Tax and Budget

Kids Count Utah: A Data Book on the Measures of Child Well-Being in Utah, 2021 is the first glance at the effects of the COVID-19 pandemic on Utah’s children. Please click on the button below for the full report. 

2021 UTAH KIDS COUNT DATA BOOK

Children under the age of 18 make up a third of the state’s population. Not surprisingly, Utah children and their families faced additional challenges as a result of living through a global pandemic.

Unfortunately, over 10 percent of Utah children are experiencing poverty. Additionally, since 2019 Utah saw an increase of over 4,000 additional children considered to be in Intergenerational Poverty (IGP). More children caught in a cycle of IGP is concerning as it could mean that their own children may continue that same cycle if their economic situation does not improve.

Providing a quality education to children during the pandemic continues to be a challenge. The most recent data shows that student proficiency assessment results decreased over the past year. And data also shows that many children are not receiving the mental health treatment they need. A new data indicator shared in the 2021 data book looked at access to mental health. The data collected from the National Survey of Children’s Health shows that approximately 60% of three- to 17-year-olds struggling with mental health are not receiving treatment.

Voices for Utah Children hopes that the yearly KIDS COUNT data book project and the publication of Measuring of Child Well-Being in Utah continues to be a valuable resource that can provide guidance to both policymakers and the general public on how to improve the lives and futures of Utah children.

Published in News & Blog

We appreciate the many legislators that supported bills affecting children. In summary, it WAS a good year for kids, but we still have plenty to do and we look forward to working together to #investinutahkids!

Early Childhood

Early childhood care and education had several key wins. The legislature approved:

  •  $7m in new funding for Optional Enhanced Kindergarten (which many districts use, with other funding sources, to offer full-day kindergarten)

  • $3m in new funding for School Readiness grants (to support high-quality preschool programs)

  • $5m in newly restored funding for preK-3 teacher professional development.

  • In addition, new legislation directed expansion in eligibility for working families to receive state childcare support, and several bills aimed to create efficiencies and financial stability for the childcare providers these working families rely on. 

Juvenile Justice

In the area of Juvenile Justice, legislators approved several bills that continue the state’s effort to refine ongoing efforts to reform and improve the juvenile justice system, which included:

  • A bold bill outlining and clarifying the Miranda rights of youth who are interrogated by police (ensuring that either parents or attorneys are present for such questioning.

  • An innovative pilot program to offer youth in secure care access to college courses through Dixie State University.

  • Finally, school-based discipline and the role of School Resource Officers (SROs) received some attention, with legislators giving a moratorium on criminal enforcement of state truancy laws during the remaining months of the pandemic and providing additional direction with regard to SRO training in public schools. 

Health

We were thrilled to see our Legislature take significant steps to prioritize children’s health coverage this Session and reduce Utah’s too-high number of uninsured children.

  • House Bill 262 (Representative Welton) provides ongoing funding for CHIP/Medicaid outreach so that more families can connect with affordable health insurance options for their kids. In addition, Senate Bill 158 would have removed barriers to health insurance, so all Utah children could get covered and keep their coverage.

  • In addition to children’s coverage, we saw important steps forward for children’s access to mental health this legislative Session including HB 337, sponsored by Representative Eliason, which will allow more early childhood providers to receive valuable training in infant mental health and also strengthen statewide systems to respond to the mental health needs of young children.

  • The legislature also made changes to ensure that funding for Utah’s maternal mental health program and awareness campaign were made permanent; thanks to Representative Dailey-Provost for championing this change for families.

  • Finally, the legislature also passed a bill that will make it easier for kids to access preventive dental health care. Senate Bill 103, sponsored by Senator Todd Weiler, allows dental hygienists to bill Medicaid, which will help promote greater access to dental care in school-based and childcare settings. 

Cover All Kids Campaign Update

Senate Bill 158 passed the Senate with broad support, but unfortunately it was not funded. We look forward to continuing to support the bill sponsor, Senator Luz Escamilla, and floor sponsor, Representative Francis Gibson, to get this important bill across the finish line next year.

