| Members Present: Sen. Jerry W Stevenson, Senate Chair Rep. Val L. Peterson, House Chair Sen. Scott D. Sandall, Senate Vice Chair Rep. Walt Brooks, House Vice Chair President J. Stuart Adams Sen. Kirk A. Cullimore Sen. Luz Escamilla Sen. Karen Kwan Sen. Michael K. McKell Sen. Jen Plumb Sen. Kathleen A. Riebe Sen. Chris H. Wilson | Rep. Bridger Bolinder Rep. Jennifer Dailey-Provost Rep. Sahara Hayes Rep. Doug Owens Rep. Candice B. Pierucci Rep. Angela Romero Speaker Mike Schultz Rep. Casey Snider Staff Present: Arielle Gulley, Office Manager Jonathan Ball, Fiscal Analyst Steven M. Allred, Deputy Fiscal Analyst Dr. Andrea Wilko, Chief Economist |
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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 01:26 PM. |
| MOTION:Rep. Peterson moved to approve the minutes of November 18, 2025.The motion passed with a vote of 15-0-5. | |||
| Yeas - 15 | Nays- 0 | Abs- 5 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Rep. J. Dailey-Provost Sen. L. Escamilla Rep. C. Pierucci Sen. J. Plumb |
| 1.Higher Education Construction Inflation and O and M Costs (JR3-2-402) |
| 5-Higher Education Construction Inflation and O and M |
| Sean Faherty, Finance Manager, Office of the Legislative Fiscal Analyst (LFA), and Noah Hansen, Staff Economist, LFA, presented on Higher Education Construction Inflation. |
| Sen. Kwan inquired whether these projects being presented were expected to receive any federal funding. Sean Faherty responded. |
| 2.Public Education Funding Framework (53F-2-208 and 53F-9-204) |
| Ben Leishman, Finance Manager, LFA, and Rachelle Gunderson, Senior Financial Analyst, LFA, presented. |
| 6-Public Education Funding Framework, 2026 General Session |
| Sen. Riebe asked about a potential grant program. Ben Leishman responded. Sen. Cullimore then provided comment. |
| MOTION:Rep. Peterson moved to accept recommendations one through five as outlined in the memorandum with the subject, "Public Education Funding Framework - Growth, Inflation, and Stabilization" to this committee dated December 9, 2025. He further moved to direct staff to prepare the Public Education Base Budget bill consistent with these recommendations and consult with the chairs of the Public Education Appropriations Subcommittee and this committee on any changes. |
| Pierucci spoke to the motion. |
| The motionpassed with a vote 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Rep. B. Bolinder Sen. L. Escamilla |
| 3.Federal/Non-federal Grants |
| Brad Newbold, Federal Assistance Management Officer, Governor's Office of Planning and Budget (GOPB), and Josh Pittman, Financial Analyst, LFA, presented the Federal/Non-federal Grants Packet. |
| 2-Federal/Non-federal Grants Packet, December 2025 |
| MOTION:Rep. Peterson moved to recommend approval of the federal and non-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 9, 2025.The motion passed with a vote of 18-0-2. | |||
| Yeas - 18 | Nays- 0 | Abs- 2 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Sen. L. Escamilla |
| 4.Economic and Fiscal Health Update |
| Travis Eisenbacher, Deputy Chief Economist, LFA, presented an update to the Budget Stress Test. |
| 3a-Budget Stress Testing Report, FY 2026 |
| 3a-Memorandum Re: Budget Stress Testing 2025 |
| Sen. Sandall asked clarifying questions. Jonathan Ball responded. Sen. Riebe then made inquiries into retirement costs. Travis Eisenbacher and Jonathan Ball responded. |
| Alejandra Rodriguez, Staff Economist, LFA, presented the Appropriations Limits for FY 2026 and FY 2027. |
| 3b-FY 2026 and FY 2027 Appropriations Limits |
| Jared Gibbs, Staff Economist, LFA, presented on state's long term obligations and reserves. |
| 3c-Obligations and Reserves, December 2025 |
| Nate Osborne, Financial Analyst, LFA, presented on preliminary fund balances and nonlapsing balances. |
| 3d and e-Preliminary Fund Balances and Nonlapsing Balances, 2025 |
| 5.Utah State University Strategic Reinvestment |
| Joseph Fitzgerald, Finance Manager, LFA, spoke on the strategic reinvestment process and introduced the next speaker. Brad Mortenson, President, Utah State University, then presented the Utah State University Strategic Reinvestment Plan. |
| 4-Utah State University Strategic Reinvestment Plan - Revised |
