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News Highlights
Rocky Anderson, Dave Buhler trade jabs
over state-of-city speech that angered northern Utah residents and
Anderson says Republican Party is extremist and has abused the state
(Salt
Lake Tribune and Deseret
Morning News).
Huntsman administration sacking of economic development
executives angers citizens’ board overseeing the department (Morning
News) and Huntsman plans more major shakeups in state government
(Tribune
and Morning
News).
Legislation is drafted requiring every bill to include
a “Family Impact Statement” (Tribune).
Quote of the Day
" . . . there's an arrogance of power that needs to be corrected.
We are very much committed to economic development, but it feels
like we're not in a political administration. We're in a regime
that feels they can do whatever they like, contrary to the law."
– Dell Loy Hansen, vice chair of the state economic development
citizens’ board, regarding the firing of state economic development
executives (Deseret
Morning News).
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Friday Buzz
Compiled and
Written by LaVarr Webb |
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Leaders Outline Priorities
Utah’s top two legislative leaders joked with each other, discussed
legislative agendas, and pledged cooperation with Gov. Jon Huntsman
at a Republican Party breakfast fundraiser Thursday in Little America
Hotel.
House Speaker Greg Curtis and Senate President John Valentine
identified transportation as a top priority for the session that
starts Monday. Valentine said having higher revenue numbers is both
good news and bad news. Lawmakers can start to make up for the last
several tight years, but more money creates higher expectations
and every entity and interest group wants a share of it.
The focus will be on funding the basics, Valentine said, including
transportation, public education, higher education and public employee
compensation. Both leaders said little appetite exists for any tax
hike that results in a net revenue increase. Curtis said he doubts
a gas tax increase will pass, but instead the House is interested
in devoting $85 million from the general fund to transportation.
He identified the Centennial Highway projects, Legacy Parkway,
I-15 in Utah County, and the Mountain View Corridor as priorities
for transportation funding. In making transportation a top priority,
legislators have the solid support of the Salt Lake Chamber, other
business associations, and many individual businesses and individuals.
Tax reform, a high priority for Gov. Huntsman, will be considered,
Curtis said, but highly controversial reform will probably need
further study before the Legislature will act.
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Sponsored Article
Paper Tiger, Toothless Snarl
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By LaVarr Webb
With a new legislative session
beginning Monday, Utah’s mega-credit union lobbyists and PR operatives
are employing a highly interesting strategy. It might be called
the “make legislators really angry” strategy.
In my years of watching Utah’s
lawmakers in action, I admit I’ve never seen such a strategy work.
But perhaps the lobbyists/PR/advertising gurus retained by the billion
dollar CUs are way smarter than me. It could be something really
subtle: Make ‘em mad, say you’re sorry and make up. And, voila,
they’ll vote your way.
Otherwise, why would these
operatives have mounted a whiny saturation radio campaign that dramatically
escalates this matter when lawmakers made it perfectly clear they
want to address this issue on its policy merits and avoid a big,
nasty media shooting war.
If these strategists aren’t
simply brilliant, why would they publicly attack prominent lawmakers
serving on the Legislature’s Financial Institution’s Task Force?
Particularly after the credit unions themselves asked for the task
force, and then contributed nothing during a two-year study period.
Could it be that instead of
deploying smart strategy, the mega-credit union lobbyists and strategists
are simply desperate? They keep losing on the merits of their policy
positions, so they resort to the only thing they can do—lash out
politically. Like a wounded animal backed into a corner, they snarl
and spit and try to intimidate.
Trouble is, their tactics are
growing tiresome for legislators, especially because despite the
bluster and swagger they have been shown to be a toothless, paper
tiger. They end each fight with a lot of whimpering and whining.
Time after time, when it comes
down to a fair and unbiased decision by a common-sense judge, knowledgeable
lawmakers or expert regulators, they lose. They even lose with their
own members, who overwhelmingly believe that profits retained by
the big credit unions and not returned to members should be taxed.
Consider their track record:
They have lost in state courts. They recently lost a big case in
federal court. They have lost before regulators. They lost in the
legislative fights of 2001 and 2003. They lost before the Financial
Institutions Task Force. They lost several seats in the last election.
They lost in the gubernatorial election. They lost in the leadership
races. They just tried to get the Financial Institutions commissioner
fired – and lost.
So they resort to old-fashioned
power politics with a big media buy and nasty newsletters and Web
site postings quoting scripture and name-calling (all bankers are
“greedy dogs”).
Here’s the fundamental (and
enormous) problem the mega-credit unions have: Their basic position
is simply untenable and unsustainable. In this country we don’t
allow gigantic, wealthy businesses that show none of the characteristics
of a charitable institution, to avoid paying taxes. We don’t keep
subsidizing a welfare mother if she becomes rich. People instinctively
know that taxpayers shouldn’t subsidize billion-dollar credit unions
that want to make multi-million dollar loans to wealthy developers
so they can build expensive homes for rich people. It simply makes
no sense, but that’s what the big credit unions want to do. (Small,
traditional credit unions, by contrast, should be allowed to keep
their tax exemption.)
And so, it shouldn’t be a surprise
that in every public policy forum where these issues are raised
before objective, knowledgeable, fair-minded decision-makers, the
credit union operatives lose.
In private conversations, credit
union insiders even admit they know their position is untenable
and sooner or later their profits will be taxed. They simply want
to hold out as long as they can to grow as large as possible before
the government gets wise about their abuse of the tax subsidy.
