The proposed new state budget outlined Wednesday by Gov. Leavitt is an impressive exercise in trying to think big while still being careful with Utahns' money.
The ambitious nature of this $4.5 billion fiscal blueprint is clear in more ways than just its 5.82 percent increase without a tax hike. It also is clear from the repeated emphasis the governor puts on innovation and on his continuing efforts to put the latest computer advances and other technology to work in a wide range of government operations from the classrooms to the courts.Certainly there's room for Utah to be optimistic and ambitious in its spending plans. With a 5.1 percent rate of job growth that's the highest in the nation and a 7.3 percent rate of personal income growth that's second only to Nevada's, Utah's economy is the envy of the rest of the country. This outstanding performance is no accident but is due at least partly to the astute budgeting of previous administrations, a tradition the Leavitt team is clearly trying to continue and even improve upon.
But the good times can't be expected to last indefinitely. Not when the federal government keeps mandating spending programs over which the states have little or no control - a trend that presently eats up 10 percent of Utah's general fund. Not when Washington keeps talking about possible cutbacks or even the closure of Hill Air Force Base, a move that by itself could send Utah's economy from boom to gloom. And not when Utah's present growth is fueled largely by a job growth rate of 12.9 percent in construction, an industry that is notorious for periodic ups and downs.
So Gov. Leavitt is to be applauded for a couple of particularly sensible budget moves.
One of them is his recommendation that $21 million of the $51 million increase in state revenue attributed to the current boom be devoted to one-time investments rather than continuing operations. The rest of that money would go into the state's rainy day fund.
The other such move is his call for an end to the old and wasteful practice by which state agencies feel compelled to spend any surpluses before the end of the fiscal year if they are not to lose such funds. Instead, he wisely proposes to let the agencies carry over unspent appropriations from year to year. This change should facilitate more prudent spending. The salary incentives being proposed as an inducement to such economizing should save taxpayers money in the long run.
There's room for wondering, though, about the wisdom of setting aside $4 million in the budget for the Legislature to spend on its own pet projects. The rationale for such a fund is that it would reduce the pressure on the Legislature to cut other programs in order to come up with money for its own priorities. But $4 million doesn't amount to much in a $4.5 billion budget. The danger is that it could be seen as either an insufficient sop or an insulting bribe designed to turn the Legislature into a rubber stamp.
This page will have more to say later about allocations for education and various other specifics of the proposed new budget.
Meanwhile, the robust health of the current Utah economy is clear evidence that this state and its government have been on the right course for quite a few years now.
The challenge now is to maintain and improve upon that performance. The new budget outlined this week comes as an encouraging indication that government in Utah can keep doing a better job without impairing the incentives and attractions that make this state such an outstanding place to work and live.