Category

Fiscal Responsibility

Preparing for the Fiscal Challenges Ahead

By Federal Money, Fiscal Responsibility, Governance No Comments

A bill package called Financial Ready Utah is being presented to the Utah Legislature. Senators Henderson, Harper and Osmond recently held a press conference to explain the purpose of the legislation is to prepare Utah to be lesss dependent on federal money. We cannot just sever ourselves from all federal funds, and I am not sure that we will ever want to do that. But we certainly need to be more cautious about how much we are accepting and the strings and requirements that come with the federal money we do accept. We need to be more self-sufficient and be less dependent on federal money. This move from dependency needs to be happening on every level right down to our families.
Here is a link to the press conference and the seven bills being proposed to move us in this direction.

The Financial Ready Utah website has been prepared in conjunction with these ideas. Here is the link:
This is an interactive website. Please contribute your ideas on frugal living and debt reduction and help spread the word.

Senate president Wayne Niederhauser, House Speaker Rebecca Lockhart, Richard Ellis the State Treasurer and John Dougall the Utah State Auditor, co-authored an article encouraging everyone to be involved in preparing for the upcoming financial challenges.

We continue to work on our job of oversight of our state funds. In order to help you understand how the Utah State Budget is divided out, I’ve provided a graphic. As you can see the majority of the budget is oversight through careful management of resources and working to fund essential services. Changes in federal funding, and managing our explosive growth while trying to meet the current needs present a real challenge.
[frame src=”https://curtbramble.org/wp-content/uploads/2013/02/UtahBudgetAllocation_Graphic_600.png” width=”600″ height=”” lightbox=”on” ]

November Budget and Fiscal Report

By Fiscal Responsibility, Revenue, State Budget No Comments

During the session, there are many many important issues that we discuss, but by far the most important job of the legislature is the allocation of the budget. As you are already aware, this year’s budget discussion will have many challenges because there are still so many unknowns. We do not know what will be decided in Washington or how those decisions will affect us. Predictions are grim no matter what they decide. If the sequestration is allowed to happen and the spending cuts take place, our state budgets will be affected. If some agreement is not reached and the debt reduction measures are essentially postponed, economist say that there could be extreme financial consequences within a few years.

You are also probably aware, that in spite of all the recent economic problems, Utah is doing better financially than most other states. Utah’s financial stability is not necessarily due to our Constitutional requirement to balance the budget each year. Forty-eight other states actually have that requirement in their Constitutions. But many of those states have found ways to work around that requirement. Utah’s level of fiscal stability comes from the legislature making responsible, informed decisions and the fact that we fund realistic budgets with the money we have available.

The only way the Legislature has money to spend on anything is if that money is taken from us as citizens in the form of some tax. It is always interesting to me how many times I hear, “The Legislature needs to spend more money on…” But I don’t hear, “The Legislature should raise taxes so that they can spend more on…” People seem to forget that first part about where the money actually comes from.

Careful Oversight of Tax Dollars

The majority of the Utah Legislature is not of a tax-raising mindset. Occasionally, as may need to be discussed this year, the incoming tax revenue is simply not high enough to cover the existing needs of the state. In that situation, the choices are simple: eliminate and/or reduce existing programs and/or increase taxes. Over the past few years, departments have been asked to cut and trim internally so that budget dollars can stretch and for the most part they have done a good job. But our state’s needs continue to increase, our school populations are growing and federal requirements are creating more of a strain. All of these elements add up to the possibility of increasing taxes.

Town Hall Meeting

By Economy, Fiscal Responsibility, Governance, Legislative Update, State Budget No Comments

Senator Bramble, Speaker Lockhart, Representative Sanpei and Representative Stratton joined together to hold a Town Hall Meeting. Thank you to all the people who came. We had an engaging and interesting discussion about upcoming policies, economic development, education, federal mandates, taxation, states rights, federal lands, revenue, Medicare, healthcare and more.

If you would like to join us for our next Town Hall meeting please be sure to register for my emails and we’ll send you an announcement.

Interim Committee Summaries

By Economy, Education, Fiscal Responsibility, Governance, Legislation, Legislative Update, Revenue, State Budget No Comments
August:

The Executive Development and Workforce Services Committee heard a report from Kristen Cox, the executive director of the Department of Workforce Services on SB 37, “Intergenerational Poverty Provisions” passed by Senator Reid in the 2012 session. Ms. Cox reported on the department’s plans to create a tracking system that will identify trends and assist case workers as they pinpoint children who are at risk of being trapped in intergenerational poverty. The new research they are collecting will set a benchmark so that we can see what the best strategies would be to help break this cycle. The final results of their study will be made public in October.

