Press Release
The Utah Legislature and Governor’s Office recently released updated revenue numbers for the upcoming general session. Due to years of sound legislation and thoughtful planning throughout the pandemic, the state will see a 1.5% increase in revenue in the current 2021 fiscal year and a 6.5% increase in the 2022 fiscal year. The state’s fiscal health in the face of a pandemic is the envy of almost every other state in the country.
Education
The Legislature plans to use $121 million of this new revenue for a one-time COVID-19 educator assistance stipend for teachers and school staff who are making great sacrifices to keep schools open and educate Utah’s children under challenging circumstances. The Legislature expresses profound appreciation for the dedication and hard work of the educators in the state. This stipend will provide $1,500 to each full time teacher and $1,000 to other full time school employees (part-time employee stipends will be prorated). The Legislature also plans to use $235 million to increase the public education base budget. These appropriations fulfill the Legislature’s promise to education following voters approval of Constitutional Amendment G, and do so a year earlier than planned.
Federal COVID-19 Revenue
A significant portion of this new available revenue is a result of extraordinary federal government intervention. The U.S. federal government injected between $10-$12 billion in Utah’s economy this year, including $1.25 billion CARES Act funding as well as extensive amounts of direct aid from the federal government to individuals and businesses through stimulus payments, expanded unemployment benefits and the Paycheck Protection Program.
Despite the one-time nature of federal stimulus, it accounts for approximately $450 million of the new ongoing revenue. Lawmakers plan to appropriate $450 million of the new ongoing revenue to one-time expenses to avoid the fiscally unsound practice of funding the state’s future with a massive, temporary federal outlay.
Investing in the Future
The Legislature also plans to invest in and maintain infrastructure and replenish reserve funds to support population increases and demands of tomorrow. This includes reserve funds to address wildfires and contingency funds to address potential economic downturns. Our state is benefiting because of forward thinking and planning by those who went before us. It is necessary to continue planning for our state’s future to ensure Utahns continue to enjoy our marvelous state for decades to come as the population increases.
2021 General Session
The Legislature is committed to continuing to be fiscally responsible and focused on the long-term well being of the state. Additional discussions regarding the budget, including other appropriate uses for these funds and potential tax cuts will take place during the 2021 session.