FY 2013 Budget Recommendations

GOVERNOR GARY R. HERBERTDECEMBER 12, 2011

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

VISION FOR THE STATE

Utah will lead the nation as the best performing economy and

be recognized as a premier global business destination

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

OVERVIEW

GENERAL FUND/EDUCATION FUND ONGOING REVENUE

Total State Budget $12.9b(includes federal funds)

General Fund/Education Fund $5.1b(state tax dollars only)

New FY 2012 GF/EF One-Time$128.2m

New FY 2012 GF/EF Estimate$279.5m

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

Source of State Funds

GENERAL FUND AND EDUCATION FUND: FY 2013

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

Source of All Funds

ALL SOURCES OF FUNDING: FY 2013

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

Uses of State Funds

GENERAL FUND AND EDUCATION FUND: FY 2013

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

Uses of All Funds

ALL SOURCES OF FUNDING FY 2013

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

CONSENSUS REVENUE

HISTORIC REVENUE ESTIMATES

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

BUDGET ON PRINCIPLE

THE FOUNDATION FOR ECONOMIC PROSPERITY

• PAY AS WE GO

• LIVE WITHIN OUR MEANS

• AVOID EXCESSIVE DEBT

• PREPARE FOR A RAINY DAY

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

BUDGET ON PRINCIPLE

• NO NEW TAXES

• ELIMINATE STRUCTURAL IMBALANCE ($52m)

• MAINTAIN RAINY DAY BALANCE ($232.5m)

• MAINTAIN AAA BOND RATING

THE FOUNDATION FOR ECONOMIC PROSPERITY

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

FOUR CORNERSTONESESSENTIAL FOR RETURN TO ECONOMIC PROSPERITY

EDUCATION

JOB GROWTH

ENERGY

UTAH SOLUTIONS

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

1st CORNERSTONE

EDUCATION

An educated workforce is critical for a prosperous economy

GOAL: 66% of adult Utahns will have a post-secondary degree or

professional certification by 2020

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

1st CORNERSTONE

EDUCATIONPOLICY PRIORITIES

• Reading proficiency by end of 3rd grade

• Increase post-secondary course completion for high school students

• Align education with workforce and marketplace demands

• TOTAL: $3.25b for public and higher education combined

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

1st CORNERSTONE

EDUCATION

• $111m new funds for public education, maintain base ($2.5b)

• Public education growth, $40.6m

• Early intervention programs, $10m

BUDGET PRIORITIES – PUBLIC EDUCATION

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

1st CORNERSTONE

EDUCATION

• Expand online career counseling through utahfutures.org, $500k

• Expand individualized student technology, $12m

• Charter school startup funding, $2m

• Raise WPU 1% to increase teacher salaries

BUDGET PRIORITIES – PUBLIC EDUCATION

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

1st CORNERSTONE

EDUCATION

• $23m new funds, maintain base ($750m)

• Higher education growth, $3m

• Performance measures, $5m

• Additional 20 medical school student slots, $6.5m

BUDGET PRIORITIES – HIGHER EDUCATION

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

2nd CORNERSTONE

JOBS

Accelerate private sector job creation

GOAL: 100,000 jobs in 1,000 days

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

2nd CORNERSTONE

JOBS

• Strengthen and grow existing Utah businesses, both urban and rural

• Increase innovation, entrepreneurship, and investment

• Increase national and international business

• Prioritize education

POLICY PRIORITIES

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

2nd CORNERSTONE

JOBSBUDGET PRIORITIES

• Reduce unemployment insurance rate; employer tax decrease of $26.4m

• Expand Business Expansion and Retention (BEAR) program to all rural counties, $300k

• Business recruitment, $500k• Workforce job search, training, and

retraining, $20.5m Example: Accelerated Credentialing to Employment (ACE) program for Veterans ($1m)

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

3rd CORNERSTONE

ENERGY

Innovation + Initiative = ENERGY INDEPENDENCE

GOAL: Ensure access to affordable, reliable and sustainable energy

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

3rd CORNERSTONE

ENERGYPOLICY PRIORITIES

• Responsible energy resource development

• Policies and practices to improve air quality

• Innovation for energy efficiency and development

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

3rd CORNERSTONE

ENERGYBUDGET PRIORITIES

Energy Development Office, $700k

Appropriate public land access

Reasonable permitting

Aggressively pursue innovations for energy efficiency and development

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

4th CORNERSTONE

UTAH SOLUTIONS

Continue to find Utah solutionsfor Utah problems

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

4th CORNERSTONE

UTAH SOLUTIONSPOLICY PRIORITIES

• Medicaid, additional $156.5m (total=$448m from GF)

• Supplemental funding for State Parks, $2.8 m

• $30.6m new money for Public Safety and Corrections (total=$412.6m)

• $60m new money for transportation, infrastructure maintenance

VISION

OVERVIEW

CONSENSUS REVENUE

PRINCIPLES

CORNERSTONES:

EDUCATION

JOBS

ENERGY

UTAH SOLUTIONS

FOUR CORNERSTONESESSENTIAL FOR RETURN TO ECONOMIC PROSPERITY

EDUCATION

JOB GROWTH

ENERGY

UTAH SOLUTIONS