The Governor’s Office, Utah Senate and House of Representatives released revenue numbers for state fiscal year (FY) 2022-23. Utah is leading the nation in economic performance and continues to exceed expectations. Though Utah’s economy is strong, there are significant factors, including federal stimulus wind down, that may dampen revenue gains.
Updated budget estimates indicate an additional $432 million in one-time revenue in FY22 and an additional $383 million in ongoing funds in FY23. Of the newly projected available ongoing revenues, about 70% are in the Education Fund, and 30% are in the General Fund. The strong economy is the reason for the increase in revenue though there is still heightened uncertainty regarding the future.
While February’s new revenue growth reflects the ongoing momentum of the state’s economic recovery, Utah has a history of planning for future downturns and risks. Fiscally conservative policies and forward-thinking rainy-day funds enabled the state to successfully navigate economic uncertainties, provide a $193 million tax cut and continue to fund education and social services at historic levels.
During the 2022 General Session, policymakers have an additional $617 million in one-time and $429 million in ongoing money in the general fund, and an additional $1.68 billion one-time and $1.07 billion ongoing in the education fund to allocate.
“Utah’s robust economy continues to roar and these additional revenues give us a unique opportunity to improve lives as well as help secure Utah’s future,” said Gov. Cox. “Still, given the current inflationary pressures and global uncertainties, we must proceed with caution and approach spending wisely. Supporting public education and upskilling, infrastructure improvements, water investments, housing and savings — all of these will strengthen the state in both the short-term and long-term.”
State leaders are looking to make investments that will ensure Utah continues to be the best place to live, work, learn and play – not only now, but for generations to come.
“For the past two years, we have been able to cut taxes,” said President J. Stuart Adams. “While this is a great step toward giving money back to hardworking Utahns, rising inflation is threatening our way of life. We are taking steps to ensure our state can weather any financial or economic storm. Our budget prioritizes items that will better prepare us for future unknowns, including generational investments in transportation, water, infrastructure and education. We will continue to follow Utah’s long-standing pattern of fiscal prudence, knowing it will serve coming generations of Utahns.”
The Legislature will continue to fund the state’s critical needs while evaluating current and proposed spending with a focus on long-term fiscal sustainability.
“While I remain optimistic Utah’s economy will continue to flourish, we must be careful to not rely on one-time money to fund ongoing needs,” said Speaker Brad Wilson. “The Legislature has demonstrated a strong commitment to fiscal responsibility by allowing Utahns to keep more of their hard earned money, increasing funding for education, and investing in significant projects that will have generational impacts. We will continue to make strategic investments that benefit Utahns now and for years to come.”
General Fund revenue projections:
$128 million newly available one-time revenue in FY 2022.
$123 million newly available ongoing revenue in FY 2023.
Education Fund revenue projections:
$304 million newly available one-time revenue in FY 2022.
$261 million newly available ongoing revenue in FY 2023.