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FY 2014 Appropriations Report

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O L F A J C. B D 2013‐2014 AÖÖÙÊÖÙ®ã®ÊÄÝ RÖÊÙã U S L 2013 G S S L W. H R M R. B C‐C E A C LFA LEGISLATIVE FISCAL ANALYST M 2013 Foreword This report is submitted in compliance with Utah Code Annotated 36‐12‐13(2)(j), 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 le.utah.gov. 2013‐2014 APPROPRIATIONS REPORT Utah State Legislature 2013 General Session Senator Lyle W. Hillyard Representative Melvin R. Brown Co‐chairs, Executive Appropriations Committee Office of the Legislative Fiscal Analyst Jonathan C. Ball Legislative Fiscal Analyst Table of Contents Statewide Summary........................................................................................................................................................... 1 Business, Economic Development, and Labor ................................................................................................................. 29 Executive Offices and Criminal Justice ............................................................................................................................. 71 Higher Education ........................................................................................................................................................... 117 Infrastructure and General Government ....................................................................................................................... 149 Natural Resources, Agriculture, and Environmental Quality ......................................................................................... 185 Public Education ............................................................................................................................................................ 227 Social Services ................................................................................................................................................................ 253 Retirement and Independent Entities ........................................................................................................................... 295 Executive Appropriations .............................................................................................................................................. 309 Glossary ......................................................................................................................................................................... 329 S S Execuve Appropriaons Senators Representaves Lyle Hillyard, Co‐Chair Melvin Brown, Co‐Chair Jerry Stevenson, Vice‐ Brad Wilson, Vice‐Chair Chair Rebecca Lockhart Wayne Niederhauser Joel Briscoe Stuart Adams Rebecca Chavez‐Houck Gene Davis Tim Cosgrove Patricia Jones Brad Dee Peter Knudson Gregory Hughes Karen Mayne Don Ipson Ralph Okerlund Jennifer Seelig Luz Robles Staff Jonathan Ball Steven Allred Brian Fay FY 2013 - 2014 Appropriations Report Statewide Summary STATEWIDE SUMMARY Legislators avoided overall budget increases in Social Services due to an overestimate of growth needs in Utah’s total budget from all sources is $12.71 billion in last year’s budget. FY 2013 and $12.89 billion in FY 2014 – up 1.8 percent in FY 2013 and another 1.2 percent in FY 2014. Rising Figure 2 shows how legislators allocated new revenue projections supported discretionary General discretionary resources (General and Education funds). and Education funds budgets of $5.13 billion in FY Budget details by subcommittee are included in the 2013 and $5.47 billion in FY 2014. Ongoing base following chapters. Tables showing statewide revenue budgets from the General and Education funds, net of and appropriations detail begin on page 6. one‐time investments, increased by $241 million (4.8 percent) from FY 2013 to FY 2014.1 Figure 2: Where the New Money Goes Executive ($ in millions) Offices & Business, Criminal Justice Economic Figure 1 ‐ State of Utah $34.8 Development, Budget History 8% & Labor Public $44.2 Retirement & Education 9% Independent $152.9 $14,000 Entities 32% $1.4 $12,000 Natural 0% $10,000 All Funds Resources, Higher Agriculture, & $8,000 Education Infrastructure & Environmental Millions $108.8 General Quality $6,000 23% Government Executive $24.7 $105.4 $4,000 Appropriations 5% Gen/Ed 22% * Social Services $2.2 $2,000 Funds ($16.4) 1% $0 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 REVENUE Utah employs a consensus revenue forecasting A $46 million surplus from FY 2012 combined with a process. Economists and budget analysts from the 5.4 percent increase in ongoing revenue estimates and Executive and Legislative branches of government other available one‐time money afforded legislators work with experts from the private sector and around $475 million in new ongoing and one‐time academia to develop common assumptions used for discretionary sources. forecasting. The Governor’s Office of Management Public and higher education received the largest slice and Budget and Legislative Fiscal Analyst then agree of new money – 55 percent. Including education upon estimated revenue. initiatives appropriated outside the education The State’s main revenue sources are the sales tax appropriations subcommittees, more than 70 percent supported General Fund and the income tax based of new revenue benefitted schools, colleges, and Education Fund. Other major sources are federal universities. Increased cash for building maintenance funds, the gas tax driven Transportation Fund, and construction accounted for 22 percent of new dedicated credits (fee for service revenue), local General and Education funds. Economic development revenue for education, and fee revenue. Figure 3 projects, including the higher education USTAR shows how these sources make up the total amount. program and joint higher/public education STEM initiative, garnered nine percent of new money. Prison and jail initiatives, along with payment of lawsuit settlements, among other law enforcement initiatives, took another eight percent of the new funds. 1 Between the 2012 and 2013 edition of this report, the Utah Legislature, Governor’s Office of Management and Budget, and Division of Finance adopted common reporting criteria that recategorized certain appropriations. Most notably, about $226 million associated with the Unemployment Compensation Fund was moved from the operating budget and is now shown in Enterprise Funds on Table 12. Office of the Legislative Fiscal Analyst 3 FY 2013 - 2014 Appropriations Report Statewide Summary Figure 3: FY 2014 Budget by Source1 General and Education funds declined by $27.69 million for FY 2013. That net decrease is largely Other General Fund 19% related to the previously mentioned overestimate of 18% Medicaid growth. Dedicated Legislators slightly reduced a deposit to Rainy Day Credits 9% Funds approved last General Session. What was Transportation previously an $11 million appropriated deposit was Fund Education Fund 2.8% 24% decreased by $4.4 million to $6.6 million. The difference was used to pay lawsuit settlements. Federal Funds 27% 1. Operatingand capital budget including expendable funds and accounts. Does not include proprietary, fiduciary, and capital projects funds. Figure 4 Rainy Day Fund Status $500 During the General Session the Legislature adopted $450 consensus ongoing FY 2014 General and Education $400 $350 Fund revenue estimates of $5.24 billion. This $300 Millions $250 $235 $230 represents a 5.4 percent increase from the original FY $200 $143 $123 $194 $144 $150 $150 $41 $171 $189 $105 $110 2013 estimate of $4.98 billion and a 2.9 percent $100 $132 $133 $134 $13 $105 $123 increase from the state’s revised FY 2013 target of $50 $106 $0 $53 $5.09 billion. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year One‐time funding sources and legislation approved General Education during the 2013 General Session modify the consensus forecast. The total of all sources – including beginning Figure 5 graphically displays the allocation of total balances, one‐time funds, and legislative changes – is funding among areas of expenditure. Figure 6 shows expected to be $5.13 billion for FY 2013 and $5.48 the same but for only General and Education Funds. billion for FY 2014. Detailed presentations of these figures can be found in Tables 1 through 6 at the end of this chapter. See Tables 7 through 11 at the end of this chapter for more detail on revenue. Table 8 provides specifics Figure 5: FY 2014 Budget by Area1 about legislative changes impacting revenue, while Law Enforcement Table 9 shows one‐time sources used to balance the 5% General Gov't Public budget. 7% Education Transportation 30% 7% APPROPRIATIONS Debt Service 4% The Legislature approved $14.2 billion in Capital Facilities appropriations from all sources for all purposes in FY 1.4% 2014. Adjusting for account deposits, loan funds, Higher certain enterprise funds, internal service funds, and Education 12% capital projects appropriations, Utah’s operating and Social Services 34% capital budget – including appropriations to 1. Operating and capital budget including expendable funds and accounts. Does not include proprietary, fiduciary, and capital projects funds. expendable funds and accounts ‐ is $12.98 billion for FY 2014. See Tables 1 and 2 for more detail. Of
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