Utah State budget Earmarks, Debt and Transportation

2014 Policy Guide

Utah State budgetEarmarks, Debt and TransportationPresentation by

Natalie GochnourAssociate Dean, University of UtahChief Economist, Salt Lake Chamber

February 3, 20141Source: Utah Department of Workforce ServicesUtah Job Count

Source: Utah Legislative Fiscal Analyst, 12/17/2013Utah Earmarked Sales Tax RevenueSource: Governors Office of Management and Budget

Utah Net General Obligation Debt per CapitaSource: 2013 Comprehensive Annual Financial Report, Utah Division of Finance, Oct. 23, 2013, p. 228-229Utah Outstanding General Obligation Debt

Source: Governors Office of Management and BudgetSource: Utah Legislative Fiscal Analyst, 12/17/2013Utahs Debt Service Ratio Compared toOther Moodys AAA-Rated StatesFive-Year Budget PositionFY13-FY17Source: Utah Legislative Fiscal Analyst, 12/17/2013Transportation Investment Fund ExpendituresFY14Source: Utah Legislative Fiscal Analyst, 12/17/20139Borrowing for Projected OutflowsEstimated Outstanding Debt & Constitutional Debt Limits

Source: Utah Legislative Fiscal Analyst, 12/17/2013Benefits Principle of TaxationThose who benefit the most from the transportation network should pay the most for its continued operation.Efficient matches supply with the demandCurb overuseReduce wear and tearReduce traffic congestionCombat air pollution

Ex. Someone driving 40 miles to work each day should pay more for roads than somebody who works from home.Share of State & Local Road SpendingCovered by User FeesSource: Tax Foundation and American Petroleum InstituteU.S. Average and Bottom Ten States: 2011Utah ranks 46th lowestFor user fee contribution12Motor Fuel Tax ComparisonsSource: Tax Foundation and American Petroleum InstituteAs of January 201313

Source: US DOT, Summary of Fuel Economy PerformanceAverage Fuel EfficiencyBuying power of motor fuel tax has declined 45% since 1997.

The 24.5 cents is now equivalent to 16.9 cents in inflation-adjusted terms. (Adjusted using CPI-U)Buying PowerSource: Salt Lake Chamber calculations