Message Center |
USTAR: An Introduction
By A. Scott Anderson, Zions Bank, EDCUTAH Chairman
(Reprinted from the Nov. 1 edition of the EDCUTAH Newsletter, The Utah Economic Review)
|
The Utah Science, Technology and Research (USTAR) Economic Development Initiative is an innovative, aggressive and far-reaching effort to bolster Utah’s economy and keep it vibrant in the Knowledge Age. USTAR is designed to attract world-class research teams in carefully-targeted disciplines where Utah already has distinct competitive advantages. These teams will develop products and services that can be commercialized in new businesses and industries that will create high-paying jobs and increase Utah’s tax revenue. (Read article below)
Re-submit Calendar Items
Publisher's note: Due to a software glitch, Utah Policy Daily lost most of our political calendar items going forward several weeks. Please re-submit any calendar items you want to have posted, and we apologize for the inconvenience.
|
|
News Highlights
Gov. Huntsman asks private sector to help poor, elderly with heating bills (Salt Lake Tribune and Deseret Morning News).
Provo mayoral candidates say their battle is nothing personal, even though observers say race is 'roughest' in years (Tribune).
GOP legislators looking to remove sales tax from food (Morning News).
Medicare prescription plan complexity is scaring off seniors (Tribune). |
|
|
Quote of the Day
"We are in the strongest position we've ever been in with this language since [former Rep.] Jim Hansen came up with this idea."
-- Rep. Rob Bishop, commenting on legislation creating a wilderness area that would block rail access to the proposed nuclear dump on the Goshute Reservation (Tribune). |
|
Tuesday Buzz
Written by LaVarr
Webb & Associates |
|
Time to vote!
Voters get their say today in what has been a fairly intense municipal election with some hot mayoral contests. Cast your ballot before 8 p.m.
Washington Watch
Utahns at HHS Doing Fine
I was in Washington, D.C., for some client meetings on Thursday and had lunch Friday (in the HHS executive dining room, no less) with the Utah gang at Health and Human Services -- Mike Leavitt, Charlie Johnson, Rich McKeown, Alison Bell and Alayne Peterson. They are all incredibly busy running the biggest government agency in the country (maybe the world) and they’re in frequent White House contact, in the thick of some of the hottest issues in Washington.
Leavitt is clearly emerging as a go-to guy in the Bush Administration and he seems to be thriving at the major league level of politics. As he did as governor, Leavitt keeps up a frenetic pace, only now his travels extend across the world. The Washington life isn’t for everyone, however. Leavitt will soon be losing Alayne Peterson, his executive assistant for 13 years. She will return to Utah to be closer to family. Natalie Gochnour, another stalwart Leavitt aide, left for similar reasons several weeks ago.
3 Legislators Oppose Legacy Agreement
Three state legislators opposed to the Legacy Parkway settlement, Rep. David Ure (R-Kamas), Rep. LaVar Christensen (R-Sandy), and Rep. Aaron Tilton (R-Springville), will present their views in a Tuesday afternoon press conference at 4 p.m. in the 1st floor foyer of the West Capitol Building. The full Legislature will vote on the agreement in a special session Wednesday at 5 p.m. (Publisher’s opinion: The Legislature should ignore these spoil sports, none of whom are from the northern Utah areas dependent on Legacy.)
National Politics
Excellent, clear-eyed analysis about what sort of Supreme Court justice Samuel Alito would be, by National Journal’s Stuart Taylor. “Any effort to filibuster Alito seems very likely to fail, and likely to backfire against Democrats. The Senate will then confirm him by 60-40, give or take five votes, I'd wager.”
Guest Opinion
An Honest Solution for Lowering Health Care Costs
(By Mark E. Towner, Former CEO, Advanced MD Software; Former CEO, Health Net Services of Washington and Alaska; and Current Public Interest Representative, Utah Health Data Committee)
After nearly a quarter of a century providing management consulting, hardware and software selection, and technical training services to the health care industry, I have come to the conclusion that the only solution to lowering healthcare costs in the United States is to introduce market forces that allow individuals to make their own decisions on how much or little healthcare they need.
