| Members Present: Sen. Jerry W. Stevenson, Senate Chair Rep. Bradley G. Last, House Chair Sen. Don L. Ipson, Senate Vice Chair Rep. Robert M. Spendlove, House Vice Chair President J. Stuart Adams Sen. Kirk A. Cullimore Sen. Gene Davis Sen. Luz Escamilla Sen. Jani Iwamoto Sen. Karen Mayne Sen. Ann Millner Sen. Evan J. Vickers | Rep. Jennifer Dailey-Provost Rep. Brian S. King Rep. Karen Kwan Rep. Jefferson Moss Rep. Val L. Peterson Rep. Mike Schultz Rep. Andrew Stoddard Speaker Brad R. Wilson Staff Present: Jonathan Ball, Fiscal Analyst Steven M. Allred, Deputy Fiscal Analyst Dr. Andrea Wilko, Chief Economist Arielle Gulley, Executive Assistant |
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Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.
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| Chair Stevenson called the meeting to order at 2:09 PM. |
| 1.Call to Order/Approval of Minutes |
| MOTION:Rep. Last moved to approve the minutes of November 16, 2021 at 2:00 PM and November 16, 2021 at 4:30 PM.The motion passed with a vote of 16-0-4. | |||
| Yeas - 16 | Nays- 0 | Abs- 4 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. J. Adams Sen. K. Cullimore Rep. M. Schultz Rep. R. Spendlove |
| 2.Federal/Non-federal Grants and CARES Update |
| Taylor Kauffman, Federal Assistance Management Officer, Governor's Office of Planning and Budget (GOPB), and Alex Wilson, Financial Analyst, Office of the Legislative Fiscal Analyst (LFA) presented the report, "Federal/Non-federal Grants Packet, December 2021." |
| 2-Federal/Non-federal Grants Packet, December 2021 |
| MOTION:Rep. Last moved to recommend approval of the federal grant as shown in the packet entitled, "Federal/Non-Federal Grants Review and Approval" under the heading, "Grants Requiring EAC Review and Recommendation" dated today, December 7, 2021.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. K. Cullimore Rep. M. Schultz Rep. R. Spendlove |
| Duncan Evans, Managing Director of Budget Operations (GOPB) provided an update on COVID budget and spending. |
| 2-COVID-19 State Funds and CARES Act CRF, November 30, 2021 |
| 3.Fiscal Health Check-up: Obligations and Reserves |
| Bidusha Mudbhari, Staff Economist, LFA, and Amanda Kilian, Financial Analyst, LFA, presented certain of the State’s obligations and reserves that are shown on the office’s Fiscal Health Dashboard. |
| 3-Memorandum Re: Fiscal Health Check-Up: Obligations and Reserves, December 2021 |
| Rep. Last inquired about sick leave liability. Steven Allred and Jonathan Ball responded. |
| 4.Economic Indicators Update: |
| Dr. Andrea Wilko introduced the topic and discussed revenue estimates. |
| 4-Economic Update - December 2021 |
| 4-Memorandum Re: Economic Indicators Update, December 2021 |
| 4a-Available Revenue, 2022 General Session |
| 4a-Revenue Estimates - December 2021 |
| 4b-Revenue Business Cycle Report, December 2021 |
| 4c-Issue Brief - 2021 Interim - 2021 Long-Term Budget |
| 4d-Memorandum Re: Appropriations Limit for FY 2022 and FY 2023 |
| President Adams commented on spending. |
| Dr. Maddy Oritt, Sr. Economist, LFA, presented the Revenue Trend report and long-term budget. |
| Sen. Davis inquired about federal infrastructure dollars being taken into account. |
| Rep. Dailey-Provost asked for clarification on revenue and expenditure estimates. Dr. Maddy Oritt, Jonathan Ball, and Dr. Andrea Wilko responded. |
| Speaker Wilson asked the presenters to share their thoughts on future revenue and expenditure trends. Dr. Andrea Wilko and Dr. Maddy Oritt responded. Speaker Wilson then shared his thoughts on spending. |
| President Adams shared thoughts on spending. |
| MOTION:Rep. Last moved, under Joint Rule 3-2-402(1)(a)(i), to adopt the revised revenue estimates for FY 2022 (column c) and new estimates for FY 2023 (column e) as indicated on the green sheet titled, "Revenue Estimates - December 2021" and dated today, December 7, 2021.The motion passed with a vote of 18-0-2. | |||
| Yeas - 18 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. M. Schultz |
| MOTION:Rep. Last moved, under Joint Rule 3-2-402(a)(a)(ii), to treat $250 million of ongoing FY 2023 revenue estimate as one-time for the purpose of budgeting, broken out as follows: Education Fund: $200 million, and General Fund: $50 million.The motion passed with a vote of 18-0-2. | |||
| Yeas - 18 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. M. Schultz |
| Bidusha Mudbhari presented on appropriation limits |
