March 19, 2009

"...we have $420 million in the rainy day fund, along with an additional hundred million dollars just specifically appropriated for education that we’re carrying into the next legislative session..." -Governor Huntsman

DAN BAMMES, KUER: Thank you, Governor, for joining us today. Some members of the legislature were saying as the session was closing that we made it through this year with the help of Federal Stimulus money, and they’re all worried about next year. And they think without the same kind of support from the Federal Government it would be like the state fell off a cliff. And what are you doing to avoid the precipice?

GOVERNOR HUNTSMAN: I’m a little more optimistic than that. In fact a lot more optimistic than that. I think number one, you’re going to see an economy that is more buoyant going into 2010, and that, of course, is in large part dependent upon the banking system being made more liquid, and once again loaning money out to individuals and small businesses. So you know we’re some distance from that happening, but we’ll get there.

The fact that we have $420 million in the rainy day fund, along with an additional hundred million dollars just specifically appropriated for education that we’re carrying into the next legislative session, and additional bonding capacity, and the ability to tap, for example, you know, revenue enhancement measure like tobacco just as one example. As far as I’m concerned we’re going into the next year or two with all options open and available, which is unlike probably most any other state.

So I feel very good about where we sit, and where we’re going over the next two years, at least. And if the economy hasn’t improved by then, in other words if we’re not growing out of the hole we’re in, then we’ve got problems well beyond anything that we might imagine today.

JEFF ROBINSON, KCPW: Governor, the legislature wants to turn down some $60 million in unemployment funds from the federal government. They say that it would lead to an inevitable tax increase if we use one-time money to fund something, that would have to be an ongoing commitment. Should we turn down this money?

GOVERNOR HUNTSMAN: Well, the answer today is no. What I think we need to do, instead, is take a good look on balance at what this money would mean to those who are caught in a very difficult set of circumstances these days. The money is different in a sense, because it would be directed towards something we’ve never really paid much attention to before, and that is underemployed as opposed to unemployed. And so this would be an altogether new approach to dealing with those who are working part-time, not full time, and are therefore considered underemployed. Which is increasingly a problem. It’s an issue that, in today’s weak economy, everyone has to be concerned about.

So you’ve got $61 million on the table, it was about $7 billion total of the $787 billion package, so it was kind of a 1 percent issue. And every state is going to have to really evaluate this carefully and say, if we take it, what are, then, the long-term implications? Does it mean that businesses are going to be strapped with some sort of increase in unemployment costs, and therefore taxes going forward? And I don’t think anyone has the answer to that.

We’re having conversations through our department of work force services, we’ve got a committee there under Kristin Cox that is part labor, part companies, and part public. And they’re having this very conversation. So I think we’re going to want to listen to business, I think we’re going to want to listen to citizens, I think we’re going to want to listen to labor, everyone involved. And then as we kind of move into the summer, I’m not going to say that we’re going to have a special session any time soon, I don’t see a need, but chances are we’ll probably have something between now and the next regular scheduled legislative session. You know, let’s evaluate what kind of fixes would be necessary in order to make use of the $61 million, versus the hurdles that are being created for the private sector.

And if we find that it isn’t worth the tradeoff—and I don’t think we have enough information today, really, to make that analysis. In the real world, congress is also going to have to have some sort of cleanup bill, cleanup legislation that deals with all of the stimulus appropriations. And who’s to say that in that there won’t be some sort of sunset provision enacted?

So there’s a lot yet to play out as it relates to the $61 million. And as it’s been presented to me, at least the understanding, the misunderstanding by some is it’s a yes or a no immediately. We have ten quarters basically, we have two years by which to use the money, and to make these decisions. And so we’re not pressed here and now for a yes or a no answer, but rather, we need to look at it thoughtfully and meticulously, see how real people are impacted by doing it or not doing it, and then as we approach summer, maybe with the legislature during an interim day, maybe take a good look at it.

BROCK VERGAKIS, ASSOCIATED PRESS: Governor, some of your Republican colleagues around the country have said they don’t want a dime of the stimulus money. Governor Mark Sanford of South Carolina said he only wants it to pay down debt. Do you consider this to be political grand standing?

