Executive Appropriations 1.25.18
I. Federal Tax Reform’s Impact on Utah Revenue
John Valentine, former Senate President and current leader of the Utah Taxpayers Association, reported on the possible impacts of federal tax reform on the state tax coffers.
He presented three scenarios to the committee (see photo) in which state income taxes might be effected, although most of which equaled more money from state income taxes.
(we apologize that the photos are upside but we can't figure out how to fix it!)
Even though the "average Joe" (see picture) will be paying lower over all taxes because their federal rates are lowered, the amount he pays to the state will slightly increase because state income tax applies to net adjusted income after federal taxes, so there is more income available for the state to tax. The "average Joe" making $70,000 with a family of three will pay less overall taxes but $233 more to the state.
He recommended that the legislature wait until real #'s are known, especially where corporate tax reform is concerned. he does think that the legislature could choose to lower individual income taxes now to equal out the deduction on the federal level (this a net zero impact to state income tax).
Additional recommendations (see picture)
Several questions were asked about how different policy changes might impact the overall tax dollars available. Sen. Adams in particular thought that it might be risky to appropriate around $25 million that they're not sure they will have at the end of the day. If capital improvement costs were to come entirely from the endowment the denouement would be zeroed out by 2028.
II. Performance Audit of the Utah Olympic Legacy Foundation
Reviewed some capitol improvements that need to be done to the Olympic park and the costs of improvements. They need around $40 million to get to World Cup standards and around $80 million to get to Olympic level standards (if UT was to host the games again). They presented some funding options.
III. Requests for Appropriation
IV. Agency Budget Reviews // fiscal analyst gave some reports on adjustments to their budgets. The individual entries also reported.
a. Capitol Preservation Board
b. Utah National Guard
c. Department of Veterans’ and Military Affairs