SALT LAKE CITY -- Thousands of state employees in Northern Utah and elsewhere face furloughs or the possibility of being laid off as part of a budget fix for 2010 proposed Friday by Utah Gov. Gary Herbert.
But nixed in the fix by Herbert are any tax or fee increases.
"A tax increase at the present time is absolutely the wrong thing to do for the interest of Utah's future," Herbert said as he unveiled his first budget recommendations for this year and next.
Herbert ordered state agencies to cut 3 percent of their budgets immediately to help make up a $700 million gap expected before the fiscal year is over.
The governor also cut $18 million from higher education, raided the state's rainy day fund and made other one-time cuts to put Utah in the black.
John Kowalewski, spokesman for Weber State University, said Herbert's announcement came as a complete surprise.
"This cut will be particularly difficult given the enrollment growth Weber State University has experienced. We already have 25 percent less per student," Kowalewski said. "This cut will represent more than $2.5 million of the current budget.This cut will be painful."
John DeVilbiss, spokesman for Utah State University, said it was premature to discuss any details, but USU president Stan Albrecht and others plan to sit down and assess the impact of the numbers on the institution.
They are also seeking clarification on some items. "We are not in a position to answer any questions yet," DeVilbiss said. "We've got our work cut out in the weeks ahead."
Some House and Senate leaders still prefer increasing cigarette taxes or other tax changes as ways to put more money in the coffers.
"For me personally, tobacco is first on the list," said Rep. David Clark, Utah House speaker.
The red ink for 2010 is smaller than some anticipated, and the governor is optimistic more tax dollars will roll in as the economy rebounds.
Most political leaders also admit the next year is even more critical to the health of the state as they look at the flow of federal dollars and potentially exhausting the remaining state savings to correct any further problems.
"I want to make sure we are cautious because we could be looking at something fairly ugly a year from now," said Sen. Sheldon Killpack, majority leader and Syracuse resident.
Herbert said department leaders would have to decide quickly where and how to cut costs, leaving the possibility of layoffs, furloughs and a hiring freeze for state workers.
For instance, Utah Department of Human Services Director Lisa-Michele Church will have to cut $3 million out of her budget.
"We have to look at everything -- our budget is mostly people," said Church, who has 4,500 employees.
"Services to the public is a priority," she said of her department, which includes more than a half-dozen agencies, from Aging to Child and Family Services.
While Herbert held off making any cuts to public schools, he isn't providing any increased funding to account for enrollment growth, so the state's large class-size average will get even bigger.
Expected in Utah schools next year: 11,000 new students.
"Increasing class sizes next year does not mean he is holding education harmless," said Sen. Patricia Jones, minority leader.
Lawmakers will formally act on Herbert's $11.3 billion budget plan when they begin the next session in January.
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