2009 Legislature: Time for more budget cuts

Only one day into the 2009 Legislature and Republicans are getting set to cut another 4 percent from current state budgets.

The pain will be felt in all departments, House Republicans were told Monday evening just before the 53-member GOP caucus voted almost unanimously to make the tough reductions.

The real pain, however, will come later in the 45-day session that opened Monday when the budget for the next fiscal year, starting July 1, is set.

As part of that, some moderate House and Senate members are asking that a general tax increase should be considered.

"I supported this — but I see now it was a mistake," Rep. Kory Holdaway, R-Taylorsville, said about lawmakers' decision to take much of the state sales tax off of food.

"The Senate is talking" about putting part of the tax back on food, Holdaway said. "And it should be part of a serious discussion."

However, several House conservatives immediately jumped up in the GOP caucus to say any general tax hike would be a mistake.

"Pulling more money (through a tax hike on a basic need) will do more harm than good in the long run," said Rep. Greg Hughes, R-Draper.

And increasing the food tax would likely be opposed by GOP Gov. Jon Huntsman Jr., who points to reducing that tax as one of his top accomplishments in his first term.

Huntsman was roundly criticized in the open House caucus, although his name was not often mentioned. House Speaker David Clark, R-Santa Clara, went on at some length over how Huntsman not only refused to call legislators into a special session last November to deal with the growing budget deficit, but has stopped "dead" the issuing of $1.2 billion in road bonds for projects that could be helping Utah's failing economy.

Once counting quietly to 10 to control his rhetoric, Clark said he is mystified by Huntsman's actions — saying the state is spending $2 million a day it doesn't have and now legislators have to cut more deeply to balance the budget by fiscal year's end, June 30.

Privately, Clark also complained to lawmakers that GOP leaders have to talk to Huntsman's budget director, instead of the governor himself, over renewed negotiations on this year's budget cuts. House Republicans voted to trim 7.5 percent from current budgets, and then put back in 3.5 percent (in most budgets) — meaning 4 percent must be cut this year. That means about $175 million more must be trimmed.