Gov. Cox announces tax cuts and teacher pay raises in FY 24 budget recommendations

The Utah State Capitol building in Salt Lake City. Photo: TownLift // Bailey Edelstein

KAYSVILLE, Utah — Gov. Spencer J. Cox and Lt. Gov. Deidre Henderson have announced their budget recommendations for the 2024 fiscal year, which include $1 billion in tax cuts and a $6,000 compensation increase for every teacher in the state.

The announcement took place yesterday at Centennial Jr. High School in Kaysville.

Cox proposed an income tax rate reduction, expansion of the dependent exemption to include a $250 refundability provision, dependent exemption for pregnant women, an expansion to Social Security tax phase out, a one-time income tax rebate, a property tax reduction, an expansion of the circuit breaker credit, and returning service fees through the Universal Service Fund.

According to a press release from the Governor’s Office, these ongoing and one-time income tax and property tax recommendations combined with cuts made over the past two years total more than $1.3 billion in tax relief for Utahns, amounting to the most significant tax cuts by a single administration in state history.

“Utah’s strength is in its people,” Cox said. “Returning hard-earned dollars to Utahns who are struggling from the impacts of inflation is the right thing to do and will support the families who need it most.”

Cox recommended more than $1.52 billion for education, including a 5% WPU increase, a total of $476.9 for educator support, funding for students at risk of academic failure, and 95.6% of the funds needed to have optional all-day kindergarten available for every family.

Cox also recommended a compensation increase for Utah teachers. Beginning in 2023, each teacher would receive approximately $4,600 plus benefits.

“Teachers make a tremendous difference in our lives, and we need Utah’s best and brightest to become teachers,” Gov. Cox said. “Getting and keeping high-quality, qualified educators in classrooms will do wonders for our K-12 students, and this pay increase will help us do that.”

Cox’s complete budget recommendations for the 2024 fiscal year will be released at 2 p.m. at gobp.utah.gov.