Bonding becoming attractive to legislative leaders

When money is tight, and you're looking to cut back, even fiscal conservatives want to borrow.

Legislative leaders were told Wednesday night that they should borrow at least $151 million next year to construct seven new buildings and pay for needed repairs on dozens of others.

House Republicans have complained openly in their caucus meetings that state government can't borrow its way out of the current fiscal problems, even with the state facing around a $1.5 billion shortfall in revenues.

But borrowing for needed construction projects at the current low construction and bonding costs is smart money management, said Rep. Steve Clark, R-Provo, a mechanical contractor.

Clark and Sen. Wayne Niederhauser, R-Sandy, a certified public account, told the Executive Appropriations Committee that short-changing state building needs will only cost more in the long run.

"We should bond for even more" than the recommended $151 million, said Clark. "We have shovel-ready projects that can go to bid now. We can save millions of dollars by bonding and building now.

He added that the projects would give a needed "stimulus" to the economy.

Besides the building bond, lawmakers are looking at road bonds, also.

The elected leaders in the House and Senate, from both parties, make up the top budget committee and it is their job to put together the state's nearly $11 billion budget for the next fiscal year, which starts July 1.

Individual budget subcommittees have already trimmed 15 percent from state budgets — and even with the $1.5 billion coming from the federal government there will likely be employee layoffs and reductions in state programs.

Leaders warned the budget subcommittees reporting to them Wednesday and Thursday nights not to count on various fee hikes to make up monies lost in the 15 percent cutbacks.

Other bad-news budget reports that leaders heard Wednesday include:

The state treasure's office wants $61,700 and the attorney general's office wants $90,900 in legal and other fees spent preparing for a St. George airport bond that was never issued.

As reported previously, House Speaker David Clark, R-Santa Clara, doesn't think the city should be stuck with those fees, saying he believes various state agencies dragged their feet in getting the bond ready. St. George city officials finally backed out of the deal.