Economist urges Utah to better fund education

SALT LAKE CITY — A local economist told an audience that included Gov. Gary Herbert that the state has to develop a strategy to better fund education if Utah is to prosper economically in the coming years.

Speaking Monday at the Governor's Utah Economic Summit, former Wells Fargo vice president and senior economist Kelly Matthews implored civic leaders to make increasing education funding a top priority or risk having the state's economy suffer.

"The troublesome economics of Utah's education (system) have a direct and powerful link between educational excellence and economic prosperity," Matthews told the audience of about 850 businesspeople at the Grand America Hotel.

The retired economist also said he believes it was a major mistake for Utah lawmakers to remove the sales tax on food, which had the effect of reducing the amount of funding directed toward education when more students are entering the system year after year.

"I would encourage that it be replaced as soon as possible, particularly in light of the circumstances … related to educational funding," Matthews said.

He said the effect of eliminating the food tax, combined with the fact that Utah ranks among the lowest in the nation in per-pupil spending, was to create potentially disastrous consequences on an already extremely vulnerable population.

"I am convinced that the deterioration that is evident in our education environment is hurting much more those very people who were intended to be helped," he said.

Everyone in the audience should be paying sales tax on food to support the education environment of Utah, he told the crowd.

Matthews said it would likely take at least three years before the state could generate enough revenue to pay for the growth that Utah is currently experiencing in its education system.

Matthews said the funding issues must be addressed immediately or the negative impact could be profound.

"There is nothing as closely correlated between economic prosperity and labor force productivity … as educational excellence," he said.

Besides increased funding, he suggested encouraging more volunteering from private sources to help tutor children, as well as developing more charter schools statewide.

"It's evident that charter schools are performing and expanding educational opportunities," Matthews said.

He also suggested making better use of already existing facilities and eliminating long summer breaks.

"We must begin to understand the role and necessity of some type of year-round school so that we can educate more kids without building more (schools)," Matthews said.

"It's just absolutely imperative that we begin to do some of these things."

Deseret News attempts to contact Herbert for response were unsuccessful.

e-mail: jlee@desnews.com