Gov. Olene S. Walker today announced her fiscal year 2006 budget recommendations, emphasizing fiscal prudence, quality education and quality of life. Through her years of public service the governor has learned and practiced key budgeting priorities: living within the state’s means and maintaining structural balance; maintaining the AAA bond rating through wise debt management; refraining from earmarking revenue; evaluating and proposing a new structure for Utah’s tax policy; and governing for today and tomorrow.
"I have worked diligently this past year to ensure we manage wisely and leave the state budget in good shape," said Walker. "We have had to tighten our belts the past few years and prioritize. We have established strong priorities in education, and we have focused on reserve funds, economic development and quality of life. I hope the Legislature will continue to work to meet these priorities."
The total state budget recommendation for fiscal year 2006 is $8.6 billion, including federal funds. The state tax revenues portion of the total budget is projected to increase by 10.1 percent or $370 million over fiscal year 2005 authorized revenues. Revenue estimates generally lag economic recovery as is demonstrated by the large amount of new money.
To maintain quality education, the governor is recommending a 5 percent increase in the Weighted Pupil Unit (WPU), or $78.6 million. She is also recommending $16 million for a Performance Plus Math Program.
The math program is a follow up to last year’s reading program and is designed to help students in grades four through six perform at grade level by the time they finish the sixth grade.
"The reading program has already seen tremendous success," Walker said. "School districts used blended approaches - from hiring reading coaches to extending kindergarten classes and summer reading programs - to help students master this critical, basic skill. It is imperative we extend our emphasis to other essential skills such as math and writing."
The governor also recommends $6.5 million for the Utah Basic Skills and Competency Test (UBSCT) to provide remediation training for all tenth grade students who don’t pass this test, which is needed to graduate from high school.
Keeping with the priority of maintaining structural balance and strong fiscal prudence, Walker, the original sponsor of the Rainy Day Fund (H.B. 13, 1986), now leaves office recommending the fund receive $72 million.
In order to enhance economic development, Walker recommends $5 million for the Utah Defense Alliance to preserve Hill Air Force Base. She also recommends $4.4 million for the Industrial Assistance Fund.
To help maintain the quality of life Utahns enjoy, the governor is recommending $4 million for the LeRay McAllister Critical Land Conservation Fund and $6.6 million (including federal funds) to the Division of Services for People with Disabilities to reduce the current waiting list.
Walker recommends funding current inmate growth with $10.2 million, thereby providing full-year operation of the dormitory facility at the Draper prison (300 beds) plus the expansion of jail-contracting with the counties (200 beds).
She is also recommending $6.3 million for the Drug Offenders Reform Act (DORA), the first phase of a program to screen and assess offenders for substance abuse problems and then refer them to the proper treatment program to deal with the addiction. This program should help to slow inmate growth in Utah’s prisons and jails.
Walker supports a 3 percent cost-of-living allowance for state employees, plus health and dental insurance premium rate increases, with additional money for market comparability adjustments.
The governor also recommends modest General Obligation bonding: $70 million for the Centennial Highway Fund; $50 million for Capitol restoration; and $19 million for state buildings.
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