More Surplus Only Intensifies Legislative Negotiations on Taxes

None by KCPW

(KCPW News) Utah's budget surplus keeps growing. The latest figures give lawmakers an extra 140-million dollars to spend, and House Speaker Greg Curtis hopes it will go to tax cuts.

"The Senate felt like they could to $150 million in tax cuts and we wanted $300 million," says Curtis. "Well the new revenue is almost $80 million ongoing, so that helps to really narrow the gap."

But Senate President John Valentine says "not so fast." The majority of those additional revenues come from corporate income taxes and investment income, which fluctuate so dramatically they can't be counted on year after year. So Valentine says the money should go into roads or buildings, but not tax cuts:

"Senate Leadership is going to recommend that we treat the new funds as one-time funds and not build them into programs or permanent tax cuts," says Valentine.

Valentine and Curtis spent several hours yesterday negotiating their differences in tax cuts and spending, but have yet to reach a deal. he Legislature's top appropriations committee meets this afternoon at 5:15 to begin finalizing the budget.

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