Put on a happy face!

Gray skies are gonna clear up,
Put on a happy face!
Brush off the clouds and cheer up,
Put on a happy face!

Can you tell I just got out of a budget meeting with Gov Gary Herbert?

I like Gov. Herbert. He is down-to-earth and comes from a solid local-government background. He also is determined not to raise taxes, which is the right course in a tough economy.

But his budget is based on the assumption that the current deficit will turn into a surplus by fiscal 2011. Revenue will actually grow by $34 million then, he believes. That would still put revenues way below 2008 figures, but it would keep him from having to enact too many cuts or tax hikes. He has mandated 3 percent cuts across all state agencies, but only temporarily.

He also would like to repeal a sales tax discount on large businesses (which originally was imposed to help them offset the cost of collecting sales taxes). That has the same effect as a tax increase, but he technically doesn’t have to call it that. Also, he would use a lot of one-time money for ongoing programs.

It’s interesting. When times are good and surpluses loom, Republicans like to champion conservative budgeting. They always assume things won’t be as good as they probably will be. But when times are bad, conservative budgeting would mean tough cuts and tax increases.

Herbert’s budget is just the first volley in the annual budget battle between the legislative and executive branches. In February, updated tax revenue figures will be available, giving us a better idea whether the economy really has turned a corner.

I hope Herbert is right. It’s just that I’ve found that those old song lyrics
(…if you’re feeling cross and bitterish
Don’t sit and whine
Think of banana split and licorice
And you’ll feel fine!)
don’t always apply well to budgeting.