SALT LAKE CITY — Utah leaders released new revenue estimates on Thursday, saying they show Utah continues to enjoy a strong economy but still has a “structural imbalance” between education and general funds after the collapse of tax reform.

The 2020-21 fiscal year revenue estimates announced on House and Senate floors reveal ongoing general fund revenues from sales taxes are up $50 million, for a projected total of about $92 million. The previously estimated deficit for one-time general fund expenditures is down from $51 million to $12 million — a remaining deficit that will need to be resolved in the adopted budget, according to state leaders.

That’s compared to a “flourishing” education fund, state leaders said, that primarily comes from income taxes. Revenue projections put ongoing available education funds up to $77 million, for a projected total of $518 million. The new estimates also show another $73 million in one-time education fund revenue, upping the available money for one-time expenditures from $250 million to $323 million.

“This year’s revenue estimates are a powerful illustration of Utah’s healthy economy,” Gov. Gary Herbert said in a statement Thursday. “They also meaningfully demonstrate the ways in which we will need to plan for the future in order to accommodate continued growth in our state. I’m grateful to the Legislature for their dedication to long-term thinking and planning when deciding how to spend taxpayer dollars.”

Senate President Stuart Adams, R-Layton, said the revenue numbers show the state’s economy is “strong, vibrant and thriving.”

“We have the lowest unemployment rate in the nation and the best economy in the nation,” Adams said. “If we look at history, it is wise to save when the times are good to prepare for rainy days. Being vigilant to utilize funds we currently have now for tomorrow will enable our economy to stay strong, unemployment to remain low and our state to continue to flourish for generations to come.”

House Speaker Brad Wilson, R-Kaysville, said the state is “enjoying a remarkable run of economic growth” thanks to “the hard work and innovation of Utah’s people and businesses.”

“Our revenue estimates also highlight the divergence in growth rate of the two funds, which will increasingly strain our ability to meet the needs of our state,” Wilson said. “These estimates underscore the need to take the long view and make decisions now that continue to foster economic strength and that prepare us for the challenges that inevitably come.”

A joint news release from Herbert’s, Wilson’s and Adams’ offices stated Utah is “enjoying the longest-running economic upswing in its history.”

“The Legislature remains committed to fiscal responsibility, balancing Utah’s budget and planning for the future,” the news release stated. “This includes basing decisions on consensus forecast and scrutinizing current and proposed spending with a focus on long-term fiscal sustainability. This year’s revenue numbers also allow the state the means to invest in our rainy day funds.”

The Legislature will spend the next few weeks reviewing the revenue figures and determining how to fund “critical items such as transportation, social service programs and public education, to which $80 million has already been dedicated in the base budget,” state leaders said.

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