Cox proposes $30.7B budget with funding for homeless campus, child tax credits

SALT LAKE CITY — Utah’s governor unveiled his proposal for a $30.7 billion state budget for the coming fiscal year on Wednesday, which would include funds for a new state homeless campus and an expanded child tax credit for families with young children.

Due in part to significant cuts to federal spending enacted in the so-called One Big Beautiful Bill Act over the summer, Gov. Spencer Cox‘s budget proposal is lean this year and would represent a slight year-over-year decrease in state spending. It doesn’t ask for any additional income tax cuts after five straight years of reductions.

 

“This year is going to be a very tight budget for one big reason,” Cox told the KSL and Deseret News editorial boards ahead of the announcement. “And our economy is still doing very well. We’re seeing growth and we’re excited about what’s happening in the economy, but the changes in the federal level, with the (One Big Beautiful Bill Act) … as we come into compliance with that bill, it’s about a $300 million decrease to our anticipated funding sources.”

Because of that, the governor said he is proposing a “flat” budget compared to the $30.8 billion approved by state lawmakers earlier this year.

While the governor proposes a budget each year, it’s the Utah Legislature that ultimately decides how to spend taxpayer money. The general session begins Jan. 20.

“We appreciate Gov. Cox’s budget proposal and look forward to continued collaboration throughout the session,” said Senate President Stuart Adams, R-Layton, in a statement. “As we balance the state’s budget, the focus remains on strengthening the pillars that sustain opportunity in Utah: keeping taxes low to enhance affordability, ensuring high-quality education, holding social media and tech companies accountable, enhancing public safety, safeguarding water resources and advancing energy and innovation.”

What’s in the budget proposal?

One area where Cox is asking lawmakers for a “fairly significant” investment is in addressing homelessness. The state plans to build a 1,300-bed homeless campus on the west side of Salt Lake City, and the governor is requesting $25 million in new one-time funding for construction and capital improvements as well as $20 million in ongoing funds to provide services.

Cox hopes the investments in the campus will yield more public safety funds from the federal government, as it brings the state more in line with an executive order from President Donald Trump directing that funds be prioritized to states that focus on a treatment-first approach to individuals experiencing homelessness.

“The local governments will play a role in that as well, and then we’ll be working with the federal government on additional funding,” Cox said. “The current administration has made it clear that they’re interested in models like Utah’s, and so we’re hoping that we can get some additional funding there.”

The governor also wants $2.5 million to expand the child tax credit for families with very young children. Lawmakers earlier this year adjusted that credit to cover children age 5 or younger.

For public education, Cox is requesting $191 million for a 4.2% increase to the weighted pupil unit to account for inflation, $50 million to pay for school safety upgrades, $7.6 million to help pay for students’ school lunches, and $500,000 for a literacy campaign.

An additional $80 million would fund the hiring of “paraprofessionals” in schools to support teachers in educating students who need extra help. Some $60 million would fund behavioral interventions for K-3 students, with the rest going to reading support in elementary schools that fall below statewide benchmarks for literacy.

“What the paraprofessionals will do, especially the literacy coaches, will help the teachers be able to break the students up into groups,” to focus on students who need additional support, Lt. Gov. Deidre Henderson said. “If you’ve just got one teacher and you’ve got 27 kids, it makes it tough. … It makes an enormous difference. It’s a game-changer.”

After the shooting death of conservative activist Charlie Kirk at Utah Valley University in September, Cox is asking for $3.4 million to enhance campus safety and security measures. He also proposes spending $10 million in one-time money to expand the capacity of Utah’s technical colleges to ensure the state has a “skilled and adaptable workforce.”

The budget plan also sets aside $3 million for ongoing services to victims of domestic violence and sexual violence, including “crisis intervention, shelter, therapy, and case management.”

State and higher education employees would receive a 2.6% cost-of-living increase under the governor’s plan.

Outdoor recreation is also included in the proposal. Due to increasing demand, the governor said he wants to create a new state park at Mantua Reservoir in Box Elder County. Improved amenities at the reservoir are expected to cost $2 million in one-time funding.

The governor is also asking lawmakers for $5 million for the Great Salt Lake long-term water program, to go along with another $5 million for similar projects along the Colorado River. Those funds would bolster existing investments in infrastructure and data collection on the two important waterways.

There is no requested funding in the budget proposal for new full-time positions in the executive branch, nor is there a request for any new bonding to pay for big-ticket projects.

This story will be updated.

Contributing: Brigham Tomco