GOVERNOR’S OFFICE OF MANAGEMENT AND BUDGET

KRISTEN COX
Executive Director

State of Utah
GARY R. HERBERT
Governor

SPENCER J. COX
Lieutenant Governor

January 7, 2019

In accordance with 20A-7-214(1), submitted below is an addendum to the Governor’s Office of

Management and Budget’s final fiscal impact statement for the “Utah Decides Healthcare Act of
2018” statewide initiative.

The Governor’s Office of Management and Budget estimates that this proposed initiative
would, in fiscal year 2021 (upon full phase-in of the federal Affordable Care Act):

 Result in net new state fiscal expenses of about $103,200,000 for Medicaid services

 Increase state sales taxes by about $92,800,000 by increasing the state sales tax
rate by 0.15%, from 4.70% to 4.85% (a 3.2% increase from the current tax rate).

The Governor’s Office of Management and Budget estimates that this proposed initiative would,
in fiscal year 2024

 Result in net new state fiscal expenses of about $170,400,000 for Medicaid services

 Increase state sales taxes by about $105,900,000 by increasing the state sales tax rate
by 0.15%, from 4.70% to 4.85% (a 3.2% increase from the current tax rate).

The most significant expenditure provisions relate to physical and mental health service costs
for the newly eligible (132,600 in FY 2021 and 147,100 in FY 2024), coverage for traditionally
eligible but unenrolled individuals (21,000 in FY 2021 and 23,000 in FY 2024) and mandatory
rate increases for all Medicaid and Children’s Health Insurance Program providers set to the
regional consumer price index.

Estimates and/or actual revenues and expenditures could vary with changes in federal law,
federal funding, taxpayer behavior and Medicaid recipient behavior, general economic
conditions, or as a result of further Medicaid consensus workgroup refinement, among other
factors.

In addition, the cost of posting information regarding the initiative in the Utah’s statewide
newspapers and for printing the additional pages in the voter information packet is estimated at
$30,000 in one-time funds.

Should you have any questions, please contact Nate Talley, Budget and Policy Manager, at
(801) 538-1556.

Sincerely,
 Kristen Cox

Executive Director

Utah State Capitol · 350 North State Street, Suite 150 · PO Box 142210 · Salt Lake City, UT 84114-2210 · Telephone (801) 538-1027 · gomb.utah.gov