 25 economic reviews of transportation budget
percent by 2026 state-funded water (including highway debt
$500,000 to conduct projects service)
Utah-specific air quality Received water strategy Allow flexibility to use
research recommendations Transportation
$350,700 for air quality $1 million to better Investment Funds (TIF) for
personnel in areas with measure and study all modes of
heavy backlogs and agricultural water use transportation to ensure
unmet needs $8.4 million for dam transportation projects
Recognize connection safety upgrades with the best return on
between transportation, $305,000 for algal bloom investment prioritized
land use, and air quality costs
Social Services Tax Modernization SUCCESS

Rigorous review of Modernize the tax code Improve the quality
suicide prevention for all taxes of government while
programs Reduce the state sales bending the cost
$21.5 million tax rate and broaden curve
for Medicaid consensus the base in a way that 27% improvement in
items reduces unfair performance over
$ loopholes and creates
$ a
$3.7 million the past 5 years
for Accountable Care more sustainable SUCCESS+ identifies
Organization rate revenue model to meet ambitious projects to
increases Utahs critical needs enhance the quality
$10 million one-time (such as education) of life for the citizens
for Operation Rio Grande Re-emphasize user fees of Utah
and reduce earmarks
Rural Utah Capital Development

Create 25,000 jobs by 2020 New buildings: Department of
$2 million to rural school districts to meet Agriculture, Nephi National Guard
unique educational needs Armory, Davis Applied Technology Allied
$1.5 million in tourism marketing funds for Health building
tourism development in under-served Pre-committed buildings: U of U
areas Hospital, Dixie State Human
$10 million to improve and expand state Performance building, Weber State
park system and $5 million to the Outdoor Social Science building
Recreation Infrastructure Grant Program $5.9 million to improve Olympic venues

TABLE OF CONTENTS
LifeElevated2020.........................................................................................................................................1
GovernorsBudgetOverview........................................................................................................................7
InvestinginWhatWorks.............................................................................................................................15
PostSecondaryEducationandaSkilledWorkforce...................................................................................19
TransportationandLandUse......................................................................................................................25
TaxModernization:ACalltoAction...........................................................................................................31
PrudentFiscalManagement.......................................................................................................................37
RevenueEarmarks......................................................................................................................................39
Table1:EarmarksandSetasides...............................................................................................................41
Table2:GovernorsBudgetRecommendationsforEducation..................................................................42
PublicEducationPriorities..........................................................................................................................43
PublicEducationFundinginUtah...............................................................................................................49
Table3:MinimumSchoolProgram............................................................................................................52
SocialServiceProgramsandSupport.........................................................................................................55
Corrections,PublicSafety,andRecidivism.................................................................................................61
AirQuality...................................................................................................................................................65
Water..........................................................................................................................................................69
RuralUtah...................................................................................................................................................75
CapitalInfrastructureandBonding.............................................................................................................79
Table4:GeneralObligationandRevenueBonds.......................................................................................83
MajorRevenueSources..............................................................................................................................85
Table5:November2016ConsensusRevenueEstimates...........................................................................90
Table6:RecommendationsforGeneralFundandEducationFund...........................................................91
Table7:RecommendationsforStatecollectedFunds...............................................................................93
Table8:RecommendationsforAllSourcesofFunding..............................................................................97
Table9: RecommendedAdjustmentsbyAgencyEducationFundandGeneralFund...........................101
Table10:RecommendedAdjustmentsRestrictedFundsandFeeCollections......................................107
Table11: FundingReallocations...............................................................................................................111
GovernorsOfficeofManagementandBudget(GOMB)Staff.................................................................115
BUDGET & POLICY BRIEF

LifeElevated2020
Identifying and achieving ambitious goals for Utahs continue prosperity
CALL TO ACTION stewardship of natural resources, prudent

investments of taxpayer dollars, a spirit of
As the State of Utah concludes another year of
volunteerism and cooperation, and purposeful
impressive increases in population, tourism, and
and meaningful investments in the future. Its
economicgrowth,itisonceagainconfirmedthat
theUtahway.
Utah is an attractive place to do business, visit,

and put down roots. While people converge to
Past decisions and planning have yielded
Utahforamyriadofreasons,itsenviablequality
invaluable dividends for current residents who
of life and economic performance are major
benefit from competitive tax rates, healthy
factors impacting why 3.1 million people
budgetaryreserves,agoodeducationsystem,an
ultimatelychoosetocallUtahhome.
envious economic climate, and worldclass
outdoorrecreation.Ensuringresponsiblechoices
FIGURE 1. UTAH POPULATION GROWTH
and investments for both the short and long
term future is the call to action for the
Herbert/Coxadministration.Utahsfuturewillbe
a direct byproduct of the expectations, vision,
andinvestmentsembracedtoday.

THE CHALLENGE
Utahs enviable quality of life and the resulting
populationandeconomicgrowtharenotwithout
challenges. Children and adults need to be
educated;people,goods,andservicesneedtobe
moved; business and industry require oversight
to ensure a level playing field; air quality needs
tocontinuetoimprove,andservicesarerequired
tomaintainahealthy,safe,andsecurestate.

Maintaining and enhancing Utahs quality of life Creating a place where people want to live,
and economic position in the face of significant businesses want to locate, and where taxes are
growthpressuresandadynamic,worldwide,and lowisnteasy.Someoftheinvestmentsweneed
competitive business environment is one of the tomaketodayarehinderedbyataxsystemthat
states greatest challenges and opportunities. isnt pacing with the economy (see Tax
The decisions made today will set the stage for Modernization:ACalltoActionbudgetandpolicy
continued prosperity. Fortunately, Utahns have brief). Utahs challenges are represented in the
inherited a state built upon a heritage of strong viciouscycledepictedinFigure2.
values, an industrious work ethic, wise
1
FIGURE 2. VICIOUS CYCLE FOR MAINTAINING ECONOMIC PROSPERITY AND QUALITY OF LIFE
Utah is Attractive to Businesses and Individuals and Faces Rapid Growth
LIFE ELEVATED 2020: AN INITIATIVE the highestvalue strategies. Through a

FOR THE FUTURE collaborative approach, the Herbert/Cox
administration has identified four key growth
Keeping the momentum of past success and
strategies. Dubbed Life Elevated 2020, these
meeting the demands of a growing population
fourobjectivesarethebedrockoftrueeconomic
while maintaining an unmatched quality of life
development and are the catalyst for an
andeconomicprosperityrequirecarefulplanning
unsurpassedqualityoflife.
andawillingnesstoface challengesheadon.As

inthepast,futuresuccesseswillrequireworking

within the constraints of finite financial and

natural resources. This requires focusing limited

time, attention, and financial resources toward
2
Thefourkeyobjectivesinclude: andresponsivetocustomerneedsbetterenables
citizens and the private sector to get what they
1. EffectiveandEfficientGovernment.Improve needwhentheyneedit.
the quality of government services while
bendingthecostcurve.
2. Qualified Workforce.Prepareacriticalmass
of skilled workers for highpaying jobs by
creating innovative and affordable training
programs for selected economic clusters,
thereby allowing Utah to lead the nation in
highskilljobgrowth.
3. Affordable, Thriving Communities. Ensure
infrastructure is in place to allow people
(through marketbased choices) to live in
communities with access to ample
opportunities for housing, jobs, education,
recreation,andshoppingwithinashortwalk, From building roads to law enforcement and
drive, transit trip, or bike ride. This will from business permitting to child welfare, Utah
require a responsive multimodal government strives to fulfill its various missions
transportation system and strong with a commitment to minimizing taxpayer
collaboration between state and local burden. The goal to improve the quality of
governments. It will require good air quality government services while bending the cost
that allows people to enjoy Utahs great curveisthefoundationoftheGovernorsbudget
outdoors yearround. It will also require a recommendations. Effective government
sufficient water supply to meet judicious influencesthecultureofthestateonadailybasis
waterusedemandswhereusersincreasingly and is a critical longterm strategy for
bear the true cost of the water they use. In accommodating continued growth while
addition,awidearrayofhousingchoiceswill maintainingandimprovingthequalityofservices
open up affordable, marketdriven options delivered.
forUtahsfutureposterityandleadtomore
efficientuseoflimitedland. Additional information about the effective and
4. EquitableandCompetitiveRevenueSystem. efficient government initiative can be found in
Modernize the tax code for all taxes. InvestinginWhatWorksbudgetandpolicybrief.
Increasingly emphasize paying for services
with user fees, particularly infrastructure Qualified Workforce. Growth alone will not
such as transportation and water. Reduce ensure economic prosperity. Utah's workforce
thestatesalestaxrateandbroadenthebase mustevolvewiththeeconomytoattractandfill
in a way that reduces unfair loopholes and highpayingjobs.
createsamoresustainablerevenuemodelto
meet Utahs critical needs (such as Tomaintainitscompetitiveadvantage,Utahwill
education). prepare a critical mass of skilled workers for
highpaying jobs by creating innovative and
Effective and Efficient Government. As demand affordable training programs in selected
for services naturally increases through economicclusters,thusallowingUtahtoleadthe
population growth, government can respond by nation in highskill job growth. This goal will be
providing better quality services at less cost. achieved through innovative solutions to ensure
Providing highquality services that are reliable education is affordable now and in the future.
3
some types of growth cost more than others.
Marketdriven land use choices should
increasingly reflect the true costs of those
differenttypesofgrowth.

Aswithallprograms,thestatesfocusshouldbe
to maximize the return on every dollar invested
in infrastructure, including allowing multimodal
use of state transportation funds, including for
transit. Doing so may require the enactment of
appropriategovernancechangesandincreasingly
incorporating air quality impacts and the true
Recognizing that not all growth is equal, cost of different development patterns into the
programs must be oriented toward meeting decisionmaking process, such as an increased
employer demand for highskill labor that will relianceonuserfeestofundinfrastructure.
best facilitate an economic cycle of increased
employment and wages for workers and higher To ensure Utah embraces transportation
revenuesforbusinessandgovernmentalike. solutions rather than transportation silos, the
Governorrecommendsexpandingtheuseofthe
Additional information about the qualified Transportation Investment Fund to allow
workforce initiative can be found in the Post strategic investments in transit and active
Secondary Education and a Skilled Workforce transportation where such options provide
budgetandpolicybrief. higherreturnsthantraditionalroadsalone.

The highskill workforce that fuels todays
economy demands a highquality community
with quick access between housing, jobs,
recreation, entertainment, and services. Such
communities not only attract highskill workers,
but also provide improved economic
opportunitiesandmobilityforallresidents.Utah
will work to ensure a majority of residents have
access to ample opportunities for affordable
housing, jobs, education, recreation, and
shopping within a short walk, drive, transit trip,
orbikeride.

Affordable, Thriving Communities. Another key Rapidly growing metropolitan areas like Utahs
focus of Life Elevated 2020 is to understand the urban centers face growth challenges and land
structural interrelationships between land use, development impacts. A growing population
housing, transportation, water, air quality, and bringsmoretransportationchallenges.Tofurther
revenue. Thriving communities need physical improveairquality,futurelanduseplanningand
infrastructure such as transportation and water marketdriven development that is less
infrastructure. Land use decisions heavily automobiledependent will be increasingly
influence the type and amount of infrastructure important. Efforts that promote telecommuting
neededandtheassociatedcost.Ascommunities and encourage land zoning practices that
decide how to grow through land use decisions,
4
promotemoretransitusewillslowthegrowthof recreation opportunities from residents and
carsontheroadandcreatebetterairquality. visitorsalike.
Utah is known for having communities where

peoplewanttolive,work,andplay.Ensuringthis
ideal in the face of significant growth is key to
our shared future prosperity. The goal will be
accomplished by working with community
leaders, planners, and developers to promote a
pattern of wellplanned and dispersed livable
communities with a vibrant mix of jobs and
affordable, marketdriven housing and In Utah homes and workplaces, the front door
transportationchoicesthatbetterreflectthefull becomes the trailhead as the state aims to
cost of such choices, including impacts on air develop an additional 1,000 miles of family
quality.Failuretoprovideanappropriatemixof friendly trails and bike paths over the next 10
affordable housing options close to major job yearstoprovideandpromoteactiveconnections
centers risks pricing Utahs posterity out of the between home, school, work, and outdoor
marketovertime. recreation in urban and rural communities
throughoutthestate.
Access to sufficient water to meet appropriate
water use demands is also vital to a growing Utah has earned the reputation as a worldclass
community. Through optimization of existing vacation destination due to natural scenery
water resources, Utahs economy can continue combined with smart marketing, hospitable
to grow while meeting key water needs. Water communities, and the infrastructure ready to
user fees and more efficient land use will welcome the world. In 2016, Utah welcomed
encourage more efficient use of existing water over 10 million visits to our national parks and
andhelppayforrepairandreplacementofaging loggedover4.5millionskierdays,contributingto
infrastructure and, as appropriate, new anestimated$8.4billionindirect,travelrelated
development. spending. The secret is out and in the coming
years, more residents and visitors will continue
Utahsqualityoflifeextendsbeyondtheborders to flock to Utahs red rock canyons, snow
ofourcitiesandtowns.FormanyUtahns,quality covered peaks, and its vibrant urban cities and
of life requires a connection to Utahs idyllicruralcommunities.
unmatchedparks,trails,andruggedbackcountry.
ToimproveaccesstoUtahsworldclassoutdoor To ensure a memorable experience for visitors
recreation and ensure Utahns can live a healthy and residents alike, the Governor recommends
and active lifestyle, our firstinthenation Office reinvesting $10.3 million ($2.3 million ongoing)
of Outdoor Recreation will leverage about $5 ofstateparkentranceandcampingfeerevenue
millionofdedicatedfundingrecentlyprovidedto back into the parks to improve access, expand
enlarge the Outdoor Recreation Infrastructure campingopportunities,rehabilitatewelltraveled
grantprogram.Workingincooperationwithlocal roadways, and maintain the cleanliness of
communities, these funds will help expand and facilities. Furthermore, Utahs state parks will
enhance recreation infrastructure and serve to further expand recreational opportunities by
distribute the burgeoning demand for outdoor addingEchoReservoirasthenewestgeminthe
stateparkssystem.
5
Forty years ago, Utahs state sales tax rate was
below4percentandcoveredabout70percentof
the Utah economy as measured by personal
income. Today, a little over 40 percent of the
economy is covered by sales tax. Extending the
sales tax base to a broader portion of the
economyandreducingtheratewillimprove tax
equity without reducing state tax revenues and
will allow the state to accomplish critical goals
without increasing the overall tax burden.
Additional information about this initiative can
be found in the Tax Modernization: A Call to
Additional information about the affordable, Actionbudgetandpolicybrief.
thriving communities initiative can be found in
theTransportationandLandUse,Water,andAir KEEPING THE MOMENTUM
Qualitybudgetandpolicybriefs.
AchievingtheseambitiousgoalsforUtahsfuture
will require a dedicated, longterm commitment

EquitableandCompetitiveRevenueSystem.An
and continuous effort over years and decades
equitable and competitive revenue structure is
rather than weeks and months. The Governors
vitalforgovernmenttoprovideserviceswithout
budgetrecommendationsrepresenttangibleand
disrupting economic momentum. While past
necessary next steps to build upon past
policies have generally served the state well,
successes that move the state in the right
changing economic realities make it the right
direction. Just as Utahs current prosperity was
time to modernize the tax code for all taxes
not created by accident, the future created for
including reducing the state sales tax rate and
coming generations will rely on prudent
broadening the sales tax base in a way that will
management and thoughtful investments of the
allow for the collection of sufficient revenues to
stateslimitedresources.
meet Utahs critical needs, and increasingly

emphasizing user fees, particularly for
The Governors budget and policy
infrastructuresuchastransportationandwater.
recommendations represent a commitment to
the strategies that return the highest yields in

preparing the workforce of tomorrow,
maintainingandenhancingUtahshighqualityof
life, and ensuring affordable, thriving
communities. This can only be accomplished
through an effective and efficient government
that serves the taxpayer by working within an
equitableandcompetitiverevenuemodel.These
principles ensure a cultivation of conditions to
ensure Utahs future prosperity and
unprecedentedqualityoflife.

6
GovernorsBudgetOverview
ELEVATING UTAHS HIGH QUALITY an equitable and competitive revenue

OF LIFE system that couples a broad tax base with
low and competitive tax rates and
Utah continues to receive recognition as a top
emphasizes user fees, particularly for
performing economy and now appears on the
infrastructurecosts.
radar of national and global business decision

makers. Moreover, unlike some states that
BUDGET PRINCIPLES
remainhighlyreliantonasingleeconomicsector
such as energy or tourism, Utah enjoys one of MaintainingUtahscompetitiveedgeandquality
themostdiverseeconomiesintheUnitedStates. of life requires proactively managing and
With this diverse economy, downturns in any addressing multiple demands placed on limited
one economic sector do not create an taxpayer dollars. Utahs growing and changing
extraordinary negative impact on the states population, along with new dynamics in our
overalleconomy. revenue streams (as detailed in the Tax
Modernization:ACalltoActionbudgetandpolicy
Although Utah emerged from the Great brief) place an increased demand on everything
Recession as a top state economy, recent from education to physical infrastructure and
successesmustnotleadtoinaction.Tomaintain from our natural resources to the states
momentum, Utah must commit to strategic correctionalsystem.
investments in the states future high quality of
life. Failure to do so places Utahs future Areactionaryapproachtonewbudgetdemands
economicprosperityatrisk. andchangeswithintheeconomy,asopposedto
an intentional proactive approach to budget
The Life Elevated 2020 initiative focuses on the designandstrategy,couldpotentiallyleaveUtah
steps Utah must take to continue its healthy vulnerabletoadiminishedfutureprosperity.An
economicgrowthandtomaintainandenhancea intentional proactive focus on doing a limited
high quality of life. It aims to create the number of highvalue activities very well will
conditions for strong economic development yield better results than trying to do too many
whileensuringUtahremainsagreatplacetolive. things and losing focus. The Governors budget
Asdetailedthroughoutvariousbudgetandpolicy recommendations reflect strategic investments
briefs,thefourkeyobjectivesare: ofscarcetaxpayerresourcestobestmanagethe
an effective and efficient government that statesmanydemands.
maximizes the benefit of every tax dollar
invested, TheGovernorsbudgetproposalisbasedonfive
aqualifiedworkforcethatdeliversthehighly majorprinciples:
skilledlabordemandedbybusinesses, optimize the conditions for a healthy and
affordable, thriving communities that growing free market economy that
provide access to housing, employment, empowerstheprivatesector;
education, air quality, and recreation strategically invest in the people of Utah to
opportunities and maximize the benefits maintain an enhanced quality of life,
fromlimitedphysicalandfinancialresources, includingtheLifeElevated2020initiative;
and livewithinourmeans;
7
operate government efficiently while longterm future. Growing state government
delivering highquality outcomes for the revenues reflect a solid economy and broad
peopleofUtah;and basedeconomicgrowth.InNovember2017,the
focusontherootcause(s)ofanissuerather Governor's Office of Management and Budget
thanthesymptoms. (GOMB), the Office of the Legislative Fiscal
Analyst (LFA), and the Utah State Tax
BUDGET TOTALS CommissionrevisedthestatesFY2018revenue
forecast and developed a new consensus
The Governors total recommended budget for
revenueforecastforFY2019(seeTable5).
FY 201819 (FY 2019) is $16.7 billion, including

state, federal, and certain local sources. The
The Governors budget recommendations are
recommended budget financed by state
based on this forecast, which yields about $102
collected funds (i.e., excluding federal funds,
million in new onetime funds and $382 million
local property tax for schools, and higher
in new available ongoing unrestricted General
educationtuition)totalsabout$10.6billion.The
Fund and Education Fund revenues, after
recommended budget for the General Fund and
automatic deposits into various rainy day
the Education Fund, the states two largest
accounts and adjusting for a small structural
accounts,totalsover$7billion.Majorcategories
imbalance, $60 million of growth in earmarked
of General Fund and Education Fund
sales tax revenues, and various technical
expenditures include public education (about
adjustments. These revenue increases come
$3.5billion),highereducation(about$1.3billion),
primarily from increases in individual income
Medicaid and other social services (about $1
taxes (nearly $257 million above the February
billion),andcorrections,publicsafety,andjustice
forecast for FY 2018) and sales and use taxes
(about $700 million). In addition, the
(about$153million,ofwhichabout$93millionis
transportationbudgetfromstatecollectedfunds
depositedintotheGeneralFundand$60million
totals about $1.5 billion (including debt service
allocatedforearmarkedfunds).
payments for transportation projects). These

expenditures are funded through various
transportationfundsoutsidetheGeneralFund.
TAX MODERNIZATION
AkeyelementoftheLifeElevated2020initiative
BUDGET BOOK OUTLINE is modernizing Utahs revenue structure. As
detailed in the Tax Modernization: A Call To
There are many ways to view the various
Action budget and policy brief, Utahs revenue
components of Utahs budget. This document
structure, particularly the sales tax, is not well
summarizes the major budget components and
aligned with the modern economy. In addition,
proposed changes. The Governors budget
the state needs to reemphasize the userpays
recommendation book is divided into two
principle. In light of this, the Governor
segments.Thefirstdealswithbudgetandpolicy
recommends that the state modernize its tax
issues that are more narrative in nature. The
structure by broadening the tax base and
second provides additional technical details.
lowering the tax rate, and by reemphasizing
Bothcanbefoundonlineatgomb.utah.gov.
user fees when feasible, particularly for
transportationandwater.

REVENUE FORECAST Although the Governor proposes a tax
modernization framework, his budget
Utahs growing economy continues to provide recommendation is based on the consensus
significant additional funds to invest in Utahs
8
revenue estimates under the existing tax
structure. Utahisrecognizednationallyforitsprudentfiscal
management,includingmaintainingitsAAAbond
PRUDENT FISCAL MANAGEMENT rating, which creates sizable interest savings
relativetostateswithlowerbondratings.Utahis
Throughsoundbudgetingpractices,thestatehas
one of only nine states with this rating from all
prudentlymanageditsresources.Rainydayfund
threemajorratingagencies.
balances have now been restored and exceed

totals prior to the Great Recession, with $570
The Governors budget funds longterm
million in the states various rainy day funds,
obligations, including bond payments and
including the Education Fund Budget Reserve
actuariallyestimated amounts for state
($362 million), General Fund Budget Reserve
employee retirement pensions, and various
($146 million), Medicaid Growth Reduction and
employee benefit programs, including the
Budget Stabilization ($44 million), and Wildland
impacts of action in recent years to reduce the
Fire Suppression and Disaster Recovery ($18
amortizationperiodforcertainemployeebenefit
million)accounts.TheGovernorrecommendsan
liabilitiesfrom20to10years.
additional$5millionbeallocatedtotheGeneral

FundBudgetReserveaccount.
One concerning budget practice in recent years
has been the proliferation of General Fund

In addition, budget stress testing conducted in
earmarks. As detailed in the Revenue Earmarks
recent years shows that the state has set aside
budget and policy brief, continuing this practice
meaningfulformalandinformalbudgetreserves
can create significant budgetary problems. The
to protect against various economic scenarios
Governordiscouragesanyfurtherearmarkingto
and also has various other tools available to
protect the General Fund from further erosion,
manage the budget during an economic
including the further proliferation of automatic
downturn.Whileanyeconomicdownturnwould
endofyearsurplustransfers.
present challenges, the stress test review

suggests that Utah is generally well positioned
Withtheseprudentfiscalmanagementpractices
foratypicalrecession.
inplace,theGovernorsbudgetproposestouse
growing state revenues to strategically invest in

Althoughbondingapprovedbythelegislaturein
thepeopleofUtah.
the 2017 session reduces working rainy day

funds in the form of cashfunded capital
expenses, hundreds of millions of dollars in
EDUCATION INVESTMENTS
ongoing revenue amounts not committed to Education is a key focus area of Life Elevated
bondingremainallocatedtocashfundedcapital 2020. As the budget and policy briefs on Public
items such as transportation, capital Education Priorities and PostSecondary
development, and capital improvement projects Education and Skilled Workforce highlight, to
for state and higher education buildings, achieve longterm success, Utah must invest in
including an additional $60 million in revenue its people. In the 21st century, a dynamic
growthearmarkedfortransportationandwater. economy requires a skilled and educated
population.Educationdrivesinnovation,attracts
The Governors budget seeks to set aside employers looking to fill highskill jobs, and
sufficientfundsforaneconomicdownturnwhile providesforahigherqualityoflife.
also ensuring that precious taxpayer dollars To help meet these needs, the Governors
remain working in the economy and in the budget begins with education, providing about
pocketbooksofthepeopleofUtah. $276 million in new ongoing funds and $34
9
million in onetime funds for the states public Governoradvocatesformorestaterightswhenit
and higher education systems (see Table 2), comestofederalgovernmentoverreach,healso
which represents about 72 percent of all new believesthatthestateshouldrespecttheroleof
ongoing revenue. This brings total state local officials. For this reason, the Governors
educationfundingfromallsourcestoalittleover budgetproposesasubstantialincreaseinlocally
$5billion. controlled funding through a $170 million
increase,anamountequivalenttoa5.6percent
These recommendations put the state on track increase in the value of the weighted pupil unit
to reach the Governors fiveyear goals of $1 (WPU). The largest amount of this total is a 4.0
billion of new ongoing revenue for public percent increase in the value of the WPU,
education and $275 million of new ongoing estimated at nearly $121 million. Such a sizable
revenue for postsecondary education by FY increaseisprovidedtoallowlocalschoolboards
2021 with both at about 67 percent of the flexibility as they focus on needed local
respectivetargetsthrough3years. investments, including professional learning for
educators and effective counseling for students.
PUBLIC EDUCATION Ourteachers,principals,andothereducatorsare
keytoreachingtheGovernorsgoalofbeingthe
The Governor recommends $208 million in new
topstateforstudentachievement.
publiceducationfundingsupport($207.5million

ongoing,$500,000onetime),bringingtotalstate
Additionally, the Governor recommends $33.7
fundingfromallsourcesto$3.7billion.
million ongoing for a flexible WPU addon for
students at risk of academic failure and $25

In the fall of 2018, nearly 7,700 additional
million ($14.8 million ongoing and $10.2 million
students are projected to enter the doors of
onetime) for further equalization of local
Utahsschools.Thebudgetfundsthisanticipated
property taxes for school districts that make a
enrollment growth as traditionally defined, at a
strong local property tax effort, both of which
cost of over $36 million ($33.5 million ongoing
alsoprovidelocalcontrol.
and $2.5 million onetime). In addition, the

Governor recommends that four additional
These sizable funding increases represent a
programs ($275,000) and Carson Smith
goodfaith effort to meaningfully increase
scholarships ($300,000) receive enrollment
resources for public education. Meaningful
growthfundingandthattheSchoolsfortheDeaf
accountability must accompany this investment.
and Blind receive their equivalent of enrollment
Overtime,improvedstudentoutcomesfromthis
growthfunding(over$900,000).
investment, as measured on the state
accountability dashboard, should be expected.

In addition to $5 million of ongoing existing
Important benchmarks include elementary
funding, the Governors budget provides $1
school reading proficiency levels, middle school
million in onetime funds for teacher supplies.
math proficiency levels, graduation rates, and
And, in addition to $9.9 million of ongoing
disadvantaged student outcomes. In addition,
existingfunding,thebudgetprovides$1.6million
educational agencies should continue to
for the Beverley Taylor Sorenson arts learning
maximizeresourcesandfindmeasurablewaysto
program.
providemoreefficientandeffectiveservices.

Unlike those who want to micromanage the
publiceducationsystemfromthestatelevel,the
POST-SECONDARY EDUCATION
Governorbelievesthatthestateshouldestablish Following up on the states efforts to increase
general education policy goals. Just as the funding in recent years, the Governor
10
recommends $102 million ($68 million ongoing
and $34 million onetime) for the states post TheGovernorwillcontinuetodrawattentionto
secondaryinstitutions. thebenefitsoftechnicaleducationandtheneed
toexpandaccesstosuchprogramswiththegoal
Thebudgetincludesover$33millionongoingto for Utah to lead the nation in students
fund a 2percent compensation and a 5.7 completing highquality technical education
percenthealthinsuranceincreaseforemployees programs.
in the Utah System of Higher Education (USHE),
and provides flexibility for USHE institutions to The awareness that Utah needs a highly skilled
target funds to retain the best and brightest workforce to stay competitive and maintain the
employees.Thisfundingalsoincludes $8million states quality of life has resulted in a gradual
to fund the traditional tuition share of proliferationofworkforceprogramsandservices.
compensation, thereby eliminating the need for The Governor has called for a review of these
a mandatory Tier 1 tuition increase. In addition, servicestoidentifythoseyieldingthebestreturn
the budget includes $24 million ongoing for the on investment and how best to synchronize
USHE Board of Regents to allocate among its programs across organizations. GOMB will lead
institutionstoaddressitspriorities.Frombudget thiseffortoverthenextyearincoordinationwith
savings, $6.5 million onetime is allocated to cabinetmembersandstakeholders.
higher education performance funding and
nearly $9.6 million onetime toward a MEANINGFUL EDUCATION
partnership between the Governors Office of INVESTMENTS
Economic Development and postsecondary
All of these investments are part of the
institutions to rapidly deploy training programs
Governorsgoaltobethetopstateforacademic
meetingkeyworkforceneeds.
performance. The Governor set a fiveyear goal
of $1 billion in new ongoing revenue for public

Withrisingtuitionratesandgrowingenrollment,
educationand$275millionforhighereducation.
it is critical that a meaningful portion of post
Based on this years recommendations, the first
secondary funding is tied to outcomes and that
three years of the fiveyear goal brings the
postsecondary institutions continually increase
Governors budget recommendations to about
efficiencieswithagoalofdramaticallyincreasing
$674millionforpubliceducationandabout$186
thenumberofhighereducationgraduateswitha
million for higher education (67 percent of the
lowercostperstudent.
Governorstargetforeachcategory).

The Governor also recognizes the critical role
SOCIAL SERVICE PROGRAMS AND
high quality technical education plays in Utahs
SUPPORT
economy and has declared 2018 The Year of
Technical Education. The budget includes over Social service programs should be designed to
$1.7 million ongoing to fund 2 percent elevate vulnerable populations to achieve
compensationanda5.7percenthealthinsurance sustainable outcomes, appropriate workforce
increase for employees in the Utah System of participation, and selfsufficiency through
Technical Colleges (USTC). The budget also efficientoperationaldesignandeffectiveservice
includes $7 million ongoing for the USTC Board delivery.Targetedinvestmentsintheseprograms
of Trustees to allocate among its institutions to helptomeettheseobjectives.
address its priorities. The budget also includes AsfurtherdetailedintheSocialServicePrograms
$0.7 million ongoing for operations and and Support budget and policy brief, the
maintenanceforthenewDavisTechnicalCollege Governorsbudgetrecommends$21.5millionin
AlliedHealthbuilding. ongoing General Fund increases for Medicaid
11
consensus items, $3.7 million for Accountable budgetallocatesnewfundingforwaterpurposes
Care Organization rate increases up to 3.5 as follows: $1 million to better measure
percent based on established performance agricultural water use, $8.4 million for dam
measures, $5 million ongoing to address future safetyupgrades,$305,000foralgalbloomcosts,
state match needs in the Childrens Health and $500,000 to remediate phragmites (an
Insurance Program (CHIP), and $7.2 million to invasivespeciesthatconsumeslargeamountsof
support youth in custody who are transitioning water).
toDivisionofServicesforPeoplewithDisabilities
(DSPD)benefitsandadditionalneedsforcurrent TheGovernorandDivisionofAirQualityhaveset
DSPD recipients. The Governors budget further an ambitious target of reducing per capita
recommends $2.6 million ongoing for forensic emissions by 25 percent by 2026. Fully
competency restoration activities, $7.3 million implementing Tier 3 standards for vehicles and
($4.9millionongoingand$2.4milliononetime) fuelwillbeakeystrategy.
toextendbenefitsandenhanceservicesthrough
variousfederalwaiversprovidingflexibilityunder The Governors budget provides $850,000 in
Medicaid, $1.25 million for the Medical ongoingfundstoaddressairqualityinanumber
Examiners Office, and $10 million onetime for ofways,including$500,000toconducttargeted,
Operation Rio Grande, among other social Utahspecific air quality research, and over
servicerecommendations. $350,000 for air quality personnel in areas with
heavy backlogs and unmet needs. In addition,
On average, 2 Utahns commit suicide every day theGovernorallocated$7.9millionin2017from
and12othersaretreatedeachdayasaresultof Volkswagensettlementfundstoreplace115old
asuicideattempt.Tragically,thistrendincreases polluting school buses with cleaner modern
every year. The reasons behind this alarming buses. In 2018, finalization of a mitigation plan
statisticarebecomingmoreapparentasaresult for an additional $35 million of Volkswagen
of data collection; however, simply knowing the settlement funds is expected. The Governor
reasons behind suicide is not sufficient. The recommends a holistic approach for prioritizing
Governor is initiating a thorough review of useofthesefundstoensureselectedapproaches
suicide prevention programs currently achieve the most enduring and effective
administered through the executive branch to emissionsreductionsforeachdollarinvested.
determine actual effectiveness. The review will
determineifprogramsarecomprehensive,reach The State of Utah is also working to lead by
those in need, simultaneously address multiple example in the effort to improve Utahs air
risk factors, and provide the necessary supports quality through the management of the states
toeffectivelyreversethetrend. fleet vehicles and buildings. Older fleet vehicles
arebeingreplacedwiththosethathavecleaner
WATER AND AIR QUALITY burning engines, resulting in an 11 percent
average decrease in emissions. New telematics
Over the past year, the Governor received
arebeingtestedon25percentofthefleetwith
recommendations on a longterm state water
the intent to reduce emissions by decreasing
strategy and established the Executive Water
unnecessary idling. Older buildings that do not
Finance Board to review economic and financial
meet efficiency standards are being retrofitted
issuesrelatedtowatersupplyanddemand. The
with more uptodate equipment to reduce
Governor recommends a continued focus on
emissionsandincreaseefficiency.Inaddition,all
improvingwaterefficiency,waterdata,andprice
new state buildings must be designed,
signalssothatwaterusersincreasinglybearthe
constructed, and managed to meet energy
true cost of the water they use. The Governors
efficiencystandards.
12
inruralUtahwiththepotentialtosavetaxpayer
Over the next year and where possible, the dollars by reducing expensive land and building
Governoralsoplanstoidentifyopportunitiesfor costsintheurbanareasofthestate.
more of the state workforce to be located in
rural parts of the state through the TRANSPORTATION & LAND USE
implementation of teleworking arrangements
Understanding the interrelationships between
that benefit both the state and the employee.
land use, housing, transportation, water, air
Oneof theanticipatedpositiveoutcomesofthe
quality, and revenue structures is another key
effort is to reduce the number of vehicles on
focus area of Life Elevated 2020. Affordable,
Utahshighways.
thriving communities need physical
infrastructure, including transportation and

STATE EMPLOYEE COMPENSATION water infrastructure. However, land use
The Governors budget proposes a 2 percent decisions heavily influence the type of
salaryincreaseforstateemployeesandtargeted infrastructureneededandtheirassociatedcosts
funding to increase salaries for employees as well as the mix and cost of housing. As
working in specific classifications with communitiesmakedecisionsabouthowtogrow,
demonstrated needs. In addition, the budget different types of growth based on different
fundsongoinghealthinsuranceand401(k)match typesoflandusewillhavedifferentcostimpacts.
programcostincreases. The true costs of different types of growth
should be increasingly reflected in different
RURAL UTAH marketdrivenlandusechoices.

