| 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. 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 Speaker Brad R. Wilson Members Absent: Rep. Andrew Stoddard Staff Present: Jonathan Ball, Fiscal Analyst Steven M. Allred, Deputy Fiscal Analyst Dr. Andrea Wilko, Chief Economist Arielle Gulley, Executive Assistant |
||
|
Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.
|
| 1.Call to Order/Approval of Minutes |
| Chair Last called the meeting to order at 2:11 pm. |
| MOTION:Sen. Stevenson moved to approve the minutes of November 15, 2022.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| 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. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Rep. J. Moss Rep. A. Stoddard |
| 2.Federal/Non-federal Grants and CARES Update |
| Duncan Evans, Managing Director of Budget and Operations, Governor's Office of Planning and Budget (GOPB), Brad Newbold, Federal Assistance Managing Officer, GOPB, and Alex Wilson, Operations Analyst, Office of the Legislative Fiscal Analyst (LFA), presented the Federal/Non Federal Grants Package. |
| 2-Federal/Non-federal Grants Packet, December 2022 |
| MOTION:Sen. Stevenson moved to recommend approval of the federal grants 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 13, 2022.The motion passed with a vote of 18-0-1. | |||
| Yeas - 18 | 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 Sen. E. Vickers Rep. B. Wilson | Rep. A. Stoddard |
| 3.Economic Update |
| Dr. Andrea Wilko introduced the FY 2023 and FY 2024 Revenue Estimates. |
| 3a-Revenue Estimates - December 2022 |
| 3a-Revenue vs. Spending - General and Income Tax Funds |
| MOTION:Sen. Stevenson moved to adopt, under Joint Rule 3-2-402(1)(a)(i), the revised revenue estimates for FY 2023 (column c) and new estimates for FY 2024 (column e) as indicated on the green sheet titled "Revenue Estimates - December 13, 2022".The motion passed with a vote of 18-0-1. | |||
| Yeas - 18 | 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 Sen. E. Vickers Rep. B. Wilson | Rep. A. Stoddard |
| Jonathan Ball introduced and welcomed Kellie Paul and Crystal Young, the Office of the Legislative IT's newest employees. He then introduced Matthew Henderson, LFA's newest employee. |
| Dr. Maddy Oritt, Senior Economist, LFA, presented the Revenue Business Cycle Report for December 2022. |
| 3b-Revenue Business Cycle Report, December 2022 |
| Jonathan Ball provided additional comment on the report. |
| President Adams provided comment on economic indicators. |
| Dr. Maddy Oritt and Nate Talley, Deputy Director and Chief Economist, GOPB, presented the Budget Stress Test for 2022. |
| 3c-Budget Stress Test Presentation 2022 |
| Speaker Wilson and Sen. Escamilla asked clarifying questions. Jonathan Ball, Nate Talley and Maddy Oritt responded. |
| President Adams spoke to the issue. |
| Bidusha Mudbhari, Staff Economist, LFA, presented the FY 2023 and FY 2024 Appropriations Limits. |
| 3d-Memorandum Re: Appropriations Limit for FY 2023 and FY 2024 |
| 4.Obligations and Reserves |
| Bidusha Mudbhari presented on Fiscal Health Check Up: Obligations and Reserves. |
| 4a-Memorandum Re: Fiscal Health Check-Up: Obligations and Reserves, December 2022 |
| Mr. Ivan Djambov, Finance Manager, LFA, presented Fund Balances and Nonlapsing Balances for December 2022. |
| 4bc-Memorandum Re: Fund Balances and Nonlapsing Balances, December 2022 |
| 5.Subcommittee Allocations, Adjustments, and Funding Set-Asides |
| Jonathan Ball presented Subcommittee Allocations, Adjustments, and Funding Set-Asides. |
| 5a-Subcommittee Allocations - December 2022 |
| MOTION:Sen. Stevenson moved to, under joint rule 3-2-402(1)(vii) and (viii), allocate to subcommittees for the 2023 General Session the amounts shown on the buff sheet titled "Subcommittee Allocations - December 2022" and dated today, December 13, 2022. Amounts on this sheet represent ongoing General and Income Tax Fund appropriations made for the current fiscal year (FY 2023).The motion passed with a vote of 16-0-3. | |||
| Yeas - 16 | Nays- 0 | Abs- 3 | |
| 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. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers | Rep. J. Moss Rep. A. Stoddard Rep. B. Wilson |
| Jonathan Ball presented on base budget adjustments. |
| 5b-Base Budget Adjustments, 2023 General Session |
| Rep. Dailey-Provost inquired about Medicaid growth and inflation. Jonathan Ball responded. |
| MOTION:Sen. Stevenson moved to, under Joint Rule 3-2-101(12)(b)(i) and 3-2-402(i)(a)(vii) and (viii), approve the additional spending items for inclusion in base budget bills as shown on the red sheet titled "Base Budget Adjustments, 2023 General Session" and dated today, December 13, 2022.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| 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. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Rep. J. Moss Rep. A. Stoddard |
| Jonathan Ball presented on budget set-asides from free revenue. He then responded to questions from President Adams, Rep. Dailey-Provost, and Sen. Escamilla. |
