Utah state legislators are “renowned” for talking out of both sides of their mouth. One of their proudest achievements is reducing state income taxes for four straight years, by more than a billion dollars. But what they’re not telling constituents and taxpayers is how little those tax cuts really mean… and what they actually cost.
For example, the latest tax cut was estimated to reduce the tax bill of Utah taxpayers by $167 million, which sounds significant, but isn’t. The lowest quintile of taxpayers would only get a $24 tax cut. Upper middleclass taxpayers, those making $200,000, would receive $174. In addition, Utah is one of only eight states to tax Social Security income.
In the meantime, the legislature just mandated a fifteen-million-dollar budget cut for the university (SUU) where my wife works and a hiring freeze, as well as comparable cuts for all state universities. Utah House Speaker Mike Schultz, a Republican, recently stated that, in addition to that cut, the Legislature was exploring cuts of around ten percent across all sixteen of the state’s public colleges and universities in 2025.
This might make some sense if enrollment were declining, but Utah is the only state in the union where non-immigrant population is growing, almost certainly because the Mormon faith continues to emphasize large families. In response, SUU’s enrollment grew by 1,000 students this school year (up to nearly 16,000), and total public university enrollment grew by over 8,500 students, one of the largest increases in years.
Yet the legislature is mandating that universities accommodate more students and provide more services with less funding. This is at a time when an increasing percentage of teaching employees are leaving the field because of comparatively low pay and increasing bureaucratic and administrative loads having nothing to do with teaching. One of the unmentioned side effects, also, is that the legislature mandated a 3.5% tuition increase for the 2024-2025 school year, so that students and their parents pay more (roughly $300 per student just this year ) while the state funds a smaller and smaller percentage of the costs of running the universities.
But the politicians continue to trumpet near-meaningless tax cuts.