The solution is a forward-funded combination Health Savings Account and a High deductible Insurance policy that would only kick in for hospitalization and catastrophic medical expenses. This also provides total portability of coverage between employers, and eliminates the need for COBRA.
The State of Utah, as well as every county government, municipal government, city government, or large employer could stop and even reduce health care costs for their employees, and save taxpayers millions of dollars. This solution also solves the current controversy over benefits for non married domestic partners. The Health Savings accounts and the catastrophic policies are owned and controlled directly by the employee. The employer would pay into an employee’s Health Savings Account $2500 in the first year, and then add $1500-$2500 for following years of employment. The Health Savings Account would be used to then pay in full at time of service or PIFATOS. The Employer would then pay for the employee’s catastrophic insurance plan, and allow the employee to purchase additional catastrophic coverage for family members or civil partners. Employees could also choose to pay directly for their prescription drugs from their savings account, or purchase a standalone Rx policy. The long term benefit for those employees who do not spend their Health Savings Account dollars, is that this money is convertible into a retirement plan upon reaching the age guidelines required. In conjunction with a regular catastrophic health insurance policy to cover extremely costly procedures, PIFATOS can save the average healthy adult and/or family up to $5000/year!*
This is how the system works. Pay In Full At Time Of Service – is truly a “Cash-Based System.” A patient sees a doctor for a non-catastrophic reason – yearly check-up, a nagging flu, a twisted wrist, an aching stomach, etc. The doctor bills the patient after the visit. The patient pays in full with their Health Savings Check/ Debit Card. Because doctor charges are anywhere from 25 – 50% inflated due to administrative costs caused by billing the health insurance industry, you’ll be paying drastically reduced rates for your medical expenses. Providers are only too happy to discount their fees if it means getting paid immediately, and not having to bill and wait for an insurance payment. Annual deductibles and co-pays would be a thing of the past.
Now, ask yourself. How often do you go to the doctor? And when you do, how long does it take the doctor to treat what you have? The fact is, most healthy Americans don’t visit the doctor all that often for non-catastrophic reasons, and when they do, they don’t visit with the doctor for all that long and they don’t receive very elaborate treatment. So why are most healthy Americans paying huge sums of money to insure themselves against regular doctor visits that actually aren’t that expensive?
* In 2004, minimum health insurance for a family cost around $9000/year. Catastrophic health insurance cost around $3000/year. That’s $6000 in savings. By practicing PIFATOS, if you pay $1000 for all your doctor visits/year, you’ll be saving $5000 for the year! www.simplecare.com
Utah Political Trivia
(From "Utah Trivia" compiled by Allan Kent Powell and Miriam B. Murphy)
Q: Where was the first federally funded reclamation project in Utah?
A: Strawberry Valley (reservoir authorized in 1905).
Q: The 1854 Utah territorial legislature offered a cash prize for the discovery of what important resource?
A: Coal within a forty-mile radius of Salt Lake City.
Q: What Utahn was the first public official to travel in space?
A: Senator Jake Garn in April 1985.
Q: What southern Utah area has created controversy between those favoring coal mining and those against it for conservation and environmental reasons?
A: Kaiparowitz Plateau.
Q: What did Governors Herbert B. Maw and J. Bracken Lee have in common?
A: They lost bids for reelection to third terms.
Q: What Utah governor joked that he was both a "Pa" and a "Ma"?
A: Herbert B. Maw
Q: Governor Simon Bamberger is known for what three "firsts"?
A: First non-Mormon, Democratic, and Jewish governor of Utah (1917).
Q: What Utahn was the first woman in America to chair a major national political party?
A: Democrat Jean M. Westwood (1972).
Q: What father and son have represented Utah in the U.S. Senate?