The Governor has called for an increased focus
onruralUtahwithagoalofcreating25,000jobs
on maximizing the return on every dollar
off the Wasatch Front by 2020. The challenge is
invested in infrastructure. This effort should
notonlytocreatethejobs,buttomaintainlong
include multimodal investments, appropriate
termeconomicgrowthandsustainability.
governance changes for mass transit agencies,
and increasingly incorporating the true costs of

TheGovernorsbudgetproposesthatruralUtah
different development patterns into the
participate in the states megasite economic
decisionmakingprocessincludinganincreased
development program through smaller
relianceonuserfees.
developmentready sites and that existing

economicdevelopmentincentivesbemademore
SUMMARY
conduciveforuseinruralUtah.TheGovernors
budgetalsorecommendsanadditional$2million The Governors budget is rational, reasonable,
targeted specifically to the states most rural responsible, and responsive to the needs of the
school districts to help meet their unique state.ItinvestsinUtahsfuturebylookingahead
educationalneeds. toanticipatedgrowth,newdemandsonservices,
and the opportunities that are possible if we
For FY 2019, the Governors budget proposes continuewithboldvisionandfiscalprudence.
$1.5 million in tourism marketing funds be used
by the Utah Office of Tourism to focus on rural
tourismdevelopmentinpreviouslyunderserved
ruralareasofthestate.Inaddition,overthenext
year the Governor plans to identify teleworking
opportunities for state employment outside the
Wasatch Front to create more job opportunities
13
14
InvestinginWhatWorks
Creatingmoreandmorevalueforeverydollarinvested
SUCCESS: REAL RESULTS stateagenciesexceededtheGovernorsgoaland

collectively achieved a combined 27 percent
Five years ago, in the aftermath of the Great
improvement in performance. This remarkable
Recession, the Governor set a bold target to
achievementwasbroadinscope:
measurably improve state government
24 state agencies participated in the
performance by 25 percent. State agency
improvementeffort
budgets had already been significantly reduced.
Improvementeffortsfocusedonapplyingthe
By doubling down on proven fundamentals that
SUCCESS Framework operational excellence
govern economic success, Utah rebounded from
tools and principles to 110 distinct
the economic downturn faster than most other
governmentsystems
statesandisnowexperiencingoneofAmericas
Every type of work setting achieved
strongest and most diverse economies and a
improvement, including resource, project,
trulyenviablequalityoflife.
regulatory, people, and transactional
environments
Thanks to great leadership, fantastic employees,
andastrongfocusoneffectiveoperations,Utah
FIGURE 1. STATEWIDE SUCCESS FRAMEWORK RESULTS
UtahStatewideSUCCESSFrameworkResults
150
140
130 127
MonthlyIndexScores(Baseline =100,
120
e.g., 110=10percentimprovement)
110
100
90
80
70
60
50
Jun15
Dec14
Jun14
Dec13
Dec16
Jun13
Jul15
Jun16
Dec15
Jul14
Jul13
Jul16
Mar15
Apr15
Mar14
Apr14
Mar13
Apr13
Mar16
Apr16
Feb15
Feb14
Feb13
Sep15
Oct15
Feb16
Sep14
Oct14
Jan15
Sep13
Oct13
Jan14
Sep16
Oct16
Jan13
Nov14
Jan16
Nov13
Nov16
Nov15
May15
Aug15
May14
Aug14
May13
Aug13
May16
Aug16
15

EXAMPLES OF SUCCESS in just seven days and without a substantial
increaseinoperatingexpense.
The 27 percent improvement in government

operationsprovidestangible positive benefitsto
EMPLOYEE PRODUCTIVITY
enhancethequalityoflifeforallUtahns.
Employee productivity continues to increase as
Examplesinclude: measured by the ratio of Utah citizens to state
As the demand for licensed childcare employees(therewereanestimated152Utahns
increasesinthestate,theOfficeofLicensing for every fulltime state employee in FY 2017).
at the Department of Human Services Furthermore, Utah is estimated to have fewer
thoroughly vets and certifies each applicant fulltime equivalent employees in FY 2017
whilereducingthelengthoftimeittakesto (20,500) than it did in the year 2002 (20,850).
approvenewproviders. This more efficient workforce and better
InlightofUtahsseriousproblemwithopioid outcomes provide greater value for every tax
deaths, the number of chemistry and dollar invested and will continue to require
toxicology assessments required of the meaningfulefficienciesfromeveryagency.
laboratoryattheUtahDepartmentofHealth
has increased dramatically. Despite more FIGURE 2. FULL-TIME STATE EMPLOYEES AND
POPULATION PER FTE
tests, the lab turns results around faster
enabling the medical examiner, healthcare
providers, and law enforcement to develop
strategies to better identify and treat
addictions.
TheUtahOfficeforVictimsofCrimeprovides
financial assistance to victims who suffer
financialloss,physicalinjuries,andemotional
trauma as a result of a violent crime. The
office has improved the reparations process
and significantly reduced the time to make
an eligibility decision, allowing crime victims
tobecompensatedmorequickly. SUCCESS MEASURES
The Driver License Division at the
TheSUCCESSinitiativefocusesonimprovingone
Department of Public Safety eliminated a
or more of the following performance
chronic backlog of more than 8,000 medical
dimensionscriticaltoanyorganization:
evaluations and went from a twoweek
Throughput. The quantity of measured units
processing time to sameday entry. This
thatpassthroughasystemduringadefined
practiceprotectsalltravelersonUtahsroads
period.Aunitmaybeaproject,transaction,
by more quickly and accurately regulating
person,orproject.
thedrivingprivilegesofthosewhodevelopa
Quality. The percentage of units of work
physical,mental,oremotionalimpairment.
completed that meet defined criteria for
Reviewing, issuing, and renewing business
performance. Examples of quality include
licenses quickly and accurately is critical to
accuracy,reliability,orintendedoutcomes.
Utah's professional workforce. The Division
Operating expense. The allocated budget to
of Occupational and Professional licensing
generatequalitythroughput.
has kept pace with the states growing

economy,issuingover70percentoflicenses
16
The combination of these three measures operational systems have a clear and
creates a quotient indicating if the system measurablegoalwithrelatedprocessmetrics
generatesmorevaluefortaxpayerdollars.Using the flow of work within the system is
the SUCCESS Framework operational excellence effectivelymanaged
principles to find hidden capacity, Utahs state currentresourcesaremaximized
agencies have shown it is possible to add value demand is outpacing the ability to reliably
whilemeetinganincreaseddemandforservices meetqualitystandards
eitherwithnofundingincreaseorwithfarfewer there is a complete strategy to ensure new
additionalresourcesthanoriginallyanticipated. fundingisusedeffectively

TheGovernorhonoredthefollowingagenciesfor Using these principles, limited resources can be
meeting or exceeding the 25 percent investedinwhatworksanecessaryconditionto
improvement target: Heritage and Arts, Public meet the demands for new or enhanced
Lands Coordination, Labor Commission, government services and to act as responsible
Technology Services, Governors Office of stewardsoftaxpayerdollars.
Economic Development, Human Resource
Management, Insurance, Commerce, MOVING FORWARD
Administrative Services, Natural Resources,
AsoutlinedintheGovernorsLifeElevated2020
Commission on Criminal and Juvenile Justice,
initiative, effective government influences the
Veterans and Military Affairs, Environmental
culture of the state on a daily basis and is a
Quality,PublicSafety,Transportation,Agriculture
critical longterm strategy for accommodating
and Food, Tax Commission, Workforce Services,
continued growth while maintaining and
andtheEnergyDevelopmentOffice.
improvingthequalityofservicesdelivered.

As state agencies continue to incorporate the
Despite prior significant accomplishments, the
SUCCESS approach, Utahns reap additional
Governor is committed to getting even better
benefits. For example, after applying the
results.Bybuildingontheestablishedframework,
SUCCESSmindsettotheconstructionlienprocess,
SUCCESS+ (the next phase of the improvement
the Department of Commerce proposes to
initiative),includesthreemajorobjectives:
simplify the process for contractors and reduce
build a culture of excellence and high
regulation.Doingsoalsoenablesthedepartment
performance
to return $1 million to the General Fund to be
achieve increasingly better results across
usedforotherbudgetpriorities.
governmentsystems
create measurable agency improvement

STEWARDSHIP projectsthatarecentraltotheorganizations
The Governors Office of Management and coremission
Budget (GOMB) was created to ensure a strong
connectionbetweenbudgetandoperations.This Operational improvement is not a onetime
connection is necessary to better understand effortit is the way state government should
when to invest additional resources into agency always do business. Building a culture of
operations. excellence and high performance starts by
investinginthepeopledoingthework.Thecost
GOMB follows a set of basic principles to curve continues to ben and customer service
determine when new or additional budget improves when the workforce understands,
allocationsmaybenecessary: applies, and becomes experts in applying
operational excellence principles to government
17
operations. Employees become operational Department of Administrative Services. The
excellence experts as learning opportunities are Division of Facilities Construction
intentionallycreated. Management plans to improve the state
building construction process by decreasing
The Governor believes that the capacity to the time to construct new facilities and
improvealwaysexists.Thechallengeistocreate increasing throughput by 20 percent while
increasinglybetterresultsovertime.Tomeetthe simultaneously decreasing change orders by
challenge, agencies will continue to implement 20percent.Improvedfacilitiessupportstate
improvement strategies, monitor results, and agencies to fulfill their missions and serve
identify new systems or processes for theircustomers.
improvementefforts.
Office of Energy Development. The office
At the core of SUCCESS+ is the selection of planstoexpandruraljobgrowthbyutilizing
improvementprojectscentraltothecoremission innovativestrategiesinthecriticalsectorsof
of individual state agencies. Ambitious projects energy and minerals. This effort directly
supportthebroadergoalsoftheGovernorsLife supports the Governors goal of creating
Elevated2020initiative. 25,000 jobs by 2020 in 25 counties outside
theWasatchFront.
TheSUCCESSFrameworkprinciplesandtoolswill DepartmentofHealth.Thedepartmentplans
continue to be used to effectively manage to focus on decreasing uncontrolled
SUCCESS+projects.Projectexamplesinclude: hypertension. Nearly one in four adults in
Department of Environmental Quality. The Utah reports having symptoms of
Division of Air Quality set an ambitious goal hypertension, a leading indicator for heart
to reduce the annual statewide air pollution diseaseandstroke.Theprojectwillfocuson
emissions by 100,000 tons by 2026. With synchronizinghealthsystemstoimprovethe
Utahs population projected to increase 20 prevention, detection, treatment, and
percent during that time period, the goal monitoringofhypertension.
representsa25percentpercapitareduction Department of Natural Resources. The
in statewide emissions over the next nine department plans to create a model
years. multipleuse forest, with a focus on
DepartmentofCommerce.Theagencysgoal developing a pristine natural area that is
istoreduceopioiddeathsandoverdosesby open to both recreational and commercial
providing clear, timely, and accurate uses and that will become a model for the
information to medical providers to support rest of the nationproving that Utah can
them in dispensing appropriate prescription manage its public lands better than the
amounts. federalgovernment.

Thesearejustasampleoftheambitiousprojects
stateagenciesareundertakingtoenhanceUtahs
qualityoflife.
18
PostSecondaryEducationandaSkilledWorkforce
Governorscommitmentcontinues;challengeshighereducationtoincreasegraduationrateswhile
keepingthecostofeducationaffordable
HIGHLIGHTS OBJECTIVE
$186millionofnewongoingfundingfromFY Prepare a critical mass of skilled workers for
2017 to FY 2019 (67 percent of the highpaying jobs to support significant job
Governors goal to invest $275 million by growthinthecomingyearsby:
2021) dramatically increasing the completion rate
$35.2 million for compensation, including a andnumberofgraduateswhileloweringthe
fully statefunded 2 percent meritbased costsperstudent
salary increase to eliminate the need for a leading the nation in students completing
mandatory (Tier 1) tuition increase, highqualitytechnicaleducation
consistingof: ensuring access and equity for all students
$19.8 million for the states traditional including firstgeneration and nontraditional
shareofcompensation students
Nearly $8 million to fund the traditional supporting training and certification
tuition share, thereby eliminating programs for sectors currently experiencing
mandatory(Tier1)tuitionincreases skillgapsandlaborshortagesandimproving
About$7.5millionforhealthbenefits the alignment between graduate skills and
$24 million for the Board of Regents to workforceneeds
address system of higher education needs
and $7 million to the Board of Trustees to BACKGROUND
addresstechnicalcollegeneeds
The 21st century requires a dynamic economy
$3.3 million for Utah Education and
and an educated workforce. Education drives
TelehealthNetwork
innovation, attracts employers looking to fill
$1 million for pilot projects to significantly
highskill jobs, and supports a higher quality of
increase graduation rates while lowering
life. Postsecondary education levels correspond
costs
to higher average income and lower levels of
$9.6 million transfer of onetime savings
governmentdependence.
fromtheperformancebasedfundingaccount

to the Governors Office of Economic
Postsecondary education is among the largest
Development to support rapidresponse
state funding commitments and constitutes
training
approximately 18 percent of the combined
$6.5 million in onetime savings to
EducationFundandGeneralFundbudget.
performancefunding

TheUtahSystemofHigherEducation(USHE),the
Utah System of Technical Colleges (USTC), and
the Utah Education and Telehealth Network
(UETN) comprise Utahs postsecondary public
educationsystem.

19
USHE is comprised of eight institutions: the statewide. UETN also connects elementary and
University of Utah, Utah State University secondary schools, and postsecondary
(includingUSUEastern),WeberStateUniversity, institutionstoqualityeducationalresources.
SouthernUtahUniversity,UtahValleyUniversity,
Dixie State University, Salt Lake Community ACCESS AND AFFORDABILITY
College,and SnowCollege.Afteraslight decline
Access and affordability are key issues for post
in recent years, USHE projects a continued
secondary education. Some students remain
increase in total enrollment to about 192,000 in
largely uninformed or have misconceptions
FY 2019, or about 144,000 annualized fulltime
about the value of career and technical
equivalent students. USHE granted
education certificate programs. Although Utah
approximately 36,700 awards in FY 2017, an
boasts the third lowest average tuition rate in
increase of roughly 8,300 from FY 2010 (see
thenation,Utahstuitionrateshaveincreasedat
Figure2).
a much higher rate than overall inflation and
wages. This dynamic has many contributing

FIGURE 1. HIGHER EDUCATION ENROLLMENT
factors.

FIGURE 2. NUMBER OF AWARDS BY
INSTITUTION
USTC is comprised of eight institutions:

Bridgerland, OgdenWeber, Davis, Tooele,
Mountainland, Uintah Basin, Southwest, and FIGURE 3. HIGHER EDUCATION AWARDS BY
TYPE
Dixie Technical Colleges. USTC currently serves
about 24,000 postsecondary and 9,000
secondary students enrolled in various short
term occupational training programs and
traditionalcertificateprogramsofvaryinglengths.
InFY2017,USTCawardedtraditionalcertificates
to 5,000 to postsecondary students and
approximately 1,500 secondary students. Care
should be taken to distinguish the various types
of certificates issued by USTC and USHE
institutionstoensureclarityabouttheskilllevels
studentsareachieving.
Therisingcostoftuitionisasignificantobstacle
The Utah Education and Telehealth Network toenrollmentandpersistenceformanystudents
manages the robust network infrastructure that and,inturn,jeopardizesUtahsabilitytoprepare
connects education and health care entities acriticalmassofskilledworkers.
20
State appropriations and tuition are the two averageof$27,975).TheGovernoriscommitted
major sources of postsecondary education to identifying opportunities to minimize tuition
funding. In FY 2018, state appropriations of costs so Utah students do not have to rely as
unrestricted General Fund and Education Fund heavilyonstudentloans.
accounted for 57 percent of the state post
secondary education budget while tuition While the state has a role in funding post
revenue accounted for 43 percent. To limit secondary education, leaders of postsecondary
future tuition increases without compromising institutions also have a responsibility to actively
educational quality, institutions must challenge seek internal efficiencies to avoid pricing
andchangethestatusquoforservingstudentsor studentsoutofcriticaleducationalopportunities.
find other revenue sources. Notably, increasing For example, Utahs postsecondary education
state appropriations at an accelerated rate systems should seek to maximize the efficient
createspressuretoincreasetaxes.TheGovernor useofexistingfacilities,includingbuildinguseat
recommends fully funding USHEs compensation night and during the summer months.
increase with state funds (typically funded Implementation of a standardized building
through tuition increases) in order to eliminate utilization methodology would assist state and
theneedforamandatory(TierI)tuitionincrease. higher education policymakers in understanding
opportunities to better leverage existing
Many students rely on federal financial aid to resources.
offsethightuitioncosts.Between2008and2017,
the number of students awarded federal Pell The Governor proposes empowering the Board
Grants doubled from approximately 57,000 to of Regents and Technical Colleges Board of
114,000 and the total amount awarded nearly Trusteeswiththeresponsibilitytomakefunding
doubledto$413million. decisions that serve students and the states
best interests. In addition to other funding, the
FIGURE 4. PERCENTAGE CHANGE IN TUITION Governor recommends discretionary funding of
RATE AND INFLATION
$24 million ongoing for the USHE Board of
Tuition Inflation Regents and $7 million ongoing for the USTC
BoardofTrusteestoaddressgrowth,completion,
250%
workforce demand, scholarships, and other
200% issues that they deem important. With rising
150% tuition, growing enrollment, and improvable
100% graduation rates, postsecondary governing
bodies must take responsibility for systemic
50%
outcomes and have the authority to allocate
0%
funding to drive requisite improvements within
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
theirrespectiveorganizations.

Federal student loans significantly impact how SKILLED WORKFORCE INITIATIVE
students pay for tuition. In FY 2017, Utah With finite resources, it is imperative that Utah
students borrowed $413 million in federal haveclearandstrategiccriteriainplacetoguide
student loans. However, while the national investmentsinacademicprograms.Aspartofhis
media regularly relate horror stories about the recentlyannouncedLifeElevated2020initiative,
amount of debt some college students assume, the Governor has been engaged in a
Utahs students generally remain debt averse collaborative effort with USHE and USTC to
andhavethelowestaveragestudentloandebtin developamorerobustandtransparentapproach
thenation($18,810ascomparedtothenational
21
to postsecondary investments and to explore YEAR OF TECHNICAL EDUCATION
opportunitiestoincreasethenumberofstudents
The Governor recognizes the critical role career
who graduate each year. The Governor
and technical education play in Utahs economy
anticipates this initial effort continuing through
and has declared 2018 the year of technical
theremainderofFY2018andculminatinginthe
education. The Governor will lead the way by
implementation of up to three pilot projects
continuing to draw attention to the benefits of
designed to increase graduation rates using
career and technical education and the need to
existing resources. The Governor recommends
expandaccesstotechnicalprograms.
that a onetime amount of $1 million be

allocated to the Governors Office of
POST-SECONDARY EDUCATION
Management and Budget to support these pilot
GUIDING PRINCIPLES
projects.ThegoaloftheseprojectsisforUtahto
lead the nation in students completing high Improve the completion rates of post
quality technical education and to dramatically secondaryeducationstudents
increase the number of higher education Focus on ways to deliver education more
graduateswithalowercostperstudent. economically and provide access to
additionalfundingforstudents
The Governor applauds the Board of Regents Develop mechanisms to support post
recent decision to update its strategic plan to secondary education access and success for
include an emphasis on workforce alignment. nontraditionalstudents
The Governor appreciates the Boards incipient Incentivize innovations in instructional
efforts to identify and implement key strategies delivery that reduce the costs of educating
that will yield improvements in access, students
affordability, timely completion, and better Offer programs that meet the workforce
alignmenttoworkforceneeds. demandsofhighwageindustries
Actively seek opportunities to identify,
The Governor recommends $6.5 million for exploit,andimproveefficienciesacrosspost
performance funding and $9.6 million in one secondaryprogramsandservices
time savings from performance funding be
transferredtotheGovernorsOfficeofEconomic BUDGET RECOMMENDATIONS
Development (GOED) to support rapidresponse $35.2 million for employee compensation,
training and certification programs for sectors including$27.7millioninflexiblemeritbased
currently experiencing skill gaps and labor compensation funding to USHE, USTC, and
shortages such as those found in information UETN to help retain highly qualified
technology,engineering,andhealthcare. employees and $7.5 million for health
benefits
The awareness that Utah needs a highskill Full (100%) state funding for USHEs
workforce to stay competitive and maintain the compensationincreasetoeliminatetheneed
states quality of life has resulted in a gradual toincreaseTier1tuition
proliferationofworkforceprogramsandservices. $24 million of discretionary funding for the
The Governor has called for a review of these Board of Regents to address USHEs most
servicestoidentifythoseyieldingthebestreturn pressingneeds
on investment and how best to synchronize $7 million of discretionary funding for the
programs across organizations. GOMB will lead Board of Trustees to address USTCs most
thiseffortoverthenextyearincoordinationwith pressingneeds
cabinetmembersandstakeholders.
22
$2 million ($1.5 million onetime and $0.5 Governors Office of Management and
million ongoing) to UETN to replace Budget
equipment Directlyappropriate$6.5millioninonetime
$1.3 million to UETN to expand and savingstoperformancefunding
strengthen its network, establish 24/7 Redirect $9.6 million in onetime
coverage in its network operations center, performance funding account savings into a
andimproveTelehealthoperations Governors Office of Economic Development
$2 million onetime from nonlapsing postsecondary education institutions
balancestoUtahFutures partnership to support rapidresponse
$34.4 million for the Davis Technical College training and certification programs for high
AlliedHealthbuilding demand and difficult to fill labor areas such
$25millionforUniversityofUtahHospital as information technology, engineering, and
$17millionforDixieStateUniversityHuman healthcare
Performancebuilding
$15.9 million for Weber State University Forasummaryofalleducationfundingincreases,
SocialSciencebuilding seeTable2.
$1 million onetime to support completion
focusedpilotprojectsatthediscretionofthe
23
24
TransportationandLandUse
Layingthegroundworkforamoreintegratedtransportationsystemthatencouragesefficientlanduse
patternsandimprovesairquality
HIGHLIGHTS Ascommunitiesmakelocaldecisionsabouthow
to grow, different types of growth based on
TheGovernorrecommendsareemphasison
different types of land use will have different
users paying for transportation costs
cost impacts. The true cost of different types of
accordingtouse.
growth should be increasingly reflected in
The Governor supports opening up state
differentmarketdrivenlandusechoices.
transportation funds for all modes of

transportation to ensure transportation
projects with the best return on investment
on maximizing the return on every dollar
areprioritized
invested in infrastructure, and increasingly
Proposals from the Transportation
incorporating the true cost of different
GovernanceTaskForceincludearoadusage
development patterns into the decisionmaking
feepilotstudy,UTAgovernancereform,and
process,includingbyincreasinglyrelyingonuser
strengthening the focus on economic
feestofundinfrastructure.
development to enhance the longterm
health of the transportation system and
economy A NEW PATH FOR
$1.9billiontotaltransportationbudgetfrom TRANSPORTATION
all funding sources (including highway debt
As part of his Life Elevated 2020 initiative, the
service)
Governor is committed to maintaining and
$599 million in state sales tax earmarks for
enhancingUtahstransportationsystemavital
transportation
contributor to the states wellperforming
$502millioninstatefueltaxes
economy. Utahs transportation system includes
22 percent of state sales tax earmarked for
46,000 miles of public roads, a sizable mass
transportation
transit system, and numerous walking and
bicycle paths. With the states population

LAND USE projected to increase over 40 percent by 2040,
Understanding the interrelationships between therewillbeasignificantneednotonlyfornew
land use, housing, transportation, water, air roads,highways,andbridgesbutalsoformass
quality, and revenue structures is a key focus transitandothermethodsoftransportation.
area of Life Elevated 2020. Affordable thriving
communities need physical infrastructure, The transportation system should integrate a
includingtransportationandwaterinfrastructure. broad range of reliable and accessible
However, land use decisions heavily influence transportation options and ensure access to
the types of infrastructure needed and their economic opportunity for both urban and rural
associatedcosts. residents.TheGovernorsOfficeofManagement
and Budget (GOMB), the Department of
Transportation (UDOT), and other stakeholders
25
areactively working to developatransportation vehiclesincrease.Roadusagefeesare,therefore,
system that minimizes travel times, reduces a much more stable and viable longterm
congestion, improves longterm air quality, and revenuesource.Second,roadusagefeesadhere
helpscommunitiesthrive.Aconvenient,reliable, tothebenefitsprinciple,whichstatesthattaxes
and viable transportation system is a necessary paid should be based on the benefits received.
componentinpromotingeconomicdevelopment Last, features such as congestion pricing can
andimprovingUtahsqualityoflife. more efficiently allocate road usage, reduce
congestion during rush hours (which may
To ensure the longterm health of Utahs improve air quality as cars idle less), and create
transportation system, the Governor signed into bettertrafficflow.
law legislation creating the Transportation
Governance and Funding Task Force following FIGURE 1 FUEL TAXES AND SALES TAX
EARMARKS FOR TRANSPORTATION AS A
the 2017 General Legislative Session. The Task PERCENTAGE OF PERSONAL INCOME
Force was charged with evaluating a broad
spectrumoftransportationissues,includinglong 0.7%
term transportation funding mechanisms; 0.6%
transportation governance, oversight, and
0.5%
operational structures; and models of land use
anddevelopment. 0.4%
0.3%
While the Task Forces work continues, key 0.2%
alternativesincludeincreasingemphasison user
0.1%
fees, allowing transit projects to compete for
state funding, and designating economic 0.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
developmentasacriterioninthetransportation
prioritization process. The Governor supports
FuelTaxes TransportationEarmarks
thesereforms,whichareimportantcomponents
formaintainingUtahsqualityoflifeandaligning The current approach used by lawmakers is to
useofserviceswithpayingforthoseservices. subsidizeinadequatefueltaxrevenuewithsales
tax earmarks that fund payasyougo projects
RoadUsageFees.Roadusagefeesareafueltax as well as debt service on bondfunded projects
alternative that are increasingly attracting (thelegislatureauthorized$1billioninadditional
attention from policymakers as automobiles transportation bonds during the 2017 General
become more fuel efficient and fuel tax bases Session).InFY2019,theseearmarksaccountfor
decline.Whilefueltaxesindirectlylinktaxespaid nearly $600 million in funding, nearly $100
with road usage, road usage fees directly levy a million more than the $500 million in state fuel
fee based on the amount of miles driven. taxes. Federal funds provide roughly an
Dependingonthefeestructure,driversmayalso additional $350 million, primarily from federal
be charged higher rates during times of peak fueltaxes.
traffic.
Figure 1 shows the declining fuel tax revenues
Road usage fees have several advantages over and increasing earmarks as a percentage of the
more traditional funding mechanisms such as Utaheconomyasmeasuredbypersonalincome.
fuel taxes. First, fuel tax revenues are declining This increasingly heavy reliance on sales taxes
relative to miles driven due to cars becoming rather than user fees siphons revenue from the
more fuel efficient. This issue will become even GeneralFundandcompromisesthestatesability
more pronounced as the number of electric to pay for other critical programs such as
26
education, corrections and public safety, and charging for road usagean important step
socialservices.Transferringmoreofthefinancial towardmodernizingthestatesrevenuesystem.
burden of building and maintaining roads onto
driversisacriticalelementofensuringthatboth MultiModal Transportation Funding. Another
transportation revenue and General Fund issueaddressedbytheTaskForceisthedesireto
revenue are adequate and sustainable in the open up state funding to the highestvalue
longterm. transportation infrastructure projects across
modes. This would give transportation planners
the ability to better serve Utah taxpayers by
A well-funconing transportaon system is
allowing them to fund whichever projects best
crical to a well-performing economy
optimizemobilityandprovidethehighestreturn
oninvestment.Inpractice,thiswouldmeanthat
anytransportationproject,includingUTAtransit
projects, could receive money from the state
Utahs public roads currently
expand over 46,000 miles
Transportation Investment Fund (TIF), which is
primarilyfundedwithstatesalestaxearmarks.

A more integrated approach to transportation
planning and funding will lead to more efficient
useoftaxpayerresourcesandbetterprovidethe
infrastructure that communities throughout the
Utahs transportaon state need to thrive. However, allowing UTA to
system includes a sizable receive TIF funding will also require governance
mass transit system with reform to ensure that transit expenditures are
both rail and bus accountable and transparent. Replacing the
current 16member UTA board with a smaller
commission appointed by the Governor and
giving UDOT control over statefunded transit
projectswouldhelpensurethisaccountability.
Utahs populaon is
projected to increase Economic Development. Rapidly growing
over 40% by 2040 metropolitanareaslikeUtahsurbancentersface
growth challenges and land development
impacts. A growing population brings more
transportationchallenges.Tofurtherimproveair
quality, future land use planning and market
driven development that is less automobile
dependentwillbeincreasinglyimportant.Efforts
thatpromotetelecommutingandencourageland
There will be signicant need for new zoning practices that promote livable
roads, highways, bridges, mass transit, communities and more transit use will slow the
and other methods of transportaon. growthofcarsontheroadandcreatebetterair
quality.

Enabling UDOT to begin a road user fee pilot Ideally,transportationplannersareabletoalign
program would allow the state to begin the transportation infrastructure, land use, air
process of determining the best method of quality, and economic development. One
27
potentialwaytoencouragethisalignmentwould government services, including fragmentation,
be to give efficient economic development increaseddemand,andconstrainedbudgets.
patterns and air quality impacts more GOMBiscurrentlyworkingwithUDOTtofinalize
consideration in the Transportation measures for the departments three strategic
Commissionsnewcapacityprioritizationprocess. goals:
optimizemobility
Another is the use of the State Infrastructure eliminatecrashes,injuries,andfatalities
Bank (SIB). The SIB is an existing revolving loan preserveinfrastructure
fund that provides loans and assistance to local
governments, enabling infrastructure Using the SUCCESS Framework, the access
developmentthroughoutthestatethatmaynot management system is approving permits faster
otherwise be possible. Encouraging economic andhasincreasedthepercentageofapplications
development was one of the primary purposes approved within 45 days; the procurement
for initially establishing the SIB. Currently, SIB systemhassignificantlyincreasedthepercentof
guidelines allow the Transportation Commission completed contracts that meet associated
to use the creation of economic benefits as a reliability standards; the heavy equipment
criterion for approving loans, but it is not management system has increased the
required. Requiring the Transportation percentage of trucks available during the snow
Commission to evaluate projects based on strict season; and the ports of entry system has
returnoninvestmentcriteriawouldallowforthe increased the percentage of trucks that use the
state to use the SIB more strategically. In bypasssystemandthatpassthroughtheportsof
addition, ensuring that the SIB is adequately entrywithinestablishedtimestandards.Overall,
capitalized would enable the state to more seven UDOT systems have experienced a 44
aggressivelyincentivizeeconomicdevelopment. percent improvement from January 2013
throughOctober2017.
Encouraging smart infrastructure planning by
local governments that include features such as GUIDING PRINCIPLES
innovative and flexible approaches to parking,
Prioritizeexistinginfrastructuremaintenance
mixed uses, multiple housing options, access to
by developing new roads, highways, and
transit, and pedestrian and bicyclefriendly
bridges only after appropriately preserving
design can reduce state infrastructure costs and
the existing infrastructure and enacting
help ensure that residents have access to
feasiblesolutionsthatoptimizemobility
abundant opportunities for housing, jobs,
Focus on continuous improvement by
education, recreation, and shopping within a
ensuring that transportation planners
reasonabledrive,transittrip,walk,orbikeride
maximize current resources and continually
a foundational element of affordable, thriving
find more efficient and effective ways to
communities.
buildandmaintainthetransportationsystem
Encourageincreasedtransparencyaboutthe
CONTINUOUS PROCESS
full costs of the transportation system,
IMPROVEMENT includingairqualityimpacts
TheSUCCESSFrameworkisasetofmanagement Increase public awareness by encouraging
principles designed to boost the quality and individuals to make sustainable and
efficiency of government services with the goal responsibletransportationdecisions
of creating more and more value for every tax Seek ways to improve and achieve more
dollar invested. The tools provide assistance in efficiency and use in local mass transit
meeting the complex challenges facing systems
28
Balance the transportation needs of urban Encouraging local governments to invest in
andruralUtah infrastructureandlandzoningpracticesthat
reduce costly infrastructure and improve air
PROPOSED SOLUTIONS quality
Exploring intelligent highway systems, road
TheUnifiedTransportationPlanprovidedahigh
usage fees, congestion pricing, and other
level transportation road map, including
innovative methods to pay for Utahs future
projectedcosts.Whiletheplanisausefultoolfor
transportationneeds
thinking about future needs, it assumes current
Identifying road usage policies that
and past behaviors, technology, and models for
encourage maximum movement of people
futureconstruction.
throughthesystem(peoplethroughput)
Encouraging busbased transit development

New and better tools and strategies will help to
andidentifyinglastmileUbertypeservices
maximize capacity and create structures with
thatsupportbusservice
potentiallylongerlifecycles,suchas:
Identifying potential approaches for
Implementing additional techniques like
improved reliability and increased use of
Critical Chain Project Management to
buses, which may include local investment,
complete new transportation projects faster
federal funds, and/or modification of
andmorecosteffectively
TransportationInvestmentFundeligibility
Allowingmoneycurrentlyallocatedforroads
Identifying ways to promote and fund
to be used for transit and other modes of
increased transportation investment in rural
transportation to empower decision makers
Utah
and planners to consider the best return on

investment across all modes of

transportation,notjustroads

29
30
TaxModernization:ACalltoAction
Abetterapproachtotaxchange;Governorcallsforamajortaxmodernizationefforttoensurefairness,
reduceloopholes,enhancestability,andmaintainlowandcompetitivetaxrates
INTRODUCTION While user fees are appropriate in many

circumstances, mandatory taxes are also a
Dont tax you, dont tax me, tax that fellow
necessity.Whenimposingsuchmandatorytaxes,
behind the tree. This old tax adage highlights
policies should reflect the public finance mantra
the idea that while most people are not excited
of a broad base and low rate, thereby
to pay taxes, the reality is that taxes are
distributing the tax burden widely at a low and
necessary to pay for public services that are
competitive tax rate. This model promotes
provided every day. The challenge is finding the
fairness as everyone pays a little rather than
most efficient and fair way to collect revenue
policies that exempt some and consequently
neededtopayforthoseservices.
place a higher burden on others. A broad base
also tends to minimize the damage to the

While the total revenue amount collected is an
economy, ensures economic neutrality so that
essential tax policy consideration, how
government isnt selecting winners and losers
government generates such revenue is also key.
throughthetaxcode,minimizesrelianceonany
Utah is facing a critical tipping point when it
particular segment of the economy, and
comes to tax policy. The Governor highlighted
simplifiescomplianceandadministration.
theneedforataxreviewduringhis2017Stateof

the State, and is now calling for a bold, broad
Ultimately, money is a neutral indicator of the
based tax modernization effort. This brief
valueofaproductorservice.Whengovernment
outlines ideal tax policy, Utahs current
tips the scales through tax policy or incentives
challenges,andaframeworkformovingforward.
thataltereconomicprices,theperceivedvalueof
theproductorservicecanbedistorted.Notably,
IDEAL TAX POLICY
those not bearing a full share of the tax burden
Tax systems exist primarily to generate the may demand more public services because
revenue needed to provide public services such servicesappearlessexpensivethantheytrulyare.
aseducation,transportation,andpublicsafety.A
key feature of the tax system is to send price Adhering to good tax policy is often difficult as
signals to citizens about the cost of providing policymakers feel pressure to address a short
governmentservices,therebyallowingcitizensto term or specific company/industry request.
make decisions about desired service levels However, these types of policy decisions are
based on a cost and benefit comparison. often made in a vacuum and fail to take into
Properlyaligned user fees and useroriented account the opportunity cost or longterm
taxes can often balance demand and supply for impacts that includea taxbasenarrowing, price
services, particularly for infrastructure such as signal distortion, and tax burden shift. Moving
transportation and water. Consumers tend to awayfromtheidealofabroadbaseresultsina
spend more judiciously when paying directly for vicious cycle that exacerbates the problem, as
a service than when someone else pays for the representedinFigure1.
service.
31

FIGURE 1. TAX POLICY VICIOUS CYCLE
As the tax base narrows, pressure increases for

UTAHS CHALLENGES
tax increases to generate sufficient revenue for
neededservices.Inturn,highertaxratesfurther Utahs revenue policies should ensure that the
increase economic distortions and create stateandlocalgovernments,aswellastaxpayers,
pressure for additional exemptions or special follow a fiscallyviable longterm path that leads
rate reductions. All of this results in a more to increased prosperity and quality of life.
complicated tax system that is onerous to Unfortunately, shortcomings in Utahs existing
administer, frustrating for citizens, and erodes tax structure create obstacles in meeting that
confidenceinafairandneutralstructure. goal. Utahs tax structureparticularly the sales
taxis outdated, does not reflect the modern
economy, and relies on general taxes to fund
32
services where user fees or useroriented taxes Some services such as hotel accommodations,
wouldbemoreappropriate. drycleaning,carrepairs,andrestaurantservices
are taxed, while other services remain excluded
Aswithmanyotherstates,Utahssalestaxbase from the sales tax base. In addition, the
and economy are increasingly mismatched. As digitization of goods has eliminated or reduced
Figure 2 illustrates, Utahs sales tax base some segments of the economy (like compact
previously covered approximately 70 percent of discs and books now available as digital
the states economy as measured by personal downloads). Finally, collecting the sales tax due
income,whilenowitcoversjustover40percent. onremotesalescontinuestopresentachallenge.
A narrowing tax base creates pressure to In addition to the structural economic issues,
increasetaxratestomaintainsufficientrevenue. policy decisions have also reduced the sales tax
base through over 90 sales tax exemptions and
FIGURE 2. UTAH SALES TAX BASE AS reducedtaxratesonspecificitems.
PERCENT OF ECONOMY

As the principle revenue source for the states
GeneralFund,salestaxisamajorcomponentof
the states revenue structure. Sales tax also
serves as an important revenue source for local
governments. Currently, 50 percent of the one
percentlocaloptionrateisdistributedbasedon
populationwiththeremaining50percentbased
on point of sale. Some argue this arrangement
creates an inordinate focus on retail sales over
the broader economy and good planning. The
Governor proposes working with local
governmentstoadjustlocalsalestaxdistribution
This narrowing of the base results from a tomoreheavilyemphasizegrowthinhighpaying
changing economic structure and tax policy jobs and population in conjunction with other
decisions. When the sales tax was imposed in changes that facilitate local government fiscal
1933, the economy was largely goodsbased. As sustainability.
shown in Figure 3, the economy has become
increasinglymoreservicebased. Although not always appropriate due to ability
topayconsiderations,userfeesanduseraligned
FIGURE 3. U.S. PERSONAL CONSUMPTION taxes create a more direct alignment between
EXPENDITURES costs and payment for public services, akin to
free market transactions. Appropriate user fees
includewateruserfees,stateparkuserfees,and
transportationuserfees.

