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(Publisher's Note: Featured below is a sponsored advocacy essay. It is a rather strong piece and not everyone will agree with it. As I have previously said, one of the reasons I’m publishing Policy Daily is to deliver messages, fully disclosed and labeled, on behalf of clients. And because this is not an objective journalistic endeavor, I’m not publishing responses from opponents unless they let me publish my essay in THEIR newsletter equivalent. You can, of course, skip over these sponsored advertorials like you might a newspaper ad. But this one is well worth reading.)

News Highlights

New poll shows Ellis Ivory already has 32% support, just behind Peter Corroon (Deseret Morning News). Columnist Bob Bernick outlines how hard it will be for Ivory to win a write-in campaign (Morning News).

Amendment 3 backers and supporters now airing TV ads (Salt Lake Tribune).

A weekly newspaper in Texas beats up the Tribune over Huntsman Chemical coverage (The Examiner).

Gov. Walker opposes conservation initiative (Morning News and Tribune).

Quote of the Day

"Democracy is an insecure landscape and it feels a little less secure today. I sense a deep erosion in the psyche of this country . . . and that's very, very troublesome."

-- Utah writer Terry Tempest Williams, upon being disinvited to speak at a Florida university because of her political views (Salt Lake Tribune).
Friday Buzz
Compiled and Written by LaVarr Webb

Presidential Debate : Tonight, 7:00 p.m.

Newspaper Circulation

The Salt Lake Tribune and Deseret Morning News no long fight each other in acrimonious court battles, but they still compete vigorously for readers. The papers, by law, have to publish a “statement of ownership, management and circulation.” In case you missed the statements published this week, here's how paid circulation shapes up (averaged over the last year). Morning News : Daily, 73,599; Sunday, 74,274. Tribune : Daily, 131,678; Sunday, 151,951. So despite making gains by going morning, the Morning News still lags considerably behind the Tribune, especially on Sunday.

Utah's Education Paradox

The Utah Foundation has released a new research brief, this one on education financing. Check it out at www.utahpriorities.net. The paradox: Utah spends more of its tax money on public education than almost every other state, but it spends less money per pupil than any other state. Bigger effort, but less result, at least in funding, due to Utah 's unique demographics. The report is the 11 th in a series by the Foundation's Utah Priorities Project.

Electoral Count Website

Good Utah conservative Randy Minson suggests this site at the liberal on-line magazine Slate , as a good place to keep up-to-date on how the electoral vote is shaping up. (P.S.: Bush is winning)

Reader Response

Disagreeable, But She Reads It

I have to say there are some days when I agree with the reader who is disappointed by the Republican rhetoric that pervades the Policy Daily briefing. However, I ALWAYS enjoy hearing the other side, a little because it helps me understand where the opposite point of view is coming from; but the main reason I like to read Mr. Webb's editorial is because I look forward to the inevitable rebuttal by more liberal-minded people the following day.

I thank Mr. Webb for his opinion (however disagreeable it may be sometimes) and I thank him for his willingness to show the opposing view. Utah could use more Republicans who will open up the other side of the floor.

-- Leah Jensen

Page 3. Mega-Credit Unions Erode Utah's Tax Base

(This advocacy essay is sponsored by the Council for Sound Tax Policy. Writer is LaVarr Webb.)

The controversy over the tax subsidization of Utah 's billion-dollar credit unions is taking an interesting turn. It is evolving from an insider food-fight among financial institution lobbyists to a broad, policy-based battle between the mega-credit unions on one side, and Utah taxpayers, educators, local government officials and advocates for low-income groups on the other.

Most Utahns, including credit unions members (80% of them, in fact) believe that the mega-credit unions should be taxed on the profits they retain, beyond amounts required for reserves, that they do not return to members in the form of dividends or better rates on loans and savings. And even officials of some small credit unions are questioning why these giant competitors (that long ago abandoned any semblance of the original role of credit unions) deserve a tax subsidy to fund their growth, their expansion into other states, their heavy advertising and their political war chests.