| Jonathan Ball discussed additional constraints regarding spending. |
| 5.Subcommittee Allocations, Adjustments, and Funding Set-Asides |
| Jonathan Ball presented on base budget changes and subcommittee allocations. He then responded to questions from Sen. Iwamoto, President Adams, and Rep. Kwan. |
| 5-Base Budget Changes and Set-Asides, FY 2022-2023 |
| 5-Subcommittee Allocations - December 2021 |
| MOTION:Sen. Mayne moved to reduce the $37 million for Capital Improvements on line 16 of the red sheet to $12 million, keeping capital improvements at 1.3%, and reallocate the $25 million differential to a new set-aside called "Alternative Fuel Vehicles/Charging/ASPIRE." She then spoke to her motion. |
| Chair Stevenson shared comments on the motion. |
| Sen. Escamilla shared her thoughts on the motion's impact on infrastructure and the inland port. |
| Rep. Last provided input on the motion. |
| Sen. Mayne summed on her motion. |
| Sen. Mayne's motion failed with a vote 8-12-0. | |||
| Yeas - 8 | Nays- 12 | Abs- 0 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Sen. K. Mayne Rep. A. Stoddard | Sen. J. Adams Sen. K. Cullimore Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| MOTION:Rep. Dailey-Provost moved to eliminate the $57 million for above-target Rainy Day Fund Deposit on line 12 of the red sheet and that a new item be added to the set-aside list called, "Housing and Homeless" for $57 million. She then spoke to the motion. |
| Sen. Vickers shared his thoughts on the Rainy Day Fund and the motion. |
| Jonathan Ball clarified the state of the Rainy Day Fund. |
| Rep. Schultz spoke against the motion. |
| Rep. Dailey-Provost summed on her motion. |
| Rep. Dailey-Provost's motion failed with a vote 8-11-1. | |||
| Yeas - 8 | Nays- 11 | Abs- 1 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Sen. K. Mayne Rep. A. Stoddard | Sen. J. Adams Sen. K. Cullimore Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers | Rep. B. Wilson |
| MOTION:Sen. Escamilla moved to eliminate the $5 million for Public Lands Litigation on line 22 of the red sheet and that a new item be added to the set-aside list for "Services Related to Children" for $5 million. She then spoke to the motion. The motion failed with a vote of 8-11-1. | |||
| Yeas - 8 | Nays- 11 | Abs- 1 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Sen. K. Mayne Rep. A. Stoddard | Sen. J. Adams Sen. K. Cullimore Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers | Rep. B. Wilson |
| MOTION:Rep. Stoddard moved to take the $5 million on line 22 of the red sheet and move it to line 29, Law Enforcement Compensation, as one-time bonuses to retain Attorney General staff. He then spoke to the motion.The motion failed with a vote of 8-11-1. | |||
| Yeas - 8 | Nays- 11 | Abs- 1 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Sen. K. Mayne Rep. A. Stoddard | Sen. K. Cullimore Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Sen. J. Adams |
| MOTION:Sen. Iwamoto moved to reduce $40 million from Prison Debt Retirement on line 9 of the red sheet and that the $40 million be reallocated to two items: an additional $38 million to line 28 to raise the WPU increase from 5% to 6%, and $2 million ongoing to Arts and Capital Grants on line 21 to fund future capital grants. She then spoke to the motion. |
| Sen. Vickers asked for clarification on the proposed movement of the funding. Sen. Iwamoto responded. |
| Sen. Iwamoto's motion failed with a vote 8-11-1. | |||
| Yeas - 8 | Nays- 11 | Abs- 1 | |
| Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Sen. K. Mayne Rep. A. Stoddard | Sen. J. Adams Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Sen. K. Cullimore |
| MOTION:Rep. Last moved, under Joint Rule 3-2-402(1)(a)(vii) and (viii), to approve the additional spending items for inclusion in base budget bills as shown on the red sheet titled, "Base Budget Changes and Set-Asides, FY2022-2023" and dated today, December 7, 2021. |
| Rep. Schultz spoke in favor of the motion. |
| Rep. Last's motion passed with a vote 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. K. Cullimore |
| MOTION:Rep. Last moved, under Joint Rule 3-2-402(1)(vi) and (vii), to allocate to subcommittees for the 2022 General Session the amounts shown on the yellow sheet titled, "Subcommittee Allocations - December 2021" and dated today, December 7, 2021, plus any adjustments for items on the red sheet we just approved. Amounts on the yellow sheet represent ongoing General and Education Fund appropriations made for the current fiscal year (FY 2022).The motion passed with a vote of 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. K. Cullimore |