A: Wallace F. Bennett (1951-75) and Robert F. Bennett (1992--). |
|
USTAR: An Introduction
By A. Scott Anderson, Zions Bank, EDCUTAH Chairman |
The Utah Science, Technology and Research (USTAR) Economic Development Initiative is an innovative, aggressive and far-reaching effort to bolster Utah’s economy and keep it vibrant in the Knowledge Age. USTAR is designed to attract world-class research teams in carefully-targeted disciplines where Utah already has distinct competitive advantages. These teams will develop products and services that can be commercialized in new businesses and industries that will create high-paying jobs and increase Utah’s tax revenue.
Who Supports USTAR?
Utah’s business community is leading the USTAR initiative. Many individuals, businesses and associations have been involved in its development, particularly the Salt Lake Chamber, the Economic Development Corporation of Utah, the Utah Information Technology Association, and the Utah Life Science Association. Others who have been involved include key state legislators, the Governor’s Office, state economic development officials, leaders from the University of Utah, Utah State University, and the Utah System of Higher Education.
Why is USTAR Needed?
Utah currently enjoys a solid economy with strong job and tax revenue growth, and we should all be grateful for that. However, a significant long-term structural weakness exists in our economy that must be addressed. The weakness is the quality of jobs in our state and the level of pay in those jobs.
In 1981, the average Utah salary was 96% of the national average. But since then a steady decline has occurred, and today Utah salaries average only 82% of the national average. This is a serious problem, because low salaries make it difficult to support Utah’s large families and educate our children.
The social consequences of having salaries nearly 20 points below the national average loom very large for Utah families:
- Low salaries force more mothers into the workforce, even when they would prefer to be home with their children. Utah has among the highest percentage of two-worker households in the nation.
- Low salaries are one reason Utah leads the nation in bankruptcy rates.
- Low salaries contribute to Utah’s lowest-in-the-nation education expenditures per pupil, even though we contribute a higher proportion of our tax dollars to education than almost any other state.
If Utah salaries were to rise to merely average in the nation, it would mean a 20% salary boost. And we ought not to be satisfied with just average salaries. We ought to aspire to be a high-wage state, not an average state, and certainly not a low-wage state.
Supply and demand in the free market establish wage levels, and properly so. The way to boost salary levels is to attract and create businesses and jobs that pay high wages, salaries that can comfortably support a family.
Are Utah Job Numbers Growing?
Utah’s economy is guaranteed to grow because our population is growing. Our job numbers will grow commensurately in services, construction and small manufacturing. But most of these jobs will not be high-paying. Growth in high-paying jobs is not automatic. It takes smart strategy and concerted focus and effort to build and attract businesses that offer higher salaries, most of which will be in high-tech industries.
The average salary in the information technology industry in Utah is 75% higher than the statewide average annual nonagricultural wage. IT accounts for only 3.7% of Utah jobs, but 6.5% of total nonagricultural wages.
Tellingly, economic analyses show that the decline in average salaries in Utah has occurred in tandem with a decline in technology jobs in the state. Utah’s technology employment dropped from a high of 67,000 jobs in 2000 to only 56,000 in 2004, slipping not only as a percentage of total employment, but even in actual numbers. This has meant fewer opportunities for Utah’s many young people, including graduates of top professional programs, to pursue careers for which they prepared in college.
Can These Trends be Reversed?
Utah’s business leaders believe strongly that the solution to low wages in Utah, and a key ingredient in keeping Utah’s economy strong, is to attract and create high-tech jobs in Utah. That is why business leaders support USTAR.
We believe this initiative will reverse the decline in technology employment in Utah and, over the long-term, create high-paying jobs for our children and grandchildren. We believe USTAR is Utah’s most important economic development initiative in many years and that it complements the Legislature’s and Gov. Jon Huntsman’s other approaches to economic development.
Current data from leading policy think tanks and government sources suggest that despite Utah’s early and substantial successes with advanced technology businesses, the state is in danger of falling behind other states and countries that are specifically targeting the high-tech sector for economic growth. Utah is at a crucial crossroad today and must take action if it is to maintain and improve its position in the high-tech economy.