The Utah Taxpayers Association has long been a voice (see report) asking tough questions about what taxpayers are getting in return for the tax exemption on net income generated from loans to upper-middle income people to buy cars, boats, and exotic vacations. What charitable purpose do those transactions serve? More recently, organizations such as The Council for Sound Tax Policy and Tax Policy Clearinghouse are finding allies among a wide variety of individuals and groups whose concerns about tax-base erosion are growing as the giant credit unions continue to take larger chunks of economic activity off the tax rolls. While seed funding for the CSTP and TPC has been provided by the banking industry, these groups are being joined by a broad range of tax-paying and tax-using individuals and organizations who see no logical reason the tax base should continue to be eroded by wealthy credit unions that have none of the characteristics of deserving tax-exempt, non-profit organizations.

On the other hand, members of these concerned citizen groups believe that small credit unions that continue to honor the original requirement that members share a “common bond” and provide credit for “provident purposes,” are fully deserving of their tax break.

The position of the Taxpayers Association, CSTP, and TPC, is consistent with current state law, passed in the 2003 legislative session by an overwhelming vote. Utah law recognizes two classes of credit unions in Utah . The first class is the smaller credit unions that deserve their tax exemption, and the second class is the mega-credit unions that no longer resemble credit unions and do not deserve a tax break.

The 2003 law did not establish tax rates, and to escape paying state income taxes (on profits not returned to members) and also to avoid paying sales taxes, the biggest credit unions fled to a federal charter so they are no longer regulated by Utah . Thus, some of Utah 's largest businesses pay NO income or sales taxes while tiny businesses and average Utahns pay their fair share for education and local government services.

To add insult to injury, Utah 's biggest credit unions are now supporting federal legislation that would dramatically expand commercial lending authority and allow easier expansion into more geographic areas. That could result in a completely absurd, but very real, scenario such as this: A tax-subsidized billion dollar credit union could provide a tax-subsidized $10 million loan to a wealthy developer to build and sell million-dollar homes to rich people. That defies all rational tax policy. It would be difficult to devise a greater tax-policy travesty, but that's what the mega-credit unions are demanding.

And, unfortunately, two Utah congressmen, Rob Bishop and Chris Cannon , have been taken in by the mega-credit union sophistry. Amazingly, they are supporting the federal credit union legislation, in direct opposition to the interests of Utah taxpayers and our school children.

As these large credit unions make more and larger tax-subsidized commercial loans to wealthy individuals, more economic activity is removed from the tax rolls. Every loan means less money for textbooks, teacher salaries, and ultimately higher taxes for the rest of us. The loss is already millions of dollars a year, and growing.

A Utah legislative tax force charged with reviewing policy set in 2003 is considering supporting a resolution (see story) suggesting that Congress follow Utah’s lead and recognize two classes of credit unions, with the small credit unions deserving of their tax exemption. Legislators are concerned about federal preemption of states’ rights, particularly the fact that Utah governments can’t even charge sales taxes to the federally-chartered mega-credit unions. State credit unions and both state and federal banks pay sales taxes, but the gigantic federal credit unions pay neither income taxes or sales taxes. Legislators noted that state and local governments still have to provide police and fire protection, and roads and water services to hundreds of large credit union branches, but the big credit unions use their profits to expand, advertise and lobby instead of paying their fair share of taxes.

Upon the suggestion that the legislative task force might consider sending a resolution to Congress, credit union lobbyists immediately attacked members of the task force in a press release, calling them “hopelessly out of step.” The truth is that Utah legislators are looking out for the interests of taxpayers, education, municipal services and a broad tax base, while the credit union executives and their lobbyists are looking out for profits.

Thankfully, a broad coalition of policymakers, concerned citizens and credit union members are starting to recognize the seriousness of this problem. Market forces being what they are, a great amount of retail and commercial financial services is poised to leave the tax base, hurting education and local government and leaving the rest of us with higher taxes. Members of this coalition are standing up to say no. If you have concerns, would like to join the coalition, or receive more information, send an e-mail to info@soundtax.org or visit www.soundtax.org .

Elected Officials Birthdays

Rep Ben C Ferry, District 2, Oct 11
Rep Gregory Hughes, District 51, Oct 13
Sen Gregory S Bell, District 22, Oct 16
Rep Michael E Noel, District 73, Oct 17
Sen Curtis S Bramble, District 16, Oct 18
Rep Ann W Hardy, District 20, Oct 18
Rep Greg J Curtis, District 49, Oct 18

Entire Birthday List

Agenda Utah is a service
of Utah Policy.com

Publisher: LaVarr Webb
Editor: Bart Barker
News: Golden Webb
Calendar and Subscriptions: Paul Hollingshead
 

