“Utah’s steady economic progress is evident on several fronts—job creation, a dropping unemployment rate, and additional revenues for the State,” said the Governor. “This surplus is not only encouraging, it’s needed. We can now augment the critical investment we make in education and economic development.”
More than twice the Fiscal Year 2012 surplus ($99 million), this year’s surplus is the result of taxpayers accelerating income into calendar year 2012, which is the State’s Fiscal Year 2013, to avoid higher federal tax rates in calendar year 2013.
From the surplus, approximately $120 million will be transferred to the Education Fund Budget Reserve Account, known as the Education Rainy Day Fund. After automatic transfers, an extra $122 million in one-time monies will be available to appropriate in the 2014 General Session of the Utah State Legislature.
With the statutory transfer from surplus and additional appropriated funds, the combined GF/EF Rainy Day Fund balance is now over $400 million, up from $277 million last year.