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Gov. Gary Herbert will unveil his blueprint Friday for nearly $12 billion to run state government next year, with his plan expected to contain no recommended tax hikes and to feature something Utah hasn't seen in years: black ink.

For the first time since 2007, the governor will be able to propose a budget larger than the one approved the year before.

"The last several years we started the year with a big hole and then we have to dig even deeper," said Senate budget chairman Lyle Hillyard, R-Logan. "This year we will have revenue increases and that will make this year quite a bit different."

But that doesn't mean things will be easy.

He said state lawmakers have to come up with about $350 million to fund growth in state programs. That includes new students in public schools and universities, new inmates in the prison system and increased demands on health and human services programs.

For example, Utah's public schools are expecting 14,700 new students to enroll in classes next fall, and state school officials have asked lawmakers for $76 million to cover those expenses.

While Hillyard is expecting some new money — he wouldn't say exactly how much is expected — there are always plenty of demands.

And there is another consideration: The current state budget is propped up with about $313 million of money — much of it federal stimulus money or Rainy Day Funds infused last session — that will disappear at the end of the current fiscal year.

That means legislators would have to let the money disappear and cut programs by about 7 percent, or they could find money to slide into its place.

There are currently $210 million in Rainy Day Funds, essentially savings accounts squirreled away, although those accounts have been drained from their peak level of nearly $420 million.

One option that Herbert proposed last year but was not adopted by the Legislature is changing the way self-employed individuals file their taxes. By requiring those individuals to make estimated payments quarterly, the state can collect the money earlier.

That would create an estimated $100 million one-time windfall that could supplant some of the lapsing stimulus and Rainy Day Funds.

Senate President Michael Waddoups, R-Taylorsville, said he predicts Herbert will again look to the quarterly filings.

"Both he and we campaigned on taking care of education and he also campaigned on 'no new taxes,' so there's not a lot of other options out there, so I think he'll look to that," Waddoups said.

The Legislature ultimately sets the final budget, in consultation with the governor, and lawmakers have in the past largely ignored the chief executive's proposals.

Lawmakers have shaved more than $1 billion from the state budget over the past three years, as the economy contracted. Herbert may be bucking that trend, proposing a growth budget for the first time since Gov. Jon Huntsman Jr.'s 2007 proposal.

"Governor Herbert has prepared a budget for Fiscal Year 2012 that reflects his priorities and his vision for the state of Utah," said his spokeswoman, Angie Welling. "It is a balanced budget that is built around the key principles of investing in the future, maintaining delivery of critical state services, ensuring continued fiscal stability and not stifling the state's budding economic recovery."

Indeed, there are some green shoots that indicate the state's economy is beginning to grow again.

While unemployment remains high, revenues for the current year are expected to come in about $6 million higher than projected — an almost insignificant amount, but the first time in recent years that tax collections have exceeded the typically conservative forecasts. —

Governor's budget plan

P Herbert's recommended spending plan for the state will be released at 11 a.m. Friday. The complete document will be posted at utah.gov/governor.