State legislators may have to cut as much as $850 million from the state budget next year. That's a tough task and another reminder that the economy is still sputtering badly. As lawmakers ponder what to cut, they must search for all available alternatives before they heap on additional taxes, on essential items, to a population already trying their hardest to tread water and survive the recession.
That means, legislators, no tax increase on unprepared food. It must stay at its current level of 1.75 percent. The Salt Lake Chamber of Commerce's idea to raise it to 4.75 percent would disproportionally hit the middle class and poor in Utah. Also, inching up the state gas tax 10 cents a gallon is also a bad idea. Gasoline is also an essential item. It's an ironic bit of political spin that proponents of these tax hikes like to call them "targeted user fees," since the ones with the "target" on their backs can least survive the "user fee."
To be fair, though, there are some good ideas on trimming the budget from the Salt Lake Chamber. One is to increases Utah's cigarette tax to the national average of $1.01. Right now, Utah's tax is 69.5 cents per pack of 20. That ranks a very low 35th among states. In fact, the average state tobacco tax is $1.19 per pack. Legislators should make raising the cigarette tax to at least $1.01 a top priority in January. Tobacco, while unfortunately addictive, is not an essential need. It also kills a lot of us and raises health care costs for everyone.
Suggestions for legislators to tap into the Rainy Day Fund by at least half and utilize the $100 million that was set aside for education are sound ideas as well. It is tempting to take all of the $570 million in the Rainy Day Fund and make it easier to balance the budget, but that is shortsighted.
The fact is, this recession's a keeper. And, it's important to note, states tend to lag behind the nation economically. In other words, the bad economy could be just starting in Utah. We could face another big shortfall for the 2011 budget.
It's a tough job balancing this budget and we will be following the new legislative session closely. Consider the suggestions we have offered and take a hard look to see if there's still some government flab to be trimmed and saved. While we expect some social services and public education to take a hit, don't let it be at the expense of a program that is not needed in these tough times. Be prudent when cutting our state budget.
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