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FY 2012 Revised $12,809,179,154 Economic Expansion Reflected in 6% Discretionary Revenue State Funds $4,829,948,241 FY 2013 Appropriated $12,953,898,600 Growth

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FY 2012 Revised $12,809,179,154 Economic Expansion Reflected in 6% Discretionary Revenue State Funds $4,829,948,241 FY 2013 Appropriated $12,953,898,600 Growth Utah Legislature 2012 General Session State Budget Overview Appropriations Summary & Budget Highlights 1 Total Budget Summary FY 2011 Actual $12,488,078,536 State Funds $4,710,359,336 Utah continues to lead the nation into prosperity with projected FY 2012 Revised $12,809,179,154 economic expansion reflected in 6% discretionary revenue State Funds $4,829,948,241 FY 2013 Appropriated $12,953,898,600 growth. Approximately $450 million in new ongoing and one‐ State Funds $5,092,979,300 time collections allowed for targeted investment in education, Percent Change FY11/FY12 Rev 2.6% social services, and law enforcement. Legislators allocated more State Fund Increase/(Decrease) 2.5% than $175 million (39%) to public schools ($117 million); higher Percent Change FY12 Rev/FY13 1.1% State Fund Increase/(Decrease) 5.4% education operations ($32 million); and higher education capital ($27 million). Social Services including Medicaid received 34% of State of Utah Budget History new available revenue ($152 million). Funding for law enforce‐ $14,000,000 ment also increased ($42 million) – including resources to put 20 $12,000,000 more troopers on Utah highways. $10,000,000 $8,000,000 Lawmakers funded the cost of new public education students as $6,000,000 $4,000,000 reported by the State Office of Education. They provided for a Funds (in All thousands) $2,000,000 $0 1.15% increase in the value of the Weighted Pupil Unit. Policy‐ 2009 Actual 2010 Actual 2011 Actual 2012 2013 Approp Revised makers also funded retirement costs for state employees, and Fiscal Year appropriated funds equivalent to a 1% salary increase in higher education institutions and state agencies. They expanded re‐ Total Budget by Revenue Source, FY 2013 Education Fund sources for capital improvements from 0.5% of asset value to General Fund 23% 0.84%. They appropriated $11 million into the state’s rainy day 16% funds – on top of the $28 million automatically deposited. The Legislature enacted a number of tax policies, including: HB 35, Extension of the Recycling Market Development Zone Federal Funds Other 27% Tax Credits, extends the current recycling market develop‐ 22% Dedicated Transportation ment zone tax credit to 2021, reducing income and corpo‐ Credits Fund 8% 4% rate tax liability by $2.1 million annually. HB 250, Tax Credit for Dependent with Disability, authorizes Total Budget by Area of Expenditure, FY 2013 Public Social Services a nonrefundable tax credit for a disabled dependent adult or Education 35% 28% child, reducing income tax liability by $765,000 in FY 2013 and $781,000 in FY 2014. HB 312, Veteran Employment Tax Credit, authorizes a nonre‐ fundable corporate and individual income tax credit for em‐ Higher Education Capital Facilities 11% ploying a recently deployed veteran who is eligible to collect Law 1% Enforcement General Gov't Transportation Debt Service or has recently exhausted unemployment benefits, 4% 8% 9% 4% Members of the Executive Appropriations Committee Senators Representatives Lyle W. Hillyard, Co‐Chair Patricia W. Jones Melvin R. Brown, Co‐Chair Jennifer M. Seelig Kevin T. Van Tassel, Vice‐Chair Peter C. Knudson John Dougall, Vice‐Chair Rebecca D. Lockhart Benjamin M. McAdams Ross I. Romero Brad L. Dee Ronda Rudd Menlove Karen W. Morgan Scott K. Jenkins Brian S. King Michael G. Waddoups Wayne L. Niederhauser Christine F. Watkins Staff: David Litvack Jonathan C. Ball LFA Gregory H. Hughes Steven M. Allred LEGISL ATIVE FISCAL ANALYST April 12, 2012 JONATHAN C. BALL DIRECTOR 1 Total budget excluding fund and account deposits, revolving loan fund appropriations, and certain enterprise funds. See last page of this publication for details. 1 State Budget Overview reducing tax liability by $86,700 in FY 2013 and creases one‐time revenue by $3.3 million in FY $173,500 in FY 2014. 2013. HB 365, Revisions to Tax, changes the research Major Funding Initiatives and development income tax credit from 9.2% to A reorganization and consolidation of appropriations 7.5% and enacts sales tax exemptions for con‐ subcommittees in the 2011 General Session brought struction material and certain equipment used in certain agency budgets directly before the Executive life science research and development facilities, Appropriations Committee. Those agencies include the reducing overall tax liability by $200,000 in FY Utah National Guard, the Department of Veterans' Af‐ 2013 and $600,000 in FY 2014. fairs, and the Capitol Preservation Board. HB 384, Sales and Use Tax Seller Nexus Amend‐ National Guard ments, addresses the types of sellers who are re‐ Tuition Assistance: $500,000 for tuition assistance quired to pay or remit sales taxes, which in‐ for National Guard personnel. creases tax liability by $5.6 million in FY 2013 and $5.8 million in FY 2014. Armory Maintenance: utility increase of $181,000 from the General Fund and $283,000 from Federal