GOVERNOR HUNTSMAN: Well, I think when they say they don’t want any of the stimulus money, what you’re hearing more of than anything else is this unemployment insurance aspect. So when I say it’s a 1 percent issue, it may be 1 percent, maybe upwards of 5 percent of the total allotted dollars going into these states. So if you ask if they’re taking 95 percent of the money, the answer is yes. But is there a small part of it that is problematic for them, that they’re trying to work through, and each state needs to do it in ways that they’re comfortable with, and I’m doing my best. I suspect every other Governor is, too, doing their best to use the money prudently and judiciously and consistent with the original intent. I think the Governor of Tennessee, who’s a Democrat, by the way, has also voiced similar concerns. So I think it goes just beyond what a few Republicans have said.

But in every case, as I’ve already mentioned, we’ve got two years to work out some of the problematic areas, and try to do what’s best for our citizens. Knowing that all the while this is a stimulus package. This is something that needs to be worked into the system as quickly as possible to kind of get our economic engines firing again. Please.

ROD DECKER, KUTV: I heard you got $87 million stimulus money to the Governor, and that $50 million was what I heard, might be wrong. You put into the appropriations process, but they allowed you to say where it should be appropriated. Now that leaves $37 million, if my numbers are right. The $37 million, you haven’t taken a bonus, what- -

GOVERNOR HUNTSMAN: The small fee to the Governor’s office you haven’t calculated yet, obviously.

DAN BAMMES, KUER: What did you do with the 50, if that’s the number? What will you do with the 37?

GOVERNOR HUNTSMAN: Here’s where we are so far on what effectively started this $87 million in the unallocated category. And it’s more for, you know, immediate economic stimulus purposes, undefined by the feds, but leaving it up to Governors, really, to provide that definition and context. So we’ve got 10 of it that will go into the home run, the housing kick-start program, which may begin very, very soon. As soon as we get this authorizing legislation, which could be any day now. We want to get this signed. And what it does is it provides roughly $6,000 as a grant per person or per couple buying a new home. This is in addition to the $8,000 that is made available federally. And so you’ve got a lot of buyers on the side lines, and in this case, you know, the criteria would include, you know, no more than 150,000 joint filers could qualify in terms of annual income, it must be a new home, newly-constructed home. So when you consider we have an inventory of maybe nine to ten months in this state, which is a whole lot better than years, which is what many other markets are looking at, we want to start blowing through that inventory quickly. You’ve got qualified buyers who need a little additional incentive to get off the side lines and into a new home.

So this kick start program, for which $10 million will be allocated, will be part of that. And we’ve got a lot of people very excited about moving into the marketplace ASAP. And that will begin to draw down the inventory, there by allowing new home construction to pick up behind it. And that’s where we figure, and Jim Woods, who’s a great economist at the University of Utah, has estimated that 8500 jobs will be created through this kick start program. And that’s by way of the new homes that are put up rather immediately once you start drawing down this inventory. So this is a really good deal.

We’ve got 1.8 that will be allocated beyond the $10 million, basically, for foreclosure mitigation. That is helping people understand their options. A lot of folks don’t understand where to turn, where to go. HUD counselors that are available, or rethought financing options that might be available. Do I rent? Do I own? And so we’ve got $1.8 million that will address that kind of mitigation work all by itself.

And then we’ve got $15 million that was part of the motion picture incentive fund that we are making available, which really brings Utah into the top tier of states that are competing for movies and studios and serial programming, and whatever else might come our way, which is very exciting. We have local crews, we have local talent, we have a growing track record and reputation that really does make us a preferred destination between New York and L. A. , for cost reasons, if nothing else. So that $15 million is going to really do a whole lot to get that going.

And then we’ve got $33 million that will go into USTAR, the Utah Science Technology and Research initiative. And the argument behind that, and we put more into that than we initially had budgeted. The argument being is, while every other university in the country is looking at drawing down, and all the while you’ve got intellectual talent at these campuses that are looking at where they’re going to spend their next 10 or 20 years, we want to steal that talent. We want to be able to bring them here to the state. And so when you’ve got the national expert, for example- -

Let me give you one example. In the area of personal medicine, an area which is going to revolutionize health care in the next 10 or 20 years, who’s sitting at a major elite university back on the east coast, who wants desperately to move here but it’s going to cost a little something because he or she would bring a whole trail of investigators with them and NIH grants and that kind of thing, this is where those dollars are going to be spent, bringing in brain power into the state that will create centers of excellence that will in turn build our industries of tomorrow.