The Health and Human Services Committee heard testimony on the parental rights of biological fathers in the adoption process and a report from the Utah Department of Health on efforts that are being made to promote wellness strategies among Medicaid enrollees. According to the Center for Disease Control and Prevention, the biggest expenditures in health care (at least 75%) goes to treating heart disease, diabetes, arthritis and cancer–all of which are generally preventable. They estimate that more than $16 billion could be saved annually by preventing or delaying the onset of these chronic diseases. In Utah we are establishing several programs to help encourage better health practices such as a smoking sensation program, a chronic disease self-management program and preventative dental care program. These sorts of programs teach healthier behaviors and accountability to people, reducing many of the problems that cost so much in healthcare.

The Law Enforcement and Criminal Justice Interim Committee identified capital punishment as the highest priority for the committee to study this year. In June’s discussion of the issue the committee was presented with a comparison of Utah’s capital punishment execution rate, number of death row prisoners and expenses, with those of other states. This month the discussion continued, with testimony that focused on the fiscal costs (not the pros and cons) of capital punishment versus life in prison without the possibility of parole; the capital offense punishment process and the appeal process. It was a very interesting discussion. You can listen to it here if you would like.

The Natural Resources, Agriculture, and Environment Committee had a report on the Children’s Land Alliance from director, Margaret Bird. This is a multi-state non-profit corporation that helps to manage the school trust lands in Utah and lands in other states, some of whom do not have trust lands. School trust lands are an important part of our discretionary school funding and must be managed carefully.

They also heard a report from the Division of Wildlife Resources on how tags and licenses for big game hunting are administered and what sort of opportunities the state has for promoting those hunts. This year thousands of acres of prime game habitat was burned. The reseeding program will help recover the damaged rangeland, but in the meantime there will be many displaced animals, which will likely affect the hunting season.

Tax funding for roads is always a major subject of discussion. The Revenue and Taxation Committee took public comment on that issue this week. Some of the concerns that were brought up were the problems that local municipalities are having with road bonding for maintenance purposes and the decreased funding from gas tax revenue. The committee voted to hold a daylong summit to discuss possible ways to address these problems and help fund transportation in Utah.

Along the same lines, the Transportation Committee heard an update from UDOT’s Linda Hull on the federal highway program. They also discussed the need for increased transportation options in the Uintah Basin area.
Here is a link to the meeting.

September

One of the items the Law Enforcement and Criminal Justice Committee discussed was seat belt compliance law. In Utah, 70% of all crash related fatalities occur in high-speed crashes. However, people involved in those high-speed crashes are 13 times more likely to survive if they are using seat belts. Please be careful as you drive and always wear your seatbelt.

A presentation on water rights issues took place in the Natural Resources, Agriculture and Environment Committee. Michael Styler, the Department of Natural Resources Executive Director presented 12 proposals for legislation that would clarify the use of water rights in the state.

Both the Political Subdivisions and the Revenue and Taxation Committee heard reports on the recent UTOPIA audit. Eleven Utah cities formed a consortium, pledging about $500 million over the next 32 years to back the necessary bonds to finance the Utah Telecommunication Open Infrastructure Agency (UTOPIA), an organization that would build a high-speed fiber-optic network. However, the network has yet to make a profit. The legislature requested that an audit be done to see what the ramifications will be to the cities in the consortium and the results are not good. According to the audit, UTOPIA is failing because of poor management and wasteful spending. So the cities (actually the taxpayers) are left on the hook to pay for a failing company. Sadly there is very little that the state can do to remedy this situation for the cities. Here are some thoughts that Senator Valentine had on the problem.

The Business and Labor Committee heard a follow-up from last month’s discussion on Alarm System Security Licensing. The language in the current law needs to be clarified because right now, people who work for alarm system companies such as janitors or human resource agents are required to hold a license. The Alarm System Security Licensing Board has indicated that this is unnecessary and so the language needs to be clarified. They also heard recommendations for procedural changes from the Uniform Building Code Commission and the Utah State Fire Prevention Board.

A report on the state’s Tourism Development plan was given to the Economic Development and Workforce Services Committee. The good news is that tourism related taxes are continuing to rise. This is due in part to the hard work of our tourism development team that has placed representatives in several European nations and makes a considerable effort to promote the wonders of our state around the world.

