The Executive Appropriations Committee (EAC) made final recommendations for the fiscal year (FY) 2023-24 budget. This year’s recommendations include significant funding for education, social services, water, infrastructure, and a tax cut for the third consecutive year.
The recommendations include increasing the education budget by $578.3 million in ongoing revenue, and $338.7 million in one-time funds, a 19.7% increase.
The EAC budget recommendations also allocate $413.4 million (one-time) and $14.2 million (ongoing) to Utah’s continuous water efforts, $400 million in tax relief, over $1 billion in transportation and transit improvements, and $775 million for debt reduction and debt avoidance.
“While preparing and finalizing our budget, we are not just thinking about the coming year, we are planning for the next 100 years,” said President J. Stuart Adams. “This year, we are making generational investments in housing, water, education and transportation. We are funding solutions to our growing state’s most pressing needs, and cutting taxes while looking ahead to avoid future pitfalls. We are providing immediate tax relief to Utahns at a time when they need it most. By making smart fiscal decisions, Utah’s economy will continue to remain steadfast.”
“This session we set out to both provide Utahns with a historic tax cut and make significant generational investments that will have statewide impacts,” said Speaker Brad Wilson. “This budget accomplishes both goals as we focus on lowering taxes and investing in water, transportation, education, health, and housing. I appreciate the great work done by our committee members, committee chairs, and the Executive Appropriations Committee as they crafted a budget that serves the interests of Utahns across the state.”
“Each year, we are presented with new challenges and opportunities when it comes to the state budget,” said Sen. Jerry Stevenson, Senate EAC co-chair. “Our finalized budget reflects Utah’s values and prioritizes future growth. Over the last few years, lawmakers have seen the need for additional funding to ensure Utah remains the best place for our kids and grandkids to live and raise families. This budget does just that. We are making historic investments focused on state and regional projects, which will continue to solidify Utah’s ranking as the state with the best economic outlook.”
“Utah is the best prepared state to weather an economic downturn,” said Rep. Val Peterson, House EAC co-chair. “Our budget reflects prudent fiscal planning while also making strategic and generational investments in statewide needs including education, natural resources, transportation, and infrastructure. Additionally, we will provide historic tax cuts for the people of Utah. The budget we have laid out will have significant benefits for generations to come.”
The EAC budget recommendation now advances to the full Legislature for consideration. The total state budget will amount to nearly $28 billion and will continue to be refined over the next week. The 2024 fiscal year begins July 1, 2023.
Funding Highlights:
Tax Relief
- $400 million – Tax relief for Utahns (H.B. 54)
- Reducing all Utahns’ income tax rate from 4.85% to 4.65%.
- Expanding social security tax credit eligibility to individuals earning up to $75,000 per year.
- Providing a tax benefit for families by allowing a double dependent exemption for children in the year of their birth.
- Increasing the earned income tax credit (EITC) from 15% to 20% of the federal credit.
Public Education
- $239 million – Funding for Teacher Salaries and Optional Education Opportunities (H.B. 215)
- $236 million – 6% WPU increase (includes base budget increase of $132 million)
- $92 million – Permanent State School Fund
- $64 million – Educator Preparation and Collaboration Time
- $50 million – Small School Critical Capital Needs Fund
- $30 million – Flexible Funding WPU Distribution to 4th-6th Class County Schools
- $25 million (ongoing) and $586,500 (one-time) – At-Risk Students WPU Weighting Increase
- $17.9 million (ongoing) and $16.5 million (one-time) – Educator Salary Amendments (S.B. 183)
Education Programs
- $75 million – Flexible School Safety, Physical Facility, & Capital Needs
- $64 million – Educator Preparation and Collaboration Time
- $25 million – Optional Full-day Kindergarten Expansion
- $15 million – Teen Centers for Students Experiencing Homelessness
- $7.1 million – Grow Your Own Teacher and Counselor Pipeline
Affordable Housing/Homelessness
- $53.4 million – Utah Low-income Housing Tax Credit
- $50 million – First-time Homebuyer Program (S.B. 240)
- $50 million – Deeply Affordable Housing
- $12 million – Homeless Services Dedicated Funding
- $10 million – Utah Housing Preservation Fund
- $7 million – Box Elder Crisis Shelter and Transitional Housing
- $5 million – Attainable Housing Grants
- $5 million – Shared Equity Revolving Loan Fund
- $4 million – Affordable Housing Technical Assistance
- $2.75 million – Rural Single-Family Home Land Revolving Loan Program
Transportation
- $800 million – UDOT Transportation Enhancements
- $200 million – Commuter Rail Improvements
- $150 million – Cottonwood Canyons Transportation
- $108 million – The Point of the Mountain
- $88.5 million – Highway 191 Safety Improvements
- $40 million – Rural B & C Roads (S.B. 175)
Water
- $200 million – Agricultural Water Optimization
- $50 million – Water Reuse Reservoir and Desalination (S.B. 277)
- $30 million – Water Infrastructure Projects
- $25 million – Agricultural Water Optimization Loans for Matching Requirements
- $25 million – Dam Safety Upgrades
- $15 million – Secondary Water Meters
- $10 million (one-time) and $2.5 million (ongoing) – Amendments Related to the Great Salt Lake (H.B. 491)
- $5 million (ongoing) and $7 million (one-time) – Cloud Seeding Program
- $5 million – Utah Lake Improvements
- $2 million (one-time) $1 million (ongoing) – Utah Water Ways (H.B. 307)
Parks/Recreation
- $45 million – Active Transportation Statewide Trails Network (S.B. 185)
- $40 million – Utah Olympic Legacy Foundation Facilities Updating
- $15 million – Antelope Island Visitor Center
- $14 million – Supplemental Funding to Complete Phase One of Utahraptor State Park
- $10 million – Zion Multimodal Transportation Infrastructure
Social Services
- $25 million – Wasatch Canyons Behavioral Health Hospital
- $12 million (ongoing) and 12.5 million (one-time) – Victim Services
- $5.4 million (ongoing) and $3.4 million (one-time) – Jail Contracting (S.B. 114)
- $4.5 million (ongoing) and $895,000 (one-time) – Equal Medicaid Reimbursement Rate for Autism
- $3.9 million (ongoing) and $977,300 (one-time) – Postpartum Medicaid Coverage Amendments
- $3.5 million (ongoing) and $1.8 million (one-time) – Services for People with Disabilities Waiting List
- $3 million – Domestic Violence Shelter-based Support Services
- $1.7 million – Medical Loan Repayment Incentives to be in Underserved Areas
- $1.4 million – Caregiver Compensation
Mental Health
- $6 million – Huntsman Mental Health Crisis Receiving Center
- $5 million – Mental Health Resources for First Responders
- $1 million (ongoing) and $1 million (one-time) – Mental Health Services for LGBTQ+ Youth