Governor Herbert Unveils Budget

12.11.2009 by Elizabeth Ziegler

(KCPW News) Governor Gary Herbert unveiled his first state budget proposal today. As expected, it doesn’t include any tax increases and it attempts to spare public education, higher education, public safety and some health and human services programs from further budget cuts. However, it also requires all state agencies to immediately cut spending by three percent, about $39 million. Herbert says the budget reflects the fact that the state is in an economic downturn and angling to be among the first states to recover.

“I believe it is rational, I believe it is reasonable, and more importantly I believe it is responsible,” Herbert says. “All factors being considered, what you want to have is a responsible budget as we move forward.”

Herbert’s proposal projects the state’s budget shortfall will be at least $150 million less than expected. So instead of assuming an $850 million to $1 billion budget shortfall, Herbert says new, more accurate numbers indicate there’s only a $700 million shortfall. He says this is because state revenues are expected to bounce back in 2011 by about 4.5 percent. But Herbert’s budget also recognizes that right now state revenues are projected to continue to fall to about four percent below anticipated levels.

Herbert’s proposal to bridge the budget shortfall includes using about a third of the state’s Rainy Day Fund, changing some tax policies, and bonding for road projects. While Herbert’s budget does not include explicit tax increases, he declined to say whether he would veto tax hikes passed by the Legislature.

“Oh, it’s way too early to be talking about veto,” Herbert says. “My gosh, I’m just rolling out the budget now. So, I think we’ll have ongoing negotiations, what will be apparent to hopefully everybody is that we can get through this without a tax increase.”

While the governor makes budget recommendations, the Legislature ultimately approves the state budget.