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Richard Piatt reporting Even with the third highest tax revenue in Utah history, money is again an issue on Capitol Hill. With surplus revenue projects below expectations, legislators may have to decide between teacher raises, tax cuts, dental care for Medicaid patients and more.
Legislative leaders say it's too early to predict how news that they have $340 million less money will play out. But those who are used to fighting for what they get are ready to battle again.
Here it is for Medicaid benefits. "Overall health, I'm very concerned. But yeah, I'm pretty worried about it," said Utah resident Angela Jensen.
Jensen just qualified for Medicaid insurance--the first time she's had dental coverage in years.
Covering 21,000 Utahns on Medicaid would cost $2.8 million. From one of the most luxurious rooms in the Capitol, this group says it isn't much. "Everything we're asking for, in the scheme of things, is really quite modest," said Judi Hilman, with the Utah Health Policy Project.
Very soon, lawmakers will not only decide on that, but on the size of teacher and state employee raises, whether there will be tax cuts, and more.
Any tax cut would probably come in the form of property taxes, but Rep. Wayne Harper has another idea. House Bill 391 would drop property taxes by $610 million statewide and make up the difference by raising the sales tax on non-food items by 1.65 percent. The idea is to fund education a different way. "This is a shift, but it's property tax equalization for schools," Harper explained.
But there is sharp opposition to this change in tax policy, notably in the Senate. The legislative body doesn't like funding education with the regressive, volatile sales taxes.
Retailers aren't thrilled with the idea either. "It will definitely hurt sales, especially in border communities where it isn't that long of a drive to go across the border," said Jim Olsen, of the Utah Retailers Association.
They're trying for creative solutions at the Capitol, but it still doesn't change one thing: lawmakers aren't going to say "yes" to everything that involves money.
Lawmakers will start making hard decisions about the budget within the next week.