Continuous Medicaid Eligibility Update

Unfortunately, the Legislature did not restore state funding for continuous eligibility for children on Medicaid ages 0-5. Continuous eligibility was funded in the 2020 General Session but eliminated as part of budgetary cuts over the summer. Continuous eligibility guarantees children will have a year of stable Medicaid coverage, as they already have with CHIP. The good news is that thanks to temporary federal requirements, all children currently have this option. However, when the federal public health emergency ends, this option will end too, which could lead to significant loss and disruptions in children’s coverage if state funding is not restored. This past year has shown us just how vital it is that all children and families across Utah have access to health care and coverage. Stable, affordable health coverage for all Utahns will be critical to our state’s ability to rebound and recover.

Other Legislative Priorities 

During this past legislative session, we were happy to support a number of bills that are “good for kids” outside of our main policy priorities including the following bills that include policies that we will continue to work on this upcoming year!

  • We supported and are glad to continue working with the International Rescue Committee on supporting our immigrant and refugee families through HCR 22: Concurrent Resolution Celebrating the Contributions of Multilingual and Multicultural Families to Utah Schools. 
  • HB 338: School District Voter Eligibility Amendments would have created a pathway for school districts to choose whether students age 16-17 can vote in their local elections. It was led by a young person, Dhati Oomen, but unfortunately did not pass. We will continue to further advocate for greater youth civic engagement through this bill and beyond.

  • Lastly, we supported and advocated for SB 214: Official Language Amendments as a positive first step to ensure we have greater language inclusion in our state. While we recognize that this is not a full repeal of the 2000 “English-only” law, this bill does remove funding restrictions and “official communications that exist” while keeping English as the official language in place.  We will continue to work on ensuring this law is repealed completely in the coming year.

Tax and Budget

Tax cuts were a big item of discussion, and there were three tax cuts passed:

  • There was an $18 million Social Security Income Tax Credit

  • $24 million Military Retirement Income Tax Credit

  • $55 million Tax Cut tied to the personal exemption related to the dependent tax credit.  

Voices opposed these three items as they were primarily a benefit to the top 40% of taxpayers and excluded the lowest-income 40% almost entirely.  

We were also advocating for a $7 million Earned Income Tax Credit equal to 10% of the federal EITC targeted to Utahns in intergenerational poverty. This was passed in December 2019 as part of the tax restructuring law that was repealed in the 2020 Session. Lastly, there were two bills to lower the State Income Tax Rate, which did not pass. We were opposed to both bills for a number of reasons.  The cuts would have led to a more regressive tax structure and depriving us of much needed future revenues.

We have many unfunded needs and it is our opinion that we should not cut taxes any further until we address those needs and provide the required funds.

>> Check out our Facebook page for FB Live updates of each policy area. 

Published in News & Blog
February 24, 2021

The High Price of Lower Taxes

Legislative leaders have said that 2021 should be “the year of the tax cut.” Numerous public opinion surveys show that Utahns disagree. This may come as a surprise to policymakers, who have been in the habit of handing out tax break after tax break for decades.

But there seems to be an increasing public awareness that Utah is now paying a price for decades of tax cutting that have left us with the lowest overall tax level in 50 years relative to Utah personal income.

UTAH'S URGENT UNMET NEEDS

We all like being able to pay less in taxes. But there is a growing understanding that tax cuts are leaving us unable to address the long list of urgent unmet needs in education, infrastructure, social services, air quality, public health, and many other areas that affect our standard of living and quality of life. All of these issues will shape the Utah that our children will one day inherit. 

Outlined below are some examples of the urgent unmet needs in Utah. 

Early Care and Education

Amount

Unmet Need

$500-600 Million/Year

Envision Utah estimates that we need to invest an additional $500-600 million each year just to reduce teacher turnover, where we rank among the worst in the nation. 

Our leaders’ unwillingness to solve our education underinvestment problem is why our high school graduation rate is below the national average (after adjusting for demographics) and our younger generation of adults (age 25-34) have fallen behind their counterparts nationally for educational attainment at the college level (BA/BS+).

$52.5 Million/Year Voices for Utah Children estimates that it will cost $52.5 million to make full-day Kindergarten available to all Utah families who would choose to opt in to it.
$1 Billion Well over $1 billion is one estimate for a much needed comprehensive system of early childhood care and education (pre-k) in Utah.

 

Health

Amount

Unmet Need

$59 Million/Year

It would cost Utah about $59 million each year to cover all of our 82,000 uninsured children.

The longstanding preference for tax cuts over covering all kids is why we rank last in the nation for covering the one-in-six Utah kids who are Latinx and why the state as a whole ranks in the bottom 10 nationally for uninsured children.

