LOCAL NEWS

State of Utah withholds taxpayer funds from Grand County after scathing audit

Sep 20, 2024, 4:58 PM | Updated: 6:43 pm

SALT LAKE CITY — The state of Utah has put a freeze on any new taxpayer money going to Grand County.

This comes several months after a scathing audit found the county intentionally misspent several million dollars meant for tourism.

The audit came out in June, and the state gave Grand County several months to make things right. State Auditor John Dougall said this week the county has failed to do that, so now the state is withholding taxpayer funds until the county makes necessary changes.

“That really motivates most governmental entities to become compliant,” Dougall told KSL TV, “because if you don’t have tax revenue, you don’t really have money to spend.”

Audit found ‘pattern of abuse’

Grand County is known for tourism with places like Moab and Arches National Park. But a recent state audit found the county has been misspending tourism tax dollars for years.

“Where we see a repeated pattern of misuse, that causes concern,” Dougall said.

The audit specifically found Grand County spent too much on dealing with the effects of tourism and not enough on promoting it — a violation of state law and a “pattern of abuse.”

“These findings show a consistent pattern of Grand County using statutorily-restricted tourism related tax revenues for unallowable purposes,” the audit stated. “We consider this increasing pattern of misuse to constitute intentional abuse rather than uninformed error. The Commission has the ultimate responsibility for the proper use of county funds.”

The audit told Grand County to fix things, including reimbursing roughly $5.3 million that was improperly spent.

“We have not seen official corrective action yet in regards to what we noted in the audit,” Dougall said.

Now, as of Wednesday, Dougall’s office is withholding taxpayer dollars from Grand County, something state law gives him the power to do.

“We expect them to reimburse those improperly spent funds, to account to us that they have taken that corrective action,” said Dougall. “Then we will release the funds.”

Utah State Auditor John Dougall speaks during the Utah Republican Party Organizing Convention at Utah Valley University in Orem on April 22, 2023. (Ryan Sun, Deseret News)

Grand County responds

In a statement, Grand County officials said they are working to meet the state’s requirements.

“Completing the necessary review and submission of reports and certifications required by the State, which incorporate corrections agreed upon by the Commission with respect to (tourism tax) revenues, is the highest priority … and will be completed as soon as possible,” said Gabriel Woytek, Grand County Clerk and Auditor.

Two Grand County commissioners, Jacques Hadler and Kevin Walker, appeared virtually this week at a Utah legislative hearing discussing the audit and the county’s response to it.

“I think we’ve only spent money in ways that we feel we are on very, very solid legal ground doing,” said Walker, vice chair of the Grand County Commission, during a meeting of the Political Subdivisions Interim Committee on Wednesday.

But several lawmakers during the hearing blasted the Grand County leaders for not following the law — and not admitting there’s a problem.

“At a fundamental level, we need to figure this out, and you do not have the latitude that you believe that you have based on the findings of audits,” said Rep. Casey Snider, R-Paradise.

Lori McFarland, a Grand County business owner, also spoke at the legislative hearing and said the county is not adequately promoting tourism, which is impacting the local economy.

“Resistance to investing in the visitor economy is hurting workers and their families,” McFarland told lawmakers. “Shifts are fewer, tips are down, and workers are taking on extra jobs or a side hustle.”

But the county commissioners insisted they are “actively” promoting tourism and want to do so responsibly.

“I think we have differing ideas on promotion,” said Hadler, chair of the Grand County Commission, noting that some worldwide destinations have been overwhelmed by tourists. “I think that our messaging with responsible tourism goes a long way towards sustaining our tourism for the future.”

KSL 5 TV Live

Local News

A new threat has emerged in Utah as authorities sound the alarm over carfentanil, a powerful synthe...

Garna Mejia

Authorities alarmed by carfentanil’s emergence in Utah

A new threat has emerged in Utah as authorities sound the alarm over carfentanil, a powerful synthetic opioid initially used as an elephant tranquilizer.

7 hours ago

George, the monkey, learns with Lucas's classmates on Feb. 11, 2025. (KSL TV)...

Dan Rascon

Third grade teacher comes up with way to help student with cancer not miss class

A West Jordan Elementary school teacher went above and beyond to help bring healing and joy to one of her third grade students who has cancer.

8 hours ago

Two men were arrested Monday after police said they pursued a family with a gun. (KSL TV)...

Andrew Adams

Sandy Police say 2 men arrested after armed pursuit of family in car

Two men were arrested Monday after police said they pursued a family with a gun.

8 hours ago

Police said a driver rolled their car in Taylorsville before fleeing the scene on foot Tuesday nigh...

Carlysle Price

Police: Driver rolls car, flees on foot

Police said a driver rolled their car in Taylorsville before fleeing the scene on foot Tuesday night.

9 hours ago

One person was found dead inside a West Haven home that caught fire on Feb. 11, 2025. (KSL TV)...

Mariah Maynes and Brian Carlson, KSL TV

West Haven house fire kills 1 person

One person was killed after a West Haven house fire on Tuesday night.

10 hours ago

A newly released video captured the moment an SUV was hit by a UTA FrontRunner train in Layton on F...

Shara Park

New video shows FrontRunner hit SUV stopped on tracks in Layton

A newly released video captured the moment an SUV was hit by a UTA FrontRunner train in Layton on February 4. Fortunately, the driver escaped before the impact.

10 hours ago

Sponsored Articles

luxury living room with a classic white sofa and sofa, interior design...

Lighting Design

Revisiting home lighting trends for 2025

Looking for inspiration to revamp your home lighting? This article outlines some of the emerging lighting trends for 2025.

holiday gift basket with blue tissue paper and gingerbread cookies...

Kneaders Bakery & Cafe

Holiday hacks for a stress-free season

Get more out of your time with family and loved ones over the holidays by following these tips for a stress-free season.

2 computer techs in a computer shop holding up a computer server with the "hang loose" sign...

PC Laptops

A comprehensive guide to choosing the right computer

With these tips, choosing the right computer that fits your needs and your budget will be easier than ever.

crowds of people in a German style Christmas market...

This Is The Place Heritage Park

Celebrate Christkindlmarket at This Is The Place Heritage Park!

The Christkindlmarket is an annual holiday celebration influenced by German traditions and generous giving.

Image of pretty woman walking in snowy mountains. Portrait of female wearing warm winter earmuff, r...

Lighting Design

Brighten your mood this winter with these lighting tricks

Read our lighting tips on how to brighten your mood in the winter if you are experiencing seasonal affective disorder.

A kitchen with a washer and dryer and a refrigerator...

Appliance Man

Appliance Man: a trusted name in Utah’s home appliance industry

Despite many recent closures of local appliance stores, Appliance Man remains Utah's trusted home appliance business and is here to stay.

State of Utah withholds taxpayer funds from Grand County after scathing audit