And it shouldn’t be any surprise
that, given their shaky position, the CU lobbyists are lashing out,
running whiny radio ads about the mean banks and the Council for
Sound Tax Policy (CSTP), which is focused on the big credit unions’
eroding the tax base.
The problem with attacking
CSTP is that while it has received seed money from the banking industry,
its membership really is made up of local government leaders, education
supporters, and small business people who don’t care a hoot about
the banks, but really are concerned about the rapid erosion of the
tax base as the big credit unions grow aggressively.
Perhaps credit union members
should begin to question the wisdom of allowing their money to be
spent on big, costly media blitzes that do nothing but make legislators
mad and contribute nothing to the public policy debate.
The banks have long recognized
that this has really become a federal issue. That’s why they support
HJR1, which simply restates Utah’s existing policy (which was supported
by the credit unions) and asks Congress to reexamine federal policy
and differentiate between real credit unions and mega-credit unions.
(Article
sponsored by the Exoro Group.)
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Friday
January 14, 2005
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News Notes
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Department of Redundancy Department
A headline link I found in the New York Times on-line edition:
"All
the President's Newsmen. On 'Crossfire,' the hosts lob
softballs at a man who may have been a cog in illegal government
wrongdoing."
A Balanced Transportation System
Watch Sunday's Salt Lake papers for a large ad making the case
for a balanced regional transportation system. Sponsored by Envision
Utah, the ad complements the radio and TV spots that have been running.
Envision Utah Executive Director Alan Matheson said the
ad gives local elected officials credit for having developed a solution
to the region's mobility challenges that includes highways, roads,
commuter rail, light rail expansion, and bus rapid transit. The
ad also encourages readers to watch Envision Utah's documentary
on the same topic at 11:30 a.m. or 4:00 p.m. on KSL TV on Sunday.
The documentary does not advocate for or against specific legislation,
or endorse any particular transportation projects or funding packages,
Matheson said, just the need for an efficient regional transportation
system. The documentary includes Sandy Mayor Tom Dolan listing
projects recommended by the Wasatch Front Regional Council and Mountainland
Association of Governments.
My impression is that Envision Utah has done a nice job making
the case for a major transportation initiative and is supporting
a balanced approach, not singling out transit for support. The Envision
Utah ads even support the Legacy Parkway. For more information,
visit www.envisionutah.org.
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Reader Response
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Thanks to Rep. Kory Holdaway for a nice missive: “Just a
quick note to say thank you for your efforts to pull together in
one spot all the news stories dealing with Utah policies and politics.
I continue to find your efforts very helpful and informative. As
the legislative session approaches your web site will become increasingly
important.”
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Please submit calendar items to Daily@UtahPolicy.com
- Jan 14: Cache County Democrats Big CD Party, 6:30 pm,
Christine and Nathan Hult’s, 2735 N 1250 E, North Logan. For more
information contact Joyce Howell at 435-752-9214.
- Jan 15: Utah Democratic Party Legislative Ball
2005, 6 pm to 11 pm, Marriott Hotel Downtown, 75 S West Temple,
Salt Lake City.
- Jan 17: 2005 legislative session begins.
- Jan 19: "Left, Right...Which Way America?"
A one-hour discussion between Adrian Wooldridge (author of The Right
Nation) and Robert Reich (author of Reason: Why Liberals Will Win
the Battle for America), 6 pm. KCPW is heard at 88. FM, 105.3
FM and 1010 AM.
- Jan 20: Presidential Inauguration.
- Jan 20: Live Coverage of President Bush
Inauguration, 9:30 am. KCPW is heard at 88. FM, 105.3 FM and
1010 AM.
- Jan 27: Last day to request bills (by noon).
- Jan 27: Last day to approve bills for numbering
(by noon).
- Jan 29: Central Committee Meeting.
- Jan 31: Utah Issues 31st Citizen’s Day at the Legislature,
8:30am to 1:30 pm, Prime Hotel, 215 W South Temple, Salt Lake City.
Free event with breakfast and lunch provided. For more information
please visit www.utahissues.org.
- Feb 3: Salt Lake Chamber’s Annual Legislative Reception,
5:30 pm to 8 pm, Grand America Hotel.
- Feb 5: Annual Green Party of Utah Convention,
10 am to 2 pm, Anderson-Foothill Library, 1135 E 2100 S, Salt Lake
City.
- Feb 12: Morgan County Lincoln Day Dinner.
- Feb 12: Utah County Lincoln Day Dinner.
- Feb 18: Last day for legislators to prioritize
bills and other programs with fiscal impact.
- Feb 23: Final meeting for the Executive
Appropriations Committee on all budget matters.
- Feb. 25: Massachusetts Gov. and 2008 presidential hopeful
Mitt Romney speaks at Salt Lake County Republican Lincoln Day Dinner,
7 p.m., Little America Hotel. For ticket information see: www.lincolnclub.net.
- Feb 25: Salt Lake County Lincoln Day Dinner.
- Feb 25: Bonding bill available to legislators
by noon and final action taken on it by calendared closing time.
- Feb 25: Last day to pass bills with fiscal note
of $10,000 or more.
- Feb 26: Republican Women Federation Fundraiser.
- Feb 27: Last day to consider bills from
own house.
- Feb 27: Last day for a motion to reconsider.
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