From Deseret News archives:
Chamber pushes for stimulus measures, gas-tax hike
The group said it plans to push for economic-stimulus measures, use of part of the state's Rainy Day Fund and a boost in the gasoline tax to improve transportation infrastructure when the 2009 legislative general session convenes on Jan. 26.
Speaking at a news conference at The Gateway, Lane Beattie, the chamber's president and chief executive officer, said the chamber is seeking "prudent" cuts, increased state revenue sources and "new ways of doing things."
"We simply must do more with less and still not lose the momentum as one of the most innovative states in this nation," Beattie said.
Officials did not say how much gasoline prices should be boosted, however. Beattie said a chamber transportation committee prefers a "quite substantial" 10-cents-per-gallon "user fee" for gasoline and diesel fuel — adding $100 million in new revenue for the state. "Our board (of governors) has not gone there," he said. "They just believe that the Legislature needs to balance that out."
Keith Rattie, chairman, president and chief executive officer of Questar Corp., said motorists have seen gasoline prices drop $2.50 per gallon since summer, and raising user fees and motor-vehicle registration fees could help the state meet transportation infrastructure needs.
"Most economists — and I believe most members of the chamber — would agree that raising taxes in an economic downturn is generally a bad idea," Rattie said. "But most would also concede that if you've got to do it, one of the most efficient ways is to focus on user fees."
Another chamber priority is bonding totaling $400 million for "projects that are spade-ready within 180 days," Beattie said. Those include the construction of buildings for the University of Utah, Utah State University, Weber State University and Salt Lake Community College. Economists have conservatively estimated such a bond would create 6,400 jobs and lead to tax revenues of $27.6 million, Beattie said.
In the midst of the current recession, the chamber also wants a portion of the Rainy Day Fund put to "prudent" use. Beattie noted that the general and education fund reserve accounts now have about $400 million.
"If ever there was a rainy day, now is that day," he said. "Rainy-day funds should be used for one-time expenditures. Uncertainty remains, and it will be unwise to carve too deeply into these emer- gency funds, but we should use our Rainy Day Fund responsibly in a time of need. Now simply is the time."
The organization wants to minimize cuts to public and higher education, especially those directly affecting classrooms. The chamber supports implementation of merit pay for educators and would like to see programs that meet work-force needs in science, engineering, math, technology and technical trades.
On the health-care front, the chamber supports several bills proposed by members of the Legislature's Health Reform Task Force that would shrink the number of uninsured Utahns and make health care more affordable for state businesses to offer to their employees.
Prior to the news conference, chamber officials presented the priority list to Senate President Michael Waddoups, R-Taylorsville, and House Speaker David Clark, R-Santa Clara. Beattie said both were appreciative but made no commitments.
E-MAIL: bwallace@desnews.com
