Utah state budget

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Utah state budget

Flag of Utah.png
Budget calendar:  Annual
Current fiscal year:  2015
State credit rating:  AAA (as of May 2012)
Current governor:  Gary Herbert
Financial figures
GF expenses[1]:  $4.990 billion (estimated for FY 2013)
All funds expenses:  $12.603 billion (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg6.61%[2]
% from federal funding:  31.61%
State debt:  $35,727,752,000
Per capita state debt:  $12,513
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Between fiscal year 2009 and fiscal year 2013, Utah's total expenditures increased by approximately $1.044 billion, from $11.559 billion in 2009 to $12.603 billion in 2013. This represents a 9.03 percent increase, roughly equivalent to the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

This page contains information about budget processes and policy issues in Utah, including:

  • a summary of the budget drafting process
  • trends in expenditures and revenues
  • current and past fiscal year budget developments
  • financial transparency measures

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instructions are sent to state agencies in July of the year preceding the start of the new fiscal year.
  2. Agencies submit their budget requests to the governor in September.
  3. Agency hearings are held from October through November.
  4. Public hearings are held from March through June.
  5. The governor submits his or her proposed budget to the state legislature in December.
  6. The legislature typically a budget in February or March. A simple majority is required to pass a budget. The fiscal year begins July 1.

Utah is one of 44 states in which the governor has line item veto authority.[6]

The governor is legally required to submit a balanced budget to the legislature. Likewise, the legislature is legally required to adopt a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[7]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Utah $4,990 $3,405 $3,739 $469 $12,603 $4,344.56
Colorado $7,942 $7,334 $13,203 $0 $28,479 $5,405.66
Idaho $2,699 $2,792 $1,718 $33 $7,242 $4,492.18
Montana $1,947 $2,115 $1,978 $0 $6,040 $5,949.77
Wyoming $3,709 $2,353 $2,549 $0 $8,611 $14,778.82
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Utah can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
Utah 24.7% 11.9% 0.9% 17.5% 2.0% 9.2% 33.9%
Colorado 25.3% 9.0% 0.0% 20.7% 2.7% 5.4% 36.9%
Idaho 25.7% 8.1% 0.3% 27.2% 3.7% 10.9% 24.2%
Montana 15.5% 9.8% 0.5% 16.8% 3.1% 12.7% 41.5%
Wyoming 3.9% 5.5% 0.0% 9.5% 4.6% 9.5% 66.9%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[7]

Expenditure trends

From 2008 to 2012, the share of the state budget spent on transportation fell by nearly 13 percentage points, or 58.4 percent. The table below details changes in expenditures from 2008 to 2012.[7][9][10][11][12] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
2012 24.7% 11.9% 0.9% 17.5% 2.0% 9.2% 33.9%
2011 23.2% 10.8% 0.9% 14.7% 1.8% 10.8% 37.8%
2010 18.9% 9.5% 0.9% 11.9% 2.6% 25.9% 30.4%
2009 25.5% 11.3% 1.1% 14.6% 3.5% 15.1% 28.8%
2008 23.2% 10.9% 0.7% 13.6% 2.9% 22.1% 26.6%
Change in % 1.50% 1.00% 0.20% 3.90% -0.90% -12.90% 7.30%
Source: National Association of State Budget Officers
Note**: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[7]

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Utah $1,633 $2,652 $313 $0 $495 $5,093 $1,755.68
Colorado $2,186 $5,642 $640 $13 $111 $8,592 $1,630.87
Idaho $1,152 $1,313 $194 $0 $140 $2,799 $1,736.21
Montana $62 $1,048 $177 $57 $734 $2,078 $2,046.96
Wyoming $499 $0 $0 $0 $549 $1,048 $1,798.65
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][9] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Utah ($ in millions)[7][9]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $1,633 $2,652 $313 $0 $495 $5,093 $1,755.68
2012 $1,583 $2,459 $269 $0 $548 $4,859 $1,702.00
2011 $1,601 $2,298 $261 $0 $499 $4,659 $1,655.19
2010 $1,403 $2,105 $258 $0 $427 $4,193 $1,511.30
2009 $1,547 $2,339 $269 $0 $412 $4,567 $1,640.11
Change in % 5.56% 13.38% 16.36% 0.00% 20.15% 11.52% 7.05%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][13]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2015

DocumentIcon.jpg See budget bill: Fiscal Year 2015 Budget Bills

Governor Gary Herbert announced his fiscal year 2015 budget proposal on December 4, 2013. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $13.3 billion.[14]

On April 1, 2014, Herbert signed into law the fiscal year 2015 budget. The enacted budget totaled $13.5 billion, a 1.2 percent increase over fiscal year 2014.[14]

Fiscal year 2014

DocumentIcon.jpg See budget bill: 2013-2014 Appropriations Report

Rather than pass one all-encompassing appropriation bill, the Utah State Legislature instead typically passes a series of appropriations bills that together comprise the state budget. The state's legislature's Office of the Legislative Fiscal Analyst publishes an annual summary report that details the enacted state budget.[15] 6,5 To access the appropriations report for fiscal year 2014, click here.