Last month that committee had a discussion on intergenerational poverty. S.B. 37, passed last session by Senator Reid, provided for a study on the intergenerational poverty in our state. The results of the study will be presented at a conference on October 9th. You can find details about the conference on this pdf.

The Education Committee was long this month. There was a discussion on the Replacement of the State Superintendent, a report on teacher quality and employment reform, discussion on the possibility of funding a state preschool and a report on the UPSTART program. (UPSTART is a computer pre-school readiness program that can be done at home.) If the state decides to implement a pre-school program it would be contingent on such requirements a small class sizes, trained teachers and use of a research-based curriculum. Senator Osmond is proposing the legislation. There was also a report given to the committee about what will happen as a result of federal sequestration to our education budgets. As part of the Budget Control Act of 2011, Congress was required to reduce the deficit by at least $1.2 trillion by January 15, 2012. Because they failed to do so, automatic across-the-board spending reductions will be instated in the FY2013 federal budget. The mandatory reduction rate will be either 8.2% or 7.6% depending what is being funded. If you would like to hear any of these discussions you can listen from this link.

A very interesting report was given to the Public Utilities and Technology committee on Utah’s coal industry. Last year 20 million tons of coal was extracted from Utah mines. There are nearly 5000 jobs in our state that are directly or indirectly related to our coal industry. This puts $600 million into our local economy. Some of Utah’s highest paying jobs are directly related to coal mining. This is a great boon to many of Utah’s rural areas. Additionally, because coal based electricity is so inexpensive here, it is a great incentive to entice business to build here.

The Transportation Committee heard reports on the results of a pilot program that increased the speed limit to 80 mph. in certain sections of the state. The results were good, showing enough of a decrease in accidents that the Department of Transportation is considering the change for other parts of the state as well. The Department also reported that it is looking into increasing the number of carpool lanes in the state as well.

The Senate also met quickly on the floor to confirm gubernatorial appointees. Here are the names of the appointees.

Utah Poised to Be Best State to Live in

By Economy, Fiscal Responsibility, Great Place to Live No Comments

13-Forward Looking Metrics: I was pleased to see that a Gallup survey released earlier this month gave Utah yet another accolade. The survey asked questions in 13 areas about such things as health, environment and employment. The results ranked Utah as the best place to live in the nation. It’s no surprise to me.

Keeping it that way: I am proud to represent you in “the best place to live.” Good policy goes a long way to helping us continue the trend. As the article suggests, “… focusing on the metrics that have the most impact on forthcoming economic, health, and social wellbeing outcomes, leaders will be able to realize the greatest return on their investment.” And Utah will continue to be a great place to live.

Update 2012 – Week 3

By Economy, Fiscal Responsibility, Legislative Update, State Budget No Comments

Dear Friends and Neighbors,

We have completed week three. This week like the last two, we spent a lot of time in committees.

Committees are where bills go through their first vetting. Each legislator is a member of at least two standing committees and one appropriations committee. President Waddoups assigns a chair to each standing committee and a co-chair to each of the appropriations committee. (The appropriations committees are co-chaired by a House member and a Senate member.) The committee chairs, run the meetings, set the agenda and oversee the hearing process that the bills receive.
[quote align=”right” color=”#0D3F7C”]Our state Constitution requires that we run on a balanced budget.[/quote] A standing committee hears debate on bills that relate to their assigned emphasis and topics.  In the meeting, the bill sponsor presents the bill and what it will accomplish, then members of the committee ask clarifying questions. If you have a concern with or are in favor of a bill, this is a great place for you to participate. Members of the public are invited to comment and testify in behalf of or in opposition to a bill. Committee members ask clarifying questions of public witnesses as well. After the bill as had its hearing, committee members vote on its merit. If it passes, then it is sent to the floor for further debate. If it fails it does not go to the floor. However, if a bill fails, it can still be brought back to the committee at a later date.

The appropriations committee set the budget priorities for their areas. Our state Constitution requires that we run on a balanced budget. So each appropriation committee begins with a base budget, hears from the different entities as to their financial needs and then votes on how they will distribute the available funds.

I serve on the Tax and Revenue and Business and Labor standing committees and the Business, Economic Development, and Labor appropriations committee.

Here is a link where you can find the different committees and the bills they are discussing.

We did do quite a bit of work on bills that have reached the floor this week. Here are some bills that might be interesting to watch.

SB 156 (Senator Valentine) this bill makes the post-retirement benefits for all state elected officials the same as other state employees.

SB 17 (Senator Jenkins) makes the process of getting ballot initiatives on municipal ballots less cumbersome and SB 46 (also Senator Jenkins) provides a way to preserve Utah farmlands.

