Roads earmark nabs 20 percent of revenue growth | The Salt Lake Tribune
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Roads earmark nabs 20 percent of revenue growth
State budget » An earmark law passed last year slices $71 million off the  top  of  revenue  growth;  Democrats  complain  it  shows  flawed  priorities.
First Published Feb 21 2012 11:40 am • Last Updated Feb 21 2012 10:47 pm

Before Utah’s budget process begins, 20 cents of every dollar available to fund programs and pay salaries has already been committed to one mission: maintaining roads.

Under legislation passed last year, $71 million of sales tax revenue has been earmarked for road construction and upkeep. The figures were not even included in new revenue projections legislators received Tuesday.

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"It shows you where the priorities are for the Republican majority," said Sen. Pat Jones, D-Holladay.

She said there are plenty of needs in public and higher education, health care and human services.

"If you really want to know what is important, follow the money," she said.

Utah’s economy continues to grow at a slightly higher clip than forecast, but not enough to make a significant difference in the budget figures.

Legislators learned Tuesday that they will have $14 million more to spend in the coming year than was anticipated in the November forecasts. That is on top of the $408 million additional revenue projected for the current fiscal year, with a total budget of about $13 billion.

That figure doesn’t include the $71 million for roads that is already off the table — a significant chunk of the so-called ongoing money, which can be used to bolster programs, hire workers or pay salaries.

"It is a lot of money, but I think it’s functioning as intended," said Sen. Stuart Adams, R-Layton and past chairman of the Utah Transportation Commission, who sponsored the earmark. "If you believe that infrastructure is a key to economic development, then if we gut our infrastructure it means we’re not going to have money for schools or anything else."

Gov. Gary Herbert opposed the earmark last year and vetoed the bill, saying it would tie the hands of future legislators, but Republican lawmakers overrode Herbert’s veto.

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In his current year budget, Herbert recommended diverting some of the earmark from roads, but lawmakers are resisting that.

Herbert put a positive face on the new revenue figures.

"Utah’s economy is still growing," the governor said in a statement, "and while we clearly still have work to do and jobs to grow, our forecasts are holding and this state continues to lead the nation out of the Great Recession."

All told, the state collected $493 million more in taxes than last year, but lawmakers have warned for months the growing demands on government mean the dollars won’t go far.

"Its good news that [the revenue figures] aren’t less. That means we’re beginning to see growth in the economy. Steady but slow," said House Speaker Becky Lockhart, R-Provo.

In addition to the $71 million for roads, legislators have already used $52 million to replace funds that will lapse when the fiscal year ends June 30, allowing those programs to continue.

About 12,500 new students are expected to enter Utah schools, costing the state about $40 million. Enrollment in health insurance for children and the poor has grown, and Herbert has requested $156 million to fund those programs.

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