SB 27, Amendments to Revenue and Taxation Ti‐ Funds. tle, reverses the Utah Supreme Court’s decisions regarding third party refunds and restatement of Veterans’ Affairs invoices, and thereby reduces unaccounted‐for tax liability by $6.7 million annually beginning in Nursing Home Facilities: $600,000 one‐time for FY 2012 and reduces one‐time sales tax revenue local impact costs; $500,000 for startup expenses; of $1.7 million in FY 2015. and $192,800 for two FTE to oversee operations of SB 65, Alternative Energy Development Tax Incen‐ the new facilities in Payson and Ivins. tives, expands the current energy development Veterans’ Outreach Program: $200,000 incentives to include coal‐to‐liquids, nuclear fuel, oil sands, oil shale, petroleum coke, and landfill Capitol Preservation Board industries and expands the type of items eligible Operating Expenses and Maintenance: $500,000 for sales tax exemptions; these tax changes re‐ Legislature duce tax liability by $200,000 over the coming two fiscal years and, presuming the state has 20% Technology upgrades and compensation: $250,000 of its energy in 2025 produced by the industries Legislative Compensation Commission recommen‐ contained in the bill, forgoes Education Fund and dations: $150,000 General Fund revenue by an estimated $74 mil‐ SB 156, Elected Official Retirement Benefits Amend‐ lion in FY 2025. ments, eliminates benefits for future officials and SB 143, Income Tax—Pass‐through Entities, im‐ appropriates $246,300 for existing liabilities. poses withholding requirements on certain bene‐ ficiaries of estates and trusts, which, by shifting Commissions & Task Forces (HB 28, 144, & 162; SB the collection of taxes to earlier payments, in‐ 134): $50,000 in FY 2012 and $50,200 in FY 2013. Office of the Legislative Fiscal Analyst State Capitol Complex, House Building Suite W310 Salt Lake City, Utah 84114 Phone: 801‐538‐1034 Fax: 801‐538‐1692 Publications: http://le.utah.gov/asp/interim/Commit.asp?Year=2012&Com=APPEXE&page=links Note: All figures represented in this summary are preliminary. Final appropriation figures, including gubernatorial vetoes, will be reflected in the 2012‐2013 Appropriations Report. A comprehensive list of budget actions is available upon request. 2 Utah Legislature 2012 General Session Business, Economic Development and Labor Appropriations Summary & Budget Highlights Budget Summary Total Appropriation FY 2011 Actual $563,125,300 The Business, Economic Development and Labor State Funds $126,286,000 Appropriations Subcommittee oversees budgets for FY 2012 Revised $804,198,000 10 areas of State government: Department of State Funds $133,156,400 Community and Culture, Governors Office of FY 2013 Appropriated $673,596,000 Economic Development, Utah State Tax Commission, State Funds $127,487,200 Utah Science Technology and Research Initiative, Percent Change FY11/FY12 Rev 42.8% Department of Alcoholic Beverage Control, Labor State Fund Increase/(Decrease) 5.4% Commission, Department of Commerce, Department Percent Change FY12 Rev/FY13 -16.2% of Financial Institutions, Insurance, and the Public State Fund Increase/(Decrease) -4.3% Service Commission. Business, Economic Development, & Labor Budget Major Funding Initiatives: History $900,000 USTAR $800,000 $700,000 • $6,000,000 General Fund to USTAR; $3,000,000 $600,000 (one-time) in FY 2013 and $3,000,000 beginning $500,000 $400,000 in FY 2013. $300,000 $200,000 GOED FundsAll (in thousands) $100,000 • $0 Utah Defense Alliance: $500,000 General Fund 2009 Actual 2010 Actual 2011 Actual 2012 Revised 2013 Approp (one-time) Fiscal Year • Tourism Marketing Performance Fund: $9,000,000 (one-time) Business, Economic Development, & Labor FY 2013 Funding Mix • Sports Commission: $556,100 and $500,000 (supplemental) Federal Funds $134,837,300 • Health Exchange: $600,000 (one-time) 20% • World Trade Center Funding: $350,000 Dedicated Credits Transportation $80,372,400 12% Other Fund $324,923,700 • $5,975,400 48% Business Marketing Initiative: $500,000 (one- 1% time) General Fund Education Fund $110,267,600 $19,219,600 16% • Hill Air Force Show: $150,000 (one-time) 3% • Sundance Film Festival: $500,000 (one-time) Members of the Joint Appropriations Subcommittee Senators Representatives Staff Jerry W. Stevenson, Co-Chair Todd E. Kiser, Co-Chair James A. Dunnigan Andrea Wilko Curtis S. Bramble Ryan Wilcox, Vice-Chair Jeremy A. Peterson Zackery King Casey Anderson Brian S. King Stuart Barlow Gene Davis Brian Doughty Val L. Peterson Ralph Okerlund Lowry Snow Stephen H. Urquhart LFA Stuart C. Reid LEGISL ATIVE FISCAL ANALYST March 27, 2012 JONATHAN C. BALL DIRECTOR 3 Business, Economic Development and Labor • Manufacturer’s Extension Partnership: • Travel Reimbursement for Auditors: $50,000 $200,000 Public Service Commission • Small Business Development Centers: $136,900 • Appropriated $109,000 from the Public Utili- ties Regulatory Fund for one FTE. • Business Resource Centers: $250,000 (one- time) Labor Commission • Industrial Assistance Fund Replenishment: • $56,800 from the Industrial Accident Re- $11,000,000 (supplemental), including Com- stricted Account to fund one FTE position for posites Initiative $2,000,000 Workers’ Compensation and Insurance Com- • Auditor: $77,000 pliance.
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