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9 LONG TITLE
10 General Description:
11 This resolution encourages counties, cities, towns, and metro townships to consider
12 treating above-trend revenue growth as one-time revenue instead of ongoing revenue.
13 Highlighted Provisions:
14 This resolution:
15 ▸ recognizes the volatility of tax revenue and federal funds received by state and local
16 governments;
17 ▸ recognizes the benefits of treating above-trend revenue growth as one-time revenue;
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19 ▸ encourages counties, cities, towns, and metro townships to treat above-trend
20 revenue growth as one-time revenue instead of ongoing revenue.
21 Special Clauses:
22 None
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24 Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
25 WHEREAS, the business cycle creates fluctuations in state and local government
26 revenues;
27 WHEREAS, tax revenue volatility can increase suddenly and unexpectedly, as seen
28 during the Great Recession and the COVID-19 pandemic, increasing the difficulty of revenue
29 forecasting;
30 WHEREAS, the Great Recession and the COVID-19 pandemic demonstrate that the
31 amount of federal funds received by state and local governments can also fluctuate significantly
32 and unexpectedly;
33 WHEREAS, state and local government tax and budget policies can contribute to or
34 mitigate revenue volatility and its effects;
35 WHEREAS, treating unexpected, or above-trend, revenue growth as one-time money
36 can help protect against the negative effects of revenue volatility;
37 WHEREAS, treating above-trend revenue growth as one-time money can reduce the
38 need for difficult and often inefficient budget choices when revenue declines, including
39 reductions in government services or increased taxes;
40 WHEREAS, treating above-trend revenue growth as one-time money can protect
41 against unsustainable growth in government budgets when revenue increases; and
42 WHEREAS, the Legislature considers treating above-trend revenue growth as one-time
43 money instead of ongoing money for all major tax types and for federal funds when setting the
44 state's budget:
45 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
46 Governor concurring therein, encourage counties, cities, towns, and metro townships in the
47 state to also consider treating above-trend growth in sales and use tax revenue and in federal
48 funds as one-time money instead of ongoing money when setting a budget.