| 5c-Budget Set-Asides, 2023 General Session |
| Rep. King inquired about set-asides for ongoing tax cuts. Chair Last responded. |
| Speaker Wilson provided comment. |
| Rep. Kwan asked clarifying questions. Chair Last and Jonathan Ball responded. |
| MOTION:Sen. Stevenson moved to, under Joint Rule 3-2-402(v), set aside funding for the items shown on the orange sheet titled "Budget Set-Asides, 2023 General Session" and dated today, December 13, 2022. These items will be considered during the 2023 General Session.The motion passed with a vote of 16-1-2. | |||
| Yeas - 16 | Nays- 1 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Sen. D. Ipson Sen. J. Iwamoto Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Rep. B. King | Rep. J. Moss Rep. A. Stoddard |
| Jonathan Ball presented on available free revenue and proposed intent language for base budget bills. |
| 5d-Available Free Revenue, 2023 General Session |
| 5e-Proposed Intent Language for Base Budget Bills, 2023 GS |
| MOTION:Sen. Stevenson moved to include the intent language provided under tab 5 in the base budget bills.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| 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. V. Peterson Rep. M. Schultz Rep. R. Spendlove Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson | Rep. J. Moss Rep. A. Stoddard |
| 6.Adopt Base Budgets and Direct Preparation of Base Budget Bills |
| Steven Allred introduced the next motions regarding the preparation of base budget bills, compensation bills, and fees bills. |
| MOTION:Sen. Stevenson moved to, under Joint Rule 3-2-402(1)(a)(ix), authorize legislative staff to prepare and number base budget bills for for each appropriations subcommittee and the Executive Appropriations Committee (EAC) as EAC bills to be introduced on the first day of the 2023 General Session. Staff shall include in these bills:1. The subcommittee allocations, base budget adjustments, and intent language adopted in the previous motions;2. Federal Fund, Dedicated Credit, and restricted fund and account amounts that are the lesser of current year ongoing appropriations or agency budget requests;3.Adjustments to nonlapsing balances, transfers, and other dependent amounts as calculated; and4. Accountable Process Budget adjustments adopted by appropriations subcommittees during the interim.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 Income Tax Fund, in order to balance the overall budget.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |
| MOTION:Sen. Stevenson 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 2023 General Session. Staff shall include in this bill funding for 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 2023 General Session.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |
| MOTION:Sen. Stevenson 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 2023 General Session. Staff shall include in this bill the fees, internal service fund rates, and appropriations for the rate impacts that will be considered during the 2023 General Session.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |
| 7.Compensation and ISF Funding Mix Exceptions |
| Dr. Kimberly Madsen, Finance Officer, LFA presented |
| 7-Memorandum Re: Funding Mixes for Compensation Adjustments and ISF Rate Impacts, December 2022 |
| Speaker Wilson asked a clarifying question. Jonathan Ball responded. |
| MOTION:Sen. Stevenson moved to authorize the statutory, federal regulatory, and non-statutory exceptions for the compensation and internal service fund appropriations bills as shown on pages 3 through 5 of the report presented to us today.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |
| 8.Turnover Savings Calculation |
| Mr. Sean Faherty, Finance Manager, LFA, presented on turnover savings calculations. |
| MOTION:Sen. Stevenson moved to adopt the turnover savings calculations as presented to us today and direct staff to use these calculations when preparing compensation related funding adjustments in the 2023 General Session.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |
| 9.Other Business/Adjourn |
| 9a-Memorandum Re: Report on 2022 Study Items by the Public Education Appropriations Subcommittee |
| 9c-Federal Receipts Reporting - FY 2022 |
| 9d-Division of Finance Report on Contribution Dependent Accounts, December 2022 |
| 9e-988 Mental Health Assistance Final Report |
| 9f-Inland Port Annual Report, December 2022 |
| 9b-Elected Official and Judicial Compensation Commission Report, December 2022 |
| Speaker Wilson, President Adams, and Sen. Stevenson recognized Chair Last and Sen. Iwamoto for their service to the State of Utah. |
| Chair Last provided a comment and thanked legislative staff. |
| MOTION:Sen. Stevenson moved to adjourn the meeting at 3:52pm.The motion passed with a vote of 17-0-2. | |||
| Yeas - 17 | Nays- 0 | Abs- 2 | |
| Sen. J. Adams Sen. K. Cullimore Rep. J. Dailey-Provost 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 Sen. E. Vickers Rep. B. Wilson | Sen. L. Escamilla Rep. A. Stoddard |