Utah's budget finished the year $28 million in debt, which is well below analysts' worst-case scenario of $150 million, according to preliminary numbers.

Strong corporate earnings helped cover for weaker-than-expected income tax payments. State agencies also had $21 million left over at the end of the 2010 budget year on June 30, which went back into the general fund.

"These latest numbers are yet one more sign that Utah's economy is turning the corner," Gov. Gary Herbert said in a statement. "This is good news, and shows that Utah continues to lead the nation in prudent fiscal management, careful budgeting and positive response from the private sector."

Herbert issued an executive order six months ago, directing agencies to ratchet down administrative spending, postponing things like computer purchases and limiting travel and new hiring.

State forecasters had anticipated a debt of between $50 million and $150 million just a few months ago.

The education fund, which relies on individual income taxes to pay for state education expenses, came in about $44 million short. The general fund, made up of sales tax and corporate filings, was projected last month to suffer about a $4 million shortfall, but came in $21 million higher.

John Nixon, director of the Governor's Office of Planning and Budget, said the strong corporate revenue stream is particularly good news, because it is a leading indicator forecasting a healthy economic future.