 

Human Services

Area 

Unmet Need

Mental Health & Substance Abuse Treatment

Utah ranks last in the nation for mental health treatment access, according to a 2019 report from the Gardner Policy Institute.

A 2020 report from the Legislative Auditor General found that Utah’s Justice Reinvestment Initiative had failed to achieve its goal to reduce recidivism -- and actually saw recidivism rise -- in part because “both the availability and the quality of the drug addiction and mental health treatment are still inadequate.” (pg 51)

Disability Services

The DSPD disability services waiting list has doubled in the last decade from 1,953 people with disabilities in 2010 to 3,911 in 2020.

The FY20 $1 million one-time appropriation made it possible to provide services to 143 people from the waiting list.  

Domestic Violence The Utah Domestic Violence Coalition 2017 Needs Assessment identified insufficient funding for shelters, affordable housing, child care, legal representation, and mental health and substance abuse treatment services as major obstacles to protecting women from domestic violence. 
Seniors

The official poverty measure undercounts senior poverty by about a third because it does not consider the impact of out-of-pocket medical expenses.

2018 study found that seniors spent $5,503 per person on out-of-pocket medical expenses in 2013, making up 41% of their Social Security income. (For most seniors, Social Security is the majority of their income, and it makes up 90% or more of income for 21% of married couples and about 45% of unmarried seniors.)  

 

Infrastructure, Environment, and Housing

 Area

Unmet Need

Infrastructure

The American Society of Civil Engineers gives Utah a C+ grade for infrastructure in its December 2020 report

The Utah Transportation Coalition has identified a funding shortfall of nearly $8 billion over the next two decades.

Air Quality  The Wasatch Front ranks as the 11th worst air quality in the nation for ozone and 7th worst for short-term particle pollution
Housing

Affordable housing units fall 41,266 units short of meeting the need for the 64,797 households earning less than $24,600. Among extremely low-income renter households, 71% pay more than 50% of their income for housing, which is considered a severe housing burden.

The FY21 affordable housing appropriation request for $35 million from Sen. Anderegg, which was already just a small step in the right direction, was reduced to just $5 million.

 

WHY TAX CUTS ARE A BIG DEAL

Some legislators have said to us, "What's the big deal with $100 million of tax cuts out of a $22 billion budget?".

The big deal is that we’ve been cutting, on average, about $100 million every single year for the last 25 years.

Voices for Utah Children’s research has found that tax cuts from the last 25 years has left us short $2.4 billion each year, amounting to an 18% cut to public revenues.

One could even call us a “slow-motion Kansas” because in 2012 they cut taxes overnight by 15%, leading to an economic slump and political backlash that saw the Republican legislature reverse the cuts in 2017 and the public elect a Democratic governor in 2018.

But here in Utah, we’re like the proverbial frog in the pot of water heating on the stove. The devastating impacts of these revenue reductions have been slow and incremental, so we’ve come to accept as normal a state of affairs that Kansans quickly reversed.

Instead of figuring out the fairest way to restore some of those lost revenues so we can address our most urgent challenges, Utah’s political leadership continues to pass new tax cuts every year, generally skewed toward the top of the income scale.

For example, Voices for Utah Children analyzed two of the tax cuts proposed this year and found that they excluded lower-income Utahns completely and mostly went to the highest-income households – even though their supporters said publicly that they are intended to help low- and middle-income Utahns.

Public opinion surveys conducted last year by the Deseret News and Hinckley Institute, by the Utah Foundation, and by Envision Utah all found a strong popular preference for public investment over tax cuts.

Same thing with surveys this month by the Deseret News-Hinckley Institute and by Voices for Utah Children.

Breaking old habits can be hard. As is often the case, the public appears to be ahead of our political leaders. But let's hope that they too will eventually come to appreciate the wisdom of their constituents, who are increasingly aware of the high price Utah is paying for lower taxes.


Utah has been fortunate in weathering the current recession. This gives us a unique opportunity to be able to make smart long-term investments at a time when other states are cutting budgets. As a State we need to take advantage of this situation and invest in Utah kids, not tax cuts.

THIS OP-ED APPEARED IN THE SALT LAKE TRIBUNE ON MARCH 1, 2021

Published in News & Blog
February 22, 2021

Tax Cut Survey Results

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