We’re Not Out of the Woods Yet: Utah’s Budget Dilemmas Will Persist

03 May 2010 Published in What's New?

Utah’s lawmakers and agency leaders have faced the ongoing budget crisis with a mix of program cuts, use of one-time reserves, and small revenue increases. They have shown flexibility and resourcefulness in these difficult times, and proven the value of the state’s careful approach to budgeting.

But we are not out of the woods yet. Underlying structural limitations to Utah’s revenues, due in large part to the narrowing of tax bases during the recent economic boom, guarantee that shortfalls will persist regardless of when economic growth resumes. Over the longer run, population growth will continue to exert pressure on all facets of state government.

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