| 6.Public Education Appropriations Subcommittee Report on At-Risk and Equalization |
| Sen. Fillmore, Rep. Eliason, Ben Leishman, Finance Manager, LFA and Emily Willis, Financial Analyst, LFA, presented recommendations made by the Public Education Appropriations Subcommittee. |
| 8-Memorandum Re: Report of Public Educ. Appropriations Subcommittee Recommendations Required in Statute |
| Sen. Millner expressed gratitude to the Public Education Appropriations Subcommittee co-chairs. |
| 7.Direct Preparation of Base Budget Bills |
| MOTION:Rep. Last moved, under Joint Rule 3-2-402(1)(a)(viii), to authorize legislative staff to prepare and number base budget bills for each appropriations subcommittee and the Executive Appropriations Committee (EAC) as EAC bills to be introduced on the first day of the 2022 General Session Staff shall include in these bills: 1. The subcommittee allocations and the base budget adjustments adopted in the previous motions; 2. Federal Fund, Dedicated Credit, Restricted fund and account amounts that are the lesser of current year ongoing appropriations or agency budget requests; and 3. Adjustments to nonlapsing balances, transfers, and other dependent amounts as calculated.In consultation with the Co-Chairs of the Executive Appropriations Committee, staff may make any technical changes necessary, including balancing between the General Fund and Education Fund, in order to balance the overall budget.The motion passed with a vote of 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Rep. M. Schultz |
| MOTION:Rep. Last moved to authorize legislative staff to prepare and number the State Agency and Higher Education Compensation Appropriations act as an EAC bill to be introduced on the first day of the 2022 General Session. Staff shall include in this bill funding for the benefit cost changes recommended by the Utah Retirement Systems and Public Employees Health Program, other benefit rate adjustments, adjustments to termination pools as recommended by the Board of Trustees of the State Post-Retirement Benefits Trust, and a placeholder 1% labor market salary increase pending a final decision during the 2022 General Session. The motion passed with a vote of 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Rep. M. Schultz |
| MOTION:Rep. Last moved to authorize legislative staff to prepare and number the State Agency Fees and Internal Service Fund Rate Authorization and Appropriations act as an EAC bill to be introduced on the first day of the 2022 General Session. Staff shall include in this bill the fees, internal service fund rates, and appropriations for rate impacts that will be considered during the 20022 General Session. The motion passed with a vote of 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Rep. M. Schultz |
| 8.Compensation and ISF Funding Mix Exceptions and 401(k) Funding |
| Kimberly Madsen, Financial Analyst, presented on compensation and internal service fund funding mix exceptions. |
| 7-Memorandum Re: Funding Mixes for Compensation Adjustments and Internal Service Fund Rate Impacts |
| Jonathan Ball made clarifications regarding the handouts. |
| 7-Issue Brief - 2021 Interim - 401(k) Match |
| MOTION:Rep. Last moved to authorize the statutory, federal regulatory, and non-statutory exceptions for compensation and internal service fund appropriations bills, as shown on pages 3-5 of the report presented today, December 7th, 2021. The motion passed with a vote of 19-0-1. | |||
| Yeas - 19 | Nays- 0 | Abs- 1 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Rep. A. Stoddard Sen. E. Vickers Rep. B. Wilson | Sen. G. Davis |
| 9.Legislative Compensation Commission Report |
| Ron Mortenson, Chair, Legislative Compensation Committee (LCC) and Jennifer Seelig, Vice Chair, LCC, presented their report. |
| 9-Report of the Utah Legislative Compensation Commission for 2022 GS |
| Rep. King inquired how the commission's recommendation would be implemented. Jonathan Ball responded. |
| Jennifer Seelig discussed the committee's recommendation related to constituent work. |
| Chair Stevenson provided comment. |
| 10.Other Business/Adjourn |
| MOTION:Rep. Last moved to adjourn.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. G. Davis Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers | Rep. M. Schultz Rep. A. Stoddard Rep. B. Wilson |
| Chair Stevenson adjourned the meeting at 3:50 PM. |