Mo Money, Mo Problems

A few highlights from Executive Appropriations Committee meeting today:

* Based on recent estimates by economists, projected revenues will come in between $10 million and $110 million dollars above projections due to the improving economy. It is our intention to continue the commitment to fund public education where possible with a portion of the surplus. Some of the surplus will also go into the state’s Rainy Day Fund which has served us well during lean years, and which we have fiercely protected more than some would like in the event the economy doesn’t rebound.

* While the revenue surplus is a sign of an improving economy in Utah, not all reports are received with optimism. Fiscal analysts report home foreclosures are at 3%, three times the normal rate of 1%. 120,000 homes have negative equity. When home prices bottom out, homeowners expected to have lost $30 Billion dollars.

* The massive snowfall and wet spring have resulted in flooding in the northern part of the state and threatens other areas, as well. The Executive Appropriations Committee has notified the governor that up to $3 million dollars is available to mitigate flooding to counties statewide. The Governor should have received a report Tuesday afternoon from engineers on the Weber County levee breech, which could potentially include a request for funds. Those funds are typically only given after counties and local entities have to shown that they are using their own disaster recovery reserves, as well.