With a probable tobacco tax filling holes, budget is taking shape
This is an archived article that was published on sltrib.com in 2010, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Utah's budget picture became clearer Thursday, as lawmakers signed off on the bulk of the $11.2 billion spending plan and the Senate agreed to a $1 per-pack cigarette tax increase that would help stave off cuts to critical areas.

But some significant issues remain, including whether Gov. Gary Herbert will go along with a legislative-backed cut of $21 million from public education -- a late development in a session where protection of Utah schools had long been the rallying cry.

"There is no compromise on that. At this point negotiations are still under way," said Angie Welling, Herbert's spokeswoman. "He's commited to his No. 1 priority, which is keeping education at its current levels."

The Legislature's budget committee approved an agreement that represents a consensus position on a vast majority of the state budget, minus the education portion.

"Essentially, we're there," said Rep. Ron Bigelow, R-West Valley City, the House budget chairman. "It's not 100 percent, but there's agreement on most of the issues."

Armed in large part with the presumed new tobacco tax money, legislative leaders saved crucial areas from the chopping block, including restoring funds to avoid reductions in the number of highway patrol troopers, averting the early release of prison inmates and restoring money for prenatal care for low-income mothers.

Utah colleges and universities would be getting some $50 million in proposed cuts restored to their budgets, dental services for the poor are being funded and there is a big bump to provide services to youth in custody.

The $1 per-pack tobacco tax passed the Senate by a vote of 20-9 Thursday evening. Because the Senate bill raises the tax on cigars by a slightly lower rate, the two chambers still have to agree to a final version.

But leaders have already built the $44 million in anticipated revenue into the budget, with the assumption that Herbert will go along with the legislation -- and indications for the first time that the governor may sign the bill.

"Obviously he's willing to make compromises and public education funding remains his No. 1 priority," Welling said. "He still has not committed to signing or vetoing the tobacco tax."

The tentative budget plan still has some significant cuts. The Utah State Hospital would be cut by $500,000 and the Utah Developmental Center, which houses disabled individuals, would be cut by $2 million.

One of the big unfunded items in the budget is $7.6 million for a planned parole violator center.

"It would have been about 300 beds and they were the only new beds we would have," said Corrections spokesman Steve Gehrke. "Even if we don't get the full $7.6 million, we hope we can open a smaller version of the parole violator center and then expand it at a later date."

The budget framework would drain all $103 million that legislators set aside in years past to help fund enrollment growth in public education. It would take $80 million from the Rainy Day Funds, leaving $210 million in place for next year in case the economy is slow to recover.

Lawmakers apparently will not require businesses to file their estimated taxes quarterly, instead of annually, which would have accelerated payments and meant a one-time $110 million windfall. They also do not plan to repeal a $20 million tax break to retailers that collect sales taxes for the state.

During House caucus Thursday, several members asked leaders to try to cut more from the Department of Environmental Quality, which had already sustained a 28 percent cut in the last two years, especially if it comes from the Western Climate Initiative. Rep. Wayne Harper, R-West Jordan, wants the funds from DEQ's travel budget to go to National Guard scholarships.

Cathy McKitrick contributed to this report.

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