Recently, Gov. Spencer Cox told reporters in a news conference that he had instructed state departments and agencies to prepare for cuts should the country enter into a recession.
With the stock market on an up-and-down ride lately and the uncertainty of what may come from the tariff battle that President Trump is taking on, Cox directed the state government to be prepared for three levels of cuts. This is a good practice on multiple levels. For one, it very well could show some of the “fat” that lawmakers can look into trimming away from the state budget in 2026, it also indicates fiscal responsibility by our state leaders to ensure the state is doing everything it can to avoid a tax increase in the future if any downturns do impact the state and its budget.
Over the last five years, Cox and the Legislature have cut taxes by $1.4 billion. To have to undo those changes to make up for lost revenue would be tragic for Utah’s businesses and families and unnecessary. With Cox’s advanced planning, the state can be in a position to protect those tax cuts and ensure that the state can still provide necessary services. It is a strong recognition that the government shouldn’t simply go back to the taxpayers’ wallets when times get tough, but instead prepare and cut, just like taxpayers are currently doing as they look ahead to the future.
This should also send a message to the other governmental entities within the state. Elected officials need to direct their staff as they craft this year’s proposed budgets to be mindful of the economic outlook and be prepared to quickly adapt to the changing financial climate without having to ask the taxpayers for additional funding.
One of the legislature’s key budget figures, Sen. Jerry Stevenson, R-Layton, is known for his witty insights on the state budget. The last few years, he has compared the state budget to having a “socks and underwear” Christmas, meaning the legislators should only ask to fund necessary things, as opposed to the “nice to haves” that lawmakers sometimes want to fund. This past session, Sen. Stevenson went as far to say that for the budget this year, he felt like the legislature would be best to purchase some laundry detergent for the socks and underwear from previous years. Meaning, the budget was tight and there wasn’t much money at all, even for the essentials.
Our recommendation to other governments in the state, the school districts, the counties, the special service districts, and the cities is to follow Sen. Stevenson’s lead. This year is a “laundry detergent year” for everyone. With so many questions on what lies ahead for our economy, now is the time to cut back and wait on the “nice to haves” and ensure the essential services are funded.
Taxpayers benefit greatly from the services provided by the government and they should pay accordingly for those services but in uncertain financial times, government should be the first to slow their growth and ensure that taxpayers have the money they need to pay payrolls, fund their existing businesses and make sure families have enough to put food on their tables.
As we head into budget season for our fiscal year government entities (school districts and cities, for example), we encourage our elected officials to direct their staff to keep budgets under control. To hold off on large fiscal asks of their taxpayers and to be prepared for changes that are potentially looming around the corner, financially speaking. A smaller demand on taxpayers will, in the long run, allow individuals and businesses to weather whatever storm may come and put Utah on its way to brighter days sooner.