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Budget of the State of Utah, 2017-2018

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O L F A J C. B D B S U R A 2017‐2018 A R A U S L 2017 G S I: 2016 3 S S 2016 4 S S S J W. S R D S C‐C E A C R J 30, 2017 Foreword This report is submitted in compliance with Utah Code Annotated 36‐12‐13(2)(k), which requires the Legislative Fiscal Analyst “to prepare, after each session of the Legislature, a summary showing the effect of the final legislative program on the financial condition of the state.” Detailed information on individual state programs is available in the Compendium of Budget Information (COBI) for each appropriations subcommittee. COBIs can be accessed on the internet at cobi.utah.gov i Addendum After publication of this report, editors discovered that its underlying data overstate FY 2017 appropriations from the Education Fund by $21,111,400 and understate appropriations from the General Fund by the same amount. House Bill 325, “Office of Rehabilitation Services Amendments,” 2016 General Session, moved the Utah State Office of Rehabilitation from the State Board of Education to the Department of Workforce Services. The bill included a reduction in appropriations from the Education Fund of $21,111,400 and an increase in appropriations from the General Fund of $21,111,400. The original May 2017 publication of this report did not reflect that change in funding sources. The editors have corrected this FY 2017 difference. iii 2017‐2018 BUDGET of the STATE OF UTAH and RELATED APPROPRIATIONS A Report on the Actions of the Utah State Legislature 2017 General Session Including: 2016 3rd Special Session 2016 4th Special Session Senator Jerry W. Stevenson Representative Dean Sanpei Co‐Chairs, Executive Appropriations Committee Office of the Legislative Fiscal Analyst Jonathan C. Ball Legislative Fiscal Analyst Revised June 30, 2017 v Table of Contents Statewide Summary ........................................................................................................................................................... 1 Business, Economic Development, and Labor ................................................................................................................. 31 Executive Offices and Criminal Justice ............................................................................................................................. 83 Higher Education ........................................................................................................................................................... 137 Infrastructure and General Government ....................................................................................................................... 181 Natural Resources, Agriculture, and Environmental Quality ......................................................................................... 231 Public Education ............................................................................................................................................................ 287 Social Services ................................................................................................................................................................ 325 Retirement and Independent Entities ........................................................................................................................... 393 Executive Appropriations ............................................................................................................................................... 409 Glossary ......................................................................................................................................................................... 433 vii S S Execuve Appropriaons Senators Representaves Jerry Stevenson, Chair Dean Sanpei, Chair Kevin Van Tassell, Vice‐ Brad Last, Vice‐Chair Chair Wayne Niederhauser Gregory Hughes Stuart Adams Joel Briscoe Gene Davis Francis Gibson Luz Escamilla Sandra Hollins Jani Iwamoto Brian King Peter Knudson John Knotwell Karen Mayne Angela Romero Ralph Okerlund Brad Wilson Staff Jonathan Ball Steven Allred Budget of the State of Utah Statewide Summary STATEWIDE SUMMARY Legislators had at their disposal $372 million in new ongoing revenue growth and $13 million in Utah's fiscal year (FY) 2018 operating and capital additional one‐time collections from revised current budget is $16.2 billion from all sources. That is a 3.3 year revenue estimates. To that revenue they added percent increase over revised FY 2017 estimates of $80 million in program reductions, $27 million in $15.6 billion and 4.7 percent more than the original fund balances and reserves, and $7 million in new FY 2017 budget of $15.4 billion. Utah’s current year revenue. They allocated this new money