| Speaker Schultz asked clarifying questions and provided comments. Brad Mortenson responded. Sen. Riebe, Sen. Wilson, and Rep. Snider then provided comment. |
| MOTION:Rep. Peterson moved that the Executive Appropriations Committee indicate preliminary support for Utah State University's reallocation plan and authorize 30 percent of their funds be released by the Utah System of Higher Education, and request that Utah State University provide additional details to the Executive Appropriations Committee regarding reallocated funding and any changes related to the audit before reconsideration.The motion passed with a vote of 18-0-2. | |||
| Yeas - 18 | Nays- 0 | Abs- 2 | |
| Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Rep. B. Bolinder |
| Jonathan Ball commented on value at risk. |
| 6.FY 2026 and FY 2027 Revenue Estimates and Comparison to Long-Term Trends |
| Jonathan Ball introduced the next agenda items. |
| Andrea Wilko presented on the consensus revenue trend analysis. |
| 7-FY 2026 and FY 2027 Revenue Estimates, December 2025 |
| Rep. Romero asked clarifying questions. Andrea Wilko and Chair Stevenson responded. |
| MOTION:Rep. Peterson moved, under Joint Rule 3-2-402, to adopt the revised revenue estimates for FY 2026 (column c) and new estimates for FY 2027 (column e) as indicated on the green sheet titled "Fall Revenue Estimates (in thousands of dollars)" and dated today, December 9, 2025.The motion passed with a vote of 18-0-2. | |||
| Yeas - 18 | Nays- 0 | Abs- 2 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Rep. C. Snider |
| MOTION:Rep. Peterson moved to set aside funding for the income tax reductions resulting from the passage of federal bill H.R. 1 in the amount of $314 million one-time (column c) and $201 million ongoing (column e), as shown on line 5 on the green sheet referenced in the previous motion. |
| SUBSTITUTE MOTION:Rep. Romero proposed a substitute motion and moved that the state change statute to decouple from enrolling conformity for the tax provisions found in H.R. 1, as a result eliminating the tax cut of $314 million in FY 2 26 and $221 million in FY 2 27.The substitute motion failed with a vote of 8-11-1. | |||
| Yeas - 8 | Nays- 11 | Abs- 1 | |
| Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Rep. D. Owens Sen. J. Plumb Sen. K. Riebe Rep. A. Romero | Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Sen. M. McKell Rep. V. Peterson Rep. C. Pierucci Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams |
| MOTION:Rep. Peterson placed the original motion for a vote.The motion passed with a vote of 14-4-2. | |||
| Yeas - 14 | Nays- 4 | Abs- 2 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Sen. K. Kwan Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Rep. S. Hayes Rep. D. Owens Sen. K. Riebe Rep. A. Romero | Sen. J. Adams Sen. M. McKell |
| Jonathan Ball explained the next presentation. |
| Noah Hansen, Staff Economist, presented on revenue trend analysis. |
| 7-Revenue Business Cycle Report |
| 7-Revenue Business Cycle Presentation |
| 7.Subcommittee Allocations, Adjustments, and Funding Set-Asides (JR3-2-402) |
| Jonathan Ball presented subcommittee allocations, adjustments, and funding set asides. |
| 8-Base Budget Changes and Set-Asides, 2026 GS |
| Rep. Owens clarifying questions regarding Medicaid. Jonathan Ball responded. |
| Sen. Riebe made inquiries into the public education fees relief mentioned in the handout. Jonathan Ball and Ben Leishman responded. |
| MOTION:Rep. Peterson moved to under Joint Rule 3-2-101 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" and dated today, December 9, 2025. Set-aside items will be considered during the 2026 General Session.The motion passed with a vote of 17-2-1. | |||
| Yeas - 17 | Nays- 2 | Abs- 1 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Rep. A. Romero Sen. S. Sandall Rep. M. Schultz Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. K. Kwan Sen. K. Riebe | Sen. J. Adams |
| Jonathan Ball presented on subcommittee allocations for the 2026 General Session. |
| 8-Subcommittee Allocations, 2026 GS |
| Rep. Hayes made inquiries into the budget reduction mentioned in the report. Jonathan Ball and Chair Stevenson responded. |
