Crisis forcing lawmakers to make unpopular choices

The legislative session is two weeks old and is heating up by the hour. We provide our insights on key issues dominating Capitol Hill:

 With the budget and economic woes, is this the toughest legislative session in Utah history?

Webb: Utah has clearly faced worse times, certainly during the Great Depression and probably other economic downturns before my time. But I've been watching the Legislature for more than 30 years, and I can't remember a situation this difficult, with the entire country in the worst economic crisis since the Depression, consumer spending frozen and entire industries collapsing. Gov. Norm Bangerter had to raise taxes in the late 1980s to prevent deep cuts in education, but this downturn is worse than that one, or soon will be.

Pignanelli: It's official, I am now a curmudgeon. Together with many graying veterans at the Capitol, we are harrumphing: "This budget crisis is nothing. Utah's economy in 1986-1988 was a disaster and state budgets were a nightmare. You guys have it easy." Indeed, state officials two decades ago were staring into the abyss. State expenditures were brutally slashed and taxes were raised across the board. Serious consideration was given to imposing a specific sales tax on soda pop (a true indication of a catastrophe since most of the state prefers its caffeine cold and carbonated). The Capitol rotunda and airwaves were frequently filled with screams of angry protests. A tax reduction referendum was launched, and Merrill Cook became a recognized figure. So far 2009 does not mirror 1987.

 To balance the budget, will lawmakers cut state spending, raise taxes or both?

Pignanelli: Regardless of party affiliation, Utahns are frustrated and aggravated with government in general. Thus voters will not tolerate officials raising taxes anytime in the near future. Revenue projections for the 2010/2011 budget will again be challenging, but no discussion of income or sales tax increases. There could be serious consideration of a gas tax increase, but in the special session later in the year. The budget will be balanced through slashing services and borrowing.