Technology is advancing at a whirlwind pace across the country and the world. The race is on. Whole new businesses and industries are emerging as a result of basic research and development, mostly centered around research universities. Utah has been a significant player in the commercialization of university research, but much more can and must be done.
What are Other States Doing?
We can’t relax and wait for good things to happen. Success will require smart strategy and aggressive effort. Thirty-two states are now investing large amounts in university research for economic development. A nationwide survey running from 2000 to 2005 showed total state appropriations for high-tech academic research at $29.5 billion, including funds for buildings, university research and high-tech economic development.
Without decisive action we risk failing to keep pace with surrounding states and the rapidly-expanding Asian economies, and we may lose opportunities to generate economic activity in leading-edge industries.
The USTAR initiative is the aggressive and visionary plan we need. It has been developed over several months by leaders from the business community, the universities, the state, and economic development experts. It will put Utah in the forefront of world-class research in carefully-targeted disciplines with multi-billion dollar markets.
In future editions of EDCUTAH Economic Review, we will publish more information about USTAR, including Utah’s specific opportunities in targeted disciplines, how USTAR would be structured and governed, expected return on investment, and the start-up investment needed.
|
|
|
Tuesday
November 8,
2005
|
Please submit calendar items to Daily@UtahPolicy.com
- Nov 8: Municipal election. Polls open from 7 a.m. to 8 p.m.
- Nov 8: Executive Appropriations Committee, 9 am, room W135.
- Nov 8: Rural Development Legislative Liaison Committee, 9 am, room W110.
- Nov 8: Government Records Access and Management Task Force, 9 am, room W125.
- Nov 8: Hinckley Forum "The 9-11 Commission Report a Year Later," 9:10 am. Christopher Kojm, Deputy Executive Director, National Commission on Terrorist Attacks Upon the United States; 1998-2003 Deputy Assistant Secretary for Intelligence Policy and Coordination in the State Department’s Bureau of Intelligence and Research.
- Nov 8: Legislative Management Committee, 11:00 am, room W135.
- Nov 8: Policy Round Table, 11:45 am to 1:15 pm, Alta Club, 100 E South Temple, Salt Lake City. Topic: Are there alternatives to prison? Are we sending the right people to prison? Speakers Don Blanchard, Chair of Board of Pardons and Paroles, Michael Chabries, former Executive Director of Corrections and Associate Professor of Criminal Justice. Questions call Mark Crockett at (801)550-5343 or Dan Burton at (801)358-3613
- Nov 8: Sage Greens Local Meeting, 7 pm, Coffee Club, 4879 South Redwood Road.
- Nov 9: Interim Committee Day
- Nov 9: Legislative meetings scheduled throughout day. See Legislative calendar for details.
- Nov 9: Hinckley Forum "Who Won and Why," 2 pm. A discussion with Dave Buhler, Adjunct Professor, Politcal Science Department, U of U; Council Member Salt Lake City Campaign Interns, Campaign Management Class.
- Nov 9: Cache County Democrats Community Forum, 7 pm, Cache County Administration Building, 179 N. Main Street, Logan.
- Nov 10: 2005 Sutherland Transcend Series,"Education, Poverty, and Family - Understanding Policy Frameworks," Breakfast Keynote from 8:30 to 9:30 am, Morning Seminar from 9:40 to 11:30 am, Lunch from 11:30 am to 12:30 pm, Afternoon Workshop from 12:30 pm to 2:30 pm. For more information contact Stan Rasmussen at 801-355-1272, email si@sutherlandinstitute.org.
- Nov 10: Dispatch Services Subcommittee, 9:00 am, Room W020
- Nov 10: Gov. Huntsman to give welcoming Remarks at Davis Chamber of Commerce Location, 12:15 pm, Castlebrook Reception Center, 930 W. Antelope Dr, Layton.
