Homelessness and education dominate Gov. Spencer Cox’s proposed fiscal year 2027 budget.
Cox described it as a “tight” budget, with an ask of $30.7 billion. It comes in $100 million less than the $30.8 billion budget the Legislature adopted for the 2026 fiscal year.
Cox admitted that federal cuts outlined in President Donald Trump’s “Big Beautiful Bill” earlier this year will impact Utah’s future spending, as the state will not receive an anticipated $500 million in revenue over the next two fiscal years — stemming from federal changes, including to income tax.
“So those changes that were made – so taxes on tips, for example – that gets incorporated into what we're doing.”
Reductions were also made for businesses in the bill, and Utah will follow along with those changes.
At the top of his budget wish list, the governor is asking for a one-time investment of $25 million in the proposed homeless campus northwest of Salt Lake City. But that would only cover about a third of the project’s expected cost.
“Local governments will have to play a role in that,” as will the private sector, he told reporters when asked where he would find the extra funds for the campus.
Initial plans for the massive campus have been tailored to align with a Trump executive order on homelessness. Cox is also looking to Washington to chip in.
“This is the perfect project for the federal government to get involved. It can be a model for the nation,” he said. “And so we're hopeful and anticipating that there will be some federal funding to help us there.”
Ongoing funds for “Homelessness and Criminal Justice High Utilizers” are also included in the proposed budget to continue long-term efforts to reduce homelessness. Among the listed recipients is The Other Side Village, a planned community in Salt Lake City that provides permanent, affordable housing for those experiencing chronic homelessness.
A focus on education
The budget announcement took place at the Kearns branch of the Salt Lake County Library, a fitting location as the governor wants $654.2 million for public education, with a focus on literacy.
As of February 2025, Utah ranks 37th in the country in reading recovery since the pandemic. He said the majority of low-income households in Utah have “zero books in their home,” before announcing a $500,000 literacy initiative to encourage families to read together. The money will likely go toward ad campaigns and billboards “reminding people how important it is to read.”
When Lt. Gov. Deidre Henderson spoke, she said “children can't learn if they’re hungry,” before proposing more funding for reduced school lunches. Continuing her speech about families impacted by the rising cost of living, Henderson announced the administration would also like to expand the Child Tax Credit by $2.5 million.
“This expansion has the potential to provide more than 11,000 families with children ages birth to 3 years old, an average benefit of around $220 per year,” she said.
Right now, families with children up to age 5 qualify for up to $1,000, depending on their financial situation. This expansion would essentially be an extra boost for families with kids aged 3 and under, a bracket that is typically more expensive.
Cox also has his eye on higher education, including boosting university research projects and funding for “degree-granting and technical colleges to expand capacity.”
“We have a waiting list of students trying to get in, young and old, trying to get into our trade and technical institutions,” he said. “And we want to make sure that we're educating the future workforce, giving them opportunities.”
Other budget highlights
The proposed budget also has asks for the Great Salt Lake long-term water program and to continue the Demand Management Pilot Program, a state initiative that pays farmers to reduce their water use to conserve Colorado River resources.
For now, the governor’s budget is just a proposal. The Legislature will sign off on a final budget during its general session early next year.