Things like, you know, innovative energy technologies, for cleaner energy. Personalized medicine that will allow us to walk into a doctor’s office with a personal DNA as opposed to just sort of randomly getting checkups, that will help us understand where we have a predisposition towards certain disease types, and being able to get at it sooner, and preventively, and there by taking a whole lot of cost out of health care.

So the $33 million going into USTAR I think is going to be money very well spent on our future, on our higher ed campuses, on economic development, and where the jobs are going to be in the next 20 years. And then we’ve got some that, the remainder, then, Rod, we’ll just sort of sit and carry it over into next year. $25 million.

DAN BAMMES, KUER: Governor, why would $15 million for film production credits, tax credits, or $33 million for USTAR be a higher priority for your administration than the dental and vision care for Medicaid patients, or avoiding cuts for the division of services for people with disabilities?

GOVERNOR HUNTSMAN: Well, in human services, you know, we were staring down an 18, 19, 20 percent cut. We came out quite well, considering where things were going based on early legislative discussions, and I would have to tell you that I think human services came out probably, while not perfect, about as good as could be expected, given the legislative give and take that is involved in all budget discussion goes. And at the end of the day, there will always be a balance in these things with the legislature. We’ll come out and ask for one thing in our budget, and we’ll fight for it, and I think we came pretty close to getting, actually, what we asked for in the human services side.

And then in every other area it’s the same. There’s always going to be kind of a give and take. But I’m glad that we are making investments in our future, even during a down time. Because the question for so many people who want to live here or move here will be, what does our state look like when the economic crisis dissipates? Are we going to be completely down on our luck like some states—California for example, or maybe Nevada—or are we going to be poised for the future like never before?

Having invested in our engines of growth, having kept human services as whole as possible, having preserved higher ed and public ed from massive cuts that they otherwise would have received, we’re going to be looking pretty good when all is said and done. And so it’s all a balancing act at the end of the day. You’ve got to make sure that in that balance you’re preserving the key components of our future that really are going to allow us to be a strong, competitive state.

RICHARD PIATT, KSL-5: Overall, Governor, in the legislative session, of course, people don’t always get what they want. There’s give and take, as you mentioned. We had a Dan Jones poll commissioned, and a lot of the people who responded to that poll listed as priorities things like the common ground initiatives, delaying implementation of the immigration omnibus bill, Senate Bill 81 from last year, passing the tobacco tax. The fact that those things didn’t get through, should those people feel discouraged? And what do you tell people for whom those were priorities, in the face of everything else that the legislature was facing?

GOVERNOR HUNTSMAN: Well, given my limited experience, having been through this cycle, you know, five times, I’d have to say that this is about as fine a session as I’ve been involved in, in terms of making the most of the time allotted, in terms of progress on real issues that will matter to people longer term, in terms of dealing realistically with a budget shortfall when, you know, all hope was lost and we could have been completely sunk just by the economic equation all by itself.

Politics is not the art of the perfect. It’s the art of the possible. And I think we got through much of what many consider to be possible this year in preparing us for the years to come. Every legislative session will have things left behind, and incomplete in the minds of many, and that’s why you have sessions every year, to try to pick up where you left off, or to try to clean up mistakes you might have made the year before.

So to them I would say that politics and legislation are very much an iterative thing that require the voice of the people. Those who care about these issues need to have their voices heard. They need to talk to legislators, they need to appear on capitol hill, they need to write letters to those who matter, and to keep the issues they care about alive and well. That’s how the system works. One person, one person can bring about enormous change in our type of system. So for those who might feel that their issue was lost in the rush of 45 days, they should remember that they still matter, and so do their issues.

GLEN WARCHOL, SALT LAKE TRIBUNE: Governor, speaking of the incremental nature of legislation, you’ve often said that about modernizing or liberalizing Utah’s liquor laws. You had significant, gained significant ground this year with the clubs law change, and some other things. What’s next? What’s next on the liquor law front?

GOVERNOR HUNTSMAN: I think helping the rest of the world understand where we are, and that’s, part of that is helping them understand what we’re not, because of the misperceptions that sometimes have reverberated through the international marketplace for so many years. So I think, you know, working with travel and tourism, working with our local communities in making sure that as we market and promote our state, that people understand who we are, and this will be a part of that, helping to, you know, understand that the arcane Byzantine, often referred to anachronistic liquor laws are, in large part, behind us.

