Huntsman sets the bar high
The financial plan reflects a booming economy, projected record tax surpluses and remarkably low unemployment rates. These factors present an opportunity to significantly increase public and higher education funding, address transportation infrastructure and plan for future workforce needs. Or as Huntsman explained in a meeting with us Tuesday afternoon, it's an opportunity to "shore up the basics."
Huntsman has established high expectations in the opening salvo of next year's budget deliberations, as he should. State legislators cannot stand behind the tired arguments that there's not enough money to give teachers, college professors and state employees sizable raises. The same goes for reducing class sizes, making greater investments in the state transportation system or paying for "optional" Medicare programs such as dental and vision care.
As the governor's budget indicates, these are times of plenty. There's revenue to do a substantially better job of delivering the basics, with money to spare. Huntsman proposes giving teachers a substantial raise and a bonus. Huntsman's plan also envisions $100 million in tax cuts and leaves more than $27 million on the table to entertain proposals that emerge during the legislative session.
Setting the state budget is ultimately the responsibility of the Utah Legislature, which is at work on its own proposals. Lawmakers have the unenviable job of establishing a budget that addresses state government's core functions yet can be sustained when revenues are not so robust. It's a difficult job, even under good economic conditions.
While the Huntsman budget provides a springboard for those discussions, it also raises a number of difficult questions. The budget is silent on removing the sales tax from food, although Huntsman says he continues to support a repeal. Economic indicators suggest this is the time for lawmakers to fully repeal this tax, which would cost about $100 million.
The governor's budget also proposes a 7 percent increase in the value of the weighted pupil unit, which would largely go to teacher salaries. He also envisions spending about $25 million for a one-time teachers bonus. Utah needs to do more to attract and retain quality teachers. No one should argue against a pay raise for teachers, who are among some of the lowest compensated in the Rocky Mountain region. Teacher bonuses, however, should be tied to performance.
For the most part, Huntsman's budget is pragmatic. It attempts to address the challenges that accompany Utah's economic boom. For the first time in memory, Utah is facing a worker shortage. Towns and cities experiencing rapid growth due to oil and gas development are struggling to maintain their infrastructures. The state's transportation system must be able to move Utahns and goods from Point A to Point B in an effective fashion.
State lawmakers, of course, will have their own vision for the state's needs in this time of plenty. But credit Huntsman for setting the bar high and opening Utahns' eyes to the possibilities.
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