Incredible Budget Sets Up Tough Legislative Session
Utah’s booming economy is performing better than any time in the last quarter century, maybe longer, and is generating tax revenue in unprecedented amounts.
All of which has led to a fiscal 08 state budget that is almost beyond belief. Consider that surplus money from the 2006 fiscal year (actual surplus now in the bank), plus surplus money forecast in the 2007 (current) fiscal year, plus new money (above the 2007 budget) forecast in the 2008 fiscal year (which the Legislature will be budgeting for), and you get a whopping $1.6 billion in additional money.
That’s $1.6 billion in available money above the 2007 approved budget -- about $900 million in one-time money (the surpluses from the 2006 and 2007 fiscal years) and $700 million in on-going money (new money forecast for the 2008 fiscal year).
That’s an absolutely incredible amount of additional money, above current base budgets, available for the governor and lawmakers to spend.
How it is spent, of course, will be the subject of intense debate, and every interest group imaginable will be jockeying for a share. All that money makes for a more difficult legislative session, not an easier one. Conservative lawmakers will want to cut taxes by a substantial amount, and already the House Majority Caucus says it wants to increase public education spending by $300 million, and cut taxes by an equal $300 million. Those two items would take $600 million of the $700 million in available on-going money, without dealing with state employee salaries or growth in agency programs. The entire $900 million in one-time money would still be available to play with, however.
It is, of course, far too early to predict what will happen with the budget. The lawmakers will be bumping up against spending caps and will be looking for places to park one-time money where base budgets won’t be increased. The lawmakers will meet for weeks in appropriations subcommittees to review higher ed, public ed and state agency needs. As those needs are outlined, enormous pressure always exists to increase agency budgets. The House, Senate and governor may have different budget priorities, although all seem to agree that public education is this year’s top priority, along with transportation funding.
The form and size of tax cuts and tax reform will be a matter of hot debate. All in all, it’s going to be a fascinating 2007 legislative session.
Chamber Hails Huntsman Budget
In a position statement, the Salt Lake Chamber Board of Governors commends Gov. Huntsman "for the forward-thinking and investment-rich budget that he released [yesterday]. His recommendations come at a time when Utah has an abundant economy that allows us to invest aggressively in our future. To this end, Gov. Huntsman has rightly called for record-level funding for transportation and education -- two keys to our economic future. On behalf of our membership, which includes one in every three jobs in the state, we thank the governor for his foresight in investing in our future prosperity."
Washington Watch
Matheson: Nursing $$ for CEU
Rep. Jim Matheson announces that "the US Department of Labor is awarding a $1.2 million grant to the College of Eastern Utah-San Juan Campus-to expand nursing education at the Blanding school. The funding is from the President's Community-based Job Training Center" (see press release).
National Politics
Federal Budget Disarray
Here’s another NationalJournal.com column by Stan Collender showing once again how broken the federal budget system is. Another recent national story described how the federal government keeps at least three different sets of books to hide the fact that it plays a shell game with the budget so it can report lower spending and deficits. The reality is far worse than is reported. If state government or a publicly-traded business operated the way the federal government does heads would roll and people would go to jail. The federal government is bankrupt and needs to go into receivership and be broken up with some of its assets distributed to the states, which are far more responsible.
Don’t Fight the Last War
Political guru Charlie Cook, in his “Off to the Races” column in NationalJournal.com, says anyone who tries to see the 2008 election through the 2006 lens will almost certainly get it wrong. 2006 defied the “all politics is local” conventional wisdom, but that may not be the case in 2008.
Political People
The Salt Lake Board of REALTORS® has hired Justin Y. Allen as director of local government affairs. Allen, a Centerville City Council member, most recently worked for the Utah Republican Party as political director.
Allen, 29, was deputy district director for Congressman Rob Bishop from 2003 to early this year. He also previously worked on the `02 Bishop congressional campaign, the Orrin Hatch presidential campaign in `99-`00, and completed an internship at the Utah State Legislature in 1999. He is also very active in the State and Davis County Republican Parties. Allen is a graduate of Bountiful High School and BYU, where studied Japanese and political science. Justin and his wife Lisa have two children, with a third child expected next spring.
Allen joins CEO Bryan Kohler and Government Affairs Coordinator Emily Norris on the Salt Lake Board of REALTORS® Government Affairs Team. He can be reached at (801) 698-5334 and justin@saltlakeboard.com.
Blog Watch
At the Senate Site, Sen. Michael Waddoups publishes an op-ed that appeared previously in the Morning News reporting on the work of the Privately Owned Health Care Organization Task Force. … Utah Taxpayer says: "Recently, the MSM has been beating the Utah-teachers-aren't-getting-paid-enough drum. Before taxpayers take the MSM's arguments hook, line, and sinker, they should look at some of the facts that the MSM doesn't want you to know".... At Out of Context, Thomas Burr reports: "Les Kinsolving, a right-wing radio host who often asks the odd, out-of-place questions during White House news briefings, asked a doozy recently of WH press secretary Tony Snow. Kinsolving wondered whether President Bush would support Congressman-elect Keith Ellison, the first Muslim elected to Congress, in his quest to be sworn into office by putting his left hand on the Koran instead of the Bible. (That swearing in is purely ceremonial; the real one is done as a group in the House). 'Does the President support this request, because he believes the Koran teaches nothing contrary to the freedoms in our Constitution?' Kinsolving asked. 'And if so, would he support the Book of Mormon being used to swear in LDS members of Congress if they ever ask for that?' Snow didn't bite. 'That is an issue that the President does not need to adjudicate, and therefore, will not.' Another radio host, Dennis Prager, started the brouhaha when he wrote a column about the use of the Koran for such a ceremony. In an interview with Fox News, Prager added, 'If a Mormon-American decided to substitute the Book of Mormon for the Bible, I would have the same problem.' A Mormon-American? Is that like a Catholic-American or a Protestant-American? Hmmm".... Chris Cillizza reports: "Gov. Mitt Romney (R-Mass.) continues to pick up staff talent from Capitol Hill, hiring Joe Wall to serve as assistant political director for his all-but-certain 2008 presidential bid. Wall was Majority Whip Roy Blunt's (R-Mo.) floor assistant during the recently concluded Congress -- meaning that he was on the House floor during most votes and developed strong relations with lawmakers. ... One of Romney's tasks over the first part of 2007 will be to build relationships with GOP members of Congress. Sitting lawmakers are major players in the battle for buzz among the political chattering classes and some bring with them political organizations in early states that could aid a would-be candidate's bid. Since Romney's home state of Massachusetts lacks a single Republican in its congressional delegation, he needs to find other senators and representatives willing to introduce him around the halls of Congress. Wall, who is expected to move to Boston at that start of next year, should facilitate Romney's attempt to do just that."
Favorite Headlines
(Source: James Taranto’s “Best of Web” at OpinionJournal.com)
-- Those Are Some Powerful Eyes
"Ford Eyes Making Its Roofs Stronger"--headline, Courier-Journal (Louisville, Ky.), Dec. 6
-- Some Mutual Funds May Flounder Too
"Fish Stocks to Fall as Oceans Warm"--headline, Australian, Dec. 7
-- Keeping Dangerous Animals Without a License
"Charges Filed Against Noah's Ark Owner"--headline, Grunion Gazette (Long Beach, Calif.), Dec. 7 |
