Democrats and Republicans have agreed on money for perhaps the first time since the late 1980s, as the Executive Appropriations Committee restored a would-be $25 million cut to public schools, colleges and health and human services budgets.
"We've come a long way since the early days of this budget process," Senate Minority Leader Mike Dmitrich, D-Price, said Wednesday when the added spending was approved. "When we're in bad times, we try to address the needs of the people."
But the bad times to which Dmitrich refers could get worse.
The state's projected $202 million revenue shortfall this budget year could grow to $250 million by June, said Senate Majority Leader Steve Poulton, R-Holladay.
"That's why we're concerned with spending the Rainy Day Fund," Poulton said. GOP leaders decided not to tap the $120-million savings account, opting instead to take the $25 million in one-time surpluses in the state's transportation fund.
"Fiscal 2003 could be even worse than we thought it could be," he said. "It's going to start raining. This isn't a sprinkle yet."
Poulton's dire forecast isn't shared by House Speaker Marty Stephens and Senate President Al Mansell, who say while they are "nervous" over mid-February revenue updates for this year, they don't see such trouble ahead.
But it is possible lawmakers will have to re-open the current year's budget in early March for more cuts or to plug in one-time money. And Mansell, R-Sandy, wouldn't rule out hitting up the Rainy Day Fund.
"We don't know how deep this trough is," he said.
Stephens, R-Farr West, said $46 million must be cut just to start at the recently approved new 2001-02 spending levels. To find money for state employee health-care increases or pay hikes, even more must be trimmed, he added.
At any rate, money cut now will roll over to next year's base budget, too, along with another $400,000 reduction spread among all agencies, legislative fiscal analyst John Massey said. Holes plugged with one-time money Wednesday must come out of the base budgets next year, too.
On the brighter side, $25 million is expected to be freed up to pay for new state needs.
The state has been struggling with a projected $202 million revenue shortfall. Last week, it approved major budget cuts for every state agency.
Wednesday, GOP caucuses, whose membership outnumbers Democrats by about 2-1, decided to take roadwork surpluses to restore $18.5 million to public education, $5 million to higher education and $1.2 million to health and human services budgets.
Gov. Mike Leavitt had threatened to veto a budget if some money weren't restored, particularly for public schools, through various state savings. He suggested using part of the Rainy Day Fund to plug budget holes, but GOP legislators refused.
Public education is at the heart of the debate. Superintendents, school boards and teachers had said students would suffer if districts spread around $18.5 million in cuts, approved by the state's main budget committee last week. Some believed layoffs could be necessary. Some 80 percent of Iron School District employees even offered to work a day without pay to help ease the pain.
"I am heartened and encouraged by their consideration of the needs of Utah schoolchildren and the obligations school districts are under," State Superintendent of Public Instruction Steve Laing said.
Four newly approved charter schools also will split $226,500 to help them start up. The money came from cash left over in teacher supplies. But districts will have to let go of $10 million in building aid and a $20 million education savings account for enrollment growth. Laing's office is cutting $1.7 million, held back months ago at Leavitt's request.
Higher education had $4.6 million restored to its budgets. Some Senate Republicans had unsuccessfully argued in a closed caucus over whether to reallocate the money to specific colleges or on a per-student basis, Poulton said. Another $367,000 will go to the new Utah College of Applied Technology.
"The committee, of course, will determine how to allocate the money. But we would hope it would be on the same formula that the institution presidents agreed on," said Cecelia Foxley, commissioner for higher education.
College students fear the cuts, which Executive Appropriations puts at about $19 million, will bear out in tuition. They rallied at the Capitol for "reasonable" tuition hikes.
Rep. Patrice Arent, D-South Cottonwood, unsuccessfully attempted a $9 million restoration for higher education, plus another $1.8 million for health and human services programs including drug courts, CHIP, aging services and meals on wheels.
But Health and Human Services did receive a $950,000 restoration for items including the state hospital and the Division of Child and Family Services, plus $250,000 for areas including the division of mental health, substance abuse, services for people with disabilities and aging and adult services.
An attempt to give $300,000 to the state's homeland security office was downed by House GOP leadership. Stephens said his caucus had not had a chance to discuss it. But he did not rule out efforts to reinstate the amount, supported by Gov. Mike Leavitt, when the bill is debated.
The budget bill is expected to be drafted in the next day or so, and be approved soon after. Committees also will begin talking about next year's budget this week.
Contributing: Twila Van Leer
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