Utah has drifted away from the userpays
principle for infrastructure. The direction over
thepastdecadeinparticularhasbeentoreduce
market price signals by more heavily subsidizing
infrastructure services through general taxes,
which, in turn, discourages price signals and
encourages higher consumption. As detailed in
the Revenue Earmarks budget and policy brief
33
and shown in Figure 4, sales tax earmarks have improving uniformity to provide for a more
grown dramatically over the past decade. For levelplayingfield
transportation,earmarksofstatesalestaxnearly aligning state and local fiscal incentives
$600millionfarexceedtheuserorientedgastax particularly for economic developmentto
ofabout$500million. create fiscal structures that encourage
growthinhighpayingjobsandpopulation
FIGURE 4 FUEL TAXES AND SALES TAX respecting the taxpayer by ensuring that
EARMARKS FOR TRANSPORTATION AS A
PERCENTAGE OF PERSONAL INCOME
governmentservicesareefficientanddeliver
highqualityresults
0.7%
0.6% Thetaxmodernizationeffortshouldbeguidedby
0.5% respect for the taxpayer while taking into
consideration the need to generate sufficient
0.4%
fundsforthekeyservices,suchaseducationand
0.3% transportation, required for a wellfunctioning
0.2% economy. Although the total amount of taxes
0.1% collectedisanessentialpartoftheconversation,
tax modernization needs to occur regardless of
0.0%
thetotalamountoftaxesascomparedtocurrent
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
collections. For this reason, the tax

FuelTaxes TransportationEarmarks modernization framework assumes overall
revenueneutrality.

GUIDING PRINCIPLES AND THE FRAMEWORK
OBJECTIVES
The Governor recommends that the legislature
Inmanycases,Utahstaxsystemisdriftingaway consider the following tax modernization
fromtheidealbyimposinghighertaxratesona framework.
narrowertaxbaseratherthanlowertaxesona
broader baseand course corrections are InfrastructureUserFees
needed. The Governor recognizes such course Increasingly emphasize transportation
corrections maynotbe easyandrecommendsa user fees through direct road user
balanced approach that considers fundamental charges,fueltaxes,andregistrationfees
principlesofgoodtaxpolicy. Simplifyfueltaxadministration
Increasingly emphasize user fees to pay
The Governor's tax modernization framework is forwater
foundedonthefollowingprinciples:
reemphasizing the role of user fees, SalesandUseTax
particularly for infrastructure (such as Establishaloweruniformsalestaxrate
transportation and water) to provide price Broaden the sales tax base to tax final
signals that better align the payment of consumption (not investment), including
serviceswiththeuseofservices bothgoodsandservices
lowering tax rates to preserve Reducesalestaxesonbusinessinputs
competitivenessandeconomicefficiency Collecttaxesfromremotesales
broadening the tax base and enhancing Adjust local sales taxes to more heavily
fairness by reducing tax exemptions, emphasize highpaying jobs and
exclusions,andcredits populationoverretail
34
IndividualIncomeTax will be essential to implement the more
Createalowincometaxcreditorrebate challenging components of the framework
specificallytooffsetsalestaxregressivity (includinguserfeesandbroadeningthetaxbase)
Withhold estimated taxes on nonwage to create the ability to accomplish the other
income components (lowering tax rates). To be
Reducetheindividualincometaxrate successful,thetwomustgohandinhand.

CorporateTaxes Infrastructure User Fees. To counteract the
Adjust income allocation methodology trend of using general taxes when user fees are
formultistatebusinesses moreappropriate,theGovernorrecommendsre
Ensure all firms with an economic nexus emphasizing the role of user fees and user
(notjustphysicallocation)paycorporate oriented taxes to pay for infrastructure and, in
taxes turn, to reduce sales tax earmarks.
Eliminate carryback of net operating Transportationrelated examples include an
losseswhilepreservingcarryforward increased emphasis on different types of direct
road user charges, such as HOV fees lanes and
PropertyTax charges based on number of miles traveled or
Simplify business personal property congestionattimeoftravel;taxesonmotorand
taxation specialfuel;andregistrationfees,particularlyfor
Allow inflationary adjustments to those not paying for use through fuel taxes.
propertytaxes,includingschoolbasictax Similar to transportation, water development
rate projects in which the State of Utah participates
Consolidate discretionary local school should increasingly emphasize water users
propertytaxlevies paying for projects through water rates, rather
Cap exemption for primary residences thanthroughtaxes.
forhighvalueproperties
Improve transparency of redevelopment Sales and Use Tax. Another key focus of tax
and economic development areas and modernizationshouldbeUtahssalesandusetax.
eliminateuseforretail The state, counties, cities, and towns all rely
Expandpropertytaxcircuitbreakerfor heavily on sales taxes to fund basic government
lowincomeseniors services. The Tax Foundation summarizes most
public finance economists views of the proper
CigaretteandTobaccoTaxes salestaxbase:
Tax ecigarettessimilar toother tobacco Sales taxes should apply to all final personal
products consumption, yet partly due to historic
accident and partly due to policy efforts to
Utahstaxsystemshouldbesimple,economically exemptsomegoods,mostsalestaxbasesare
neutral, reliable, equitable, responsive to smallerthanideal.
interstate and international competition, The narrow tax bases undermine neutrality,
designed to minimize burdens for compliance favoring some products or industries over
and administration, and accountable and others.
transparent. The Governors tax modernization Sales tax base expansion allows for greater
frameworkstrivestoappropriatelybalancethese tax neutrality and revenue stability, and can
principles. be paired with more targeted relief for low
incomehouseholds.
The Governor recognizes that as lawmakers Consumption by businesses should be
contemplatethetaxmodernizationframework,it exempt, not due to a preference for
35
businesses over the general public, but statewide school basic tax rate. In addition, the
rathertoavoidtaxpyramiding. Governor recommends consolidating
discretionary school property taxes to: (a)
The Governor recommends that Utah broaden enhance local flexibility by eliminating funding
the sales and use tax to better align with the silos,(b)highlighttradeoffsbetweenspendingon
propereconomicbaseoffinalconsumption,with school buildings and school operations, and (c)
the goal of creating a lower uniform state sales returningtouniformratecaps.
taxrate,cuttingthecurrent4.7percenttaxrate
tobetween2.7and3.7percent(aratereduction Although the state clearly has a role in funding
ofabout20to40percent). increases for public education through various
state guarantees provided through revenue
Individual Income Tax. Congress is sourcesitcontrols,thischangetopropertytaxes
contemplating changes to the federal individual will better allow school districts to take
andcorporateincometaxsystems,withtheU.S. responsibility for shouldering their share of the
House and Senate recently passing separate tax schoolfundingburden.
reform bills. Because Utahs income tax base is
directly tied to the federal system, many of the CONCLUSION
federal tax changes will translate to the states
The Governors tax modernization framework
incometaxsystem.Whilevariousportionsofthe
creates a sustainable longterm path for state
proposals remain in flux, for the individual
andlocalgovernmentswhilealsorespectingthe
income tax, an expansion of the standard
taxpayer. Reemphasizing user fees, broadening
deduction (which reduces the tax base) is offset
the tax base, and maintaining low and
by elimination of personal exemptions and
competitivetaxratesimprovethefairnessofthe
reductionsinitemizeddeductions(whichexpand
tax system, allow sufficient revenue to provide
thetaxbase).Statepolicymakersshouldcarefully
key government services, support a growing
monitor the federal tax reform proposals to
economy,andrespectthetaxpayer.
understand impacts on state revenues and on

Utahscitizens.
People expect access to government services
(good schools, roads, public safety), but many

Property Tax. Under Utahs truthintaxation
are reluctant to pay the full associated costs.
system, the certified property tax rate provides
Whilegovernmentcanandshoulddoeverything
thesamedollaramountofrevenue(exclusiveof
possible to provide services efficiently, the
value of new properties as in the prior year).
demand for services must ultimately align with
While this system has served the state well
therevenuestructure.Thebottomlineittakes
overall,itdoesnotallowthecertifiedtaxrateto
resources to provide public services that
increaseforinflation.TheGovernorrecommends
maintainUtahsqualityoflife.
allowing inflationary adjustments to property
taxes, including freezing the mandatory
36
PrudentFiscalManagement
Prudent fiscal management means thinking longterm to both balance the budget and invest in the future
HIGHLIGHTS
Maintaining and elevating Utahs quality of PRUDENT BUDGET PHILOSOPHY
lifeisthefocusoftheGovernorsbudget Long-Term Investments in the People of Utah
$570 million in combined rainy day fund
balances Use revenues from
1 of only 9 states with a AAA bond rating Utahs vibrant
fromallthreemajorratingagencies economy...
Utahisrecognizednationallyforitsprudentfiscal
management.AnimportantkeytoUtahssuccess
is considering the longterm impacts of budget
decisions,notsimplytheshorttermimpactsover
the coming fiscal year. One important aspect of
longtermthinkingismanagingabudgetoverthe
ups and downs of the economic cycle. Equally
important is understanding how todays budget
decisionssuch as investing in education to
promote an educated future workforce or To invest in the
improvingthestatestaxstructurecanalterthe people of Utah.
stateseconomictrajectoryyearsdowntheroad.
PRUDENT FISCAL MANAGEMENT

AND LIFE ELEVATED 2020
WhileUtahistheenvyofotherstatesintermsof
quality of life and economic prosperity, the UTAHS RAINY DAY FUNDS ARE AT
Governors Life Elevated 2020 initiative provides HEALTHY LEVELS
a framework for continued wise fiscal
management and longterm economic health. As shown in Figure 1, Utahs rainy day fund
The elements of this frameworkeffective and balances have been restored and exceed pre
efficient government; investing in a skilled recessiontotals.Including$35millionindeposits
workforce; providing and incentivizing the right made at the end of FY 2017, the states
infrastructure to establish affordable, thriving combined rainy day fund balances total
communities;andmodernizingthetax system approximately $570 million. This figure includes
worktogethersynergisticallytosecurelongterm the Education Fund Budget Reserve ($362
economic performance and quality of life. million), General Fund Budget Reserve ($146
Additional details about the Life Elevated 2020 million),MedicaidGrowthReductionandBudget
initiative are found in the various budget and Stabilization ($44 million), and the Disaster
policybriefsthatmakeuptheGovernorsbudget Recovery and Wildland Fire Suppression ($18
andpolicyrecommendations. million)accounts.

37
FIGURE 1 RAINY DAY FUND BALANCES around rigid budget mechanisms to respond to
currentissuesandtomeetthestatescoreneeds.
One of the strengths of Utahs historic budget
process is its flexibilitygiving policymakers the
ability to act on their responsibility to meet
current needs within the accepted institutional
structure and to accomplish public policy
objectives. For this reason, the Governor
discourages further expansion of earmarks and
other similar automatic budget mechanisms,
including automatic transfers of a yearend
surplus.

MEETING FINANCIAL
TheGovernoralsoproposesadding$5millionto OBLIGATIONS
theGeneralFundBudgetReserveAccount.
The Governors budget fully funds longterm
To preserve budget flexibility, the Governor obligations including pensions and various
recommends refocusing yearend surplus employeebenefits.Evenwithmoreconservative
transfersonthecorerainydayfundsandthatno assumptions on rates of return, funded ratios in
further yearend transfers of surplus funds be these programs are increasing based on
enacted. consistent full funding of actuariallydetermined
contributions and improved investment returns
AUTOPILOT BUDGETING REDUCES as compared to the reductions in funded ratios
BUDGET FLEXIBILITY created by investment losses during the Great
Recession. The states payments are based on
Oneconcerningtrendthathasemergedoverthe actuarial estimates of the amounts required to
pastdecadeistheadvancementofwhatcouldbe fully fund the programs over the long term.
termedautopilotbudgeting,includingrevenue Funded ratios in some of the nonpension
earmarks and other automatic funding employeebenefitshaveallowedthestatetocut
allocations.Ratherthanallowingpolicymakersto the amortization period in half (20 years to 10
make annual budget decisions, statutes passed years). However, continued payments will be
during previous legislative sessions have requiredtoreachfullfundingovertime.
established automatic spending priorities. While
statutes can be changed, automatic funding has UTAH MAINTAINS AAA BOND
created a higher budgeting priority (where at RATING
times no vote is needed) as compared to funds
appropriatedthroughtheregularbudgetprocess Through sound and fundamental budgeting
and that require an affirmative action to practices, Utah has prudently managed its
appropriatefunds. financialresources,allowingtheprivatesectorto
flourish. Utahs longstanding AAA bond rating
Althoughautopilotdecisionsmayhaveseemeda and ability to attract financial capital reflect the
good idea when enacted, these policies lead to privatemarketsconfidenceinthestatesbudget
less budget flexibility and make prudent budget management practices. As one of only 9 states
management increasingly difficult. Revenue with a triple AAA bond rating, this market
earmarks and automatic funding cause a great confidence allows Utah to enjoy sizable interest
dealofefforttobespentidentifyingwaystoget savings as compared to states with lower bond
ratings.
38
RevenueEarmarks
Autopilotbudgetingreducesbudgetflexibilityandprogramscrutiny
HIGHLIGHTS Under current law, 39 percent of new sales and

use tax revenue growth for FY 2019 and 24
39 percentof new state sales and use tax
percentoftotalsalestaxisearmarkedprimarily
growthisearmarkedundercurrentlaw
fortransportationandwater(seeTable1).
24 percent of all state sales and use tax is

earmarked
EARMARKS ARE PROBLEMATIC
$740 millionin General Fund earmarks and
setasides, including$654 million fromsales StatutoryearmarksofGeneralFundrevenuesare
tax problematic because they are not fully
2900percentincreaseinearmarkssincethe transparenttothepublic.Suchearmarkstendto
year2000 be viewed as captured revenue that belongs to
theprogrambenefitingfromtheearmarkrather
SALES TAX EARMARKS than as general taxpayer dollars. In addition,
programs funded with earmarked revenues are
As used in this summary, the term earmark
often not fully prioritized against competing
referstorevenuesetasideforaspecificpurpose
needs(includingeducation),asanintegralpartof
thatwouldotherwisebedirectedtotheGeneral
theannualbudgetprocess.
Fund. Over the past decade, the legislature has

dramatically increased the use of earmarks,
When considering the impact of previous
particularly sales tax earmarks (see Figure 1).
legislativeactionstocurrentbudgetingdecisions,
Historically, the legislature had previously
it should be noted that references to new
resisted revenue earmarks because programs
revenue have historically included only
fundedthroughearmarkstendtoreceivefarless
EducationFundandGeneralFundincreaseseven
scrutiny than those subject to the intense
though actual growth in state tax collections,
examination and prioritization of General Fund
which includes earmarked revenue, is higher
revenuethroughtheannualbudgetprocess.
than the reported new revenue. Similarly, the
FIGURE 1 SALES TAX EARMARK AMOUNTS term state funds has historically been used
synonymously with Education Fund and General
$700 Fundrevenueimplyingthatearmarkedgeneral
Millions
state tax revenues outside of the General Fund

$600
are somehow not fully available state funds
$500 subjecttopolicydecisions,eventhoughtheyare
generatedbyageneralstatetax.
$400

$300 A better approach would be for user fees to
$200
cover a larger share of programs that currently
receive earmarked sales tax revenue. For
$100 example, drivers currently pay user fees in the
$0 form of registration fees and fuel taxes. In
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
addition, road usage fees that directly charge
39
drivers based on miles driven are beginning to IfearmarkingGeneralFundrevenuecontinuesto
attract more attention from policymakers as a be viewed as a successful budget strategy to
potentialfueltaxreplacement. permanently fund programs, it is likely that
program advocates will continue to advance
However, revenue currently produced by the proposalstodedicategeneralrevenuesforother
existing user fee structure does not meet programs and services in order to bypass the
demandforservices,whichmeansdriversdonot annual scrutiny and prioritization of the budget
currently cover their full share of transportation process.TheGovernoropposestheexpansionof
costs. Increasing user fees for transportation existing earmarks or the enactment of new
wouldallowforareductioninsalestaxearmarks. earmarks.

Similarly, sales tax earmarks going to water Most insurance premium tax revenue is
projects could be reduced by more directly depositedintotheGeneralFund.Aportionofthe
charging water users through monthly water insurance premium tax has been earmarked for
chargesandimpactfees. thefireacademyandlocalfirefighterretirement.
Duetovarioustaxreportingchanges,theportion
GROWTH IN GENERAL FUND & of this revenue source deposited into the
SALES TAX EARMARKS General Fund has significantly increase, with a
corresponding decrease in the revenues flowing
Figure2illustratesthatsincetheGreatRecession,
through the earmark to restricted funds for
revenues that were historically deposited into
variousfirerelatedissues.Ashedidlastyear,the
the General Fund have experienced steady
Governor recommends that funds be
growth. One reason for the slow growth of
appropriated from the General Fund to cover
GeneralFundrevenueisthesignificantportionof
theseimportantprogramsbutopposeseffortsto
totalrevenuegrowththathasbeenearmarked.
revise or expand earmarks for the program,
especiallyearmarksthatgrowautomatically.

FIGURE 2 SALES TAX EARMARKS AND GENERAL FUND REVENUES
$3.5
Billions
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
General Fund Earmarks
40
Table 1 - General Fund Earmarks and Set-Asides FY 2017 - FY 2019
Earmarks are revenues set aside for a certain purpose rather than deposited into the General Fund. This table includes earmarks from revenues that have historically been
deposited into the General Fund. As shown in the table, General Fund earmarks total about $740 million in FY 2019, with $654 million coming from sales tax earmarks. All
numbers are in millions of dollars.
% Chg. % Chg.
Actual Authorized Consensus FY 17 - Consensus FY 18* -
Earmark Item Statute FY 2017 FY 2018 FY 2018* FY 18* FY 2019* FY 19*
Sales and Use Tax
Transportation:
Transportation Investment Fund of 2005 (8.3% of sales tax) 59-12-103(8) 202.7 213.2 214.9 6.0% 223.4 3.9%
Transportation Investment Fund of 2005 (30% of growth above FY 11) 59-12-103(8) 195.6 223.5 225.3 15.2% 234.2 3.9%
Transportation Investment Fund of 2005 (3.68% of sales tax in FY19) 59-12-103(9) 64.0 63.0 63.0 -1.6% 99.0 57.2%
Transportation Investment Fund of 2005 (1/16%) 59-12-103(6) 35.7 30.1 30.2 -15.3% 23.6 -22.0%
Transportation Investment Fund of 2005 (0.025% non-food) 59-12-103(11) 25.2 22.1 22.3 -11.7% 18.5 -16.9%
Subtotal - Sales and Use Tax Transportation 523.2 551.9 555.7 6.2% 598.7 7.7%
Water:
Water development (85% of $ over $18.5M gen. by 1/16%) 59-12-103(5)(d) 16.5 18.3 16.7 1.3% 18.0 7.7%
Water Infrastructure Account 59-12-103(6) 0.0 7.5 7.6 N/A 15.7 108.0%
Water development (41% of $17.5M) 59-12-103(4)(e) 7.2 7.2 7.2 0.0% 7.2 0.0%
Drinking water (20.5% of $17.5M) 59-12-103(4)(g) 3.6 3.6 3.6 0.0% 3.6 0.0%
Water quality (20.5% of $17.5M) 59-12-103(4)(f) 3.6 3.6 3.6 0.0% 3.6 0.0%
Endangered species (14% of $17.5M) 59-12-103(4)(b)(i) 2.5 2.5 2.5 0.0% 2.5 0.0%
Water rights (15% of $ over $18.5M gen. by 1/16%) 59-12-103(5)(e) 1.1 1.3 2.9 173.7% 3.2 7.7%
Agricultural resource development (3% of $17.5M) 59-12-103(4)(c) 0.5 0.5 0.5 0.0% 0.5 0.0%
Watershed rehabilitation ($ over $18M gen by 1/16%, up to $500K) 59-12-103(5)(b) 0.5 0.5 0.5 0.0% 0.5 0.0%
Water rights (1% of $17.5M) 59-12-103(4)(d) 0.2 0.2 0.2 16.7% 0.2 0.0%
Cloud seeding ($ over $18M gen by 1/16%, up to $150K) 59-12-103(5)(c) 0.2 0.2 0.2 0.0% 0.2 0.0%
Subtotal - Sales and Use Tax Water 35.7 45.3 45.3 27.1% 55.0 21.3%
Other:
Qualifed Emergency Food Agency Fund 59-12-103(10) 0.5 0.5 0.5 0.0% 0.5 0.0%
Throughput Infrastructure 59-12-103(12) 26.0 27.0 27.0 3.8% 0.0 -100.0%
Subtotal - Sales and Use Tax Other 26.5 27.5 27.5 3.8% 0.5 -98.1%
Subtotal - All Sales and Use Tax Earmarks 585.4 624.7 628.6 7.4% 654.2 4.1%
Severance Tax:
Permanent State Trust Fund Article XIII, Sec. 5 6.8 8.0 7.8 13.6% 9.8 26.6%
Subtotal - Severance Tax 6.8 8.0 7.8 13.6% 9.8 26.6%
Cigarette Tax:
Dept. of Health - tobacco prevention and control media campaign 59-14-204(5)(c)(i) 0.3 0.3 0.3 0.0% 0.3 0.0%
Dept. of Health - tobacco prevention, reduction, cessation, control 59-14-204(5)(c)(ii) 2.9 2.9 2.9 0.0% 2.9 0.0%
University of Utah - Huntsman Cancer research 59-14-204(5)(c)(iii) 2.0 2.0 2.0 0.0% 2.0 0.0%
University of Utah - medical eduation 59-14-204(5)(c)(iv) 2.8 2.8 2.8 0.0% 2.8 0.0%
Subtotal - Cigarette Tax Earmarks 8.0 8.0 8.0 0.0% 8.0 0.0%
Beer Tax:
Alcohol law enforcement 59-15-109 5.4 5.6 5.6 3.5% 5.9 4.6%
Subtotal - Beer Tax 5.4 5.6 5.6 3.5% 5.9 4.6%
Insurance Premium Tax:

Fire Academy Support Account 53-7-204(2) 2.7 2.8 4.5 69.7% 2.9 -36.4%
Relative Value Study Restricted Account 59-9-105 0.1 0.1 0.1 -3.5% 0.1 11.8%
Workplace Safety Account 34A-2-701 1.4 1.4 1.5 9.4% 1.5 -1.3%
Employers' Reinsurance Fund 34A-2-702 20.0 20.8 18.0 -9.8% 21.6 19.6%
Uninsured Employers' Fund 34A-2-704 5.7 5.9 2.2 -61.2% 6.2 178.4%
Firefighters' Retirement Trust & Agency Fund 49-11-901(5) 5.3 5.5 9.0 69.6% 5.7 -36.4%
Subtotal - Insurance Premium Tax 35.2 36.5 35.4 0.7% 38.0 7.2%
General Fund Set-Asides

Economic Development - Tax Increment Financing 63N-2-109 2.9 3.3 3.3 13.1% 3.3 0.0%
Economic Development - Tourism Marketing Performance Account 63N-7-301 21.0 21.0 21.0 0.0% 22.0 4.8%
Subtotal - General Fund Set-Asides 23.9 24.3 24.3 1.6% 25.3 4.1%
Total - General Fund Earmarks 664.6 707.0 709.5 6.8% 741.1 4.4%
*Consensus revenue estimates adopted by GOMB, LFA, and Tax Commission in October 2017
41
Table 2 Governors Budget Recommendations for Education
PublicK12Education Onetime Ongoing Total
A.NewEducationFundandGeneralFund
4%IncreaseintheWeightedPupilUnit(WPU) $0 $121,182,300 $121,182,300
NewWPUAddonforStudentsAtRiskofAcademicFailure1 $0 $33,833,200 $33,833,200
ConsensusEnrollmentGrowth(7,681NewStudents)2 $0 $33,488,500 $33,488,500
IncreaseinLocalLevyGuarantee(EqualizationofLocalSchoolPropertyTaxes) $0 $12,800,000 $12,800,000
NewLocalLevyGuaranteeforRuralSchools(EqualizationofLocalSchoolPropertyTaxes) $0 $2,000,000 $2,000,000
BoardofEducationStaffCompensation(2%)andInternalServiceFundCosts $0 $1,113,000 $1,113,000
BeverleyTaylorSorensonArtsLearningProgram $0 $1,000,000 $1,000,000
UtahStateInstructionalMaterialsAccessCenter(USIMAC)Expansion $500,000 $450,000 $950,000
StatutoryIncreaseforUSDBEducators(Steps&Lanes) $0 $765,800 $765,800
DiscretionaryFundingforBoardofEducationtoAddressStaffingPriorities $0 $313,000 $313,000
StatutoryIncreaseforCarsonSmithScholarship $0 $300,000 $300,000
EnrollmentGrowthforFourAdditionalBelowthelinePrograms3 $0 $274,900 $274,900
K12EF/GFSubtotal $500,000 $207,520,700 $208,020,700
B.ReprioritizedFunding(NonlapsingBalances,DedicatedCredits,andTransfers)
NewWPUAddonforStudentsAtRiskofAcademicFailure1 $0 $28,034,600 $28,034,600
ConsensusEnrollmentGrowth(7,681NewStudents)2 $2,556,100 $0 $2,556,100
IncreaseinLocalLevyGuarantee(EqualizationofLocalSchoolPropertyTaxes) $10,200,000 $0 $10,200,000
CANVASLearningManagementSystemK12Schools $0 $1,900,000 $1,900,000
TeacherSupplies&Materials $1,000,000 $0 $1,000,000
BeverleyTaylorSorensonArtsLearningProgram $625,600 $0 $625,600
K12ReprioritizedSubtotal $14,381,700 $29,934,600 $44,316,300
PostsecondaryEducation Onetime Ongoing Total
C.NewEducationFundandGeneralFund
WageandWagebasedBenefitsCompensation(2%) $0 $19,767,600 $19,767,600
HealthInsuranceIncrease4 $0 $7,465,300 $7,465,300
AdditionalCompensationEliminationofMandatory(TierI)TuitionIncrease(USHE) 5 $0 $7,953,000 $7,953,000
DiscretionaryFundingforBoardofRegentstoAddressBudgetPriorities $0 $24,000,000 $24,000,000
DiscretionaryFundingforUSTCBoardofTrusteestoAddressBudgetPriorities $0 $7,000,000 $7,000,000
SUCCESSFrameworkPilotProjects $1,000,000 $0 $1,000,000
UETNEquipment $1,500,000 $500,000 $2,000,000
UETNExpandedConnectivity $0 $650,000 $650,000
TelehealthOperations $0 $350,000 $350,000
UETNNetworkOperationsCenter24/7StaffingStage2 $0 $300,000 $300,000
CapitalDavisTechnicalCollegeAlliedHealthBuilding $34,364,500 $0 $34,364,500
CapitalDavisTechnicalCollegeAlliedHealthBuildingOperationsandMaintenance(O&M) ($661,300) $661,300 $0
NewBuildingsOperations&MaintenanceSavings(ConstructionNotYetCompleted) ($2,378,000) $0 ($2,378,000)
PostsecondaryEF/GFSubtotal $33,825,200 $68,647,200 $102,472,400
D.ReprioritizedFunding(NonlapsingBalances,Transfers,andOtherExistingFunding)
UtahFutures $2,000,000 $0 $2,000,000
PerformancebasedFunding6 $6,500,000 $0 $6,500,000
GOED/PostsecondaryPartnershipforTargetedTrainingPrograms6 $9,583,600 $0 $9,583,600
CapitalUniversityofUtahMedicalEducationandDiscoveryRehabilitationHospital $5,000,000 $20,000,000 $25,000,000
CapitalDixieStateUniversityHumanPerformanceCenter $17,000,000 $0 $17,000,000
CapitalWeberStateSocialScienceBuildingRenovation $15,940,000 $0 $15,940,000
PostsecondaryReprioritizedSubtotal $56,023,600 $20,000,000 $76,023,600
NewStateEF/GFFunding(AandC) $34,325,200 $276,167,900 $310,493,100
ReprioritizedFunding(BandD) $70,405,300 $49,934,600 $120,339,900
TOTAL $104,730,500 $326,102,500 $430,833,000
1.TotalfundingforthenewWPUAddonforStudentsAtRiskofAcademicFailureis$63,333,200andconsistsof$28,034,600reallocatedfromthecurrentEnhancementforAtRisk
Studentsprogramand$35,156,700ofnewfunding($1,465,400ofwhichisfundingforenrollmentgrowthandtheWPUincreasefortheEnhancementforAtRiskStudentsprogram.
2.Consensusenrollmentgrowthwillcost$36,044,700instateEF($33,488,500ongoingand$2,556,100onetime).Onetimefunding(forFY2018)isfromnonlapsingbalanceswithinthe
MSP;thelocalrevenuecontributionfromthebasiclevyisexpectedtoincreaseby$9,032,500inFY2019.
3.GuaranteeTransportationLevy,TitleIParaeducators,K3ReadingImprovement,EarlyIntervention
4.Thisincludesa$181,000decreaseinthecostofdentalinsurance.
5.Thisfundingistopayfortheportion(25%)oftheUSHEcompensationincreasetraditionallypaidforwithtuitionrevenue.
6.UseofonetimePerformanceFunding(SB117)savings.
42
PublicEducationPriorities
Governorandlegislatureontracktodeliver$1billonongoinginvestmentbyFY2021
HIGHLIGHTS educator compensation, student counseling,

professionallearning,technology,etc.
$208 million in new funding for public
localaccountabilitythatenablesconstituents
education, bringing 3year total ongoing
and policymakers to clearly understand the
increase to $674 million (67 percent of $1
useoftaxpayerdollars
billiontargetover5years)
increasedfundingsupportforstudentsatrisk
$170 million ongoing in flexible, local
of academic failure and for school districts
fundingconsistingof:
4 percent increase in the standard with a lower property tax base per student
WPU($121million) andastronglocaltaxeffort
An amount equal to a 1.6 percent WPU
increasetoinclude:
o $34 million for WPU addon for $1 Billion
studentsatriskofacademicfailure Over 5 Years
o $25million($14.8millionongoingand
$10.2 million onetime) for $800 M
equalization ofpropertytaxesthrough 2019 $674
state minimum funding guarantees, $600 M
including $2 million ongoing for rural 2018
schooldistricts $400 M
$36 million ($33.5 million ongoing and $2.5 2017
million onetime) in new state funds for $200 M
enrollment growth of nearly 7,700 new
students
$1.6 million for Beverley Taylor Sorenson
ArtsLearningProgram
$3.7 billionintotalstatespendingonpublic
education BACKGROUND

OBJECTIVE Utahs future economic prosperity depends on
an educated population. Utahs economy
To develop effective public education policies continues to garner the attention of major
and funding solutions that align with the tenets national and international firms that demand
oftheUtahEducationRoadmapandensure: highlyskilledworkers.EducatingUtahsyouthto
significant investment in public education to meet employers needs requires time and
facilitate Utahs goal to be the number one consistent investment. Failure to invest in
stateforstudentachievement(theGovernor education will hamper Utahs economic growth,
andlegislatureremainontracktodeliver$1 bothintheshortandlongterm.
billioninnewongoingfundingbyFY2021)
meaningful local flexibility with funding to Appropriate investments in education sustain
address unique local needs related to improvementinoutcomesthatnotonlypromote
43
economicsuccessforthestatebyattractingand resourcescurrentlyavailable.
developing firms offering highpaying jobs, but Results of the National Assessment of
also ensure our students have the skills needed EducationalProgress(NAEP)provideevidencefor
to be ready for college, careers, and meaningful the quality of Utahs K12 system. Utahs 8th
civic engagement. As the Governor has said, grade students rank 1st in the nation on the
whileimprovingeducationaloutcomesisnotall science assessment while Utahs 4th grade
about the money, it is some about the money. students rank 6th. Utahs 4th and 8th grade
Adequate resources are necessary to produce studentsareinortrendingtowardthetop10in
desiredoutcomes. math, reading, and science. An independent
analysis of 18 distinct NAEP achievement
The Governors Education Excellence measuresranksUtah14thoverall.
Commission,comprisedofkeystakeholdersfrom
the education community, recently adopted the A comparison of the average combined NAEP
Utah Education Roadmap to guide decisions scores and perstudent expenditures illustrates
about policy and additional funding. The thelevelofstudentperformancestatespurchase
Roadmapidentifiescriticalareasofattentionand with their K12 expenditures. The comparison
examples of strategies for consideration. The reveals that Utah receives a better return on
Commissionvotedtofocusonprovidingsupport investmentthananystateinthenation.
to students at risk of academic failure in the
comingyear. ACT results provide further evidence of the
quality of Utahs K12 system. Nationally, Utahs
CELEBRATING UTAHS EDUCATION students are tied for 30th place. However, a
SUCCESSES simplerankingofcompositeACTscoresdoesnot
provide an accurate assessment of how Utahs
For years, headlines have noted Utahs low per
high school students compare to their peers
studentexpendituresand,eachyear,callsforK
across the nation because only 17 states, like
12 funding have focused primarily on increased
Utah, require 100 percent of their students to
spending. While funding levels are important, it
take the ACT. In the 15 states with the highest
is also important for taxpayers to know what
averagecompositescores,amereonequarterof
they are purchasing for the sizeable investment
students take the ACT. Among the states that
in K12 education. Utahs public education
require all students to take the ACT, Utahs
system is performing admirably with the
compositescoreranks5th.