| MOTION:Rep. Peterson moved, under Joint Rule 3-2-402, to allocate to subcommittees for the 2026 General Session the amounts shown on the yellow sheet titled "Subcommittee Allocations, 2026 General Session" and dated today, December 9, 2025. Amounts on this sheet represent ongoing General and Income Tax Fund appropriations made for the current fiscal year (FY 2026), changes approved in the previous motion, and the target associated with a 5% reduction.The motion passed with a vote of 17-1-2. | |||
| Yeas - 17 | Nays- 1 | Abs- 2 | |
| Rep. B. Bolinder Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Rep. A. Romero Sen. S. Sandall Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. K. Riebe | Sen. J. Adams Rep. M. Schultz |
| MOTION:Rep. Peterson moved to waive the requirement in Joint Rule 3-2-402 to set aside an amount equal to the value of any reduction in the retirement amortization rate, pending compensation decisions during the 2026 Generals Session.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Rep. C. Snider Sen. J. Stevenson Sen. C. Wilson | Sen. J. Adams Rep. B. Bolinder Rep. M. Schultz |
| 8.Compensation and ISF Funding Mix Exceptions |
| Laurie Haupt, Operations Analyst, LFA, presented on funding mix exceptions for state employee compensation adjustment and internal service fund rate impacts. |
| 9-Funding Mix Exceptions, 2026 General Session |
| MOTION:Rep. Peterson moved to authorize the statutory, federal regulatory, and non-statutory exceptions for compensation and internal service fund appropriations bills as shown on pages 3 through 7 of the report entitled, "Funding Mixes for State employee Compensation Adjustments and Internal Service Fund Rate Impacts" presented to the committee today.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Sen. J. Stevenson Sen. C. Wilson | Rep. B. Bolinder Rep. M. Schultz Rep. C. Snider |
| 9.Adopt Base Budgets and Direct Preparation of Base Budget Bills (JR3-2-402) |
| Steven Allred requested that the committee pass a motion directing staff to draft base budget bills. |
| MOTION:Rep. Peterson moved, under Joint Rule 3-2-402, 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 2026 General Session. Staff shall include in these bills: 1. The prior year ongoing appropriations and base budget adjustments adopted in the previous motions; 2. Federal Fund, Dedicated Credit, and restricted fund and account amounts that are lesser of current year ongoing appropriations or agency budget requests; 3. Adjustments to nonlapsing balances, transfers, and other dependent amounts as calculated; and 4. 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 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Sen. J. Stevenson Sen. C. Wilson | Rep. B. Bolinder Rep. M. Schultz Rep. C. Snider |
| MOTION:Rep. Peterson 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 2026 General Session. Staff shall include in this bill the 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 2026 General Session.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Sen. J. Stevenson Sen. C. Wilson | Rep. B. Bolinder Rep. M. Schultz Rep. C. Snider |
| MOTION:Rep. Peterson 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 introduces on the first day of the 2026 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 2026 General Session.The motion passed with a vote of 17-0-3. | |||
| Yeas - 17 | Nays- 0 | Abs- 3 | |
| Sen. J. Adams Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Sen. K. Riebe Rep. A. Romero Sen. S. Sandall Sen. J. Stevenson Sen. C. Wilson | Rep. B. Bolinder Rep. M. Schultz Rep. C. Snider |
| 10.Other Business/Adjourn |
| 11a-URS and PEHP Rate Changes, 2026 General Session |
| 11b-Turnover Savings Report, 2026 General Session |
| 11c-Asset and Investment Review Task Force Report |
| 11d-Utah Inland Port Authority Annual Report 2025 |
| 11e-Division of Finance Report on Contribution Dependent Accounts, 2025 |
| MOTION:Rep. Peterson moved to adjourn.The motion passed with a vote of 16-1-3. | |||
| Yeas - 16 | Nays- 1 | Abs- 3 | |
| Sen. J. Adams Rep. W. Brooks Sen. K. Cullimore Rep. J. Dailey-Provost Sen. L. Escamilla Rep. S. Hayes Sen. K. Kwan Sen. M. McKell Rep. D. Owens Rep. V. Peterson Rep. C. Pierucci Sen. J. Plumb Rep. A. Romero Sen. S. Sandall Sen. J. Stevenson Sen. C. Wilson | Sen. K. Riebe | Rep. B. Bolinder Rep. M. Schultz Rep. C. Snider |
| Chair Stevenson adjourned the meeting at 3:44 PM. |