Governor Gary Herbert says Utah could lead U.S. economic recovery — if feds stay out of the way

OREM — Utah is in a great position to lead the United States in a recovery from the current economic downturn — if the federal government will stay out of the way, Gov. Gary Herbert told a group of Utah County business leaders Friday.

"My concern is not Utah," Herbert said during the Entrepreneurial Business Conference at Utah Valley University. "My concern is the drag we are going to feel from Washington as we build programs that are not sustainable. I see some rebellion going on out here, and I say it's high time."

Herbert also used the occasion to sign a ceremonial copy of a bill passed during the recent legislative session that provided $45 million for a new science building at UVU.

"It was a difficult budget time, but we found a way to pay for that building," he said. "It's important we invest in education. No longer is a high school diploma adequate to go out and compete in the job market."

Herbert quoted a variety of surveys that show Utah in good economic condition compared with the rest of the nation.

"I don't want to diminish the fact that there are many people out of work, but in Utah, it's 7.2 percent — less than the national average of 9.7 percent. It's certainly less than Nevada at 15 percent," he said. "Maybe we need to think in terms of the positive. There is some hope. There are some good things happening out there."

The key, Herbert said, is keeping taxes low and government interference at a minimum to attract business and promote the entrepreneurial spirit.

"We need to make sure that, in Utah, we have that fertile field where the entrepreneurial spirit can grow," he said. "Tax increases will have a dampening effect on this economic recovery. It's just bad economics."

Herbert said the state is promoting itself in states such as California, where increases in tax rates have slowed business growth.

"We have a billboard out there," he said. "We are encouraging people to take a look at us. It says, 'When the going gets tough, the tough get going. Where are they going? To Utah.' "

At the same time, the governor expressed concern that overregulation by the federal government could hurt the state's economy.

"States are the last defense against a federal government that is out of control," Herbert said. "We've got to start saying we won't accept that overreaching. We as a people need to understand and hope there is balance."

He defended so-called message bills passed by the Legislature as an important way to stand up for states' rights.

e-mail: mhaddock@desnews.com