as shown in FY 2017 budget from all sources increased slightly Figure 2. during the 2016 Third Special Session, 2016 Fourth Special Session, and 2017 General Session – from $15.4 billion to $15.6 billion – due to better estimates of federal funds used in transportation and Workforce Services offset by lower than expected growth in Medicaid. Economists expect that the State will collect $6.6 billion in discretionary General and Education Fund (GF/EF) revenue in FY 2018. Using that revenue and $57.5 million in resources reserved from the prior year, legislators balanced the State's FY 2018 GF/EF 1 budget at $6.7 billion, up 4.2 percent. They Figure 2 – Allocation of New Discretionary Funds, 2017 decreased GF/EF appropriations slightly in FY 2017 – General Session by around $7.0 million. Current year changes were due to lower than expected Medicaid cost growth Education spending accounted for the largest share offset by teacher salary supplements for additional of new money appropriated during the 2017 General teachers hired in the 2016‐17 school year as well as Session. Of the available $498 million statewide, infrastructure investments made in the 2016 Third lawmakers utilized more than two‐thirds ($342 and Fourth Special Sessions. million) to support public and higher education. Absent budget reallocations, public and higher Tables showing statewide appropriations and education received 89 percent of the Session’s revenue detail begin on page nine of this report. $385 million in revenue growth. Some of the education‐related General and Education Fund increases include: $115.5 million for a 4.0 percent increase in the value of the Weighted Pupil Unit to $3,311; $64.0 million ongoing and $4.0 million one‐time to fund anticipated fall 2017 growth in the number of weighted pupil units by 1.6 percent; $10.5 million one‐time for construction of a new building for the Utah Schools for the Deaf and the Blind; $7.1 million ongoing and $0.4 million one‐time for instructional technology; Figure 1 – State of Utah Budget History $5.0 million for teacher supplies and materials; 1 See Utah’s balanced budget detail in Table 11. Office of the Legislative Fiscal Analyst 1 Statewide Summary Budget of the State of Utah $2.6 million to eliminate teacher licensing fees; ($14.6 million) one‐time from delayed $1.9 million ongoing and $3.0 million one‐time implementation of health coverage for for Utah Education and Telehealth Network uninsured individuals in the poverty gap (H.B. software and infrastructure; 437, 2016 GS); $5.0 million for higher education (HED) and $3.0 $4.0 million ongoing and ($10.8 million) one‐ million for Utah College of Applied Technology time for Medicaid caseload growth, inflation, (UCAT) market demand programs; and program changes; $8.0 million for Regents’ Scholarships; $11.4 million for local mental health Medicaid $7.2 million for HED and $0.2 million for UCAT matching funds; tuition mitigation; $6.0 million for behavioral health treatment of $6.2 million ongoing and $1.5 million one‐time those in the Justice Reform population; to replace lost Tobacco Settlement funds and $10.6 million one‐time for Homeless and return to pre‐2008 levels of state funding for the Housing Reform initiatives (H.B. 441, 2017 GS); Huntsman Cancer Institute via the University of $1.4 million ongoing and $1.9 million one‐time Utah Cancer Research and Treatment line item; for Affordable Housing (H.B. 36, 2017 GS); $16.5 million ongoing and ($10.0 million) one‐ $3.0 million for tourism marketing; time for HED performance funding (S.B. 117, $1.5 million for motion picture incentives; 2017 GS); $1.4 million one‐time for rail manufacturing $3.1 million for student athlete graduation economic development incentives; improvement initiatives; $2.5 million ongoing and ($1.4 million) one‐time $1.0 million ongoing and $1.0 million one‐time for a clean natural gas/alternative fuel transit for UCAT equipment; and district; $51.5 million one‐time for new HED and UCAT $0.2 million ongoing and $1.3 million one‐time buildings including $14.0 million for the Weber for air quality monitoring; State Social Sciences building, $10.0 million for $1.2 million one‐time for state fair operating the Utah State Biological Sciences building, expenses; $10.0 million for Utah Valley’s Performing Arts $0.9 million ongoing and $1.8 million one‐time Center, $8.0 million for the Dixie State Human for Jail Contracting, Reimbursement, and Performance Center, $5.0 million for the Treatment; and University of Utah’s Rehabilitation Hospital, and $2.4 million ongoing and $0.4 million one‐time $4.5 million for the Uintah Basin ATC Welding for Salt Lake County jail bed funding. Technology Building. Future year debt service savings and ongoing appropriations must be Details of these resources can be
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