Friday
October 8, 2004

Associated Press
- Democrats send campaign help to Republican

The Examiner
- Southeast Texan say Salt Lake reporters hid truth (pdf file)

Salt Lake Tribune
- Rolly & Wells: Ivory big on elephants even before being tapped by GOP
- ZAP tax may fund fitness center
- Mayor's daughter put in a different job
- Another SLC development director, Martinez, resigns
- Former Democratic leader Holbrook will join Regents
- Thanks for the memories: Ashcroft recognizes Hatch for service
- Amendment 3 ad wars under way
- Legislative bid to bar N-waste in Utah fails
- Fox News: Hannity still heading to UVSC
- District 6 Race: Hopefuls on the defensive
- Initiative 1: What the ballot says
- Huntsman: Gun issue up to schools
- Old against new in Summit County Commission matchup
- Walker opposes open-space initiative
- Election results could be delayed
- Politics pull the plug on Utah writer's Florida gig
- Full Text: The letter from Utah author Terry Tempest Williams
- Editorial: Care-taking business

Standard-Examiner
- Governor opposes Initiative 1
- Davis school stretch
- Candidates introduce themselves to N. Ogden

St. George Spectrum
- AG candidates address polygamy, Amendment 3
- Utah Senate hopefuls visit chamber luncheon

Daily Herald
- Administration critical of cut in nuclear funds
- District 64 race comes down to education, government control
- Editorial: Time for Bryson to resign

Deseret Morning News
- Bank fight may go federal
- Ivory building support
- Utah's nuclear waste ploy fails
- Walker opposes open space initiative
- COG gives members a place to cogitate
- Secrecy fueling scandals?
- Walker backs marriage measure
- Sandy planners OK 'big-box' zoning
- Hailey's research is blasted
- School funding may be too low a priority in Utah
- Utah ranks last in spending per pupil
- University in Florida delays talk by Utahn
- S.L. development chief steps down
- Attorney general hopefuls spar in Dixie
- Hatch's fuel amendments fizzle in House
- Energy task force explains draft bill
- Bob Bernick Jr.: Can Ivory pull off write-in victory for mayor?
- Editorial: Change archaic election law

Political Calendar

Please submit calendar items to AgendaUtah@UtahPolicy.com

- Oct 8: Mark Shurtleff and Jim Matheson attend Meet the Candidate event at Draper Senior Center, 11 am.
- Oct 8: Jenny Wilson for County Council Fundraiser, silent art auction and performance by Kurt Bestor, 5 pm, Alta Club, 100 E So. Termple, SLC, RSVP 801-521-3766, $50.
- Oct 8: Beau Babka Honk and Wave, BYU Stadium, 6-8 pm.
- Oct 8: Second presidential debate, 7 pm. Moderator: Charles Gibson
- Oct 8: Jim Matheson participates in the Autumn Housing Fair sponsored by the Community Development Corporation.
- Oct 9: Davis County Democrats No-Host Breakfast, 8:30 am to 10 am, Joanie's Restaurant, 286 North 400 West, Kaysville. Contact: Richard Watson (801) 292-6772.
- Oct 9: Scott Matheson and Karen Hale hosts Latino Town Meeting, 1-3 pm, Utah Cultural Celebration Center, 1355 W. 3100 S, WVC.
- Oct 9: Mark Shurtleff at Utah County GOP Women's Fundraiser, 5 pm, Provo Marriott. 801-910-9463.
- Oct 9: Peter Corroon walks precincts in the East Benches. 801-328-2208.
- Oct 11: Mark Shurtleff attends Meet the Candidate event, Northwest Senior Center, 11 am.
- Oct 11: Jon Huntsman at Primary Children's Medical Center Meet the Candidate Luncheon, noon.
- Oct 11: Utah Foundation & Hinckley Institute of Politics lecture on Utah‘s Economy-The Challenges and Benefits of Growth, Noon, U of U Spencer Hall Rm 255. Free to Public. Also broadcast on KUER-FM 90.1.
- Oct 11: Sean Hannity at UVSC, 7 pm
- Oct 11: Meet the Cache County and School Board Candidates Night, 7-9 pm, Whittier Community Center, 290 N. 400 E, Logan. Sponsored by the League of Women Voters and the PTA.
- Oct 11-16: Steve Thompson for Congress Neighborhood Walk in Weber County. Call 435-753-3979 to schedule a visit.
- Oct 12: Jon Huntsman at the Business Expo, 9 am, South Towne Exposition Center; Murray Chamber of Commerce Luncheon, 12:30 pm, Desert Star Playhouse; Salt Lake Convention Visitor's Bureau Conference, 2:30 pm, Salt Palace; Ogden Chamber of Commerce Open Town Meeting, 6 pm, Eccles Conference Center, Ogden.
- Oct 12: Mark Shurtleff attends Meet the Candidate event with Hispanic Chamber of Commerce, 6 pm.
- Oct 12: Beau Babka and Mark Shurtleff attend Meet the Candidate Night with Cyprus HS PTA, 7 pm.
- Oct 12: Open Forum with the Gubernatorial Candidates, 7:30 pm, New Davis Conference Center in Layton, 801-510-1221.
- Oct 13: Gubernatorial Debate, KSL Radio 1160 with Doug Wright, 10 am, KSL studios.
- Oct 13: Third presidential debate, 7 pm. Moderator: Bob Schieffer
- Oct 13: Mark Shurtleff attends Meet the Candidate events: Magna Senior Center at 11 am, Bonneville JHS at 7 pm.
- Oct 13: Mark Shurtleff, Beau Babka, and Jon Huntsman attend UVSC Meet the Candidate event, noon, and Hunter Lions Club at 7 pm, Hunter Library, WVC.
- Oct 14: Sutherland Institute seminar "Ethical Fitness--Being an Authentic Leader," 8:30-11:30 am, 6th Floor 150 E Social Hall Ave, SLC. Register: 801-355-1272.
- Oct 14: Mark Shurtleff speaks at the Minority Community Event, 9 am, SLC. 801-910-9463.
- Oct 14: Radio West "Vote 2004: The Race for Utah Governor", 11 am, KUER-FM 90.1, featuring Scott Matheson.
- Oct 14: Mark Shurtleff visits American Fork Chamber of Commerce, GOP Unity event, 12 noon; State Farm Meet the Candidate Night, 7 pm.
- Oct 14: Hinckley Institute of Politics "Vote 2004: The Race for House District 28", 1 pm, KUER-FM 90.1, featuring Roz McGee and Richard Snelgrove.
- Oct 14: Jon Huntsman attends Gov. Cal Rampton Gubernatorial Forum, 2:30 pm, Highland Care Center, SLC.
- Oct 14: Congregation KolAmi Meet the Candidate Night, 7 pm.
- Oct 15: Mark Shurtleff visits Temple Har Shalom, 7:30 pm.
- Oct 16: Peter Corroon will walk the precincts in Midvale and WVC. 801-328-2208.
- Oct 16: Jim Matheson at the U of U Football Rally.
- Oct 17: Civic Dialogue presents a moderated debate on the Open Space Initiative, 5:30 pm, KUED Channel 7.
- Oct 18: Mark Shurtleff attends Columbus Senior Center Meet the Candidate event, 11 am.
- Oct 18: Jon Huntsman Jr. at Tooele Valley Rotary Club luncheon, 12 pm, Best Western Inn Tooele.
- Oct 18: Gubernatorial Debate, KUTV Take Two with Rod Decker, 6:30 pm, airs live outside KUTV studios on Main Street.
- Oct 19: Hinkley Institute of Politics "The New Government Perspective on Homeless", 10 am, KUER-FM 90.1, a discussion with Mark Johnston, Deputy Director, HUD and Nan Roman, National Coalition for the Homeless.
- Oct 19: Gubernatorial Debate at Salt Lake Rotary Club, 12 noon, Marriott Hotel 75 S W Temple, SLC.
- Oct 19: First District Candidates Rob Bishop and Steve Thompson debate, 7 pm, KUED Channel 7.
- Oct 20: Jon Huntsman visits Ogden Rotary Club, Tooele Chamber of Commerce Meet the Candidate Luncheon, noon, Ivy Garden; Box Elder Meet the Candidates Night, 6:15 pm, Brigham City Community Center; and Weber PTA Meet the Candidate Night, 7:45 pm, Weber High.
- Oct 20: Salt Lake Chamber’s Business Friendly Legislators Breakfast, 7:30 a.m., Little America
- Oct 20: Attorney General Candidates debate, 12:30 pm, Sutherland Moot Court Room, S.J. Quinney College of Law, Univ. of Utah.
- Oct 20: Mark Shurtleff attends Kearns PTA Meet the Candidate Night, 6 pm.
- Oct 21: Radio West "Vote 2004: The Race for Utah Governor", 11 am, KUER-FM 90.1, featuring Jon Huntsman.
- Oct 21: Hinckley Institute of Politics, "Vote 2004: The Race for House District 25", 1 pm, KUER-FM 90.1, featuring Ross Romero and Martine Smith.
- Oct 21: Mark Shurtleff attends Midvale Senior Center Meet the Candidate, 10:45 am; Chamber West Meet the Candidate, 11:45 am; PTA Legislative Forum, 1 pm.
- Oct 21: Jon Huntsman Interview on Radio West, 11 am, KUER FM 90. Oct 21: 3rd Congressional District featured on Bruce Lindsay's Conversation with the Candidates, 6:10 pm, KSL TV.
- Oct 21: Gubernatorial Debate, On the Record with ABC 4 News Reporter Chris Vanocur, 7 pm.
- Oct 22: Radio West "Vote 2004: The Race for Utah's 2nd Congressional District", 11 am, KUER-FM 90.1, with Jim Matheson and John Swallow.
- Oct 22: Mark Shurtleff attends Meet the Candidate at South Jordan Senior Center, 11 am.
- Oct 23: Mark Shurtleff attends Meet the Candidate in Lehi, 6 pm.
- Oct 23: Jim Matheson at the U of U Football Rally.
- Oct 24: Civic Dialogue presents Salt Lake County Mayoral Race Debate, 5:30 pm, KUED Channel 7.
- Oct 24: Third District Candidates Chris Cannon and Beau Babka debate, 7 pm, KUED Channel 7.
- Oct 25: Utah Foundation & Hinckley Institute of Politics lecture on Education-The Debate Over School Choice and Tuition Tax Credits, Noon, U of U Spencer Hall Rm 255. Free to Public. Also broadcast on KUER-FM 90.1.
- Oct 25: Attorney General Debate, 3 pm, KBYU.
- Oct 25: Gubernatorial Debate, KSL-TV, KSL Radio and the Deseret Morning News, Rose Wagner Theatre, 7 pm.
- Oct 25: Meet the State and National Candidates Night, 7-9 pm, Whittier Community Center, 290 N. 400 E, Logan. Sponsored by the League of Women Voters and the PTA.
- Oct 26: Salt Lake Chamber Board of Governors, 7:30 a.m., Chamber Board Room, featuring candidates Jon Huntsman, Nancy Workman, Mark Shurtleff.
- Oct 26: Hinckley Institute of Politics presents "Iraq" a talk by: Jim Mayfield, Professor Emeritus, Political Science Department, U of U, 9:10 am, KUER-FM 90.1.
- Oct 26: Radio West presents "Open Space", 11 am, KUER-FM 90.1
- Oct 26: Mark Shurtleff attends Meet the Candidate events: Salt Lake Chamber of Commerce at 7:30 am, Mt. Olympus Senior Center at 11:30 am.
- Oct 26: Green Party of Utah Roots Local Monthly Meeting, 12 pm, Sprague Library, 1100 East, just past 2100 South, Salt Lake City. Contact: 486-2558.
- Oct 26: Utah Attorney General Candidates debate, 7 pm, KUED Channel 7.
- Oct 27: Mark Shurtleff attends Meet the Candidate events: Taylorsville Senior Center at 11 am, Weber County PTA at 7 pm.
- Oct 28: Radio West "Vote 2004: The Race for Utah State Senator", 11 am, KUER-FM 90.1, featuring Robert Bennett and Paul Van Dam.
- Oct 28: Hinckley Institute of Politics presents "Vote 2004: The Race for Salt Lake County Council", 1 pm, Steve Harmsen and Jenny Wilson featured.
- Oct 28: Second District Candidates Jim Matheson and John Swallow debate, 7 pm, KUED Channel 7.
- Oct 28-29: UEA Convention.
- Oct 29: Gubernatorial Debate, KUED Studios, 7 pm, U of U, airs Nov. 1.
- Oct 31: Civic Dialogue presents a moderated debate on the Utah Constitutional Revision of Marriage, 5 pm, KUED Channel 7.
- Oct 31: US Senate Candidates Bob Bennett and Paul Van Dam scheduled to debate, 7 pm, KUED Channel 7.

- See the entire calendar