Joe Levi:
a cross-discipline, multi-dimensional problem solver who thinks outside the box – but within reality™

Week Five Update

Dear Neighbors,

Week Five is a special week, and not just because it marks two weeks until the end of the session! This is the week we receive revenue estimates that dictate how much money the State has to spend and frames the final two weeks of budget negotiations. The State forecasts revenue in order to build a budget. Since we are to a certain extent spending future money not yet in the bank, it is very important that the estimates are accurate and that we budget conservatively so we don’t have to reopen the budget at a later date.

Revenue Projections

Revenue projections week has been a sobering time the past few years. Our revenue projections have been highly unstable since early 2008, which made it very difficult to craft reliable budgets. Just when we thought we had balanced the budget, we would learn that revenues had declined again, necessitating further cuts. Mid-fiscal year budget cuts are always difficult for departments to absorb because some funds are already “under contract” and can’t be cut. Departments then end up cutting “available” items, which might not be the best place to cut, just the most accessible. The revenue projections from Week Five of the 2010 Session showed that the fiscal period from November 2009 through February 2010 was stable for the first time in many quarters and showed that we have reached the bottom of the financial decline.

This year the numbers are much more positive and show we are indeed on the slow track to financial recovery. Our early session estimates showed that we were short $313 million without taking into account inflation or growth. Pre-session numbers projected only $216 million in new revenue. This week’s estimates show $47 million in additional revenue growth making our total growth $263 million. These numbers are all on-going revenue sources.

After doing the math with the new revenue growth and our liabilities, we are left about $50 million short of meeting our on-going needs. This is a much better situation than the one we found ourselves in at the beginning of the budget process. However, that doesn’t mean we are on budget easy street.  In addition to the now $50 million shortfall, we must also consider growth and inflation in Medicaid and public education which will require roughly $120 million combined in additional funding. We will now be able to reconsider budget cuts with a laser-like focus rather than the swiping across the board cuts that seemed necessary at the beginning of the session.

As Legislators we will be carefully considering the remaining budget questions over the next few weeks, but rest assured the financial picture is much rosier than it has been the past few weeks.

Immigration
Here is an update on two of the many bills regarding Immigration Reform making their way through the Legislature:

HB 70 the enforcement piece-works to target and potentially deport those who are here illegally and committing the worst crimes in our society. It is an important bill that says we will not tolerate undocumented criminals. I voted in favor.

HB 253 is the E-Verify bill and is the best way to actually deter illegal immigration. It says to illegal immigrants, we value an orderly, lawful process if you want to be here and work and provides a significant deterrent to being here illegally. I voted in favor.

Press

Here are two articles I wrote this week for local newspapers:

Though things move quickly on the Hill, I welcome anyquestions or comments from you, especially during the legislative session. I can be reached by email at bradwilson@utah.gov or by phone at the Capitol (801) 538-1029. The Legislative Home Page, www.le.utah.gov, features links to proposed bills, live audio and visual feeds of legislative debate and committee meetings and contact information for all members of the Legislature. Check it out during the session to see what I’m up to at the Capitol. Stay tuned for more updates as the Legislature moves into Week Six.

Thank you for the opportunity to serve as your representative.

Sincerely,
Representative Brad Wilson

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