- Nov 10: Higher Education Appropriations Subcommittee, 1:00 pm, Room W020.
- Nov 10: Utah Constitutional Revision Commission, 1:00 pm, Room W125.
- Nov 10: Gov. Huntsman to visit 4th Graders at Polk Elementary School, 2 pm, 2615 Polk Ave., Ogden.
- Nov 11: Gov Huntsman to give remarks at the Utah Association of Counties, 8 am, Dixie Center, St. George.
- Nov 12: Utah State Democratic Party State Central Committee Meeting, 11 am, Provo City Library at Academy Square, 550 N University Ave, Provo. Agenda includes formation of Veterans Caucus, next spring’s caucus meetings & candidate recruitment.
- Nov 15: House Rules Committee, 1:00 pm, Room W135.
- Nov 15: Senate Rules Committee, 1:00 pm, Room W135.
- Nov 16: Public Education Appropriations Subcommittee, 8:00 am, Room W135
- Nov 16: Hinckley Forum "Mandatory Health Insurance: Is it Right for the University of Utah?" 12 pm. Presentation and question and answer session with Ali Hasnain: ASUU President and John Poelman: ASUU Vice-President.
- Nov 16: Ronald Reagan Republican Club Reception with Ken Mehlman, Chairman of the Republican National Committee, 5:30 pm, Grand America Hotel. For more information, call Mary at 801-533-9777.
- Nov 17: Hinckley Forum, "Should the U.S. Adopt Socialized Health Care?" 2 pm.
Rayleen Ireland, Executive Director of Admin Services for the Department of Workforce Services; MPASA (Master of Public Administration Student Association).
- Nov 19: Republican Party State Central Committee Meeting, 8:30 am, Provo City Council Chambers.
- Nov 21: Democrats of Southern Utah Luncheon, 11:30 am, Dixie Center 1835 Convention Center Drive. Pete Ashdown, candidate for U.S. Senate and Election of D of SU Officers.
- Nov 27: Green Party of Utah Council Meeting, 10 am, Salt Lake County Government Complex, 2100 South State Street, Salt Lake City.
- Nov 28: Hinckley Forum "American Political Cartoons," 10:45 am. A presentation by Lucia Rather, former, Director for Cataloging, Library of Congress.
- Nov 28: Hinckley Forum "Higher Education as an Architect of Democracy: What is our Role in a Time of Profound Social Change?" 12 pm. Harry Boyte, Senior Fellow at the Humphrey Institute, Founder, Center for Democracy and Citizenship. Union East Panorama Room.
- Nov 30: Hinckley Forum "Congressional Update with Congressman Jim Matheson, 8:35 am.
- Nov 30: Hinckley Forum "Utah Conservatives vs. The Christian Right," 11 am, a live RadioWest Broadcast with moderator Doug Fabrizio.
- Dec 8: 2005 Sutherland Transcend Series,"The Quest for Lasting Solutions - Applying Core Principles, " Breakfast Keynote from 8:30 to 9:30 am, Morning Seminar from 9:40 to 11:30 am, Lunch from 11:30 am to 12:30 pm, Afternoon Workshop from 12:30 pm to 2:30 pm. For more information contact Stan Rasmussen at 801-355-1272, email si@sutherlandinstitute.org.
- Dec 13: Sage Greens Local Meeting, 7 pm, Coffee Club, 4879 South Redwood Road.
- Jan 14: Republican Party State Central Committee Meeting, State Capitol Complex.
- Jan 16: 2006 Legislative Session Commences
- Feb 4: Davis County Republican Party Lincoln Day Dinner.
- Mar 18: Lincoln Day Breakfast, Emery County 9:00 am.
- Mar 21: Republican Caucus Meetings.
- Apr 20: Emery County Convention, 7:00 pm, Castledale Recreational Center, 7500 S. 400E.
- May 13: Davis County Republican Party Convention.
- May 20: Republican Party State Convention. |
| - See the entire calendar |
|
Utah Policy Daily
is a service