State of the State address: Utah Governor Gary Herbert sees 'hopeful' economic future

SALT LAKE CITY — In his first State of the State address, Gov. Gary Herbert told Utahns Tuesday the economy is getting better but the tough times aren't over yet.

Herbert promised that his administration "will continue to make sound policy decision to move this state — and your families — back to solid economic ground and toward a more hopeful future."

His annual assessment of the state, viewed by his fellow Republicans as the right blend of pragmatism and optimism, called for no new spending this year but also new efforts to plan future initiatives.

"Now is the time to make what we've got work," Senate President Michael Waddoups, R-Taylorsville, said after the half-hour speech, delivered in the House chambers of the state Capitol. "He's on track."

The most sustained applause for Herbert came when he said what's best for the state's economic recovery is "continued fiscal restraint and to not raise taxes." While he got a standing ovation from Republicans, Democrats stayed seated.

"When it comes down to it, if we want to hold education and other programs harmless, we will need to find other revenue sources," said Senate Minority Leader Pat Jones, D-Holladay.

The governor, who took office in August after former Gov. Jon Huntsman Jr. resigned to become U.S. ambassador to China, said the state is counting on an increase in revenue in the new budget year that begins July 1.

Herbert said it's up to the 2010 Legislature, which began Monday, to make sure the state adequately funds education, human services, public health and safety, transportation and other critical programs without adding new tax burdens.

"We recognize that the tough times are not entirely behind us," he said. "Indeed, our future success is in large part tied to how we respond to these difficulties over the remaining 43 days of this legislative session."

The governor reminded Utahns he has already submitted a budget to lawmakers that includes no tax increases, dipping instead into the state's Rainy Day Fund and other sources to avoid cuts in public and higher education and minimize them in other areas of government. His budget does not, however, cover growth in public or higher education.

"First and foremost, we must protect public and higher education," Herbert said, calling upon lawmakers "to maintain our current level of commitment to education" in spite of the difficult budget situation, a line that received significant applause from both sides of the aisle.

The governor cited two education groups that will look to improve public and higher education, the Governor's Educational Excellence Commission and the recently launched Utah Cluster Acceleration Partnership focused on shaping higher education to workforce needs.