KEARNS, Utah — In what is being called a "lean budget year," Governor Spencer Cox is unveiling his proposed $30.7 billion budget asking for $50 million for homeless services, an expansion of funding for child literacy programs, but no income tax cut.
At a library here where children participate in reading programs, the governor presented his budget requests. He has asked the legislature to fund millions in efforts to help children read. He proposed $654 million overall public education budget, including $53 million in school safety upgrades and a 4.2% increase in the weighted pupil unit, a formula on class sizes that often factors into teacher salaries.
The governor is not seeking an income tax cut as Utah is experiencing a half-billion dollar reduction in money coming into state government through income tax thanks to President Trump's Big Beautiful Bill. Nor does Gov. Cox recommend any new bonding for projects because interest rates are too high. The governor's budget also creates no new full-time state government employee positions, though agencies can fill positions already open.
But Gov. Cox is proposing to expand the child tax credit with an additional boost for families with children ages 0-3. He has also asked for $7.6 million to fund reduced-price lunch programs in schools across the state.
Cox announces 'pro-human' AI initiative for Utah:
Water is another major priority for the governor in this budget year. With the crises facing the Great Salt Lake and the Colorado River, Gov. Cox is proposing to spend an additional $5 million to secure water for the lake. He's also proposing $5 million more to pay farmers to not grow crops and send the water down the Colorado River.
Here's some other highlights of the governor's proposed budget:
- $20.5 million in one time, $20 million in ongoing funding for homeless services, including money for a shelter "campus" planned for Salt Lake City's Northpointe neighborhood.
- $6.2 million more to repair aging dams across the state.
- $80 million to expand a para-educator program in the state (tied to the children's literacy initiative).
- Affordable housing will see no funding increases as the Governor's office has said it would like to see existing policies enacted.
- The state's "rainy day fund" will be $1.6 billion in fiscal year 2026.
As always, the governor can propose a budget but it is the legislature that passes one. Lawmakers will consider his requests and other spending demands when they begin meeting in the 2026 general session next month.
Updates on this breaking news story on FOX 13 News and fox13now.com as information becomes available.