8th-grade Science In addition to nationallynormed NAEP and ACT
measures, graduation rates provide additional
evidence of the quality of Utahs K12 system.
1st
Since 2011, the graduation rate has steadily
increased from 76 percent to 86 percent, which
exceedsthenationalaverage.

ROOM FOR IMPROVEMENT
REMAINS
While the evidence shows that Utahs students
outperform many of their peers, NAEP and ACT
scores and graduation rates all show room for
improvement. Additionally, not all of Utahs
44
studentsexperiencethesamesuccess.Persistent to calculate the amount. The average
achievement gaps continue in many student supplemental funding is 2025 percent of a
groups. The Governor continues to advocate for states perpupil funding. Through the
resources that enable all of Utahs students to Enhancement for AtRisk Students program in
continue improvingensuring that Utah the Minimum School Program, Utah currently
becomesthetopstateforeducationaloutcomes provides an additional 4 percent, or $129 per
inthenation. student at risk of academic failure. Utah also
receives approximately $90 million in federal
TheGovernorhasalsocommittedtoincreasethe Title I funding that school districts and charter
return on each taxpayer dollar invested in the schoolsusetosupportthesestudents.
public education system. During the next three
years, the Governor will continue to collaborate The Governors budget proposes an additional
with key stakeholders and education officials to $33.8 million to provide students at risk of
identify and seize opportunities to more academic failure with the extra support they
efficientlydeliverK12services. need to succeed. The Governors budget
proposes delivering this funding through a new
CURRENT ISSUES WPU addon subprogram within the Basic
Programtoprovidelocalflexibilityandproposes
Students at Risk of Academic Failure. Ensuring
discontinuing the addon as a separate program
accessandequityineducationalopportunitiesis
after five years if the targeted students SAGE
a moral and economic imperative for Utah's
scores, ACT scores, graduation rates, or other
ongoing growth and prosperity. When students
measures of student success fail to improve.
and their families succeed, Utah prospers. It is
Investing additional revenue into this new WPU
important all students be held to high
addon will be a focus for future budgets to
expectations and receive adequate support for
ensure that there are sufficient resources to
success. While Utah students as a whole
movetheneedle.
experience significant academic success,

notallstudents experience the same level of
SchoolReadinessandPayforSuccess.TheUtah
success. Despite an increased focus in Utah on
SchoolReadinessInitiative(HB96)waspassedin
assisting traditionally underserved populations
2014andincluded$3millionperyearinongoing
and students at risk of academic failure, these fundingforPayforSuccessandgrantprograms.
students tend to score lower on the ACT,
demonstrate lower proficiency rates on the ThePayforSuccessprogramleveraged$7million
states SAGE assessment, and graduate at a through a publicprivate partnership to fund
lowerratethantheirpeers. early childhood preschool for economically
disadvantaged children. The investor payment
Manyscholarshaverecognizedthatitcostsmore covered five cohorts of classes of 3 and 4year
tohelpstudentsidentifiedasatriskofacademic old preschoolers. In the first school year (2013
failure to achieve any given level of student 2014),theclassof600studentswasaproofof
performance.Studentsatriskofacademicfailure conceptyearwiththeUnitedWayandSaltLake
often have limited English proficiency, rank low County assuming responsibility for the success
on assessments, move between schools during payments. The State of Utah is responsible for
theacademicyear,orareinpoverty. anestimated$6.8millionininvestorrepayments
for the remaining four years, including $1.4
Most states provide some level of supplemental million in interest payments, if the agreedupon
funding for students at risk of academic failure success metrics are met. Each of those four
andcommonlyusesomeformofpupilweighting cohorts included between 750 and 1,000
children.
45

The second program in the HB 96 legislation Inaddition,theGovernorsbudgetproposes$25
includedagrantprogramtohelpbothpublicand million ($14.8 million ongoing and $10.2 million
private preschool providers raise their programs onetime), including $2 million for rural school
to high quality. The grant program has spent a districts, to further equalize the states
little more than $4 million for grants to commitment to reward local taxing efforts
providers, program administration, and an through the voted and board levy guarantee
independentevaluator. programs,whicharelocallycontrolled.

The Governors Office of Management and
Utahs Tax Structure. Utahs tax structure,
Budget oversees the program intermediary,
particularlythesalestax,isnotwellalignedwith
provider coordination, and independent
the current economy and a growing number of
evaluator functions for both programs. FY 2019
exemptions and credits have eroded the tax
beginning fund balances are anticipated to be
sufficienttocovertheremainingPayforSuccess base. Although sales tax is not typically used to
repayment obligations. The Governor fundpubliceducation,thismisalignmentcreates
recommends that the portion of the $3 million significantfundingchallengeswhendealingwith
remaining after covering ongoing program theimpactsofpopulationandeconomicgrowth,
administrationandevaluationcostsbeallocated which do impact higher education and in turn
directly to increasing the number of students in indirectly impacts public education. Utah must
highquality preschools rather than paying maintain workplace competitiveness by
additionalinterestcoststoinvestors. maintaining a competitive tax structure and
ensuring the availability of a highly educated
Local Control vs. State Control. The Governor workforce.
applauds stakeholders for developing a
methodological approach for evaluating the The Governor calls upon education stakeholders
competing needs of local and state control over to work with policymakers and the business
funding. The Governor firmly believes that local community to identify opportunities to
board members, superintendents, principals, modernize outdated components of Utahs tax
teachers, and parents know best how to meet structure and to engage on the issue of tax
their students needswhich they do most exemptions and tax credits that erode the tax
effectively when granted local funding control. baseasoutlinedintheTaxModernization:ACall
The Governor also believes that use of the toActionbudgetandpolicybrief.
methodological approach recently developed by
lawmakers will reveal local control as the GUIDING PRINCIPLES
dominant need in most funding decisions and The state must work together with local
commits to ensure that local leaders have as school boards to invest sufficient funding to
muchcontroloverfundingaspossible. ensure Utah becomes the top state in the
nationforstudentachievement.
Local taxing authority represents an important The state must not micromanage the public
and significant opportunity for local school education system. Instead, the state must
boardsandcitizenstoexerciselocalcontrol.Over continue to provide district and charter
$800 million in unused local taxing authority schoolboardswithflexibleresourcesandthe
remainsavailabletomeetlocalneeds.Proposed responsibility to prioritize expenditures
property tax changes detailed in the Tax accordingtolocalneedtoachieveoutcomes
Modernization:ACalltoActionbudgetandpolicy thepublicexpects.
briefwouldprovideadditionaltaxcapacityof$50 Policymakers must continue to monitor
million. studentachievementtoensurethatthe$3.7
46
billion in state revenues (estimated $6.8 $63.2 million ($33.8 million new ongoing
billion in total revenues) allocated to public funds and $29.5 million in redirected funds)
education continues to translate to positive for a WPU addon for students at risk of
student outcomes. In addition, stakeholders academic failureschools will have the
must make efforts to clarify the relationship flexibilitytousethisfundingtosupportthese
betweenspendingandeducationaloutcomes studentsbyprovidingtutors,counselors,and
so policymakers and the general public can othertargetedresources
better understand the outcomes expected $25million($14.8millionongoingand$10.2
fromcurrentandproposedinvestments. million one time) for further local property
Policymakersshouldtaketimetounderstand equalizationthroughthelocallevyguarantee
the significant data currently available on programs, with $2 million targeted to rural
school performance, including how schools
socioeconomic factors influence student $1milliononetimeforteachersupplies
outcomes. $1.6millionfortheBeverleyTaylorSorenson
Thestatemustsuccessfullyrecruitandretain Arts Learning Program ($1 million new
quality teachers to ensure longterm ongoingand$600,000onetime)
economic success. Providing local school $1.7millionfortheUtahSchoolsfortheDeaf
boards with flexible resources to invest in and the Blind (over $765,000 for educators
teachers,notonlythroughcompensationbut and$950,000fortheUtahStateInstructional
also through professional learning, is a key MaterialsAccessCenter)
factorinrecommendinga4percentincrease $300,000 for growth in the Carson Smith
intheWPUvalueandenableslocalboardsto ScholarshipProgram
build upon strategies already in place while $313,000fortheStateBoardofEducationto
balancingothercriticalneeds. addstaffpositions
$2milliononetimeforUtahFutures
BUDGET RECOMMENDATIONS $2millionauthorityforUETNtopoolfunding
from interested local education agencies
$36 million for enrollment growth ($33.5
(LEAs) to provide the CANVAS learning
millionongoingand$2.5milliononetime)
managementsystem
$121.2millionfora4percentincreasetothe

WPU
For a summary of all education funding
increases,seeTable2.
47
48
PublicEducationFundinginUtah
Governorrecommends$208millioninneweducationfunding,includingenrollmentgrowthof$36
millionand$170millioninlocallycontrolledfunding
HIGHLIGHTS students over FY 2017. Nearly 7,700 additional

studentsareanticipatedtoenrollinschoolsinFY
$170 million ongoing in flexible, local
2019,bringingtotalestimatedenrollmenttoover
fundingconsistingof:
4 percent increase in the standard 660,000. The Governor recommends full
WPU($121million) enrollment growth funding including $33.5
An amount equal to a 1.6 percent WPU million in FY 2019 and $2.5 million in FY 2018
increasetoinclude: fromstaterevenue.
o $34 million for WPU addon for
FIGURE 1. PUBLIC EDUCATION TOTAL
studentsatriskofacademicfailure ENROLLMENT
o $25million($14.8millionongoingand
$10.2 million onetime) for
equalization ofpropertytaxesthrough
state minimum funding guarantees,
including $2 million ongoing for rural
schooldistricts
$36 million($33.5 million ongoing and $2.5
million onetime) in new state funds for
enrollment growth of nearly 7,700 new
students
$800 million in unused local property tax
FIGURE 2. PUBLIC EDUCATION ENROLLMENT
capacityavailableforoperationsandcapital
GROWTH AND DIFFERENCE IN BIRTHS 5 & 17
$3.7 billion in total state funds for public
education
OVERVIEW
FundingUtahseducationneedscanbecomplex;
however, the overarching structure of the
education funding system is conceptually
simplestateandlocalfundingarecombinedin
theMinimumSchoolProgramtoprovideabasic
level of similar educational opportunities to
students throughout the state through
equalizationprograms.

Enrollment Increases.Thenumberof childrenin As illustrated in Figures 1 and 2, student
Utahs public schools continues to grow. The enrollment has increased significantly over the
states student population reached more than past decade. While enrollment growth is
652,000 in FY 2018an increase of 7,900
49
anticipated to continue, the change in internal property taxes, but the Charter School Local
schoolage population is expected to grow at a Replacement Program provides charter schools
slower pace. However, strong increases in with funding equal to the statewide perpupil
migrationtoUtahmayoffsettheslowingrateof average of certain property tax and state
internalgrowth. guaranteerevenues.

Total Funding.Utahs public education system In FY 2019, school districts are projected to
has a shared state and local governance and generate an estimated $2.6 billion in local
funding structure. The legislature and governor funding,consistingofapproximately$400million
establish tax policies to generate revenue, in the mandatory basic school levy and about
allocatestatefundsforpubliceducation,andset $2.2billionindiscretionarylocaltaxesandother
broad parameters within which the system local sources. Over $800 million in local
operates.TheStateBoardofEducationexercises discretionary property tax authority remains
general control and supervision of public available under existing statutory property tax
education. School district boards impose local ratecaps.Thistotalincludesover$355millionin
property taxes and local school district and levies for school operations ($166 million board
charter school boards oversee the delivery of levyand$189millionvotedlevy)andover$446
educationservices.TheGovernorrecommendsa millionoftaxingauthorityunderthecapitallevy
thorough review of the K12 education thatcanbeusedforitemssuchasbuildingsand
governancestructuretoensurethatitisproperly technologyinfrastructure.
designedtoleadUtahtotheheadofthenations
class. While unused property tax capacity varies by
schooldistrict,alldistrictshaveunusedproperty
Considering all funding sources, funding for tax authority to fund operations and all but one
Utahs public education system will total an haveunusedauthoritytofundcapitalneedssuch
estimated $6.85 billion in FY 2019, or about as technology infrastructure. In addition, under
$10,400 per student. This includes about $3.75 the tax reform proposal detailed in the Tax
billion from state funds (generally income tax), Modernization:ACalltoActionbudgetandpolicy
about $2.6 billion from local funds (generally brief,anadditional$50millioninlocalauthority
property tax), and about $540 million from would be available under the recommendation
federal funds. State funds constitute tofurtherconsolidateschoolpropertytaxlevies.
approximately55percentoftotalschoolfunding.
About$3.5billionofthe$3.75billionfromstate FIGURE 3. STATE, LOCAL, AND FEDERAL
FUNDING FOR PUBLIC EDUCATION
funds flow through the Minimum School
Program(seeTable3).
Federal
State Funding.Publiceducationis Utahslargest 8%
statefunded program, with the Governor
Local State
recommending over $3.5 billion from the 37%
Education Fund and General Fund. This amount 55%
equals about half of the states combined
EducationFund/GeneralFundbudget.
LocalFunding.Statelawallowsschooldistrictsto
impose discretionary property tax levies to
provide services above the levels possible with
state funding. Charter schools cannot impose
50
Unlike Utahs substantially equalized funding for subprogramwithintheMinimumSchoolProgram
operations, capital expenses are generally and comprises about 45 percent of all K12
funded at the local level with property taxes or funding.Localschoolboardsallocatethesefunds
otherlocally controlledfunds.InFY2019,about for local priorities. Utahs income tax system is
$33.2 million in state funding is provided to the primary source of state funds for the Basic
equalizefundingforcapitalinfrastructure. School Program. A uniform property tax (the
basic levy) that school districts must levy is the
WHAT IS THE MINIMUM SCHOOL secondarysource.
PROGRAM?
School districts and charter schools are entitled
Of the estimated $6.85 billion public education
totheamountoffundingequaltotheproductof
funding total for FY 2019, the Minimum School
thenumberofweightedpupilunits(WPU)inthe
Program accounts for about $4.35 billion (63
school district or charter school and the dollar
percent)andiscomprisedofthefollowingthree
value of the WPU. The number of WPUs is
major subprograms: (1) the Basic School
generally based on the number of students. For
Program, (2) the Voted and Board Local Levy
example, a student in grades 112 in a school
Programs, and (3) the RelatedtoBasic Program.
district is equal to 1.0 WPU; a kindergarten
Ofthe$4.35billioninMinimumSchoolProgram
student is equal to 0.55 of a WPU. Additional
funding, about $880 million comes from a
WPUs are based on special education, staffing,
portion of local school property taxes, with the
rural, and other needs. As detailed in the Public
remaining$3.5billionallocatedfromstatefunds.
Education Priorities budget and policy brief, the
FIGURE 4. MINIMUM SCHOOL PROGRAM Governor recommends a new WPU addon for
FUNDS ($ IN BILLIONS studentsatriskofacademicfailure.

Related Voted & Board Local Levy Programs.Through
to Basic
Related $0.02 theVoted&BoardLocalLevyPrograms,thestate
Levy to Basic provides approximately $200 million from state
Programs $0.63
$0.20 funds to school districts that generate
comparatively low property tax revenue per
Levy
Minimum student and make significant local property tax
School Program Basic
Programs Program effort. The Governor recommends an additional
$0.45 $4.35
$2.64 $25 million ($14.8 million ongoing and $10.2
million onetime) to increase program funding
Basic
Program guarantees,including$2millionforruraldistricts.
$0.41
Related to Basic Program.The Related to Basic
Program is comprised of state funding
State Funds Property Tax appropriated for a number of specific purposes
suchassalaryadjustmentsforeducators,student
BasicSchoolProgram.Recommendedatover$3 transportation,andcharterschoollocalproperty
billion, the Basic School Program is the largest taxreplacement.
51
Table3MinimumSchoolProgram&SchoolBuildingProgram
Governor'sRecommendation
A C D E F G
FiscalYear2017 FiscalYear2018 FiscalYear2019
ActualExpenditures RevisedAppropriations RecommendedAppropriations
Section1:TotalMinimumSchoolProgramRevenue
RevenueSources Amount Amount Amount
A.StateRevenue
1.EducationFund $2,928,674,000 $3,110,558,400 $3,315,128,400
2.EducationFund,Onetime 8,420,000 9,256,100 1,625,600
3.UniformSchoolFund 23,000,000 27,500,000 27,500,000
4.UniformSchoolFund,Onetime 0 3,500,000 0
5.USFRestrictedInterest&DividendsAccount 49,275,900 0 0
6.USFRestrictedTrustDistributionAccount 0 50,400,000 74,000,000
7.EFRestrictedCharterSchoolLevyAccount 0 22,100,000 23,839,600
8.EFRestrictedMinimumBasicGrowthAccount 56,250,000 56,250,000 56,250,000
1
B.TransferstoEducationFund,Onetime 0 (16,381,700) 0
C.BeginningNonlapsingBalances 26,937,200 50,273,000 33,891,300
2
D.ClosingNonlapsingBalances (50,273,000) (33,891,300) (33,891,300)
SubtotalStateRevenue: $3,042,284,100 $3,279,564,500 $3,498,343,600
E.LocalPropertyTaxRevenue
1.BasicLevy $392,266,800 $399,041,300 $408,073,800
2.VotedLocalLevy 282,607,700 299,360,200 324,424,900
3.BoardLocalLevy 93,391,000 100,416,300 109,864,100
4.BoardLocalLevyReadingLevy 15,000,000 15,000,000 15,177,000
SubtotalLocalRevenue: $783,265,500 $813,817,800 $857,539,800
TotalRevenue: $3,825,549,600 $4,093,382,300 $4,355,883,400
Section2:Revenue&ExpenditureDetailsbyProgram
PartA:BasicSchoolProgram(WeightedPupilUnitPrograms)
WPUValue : $3,184 $3,311 $3,443
BasicTaxRate: 0.001675 0.001596 0.001469
A.StateRevenue
3
1.EducationFund $2,253,323,600 $2,422,483,400 $2,618,170,100
2.EducationFund,Onetime 10,000,000 (3,500,000) 0
3.UniformSchoolFund 23,000,000 27,500,000 27,500,000
4.UniformSchoolFund,Onetime 0 3,500,000 0
B.LocalPropertyTaxRevenueBasicLevy 392,266,800 399,041,300 408,073,800
C.BeginningNonlapsingBalances 11,073,800 25,934,500 9,552,800
1
D.TransferstoEducationFund,Onetime 0 (16,381,700) 0
E.ClosingNonlapsingBalances 2 (25,934,500) (9,552,800) (9,552,800)
TotalRevenue: $2,663,729,700 $2,849,024,700 $3,053,743,900
ExpendituresbyProgram Amount WPUs Amount WPUs Amount
A.RegularBasicSchoolProgram
1.Kindergarten $67,198,900 27,099 $89,724,800 26,383 $90,836,700
2.Grades112 1,836,815,400 587,693 $1,945,851,500 593,523 2,043,499,700
3.ForeignExchangeStudents 920,200 328 $1,086,000 328 1,129,300
4.NecessarilyExistentSmallSchools 29,877,000 9,514 $31,500,900 9,514 32,756,700
5.ProfessionalStaff 171,789,700 55,808 $184,780,300 55,545 191,241,400
6.AdministrativeCosts 4,600,900 1,565 5,181,700 1,505 5,181,700
Subtotal: $2,111,202,100 682,007 $2,258,125,200 686,798 $2,364,645,500
B.RestrictedBasicSchoolProgram
1.SpecialEducationRegularAddonWPUs $246,398,300 80,250 265,707,800 82,342 $283,503,500
2.SpecialEducationRegularSelfContained 44,199,200 13,944 46,168,600 13,970 48,098,700
3.SpecialEducationPreSchool 33,105,000 10,777 35,682,600 11,052 38,052,000
4.SpecialEducationExtendedYearProgram 1,356,800 439 1,453,500 447 1,539,000
5.SpecialEducationImpactAid 6,393,300 1,988 6,584,100 2,015 6,937,600
6.SpecialEducationIntensiveServices 1,264,000 769 2,546,200 778 2,678,700
7.SpecialEducationExtendedYearforSpecialEducators 4,289,200 909 3,009,700 909 3,129,700
Subtotal: $337,005,800 109,076 $361,152,500 111,513 $383,939,200
8.Career&TechnicalEducationDistrictAddon $89,099,400 28,480 $94,297,300 28,821 $99,230,700
9.ClassSizeReduction $126,422,400 40,909 $135,449,700 41,416 $142,595,300
4
10.StudentsAtRiskofAcademicFailureAddonWPUs $0 0 $0 18,395 $63,333,200
Subtotal: $215,521,800 69,389 $229,747,000 70,237 $305,159,200
TotalExpenditures: $2,663,729,700 860,472 $2,849,024,700 868,548 $3,053,743,900
52
A C D E F G
THELINE
PartB:RelatedtoBasicSchoolProgram
A.StateRevenue
3
1.EducationFund $551,514,600 $564,284,900 $553,417,700
1
2.EducationFund,Onetime 3,420,000 2,556,100 1,625,600
3.USFRestrictedInterest&DividendsAccount 49,275,900 0 0
4.USFRestrictedTrustDistributionAccount 0 50,400,000 74,000,000
5.EFRestrictedCharterSchoolLevyAccount 0 22,100,000 23,839,600
B.BeginningNonlapsingBalances 14,044,400 23,366,400 23,366,400
C.TransferstoEducationFund,Onetime 0 0 0
2
D.ClosingNonlapsingBalances (23,366,400) (23,366,400) (23,366,400)
TotalRevenue: $594,888,500 $639,341,000 $652,882,900
ExpendituresbyProgram Amount Changes Amount Changes Amount
A.RelatedtoBasicPrograms
1.ToandFromSchoolPupilTransportation 79,265,300 83,730,200 4,376,700 88,106,900
2.PupilTransportationGrantsforUnsafeRoutes 62,300 500,000 0 500,000
3.GuaranteeTransportationLevy 500,000 500,000 5,900 505,900
4.FlexibleAllocationWPUDistribution 7,788,000 7,788,000 0 7,788,000
Subtotal: $87,615,600 $0 $92,518,200 $4,382,600 $96,900,800
B.SpecialPopulations
4
1.EnhancementforAtRiskStudents 26,639,400 28,034,600 (28,034,600) 0
2.YouthinCustody 21,661,200 22,716,200 1,187,400 23,903,600
3.AdultEducation 10,783,000 11,159,000 583,300 11,742,300
4.EnhancementforAcceleratedStudents 4,764,000 5,032,400 263,100 5,295,500
5.CentennialScholarshipProgram 178,200 250,000 0 250,000
6.ConcurrentEnrollment 10,209,200 10,784,300 563,700 11,348,000
7.TitleISchoolsinImprovementParaeducators 300,000 300,000 3,500 303,500
Subtotal: $74,535,000 $0 $78,276,500 ($25,433,600) $52,842,900
C.OtherPrograms
1.SchoolLANDTrustProgram 49,275,900 50,400,000 23,600,000 74,000,000
3
2.CharterSchoolLocalReplacement 143,059,500 170,579,200 7,946,800 178,526,000
3.CharterSchoolAdministrativeCosts 7,149,400 7,825,600 155,000 7,980,600
4.K3ReadingImprovementProgram 15,000,000 15,000,000 177,000 15,177,000
5.EducatorSalaryAdjustments 170,265,300 2,556,100 173,645,500 2,556,100 173,645,500
6.TeacherSalarySupplement 6,611,500 6,799,900 0 6,799,900
7.LibraryBooks&ElectronicResources 850,000 850,000 0 850,000
8.MatchingFundforSchoolNurses 953,400 1,002,000 0 1,002,000
9.CriticalLanguages&DualImmersion 2,987,900 3,556,000 0 3,556,000
10.YearRoundMath&Science(USTARCenters) 9,042,900 6,200,000 0 6,200,000
11.EarlyIntervention 7,500,000 7,500,000 88,500 7,588,500
12.BeverleyTaylorSorensonArtsLearningProgram 8,320,500 9,880,000 1,000,000 10,880,000
13.PublicEducationJobEnhancement 96,100 0 0 0
14.DigitalTeaching&LearningProgram 2,209,300 9,852,400 0 9,852,400
15.TeacherSupplies&Materials 0 5,000,000 0 5,000,000
16.CivicsEducationStateCapitolFieldTrips 0 150,000 0 150,000
17.EffectiveTeachersinHighpovertySchools 0 250,000 0 250,000
18.EarlyGraduationfromCompetencybasedEducation 0 55,700 0 55,700
Subtotal: $423,321,700 $2,556,100 $468,546,300 $35,523,400 $501,513,600
D.OnetimeFundingItems
1
1.TeacherSupplies&Materials 6,000,000 0 1,000,000 1,000,000
2.BeverleyTaylorSorensonArtsLearningProgram 1 750,000 0 625,600 625,600
3.CivicsEducationStateCapitolFieldTrips 95,700 0 0 0
4.SpecialEducationIntensiveServices 1,000,000 0 0 0
5.DigitalTeaching&LearningProgram 1,570,500 0 0 0
Subtotal: $9,416,200 $0 $0 $1,625,600 $1,625,600
TotalExpenditures: $594,888,500 $2,556,100 $639,341,000 $16,098,000 $652,882,900
53
A C D E F G
PartC:Voted&BoardLocalLevyPrograms
RevenueSources Amount Changes Amount Changes Amount
A.StateRevenue
1.EducationFund 123,835,800 $123,790,100 $143,540,600
1
2.EducationFund,Onetime (5,000,000) $10,200,000
3.EFRMinimumBasicGrowthAccount 56,250,000 $56,250,000 $56,250,000
B.LocalPropertyTaxRevenue
1.VotedLocalLevy 282,607,700 299,360,200 324,424,900
2.BoardLocalLevy 93,391,000 100,416,300 109,864,100
3.BoardLocalLevyReadingImprovementProgram 15,000,000 15,000,000 15,177,000
C.BeginningNonlapsingBalances 1,819,000 972,100 972,100
D.ClosingNonlapsingBalances (972,100) (972,100) (972,100)
TotalRevenue: $566,931,400 $0 $605,016,600 $0 $649,256,600
ExpendituresbyProgram Amount Changes Amount
5
GuaranteeRate(per0.0001TaxRateperWPU): $38.54 $40.57 $42.36
A.VotedandBoardLocalLevyPrograms
1.VotedLocalLevyProgram 424,002,300 $7,941,300 $453,216,300 $41,847,700 $487,122,700
2.BoardLocalLevyProgram 127,929,100 2,258,700 136,800,300 10,415,300 $144,956,900
6
3.RuralDistricGuarantee 0 0 2,000,000 2,000,000
4.BoardLocalLevyReadingImprovementProgram 15,000,000 15,000,000 177,000 15,177,000
TotalExpenditures: $566,931,400 $605,016,600 $54,440,000 $649,256,600
TotalMinimumSchoolProgramExpenditures: $3,825,549,600 $4,093,382,300 $4,355,883,400
Section3:SchoolBuildingPrograms(NotIncludedinMSPTotalsAbove)
RevenueSources Amount Amount Changes Amount

A.StateRevenue
1.EducationFund $14,499,700 $14,499,700 $14,499,700
2.EducationFund,Onetime $0 $0 $0
3.EFRMinimumBasicGrowthAccount $18,750,000 $18,750,000 $18,750,000
TotalRevenue: $33,249,700 $33,249,700 $33,249,700
ExpendituresbyProgram Amount Amount
A.CapitalOutlayPrograms
1.Foundation $27,610,900 $27,610,900 $27,610,900
2.EnrollmentGrowth $5,638,800 5,638,800 5,638,800
TotalExpenditures: $33,249,700 $33,249,700 $33,249,700
Governor'sOfficeofManagement&Budget DateModified: 12/9/2017
Notes:
1.UseofBSPnonlapsingbalances:$10.2MforRuralGuaranteeAddon;$2.5MforFY18EducatorSalaryAdjustment;$2.0MforUtahFutures;$1.0MforTeacherSupplies&
Materials;$0.6MforBeverleyTaylorSorensonArtsLearningProgram;and$0.2MforadministrativecostsofrecodificationofUtahCodeTitle53A.
2.Amountsmaynotreflecttheimpactofprioryearencumbrances.
3.FY17actualaccountsfor$20,187,693appropriatedtotheBasicSchoolProgram,buttransferredtoCharterLocalReplacementastheschooldistrict'sstatutorilyrequired
localcontribution.
4.Newaddonprogramconsistingof$33.7Minnewfundingandtransferof$29.5MfromtheEnhancementforAtRiskStudentsprogram($28.0MFY19basebudgetand
$1.5MFY19enrollmentgrowth).
5.FY18ratereflectstheuseof$10.2Minnonlapsingbalancestoprovideaonetimeincreaseintheguarantee;FY19ratereflectsa$12.8Mongoingincreaseabovestatutory
growth.
6.Newprogramtoprovideadditionalfundingtoruraldistrictsthatmakealocaltaxingeffort.
54
SocialServiceProgramsandSupport
ElevatingUtahnsthroughsoundsocialpolicyandoutstandingoperations
HIGHLIGHTS $950,000onetimefundingtransferfromthe
Department of Technology Services to the
Continue efforts to secure state Medicaid
Governors Office of Management and
flexibility that maximizes state control and
Budget to support technology infrastructure
federal cost sharing to provide benefits to
forcoordinatedcasemanagement
populationsinthecoveragegap
ImplementaDepartmentofHumanServices
Revamp traditional case management
pilot over the next three years to test
practices in Utahs social service agencies
replacing traditional servicebased contracts
and focus on case movement to provide
with outcomebased contracts. This is a
more timely and positive longterm
significant effort due to the extremely large
outcomesforthecustomer
dollaramountassociatedwiththecontracts.
$21.5 million ongoing for Medicaid
A thorough review of suicide prevention
consensusitems
programs to determine if programs are
$3.7 million ongoing for Accountable Care
comprehensive, reach those in need,
Organizationrateincreasesupto3.5percent,
simultaneously address multiple risk factors,
basedonestablishedperformancemeasures
and provide the necessary supports to
$5 million ongoing to address future state
effectivelyreversethetrend.
match needs in the Childrens Health

InsuranceProgram(CHIP)
$7.2 million ongoing to support youth in
OBJECTIVE
custody who are transitioning to Division of To elevate vulnerable populations to achieve
Services for People with Disabilities (DSPD) sustainable and positive outcomes, appropriate
benefits and additional needs for current workforce participation, and selfsufficiency
DSPDservicerecipients throughefficientoperationaldesignandeffective
$2.6 million ongoing for increased capacity servicedelivery.
at the Utah State Hospital to accelerate
forensiccompetencyrestorationactivities BACKGROUND
$4.9 million ongoing and $2.4 million one
Lack of progress in the passage of federal
timetoextendbenefitsandenhanceservices
healthcare legislation has posed challenges to
through various federal waivers providing
state budgets and policymakers across the
flexibility under Medicaid (family planning
country. While promising versions of Affordable
Medicaid services, Medicaid benefits for
Care Act (ACA) repealandreplace legislation
children with medically complex conditions,
have periodically surfaced, federal ACA
DSPD waiting list, communitybased
requirements remain in place while uncertainty
employment services for people with
persists in private insurance markets and the
disabilities,etc.)
ChildrensHealthInsuranceProgram.
$1.25 million ongoing for pathologists and

staffingattheMedicalExaminersOffice
Instarkcontrasttothenationallandscape,Utah
$10millionforOperationRioGrande
continues to lead the way by enacting and
55
pursuingcriticallyneededhealthcarepoliciesand in intergenerational poverty mitigation, and the
social service interventions. After lengthy development of publicprivate partnership
negotiationswithfederalprogramofficials,Utah solutions oriented toward wholeperson care. It
leadership secured approval of Medicaid waiver should be noted that good governance is a key
benefits from the Centers for Medicare and variableintheequationasUtahstopperforming
MedicaidServicesascontemplatedbyHouseBill economy and longstanding social fabric of self
437 of the Utah 2016 General Session and determination and voluntary assistance
extended Medicaid coverage to thousands of contributes to the states position as having
extremely lowincome Utahns for the coming someofthelowestpublicbenefitutilizationrates
statefiscalyear. inthecountry(seeFigure1).

