FY 2013 Budget Recommendations GOVERNOR GARY R. HERBERT DECEMBER 12, 2011

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS VISION FOR THE STATE Utah will lead the nation as the best performing economy and be recognized as a premier global business destination

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS OVERVIEW GENERAL FUND/EDUCATION FUND ONGOING REVENUE Total State Budget$12.9b (includes federal funds) General Fund/Education Fund$5.1b (state tax dollars only) New FY 2012 GF/EF One-Time$128.2m New FY 2012 GF/EF Estimate$279.5m

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS Source of State Funds GENERAL FUND AND EDUCATION FUND: FY 2013

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS Source of All Funds ALL SOURCES OF FUNDING: FY 2013

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS Uses of State Funds GENERAL FUND AND EDUCATION FUND: FY 2013

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS Uses of All Funds ALL SOURCES OF FUNDING FY 2013

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS CONSENSUS REVENUE HISTORIC REVENUE ESTIMATES

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS BUDGET ON PRINCIPLE THE FOUNDATION FOR ECONOMIC PROSPERITY PAY AS WE GO LIVE WITHIN OUR MEANS AVOID EXCESSIVE DEBT PREPARE FOR A RAINY DAY

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS BUDGET ON PRINCIPLE NO NEW TAXES ELIMINATE STRUCTURAL IMBALANCE ($52m) MAINTAIN RAINY DAY BALANCE ($232.5m) MAINTAIN AAA BOND RATING THE FOUNDATION FOR ECONOMIC PROSPERITY

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS FOUR CORNERSTONES ESSENTIAL FOR RETURN TO ECONOMIC PROSPERITY EDUCATION JOB GROWTH ENERGY UTAH SOLUTIONS

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 1 st CORNERSTONE EDUCATION An educated workforce is critical for a prosperous economy GOAL: 66% of adult Utahns will have a post-secondary degree or professional certification by 2020

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 1 st CORNERSTONE EDUCATION POLICY PRIORITIES Reading proficiency by end of 3 rd grade Increase post-secondary course completion for high school students Align education with workforce and marketplace demands TOTAL: $3.25b for public and higher education combined

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 1 st CORNERSTONE EDUCATION $111m new funds for public education, maintain base ($2.5b) Public education growth, $40.6m Early intervention programs, $10m BUDGET PRIORITIES – PUBLIC EDUCATION

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 1 st CORNERSTONE EDUCATION Expand online career counseling through utahfutures.org, $500k Expand individualized student technology, $12m Charter school startup funding, $2m Raise WPU 1% to increase teacher salaries BUDGET PRIORITIES – PUBLIC EDUCATION

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 1 st CORNERSTONE EDUCATION $23m new funds, maintain base ($750m) Higher education growth, $3m Performance measures, $5m Additional 20 medical school student slots, $6.5m BUDGET PRIORITIES – HIGHER EDUCATION

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 2 nd CORNERSTONE JOBS Accelerate private sector job creation GOAL: 100,000 jobs in 1,000 days

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 2 nd CORNERSTONE JOBS Strengthen and grow existing Utah businesses, both urban and rural Increase innovation, entrepreneurship, and investment Increase national and international business Prioritize education POLICY PRIORITIES

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 2 nd CORNERSTONE JOBS BUDGET PRIORITIES Reduce unemployment insurance rate; employer tax decrease of $26.4m Expand Business Expansion and Retention (BEAR) program to all rural counties, $300k Business recruitment, $500k Workforce job search, training, and retraining, $20.5m Example: Accelerated Credentialing to Employment (ACE) program for Veterans ($1m)

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 3rd CORNERSTONE ENERGY Innovation + Initiative = ENERGY INDEPENDENCE GOAL: Ensure access to affordable, reliable and sustainable energy

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 3rd CORNERSTONE ENERGY POLICY PRIORITIES Responsible energy resource development Policies and practices to improve air quality Innovation for energy efficiency and development

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 3 rd CORNERSTONE ENERGY BUDGET PRIORITIES Energy Development Office, $700k Appropriate public land access Reasonable permitting Aggressively pursue innovations for energy efficiency and development

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 4 th CORNERSTONE UTAH SOLUTIONS Continue to find Utah solutions for Utah problems

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS 4 th CORNERSTONE UTAH SOLUTIONS POLICY PRIORITIES Medicaid, additional $156.5m (total=$448m from GF) Supplemental funding for State Parks, $2.8 m $30.6m new money for Public Safety and Corrections (total=$412.6m) $60m new money for transportation, infrastructure maintenance

VISION OVERVIEW CONSENSUS REVENUE PRINCIPLES CORNERSTONES: EDUCATION JOBS ENERGY UTAH SOLUTIONS FOUR CORNERSTONES ESSENTIAL FOR RETURN TO ECONOMIC PROSPERITY EDUCATION JOB GROWTH ENERGY UTAH SOLUTIONS