In his proposed state budget for Fiscal Year 2023, Gov. Spencer Cox is recommending that every Utah public school teacher receive a $6,000 compensation boost, including pay and benefits (Image courtesy of Facebook).
SOUTH JORDAN — On Dec. 9, Gov. Spencer Cox unveiled a proposed state budget for Fiscal 2023 that included big ticket items totaling $28.4 billion.
“This is a budget that reflects fiscal conservatism and family values by investing in people and expanding opportunities for Utahns across the state,” Cox said at an announcement ceremony in South Jordan.
“Our state is growing and this budget invests in things that we know will work.”
At the top of that list of priorities is more than $1 billion in tax cuts for state residents over three years.
Cox’ tax-cutting proposals include an income tax rate reduction; an expansion of the dependent exemption to include a $250 refundability provision; a dependent exemption for pregnant women; an acceleration of the phase-out of taxes on Social Security income; a property tax reduction; a one-time income tax rebate; and other measures.
“Utah’s strength is its people,” Cox explained during a preview of his budget on Dec. 8 in Kaysville. “Returning hard-earned dollars to Utahns who are struggling from the impact of inflation is the right thing to do and will support families that need it the most.”
These ongoing and one-time income tax and property tax recommendations, coupled with cuts made over the past couple of years by the Legislature, total more than $1.3 billion in tax relief for Utahns.
The governor’s proposal would amount to the largest tax cut by a single administration in state history.
Those cuts are possible thanks to about $1.85 billion in available ongoing General Fund and Income Tax revenues, plus $2.88 billion in available one-time unrestricted General Fund and Income Tax revenues, according to estimates released by the office of the Legislative Fiscal Analyst and the Governor’s Office of Planning and Budget.
In addition to those funds, the LFA and GOPB have identified income tax revenues that state experts consider “high risk” due to potential lack of sustainability.
Cox has recommended that the Legislature appropriate those funds only to low-risk purposes.
Cox has also recommended a $6,000 compensation increase for all Utah teachers, including a pay hike of approximately $4,600 plus appropriate benefits.
“Getting and keeping high-quality, qualified educators in classrooms will do wonders for our K-12 students,” the governor’s said. “This pay increase will help us do that.”
Other proposals in the governor’s budget to benefit education total more than $1.5 billion. Those include a 5 percent increase in the Weighted Pupil Unit; $476.9 million for educator support; funding for students at risk of academic failure; and about 95 percent of the funds needed to have optional all-day kindergarten for every family.
Cox also made specific recommendations to support families and young Utahns including additional mental health funding; assistance for first-time home-buyers; and resources for domestic violence prevention and victim support.
Investments in the state’s infrastructure protect quality of life as Utah experiences record growth, according to state officials.
In addition to proposed assistance for Utah home-buyers and home-owners, Cox recommended $150 million for deeply affordable housing units and affordable housing tax credits and loans.
Cox also announced an ongoing fund for active transportation to create a statewide trail network, a pilot project for zero-fare public transit and investments for air quality and energy innovation.
One thing the governor is not recommending funding for is hare-brained schemes to address critical issue facing the Great Salt Lake.
“We’re not going to be building a pipeline from the Pacific Ocean while I’m governor,” he said. “That’s not going to happen.”
In response to the ongoing historic drought, the governor’s budget proposal includes more than more than $500 million for investments in water conservation, water quality, research, infrastructure and management.
That includes $132.9 million specifically for the Great Salt Lake crisis and more than $217 million for statewide water conservation and supply management efforts that are expected to create medium- and long-term benefits for the lake.
The governor’s budget proposal is certain to be a hotly debate subject during the 2023 general session of the Utah Legislature beginning in January.
The Fiscal 2023 budget year is scheduled to begin on July 1, 2023.