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.
"As we move into a world with artificial intelligence that will do everything for us and read for us, that can’t be healthy," the governor said. "Reading allows us to think and makes us human."
Gov. Cox 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 UEA appreciates that Governor Cox’s proposed budget includes investments in school safety upgrades, school lunches, additional paraprofessionals to support one-on-one instruction, and behavioral interventions to address increasingly complex student needs," Renée Pinkney, the president of the Utah Education Association, the state's largest teachers union, said in a statement. "We continue to urge lawmakers to fund at least a 2% increase above the statutorily required inflation adjustment and enrollment growth for public schools."
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. Speaking to reporters after his budget presentation, the governor maintained it was an income tax cut even if it wasn't how Utah would have enacted it.
"We would have done it differently for sure. The tax on tips probably isn’t the way we would have gone, but the federal government did go that way," he said. "So again, it’s good for the state, it’s good for people to get more money in their pockets. It’s something I believe in."
Lt. Governor Deidre Henderson announced a proposal to expand the child tax credit.
"With rising costs and nationwide economic uncertainty, we’re recommending to expand the child tax credit by $2.5 million to lower costs for families with young children," she said Wednesday.
That translates to roughly $220 more for families with children ages 0-3.
"I think that’s pretty awesome, especially with how expensive babies are," said Destenee Seastrand, the mother of a newborn.
But Tiffany Kirk, who held her baby as she looked for books at the Kearns library on Wednesday, said she disagreed with the budget proposal.
"I’m opposed to tax credits at all. I wish that taxation was just a flat rate," she said.
Cox announces 'pro-human' AI initiative for Utah:
One of the most controversial parts of the governor's proposed budget is $20.5 million in one time and $20 million in ongoing money for homeless services, including a 1,300-bed shelter that critics have branded a "mega-shelter" in Salt Lake City's Northpointe neighborhood.
Rev. Lora Young of the South Valley Unitarian Universalist Society, who has protested the shelter, said she believed it would cost a lot more than that.
"This seems like it is going to be expensive and be harmful for people who are unhoused," she told FOX 13 News.
The governor defended the shelter idea.
"We can’t keep doing things the way we’ve been doing where they’re not working," he said.
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 some crops and send the water down the Colorado River.
Utah Department of Agriculture & Food Commissioner Kelly Pehrson told FOX 13 News it was a method of helping farmers who are dealing with the pressure of water shortages.
"This is just another tool for them to make water a commodity for them," he said.
Spencer Gibbons, the CEO of the Utah Farm Bureau Federation, said they were largely supportive of the governor's budget proposals even though some of the ideas do give agriculture producers a little heartburn.
"We understand this old lake problem continues to persist and I think it’s safe to say farmers are wanting to be part of that solution," he told FOX 13 News.
Here's some other highlights of the governor's proposed budget:
- Gov. Cox has also asked for $7.6 million to fund reduced-price lunch programs in schools across the state.
- $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.
"As the legislature begins its work, our priorities remain clear: reduce the size of government, keep Utah affordable, strengthen public safety, ensure the best education for our kids, and invest wisely in our natural resources and infrastructure," House Speaker Mike Schultz, R-Hooper, said in a statement.
"While the budget is the Legislature’s constitutional responsibility, we value the important role of the governor and state agencies. We look forward to continued collaboration with Gov. Cox to deliver a budget that reflects the needs and values of Utahns."
Senate President J. Stuart Adams, R-Layton, also said in a statement he would look at it.
"We appreciate Gov. Cox’s budget proposal and look forward to continued collaboration throughout the session. 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," he said.
Read the governor's proposed budget here:
