| Business Leaders Want Transportation Funding Boost
Utah legislators heard loud and clear from Utah business leaders Wednesday that major transportation enhancements are needed over the next 10 years or the state’s economy will suffer.
Business leaders gave transportation funding in the Legislature a big endorsement at a “Mobility Summit” breakfast sponsored by nearly every major business association in the state, calling for triple the transportation funding levels over the next 10 years above what is currently projected.
Salt Lake Chamber President & CEO Lane Beattie said more than $7 billion is needed by 2015 or Utah’s economy will suffer, which will in turn hurt education funding and other state needs. The highway, light rail and commuter rail projects that had been planned for completion by 2030 need to be accelerated, Beattie said, “or we can kiss economic development goodbye.”
Beattie’s comments were endorsed by Questar President and CEO Keith Rattie and Rich Walje, Utah Power executive vice president. Numerous business associations have also endorsed accelerated transportation funding. The some 250 business leaders in attendance were encouraged to let the Legislature know that support exists for dramatically increased funding.
“We can’t wait until 2030,” said Beattie. He said gridlock and economic stagnation will occur without better mobility. “The Legislature needs to understand the needs we have and the size of this project. We need to turn over every rock and find the money.”
Reader Responses
From Stephen P. Barker:
“The article in Utah Policy on Wednesday about Consumption vs. Wealth Building (quoting the Wall Street Journal article) is very interesting. It is my theory that the reason Americans spend more and Europeans save more is because most European countries have a Consumption Tax, while the United States has an Income Tax. If that is the reason, the article is a good argument for changing from a national Income Tax to a national Sales Tax.”
From Kathryn Kling:
“Regarding today's ‘Wednesday Buzz’ article, the consumption vs. wealth building information is certainly interesting, but it does not answer the author's opening question ‘Why does Utah have such high bankruptcy and mortgage loan default rates?’ Yes, consumption is the #1 answer for why people in any state default on their debt obligations, but why is Utah consistently the leading bankruptcy state?
“There are several reasons, and some of them are addressed in a 2002 study conducted by two doctors at Utah State University. A good summarization of the results can be read at this website.
The article does not address Utah's high divorce rate, tithing's effect on disposable income, financial scam success rates, lack of state support for uninsured medical expenses, etc., but it does list some interesting stats for other bankruptcy reasons. Your readers may enjoy an article that actually answers why Utah stands out as the bankruptcy king.”
Utah Foundation Research Report
Going for Broke: Utah’s Alarming Bankruptcy Problem
Just in time for holiday spending, the Utah Foundation has released its December Research Report examining Utah's bankruptcy problem. The Executive Summary and the full version of the December report are available here.
The purpose of this report is to provide a historical overview of the bankruptcy situation in Utah as well as to highlight various national and local theories of the causes of bankruptcy that may illuminate why Utah has the highest household bankruptcy rate. This report addresses many different factors that may be salient to the bankruptcy phenomenon in Utah and major findings include:
- Utah has consistently ranked in the top quarter of states with high bankruptcy rates since the 1960s.
- During the 1980s, a wave of bankruptcy filings pushed Utah into the top 10 "worst" states. Since 1998, Utah has been in the top 5 "worst" states.
- In 2002 and 2003, Utah emerged in the top position, replacing Tennessee with the highest household bankruptcy rates.
- Theories on the causes of bankruptcy vary from high home prices relative to income, increasing credit card debt, fiscally irresponsible citizens, declining personal savings and a decline in the stigma associated with bankruptcy.
- Economic factors that may play a strong role in Utah's bankruptcy problem include larger than average families and homes, low wages, high home prices, and high charitable commitments.
In the coming year, Utah Foundation and other organizations will continue to explore the bankruptcy problem to ascertain specifically what is causing bankruptcies to be more prevalent in Utah than in other states.
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