Enacted Budget – Fiscal Year 2025
Utah Governor Spencer J. Cox signed a series of bills making up the state budget for fiscal 2025, which provides $29.4 billion in total funds, an increase of $634.6 million, or 2.2 percent, over the revised fiscal 2024 budget. The budget provides $12.9 billion in general fund, income tax fund, and uniform school fund (GF/ITF/USF) spending, a decrease of $727.5 million, or 5.3 percent, compared to the revised fiscal 2024 budget. This decrease is largely due to the elimination of one-time fiscal 2024 appropriations. General fund and income tax fund revenues are estimated at $11.6 billion in fiscal 2025, an increase of 1.2 percent over the revised fiscal 2024 forecast while overall resources (including reserves and transfers) total $12.9 billion in fiscal 2025. Looking at reserves, total projected fiscal 2024 balances of $1.2 billion represent about 8.7 percent of combined fiscal 2024 general, income tax, and uniform school fund appropriations.
Budget highlights for fiscal 2025 include priorities in education, housing and homelessness, criminal justice, and state employee compensation. In education the budget provides $211.7 million for a five percent increase in the value of the Weighted Pupil Unit (WPU), increasing it from $4,280 to $4,494; $521.0 million one-time from the Public Education Stabilization Account for multiple items including funds for school safety ($100.0 million) and educator professional time ($74.0 million); $57.0 million for at-risk students and digital teaching tools; and $40.0 million for scholarships for increased school choice. To support housing and social services and address homelessness, the budget provides $17.0 million one-time for $300.0 million in loans under the Utah Homes Investment Program; $3.0 million for the Law Enforcement First Time Homebuyers Program; $10.0 million ongoing and $11.8 million one-time for statewide homeless system support; $23.8 million one-time for low barrier shelters; and $5.0 million to provide services for individuals with disabilities on the waiting list for services. In criminal justice, the budget allocates $13.0 million ongoing for corrections-targeted compensation and $2.0 million ongoing to support correctional officer overtime; and $3.1 million ongoing for jail contracting. Under state employee compensation, the budget provides $119.3 million from all sources for a three percent general salary increase in state agencies and higher education; $19.1 million for performance-based salary increases for state agency employees; $14.1 million for a 7.2 percent health insurance increase and 0.9 percent dental insurance increase in state agencies; and $3.2 million for a 0.7 percent cost of living adjustment for employees on Tier II retirement. Tax relief measures in the budget total $228.0 million and include a reduction in the income tax rate from 4.65 percent to 4.55 percent ($168.0 million ongoing and $37.0 million one-time); expanded eligibility for the child tax credit ($2.3 million ongoing beginning in 2026); and reauthorization of rural film incentives ($1.0 million ongoing and $22.0 million one-time).