Senator Stevenson is sponsoring SB 49 that will help keep Hill Air Force Base productive and protected from federal cuts.

SB 31 (Senator Morgan) deals with classroom sizes.

SB 128 (Senator Romero) address teenagers using cell phones while driving.

SB 112 (Senator Niederhauser) looks at changing the taxing structure of cable television.

SB 161 (Senator Bramble) makes Oncology drugs available to patients through their specialized doctor to save them a trip to the pharmacy while they are going through the horrible side effects of cancer.

You can find information on these bills and any other bill that interests you by going to the legislative website. 
type the number of the bill (for example SB 111 or HB 111) in the search box on the right side of the page and you will be directed to the information page for the bill. You can also search for bills by typing in a subject or the name of a legislator.

Each week on the senate floor, we honor Utahns who have done remarkable things. This week we honored Utah’s Teacher of the Year, Leigh Vanden Akker and eight rodeo champions, including the 2011 Bareback Riding World Champion, Kaycee Fields. You can see pictures of these and other events that have happened at the capitol this week on our Facebook page.

[quote align=”left” color=”#0D3F7C”]I am grateful that the economy seems to be moving in the right direction. However, one of the realities that we need to deal with this year (and in years to come) as the State’s budget is crafted is the uncertainty of federal funds.[/quote] I am grateful that the economy seems to be moving in the right direction. However, one of the realities that we need to deal with this year (and in years to come) as the State’s budget is crafted is the uncertainty of federal funds. Utah’s total budget is about $12 billion dollars. But the biggest single source of our funds –just over $5 billion—comes from the federal government. Federal money is just our own money, returned back to us from the federal taxes we pay and over the past decade, Utah has received an average of $1.29 for every $1 of federal tax we pay into federal coffers, but in about half that time, our dependence on that money has risen nearly 5%. It is our dependency that is my concern.

On the federal level, things do not look good. Some have dubbed those who are currently elected as the “do-nothing” Congress. They have failed to address problems ranging from education and transportation to immigration and pensions. Despite all the talk, the debt ceiling continues to rise.

In the last two years, public dependence on federal “assistance” has gone up 23%. “Dependance programs” (housing subsidies, Medicaid, food stamps etc.) account for more than 70% of the federal budget and at the same time that rate is increasing, nearly half of all Americans (49.5%) don’t pay any income tax. (Source: Heritage Foundation) The nation will not be able to sustain this inequitable rate—not even by increasing the rate of taxes on high-income households.

One thing the 112th “do-nothing” Congress did do is give us a glimpse of what can be expected in the future. The Budget Control Act, passed last August will reduce state discretionary program funds over the next nine years. (But the states have no idea where the funds will be cut.) Congress’ inability to reach a consensus on a comprehensive federal deficit reduction plan means that some mandatory state-federal grant programs could lose as much as 9% of their funding in FY 1213 and defense spending cuts could go as high as 10%. At the same time, federally mandated Medicaid will take up a larger and larger share state budgets.
[quote align=”right” color=”#0D3F7C”]We are cognizant that we need to pay down existing debt and increase our savings as much as we can. We are trying to run the state budget the same way you run your home budget.[/quote] We are doing what we can to prepare for these reductions. Last year, HB 138 required all state agencies assess their reliability on federal funds and create contingency plans of how they would operate on 5% and 25% fewer federal dollars. (There were four senators absent for the final vote of this bill, but other than those four, it passed unanimously off the floor.) We are being cautiously judicious as we listen to the various needs presented in the appropriations committees. And we are cognizant that we need to pay down existing debt and increase our savings as much as we can. We are trying to run the state budget the same way you run your home budget.

On a more up-beat note, according to a report released this week by the Goss Institute for Economic Research, the overall business condition in Utah is at a “vigorous” level. Indicators from production, sales, inventory levels and new orders in manufacturing have ranked us at the top of the Rocky Mountain Region. (Source: Goss Report)

Utah is a great place. We work hard and expect success. We need to continue on the prudent course we have set, doing all that we can to promote growth and stability across all spectrums in the state. I am grateful to represent you in that process.

As always I welcome your opinion and input on our activities during the session.

You can contact me at (801)361-5802 or by email.

Also, please join me at our town hall meeting, Eggs and Issues, on Saturdays at  7:30am at the Urgent Care Building at the Utah Valley Regional Medical Center. (The old granite furniture building on the corner of Bulldog Blvd. and 500 West in Provo).