KSL Channel 5
October 28th, 2009
SALT LAKE CITY -- The state's bleak finances appear to be even worse than previously thought. The revenue figures for the last three months show the economy is hammering government budgets.
Bob Springmeyer is the president of Bonneville Research. He has been doing economic analysis and planning for local government since 1976. When he saw the quarterly tax revenue numbers for the first three months -- July through September of this fiscal year -- he was stunned.
He said, "This is the first time I've seen this kind of dramatic drop across the board."
|"This is the first time I've seen this kind of dramatic drop across the board." - Bob Springmeyer, president of Bonneville Research.|
No one expected good news, but the real numbers were worse than projected. Taxes in numerous broad categories, for both state and local governments, were down. Overall, revenues fell 16 percent, totaling $275 million.
Springmeyer said, "I think we're going to have a budget bloodbath this next legislative session."
Sales and use taxes, which fund general government and higher education, slumped 23 percent, nearly $100 million.
Income taxes, which pay for public schools, slid downward $40 million.
Taxes on corporations, the franchise tax, were in free fall, plummeting 73 percent.
He said, "That's one that I think is probably the most scary. That means that businesses are way down, that means employment is going to be down."