Over the summer, state and local governments In calendar year 2016, Utahs poverty rate of
engaged with private partners and community 10.2 percent ranked 44th among all states.
stakeholders to launch Operation Rio Grande Likewise, the prevalence of public benefit
(ORG). ORG represents a collaborative, multi utilization across major programs such as
partyefforttorestorepublicsafety(PhaseI)and TemporaryAssistanceforNeedyFamilies(TANF),
provideintensivetreatmentandsupportservices Supplemental Nutrition Assistance Program
to those with mental health or substance use (SNAP) and Medicaid (including the Childrens
disorders (Phase II) in the downtown Salt Lake HealthInsuranceProgramorCHIP)ranked42,49,
CityRioGrandearea.ThroughORG,hundredsof and50,respectively.
new treatment beds will be available and over
$66 million in federal, state, local, and private FIGURE 1 2016 RATE OF POVERTY AND SOCIAL
SERVICE PROGRAM UTILIZATION IN UTAH
resources are dedicated to the initiative. ORG is
now entering Phase III, which emphasizes the Utah
dignity of work. In addition to current Rank
commitments and $4.9 million in funding %of %of Among
appropriated to the Department of Workforce Utahns U.S. AllStates
Services(DWS)duringthefirstspecialsessionof PovertyRate* 10.2% 14.0% 44
2017, the Governor recommends $10 million in TANF 0.29% 0.83% 42
new state funding to be used in FY 2018 and SNAP 7.1% 13.5% 49
2019forORGrelatedexpenditures. Medicaid&
CHIP** 10.0% 23.0% 50
Beyond DWS pivotal role in administering ORG, *U.S. Census Bureau American Community Survey 1Year
Estimates.U.S.valuemayvaryfromotherreportedpoverty
italsocontinuedthesuccessfultransitionofUtah
measures.**Medicaid&CHIPenrollmenttakenfromAugust
State Office of Rehabilitation Services (USOR). 2017 Centers for Medicare & Medicaid Services Monthly
Overthelastyear,morethan4,600USORclients Applications,Eligibility&EnrollmentData.
were removed from the waitlist and started
receivingservices. Rehabilitation Servicesisnow GUIDING PRINCIPLES
serving all clients with the classification While the individual and collective lifeelevated
Individuals with Most Significant Disabilities successesshouldbecelebrated,therearealways
andIndividualswithSignificantDisabilities. challenges and needs for improvement in the
realm of social service program design and
The state continues to make strides in other delivery,aswellasthebroaderunderlyingsocial
social service policy arenas to include the dynamics.Issueslike medicalinflation outpacing
Department of Health receiving accreditation available budget, the insufficient accessibility of
status from the Public Health Accreditation affordable housing, the waiting list for services
Board,anincreaseinawarenessandinvolvement
56
forpeoplewithdisabilities,thegrowingdemand design is critical to the success of any
for forensic competency restoration, the program, too often a solid understanding of
persistence of intergenerational poverty, and a how to efficiently deliver the program or
lack of work opportunities for people with serviceisoverlooked.Imaginethedeclinein
disabilitiesarejustafewexamplesofareasthat patient care if a hospital considered
warrant the attention of policymakers and individual patient needs less important than
taxpayers. achievingadministrativegoals.Suchapursuit
would naturally result in lowerthan
As specific efforts and policies are put forth to acceptable outcomes for patients, which
address these and other challenges, the wouldprovecounterproductiveforahospital
following guiding principles should be seeking to improve the health outcomes of
considered: itscustomers.
Public benefits and social program Tofulfilltheproperroleofstategovernment
interventions should lead to sustainable in administering social service programs and
positiveoutcomesforrecipients.Whilesome enforcing laws that protect the health and
federalentitlementprogramsarenottiedto safetyofvulnerablepopulations,itshouldbe
measurable outcomes, state social service explicitly recognized that our citizens and
programsshouldbeevaluatedonthemerits communities ultimately determine the
of cost and efficacy. Moreover, the state qualityoflifesharedbyall.Thefirstobjective
should develop, implement, and evaluate ofmostsocialprogramsshouldbetoidentify
programs with respect to the transitional or the conditions necessary to empower
permanentneedsofpopulationsserved.For individuals to address their own needs,
individuals with permanent and progressive bettertheircommunities,andworktowarda
disabilitieswhoareinneedoflongtermcare, path of sustainable personal and collective
services should be as accessible and reliable selfsufficiency.
as possible while focusing on outcomes that
improve client wellbeing and promote the AGENCY PILOT PROJECTS AND
most efficient delivery of care and benefits. HOLISTIC OPERATIONAL
For individuals in need of shortterm SOLUTIONS
transitional support, programs should
The Governors Office of Management and
facilitate the resolution of barriers to
Budget(GOMB)haspartneredwithanumberof
workforce participation, employment, and
state agencies to pilot operational solutions
other contributors to selfreliance and
designedtoremediatecentralinefficienciesthat
community benefit. In general, the most
are commonly found in social service
effective programs, in terms of quality
environments.Suchinefficienciesincludewaiting
outcomes and cost, give priority to
lists, backlogs and other delays, as well as
preventiveservicesthatkeepindividualswith
duplicative, excessive, prolonged, and
familyintheirownhomesandcommunities.
cumbersome or conflicting requirements for
To the extent possible, services should be
workers and those served. The piloted solutions
coordinated across funding, administrative,
both complement and supplement agency
and servicedelivery dimensions with the
performance by shifting the focus from siloed
focus on wholeperson care and meeting
case management to synchronized case
individual and family needs. Likewise, a
movement for improved quality, safety,
similarintegrationofeffortsshouldoccurto
timeliness,andaffordabilityofcaseresolution.
ensure that programs are not just properly

designed but are operating efficiently and
implemented with fidelity. While policy
57
Thus,theagencyfocusshiftsfromidentifyingand toconnectcostavoidanceactivitieswithdesired
initiating interventions to prioritizing and outcomessuchashealthierpatients/citizensand
synchronizing resources for worker and to bend the cost curve on Medicaid service
client/customer success; from managing static delivery. Opportunities for piloting alternative
caseload size to moving cases through key sharedsavings models between the state and
milestones for quick completion and enhanced ACOswillalsobeexplored.
quality outcomes; and from resourcedriving
capacity planning to demanddriven, client Department of Commerce Initiative to Reduce
centeredcapacitymanagement. OpioidDependencyinUtah.Liketherestofthe
nation, Utah is struggling with the unfortunate
PilotprojectshavebeenlaunchedintheDivision effects of prescription drug dependency and
ofChildandFamilyServicesattheDepartmentof abuse. With a goal of reducing the number of
Human Services and in the Family Employment deaths and overdoses due to opioids, the
Program at the Department of Workforce Department of Commerce is managing a project
Services. Over this past summer, a completed focused on reducing the daily MMEs (morphine
pilotprojectwiththeDivisionofAdultProbation milligram equivalents) dispensed by retail
and Parole at the Department of Corrections pharmacies (with a target to reduce the current
demonstrated promising results in terms of level of daily MME's from 78 to 50 or less).
decreasing risk of probation violations and Strategies to achieve this target include
recidivism. Over the next year, GOMB seeks to increased use of controlled substance data,
conclude these pilots, assemble and evaluate education, enforcement, and new regulatory
lessons learned, and incorporate pilot findings policies.
into scalable solutions and best practices for
improved and responsive social service delivery SuicidePreventionEfforts.Onaverage,2Utahns
acrossstategovernment. commit suicide every day and 12 others are
treatedeachdayasaresultofasuicideattempt.
Operational Improvement Pilot at the Utah Tragically, this trend increases every year. As a
State Hospital and Performance Measure resultofdatacollection,thereasonsbehindthis
Development with Accountable Care alarming statistic are becoming more apparent;
Organizations. As the need for forensic however, simply knowing the reasons behind
competency restoration services trends upward suicideisnotsufficient.TheGovernorisinitiating
and state Medicaid expenditures continue to a thorough review of suicide prevention
increase, the need to identify potential hidden programs currently administered through the
capacity and establish better operational executive branch to determine actual
outcomesisagiven. effectiveness. The review will determine if
programs are comprehensive, reach those in
In coordination with the Department of Human need, simultaneously address multiple risk
Services,theUtahStateHospital,andacoalition factors, and provide the necessary supports to
of Accountable Care Organizations (ACOs), effectivelyreversethetrend.
GOMB is also exploring opportunities to pilot
process improvement models that better define BUDGET RECOMMENDATIONS FOR
and monitor progress toward ongoing SELECT SOCIAL SERVICE ITEMS
operationaltargets.Withinthestatehospital,the
$13.6millioninonetimeFY2018fundingfor
focus will be to explore methods for freeing up
Medicaid consensus items (including buffer
bedspaceviaathreeprongedprogramarrayand
fundingof$9.4million)
the acceleration of positive patient outcomes
and the legal process. In Medicaid, the intent is
58
A corresponding $13.6 million onetime FY use of funds in the Medicaid Growth
2019reductioncomprisedofaonetimeshift Reduction and Budget Stabilization Account
inbufferfundingandvariousconsensusitem to cover state costs that may occur as a
onetimeoffsets result.
$21.5millioninongoingfundingforMedicaid $7.2 million in ongoing funding to support
consensus items and an additional $3.7 youth in custody who are transitioning to
millionfora3.5percentreimbursementrate DSPD benefits and additional needs for
increase for ACOs as they work to develop currentDSPDrecipients
performance metrics. Medical inflation in $2.6millionforadditionalbedsandcapacity
Utah is estimated to be 3.4 percent in FY at the Utah State Hospital to be used for
2019.Asaprimarybudgetdriverandoneof forensiccompetencyrestorationactivities
the largest sources of state expenditures, $2.36millioninonetimefundingfora3year
budget analysts and program experts from pilotoffamilyplanningMedicaidservices
GOMB,theLegislativeFiscalAnalystsOffice, $2.25 million in ongoing funding to make
andtheDepartmentofHealthcollaborateto Medicaid services for children with complex
produce a semiannual technical forecast of conditionspermanent
Medicaid budget needs through the $1 million to bring 148 individuals off the
Medicaid consensus process each February. DSPDwaitinglist
To the extent the technical Medicaid Atransferof$950,000fromtheDepartment
consensus forecast differs from the of Technology Services to GOMB to support
Governors budget recommendations, the more effective and coordinated case
Governor recommends reevaluating such management across all state government
differences and providing funding as socialserviceagencies
appropriate following the updated Medicaid
consensusestimates.
$5 million in ongoing funding to address
futureCHIPstatematchneeds.Ifthefederal
program is not reauthorized in the coming
months, the Governor recommends that
state statute be amended to allow for the
59
60
Corrections,PublicSafety,andRecidivism
Acontinuedfocusonreducingrecidivismandimprovingpublicsafety
HIGHLIGHTS (JRI), as enacted by House Bill 348 of the 2015

LegislativeSession.
$1.7 million for jail reimbursement to

maintain86percentofthestatutoryrate
Utahs prison population continues to decline
$1.4 million for the State Crime Lab and
sinceJRIwentintoeffect.Theprisonpopulation
managementofseizedevidence
meets JRI projections, which are significantly
$1millionforpeaceofficertraining
below previous projections absent any reform
$1.4millionforpublicsafetyequipment
(seeFigure1).
$730,000 to strengthen the statewide

intelligence gathering of violent crimes and
TheCommissiononCriminalandJuvenileJustice
dispatchservicesinruralUtah
(CCJJ) reports annually on JRI. Recent report
$463,400forinmatetreatmentincountyjails
findingsindicatethat:
$1millionforJusticeReinvestmentInitiative
theprisonpopulationmeetsJRIprojections
(JRI)countyincentivegrants
althoughcompositionchangeshaveoccurred,
the Department of Public Safety has set an
growth rates are similar in the overall
ambitioustargettoimprovepublicsafetyby
supervisedpopulationpreandpostreform
25percentbytheyear2021
there has been a departure between
sentencing guidelines and actual sentencing

BACKGROUND
decisions
A strong criminal justice system ensures the the prison length of stay for nonviolent
protection of Utah citizens, helps victims feel offendershasdecreased
justice has been served, and allows released thepercentofdrugpossessiononlyoffenses
offenders to become contributing members of filedasafelonycontinuestodecrease
societyratherthanreturntoprison.
The Governors budget recommends $1 million
UTAHS PRISON POPULATION AND for Justice Reinvestment Initiative county
JUSTICE REINVESTMENT incentivegrants.
INITIATIVE
FIGURE 1. PRISON POPULATION: ACTUAL VS.
Utah currently incarcerates approximately 6,300 PROJECTED
state inmates. Between 2014 and 2015, the
averagedailyincarceratedpopulation decreased
by 5 percent. Over the past 30 years, an annual
decline in the prison population occurred only
twice. Though no causal relationship has been
conclusively determined, the unusually large
decrease in the prison population was likely the
result of the early planning and implementation
stages of Utahs Justice Reinvestment Initiative
61
PRISON RELOCATION maximizingagenttimetomanagecases
obtaining buyin from stakeholders such as
In recent years, the northwest quadrant of Salt
district judges, the county attorney, county
Lake City was selected as the site of the new
sheriff, jail commander, defense attorneys
state prison. In August 2017, the Governor,
andserviceproviders
lawmakers, and local officials broke ground and

site preparation is currently underway. The new
Fifty eight percent of offenders participated in
prison will be designed to ensure public safety
thepilot.Theremainingoffenderswentfugitive,
and minimize recidivism for those returning to
returned immediately to jail, died, or refused to
thecommunity.
participate. The average risk reduction of all
participantswas19percent,ascomparedtoa15
JAIL REIMBURSEMENT
percent nonpilot risk reduction, which is
The Governor proposes $1.7 million for jail statistically significant and correlates to a 33
reimbursement to maintain payments at 86 percentreductioninrecidivism.
percent of the statutory target for jail
reimbursementtocountyjailsinUtah. A key lesson learned and that requires further
study is how to increase offender buyin and
SUPERVISING OFFENDERS IN THE participation. The Department of Corrections is
COMMUNITY determining how best to implement the lessons
Over70percentoftheoffendersinDepartment learned from the pilot into statewide AP&P
of Corrections' jurisdiction are supervised in the operations.
community, either through probation or parole.
Currently, Adult Probation and Parole (AP&P) JUVENILE JUSTICE REFORM
supervisesapproximately18,500offenders. TheCommissiononCriminalandJuvenileJustice
(CCJJ) is responsible for oversight of the
InJuly2017,AP&Pcompletedaprogrampilotto comprehensive juvenile justice reform
better determine how best to help offenders amendmentsenactedduringthe2017Legislative
successfully complete probation. The Logan General Session. Reform efforts are anticipated
AP&Poffice conducteda Pathto Successpilot toyieldanestimated$58millioninavertedcosts
and tested a series of programmatic changes overfiveyears,withsavingstobereinvestedina
aimed at providing better outcomes for continuum of evidencedbased options. This
offenders in order to reduce recidivism. The effort supports the effective and efficient
changes implemented as part of the pilot governmentfocusoftheGovernorsLifeElevated
include: 2020initiativebybendingthecostcurveforthe
completing the offender case action and deliveryofjuvenilejusticeservices(JJS).Services
treatment plan, clinical assessment, and willbeprovidedatalowercostandjuvenileswill
orientationsessionwithinfivedaysofjailor be held more accountable. As a result, many
prisonrelease young people receiving JJS services will be
delivering80to100hoursofevidencebased diverted from further contact with the juvenile
treatment dosage to an offender within the justiceandcriminaljusticesystems.
first90to120daysofreleasetosignificantly
reducecriminogenicriskfactors PUBLIC SAFETY
replacing offender idle time with positive
The Governors budget recommends $1 million
treatment in order to disrupt negative
tosupportanincreaseddemandforpeaceofficer
behavior
training and to offset the decline in revenue
maximizingoffenderparticipationandbuyin
collections from surcharges deposited into the
ofthecaseactionplan
62
Public Safety restricted account. In addition, the operations. Establishing a career ladder for
Governors budget recommends $1.4 million for officers will provide funding for salary increases
the State Crime Lab and management of seized and a career path to attract and retain talented
evidence as well as $730,000 to strengthen individuals committed to achieving the goal of
statewide violent crime intelligence gathering ensuringsafeUtahcommunities.
anddispatchservicesinruralUtah.
UDC divisions are also collaborating to expand
InresponsetotheGovernorsgoaltocontinually and implement innovative evidencebased
improve agency operations, the Department of programsintheareasofeducation,skillsandjob
PublicSafetyhasestablishedanambitioustarget trainingby:
toimprovetheagencysabilitytoprovideasafe expanding career pathways for offenders
and secure environment for the people of Utah through Utah Correctional Industries and
by at least 25 percent by June 2021. Areas of creatingnewonandoffsiteworkprograms
focus include the implementation of creating a transitional housing unit where
intelligenceled policing by synchronizing the offenders can focus on community reentry
effortsofthecrimelab,bureauofinvestigations, plans
information and analysis center, and other law intensifying vocational and postsecondary
enforcement agencies; removing impaired programs to increase offender skills and
driversfromUtahsroadways;buildingcomplete employabilityafterrelease
and accurate criminal history information by allowing offenders to use technology while
requiring that misdemeanor citations include incarcerated by using electronic tablets as a
fingerprints; and designing and implementing a meanstoprovideeducation,treatment,and
digitalandtraditionalmediacampaignproviding toexplorefutureemploymentopportunities
safetyrelatedmessagestothegeneralpublic.
In addition, UDC will continue to bolster efforts
CORRECTIONS to address individual medical, mental health,
substance abuse, and sex offender treatment
Ensuringsafe,securecommunitiesisatthecore
needs to ensure offenders are better prepared
of the Utah Department of Corrections (UDC)
whenreintroducedintoUtahcommunities.
initiativestostrengthenthecorrectionalsystem,

reduce recidivism, and provide offenders with
Specificeffortsintheseareasinclude:
opportunities to make lasting, positive life
improving sex offender treatment programs
changes.Thedepartmentsfocusistoensurethe
through increased dosage based upon
safeoperationofthestatescorrectionalfacilities,
offenderlevelofcare
securemanagementoftheparoleandprobation
increasing the fidelity of offender risk/need
population,andeffectivetreatmentofoffenders
assessmentstoprovideaccuratedataonrisk
based on individual risk and need so they are
factorsandtreatmentneeds
betterpreparedtorejointheircommunitiesand
providing timely access to medically
never need to return to the criminal justice
necessarymedical,dental,andmentalhealth
system.
carethroughwellqualifiedclinicalstaff
implementing a new evidencebased

Over the next year, all UDC divisions will work
substance abuse treatment program that
collaboratively to ensure offenders are
meetsindustrystandards
supervised by expertlytrained and adequately
compensated staff at all levels of agency
63
64
AirQuality
Utahhasmadesignificantstridestoaddressairqualitybutmoreremainstobeaccomplished
HIGHLIGHTS population of Utah increased by over 600,000

an increase of 26 percent. During the same
The Governor and the Utah Division of Air
period, total statewide emissions declined from
Qualityhavesetanambitiousgoaltoreduce
2.5 million tons to just over 1.8 million tonsa
annualstatewidepercapitaemissionsby25
30percenttotalreductionanda46percent per
percentby2026
capitareduction.
TheStateofUtahisleadingbyexampleand

istakingactiontoreduceemissionsthrough
Even with these improvements, the more
managementofthestatesfleetvehiclesand
stringentairqualitystandardsestablishedbythe
buildings
Environmental Protection Agency (EPA) push
$500,000 in ongoing funding for air quality
Utah out of compliance several days each year.
research
Stronger standards, coupled with expanding
$350,000inongoingfundingforairquality
media attention, have increased awareness and
personnelinareaswithheavybacklogsand
concernamongUtahcitizens.
unmetneeds

$35.2 million from the Volkswagen
Utah has taken the following significant actions
settlementoverthenext10yearstosupport
toimproveairquality:
solutionsthatprovidethegreatestairquality
requiring industrial sources to install
improvements
stringentnewcontroltechnology
$7.9 million allocated in 2017 from
passingnearly30newrulesaddressinglarge
additional Volkswagen settlement funds will
categoriesofemissionsources
beusedtoreplace115dieselschoolbuses
launchingpubliceducationcampaigns
$2.3millioninfederalcleandieselgrantsfor
implementingtravelreductionplans
replacementofolderdieselengines
obtaining grants to help build clean fuel

infrastructure
OBJECTIVE

To find practical, effective, and fiscally prudent Inaddition,theGovernorsCleanAirActionTeam
solutionstoimproveUtahsairqualityinsupport has identified other meaningful strategies to
of: clean Utahs air, such as reducing woodburning
healthyUtahns stoveemissions.
an attractive atmosphere for business and
visitors While great strides have been made, more
anunparalleledqualityoflife remains to be accomplished. Utahs unique
topography, climate, and air chemistry
BACKGROUND exacerbate air pollution during certain times of
Overall, Utahs air quality continues a trend of the year. Due to these distinct Utah conditions,
significant improvement even with a growing national research is not always applicable. A
population and economy. Between 2002 and greater understanding of the causes and effects
2014 (the most recent data available), the of Utahs air pollution is needed to further
65
determine the most effective and costefficient over the next 9 years. To accomplish this goal,
mechanismstoimprovethestatesairquality. DAQ plans to implement a variety of programs
and policies to address the current rate of
humangenerated air pollutants and minimize
UTAHS WINTER AIR POLLUTION theadditionalimpactsassociatedwithagrowing
population. This initiative will be DAQs major
focusforyearstocome.
An estimated 85% of Utahs winter air

pollution comes from sources such as
personal vehicles, homes, consumer TheStateofUtahisworkingtoleadbyexample
products, and small businesses. in the effort to improve Utahs air quality
through the management of the states fleet
vehicles and buildings. Older fleet vehicles are
being replaced with those that have cleaner
burning engines, resulting in an 11 percent
average decrease in emissions. New telematics
We must all reduce emissions arebeingtestedon25percentofthefleet,with
the intent to reduce emissions by decreasing
Air polluon is not just a unnecessary idling. Older buildings not meeting
problem for big industries and
efficiency standards are being retrofitted with
large companies.
moreuptodateequipmenttoreduceemissions
andincreaseefficiency.Inaddition,allnewstate
buildings are designed, constructed, and
managedtomeetenergyefficiencystandards.

Over the next year and where possible, the

With this in mind, the Governors budget
Governoralsoplanstoidentifyopportunitiesfor
includes$500,000forairqualityresearch.ForFY
2019, specific research topics will include
rural Utah through the implementation of
examiningthefulleffectofwoodburningonno
teleworking arrangements that benefit both the
burn days; evaluating ammonia emissions from
stateandtheemployee.Oneoftheanticipated
diesel vehicles under Utahspecific conditions to
positive outcomes of the effort is to reduce the
understand the true impact during inversions;
numberofvehiclesonUtahshighways.
and continuing to partner with the University of

Utah to develop accurate air quality models for
Utahs unique conditions. The results of current
TIER 3 VEHICLE AND FUEL
and future research will help the state develop
STANDARDS
more effective and targeted regulations to In his 2014 State of the State address, the
improveairquality. Governorendorsedacceleratingthetransitionto
Tier 3 standards as his top recommendation to
AspartoftheSUCCESS+initiative,theGovernor improve Utahs air quality. Tier 3 refers to an
and Utah Division of Air Quality (DAQ) have set integrated system of national vehicle and fuel
anambitiousgoaltoreducethestatewideannual standards established by the EPA in 2014. It
total of anthropogenic emissions (those replaces the previous Tier 2 standards and
originatedinhumanactivity)by100,000tonsby requires much cleaner vehicles be phased in
2026. With Utah's population projected to frommodelyears2017to2025.Tier3standards
increase20percentduringthattimeperiod,this also require the reduction of sulfur content in
goalrepresentsa25percentpercapitareduction gasoline from 30 to 10 parts per million (ppm).
66
The EPA has stated that no state would benefit million from the settlement for projects that
morefromTier3standardsthanUtah. replace or repower eligible diesel vehicles with
enginesthatproducefeweremissions.

A holistic approach should be taken with these
settlement funds to achieve the most enduring
and effective reduction of emissions for every
settlement dollar invested. The Department of
Environmental Quality (DEQ) is currently
developing an environmental mitigation plan,
with the goal of reducing nitrogen oxide
emissionsequaltoorgreaterthantheamountof
excess emissions produced by Volkswagen
vehicles on Utah roads, and anticipates
mitigationplanselectionin2018.

In 2017, the Governor allocated $7.9 million to
replace diesel school buses from additional
Volkswagenviolationsettlementfundsmitigating
unfair trade, deceptive acts, and violation of
consumer protection laws. Using these funds,
115dieselschoolbuseswillbereplaced.

Additionally, Utah recently received $2.3 million

Tier3fuelsallowbothexistingandnewvehicles
infederalcleandieselgrantstoassistinreplacing
to produce fewer emissions per mile driven
older diesel engines. The grants will reduce
because vehicle emission controls are more
emissions by removing inefficient, polluting
effective when the gasoline used has a lower
dieselenginesfromUtahsroadways.
sulfur content.Achieving cleanerairinUtahwill

require the full implementation of such
TheGovernorsbudgetalsoincludes$350,700to
standards.
hire and support air quality personnel in the
following areas with heavy backlogs and unmet

To this end, the Governor continues to
needs:
encourage local gasoline refineries to produce
an air quality planning consultant to help
lowsulfur Tier 3 gasoline. The Governor
ensure the requirements of Utahs State
applauds the Chevron and Andeavor (formerly
Implementation Plan (which demonstrates
Tesoro) refineries which are currently preparing
how the state will achieve air quality
to install equipment that provides the ability to
standards) are met for all criteria air
producecleanerfuelsforUtahby2020.
pollutants;
astacktestingauditortojointhebacklogged
REDUCING VEHICLE EMISSIONS
stack testing team that measures emissions
THROUGH MITIGATION PROJECTS
fromindustrialairpollutionsources;and
Under the terms of a national settlement, an experienced environmental scientist with
Volkswagenisrequiredtomitigatetheairquality a background in atmospheric science to
impacts from diesel vehicles that failed to identifypollutionsourcesnotcurrentlybeing
achieve emissions standards. Over the next 10 inventoried.
years, Utah is scheduled to receive nearly $35.2
67
GUIDING PRINCIPLES alone are insufficient in tackling the states
air quality challenges. Thoughtful, targeted
All emissions pollution sources, from large
regulation and enforcement is an important
industry to individual residents, must be
componentofUtahsairqualitystrategy.
reduced. An estimated 85 percent of Utahs
State funding directed to improved air
winter air pollution comes from mobile and
quality must be prioritized based on
local area sources (such as vehicles, homes,
approachesthathavethegreatestreturnper
consumerproducts,andsmallbusinesses).
dollarinvested.
Most of Utahs air quality problems result

from a myriad of decisions made in our
individuallives.Airpollutiondoesnotrespect
PROPOSED SOLUTIONS
jurisdictional boundaries and spreads Problems cannot be solved if not fully
throughout the state. In short, everyone understood. Finding the most effective
contributes to, and is affected by, the solutions to Utahs air quality challenges
problem and must contribute to the requires an understanding of Utahs unique
solutions. As individual private market climate, topography, and air chemistry, as
decisionscannegativelyimpactothers,state wellasfuturecapacity.
government can and must play a significant To ensure everyone plays by the same rules
role. However, government cannot and the public atlarge does not suffer from
unilaterally solve the problemeveryone thebadactionsofafew,adequatepersonnel
sharesresponsibility. are needed to inform, educate and, when
Air,likefoodandwater,isvitalinsustaining necessary,enforceagreeduponsolutions.
human life. Contaminants directly impact Rapidly growing metropolitan areas like
overall health. Solutions must recognize the Utahsurbancentersfacegrowthchallenges
critical nature of this shared common and land development impacts. A growing
resourceandpublichealthpriority. population brings more transportation
Utahs unique challenges require unique challenges. To further improve air quality,
solutions that complement Utahs values, future land use planning and marketdriven
lifestyle, and economy. While air quality development that is less automobile
decisions should be informed by broad dependent will be increasingly important.
research,suchdecisionsshouldultimatelybe Efforts that promote telecommuting and
tailormade for Utah and not simply encourage land zoning practices that
comprise the onesizefitsmost solutions promote more transit use and walkable
borrowedfromorimposedbyothers. communitieswillslowthegrowthofcarson
Education will play a key role in arming theroadandcreatebetterairquality.
citizens with the knowledge necessary to be In todays world of rapidly improving
part of the solution. Utahns generally want technologies, many solutions already exist
todotherightthing.Thestatewillcontinue and simply need to be adopted. Improved
toemphasize,educate,andenableresidents technology means improved air quality.
tomakesmartchoicesaboutairqualitysuch Replacingoldfleetvehicles,buses,lawncare
as carpooling, using public transit, walking equipment, and other sources of pollution
and biking; not idling when driving; not withmorefuelefficient,cleanertechnologies
burningwoodinfireplacesduringinversions; bringsimmediateimprovement.Accelerating
andreplacingoldlawncareequipment. the adoption of Tier 3 products (cars and
While every effort should be made to enlist gasoline) contributes significantly to the
Utahs volunteer spirit, voluntary efforts solution.
68
Water
Continuedfocusonmoreefficientwateruse;highlightingtheneedforwateruserstopaytruewatercosts
HIGHLIGHTS accurate and reliable data is available to

policymakers to make informed financial
Executive Water Finance Board established
decisions
bytheGovernorin2017toconductfinancial
and economic reviews of statefunded water
projects
BACKGROUND
State Water Strategy recommendations Asoneofthedrieststatesinthecountry,wateris
providedtoGovernorin2017includeafocus alwaysatopicofconcerninUtah.Whilethestate
on efficient use of water, accurate water has successfully thrived despite its arid
data, and users paying for water according environment, the challenges of persistent
towateruse population growth, an uncertain climate, and
$1milliontomeasureagriculturalwateruse, aging water infrastructure require creativity,
with a recommendation that the USU determination, and leadership. Utahns have
ExtensionWaterAdvisoryBoardallocatepart consistentlyproventheyareuptothetask.
ofitswaterfundstostudyagriculturalwater
useandoptimizationstrategies The increased recent focus on water has yielded
$8.4millionfordamsafetyupgrades positiveresults.Improvedprocessesandstrategic
$500,000 to remediate phragmites (a water investments have accelerated the slow pace of
consuminginvasivespecies) water rights adjudication. The challenge to
$305,000foralgalbloomcosts improvewaterdatahas been metheadon,with
efforts underway to improve insight into current
OBJECTIVE water use. Additionally, individuals, businesses,
researchers, communities, and agricultural
To develop water funding policies and
producers across the state have contributed to
mechanismsthatensure:
conservation efforts that move Utah toward a
the State of Utah maintains afinancialrole
more sustainable water future. However, much
thatisfiscallyprudentandsustainable
work still remains in order to optimize Utahs
asufficient,safe,andreliablesupplyofwater
limitedwatersupply.
meetsappropriateusagelevelsforagrowing

population and balances residential,
WATER USE
commercial, recreation, agricultural, and
environmentaluses Figure1showsthedistributionofdiverted water
Utahslimited water resources are used in Utah.Diverted water is generally categorized
wisely as agricultural water (estimated at 82
an appropriate alignment existsbetween the percent)and municipal and industrial (M&I)
costsofwaterandtheuseofwater water (estimated at 18 percent).Since water
thewater quality of our lakes, rivers, and diversionnumbersareestimated,theGovernors
streamsisprotected budgetrecommends$1millioninnewfundingto
bettermeasureandunderstandactualwateruse,
particularlyforagriculture.
69

FIGURE 1. ESTIMATED UTAH WATER DIVERSIONS IN ACRE FEET PER YEAR
Of theestimated 18 percentstatewide total relatively minor increases in true agricultural

diverted M&I water use, 3.5 percentis efficiency(accountingforreturnflow)couldhave
residentialindoor use; 6.5 percentis residential asizeableimpactonthestatesoverallwateruse.
outdoor use; 2.5 percent is commercial and
industrial use;1.5 percent is institutional use CHOICES ABOUT WATER USE
(suchasgovernmentsandschools);and4percent
Assumingcurrentwaterusagelevelsremainasis
is public noncommunity use,which includes
or only minor additional conservation occurs,
specificindustrialuses.
thedemandforM&Iwaterisprojectedtoexceed
supply over the coming decades as Utahs

Lookingtothefuture,policymakersshouldtakea
population continues to grow. Utahnshave an
comprehensive view of water and seek to
importantchoicetomakeaboutwateruse.Ifour
optimize water use across the board. The
populationcontinuestogrowatthecurrentrate,
emphasis for more efficient M&I water use is
the need for additionalwatersupply at some
rightly placed and, in particular, should continue
future point in time is a given; however, the
forexcessiveoutdoorwateruse.
timing of water system development can vary
dramatically based on water usage. More

As Utahs single largest water user, it is also
judicious use of existing watercoulddelay costly
important to review and better understand
major development projects, while the failure to
agricultural water use. Recognizing that any
conserve water will more quickly lead to
policychangeshouldprotectexistingwaterrights
and include proper economic incentives,
70
acceleratedbuildingschedulesandtheassociated continuetoadduponexistingeffortstoaugment
costincreases. waterdatainthestate.

