The Federal Funds Commission today unveiled the state’s first Federal Funds Risk Model (FFRM) dashboard. Citizens can find the new tool at federalrisk.le.utah.gov.
The model is an interactive tool that calculates the potential economic impacts within the state of various factors, including macroeconomic variables and changes in direct and indirect federal funding. Utah receives $3.8 billion in federal funds — 26 percent of the state’s operating and capital budget – and is now tied with income taxes as the state’s largest revenue source.
Use of this tool will allow for better foresight and planning, as lawmakers can use it to inform their decision-making process. Additionally, potential state and local impact of changes to national fiscal policy can be modeled, and the resulting information will allow our leaders to make strategic recommendations to Utah’s congressional delegation.
“Utah, like most states, is increasingly dependent on federal funds at a time when the federal government finds itself in increasingly poor financial shape. For this reason, the Utah Legislature formed the Federal Funds Commission to develop the model unveiled today,” said Commission Co-Chair and State Representative Ken Ivory. “Its purpose is to assess the growing likelihood of diminished federal funding coming to Utah and how we can better respond to those risks and assure that we can meet the education, public safety and human service needs of our state, regardless of what transpires in D.C.”
The FFRM provides for the development of strategies to deal with the potential loss of federal funds, targeted to specific areas of our state budget, and it incorporates various risk response options. The modeling of risk response measures allows a way for the state to determine the degree to which they are able to mitigate the effects of myriad funding changes and the extent of their effectiveness.
The Federal Funds Commission was established by the Legislature in 2013 for the purpose of assessing and making recommendations regarding the financial stability of the federal government and our dependency on federal funds, as well as the risk and impact of a reduction in those funds to state and local governments.