Utah

Utah

Budget Cycle
Annual

Governor Submits Budget
December
Fiscal Year Begins
July 1

Governor Signs Budget 
March/April
(20 days after session)


Budget Links

FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)



Proposed Budget - Fiscal Year 2027

On December 3, Utah Governor Spencer Cox submitted his budget proposal for fiscal 2027. The total operating and capital budget calls for $30.7 billion in spending from all funds, which represents a 1.6 percent decrease compared to total fiscal 2026 levels (and a decrease of 0.4 percent from the fiscal 2026 authorized level). The governor recommended $12.1 billion in general fund, income tax fund, and uniform school fund (GF/ITF/USF) spending in fiscal 2027, a 2.4 percent increase from the GF/ITF/USF spending totals for fiscal 2026. This includes $11.8 billion of ongoing funding and $294.6 million in one-time funds for fiscal 2027. The budget is based on a consensus GF/ITF revenue forecast of $11.9 billion; this represents a 3.1 percent increase over the fiscal 2026 authorized revenue forecast, and a 4.0 percent increase compared to the revised consensus estimate for fiscal 2026. The state’s rainy day funds are estimated to total $1.6 billion in fiscal 2026.


Proposed Budget Highlights 

The governor’s budget is designed to strengthen Utah families and maintain the state’s long-standing reputation for disciplined and responsible budgeting. 

Tax and Revenue Changes

  • Expands the child tax credit to more than 11,100 families with children ages 0-3.
  • Assumes continued conformity with the federal tax system and estimates a state income tax revenue decrease both one-time and ongoing. 
  • Calls on the legislature to enact policies that right-size the property tax burden distribution between residential and commercial properties.

Strengthening Families

  • Recommends a three-year commitment to cover the National School Lunch Program reduced-price category and associated funding.
  • Provides additional funding for Baby Watch, a program enhancing early growth and development in infants and toddlers with developmental delays or disabilities.

Helping Vulnerable Populations

  • Provides additional funds to cover Supplemental Nutrition Assistance Program (SNAP) administrative costs as required by the One Big Beautiful Bill Act (OBBBA).
  • Proposes funding in ongoing operational support for homelessness and criminal justice high utilizers to help the state align with the President’s executive order on Ending Crime and Disorder on America’s Streets. 
  • Supports funding for continued victim services administered by the Office of Victims of Crime and Department of Health and Human Services. 
  • Allocates funding for recidivism reduction support at the Division of Juvenile Justice and Youth Services.
  • Provides funding for essential nutrition and well-being to seniors, including the provision of meals and combatting social isolation.

Supporting Education

  • Recommends an increase of 4.2 percent in the Weighted Pupil Unit for education funding.
  • Allocates resources to help raise literacy rates and foster student success, including funds for paraeducator initiatives, safe learning environments, and a literacy campaign.
  • Supports the Educational Choice for Children Act, a federal program that provides a tax credit for donations to qualifying scholarship granting organizations.
  • Supports strategic reinvestment efforts proposed by the Utah System of Higher Education and recommends state funds for strategic investments to degree-granting and technical colleges to align programs with workforce needs and maintain affordable learning opportunities. 

Responsible Government

  • Recommends a 2.6 percent cost-of-living adjustment for state employees, continuing pay-for-performance, and increased funding in health and dental insurance.
  • Supports efforts to modernize state employee job classifications and benefits.
    • Includes transitioning from separate sick and annual leave accruals to a single personal time off allocation and increasing postpartum recovery leave.
  • Invests in the Government Reform, Innovation, and Transparency (GRIT) Initiative to improve state services, including funds for a unified e-permitting and information management system and artificial intelligence

Other Priorities

  • Provides funding for the Volunteer for Good program, which engages high school students in service and encourages civic engagement and community connection.
  • Allocates funding for dam safety upgrades and the Great Salt Lake long-term water program.
  • Invests in Targeted Industry Initiatives grants, which align industry investments around a coordinated state economic development strategy.