No one wants increased water rates; however, Additionally, the Governor recommends that the
waterrateswillneedtoincreaseovertimetopay USUExtensionWaterAdvisoryBoarddesignatea
notonlyforcostlynewdevelopmentprojects,but portion of its $950,000 appropriation to study
to repair and replace aging infrastructure. While agriculturalwateruseandoptimizationstrategies.
localwateruserfeesareunpopular,soarestate The Governor further recommends developing
tax increases. Depending on the level of cost processes to determine the highestvalue and
incurred by the state, Utahns may soon face a most urgent research questions and to prioritize
real choice between state tax increases or futureresearchfundingaccordingly.
increases in local water rates to pay for water
costs. Moving from a weak and muddled water For example, significant improvement for water
pricesignaltoastrongandclearpricesignalwill planning and management could be provided
encouragemoreefficientwaterusage. through basinlevel advisory councils. These
stakeholderled councils may balance the unique
STATE WATER STRATEGY needsofeachbasinwhileoptimizingwaterusage.
RECOMMENDATIONS Determining an administrative framework to
enablethesebasinlevelcouncilscouldbeanear
Recognizing that an increasingly prudent
termpriority.
stewardship of our limited water resources is

necessary to meet the challenges of a growing
GiventhatmuchoftheM&Iwatersupplygoesto
population, in 2013 the Governor convened a
outdoor watering and that Utahs population
team of stakeholders with diverse and extensive
continues to grow, another nearterm priority
backgrounds across the water spectrum to form
shouldbetoensurethatfuturelanddevelopment
the State Water Strategy Advisory Team. After
is waterefficient by design. Communities should
years of discussion, public meetings, written
integrate water and land use planning to ensure
comments, and online surveys, the team
that community plans and ordinances consider
producedandsubmittedastatewaterstrategyin
and implement watersaving strategies. State
July 2017. The Recommended State Water
financingshouldbecontingentontheseefforts.
Strategy document provides helpful insights as

Utahns navigate the unique challenges of a
growingpopulationinanarid,waterconstrained
FUNDING UTAHS WATER FUTURE
region. Many of the recommendations are being Considering current percapita usage, projected
addressed or have been prioritized for population growth, the age and condition of
implementationinthenearfuture. existing infrastructure, and a decrease in federal
funding, numerous individuals and entities have
Amongthemanystrategiesidentified,optimizing proposedideasonwaystomaintain,replace,and
theuseofexistingdevelopedwaterandtheneed develop new water infrastructure. This dialogue
for improved water data emerge as clear near provides welcome perspectives and much
termprioritiesthatwillinformdecisionmakersin needed information. Ultimately, however,
charting the states course for longterm water expanding the states role in water financing
use and fiscal sustainability. The Governor including any use of state funds or bonding
recommends $1 million be invested to capacitymust thoroughly be considered with
strategically deploy stream gauges and water respect to the impact to taxpayers and should
meters to increase understanding of agricultural only be considered after all other alternatives
water use and optimization efforts as we havebeenexhausted.
71
water projects that may rely on state financing,
Beer water data and the Board will conduct financial and economic
data reporng reviewsandanalysis.

Prior to undertaking a major expansion of the
states role in water project financing, the
Governor recommends that the following
New and meaningful minimumconditionsbemet:
water conservaon Betterwaterdataanddatareportingsuchas
targets universal metering of water and a minimum
of 3 years of water usage data reporting
undernewstatewaterreportingstandards.
Newandmeaningfulwaterefficiency targets
Independent validaon that strongly emphasize the optimization of
existing developed water to include
reductionsingovernmentwateruse.
Independent validation, including a
comprehensive price elasticity and
repaymentfeasibilitystudy,verifiedaccurate
Local funding eort and reporting of water use data,and an
increased emphasis on independentvalidationofprojectcosts.
user fees Astronglocalfundingeffortandanincreased
emphasisonuserfeesincludingasizeableup
front local contribution to any projectfor
Transparency and local example, the federal government required a
voter engagement 35 percentlocal contribution on
recentprojects. Water user fees should
BALLOT
reflect a robust effort that demonstrates a
BOX
strong commitment as compared to the
waterratesofotherstatetaxpayersthatalso
Appropriate nancing pay to finance the projects; local funding to
and repayment terms coverallneededlocalrepairandreplacement
costs; and movement away from property
s t
rm n
Te yme
taxes in favor of water user fees in order to

Pa
Pr %
t
ec
of 100
oj
enhanceeconomicconservationincentives.
Transparency and local voter engagement
through public processes, including public

To ensure the State of Utah maintains a fiscally
hearingstodiscloseprojectedwateruserfee
prudentandsustainablewaterfinancepolicy,the
increasesandalocalelectionwhereresidents
Governor created the Executive Water Finance
vote to approve the project and full state
Board in the summer of 2017. The Board brings
repayment based on any necessary water
together individuals with a wealth of experience
userfeeincreases.
and expertise in water, planning, budgeting,
Appropriate financing and repayment terms,
economics,andfinancetoprovidecriticalinsights
including allstate interestcosts capitalized
regarding the financial and economic aspects of
into the loan; an interest rate set in statute
both the demand and supply of water. As the
that fully reflects the states borrowing and
stategrappleswithvariousfundingproposalsfor
opportunity costs; a fixed repay
72
mentperiodfor 100 percent of theproject strategize on how best to use and conserve
costs;paymentsthatbeginconcurrentlywith water. Better information, including more
the states bond repayment; and repayment thorough water metering and market price
directlytothestateGeneralFundratherthan signals (such as user fees) will allow market
a revolving loan fund so the legislature has forcestoinfluencetheefficientuseofwater.
the ability to prioritize each water project Local governments should implement plans
againstothercompetingstatepriorities. tolocallyfundtherepairandreplacementof
local infrastructure, in particular when
Recognizing that projects are not currently receiving state taxpayer financing. TheState
funded and that current statutes will require of Utah should adjust its laws and policies
changes,ongoingdiscussionswillbenecessaryto toremoveanyobstacles,realorperceived,to
ensureappropriatetermsareinplacepriortothe localentitiessettingasidefundstorepairand
state allocating additional funds for such replaceexistingwaterinfrastructure.
purposes. Funding responsibility should increasingly
shift to end users. Any state involvement
GUIDING PRINCIPLES should be prudent and fiscally sustainable.
Further earmarks should not be used. When
Utahshouldtakeamorecomprehensiveview
state funds are provided to assist water
ofwatermanagement.Policiesandstrategies
development, local recipients should meet
mustbedevelopedorbetterimplementedto
basic criteria such as planning, maintenance,
encourageamoreefficientuseofwaterbyall
appropriate rate structuring, and
water users (residential, commercial,
conservation to advance the states overall
agricultural, government, and nonprofit
water goals. The stateshouldcontinue to
entities).Strategiesshouldincludestrongand
support strategies and education that
clearpricesignals,enhancedpubliceducation,
encouragethejudicioususeofwater.
increaseduseofexistingandemergingwater
The state water engineer must have the
saving technologies, increased wastewater
administrative and legal tools sufficient to
reuse, increased waterwise landscaping and
efficientlyenforcewaterrightslaw.Thestate
the elimination of conservation barriers in
should continue to improve its water right
local and state laws. As growing demands
adjudication process to clarify which water
stress existing supply and maximize the
rightsarevalidandbringmorecertaintyand
efficient use of existing water infrastructure
speedtowatertransactions.
and supplies, solutions should recognize the
Thestateshouldencouragetheincreaseduse
increasingvalueoflimitedwaterresources.
of private sector and federal financing
The state needs better data and greater
sources for water development projects
transparency into water usage and funding
wherethosesourcesareavailable.
sources tohelp policymakers and consumers
73
74
RuralUtah
FocusingonmarketsolutionstoruralUtahschallenges;educationandinfrastructurearekey
HIGHLIGHTS BACKGROUND
Create 25,000 jobs in rural Utah by Utah as a whole has experienced a strong
2020 economic recovery since the Great Recession.
Identify efficiency opportunities However,asshowninFigure1,thatrecoveryis
through relocation and teleworking not universal throughout the state. Segments
arrangements so more of the state of rural Utah still face many challenges with
workforcecanbelocatedinruralUtah elevatedunemploymentratesandemployment
$2 million targeted specifically to the wellbelowpreGreatRecessionlevels.
states most rural school districts to
help meet their unique educational MOVING FORWARD
needs In light of this challenge, the Governor has
$1.5millionintourismmarketingfunds calledforanincreasedfocusonruralUtahwith
focused on tourism development in a goal of creating 25,000 jobs off the Wasatch
previously underserved rural areas of Front by 2020. Given the declines, lack of
thestate growth, or boom and bust cycles in many
$5 million to Utahs Office of Outdoor traditional rural industries (such as agriculture
Recreation for development projects and mineral extraction), the challenge is not
that construct or improve trails, parks, onlyhowtocreatethe25,000jobsby2020,but
and other recreational infrastructure in how to maintain longterm economic growth
ruralareasofthestate andsustainability.

FIGURE 1. EMPLOYMENT GROWTH RATES BY TheGovernorsbudgetproposesthatruralUtah
COUNTY, 2008 TO 2016
participate in the states megasite economic
development program through smaller
developmentready sites and that existing
economic development incentives be made
more conducive for use in rural Utah. Some
previous efforts incentivizing businesses to
locateinruralUtahhaveoccurredprimarilydue
to government grants, tax credits, and
incentives, rather than to underlying economic
factors driving a business to locate there. As a
result, the state is strewn with abandoned
buildings created when government incentives
nolongerexist.Whileashorttermsubsidymay
occasionally be appropriate, relying on
subsidies to create a viable economy is not a
feasiblelongtermsolution.
75
Core services such as education and public Fortunately, despite what some may think,
infrastructure investment constitute key state mostruralareasofthestatearewellconnected
rolesinsupportingtheneedsofruralUtah.One electronically, thereby making different forms
essentialcomponentofeconomicdevelopment of telecommuting a viable employment option
is to develop a highskill, educated workforce, for connecting businesses that need workers
therebyattractingemployerslookingforquality withthemanytalentedindividualsinruralUtah.
employees and cultivating the talents of local Urbanbased businesses could also consider
entrepreneurs. For this reason, in addition to allowingexistingemployeestorelocatetorural
thegeneralfundingruralschooldistrictsreceive Utahandtelecommute,freeingupurbanoffice
along with all other school districts, the space for those who prefer to remain in more
Governors budget recommends an additional populatedareas.
$2 million targeted specifically to the states
most rural school districts to help meet their Over the next year and where possible, the
uniqueeducationalneeds. Governor plans to identify opportunities for
National,andeven global,awarenessofUtahs rural parts of the state through the
worldclass outdoor recreation opportunities implementation of teleworking arrangements
continues to accelerate as the state welcomed that benefit both the state and the employee.
over10millionvisitorstoitsfivenationalparks In many cases, existing state employees
in 2016. While some of Utahs 43 state parks workingalongtheWasatchFronthaverootsin
have been beneficiaries of recent efforts to rural Utah and would appreciate the
brand and promote the Mighty Five national opportunitytoreturnhomewhilemaintaininga
parks, visitation to Utahs state parks was goodjob.Thiseffortshouldbeboldandinclude
roughly half that of the national parks for the aggressive targets that benefit rural Utah and
sametimeperiod. ForFY2019, the Governors taxpayers across the state by providing quality
budget proposes that $1.5 million in tourism state employment opportunities in rural Utah
marketing funds be used by the Utah Office of that save taxpayer dollars by reducing
Tourismtofocusonruraltourismdevelopment expensive land and building costs in the urban
in previously underserved rural areas of the areasofthestate.
state.
In addition, more state jobs could be directly
Inaddition,SenateBill264,OutdoorRecreation locatedorphysicallysitedinruralUtah,suchas
GrantProgram,ofthe2017LegislativeGeneral the new public safety dispatchers proposed in
Session, directed new revenues from a short theGovernorsbudget($270,000).
term lodging tax to the Outdoor Recreation
Infrastructure Account. With an estimated $5 GUIDING PRINCIPLES
million to allocate, Utahs Office of Outdoor
The states rural landscapes, communities, and
Recreation has significant new resources to
way of life are core to Utahs identity as the
granttowardrecreationaldevelopmentprojects
greatest state in the nation. As state officials
thatestablishorimprovetrails,constructparks,
formulate policies and programs designed to
or build other qualifying recreational
stabilize and develop the local economies
infrastructureinruralareasofthestate.
throughout rural Utah, the following guiding
principlesshouldbeconsidered:
Another feasible option for addressing rural
Objectivesforruraleconomicdevelopment
Utahslabormarketchallengesisincreasingthe
programsshouldbeclear,welldefined,and
ability to perform work electronically.
include a strong evaluation based on
76
defined criteria for success. If a negative Communities that want to grow viable and
return on investment of state tax dollars is goodpaying jobs must be engaged in
expected for a given program or policy, aligninglocaleconomieswithmarketforces.
such results should be explicitly No single solution can be applied to all
acknowledgedbeforeimplementation. areasofthestate.
Rural economic development programs Asappropriate,thestateshouldreprioritize
should prioritize instate residents with a existingruraldevelopmentfunding,shifting
focus on supplyside labor market fundsawayfromexistingprogramsthatare
interventions (such as relevant workforce notachievinganticipatedoutcomesinfavor
developmentandtrainingprogramsforthe ofeffortsthatdoachieveresults.
longtermunemployed)aswellasdemand
side approaches (such as reducing the SUMMARY
regulatory burden for companies and
In summary, rural Utah faces many challenges.
ensuringthatsufficientpublicinfrastructure
The State of Utah will need to work
exists) to allow firms to expand in and
collaboratively with local governments,
relocatetotheseareasofthestate.
educational institutions, and private sector
Although government clearly has a role to
entitiestofindsolutionsgoingforward.
play, it is not governments role alone to
resolve the challenges of rural Utah.
77
78
CapitalInfrastructureandBonding
AsUtahtakesonnewbonding,cautionurgedregardingassumingadditionaldebt
HIGHLIGHTS with project construction expected to begin in

thespringof2018.
AAA bond rating maintained from all three

ratingagencies(S&P,Moodys,Fitch)
In addition, the legislature has authorized $570
$129 million for state and higher education
million in general obligation bonds to construct
buildings
the new state prison in the northwest quadrant
$5.9millionforOlympicfacilityimprovement
of Salt Lake City. In August 2017, the Governor,
$1.6 billion in new general obligation bonds
lawmakers, and local officials broke ground and
authorizedin2016and2017
sitepreparationiscurrentlyunderway.
Over the next 2.5 years, the Division of

Facilities Construction Management (DFCM)
In FY 2018, the state issued $142 million in
plans to eliminate project management
general obligation bonds, beginning a series of
backlogs by increasing throughput by 20
issuancesforconstructionoftheaforementioned
percent while simultaneously reducing
prison and transportation projects. These bonds
changeordersby20percent
will be issued over the course of the next few
years,withthenextissuanceanticipatedinearly
BACKGROUND
2018.
Wellfunctioning economies require reliable
infrastructure. Although they are sometimes DEBT MANAGEMENT
taken for granted, infrastructure projects UtahslongstandingtripletriplestatusaAAA
typicallyrequiresignificantplanningandfunding. ratingfromallthreebondratingagenciesisthe
Ensuringanappropriatemixofbondingandcash result of conservative and responsible debt
financing for new infrastructure, along with management. Utah is one of only nine states
adequate funding to maintain existing buildings withthisrating.
and transportation infrastructure, adds
FIGURE 1. GENERAL OBLIGATION DEBT AS
significantvaluetoUtahseconomy. PERCENTAGE OF CONSTITUTIONAL LIMIT
After issuing bonds during the Great Recession,

the State of Utah paid down over $1.8 billion in
debt since FY 2012, including $240 million in
general obligation bond debt during FY 2019.
However, the state has begun ramping up $1.6
billioninnewbonds(seeTable4).
NEW DEBT
During the 2017 General Session, the legislature
authorized$1billioningeneralobligationbonds
fortransportationprojectsthroughoutthestate,
79
The Utah Constitution limits the states general personal income remains elevated compared to
obligation debt for buildings and roads to 1.5 themedianofotherAAAstates.
percent of the value of the states taxable
property.AsshowninFigure1,thetotalgeneral FIGURE 3. OUTSTANDING GENERAL
OBLIGATION DEBT PER CAPITA
obligation debt for FY 2018 is approximately 47
percentoftheconstitutionaldebtlimit.Thestate
treasurer recommends that the state strive to
remain in the range of 2550 percent of the
constitutional debt limit at this expansionary
stageofthebusinesscycle.
Utahs net general obligation debt for

transportation and buildings is estimated at
approximately $2.5 billion, including the recent
prison and transportation infrastructure bond
issuanceandanticipatedJanuary2018issuances.
Offsetting these elevated burdens is Utahs
FIGURE 2. OUTSTANDING GENERAL practiceofissuingbondsforcomparativelyshort
OBLIGATION DEBT
terms. To ensure Utah maintains its AAA bond
rating,theStateTreasurerandGovernorsOffice
of Management and Budget will conduct a debt
management study to identify and examine key
debtmeasuresincludingcomparisonswithother
AAAstatesandbestpracticesrelatedtodebt.

DEBTCOMPARISONS
Utahs2017percapitadebt
comparedtothe50statemedian
DEBT AFFORDABILITY MEASURES
Comparingdebtlevelstopopulationandthesize
oftheeconomycanprovidecontexttototaldebt
levels.Generalobligationdebtpercapitapeaked
atahighof$1,280inFY2012.Afterdecliningfor
a number of years, debt per capita began to
increase in FY 2018 due to the issuance of new
prisonandtransportationbonds.InFY2019,this
number is expected to increase from $741 to
reach $804, lower than the FY 2012 peak but CAPITAL IMPROVEMENTS AND
nearlydoubletheprerecessionlowinFY2008. OPERATIONS & MAINTENANCE
FOR STATE BUILDINGS
General obligation debt as a percentage of
personalincomereachedahighof3.9percentin The Governors budget includes $118 million in
FY 2012. For FY 2019, the percentage is funding for capital improvementsdefined in
estimatedtobeabout1.8percent.Accordingto state statute as remodeling, alteration,
themostrecentdata,Utahsdebtasapercentof replacement, or repairs of less than $3.5 million
ortheconstructionofanewfacilityoflessthan
80
$500,000.Capitalimprovementfundsareusedto By applying the SUCCESS Framework, the
replace worn equipment and facilities including Governors Office of Management and Budget
repairstoelectricalandplumbingsystems,roofs, will continue to work with DFCM to reduce the
andparkinglots. number of open capital improvement projects,
implement better workinprocess tracking, and
The Governors total capital improvement centralize administrative tasks for project
budget recommendation meets the statutory managers. Intended outcomes include a 20
level of 1.1 percent of the replacement value of percent increase in throughput while
all state buildings. The Governors Office of simultaneously reducing change orders by 20
Management and Budget recommends percent with the goal to eliminate the backlog
establishing baseline performance measures to within2.5years.
ensure that existing capital improvement funds
aremaximizedbeforeconsideringanincreaseto In addition to examining capital improvements,
the 1.1 percent statutory amount. The State thestateshouldcontinuetoevaluateoperations
Building Board and the Division of Facility and and maintenance (O&M) funding to find
Construction Management are also making opportunities for more efficient use of such
changes to better track operation and funds. The Governor does not recommend an
maintenance funding to ensure proper automatic acrosstheboard increase in O&M
preventativemaintenanceistakingplace. funding, but instead recommends further study
toidentifybestpracticesandtrueneed.
FIGURE 4. CAPITAL IMPROVEMENT FUNDING
CAPITAL DEVELOPMENT
The Governors budget recommends funding
fromnewrevenueforthefollowingbuildings:
$32 million for replacement of the
DepartmentofAgriculturebuilding
$4.3millionfortheNephiNationalGuard
Armory
$35millionforDavisAppliedTechnology
CollegeAlliedHealthbuildingandrelated
O&Mcosts

The legislature precommitted debt service and
Figure 4 depicts the recent history of capital capital development funds (a practice the
improvement funding. While significant new Governor discourages) for the following
capitaldevelopmentprojectshavebeenfunded, buildings:
infrastructure maintenance did not keep pace $25 million for University of Utah
throughtheeconomicdownturn.Thenumberof Hospital
resulting projects has nearly doubled due to $17 million for Dixie State University
growing demand of an aging building inventory. HumanPerformancebuilding
Significant savings can be achieved over time $15.9 million for Weber State University
withproperupkeepandmaintenanceofexisting SocialSciencebuilding
infrastructure. As compared to funding costly
repairsorreconstruction,maintenancecostsare In addition, the Governors budget recommends
substantiallylessoverthelongterm. $5.9milliontoimprovecapitalfacilitiesatUtahs
Olympicvenues.
81
82
Table4GeneralObligationandRevenueBonds
GeneralObligationBondsPayable(Thousands)
BalanceJune
BondIssue DateIssued MaturityDate InterestRate OriginalIssue 30,2017
2009AHighwayIssue 3/17/2009 20102018 2%5% $394,360 $50,530
2009CHighway/CapitalFacilityIssue 9/29/2009 20112018 2%5% $490,410 $138,360
2009DHighwayIssue 9/29/2009 2019,2024 4.15%4.55% $491,760 $491,760
2010AHighway/CapitalFacilityIssue 9/30/2010 20112017 1.75%5% $412,990 $38,915
2010BHighwayIssue 9/30/2010 20192025 3.19%3.54% $621,980 $621,980
2010CRefundingIssue 10/21/2010 20162019 4%5% $172,055 $143,545
2011AHighway/CapitalFacilityIssue 7/6/2011 20122021 2%5% $609,920 $246,820
2012ACapitalFacility/RefundingIssue 10/3/2012 20142017 4%5% $37,350 $28,145
2013HighwayIssue 7/30/2013 20142028 3%5% $226,175 $192,950
2015RefundingIssue 4/29/2015 20192026 3.5%5% $220,980 $220,980
TotalGeneralObligationBondsOutstanding $2,173,985
UnamortizedBondPremium $61,448
TotalGeneralObligationBondsPayable $2,235,433
StateBuildingOwnershipAuthorityLeaseRevenueBondsPayable(Thousands)
BalanceJune
BondIssue DateIssued MaturityDate InterestRate OriginalIssue 30,2017
GovernmentActivities
Series1998C 8/15/1998 20002019 3.8%5.5% $101,557 $10,020
Series2009E 9/9/2009 20182030 4.62%5.77% $89,470 $89,470
Series2010 11/30/2010 20112024 2%5% $24,555 $14,576
Series2011 10/25/2011 20122031 2.13%4% $5,250 $3,175
Series2012A 11/20/2012 20172027 1.5%5% $11,755 $10,885
Series2012B 11/20/2012 20132022 1.5%2.25% $9,100 $3,342
Series2015 4/29/2015 20162030 3%5% $785 $70
Series2016 4/5/2016 20162038 2.25%5% $93,625 $93,625
BusinessTypeActivities
Series1998C 8/15/1998 20002019 3.8%5.5% $3,543 $385
Series2009A 3/25/2009 20112019 3%5% $25,505 $2,200
Series2009B 9/9/2009 20122019 3%5% $8,455 $2,425
Series2009C 9/9/2009 2024,2029 5.29%,5.77% $16,715 $16,715
Series2010 11/30/2010 20112024 2%5% $12,180 $7,829
Series2012A 11/20/2012 20172027 1.5%5% $3,855 $3,735
Series2012B 11/20/2012 20132022 1.5%2.25% $2,600 $834
Series2015 4/29/2015 20162030 3%5% $29,230 $28,790
Series2016 4/5/2016 20162038 2.25%5% $4,525 $4,525
TotalLeaseRevenueBondsOutstanding $292,601
UnamortizedBondPremium $10,056
TotalLeaseRevenueBondsPayable $302,657
83
LegalDebtMargin(Millions)
2013 2014 2015 2016 2017
TaxableValue $201,294 $207,211 $221,650 $235,273 $251,598
FairMarketValue $272,954 $282,489 $303,725 $323,367 $347,716
DebtLimitAmount(1.5%) $4,094 $4,237 $4,556 $4,851 $5,216
NetGeneralObligationBondedDebt $3,361 $3,271 $2,950 $2,585 $2,235
LegalDebtMargin $733 $966 $1,606 $2,266 $2,981
NetGeneralObligationBondedDebtPercentofLimit 82.10% 77.20% 64.75% 53.29% 42.85%
Note:ArticleXIV,Section1oftheUtahConstitutionallowstheStatetocontractdebtsnotexceeding1.5percentofthetotaltaxablepropertyintheState.Netgeneral
obligationandrevenuebondeddebtincludesprincipal,premiums,discounts,anddeferredamountonrefundingsforyearspriorto2014.Beginningin2014,deferred
amountonrefundingisnolongerincluded.ThevalueoftaxablepropertyusedforthefiscalyearlimitationisfromTaxCommissionassessedvaluesfromtheprioryear.
During2010to2012,theStateissuedgeneralobligationbondstotakeadvantageoflowinterestratesandeasebudgetconstraints.
StatutoryDebtLimit(Millions)
2013 2014 2015 2016 2017
AppropriationsLimitationAmount $3142 $3250 $3315 $3469 $3567
StatutoryDebtLimit(45%) $1414 $1463 $1492 $1561 $1605
NetGeneralObligationBondedDebt $3361 $3271 $2950 $2585 $2235
ExemptHighwayConstructionBonds $2869 $2860 $2622 $2402 $2180
NetGeneralObligationBondedDebtSubjecttoLimit $492 $411 $328 $183 $55
AdditionalGeneralObligationDebtIncurringCapacity $922 $1051 $1164 $1378 $1550
Note:ArticleXIV,Section5oftheUtahConstitutionlimitsanyfundsborrowedtobeusedsolelyforpurposesasauthorizedbylaw.Inaddition,Title63J3402oftheUtah
Codelimitsoutstandingstategeneralobligationdebttonotexceedthe45%(unlessapprovedbymorethantwothirdsofbothhousesoftheLegislature)ofthatfiscalyear's
appropriationlimit.Netgeneralobligationandrevenuebondeddebtincludesprincipal,premiums,discounts,anddeferredamountonrefundingsforyearspriorto2014.
Beginningin2014,deferredamountonrefundingisnolongerincluded.
84
MajorRevenueSources
Utahseconomyandrevenuecontinuetogrow
HIGHLIGHTS purposes after being deposited into the General

Fund.
$4.06billionindividualincometax

$2.70billionstatesalesandusetax
Individual Income/Corporate Income Tax.The
24percentofstatesalestaxisearmarked
Utah Constitution requires that income taxes
$344millioncorporatetax
support public and higher education. Based on
$503millionfueltaxes
this constitutional directive, revenues from both
$21.1billioninUtahtaxespaidtothefederal
individual income taxes ($4.06 billion) and
government
corporate franchise and income taxes ($344
$4.34billionoffederalfundsflowthrough
million)arenotdepositedintotheGeneralFund.
thestatebudget(26percent)
Rather, these revenues are segregated into the
Education Fund and used only to support the

STATE TAXES AND FEES
statespublicandhighereducationsystems.
TheStateofUtahimposesvarioustaxesandfees
to fund government programs administered at GasTax.TheUtahConstitutionalsorequiresthat
both the state and local level. The individual proceeds from fees, taxes, and other charges
incometaxandstatesalesandusetaxarebyfar related to the operation of motor vehicles on
thetwolargestrevenuesources.Otherrevenues publichighwaysandproceedsfromanexcisetax
include a corporate franchise and income tax; onliquid motorfuel be usedfor transportation
motor and special fuel taxes (commonly called purposes. Consequently, motor and special fuel
gas taxes); severance taxes on oil, gas, and taxesorgastaxes($503million)aredeposited
mineral extraction; beer, cigarette, and tobacco into a separate Transportation Fund to be used
taxes; and insurance premium taxes. These tax fortransportationpurposes.
revenues are deposited into various state
accounts.Budgetbillsenactedbythelegislature General Fund Revenue Sources.As shown in
authorize the use of these funds for designated Figure 1, state sales and use taxes are the
purposes. primary revenue source for the General Fund
($2.04 billion). Other taxes deposited into the
Sales and Use Tax.The sales and use tax is the GeneralFundincludeseverancetaxesonoil,gas,
largest revenue source for state government and mineral extraction ($30 million); beer,
operations,generatinganestimated$2.70billion cigarette, and tobacco taxes ($114 million);
in revenue for FY 2019. A large portion of sales insurance premium taxes ($132 million); and
andusetaxrevenues($2.04billion)isdeposited cable and satellite excise taxes ($32 million). In
into the General Fund. The remaining $654 addition, other nontax revenues are deposited
millionisearmarked,ofwhichabout$599million intotheGeneralFundsuchasprofitsfromliquor
is for transportation and over $55 million for sales by the Department of Alcoholic Beverage
water and other purposes. In addition to sales Control ($124 million), investment income ($18
tax earmarks, additional revenues are also set million), and other sources including legal
aside for economic development and other settlements, and transfers of certain fee
85
revenuesandcredits(net$80million).InFY2019, tax revenues to other funds, thereby restricting
$10 million of severance tax revenue that has General Fund revenues. For FY 2019, total
historicallygonetotheGeneralFundwillinstead earmarks and setasides are estimated at about
bedepositedtothestatePermanentFund. $740 million, including $654 million in sales tax
earmarkswhichwouldhavebeendepositedinto
ThecurrentfundingmodelfortheDepartmentof the General Fund if the earmark were not in
Alcoholic Beverage Control (DABC) requires the place. In addition to funding challenges, this
agency to submit annual budget requests for change makes it difficult to create a meaningful
core operational needs, which can create historicalcomparisonofGeneralFundallocations
challenges in effectively managing operations or combined General Fund and Education Fund
andgrowth.Newappropriationsreducethetotal allocationsacrosspreviousyears.
profits transferred to the General Fund.The
Governorrecommendsdevelopinganewfunding StateImposedFees.Inadditiontotaxrevenues,
framework for DABC by implementing various the state collects about $1 billion infeeseach
SUCCESS Framework efficiency metrics (such as year. This figure excludes higher education
inventory control) and allowing the agency to tuition andfees, which total an additional $776
retain a portion of efficiency gains that increase million. Revenue collected fromfeesis intended
profits. to tie thecostof providing specific government
services or regulation directly to the user of the
FIGURE 1. GENERAL FUND REVENUE SOURCES service. State statute requires that state
Earmarked Sales Tax.As the Revenue Earmarks imposedfeesbe reasonable, fair, and reflect
thecostof services provided and that a public
hearingbeheldpriortofeeadoption.

Examples of stateimposedfeesinclude business
registrations and licenses, motor vehicle
registration, hunting and fishing licenses, and
feesimposedonregulatedbusinesses(i.e.,state
regulatoryfeesimposed on banks by the
DepartmentofFinancialInstitutionsorinsurance
company fees imposed by the Department of
Insurance).

The Governors tax modernization proposal
recommendsanincreasedrelianceonuserfees,
particularlyfortransportationandwater.

REVENUE ESTIMATES
The Governor's Office of Management and
Budget,theOfficeoftheLegislativeFiscalAnalyst,
and the Utah State Tax Commission develop a
consensuspointforecastforunrestrictedGeneral
Fund, Education Fund, Transportation Fund, and
budget and policy brief highlights in greater earmarked sales and use tax revenues in
detail, over the past decade the legislature has November and February of each year (range
significantlyincreasedearmarksofsalesanduse forecastsarereleasedinJuneandSeptember).
86
The Governors budget recommendations are LAPSING AND NON-LAPSING
basedontheNovember2017consensusforecast. BALANCES
This forecast anticipates new FY 2019 General
Amountsthatareappropriatedtostateagencies,
Fund, Education Fund, and earmarked revenues
but not expended during the year of
above the February 2017 forecast. After
appropriation,remainavailableforuseinfuture
adjusting for the growth of sales tax earmarks
yearseither whenreturned to the fund from
($60 million), new constitutionallymandated
whichtheycame(lapsingbalances)orremaining
severance tax deposits, and a small structural
with the agency for expenditure (nonlapsing
deficit,$382millioninongoingand$102million
balances).
in onetime General Fund and Education Fund

revenue are available for appropriation during
the2018GeneralLegislativeSession.
FIGURE 2. ALLOCATION OF NEW REVENUE TO VARIOUS STATE FUNDS
87
FEDERAL FUNDS product (GDP) when accounting for all federal
spending. And according to a 2017 study
Federal Taxes. Based on IRS data for the 2016
publishedbyFederalFundsInformationforStates
federal fiscal year (most recent data available),
(FFIS),inFY2016Utahhadthesecondlowesttotal
taxpayers from Utah paid over $21.1 billion in
federal spending when measured on a per capita
taxes to the federal government, including over
basis.
$19 billion in individual income, FICA, and
employmenttaxes,$1.3billioninbusinessincome
taxes,andover$823millioninexcise,estate,and
othertaxes.
FederalSpending.Thefederalgovernmentspends
revenuescollectedfromtaxpayersinanumberof
ways, including payments to federal employees
and contracted businesses; retirement and non
retirement benefits to individuals (such as Social
Security);andprogramsthatareappropriatedand
flow through the state budget (statemanaged
programs such as Medicaid and locallymanaged
programssuchaseducation).Insummary,federal
fundsarereturnedbothtotheStateofUtahand
tothoseoutsidestategovernment.
Some argue that because of the federal

governmentsfiscaltrajectory,Utahshouldsimply
relinquish most or all federal funds that flow
throughthestatebudgetbutdoingsowouldnot
relieve Utah taxpayers of the burden of paying
federaltaxes.Instead,taxpayerssimplywouldnot This is, in part, because Utahs population is the
receivethebenefitsbeingpaidfor.TheGovernor youngest in the nation and receives a much
has advocated, and continues to suggest, that smallerportionoffederaldollarsthanotherstates
statesbeallowedtokeepmoreofthetaxdollars forprogramssuchasSocialSecurityandMedicare,
collectedinthefirstplacewithouthavingtosend two of the largest federal entitlement programs
themoneytothefederalgovernment. targetedtotheelderly.

Untiltaxpoliciesarechanged,however,itisnotin As of 2015, Utah is one of only 14 states that
the best interest of Utah citizens to refuse all receive less than 30 percent of its total state
federal funds. Currently, Utah already receives revenue from federal funds. Although there is a
lessreturnperfederaltaxdollarpaidthanthe50 lag in data for comparisons with other states,
stateaverage. Utahs percentage of federal funds appropriated
through the state budget is projected at 26
COMPARING UTAHS RELIANCE ON percent in FY 2019 and is below Utahs 10year
FEDERAL FUNDS TO OTHER STATES averageof28percent.

