SALT LAKE CITY (AP) -- Utah legislative leaders who for weeks talked tough about budget cuts have started sounding a more optimistic note about the passage of an essentially flat budget.

Updated revenue projections for the current and upcoming fiscal years will be announced Tuesday morning, and if they increase as legislators expect, budget negotiations will focus on funding growth instead of cutting services and employees.

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Rep. Mel Brown, R-Coalville, the House budget chairman, told The Associated Press he expects the revenues to show enough of an increase in the state's surplus to at least maintain current spending levels.

In January, projections showed a $216 million surplus for Utah. Republican leaders, however, said they need about $300 million to repair the "structural imbalance" caused by one-time funding being used last year for ongoing programs.

Much of that funding came from federal stimulus money and state reserves.

Brown said he thinks the projected surplus will be above that $300 million threshold, but not by much.

Still, the economy seems to be growing, which will get the budget to a comfortable level.

"I think we would all like to see a certain level reached that would let us fix the imbalance and retain last year's numbers," Brown said.

Ron Bigelow, the budget director for Gov. Gary Herbert, agreed the economy is growing, albeit slowly.

"I tend to be a little more cautious, but it is clear the economy is improving," Bigelow said. "There's nothing to indicate the surplus will go down."

In his proposed budget, Herbert used money from the state's Rainy Day Fund to pay for growth in critical areas, including $50 million for public education. Bigelow said he doesn't see the surplus growing enough to cover the imbalance and fund growth.

The optimistic talk from leaders is a change from the first few weeks of the session, when appropriations subcommittees were asking state agencies to submit budgets with 7 percent cuts.

Some of the cuts being discussed were the closure of almost a dozen courthouses, the release of hundreds of prisoners and teacher layoffs.

Those drastic cuts will not happen if the surplus allows for a flat budget, although some cuts are still being proposed. Those include the closure of a couple of state liquor stores and courthouses in urban areas.

Those closures will be determined by the agencies, and will target areas where identical services are nearby.

House Minority Leader David Litvack, D-Salt Lake City, said his caucus prefers the state find ways to cover growth in public education and social services.

"We have to look at these other issues. What gets left on the table? Democrats would have a hard time supporting a budget that doesn't include funding for growth," Litvack said.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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