For the fiscal year starting July 1, 2026, the Utah State Legislature has authorized $31.6 billion in spending. That’s about $800 million more than the budget lawmakers originally adopted for FY2026, though it is slightly less than the $31.7 billion ultimately spent last year after supplemental appropriations were approved.
Despite reduced state revenue caused by federal tax changes under the One Big Beautiful Bill Act (which affected Utah because the state’s tax calculations are tied to federal tax returns), and another small reduction in Utah’s income tax rate, lawmakers were able to maintain a similar level of spending through continued economic growth and reductions to some existing state-fund budgets during the 2026 General Session.
Where the money comes from:
A little over a quarter of the state budget comes from federal funding. The remainder comes primarily from state income taxes, sales taxes, local property taxes dedicated to education, fuel taxes, and fee-for-service revenues.
Where the money goes:
Each year the legislature’s appropriations committees and subcommittees determine funding for state program areas based on revenue forecasting and the impact of new legislation passed
during the general session.
The bulk of taxpayer dollars (nearly 83%) is concentrated in just three areas:
- Social services
- Education
- Transportation
These categories represent the core responsibilities of state government and account for the vast majority of taxpayer-funded spending.
What changed this year:
While overall spending remained relatively flat compared to last year’s revised budget, lawmakers shifted funding priorities across state government.
Compared to what was spent during the previous fiscal year, this year appropriations have grown for:
- Executive appropriation (22% higher than last year)
- General government (8.3% higher)
- Higher education (7.7% higher)
- Social services (4.3% higher)
- Economic & Community development (3.6%)
- Public education (2.4% higher)
Meanwhile appropriations declined for:
- Transportation and Infrastructure (16.6% lower than last year)
- Natural resources, agriculture, & environmental quality (11.2% lower)
- Criminal justice (3.4% lower)
These changes reflect the priorities of Utah’s lawmakers.
The long term:
Although this year’s budget changed little from last year’s revised spending levels, Utah’s budget has expanded dramatically over the past decade. The total state budget has more than doubled over the last ten years, significantly outpacing both population growth and inflation.
The Legislature’s Compendium of Budget Information (COBI) tracks budget growth after adjusting for inflation and population. By that measure, this year’s budget represents a modest decline from last year, suggesting lawmakers held overall spending relatively steady after accounting for Utah’s continued growth.
The budget is a statement of priorities:
The Utah state budget is more than a collection of numbers. Every appropriation reflects a decision from elected officials about which services, programs, and investments lawmakers believe deserve taxpayer dollars. Whether those priorities align with your own is a question every Utahn should consider.
We would like to thank the Office of the Legislative Fiscal Analyst for their resources and efforts in ensuring transparency in the budgetary process.
We encourage you to explore the state budget in more detail, including line-item appropriations, through the COBI website.