A recent Pew Charitable Trust report on federal

spending shows that Utah has the ninth lowest

total federal spending relative to gross domestic
88
FEDERAL FUNDING IN THE STATE portion of the states major social service
BUDGET programs(Medicaid,SNAP,TANF,USOR,andWIC),
federal dollars also play a key role in funding
Federal taxpayer funds are returned to Utah
programs that provide care for elderly veterans,
through the state budget for many different
cleandrinkingwater,airpollutionprevention,and
programs. For major federal programs such as
to pay the salaries of citizen soldiers in Utahs
Medicaid,astatematchisrequiredandstateand
National Guard. Moreover, Utahs public
federal funding is combined. In addition, some
education system is projected to receive over
federal funds flow through the state to local
$542 million in federal assistance in FY 2019,
entities such as school districts, counties, and
including a number of federally authorized child
cities.Separatefederalfunds,includinggrants,are
nutrition programs that provide financial
alsoprovideddirectlytolocalgovernmentsanddo
assistance for meals to eligible children; special
notflowthroughthestatesbudget.
education funding authorized in theIndividuals
withDisabilitiesEducationAct(IDEA);andfunding
Figure 3 shows the overall percentage of federal
authorized in Title I of the Elementary and
funds in the state budget. As illustrated, federal
Secondary Education Act that provides additional
fundingasapercentofthestatebudgetincreased
support for students living in poverty, migrant
during the Great Recession when state tax
students,andneglectedstudents.
revenues plummeted and federal aid to states

increased. Federal increases came through FIGURE 4. SELECTED FEDERAL FUNDING AREAS
longstandingprogramssuchasMedicaidandnew FLOWING THROUGH THE STATE BUDGET ($ IN
federalassistanceprogramssuchastheAmerican MILLIONS)

RecoveryandReinvestmentAct(ARRA).AsUtahs
economy recovered, the ratio of federal funds to PROGRAM AREA | FY 2019 BUDGET
thetotalstatebudgetdeclinedandisprojectedto Medicaid $1,863
bebelowthe10yearaverageof28percent. Education(includingspecialeducation,school $542
lunch,andTitle1fordisadvantagedstudents)
FIGURE 3. PERCENTAGE OF FEDERAL FUNDS IN Transportation $407
THE STATE BUDGET
SupplementalNutritionAssistance(SNAP) $308
Temporary Assistance for Needy Families $102
(TANF)
NationalGuard $67
OfficeofRehabilitation(USOR) $65
Women,Infants,andChildren(WIC) $45

Although Utah should exercise caution to not
becomeoverlyrelianton federalfundingandthe
attachedstrings,thestateshouldalsoseektoget
thebestvaluepossibleforthetaxespaidbyUtah
citizens to the federal government. Overly
bureaucratic requirements (especially on state
Figure 4 shows some of the largest federally funded employees) seem to work against
funded program areas. These programs account receiving the best value for the hardearned
forabout78percentoffederalfundsinthestate money Utahs citizens are required to pay in
budget. Not only do federal dollars fund a large federaltaxes.
89
Table 5 - November 2017 Consensus Revenue Estimates
FY 2019 -
FY 2018 FY 2018 FY 2018
All numbers are in thousands of dollars. Authorized Revised FY 2019 Year-over-year
FY 2017 Consensus Consensus Consensus Change from
Actual Estimate Estimate Estimate Adopted
Sales and Use Tax - TOTAL 2,442,117 2,538,297 2,589,476 2,691,540 153,243
Sales and Use Tax - Earmarked for Transportation 523,170 524,102 555,710 598,691 74,589
Sales and Use Tax - Earmarked for Water 35,660 43,260 45,327 54,990 11,729
Sales and Use Tax - Earmarked for Other 26,534 26,534 27,534 534 (26,000)
Subtotal - Sales and Use Tax Eamark 585,363 593,896 628,570 654,214 60,318
Sales and Use Tax - General Fund 1,856,754 1,944,401 1,960,906 2,037,326 92,925
General Fund (GF) Revenue Sources

Sales and Use Tax - General Fund 1,856,754 1,944,401 1,960,906 2,037,326 92,925
Cable/Satellite Excise Tax 31,293 31,834 31,449 31,910 76
Liquor Profits 106,345 118,841 117,323 124,373 5,533
Insurance Premiums 122,024 116,211 126,776 131,719 15,508
Beer, Cigarette, and Tobacco 116,268 116,629 114,908 113,847 (2,783)
Oil and Gas Severance Tax 9,295 17,445 15,340 20,087 2,642
Metal Severance Tax 6,845 6,551 7,995 9,449 2,897
Investment Income 14,301 11,253 16,057 17,513 6,260
Other 83,795 78,688 83,987 85,441 6,753
Property and Energy Credit (5,597) (6,108) (5,700) (5,767) 341
Subtotal General Fund 2,341,321 2,435,744 2,469,041 2,565,898 130,154
Subtotal General Fund / Sales and Use Tax Earmark 2,926,685 3,029,640 3,097,611 3,220,112 190,472
Education Fund (EF) Revenue Sources

Individual Income Tax 3,609,454 3,804,753 3,850,106 4,061,475 256,722
Corporate Tax 328,468 343,848 335,000 344,448 600
Mineral Production Withholding 15,111 15,155 16,428 17,142 1,987
Escheats & Other 27,082 25,486 28,829 29,559 4,073
Subtotal Education Fund 3,980,114 4,189,241 4,230,363 4,452,624 263,382
Subtotal GF/EF/Sales and Use Tax Earmark 6,906,799 7,218,882 7,327,974 7,672,736 453,854
Subtotal GF/EF 6,321,435 6,624,985 6,699,404 7,018,521 393,536
Transportation Fund (TF) Revenue Sources

Motor Fuel Tax 348,755 360,000 354,663 361,606 1,606
Special Fuel Tax 134,913 131,000 138,608 141,288 10,288
Other 89,809 93,000 89,080 90,926 (2,074)
Subtotal Transportation Fund 573,477 584,000 582,351 593,821 9,821
Subtotal GF/EF/TF/Sales and Use Tax Earmark 7,480,276 7,802,882 7,910,326 8,266,556 463,675
Subtotal GF/EF/TF 6,894,912 7,208,985 7,281,755 7,612,342 403,357
Mineral Lease (ML) Revenue

Royalties 72,738 73,528 74,187 78,681 5,154
Bonuses 2,539 3,684 3,600 3,688 4
Subtotal Mineral Lease 75,277 77,212 77,787 82,370 5,158
Total GF/EF/TF/ML/Sales and Use Tax Earmark 7,555,553 7,880,094 7,988,113 8,348,926 468,832
Total GF/EF/TF/ML 6,970,189 7,286,197 7,359,542 7,694,712 408,515
90
Table6SummaryofRecommendationsbyAgency:GeneralFundandEducationFund
OperatingandCapitalBudgets,IncludingExpendableSpecialRevenueFundsandAccounts,andRestrictedFundTransfers
ThistableonlyincludesappropriationsfromtheGeneralFundandtheEducationFundtheUniformSchoolFundisincludedundertheEducationFund
GovernorHerbert'sRecommendations
Actual Authorized Supplementals Recommended Base Ongoing&One Recommended

FY2017 FY2018 FY2018 FY2019 timeAdj. FY2019
PlanofFinancing
GeneralFund $2,321,197,800 $2,437,329,500 $0 $2,437,329,500 $2,437,329,500 $117,487,700 $2,554,817,200
GeneralFund,Onetime 89,562,600 34,873,500 24,382,200 59,255,700 0 20,829,000 20,829,000
EducationFund 3,932,575,800 4,195,571,600 0 4,195,571,600 4,195,571,600 256,576,300 4,452,147,900
EducationFund,Onetime 67,847,500 15,641,200 34,722,500 50,363,700 0 40,696,100 40,696,100
TotalFinancing $6,411,183,700 $6,683,415,800 $59,104,700 $6,742,520,500 $6,632,901,100 $435,589,100 $7,068,490,200
OperatingBudget
AdministrativeServices $17,879,600 $18,265,400 $0 $18,265,400 $22,680,800 ($3,415,000) $19,265,800
AgricultureandFood 13,203,300 13,952,400 593,100 14,545,500 12,695,600 1,032,200 13,727,800
AttorneyGeneral 39,593,600 43,310,600 815,000 44,125,600 41,403,700 1,647,800 43,051,500
Auditor 3,264,600 3,136,400 0 3,136,400 3,318,200 107,100 3,425,300
BoardofPardonsandParole 4,769,300 5,492,500 0 5,492,500 5,142,100 445,500 5,587,600
CapitolPreservationBoard 4,940,400 4,364,700 0 4,364,700 4,362,000 27,900 4,389,900
CareerServiceReviewOffice 273,700 280,500 0 280,500 279,100 7,400 286,500
Commerce 46,000 68,600 0 68,600 68,400 0 68,400
Corrections 291,873,800 306,911,400 0 306,911,400 306,223,000 8,553,200 314,776,200
Courts 129,638,100 133,957,700 2,090,600 136,048,300 133,378,100 4,480,200 137,858,300
EnvironmentalQuality 14,627,800 14,969,400 321,800 15,291,200 13,502,000 2,003,600 15,505,600
GovernorandLieutenantGovernor 31,154,700 32,643,000 1,226,000 33,869,000 29,855,800 8,709,000 38,564,800
Governor`sOfficeofEconomicDev. 37,464,900 37,920,200 725,900 38,646,100 33,423,400 16,321,800 49,745,200
Governor`sOfficeofEnergyDev. 1,470,300 1,722,300 0 1,722,300 1,567,600 117,800 1,685,400
Health 482,061,000 518,899,800 13,548,000 532,447,800 545,818,900 (1,265,200) 544,553,700
HeritageandArts 18,525,400 16,118,400 75,000 16,193,400 15,006,300 1,083,900 16,090,200
HigherEducation 891,971,600 938,413,100 (239,000) 938,174,100 938,716,000 62,032,900 1,000,748,900
HumanResourceManagement 40,000 20,000 0 20,000 20,000 0 20,000
HumanServices 351,226,000 377,113,300 0 377,113,300 370,025,200 18,215,700 388,240,900
Insurance 4,400 4,400 0 4,400 4,400 0 4,400
JuvenileJusticeServices 91,679,100 94,958,400 0 94,958,400 94,569,500 2,319,700 96,889,200
LaborCommission 6,347,900 6,467,500 0 6,467,500 6,433,200 204,100 6,637,300
Legislature 26,375,600 28,218,400 0 28,218,400 27,995,500 642,200 28,637,700
NationalGuard 7,397,400 6,934,600 0 6,934,600 6,924,100 287,600 7,211,700
NaturalResources 41,254,900 46,120,100 19,400,000 65,520,100 41,579,000 1,352,000 42,931,000
PublicEducation 3,078,829,500 3,269,706,000 0 3,269,706,000 3,267,792,800 208,009,900 3,475,802,700
PublicLandsPolicyCoordination 1,906,400 2,038,900 1,177,500 3,216,400 1,635,400 918,900 2,554,300
PublicSafety 77,826,600 78,968,800 486,400 79,455,200 78,626,000 9,432,400 88,058,400
TaxCommission 49,507,200 50,575,900 0 50,575,900 50,318,500 1,457,100 51,775,600
TechnicalColleges 77,529,000 85,962,400 (38,500) 85,923,900 85,107,500 8,719,400 93,826,900
TechnologyServices 3,601,400 1,727,700 (950,000) 777,700 1,641,300 144,900 1,786,200
Transportation 0 1,100,000 0 1,100,000 2,500,000 0 2,500,000
Treasurer 982,100 1,007,100 0 1,007,100 1,003,300 25,000 1,028,300
UtahEducationandTelehealthNetwork 28,663,200 27,576,600 0 27,576,600 24,576,600 3,543,200 28,119,800
UtahScience,Technology,andResearch 22,146,500 22,124,000 0 22,124,000 21,622,600 87,600 21,710,200
VeteransàndMilitaryAffairs 3,703,700 3,506,500 (155,000) 3,351,500 3,322,500 557,500 3,880,000
WorkforceServices 60,065,000 71,275,000 9,455,100 80,730,100 84,449,500 2,629,700 87,079,200
SubtotalOperatingBudget 5,911,844,000 6,265,832,000 48,531,900 6,314,363,900 6,277,587,900 360,437,000 6,638,024,900
CapitalBudget
CapitalBudget 257,665,000 182,098,900 0 182,098,900 185,568,800 62,143,600 247,712,400
NaturalResources 689,100 689,100 0 689,100 689,100 0 689,100
PublicEducation 14,499,700 14,499,700 0 14,499,700 14,499,700 0 14,499,700
Transportation 3,000,000 40,000 0 40,000 0 0 0
SubtotalCapitalBudget 275,853,800 197,327,700 0 197,327,700 200,757,600 62,143,600 262,901,200
DebtService 85,957,600 71,532,000 45,700 71,577,700 25,757,600 14,087,100 39,844,700
EnterpriseorLoanFund 104,100 2,061,000 0 2,061,000 0 0 0
InternalServiceFund 0 148,600 0 148,600 148,600 0 148,600
Transfers* 137,424,200 146,514,500 10,527,100 157,041,600 128,649,400 (1,078,600) 127,570,800
TotalBudget $6,411,183,700 $6,683,415,800 $59,104,700 $6,742,520,500 $6,632,901,100 $435,589,100 $7,068,490,200
*TheTransfers lineincludestransfersfromtheGeneralFundandEducationFundtorestrictedfundsandaccounts.GeneralFundorEducationFundappropriationsto
expendablefundsandaccountsareincludedundertheagenciesthatmanagetheexpendablefundsandaccounts.
91
SourcesandUsesofUnrestrictedGeneralFundandEducationFund
FY2019Recommendations
92
FundingUses
FundingSources
BasedonTable6SummaryofRecommendationsbyAgency:GeneralFundandEducationFund.Figuresmayvaryfromothersourcesdueto
roundingandcategorization.
Table7SummaryofRecommendationsbyAgency:StateCollectedFunds
OperatingandCapitalBudgets,IncludingExpendableSpecialRevenueFundsandAccounts
Thistableincludesoperatingandcapitalbudgets,includingexpendablespecialrevenuefundsandaccounts,fromallstatecollectedsourcesoffunding.Sourcesoffundingincludenot
onlytheGeneralFundandtheEducationFund,butalsoearmarkedtaxrevenue,fundingfromrestrictedfundsandaccounts,anddedicatedcredits.Statecollectedfundsdonot
includefederalfunds,minerallease,orlocalpropertytaxandexcludeshighereducationtuition.

PlanofFinancing
GeneralFund $2,289,213,800 $2,400,031,500 $0 $2,400,031,500 $2,400,031,500 $107,482,700 $2,507,514,200
GeneralFund,Onetime 59,018,300 (1,552,600) 13,855,100 12,302,500 0 15,829,000 15,829,000
EducationFund 3,857,575,800 4,104,071,600 0 4,104,071,600 4,104,071,600 256,576,300 4,360,647,900
TransportationFund 502,818,100 634,713,100 0 634,713,100 596,328,700 4,200,900 600,529,600
TransportationFund,Onetime 66,168,900 (40,494,900) 0 (40,494,900) 0 801,500 801,500
DedicatedCredits 673,784,300 680,371,300 816,800 681,188,100 666,958,400 8,406,700 675,365,100
Other 44,006,600 59,821,800 (46,682,500) 13,139,300 62,328,900 (46,460,800) 15,868,100
PassThrough 2,378,300 10,956,900 0 10,956,900 10,956,900 18,900 10,975,800
RestrictedRevenue 1,672,399,200 1,755,787,400 86,646,600 1,842,434,000 1,718,921,600 24,998,300 1,743,919,900
Transfers 689,618,100 700,719,900 316,800 701,036,700 489,389,300 29,455,800 518,845,100
Trust&Agency 3,345,100 1,384,900 0 1,384,900 1,384,900 0 1,384,900
BeginningBalance 1,662,171,100 1,680,269,800 (5,000,000) 1,675,269,800 1,431,280,500 (317,500) 1,430,963,000
NonlapsingBalance (1,682,258,800) (1,431,280,500) 317,500 (1,430,963,000) (1,310,714,200) 317,500 (1,310,396,700)
LapsingBalance (343,346,500) (15,013,400) 0 (15,013,400) (1,669,300) 0 (1,669,300)
TotalFinancing $9,564,739,800 $10,571,928,000 $84,992,800 $10,656,920,800 $10,169,268,800 $458,089,000 $10,627,357,800
OperatingBudget
AdministrativeServices $33,132,500 $38,120,000 $468,300 $38,588,300 $41,217,000 ($2,690,000) $38,527,000
AgricultureandFood 26,907,000 36,645,200 1,003,100 37,648,300 30,722,100 4,499,400 35,221,500
AlcoholicBeverageControl 46,679,300 50,436,800 1,000,000 51,436,800 51,865,000 3,464,300 55,329,300
Auditor 5,257,600 5,693,100 464,600 6,157,700 5,916,900 1,051,900 6,968,800
Commerce 29,089,900 35,681,700 0 35,681,700 33,897,100 792,900 34,690,000
Corrections 297,838,100 323,172,000 (5,000,000) 318,172,000 312,426,500 8,563,800 320,990,300
Courts 147,232,800 164,311,700 2,090,600 166,402,300 160,239,900 4,455,700 164,695,600
FinancialInstitutions 7,658,000 7,964,900 0 7,964,900 7,627,700 197,500 7,825,200
Governor`sOfficeofEconomicDev. 58,414,700 69,293,200 1,102,900 70,396,100 76,002,100 17,844,800 93,846,900
Health 1,080,636,600 1,215,554,300 13,548,000 1,229,102,300 1,240,597,300 (330,700) 1,240,266,600
HeritageandArts 21,463,300 20,500,200 (117,800) 20,382,400 19,676,100 934,000 20,610,100
HigherEducation 908,932,000 1,063,212,600 (239,000) 1,062,973,600 960,833,300 45,949,300 1,006,782,600
HumanServices 589,726,100 653,968,900 0 653,968,900 632,053,100 42,207,500 674,260,600
Insurance 11,133,200 13,153,900 0 13,153,900 13,394,700 363,200 13,757,900
Legislature 25,236,400 28,474,400 0 28,474,400 28,251,500 646,100 28,897,600
NationalGuard 7,793,800 8,909,100 0 8,909,100 8,469,300 292,200 8,761,500
PublicSafety 155,296,600 179,591,800 486,400 180,078,200 163,387,800 9,076,900 172,464,700
PublicServiceCommission 14,475,100 17,815,600 0 17,815,600 17,466,800 64,000 17,530,800
SchoolandInst.TrustFundOffice 746,300 913,300 0 913,300 912,600 53,600 966,200
SchoolandInst.TrustLandsAdmin. 10,621,000 11,445,700 0 11,445,700 10,767,500 591,400 11,358,900
TaxCommission 88,980,200 95,464,600 0 95,464,600 95,404,600 2,510,500 97,915,100
TechnologyServices 3,786,200 4,622,300 (950,000) 3,672,300 3,118,100 149,400 3,267,500
Transportation 298,598,100 264,702,100 0 264,702,100 253,186,800 9,308,900 262,495,700
Treasurer 3,265,700 4,038,800 49,200 4,088,000 3,675,900 159,200 3,835,100
UtahCommunicationsAuthority 5,784,900 12,564,100 3,931,700 16,495,800 9,990,600 0 9,990,600
VeteransàndMilitaryAffairs 1,086,800 7,773,700 (155,000) 7,618,700 7,049,600 560,000 7,609,600
93

CapitalBudget
CapitalBudget 516,906,500 338,644,800 0 338,644,800 304,835,600 62,143,600 366,979,200
NaturalResources 4,071,500 8,503,500 0 8,503,500 3,976,500 4,200,000 8,176,500
SchoolandInst.TrustLandsAdmin. 12,186,300 5,899,300 0 5,899,300 6,199,300 (100) 6,199,200
Transportation 636,181,500 992,953,900 27,011,500 1,019,965,400 995,543,100 (50,632,500) 944,910,600
WorkforceServices 30,433,100 93,060,000 0 93,060,000 93,060,000 0 93,060,000
SubtotalCapitalBudget 1,233,028,600 1,472,311,200 27,011,500 1,499,322,700 1,436,864,200 15,711,000 1,452,575,200
DebtService 446,012,700 387,462,500 4,886,100 392,348,600 345,118,800 14,087,100 359,205,900
TotalBudget $9,564,739,800 $10,571,928,000 $84,992,800 $10,656,920,800 $10,169,268,800 $458,089,000 $10,627,357,800
94
SourcesandUsesofStatecollectedFunds
95
FundingUses
FundingSources
BasedonTable7SummaryofRecommendationsbyAgency:StateCollectedFunds.Figuresmayvaryfromothersourcesduetoroundingand
categorization.
96
Table8SummaryofRecommendationsbyAgency:AllSourcesofFunding
OperatingandCapitalBudgets,IncludingExpendableSpecialRevenueFundsandAccounts
Thistableincludesoperatingandcapitalbudgets,includingexpendablespecialrevenuefundsandaccounts,fromallsourcesoffunding.Thesesourcesoffundingincludestatecollectedfundsfromtaxesand
fees,plusfederalfunds,mineralleaserevenues,highereducationtuition,andaportionoflocalschoolpropertytaxes.
Actual Authorized Supplementals Recommended Base Ongoing&Onetime Recommended

FY2017 FY2018 FY2018 FY2019 Adj. FY2019
PlanofFinancing
GeneralFund $2,289,213,800 $2,400,031,500 $0 $2,400,031,500 $2,400,031,500 $107,482,700 $2,507,514,200
GeneralFund,Onetime 59,018,300 (1,552,600) 13,855,100 12,302,500 0 15,829,000 15,829,000
EducationFund 3,857,575,800 4,104,071,600 0 4,104,071,600 4,104,071,600 256,576,300 4,360,647,900
TransportationFund 502,818,100 634,713,100 0 634,713,100 596,328,700 4,200,900 600,529,600
TransportationFund,Onetime 66,168,900 (40,494,900) 0 (40,494,900) 0 801,500 801,500
DedicatedCredits 1,470,052,400 1,456,244,300 816,800 1,457,061,100 1,442,831,400 8,525,900 1,451,357,300
FederalFunds 3,809,290,500 4,284,119,900 35,539,700 4,319,659,600 4,267,538,800 95,802,200 4,363,341,000
MineralLease 52,315,300 52,400,400 0 52,400,400 80,291,200 47,400 80,338,600
Other 44,006,600 59,821,800 (46,682,500) 13,139,300 62,328,900 (46,460,800) 15,868,100
PassThrough 2,378,300 10,956,900 0 10,956,900 10,956,900 18,900 10,975,800
RestrictedRevenue 1,672,399,200 1,755,787,400 86,646,600 1,842,434,000 1,718,921,600 24,998,300 1,743,919,900
Transfers 689,618,100 700,719,900 316,800 701,036,700 489,389,300 29,455,800 518,845,100
Trust&Agency 3,345,100 1,384,900 0 1,384,900 1,384,900 0 1,384,900
BeginningBalance 1,662,171,100 1,680,269,800 (5,000,000) 1,675,269,800 1,431,280,500 (317,500) 1,430,963,000
NonlapsingBalance (1,682,258,800) (1,431,280,500) 317,500 (1,430,963,000) (1,310,714,200) 317,500 (1,310,396,700)
LapsingBalance (343,346,500) (15,013,400) 0 (15,013,400) (1,669,300) 0 (1,669,300)
LocalPropertyTax 783,265,500 813,817,800 0 813,817,800 813,817,800 43,545,000 857,362,800
TotalFinancing $15,005,879,200 $16,498,139,100 $120,532,500 $16,618,671,600 $16,106,789,600 $597,602,800 $16,704,392,400
OperatingBudget
AdministrativeServices $33,555,600 $38,692,100 $468,300 $39,160,400 $41,869,700 ($2,688,700) $39,181,000
AgricultureandFood 32,156,100 44,943,400 1,003,100 45,946,500 38,671,700 4,634,900 43,306,600
AlcoholicBeverageControl 46,679,300 50,436,800 1,000,000 51,436,800 51,865,000 3,464,300 55,329,300
Auditor 5,257,600 5,693,100 464,600 6,157,700 5,916,900 1,051,900 6,968,800
Commerce 29,404,600 36,089,000 0 36,089,000 34,304,400 800,900 35,105,300
Corrections 298,161,800 323,568,400 (5,000,000) 318,568,400 312,822,400 8,563,800 321,386,200
Courts 147,763,200 165,079,000 2,090,600 167,169,600 161,006,000 4,463,800 165,469,800
FinancialInstitutions 7,658,000 7,964,900 0 7,964,900 7,627,700 197,500 7,825,200
Governor`sOfficeofEconomicDev. 59,479,700 70,358,000 1,102,900 71,460,900 77,065,100 17,851,100 94,916,200
Health 3,091,771,500 3,477,430,100 29,637,800 3,507,067,900 3,485,719,300 67,777,800 3,553,497,100
HeritageandArts 28,906,400 28,901,900 (117,800) 28,784,100 28,140,700 986,300 29,127,000
HigherEducation 1,704,942,200 1,837,295,900 (239,000) 1,837,056,900 1,735,017,000 46,066,100 1,781,083,100
HumanServices 716,506,600 791,740,600 5,537,500 797,278,100 773,926,200 43,529,900 817,456,100
Insurance 11,679,900 14,358,400 0 14,358,400 14,694,700 365,900 15,060,600
Legislature 25,236,400 28,474,400 0 28,474,400 28,251,500 646,100 28,897,600
NationalGuard 47,211,000 76,126,400 0 76,126,400 75,686,600 813,900 76,500,500
PublicSafety 172,841,100 214,823,100 486,400 215,309,500 191,692,300 9,534,600 201,226,900
PublicServiceCommission 14,475,100 17,815,600 0 17,815,600 17,466,800 64,000 17,530,800
SchoolandInst.TrustFundOffice 746,300 913,300 0 913,300 912,600 53,600 966,200
SchoolandInst.TrustLandsAdmin. 10,621,000 11,445,700 0 11,445,700 10,767,500 591,400 11,358,900
TaxCommission 89,546,300 96,045,800 0 96,045,800 95,985,800 2,535,500 98,521,300
TechnologyServices 4,336,200 4,930,700 (950,000) 3,980,700 3,426,500 155,000 3,581,500
Transportation 345,447,000 295,960,100 0 295,960,100 285,431,600 9,367,800 294,799,400
Treasurer 3,265,700 4,038,800 49,200 4,088,000 3,675,900 159,200 3,835,100
UtahCommunicationsAuthority 5,784,900 12,564,100 3,931,700 16,495,800 9,990,600 0 9,990,600
VeteransàndMilitaryAffairs 29,152,000 29,837,600 13,757,400 43,595,000 29,237,200 19,596,500 48,833,700
97
Actual Authorized Supplementals Recommended Base Ongoing&Onetime Recommended

FY2017 FY2018 FY2018 FY2019 Adj. FY2019
CapitalBudget
CapitalBudget 516,906,500 338,644,800 0 338,644,800 304,835,600 62,143,600 366,979,200
NaturalResources 7,711,300 12,973,200 0 12,973,200 8,446,200 4,200,000 12,646,200
SchoolandInst.TrustLandsAdmin. 12,186,300 5,899,300 0 5,899,300 6,199,300 (100) 6,199,200
Transportation 1,027,449,700 1,359,136,200 27,011,500 1,386,147,700 1,363,517,900 (50,632,500) 1,312,885,400
WorkforceServices 33,991,300 96,682,000 0 96,682,000 96,901,400 0 96,901,400
SubtotalCapitalBudget 1,631,494,800 1,846,585,200 27,011,500 1,873,596,700 1,813,150,100 15,711,000 1,828,861,100
DebtService 461,858,500 403,340,200 4,886,100 408,226,300 360,931,500 14,087,100 375,018,600
TotalBudget $15,005,879,200 $16,498,139,100 $120,532,500 $16,618,671,600 $16,106,789,600 $597,602,800 $16,704,392,400
98
SourcesandUsesofAllFunds
99
FundingUses
FundingSources

