DALLAS - Utah lawmakers will have $325 million of new money to apply to state needs when they convene in Salt Lake City Jan. 26, according to Gov. Gary Herbert's estimate.
Herbert's proposed $14 billion budget includes revenue from all sources, including federal funds. That represents about a 5.3% increase from the current budget of $13.3 billion.
After diverting $56 million of on-going funds and $7 million one-time funds for required earmarks, the consensus revenue forecast shows an additional $313 million in new, one-time revenue and $325 million in new, ongoing unrestricted revenue for the upcoming FY 2016 budget cycle, according to Herbert.
"The consensus revenue numbers are the result of our strong and diverse economic growth," said Gov. Herbert. "Our commitment to conservative fiscal principles and to cultivating the nation's most business friendly environment will now allow us to make sound investments to continue our economic expansion and enhance our quality of life."
After two days of organizational meetings this week, the Utah Legislature begins its 60-day session on Jan. 26.
Like other energy-producing states, Utah is expected to feel an impact from falling oil prices. The state's Uinta Basin is a major production area.
"Negative effects of lower oil prices will largely remain on the regional level," according to a report from the Utah Bureau of Economic Research. "It is important to note lower prices will only temporarily restrain the U.S. energy sector. Many producers are hedged against lower prices and a large number of oil fields will remain profitable, even with lower oil prices."
The state legislature will consider suing the federal government to gain control of more than 30 million acres of federal lands that produce oil and gas.
Opponents of the lawsuit say it's a gamble that risks costly litigation with few prospects of success in light of past arguments by other states that were deemed unconstitutional.
In recent years, Arizona, Wyoming, New Mexico, Colorado, Nevada and Idaho have all either enacted, tried to pass or explored legislation asking the federal government to turn over land it controls.
Utah is the only state currently thinking of filing suit. The Utah attorney general's office is awaiting guidance from lawmakers.
Utah is rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