Fiscal year 2013

See also: Utah state budget (2012-2013)

Fiscal year 2012

See also: Utah state budget (2011-2012)

Fiscal year 2011

See also: Utah state budget (2010-2011)

Fiscal year 2010

See also: Utah state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][10]

Historical state budget spending in Utah ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $4,742 40.1% $3,039 25.7% $3,588 30.4% $453 3.8% $11,822
2010-2011 $4,628 36.5% $4,115 32.4% $3,579 28.2% $366 2.9% $12,688
2009-2010 $4,372 34.7% $4,316 34.3% $3,607 28.6% $303 2.4% $12,598
Averages: $4,580.67 37% $3,823.33 31% $3,591.33 29% $374 3% $12,369.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Utah had a state debt of over $35 billion. Its state debt per capita was $12,513. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[16][17]

Total state debt in Utah[18]
Type Totals U.S. rank
Total state debt $35,727,752,000 37
Per capita debt $12,513 37
State and other fund expenditures $7,781,000,000 20

Public pensions

See also: Utah public pensions and Utah public employee salaries

A 2012 report from the Pew Center on the States noted that Utah's pension system was funded at 82 percent at the close of fiscal year 2010, just above the 80 precent funding level experts recommend. Pew designated the state's pension system as needing "improvement."[19]

The funding ratio for the state's pension system decreased from 95.80 percent in fiscal year 2007 to 76.49 percent in fiscal year 2012, a decrease of 19.31 percentage points, or 20.2 percent. Likewise, unfunded liabilities increased from under $1 billion in fiscal year 2007 to more than $6.5 billion in fiscal year 2012.[20]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[21]

The table below lists the Standard and Poor's credit rating for Utah from 2001 to 2012 (grades from surrounding states are provided for additional context).[21]

S&P credit ratings from 2001 to 2012
Utah Colorado Idaho Montana Wyoming
2012 AAA AA AA+ AA AAA
2011 AAA AA AA+ AA AAA
2010 AAA AA AA AA AA+
2009 AAA AA AA AA AA+
2008 AAA AA AA AA AA+
2007 AAA AA AA AA- AA
2006 AAA AA- AA AA- AA
2005 AAA AA- AA AA- AA
2004 AAA AA- AA AA- AA
2003 AAA AA- AA AA- AA
2002 AAA AA- AA AA- AA
2001 AAA AA AA AA- AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[22]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[22]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Utah 31.61% $4,481,494,000 31
Colorado 28.85% $6,310,538,000 35
Idaho 34.90% $2,479,094,000 16
Montana 38.46% $2,202,444,000 6
Wyoming 36.00% $2,213,249,000 13

Stimulus

Utah received $2.09 billion in federal stimulus funding between February of 2009 and June of 2013.[23]

Budget transparency

Transparency evaluation
Transparent Utah
Searchability Y
600px-Yes check.png
Grants N
600px-Red x.png
Contracts Y
600px-Yes check.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries P
Partial.png
Last evaluation date unknown.
See also: Evaluation of Utah state website and Constitutional provisions regarding reading of bills

In 2008, the Utah State Legislature passed SB 38. The bill proposed the availability of public financial information on the Internet. Additionally, it modified notice requirements of the Open and Public Meetings Act.[24] Utah's spending transparency website was launched in May 2009.[25]

The table to the right is helpful in evaluating the level of transparency provided by a state spending database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Utah, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[26][27]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Utah tied for eighth in the nation with 12 other states, earning six out of eight possible points.[27]

Utah - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures N
600px-Red x.png
"Generally Accepted Accounting Principles" budget Y
600px-Yes check.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast
{{{1}}}
Legislative revenue forecast
{{{1}}}
Nonpartisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[27]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[28] According to the report, Utah received a grade of B- and a numerical score of 82, indicating that Utah was an "advancing" state in terms of transparency regarding state spending.[28]

Accounting principles

See also: Utah government accounting principles

The Utah State Auditor is responsible for state and local audits. The Financial Audit Division is responsible for auditing all state departments, agencies, colleges and universities. The Local Government Division ensures uniform accounting, budgeting, and financial reporting by Utah's local governments. Audit reports are available online.[29]

Contact information

Utah Governor's Office of Management and Budget
State Capitol, Suite 150
Salt Lake City, Utah 84114
Telephone: 801-538-1027

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 7.15 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 9.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  13. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  14. 14.0 14.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  15. Governor's Office of Management and Budget, "State Budget," accessed May 5, 2014
  16. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  17. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  18. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  19. Pew Center on the States, "Widening Gap Update: Utah," June 18, 2012
  20. Utah Retirement Systems, "2012 Comprehensive Annual Financial Report," accessed November 26, 2013
  21. 21.0 21.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  22. 22.0 22.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  23. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  24. State of Utah, "Performance Elevated," accessed April 7, 2009
  25. Transparent Utah, "Home page," accessed September 18, 2013
  26. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  27. 27.0 27.1 27.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  28. 28.0 28.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  29. Utah Office of the State Auditor, "Home page," accessed November 16, 2009