BasedonTable8SummaryofRecommendationsbyAgency:AllSourcesofFunding.Figuresmayvaryfromothersourcesduetoroundingand
categorization.
100
Table9RecommendedAdjustmentsbyAgency:EducationFundandGeneralFund
OngoingandOnetimeFunding
FY2018RecommendedAdjustments
Adjustment Onetime Ongoing
AgricultureandFood
StateUnifiedLabO&MAdjustment $6,900
BrandInspectionProgram 600,000
AttorneyGeneral
AttorneyFeesforExistingCaseSettlements 815,000
Courts
CourtJuror,Witness,InterpreterCosts(FY2017DeficitandFY2018Supplemental) 2,090,600
DebtService
BuildAmericaBondsSubsidy 45,700
EnvironmentalQuality
AlgalBloomatUtahLake,ScofieldReservoir,JordanandPriceRiversandOtherLocations 126,200
ReappropriateLapsedFundsforUtahMappingandInformationPartnership(UMIP) 195,600
GovernorandLieutenantGovernor
ElectionSystemSecurityAuditandUpgrades 106,000
SignatureReview 20,000
VoterOutreachfor2018Elections 150,000
Governor`sOfficeofEconomicDev.
InlandPortStudyandAnalysis 475,000
ReductionandReallocationofInternationalGroup 200,000
ReappropriateLapsedFundsforAvenueHPhaseout 450,900
ReappropriateLapsedFundsforFilmIncentives 377,000
Health
FamilyPlanningMedicaidServices(ThreeyearPilot) 37,500
MedicaidConsensusItems 13,560,000
StateUnifiedLabO&MAdjustment 49,500
HeritageandArts
IndianAffairsStructuralImbalance 75,000
HigherEducation
HigherEducationBuildingO&MSavings 239,000
NaturalResources
2017WildfireSuppressionandRemediationCosts 19,400,000
PublicLandsPolicyCoordination
ReappropriateLapsingGFandCDRABalancestoPLPCO'sMainLineItem 1,177,500
PublicSafety
FireAcademy 430,000
TechnicalColleges
Transfers
FirefighterRetirement 9,570,000
VeteransàndMilitaryAffairs
OneTimeEfficiencySavings 155,000
WorkforceServices
FamilyPlanningMedicaidServices(ThreeyearPilot) 35,200
StateParticipationinOperationRioGrandeFundingGap 10,000,000
TotalFY2018RecommendedAdjustmentsfortheGeneralFundandEducationFund $59,104,700
101
AdjustmentstoOtherFundsThatImpactGeneralFundRevenue
AdministrativeServices
ErulesSystem 300,000
ExecutiveBranchEthicsCommission 17,500
AgricultureandFood
RetailBeddingInspectionPersonnel 30,000
TotalFY2018RevenueImpacts $347,500
TotalFY2018GeneralFundandEducationFundAdjustmentsandImpacts $59,452,200
ErulesSystem $250,000
DFCMProjectManagers,ProfessionalEstimator,andDataSpecialist 445,000
AgricultureandFood
FairparkOperatingExpenses 675,000
AttorneyGeneral
IncreaseAttorneyGeneralStaffCount 350,000
OfficeSpaceLease 120,000
BoardofPardonsandParole
ElectronicRecordsSystem 100,400
StaffIncreases(CaseAnalyst,QualityControlDataAnalyst)andFundingforProTemporeBoard 184,500
Members
CapitalBudget
CapitalDevelopmentandDebtServiceAdjustments 46,000,000
DepartmentofAgricultureandFoodBuilding 32,325,000
NationalGuardNephiArmoryBuilding 4,341,300
DavisTechnicalCollegeAlliedHealthBuilding 34,364,500
UniversityofUtahMedicalEducationandDiscoveryRehabilitationHospital 5,000,000
DixieStateUniversityHumanPerformanceCenter 17,000,000
WeberStateUniversitySocialScienceBuildingRenovation 15,940,000
CapitalImprovementFunding(1.1%ReplacementValue) 827,800
Corrections
JailContractingTreatment 463,400
Courts
FourthDistrictCourtLawClerks 288,800
GuardianshipReportingandMonitoringProgram 183,700
ShiftFundingSourceforProvoCourtComplexfromRestrictedFundstoGeneralFunds 313,400
DebtService
BuildAmericaBondsSubsidy 14,245,700
CapitalDevelopmentandDebtServiceAdjustments 46,000,000 46,000,000
FundingSourceAdjustmentforPrisonDebtService 158,600
AirQualityPlanningConsultant 113,300
AlgalBloomatUtahLake,ScofieldReservoir,JordanandPriceRiversandOtherLocations 178,500
EnvironmentalScientist 118,700
LocalHealthDepartmentIncreasetoEnvironmentalQualityServices 500,000
StackTestingAuditor 118,700
UtahSpecificAirQualityResearch:WoodBurning,DieselAmmoniaEmissions,AirQuailityModeling, 500,000
DataCollectionApplication
102
IndigentDefenseCommission 1,505,000
JailReimbursement 1,725,000
JusticeReinvestmentInitiativeCountyIncentiveGrants 1,000,000
VoterOutreachfor2018Elections 250,000
VotingEquipment 4,500,000
PostsecondarySUCCESSFrameworkPilotProjects 1,000,000
BroadbandPhaseoutandReallocation 259,800
MegaSiteCertificationProgram 225,000
ReductionandReallocationofInternationalGroup 400,000
StateBrandPromotion 250,000
SundanceandGOEDCobranding 750,000
TourismMarketing 1,500,000
UtahOlympicLegacyFoundationCapitalFacilityImprovement 5,900,000
GOED/PostsecondaryEducationPartnershipforTargetedTrainingPrograms 9,583,600
Governor`sOfficeofEnergyDev.
AdjustStateMatchingFundsforFederal/StateEnergyProgram 18,200
EnergyIncentiveProgramAdministrativeCosts 60,000
Health
AccountableCareOrganization(ACO)RateIncreasesupto3.5%GrowthRate 1,846,000 3,692,000
Children'sHealthInsuranceProgram(CHIP)EnhancedFederalMatch 16,133,200
Children'sHealthInsuranceProgram(CHIP)FutureStateMatch 5,000,000 5,000,000
CommunitySupportsMedicaidWaiverPlacementsforPeoplewithIntellectualDisabilities 488,300
ContinuationofMedicaidWaiverforChildrenwithMedicallyComplexConditions 500,000 2,253,600
EarlyInterventionHomeVisitingPrograms 500,000
FamilyPlanningMedicaidServices(ThreeyearPilot) 1,193,600
HealthFacilityLicensingSurveyStaff 150,000
MedicaidConsensusItems 13,597,000 20,251,000
OfficeoftheStateMedicalExaminerPathologists&Staffing 1,250,000
UtahStatewideImmunizationTechnologySystem 230,000
HeritageandArts
AncientHumanRemainsRecoveryandAnalysisPersonnel 125,000
ArtsSustainabilityGrants 500,000
CollectionsManagementPersonnel 90,000
IndianAffairsStructuralImbalance 75,000
HigherEducation
DiscretionaryFundingforBoardofRegentstoAddressBudgetPriorities 24,000,000
HigherEducationBuildingO&MSavings 2,046,700
PerformancebasedFunding 9,583,600
PostsecondaryEducationCompensationEliminationofMandatory(TierI)TuitionIncrease(USHE) 7,953,000
PostsecondaryEducationDentalInsuranceDecrease 162,000
PostsecondaryEducationHealthInsuranceIncrease 7,010,300
PostsecondaryEducationWageandWagebasedBenefitsIncrease 18,394,700
HumanServices
CommunitybasedEmploymentServicesforPeoplewithIntellectualDisabilities 1,171,600
DivisionofServicesforPeoplewithDisabilities(DSPD)WaitingList148People 1,000,000
ForensicCompetencyRestorationIncreasedCapacityattheStateHospital&JuvenileRestoration 2,600,000
Program
MedicaidConsensusItems 1,220,500
YouthinCustodyAgingintoDivisionofServicesforPeoplewithDisabilities(DSPD)Services& 7,217,700
AdditionalNeedsforDSPDServiceRecipients
JuvenileJusticeServices
MedicaidConsensusItems 24,500
103
NationalGuard
TuitionAssistanceTargetedtoHighDemandWorkforceNeeds 250,000
OperationandMaintenanceforNationalGuardSpecialForcesReadinessCenter 148,500 198,000
NaturalResources
CatastrophicWildfireReductionStrategy 500,000
PublicEducation
BeverleyTaylorSorensonArtsLearningProgram 1,000,000
ConsensusEnrollmentGrowth 33,488,500
EnrollmentGrowthforFourAdditionalPrograms 274,900
4%IncreaseintheWeightedPupilUnit(WPU) 121,182,300
IncreaseinLocalLevyGuarantee(EqualizationofLocalSchoolPropertyTaxes 12,800,000
StatutoryIncreaseforUSDBEducators(Steps&Lanes) 765,800
UtahStateInstructionalMaterialsAccessCenter(USIMAC)Expansion 500,000 450,000
DiscretionaryFundingforBoardofEducationtoAddressStaffingPriorities 313,000
StatutoryIncreaseforCarsonSmithScholarship 300,000
NewWPUAddonforStudentsAtRiskofAcademicFailure 33,833,200
NewLocalLevyGuaranteeforRuralSchools(EqualizationofLocalSchoolPropertyTaxes) 2,000,000
ReducePublicLandsPolicyCoordinatingOffice(PLPCO)StructuralDeficit 900,000
PublicSafety
AeroBureauOvertime 50,000
CentralizedEvidenceProgram 500,000
DNASupplies 581,300
FireMarshall 300,000
FirearmCaseworkandBallisticInformationServices 290,000
HireNewPublicSafetyDispatchers 270,000
IntelligencebasedPolicingPersonnel 60,000 220,000
PeaceOfficer'sStandardsandTraining(POST)Shortfall 500,000
FireAcademy 4,200,000
TechnicalColleges
DavisTechnicalCollegeAlliedHealthBuildingOperationsandMaintenance(O&M) 661,300 661,300
DiscretionaryFundingforUSTCBoardofTrusteestoAddressBudgetPriorities 7,000,000
PostsecondaryEducationHealthInsuranceIncrease 560,800
PostsecondaryEducationWageandWagebasedBenefitsIncrease 1,202,900
TechnologyServices
AutomatedGeographicReferenceCenter(AGRC)DataFund 125,000
Transfers
FirefighterRetirement 7,000,000
RainyDayFundDeposit 5,000,000
UtahEducationandTelehealthNetwork
PostsecondaryEducationHealthInsuranceIncrease 75,200
PostsecondaryEducationWageandWagebasedBenefitsIncrease 170,000
TelehealthOperations 350,000
UETNEquipment 1,500,000 500,000
UETNExpandedConnectivity 650,000
UETNNetworkOperationsCenter24/7StaffingStage2 300,000
VeteransàndMilitaryAffairs
VeteranFirstTimeHomeBuyerProgram 500,000
WorkforceServices
FamilyPlanningMedicaidServices(ThreeyearPilot) 1,096,500
104
Compensation
OngoingFundingforFY2018CompensationAdjustments 1,102,600
StateEmployee401kMatch 118,900
StateEmployeeDentalInsuranceDecrease 236,700
StateEmployeeHealthInsuranceIncrease 7,490,400
StateEmployeeRetirementRateChange 173,000
StateEmployeeTargetedWageandWagebasedBenefitsIncrease 3,148,500
StateEmployeeWageandWagebasedBenefitsIncrease 14,573,200
ISFRates
FacilitiesConstruction&ManagementISFAdjustments 146,900
FinanceISFAdjustments 22,000
FleetISFAdjustments 10,400
HumanResourcesMgmt.ISFAdjustments 146,500
LearningManagementSystem 200
RiskMgmtLiabilityISFAdjustments 340,900
RiskMgmt.PropertyISFAdjustments 46,700
StateMailISFAdjustments 60,600
TechnologyServicesISFAdjustments 760,300
TotalFY2019RecommendedAdjustmentsfortheGeneralFundandEducationFund $61,525,100 $374,064,000
AdjustmentstoOtherFundsThatImpactGeneralFundRevenue
AgricultureandFood
RetailBeddingInspectionPersonnel $71,000
PesticideApplicatorLicensing 125,000
AlcoholicBeverageControl
SUCCESSFrameworkProjectInventoryControl 207,000 268,400
SyracuseDABCStoreStaffing 650,000
WestValleyDABCStoreBondPayment 83,100 332,400
Commerce
GeologistBoardProfessionalDevelopment&EducationalOutreach 10,000
UniformCommercialCodeUpdatedSystem 50,000
Compensation
OngoingFundingforFY2018CompensationAdjustments 59,800
StateEmployee401kMatch 273,900
StateEmployeeDentalInsuranceDecrease 15,100
StateEmployeeHealthInsuranceIncrease 472,300
StateEmployeeTargetedWageandWagebasedBenefitsIncrease 179,100
StateEmployeeWageandWagebasedBenefitsIncrease 961,500
ISFRates
FacilitiesConstruction&ManagementISFAdjustments 30,500
FleetISFAdjustments 2,000
HumanResourcesMgmt.ISFAdjustments 12,000
RiskMgmtLiabilityISFAdjustments 2,700
RiskMgmt.PropertyISFAdjustments 900
StateMailISFAdjustments 4,900
TechnologyServicesISFAdjustments 103,200
TotalFY2019RevenueImpacts $564,000 $3,316,600
TotalFY2019GeneralFundandEducationFundAdjustmentsandImpacts $62,089,100 $377,380,600
105
106
Table10RecommendedAdjustments:RestrictedFundsandFeeCollections
OngoingandOnetimeFunding
Adjustment FundingSource Onetime Ongoing
AgricultureandFood
GrazingImprovementProgramVehicle 1035(DAG)RangelandImprovementAccount $30,000
PlantComplianceSpecialists 2360DAGDepartmentServiceFees 50,000
RegulatoryManagementSystem 2360DAGDepartmentServiceFees 300,000
SB155RetainedFunding 5480(ABC)AlcoholicBeverageControlLiquorControlFund 1,000,000
Auditor
FeeCollectionsforStateAuditorProfessionalServices DedicatedCredits 464,600
DebtService
TIFincrease 2900(DOT)TransportationInvestmentFundof2005 3,139,300
Countyof1stClassIncrease 2845(DOT)CountyoflstClassHwyPrjFund 1,701,100
EnvironmentalResponseandRemediationDedicatedCredits DedicatedCredits 165,000
AdjustSchoolReadinessFunds 1409(GOV)SchoolReadinessRestAcct 1,100
ReappropriateLapsedFundsforFilmIncentives 1402(GOV)MotionPictureIncentiveAccount 377,000
HeritageandArts
BookmobileDedicatedCreditsReduction DedicatedCredits 100,600
DigitizationofArchivedRecords DedicatedCredits 92,200
NaturalResources
BuildingConstruction 1171(DNR)WildlifeResourcesTrustAccount 300,000
ManagementofRarePlantData 1142(DNR)SpeciesProtectionAccount 40,000
ParksCurrentExpense 1157(DPR)StateParkFeesRestrictedAccount 250,000
ParksSeasonalStaffandWages 1157(DPR)StateParkFeesRestrictedAccount 150,000
ReappropriateLapsingGFandCDRABalancestoPLPCO'sMainLine 1185(DNR)SovereignLandsManagementAccount 43,500
Item
ReappropriateLapsingGFandCDRABalancestoPLPCO'sMainLine 1321(FIN)ConstitutionalDefenseRestrictedAccount 1,145,600
Item
Transportation
DesignatedSalesTax StateSalesTax 46,682,500
DOTTIFCapacityProgram 2900(DOT)TransportationInvestmentFundof2005 73,694,000
UtahCommunicationsAuthority
UpgradeandMaintenanceof911Systems 1253(FIN)UnifiedStatewide911EmergencyServiceAccount 3,500,000
UpgradeComputerAidedDispatchSystemstoAssistFirst 1341(FIN)CompAidedDispatchRestAcct 431,700
Responders
WorkforceServices
AdjustmentsforCostAllocationModel 2115(DWS)NavajoRevitalizationFund 13,000
AdjustmentsforCostAllocationModel 2135(DWS)UintahBasinRevitalizationFund 5,000
AdjustmentsforCostAllocationModel 2151(DWS)QualifiedEmergencyFoodAgenciesFund 5,500
AdjustmentsforCostAllocationModel 5285(FIN)PermanentCommunityImpactLoanFund 1,000
AdjustmentsforCostAllocationModel 5429(DWS)OWHTFedHomeIncome 21,700
AdjustmentsforCostAllocationModel 5441(DWS)OWHTFLowIncomeHousingPI 19,200
FamilyPlanningMedicaidServices(ThreeyearPilot) Transfers 316,800
TotalFY2018RecommendedAdjustmentsfromRestrictedFundsandFeeCollections $40,287,600
DFCMProjectManagers,ProfessionalEstimator,andData Transfers 535,000
Specialist
AgricultureandFood
AgricultureWaterandDataEfficiency 5275(FIN)WaterResourcesConservation&DevelopmentFund 550,000
AgricultureWaterandDataEfficiency 5460(DAG)AgricultureResourceDevelopmentFund 450,000
AlgalBloomCyanotoxinTesting DedicatedCredits 84,800
BrandInspectionProgram 1033(DAG)UtahLivestockBrand&AntitheftAccount 800,000
IrrigationWaterTesting DedicatedCredits 18,200
PlantComplianceSpecialists DedicatedCredits 211,400
ProgramAdministrationandTestingforCurrentIndustrialHemp DedicatedCredits 50,000
Program
RegulatoryManagementSystem DedicatedCredits 500,000 300,000
107
SB155RetainedFunding 5480(ABC)AlcoholicBeverageControlLiquorControlFund 1,000,000
Auditor
FeeCollectionsforStateAuditorProfessionalServices DedicatedCredits 882,300
CapitolPreservationBoard
EventSupportSpecialist DedicatedCredits 66,500
Courts
ShiftFundingSourceforProvoCourtComplexfromRestricted 1445(JUD)StateCourtsComplexAccount 313,400
FundstoGeneralFunds
DrinkingWaterCertificationPrograms 2305DEQDrinkingWaterFees 106,400
WaterQualityStormwaterFees 2318DEQStormWaterPermits 142,500
IndigentDefenseCommission 1411(GOV)IndigentDefenseResourcesRestrictedAccount 1,505,000
Notary,Certification,andAuthenticationFees 2801SaleofServicesDedicatedCredits 311,300
AdjustSchoolReadinessFunds 1409(GOV)SchoolReadinessRestAcct 1,100
TourismMarketing 1403(GOV)TourismMarketingPerformanceAccount 1,500,000
Health
ToxicologyTestingforDrugFacilitatedSexualAssaults DedicatedCredits 105,800
HeritageandArts
BookmobileDedicatedCreditsReduction DedicatedCredits 100,600
DigitizationofArchivedRecords DedicatedCredits 92,200
HigherEducation
PerformancebasedFunding 2465(FIN)PerformanceFundingRestrictedAccount 16,083,600
HumanServices
CommunitybasedEmploymentServicesforPeoplewith Transfers 2,714,000
IntellectualDisabilities
DivisionofServicesforPeoplewithDisabilities(DSPD)WaitingList Transfers 2,316,500
148People
YouthinCustodyAgingintoDivisionofServicesforPeoplewith Transfers 16,719,600
Disabilities(DSPD)Services&AdditionalNeedsforDSPDService
Recipients
Insurance
HealthInsuranceActuaryProgram 1429(INS)HealthInsActuarialReviewRestrictedAccount 53,000
BailBondProgram 1420(INS)BailBondSuretyAdministrationAccount 10,600
NaturalResources
DWRFarmingtonBayNatureCenter 1170(DNR)WildlifeResourcesAccount 250,000
EndangeredSpeciesRecoveryProgramOffice 1142(DNR)SpeciesProtectionAccount 250,000
FFSLSovereignLandsPhragmitesRemoval 1185(DNR)SovereignLandsManagementAccount 500,000
ParksAntelopeIslandStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 750,000
ParksAsphaltRepaving 1157(DPR)StateParkFeesRestrictedAccount 1,250,000
ParksAutopayMachines 1157(DPR)StateParkFeesRestrictedAccount 200,000
ParksCoralPinkSandDunesStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 1,000,000
ParksCreateEchoStatePark 1157(DPR)StateParkFeesRestrictedAccount 2,000,000
ParksCurrentExpense 1157(DPR)StateParkFeesRestrictedAccount 500,000
ParksGunlockStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 500,000
ParksLodging 1157(DPR)StateParkFeesRestrictedAccount 500,000
ParksMirrorLakeSnowcatShed 1156(DPR)OffHighwayVehicleAccount 350,000
ParksPalisadeStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 350,000
ParksQuailCreekStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 500,000
ParksRestroomReplacement 1157(DPR)StateParkFeesRestrictedAccount 1,000,000
ParksSeasonalStaffandWages 1157(DPR)StateParkFeesRestrictedAccount 300,000
ParksWasatchMountainStateParkImprovements 1157(DPR)StateParkFeesRestrictedAccount 500,000
WaterResourcesDamSafetyUpgrades 5275(FIN)WaterResourcesConservation&DevelopmentFund 8,425,000
PublicEducation
ConsensusEnrollmentGrowth 2476(PED)CharterSchoolLevyAccount 1,739,600
ConsensusEnrollmentGrowth LocalRevenue 43,545,000
PublicSafety
AdjustDNARestrictedAccounttoAlignwithCollections 1250(DPS)DNASpecimenRestrictedAccount 1,342,100
HireNewPublicSafetyDispatchers 2818DPSDispatchServices 180,000
HonoringHeroes 1258(DPS)PublicSafetyHonoringHeroesRestrictedAcct 100,000
PeaceOfficer'sStandardsandTraining(POST)Shortfall 2855(DPS)UninsuredMotoristIdentificationRestrictedAccount 500,000
FireAcademy 1254(DPS)FireAcademySupportAccount 1,391,900
SchoolandInst.TrustFundOffice
FinancialSupportPersonnel 5496(TFO)School&InstTrustFundMgtAcct 36,700
SchoolandInst.TrustLandsAdmin.
RS2477RightofWayAnalyst 5495(TLA)LandGrantManagementFund 46,300
LandExchangeProgram 5495(TLA)LandGrantManagementFund 300,000
TaxCommission
LiquorDistributionAlcoholBeverage&SubstanceAbuse 1500(TAX)AlcoholicBev&SubAbuseEnforce&TreatmentRestAcc 449,700
Enforcement
Transportation
DesignatedSalesTax StateSalesTax 46,682,500
108
CANVASLearningManagementSystemK12Schools DedicatedCredits 1,900,000
PostsecondaryEducationDentalInsuranceDecrease DedicatedCredits 100
PostsecondaryEducationHealthInsuranceIncrease DedicatedCredits 2,200
PostsecondaryEducationWageandWagebasedBenefitsIncrease DedicatedCredits 6,500
WorkforceServices
AdjustmentsforCostAllocationModel 2115(DWS)NavajoRevitalizationFund 13,000
AdjustmentsforCostAllocationModel 2135(DWS)UintahBasinRevitalizationFund 5,000
AdjustmentsforCostAllocationModel 2151(DWS)QualifiedEmergencyFoodAgenciesFund 5,500
AdjustmentsforCostAllocationModel 5285(FIN)PermanentCommunityImpactLoanFund 1,000
AdjustmentsforCostAllocationModel 5429(DWS)OWHTFedHomeIncome 21,700
AdjustmentsforCostAllocationModel 5441(DWS)OWHTFLowIncomeHousingPI 19,200
FamilyPlanningMedicaidServices(ThreeyearPilot) Transfers 3,288,900
TalentReadyUtahandOtherJobGrowthInitiatives 1281(DWS)SpecialAdministrativeExpenseAccount 3,800,000
UnemploymentInsuranceSystemModernization 5110(DWS)UnemploymentCompensationFund 3,000,000
Compensation
OngoingFundingforFY2018CompensationAdjustments VariousSources 622,800
StateEmployee401kMatch VariousSources 2,631,500
StateEmployeeDentalInsuranceDecrease VariousSources 123,800
StateEmployeeHealthInsuranceIncrease VariousSources 4,014,000
StateEmployeeRetirementRateChange VariousSources 10,500
StateEmployeeTargetedWageandWagebasedBenefitsIncrease VariousSources 1,951,700
StateEmployeeWageandWagebasedBenefitsIncrease VariousSources 7,593,300

HigherEducationCompensation
PostsecondaryEducationDentalInsuranceDecrease VariousSources 100
PostsecondaryEducationHealthInsuranceIncrease VariousSources 2,200
PostsecondaryEducationWageandWagebasedBenefitsIncrease VariousSources 6,500
ISFRates
FacilitiesConstruction&ManagementISFAdjustments VariousSources 64,100
FinanceISFAdjustments VariousSources 23,600
FleetISFAdjustments VariousSources 49,600
HumanResourcesMgmt.ISFAdjustments VariousSources 86,400
LearningManagementSystem VariousSources 500
RiskMgmtLiabilityISFAdjustments VariousSources 37,900
RiskMgmt.PropertyISFAdjustments VariousSources 46,500
StateMailISFAdjustments VariousSources 59,700
TechnologyServicesISFAdjustments VariousSources 768,200
TotalFY2019RecommendedAdjustmentsfromRestrictedFundsandFeeCollections $12,269,200 $48,411,600
109
110
Table11FundingReallocations
OngoingandOnetimeReallocationsBetweenFundingSources,LineItems,orPrograms.TranserstoRestirctedFundsandAccountTransfersareshowinTable12.
DebtAccountantPosition
FHAADASFinanceAdministration DedicatedCredits $49,200
ReallocationofCooperativeContractingFundstoStateMailProgram
FNBCentralMailing DedicatedCredits 700,000
FNCCooperativeContracting DedicatedCredits 700,000
StateOfficeBuildingRemodeling
FAAADASExecutiveDirector 6080(DAS)GeneralServicesCooperativeContractMgmt 200,000
FNAADASGeneralServices DedicatedCredits 200,000
TransferCooperativeContractingfundstoStatePrintServicesProgram
FNCCooperativeContracting DedicatedCredits 300,000
FNFPrintServices DedicatedCredits 300,000
TransferWorkersCompensationfundstoRiskAutoprogram
FRBWorker`sCompensation WorkersCompensationPremiums 100,000
FRERiskManagementAuto WorkersCompensationPremiums 100,000
TransferWorkersCompensationFundstoRiskLiabilityprogram
FRBWorker`sCompensation WorkersCompensationPremiums 2,400,000
FRFRiskManagementLiability WorkersCompensationPremiums 2,400,000
Corrections
RedirectCorrectionsBudgetSavingstoPrisonRelocation
MAAADOCPrograms&Operations BeginningBalance 5,000,000
InmateMedicalForFY2018
MAAADOCPrograms&Operations BeginningBalance 500,000
MDAADOCMedicalServices BeginningBalance 500,000
JRISocialServicesDataCoordinationSystem
CBAAGOVOfficeofManagement&Budget 1000(GF)GeneralFundUnrestricted 950,000
InternationalReallocation
CMEBusinessOutreach&InternationalTrade 1000(GF)GeneralFundUnrestricted 250,000
CMFCorpRecruitment&BusServ 1000(GF)GeneralFundUnrestricted 250,000
SmallBusinessDev.Center(SBDC)
CMAAGOVEDBusinessDevelopment 1000(GF)GeneralFundUnrestricted 300,000
COMAGOVEDPassThrough 1000(GF)GeneralFundUnrestricted 300,000
Health
Reallocate2017GSHB130FundingtoCorrectAppropriation
LAAADOHExecutiveDirector 1000(GF)GeneralFundUnrestricted 15,100
LEAADOHDiseaseControl&Prevention 1000(GF)GeneralFundUnrestricted 15,100
ReallocateISFRateIncreaseFundingtoCorrectAppropriations
LFAADOHFamilyHealth&Preparedness 1000(GF)GeneralFundUnrestricted 6,300
LGAADOHMedicaidandHealthFinancing 1000(GF)GeneralFundUnrestricted 7,500
HigherEducation
BalanceAmongFundingSources
QBAAUOUEducation&General 1000(GF)GeneralFundUnrestricted 35,000,000
QBAAUOUEducation&General 2480(PED)EducationFund 35,000,000
FundTransfer
VBAAInsuranceDepartment 1427(INS)InsuranceFraudInvestigationAccount 1,147,100
VBAAInsuranceDepartment 2330(INS)InsuranceFraudVicRestitutionFund 1,147,100
NaturalResources
DivisionofForestry,FireandStateLandsPlanner
RDDDNRFFSLLandManagement 1185(DNR)SovereignLandsManagementAccount 70,000
RDHDNRFFSLProjectManagement 1185(DNR)SovereignLandsManagementAccount 70,000
PublicEducation
ConsensusEnrollmentGrowth
PPAAPEDBasicSchoolProgram BeginningBalance 2,556,100
PQAAPEDRelatedtoBasicPrograms BeginningBalance 2,556,100
IncreaseinLocalLevyGuarantee(EqualizationofLocalSchoolPropertyTaxes
PRAAPEDVoted&BoardLeewayPrograms BeginningBalance 10,200,000
LitigationLinereallocation
RXAAPublicLandsPolicyOffice 1321(FIN)ConstitutionalDefenseRestrictedAccount 15,600
RXGAPublicLandsPolicyOfficePublicLandsLitigation 1321(FIN)ConstitutionalDefenseRestrictedAccount 15,600
111
TaxCommission
DataSecurity,SystemSupport,Testing&Analysis
GAAATaxCommissionAdministration 1000(GF)GeneralFundUnrestricted 142,000
GAAATaxCommissionAdministration
1502(TAX)StateTaxCommissionAdministrativeChargeAccount 47,500
GAAATaxCommissionAdministration 2480(PED)EducationFund 168,000
MultiStateTaxCompactCosts
Reallocateprocessingefficiencies
GAAATaxCommissionAdministration 1502(TAX)StateTaxCommissionAdministrativeChargeAccount 51,100

TechnologyServices
JRISocialServicesDataCoordinationSystem
HQAADTSChiefInformationOfficer 1000(GF)GeneralFundUnrestricted 950,000
Treasurer
EAAAStateTreasurer DedicatedCredits 49,200
WorkforceServices
ConsolidationofDataAllianceFunding
NJBADWSOperations&Policy 1000(GF)GeneralFundUnrestricted 955,000
NNAANNAADWSWorkforceResearch&Analysis 1000(GF)GeneralFundUnrestricted 955,000
ReallocateBalancestoPamelaAtkinsonHomelessTrustFundandOperationRioGrande
NKAADWSGeneralAssistance 1000(GF)GeneralFundUnrestricted 1,160,200
NRAADWSOperationRioGrande 1000(GF)GeneralFundUnrestricted 580,100
NSAADWSHCDDivision 1053(DWS)PamelaAtkinsonHomelessAccount 580,100
TotalFY2018Reallocations $5,000,000
FHAADASFinanceAdministration DedicatedCredits $98,500
CapitalBudget
UniversityofUtahMedicalEducationandDiscoveryRehabilitationHospital
FVAADASDFCMCapitalProgram 2480(PED)EducationFund 20,000,000
FWBADASDFCMCapitalDevelopmentsHigherEducation 2480(PED)EducationFund 20,000,000
Courts
UpgradeMainServer
BAEJuvenileCourts BeginningBalance 350,000
BAKDataProcessing BeginningBalance 350,000
InternationalReallocation
CMEBusinessOutreach&InternationalTrade 1000(GF)GeneralFundUnrestricted 250,000
CMFCorpRecruitment&BusServ 1000(GF)GeneralFundUnrestricted 250,000
SmallBusinessDev.Center(SBDC)
CMAAGOVEDBusinessDevelopment 1000(GF)GeneralFundUnrestricted 300,000
COMAGOVEDPassThrough 1000(GF)GeneralFundUnrestricted 300,000
Health
Children'sHealthInsuranceProgram(CHIP)EnhancedFederalMatch
LIAADOHMedicaidServices 1320(FIN)TobaccoSettlementRestrictedAccount 10,452,900

LPAADOHChildren`sHealthInsurance 1320(FIN)TobaccoSettlementRestrictedAccount 10,452,900
Reallocate2017GSHB130FundingtoCorrectAppropriation
ReallocateISFRateIncreaseFundingtoCorrectAppropriations
LFAADOHFamilyHealth&Preparedness 1000(GF)GeneralFundUnrestricted 6,300
LGAADOHMedicaidandHealthFinancing 1000(GF)GeneralFundUnrestricted 7,500
112
HigherEducation
BalanceAmongFundingSources
QBAAUOUEducation&General 1000(GF)GeneralFundUnrestricted 2,000,000 2,000,000
QBAAUOUEducation&General 2480(PED)EducationFund 2,000,000 2,000,000
Engineering&ComputerTechnologyInitiative
QAEARGTEconomicDevelopment 2480(PED)EducationFund 4,000,000
QBAAUOUEducation&General 2480(PED)EducationFund 1,540,000
QCAAUSUEducation&General 2480(PED)EducationFund 900,000
QDAAWSUEducation&General 2480(PED)EducationFund 840,000
QEAASUUEducation&General 2480(PED)EducationFund 60,000
QFAASNOWEducation&General 2480(PED)EducationFund 60,000
QGAADSUEducation&General 2480(PED)EducationFund 60,000
QJAAUVUEducation&General 2480(PED)EducationFund 480,000
QKAASLCCEducation&General 2480(PED)EducationFund 60,000
UtahStateUniversityReallocation1
QCFAUSUAgricultureExperimentStation 2480(PED)EducationFund 51,700
QCGAUSUCooperativeExtensionService 2480(PED)EducationFund 54,500
QCAUSUEducation&General 2480(PED)EducationFund 6,700
QCEUSUOperations&Maintenance 2480(PED)EducationFund 6,700
QCLAUSUEasternEducation&General 2480(PED)EducationFund 700
QCSAUSUTooeleCEC 2480(PED)EducationFund 1,200
QCRAUSUBrighamCityCEC 2480(PED)EducationFund 128,600
QCAAUSUEducation&General 2480(PED)EducationFund 1,142,400
QCRAUSUBrighamCityCEC 2480(PED)EducationFund 1,142,400
QCAAUSUEducation&General 1000(GF)GeneralFundUnrestricted 53,700
QCCAUSUWaterResearchLab 1000(GF)GeneralFundUnrestricted 20,300
QCFAUSUAgricultureExperimentStation 2480(PED)EducationFund 26,100
QCGAUSUCooperativeExtensionService 2480(PED)EducationFund 41,400
QCHAUSUUintahBasinCEC 1000(GF)GeneralFundUnrestricted 14,900
QCJAUSUSoutheasternUtahCEC 1000(GF)GeneralFundUnrestricted 10,400
QCLAUSUEasternEducation&General 2480(PED)EducationFund 19,200
QCQAUSUBlandingCampus 1000(GF)GeneralFundUnrestricted 8,100
Insurance
TechnicalAdjustment 1423(INS)CaptiveInsuranceRestrictedAcct 250,000
TechnicalAdjustment 1428(INS)InsuranceDepartmentRestrictedAccount 250,000
NaturalResources
DivisionofForestry,FireandStateLandsPlanner
RDDDNRFFSLLandManagement 1185(DNR)SovereignLandsManagementAccount 70,000
RDHDNRFFSLProjectManagement 1185(DNR)SovereignLandsManagementAccount 70,000
PublicEducation
BeverleyTaylorSorensonArtsLearningProgram
PPAAPEDBasicSchoolProgram BeginningBalance 625,600
PQAAPEDRelatedtoBasicPrograms BeginningBalance 625,600
TeacherSupplies&Materials
PQAAPEDRelatedtoBasicPrograms BeginningBalance 1,000,000
UtahFutures
LitigationLinereallocation
RXAAPublicLandsPolicyOffice 1321(FIN)ConstitutionalDefenseRestrictedAccount 15,600
RXGAPublicLandsPolicyOfficePublicLandsLitigation 1321(FIN)ConstitutionalDefenseRestrictedAccount 15,600
PublicSafety
EquipmentforHighwayPatrol
JAACommissioner`sOffice BeginningBalance 1,349,000
JHKUHPTechnologyServices BeginningBalance 1,349,000
HighwayPatrolOvertime
JAACommissioner`sOffice BeginningBalance 1,000,000
JHBUHPFieldOperations BeginningBalance 1,000,000
113
TaxCommission
DataSecurity,SystemSupport,Testing&Analysis
MultiStateTaxCompactCosts
Reallocateprocessingefficiencies
Transportation
IncidentManagementTeamPersonnelandEquipment
XDAADOTOperations/Maintenance 2800(DOT)TransportationFundUnrestricted 1,650,000 2,000,000
XEAADOTConstructionManagement 2800(DOT)TransportationFundUnrestricted 1,650,000 2,000,000
TrafficOperationsCenterPersonnel
XDAADOTOperations/Maintenance 2800(DOT)TransportationFundUnrestricted 300,000
XEAADOTConstructionManagement 2800(DOT)TransportationFundUnrestricted 300,000
Treasurer
EAAAStateTreasurer DedicatedCredits 98,500
DigitalTeachingandLearningFTE
QNDAUtahEducationandTelehealthNetwork 2480(PED)EducationFund 160,000
QOAAUETNDigitalTeachingandLearningProgram 2480(PED)EducationFund 160,000
UtahFutures
QNDAUtahEducationandTelehealthNetwork BeginningBalance 2,000,000
WorkforceServices
ConsolidationofDataAllianceFunding
NJBADWSOperations&Policy 1000(GF)GeneralFundUnrestricted 955,000
NNAANNAADWSWorkforceResearch&Analysis 1000(GF)GeneralFundUnrestricted 955,000
ReallocateBalancestoPamelaAtkinsonHomelessTrustFundandOperationRioGrande
NSAADWSHCDDivision 1053(DWS)PamelaAtkinsonHomelessAccount 580,100
TotalFY2019Reallocations $580,100 $0
114

GovernorsOfficeofManagementandBudget
Executive Directors Office

KristenCox,ExecutiveDirector
kristencox@utah.gov,8015381705
LorieDavis,AdministrativeCoordinator
lorie@utah.gov,8015381705
ChrisBoone,SupportServicesSpecialist
cboone@utah.gov,8015381027
Budget and Policy Office Office of Operational Excellence
PhilDean,BudgetDirectorandChiefEconomist SteveCuthbert,Director,OperationalExcellence
phildean@utah.gov,8015381714 scuthbert@utah.gov,8015381028
NateTalley,BudgetandPolicyManager GregGardner,Director,OperationalExcellence
natetalley@utah.gov,8015381556 greggardner@utah.gov,8015381502
DuncanEvans,BudgetManager StaciGhneim,OperationalExcellenceConsultant
devans@utah.gov,8015381592 sghneim@utah.gov,8015381521
JamesBowman,FiscalOperationsSpecialist LeAnnHatfield,InternalAuditor
jbowman@utah.gov,8015381571 lhatfield@utah.gov
EvanCurtis,StatePlanningCoordinator RickLittle,DirectorofPerformanceMeasures
ecurtis@utah.gov,8015381427 ricklittle@utah.gov,8015381516
PeterDonner,Budget,Revenue,andPolicyAnalyst
peterdonner@utah.gov,8015381529 School Readiness Program
MirandaJones,FiscalOperationsSpecialist EmmaMoench,HQPreschoolAdministrator
mirandajones@utah.gov,8015381703 emmamoench@utah.gov,4437086805
KenMatthews,FiscalOperationsSpecialist
kmatthews@utah.gov,8015381149
DavidWalsh,Budget,Revenue,andPolicyAnalyst
dwalsh@utah.gov,8015381058
RichieWilcox,FiscalOperationsSpecialist
rwilcox@utah.gov,8015381702
JacobWright,FiscalOperationsSpecialist
jacobwright@utah.gov,8015381573
Colby Oliverson,Intern
115

FY 2019 Utah Governor&#39;s Budget Recommendations

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FY 2019 Utah Governor&#39;s Budget Recommendations

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BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS

BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS BUILDING ON SUCCESS

Life Elevated 2020

Affordable, Thriving Communities Equitable & Competitive Revenue

$276 million -- Education -- $9 billion

Air Quality Water Transportation

Social Services Tax Modernization SUCCESS

Rural Utah Capital Development

BUDGET & POLICY BRIEF

Identifying and achieving ambitious goals for Utahs continue prosperity

CALL TO ACTION stewardship of natural resources, prudent

Utah is Attractive to Businesses and Individuals and Faces Rapid Growth

LIFE ELEVATED 2020: AN INITIATIVE the highestvalue strategies. Through a

Utah is known for having communities where

will require a dedicated, longterm commitment

the strategies that return the highest yields in

ELEVATING UTAHS HIGH QUALITY an equitable and competitive revenue

has been the proliferation of General Fund

growing state revenues to strategically invest in

students at risk of academic failure and $25

accountability dashboard, should be expected.

of $1 billion in new ongoing revenue for public

infrastructure, including transportation and

and increasingly incorporating the true costs of

SUCCESS: REAL RESULTS stateagenciesexceededtheGovernorsgoaland

FIGURE 1. STATEWIDE SUCCESS FRAMEWORK RESULTS

create measurable agency improvement

wages. This dynamic has many contributing

USTC is comprised of eight institutions:

bicycle paths. With the states population

Encouraging busbased transit development

INTRODUCTION While user fees are appropriate in many

also tends to minimize the damage to the

As the tax base narrows, pressure increases for

collections. For this reason, the tax

(good schools, roads, public safety), but many

PRUDENT FISCAL MANAGEMENT

HIGHLIGHTS Under current law, 39 percent of new sales and

state tax revenues outside of the General Fund

addition, road usage fees that directly charge

FIGURE 2 SALES TAX EARMARKS AND GENERAL FUND REVENUES

General Fund Earmarks

Insurance Premium Tax:

General Fund Set-Asides

HIGHLIGHTS educator compensation, student counseling,

HIGHLIGHTS students over FY 2017. Nearly 7,700 additional

TotalMinimumSchoolProgramExpenditures: $3,825,549,600 $4,093,382,300 $4,355,883,400

RevenueSources Amount Amount Changes Amount

Governor'sOfficeofManagement&Budget DateModified: 12/9/2017

HIGHLIGHTS (JRI), as enacted by House Bill 348 of the 2015

sentencing guidelines and actual sentencing

implementing a new evidencebased

HIGHLIGHTS population of Utah increased by over 600,000

Over the next year and where possible, the

Additionally, Utah recently received $2.3 million

following areas with heavy backlogs and unmet

HIGHLIGHTS accurate and reliable data is available to

Of theestimated 18 percentstatewide total relatively minor increases in true agricultural

supply over the coming decades as Utahs

dramatically based on water usage. More

taxes in favor of water user fees in order to

through public processes, including public

HIGHLIGHTS with project construction expected to begin in

After issuing bonds during the Great Recession,

FY 2019 Utah Governor's Budget Recommendations

FY 2019 Utah Governor's Budget Recommendations