SALT LAKE CITY (AP) – Gov. Jon Huntsman proposed a $10.7 billion budget Tuesday, (Dec. 12, 2006) the largest in state history, with much of it dedicated to education.
Huntsman’s plan for the fiscal year that begins July 1 raises spending by 6.7 percent and includes surplus revenue of $1.6 billion in 2007 and 2008.
Huntsman’s spending priorities rest with education. He’s proposing $3.4 billion for K-12 and $1.2 billion for colleges and universities.
Huntsman is proposing $7.5 million for all-day kindergarten for low-income students, $25 million for a one-time teacher bonus and a 7 percent increase in per-student spending designed to raise teacher salaries.
Huntsman also wants to continue working on Utah’s income-tax system. He’s setting aside $100 million to reduce the top rate to 5 percent from 5.35 percent in conjunction with a tax credit.
The governor, however, is not proposing to eliminate the sales tax on food.
Earlier this year, lawmakers agreed to reduce the sales tax on food to 2.75 percent from 4.75 percent. Huntsman, who plans to seek a second term, said there’s plenty of time to tackle that tax.
Ultimately, the Legislature sets the state’s budget. The governor left $27.8 million untouched to negotiate with lawmakers.