Now, going forward, as it relates to liquor legislation specifically, I’d have to say that we’ve got a spaghetti bowl of codes and directives in the law that probably need to be harmonized, and if anything at all, it will probably be an attempt to try to make clear, to simplify, to make more consistent the code, the way in which all of this is written. And that will be more of a lawyerly undertaking than anything else.

GLEN WARCHOL, SALT LAKE TRIBUNE: You mentioned getting word out, and that obviously is important, because that perception is as powerful as the reality, and more so.

GLEN WARCHOL, SALT LAKE TRIBUNE: Right.

DAN BAMMES, KUER: And Utah’s gotten some good press around the world, mentioning the change in the liquor law. Do you have any cash to fire up a marketing program that you can, indeed, get a drink in Utah, to undo the years of bad press? Drink in Utah, to undo the years of bad press?

GOVERNOR HUNTSMAN: I think, Glen, it’s word of mouth more than anything else. We have a lot of people, you know, 20 million-plus, now, who travel to the state every year. And now a large global component to that. And as people visit, as people experience, and as they learn new things, they take that back, and I think probably our most powerful means of communicating who we are and where we are in terms of change is through people who experience it first hand, and then go back to their various communities and talk about it.

Sure, that’s going to take a couple of years before people understand the changes, but I think between the media, which has taken an interest in writing about this particular story, and people who are now going back to tell others, as they will begin to starting this summer, I think it’ll be a very, very powerful message combined. And I think we’ll see the benefits of that going forward.

GLEN WARCHOL, SALT LAKE TRIBUNE: So we’re not going to see a “come to Utah and tie one on” campaign launched world wide?

GOVERNOR HUNTSMAN: Never discount the creative ability of the people in our state. Who knows?

JEFF ROBINSON, KCPW: Governor, this session really did reveal that the gap between you and the Republican leadership when it comes to climate change is as big as it ever was. There was a bill passed that, you know, sort of aims to stifle you entering into things like the Western Climate Initiative, I think it was sponsored by Representative Roger Barris. What do you think about this bill? Are you going to sign it? And what goes through your mind when Mike Noel Is on the house floor and says global warming is bunk science and we need out of the Western Climate Initiative? GOVERNOR HUNTSMAN: Well, it reminds me that in America everybody gets a voice, and every opinion gets aired. And I think that’s partially the beauty of our system. It isn’t monochromatic. It’s colorful, and it’s broad and diverse, and I think that’s very, very important. And if we weren’t hearing all the opinions, then all people and points of views wouldn’t be properly represented. But the bill you’re referring to actually died a technical death right at the very end of the session. So the Barris bill will not see the light of day. There was a technical glitch, so we won’t deal with that at all, anyway.

But you know, what I think we ought to take some comfort in, even glee, is the fact that you’ve got renewable energy that is a priority in this state now, and we have the tools by which we can make this more of a reality than ever before. And probably more than any state in America, when you look at the two pieces of legislation that are moving us inexorably toward new technologies.

We’ve got the ability, now, to create, under a new governing council, similar to the MIDA council that’s done work with Hill Air Force Base, the infrastructure needed in power distribution, and a grid system, which you need to make renewables a reality.

And second, you’ve got basically all the incentives in place that really will make us a first-rate state as it comes to renewable energy. But this was not understood by everybody, and it was really underplayed, I think, unfortunately. Twenty years from now people will look back and they’ll see this as one of the more incredible things that happened this legislative session. Literally remaking our ability to create a new economy based on renewable energy as we go forward.

JEFF ROBINSON, KCPW: The senate amended that bill to include nuclear energy. What do you think about that? The renewable energy zones bill.

GOVERNOR HUNTSMAN: Well it, you know, you’ve got 431 nuclear reactors in 31 countries around the world. We have over 100 of them here in America. It’s happening, and it’s you know 17 percent of the world’s energy, and it’s 70 percent of France’s, and probably 20 percent of ours. What you have to remember is that the incentives are post-performance incentives, and getting a nuclear plant off the ground is a huge regulatory undertaking, you’re looking at 15 or 20 years and probably a $2 billion cost, just right from the beginning. Not to mention the proliferation concerns and the storage concerns once you have a by-product. So that’s a longer-term discussion, but first and foremost we’ve got sun and we have wind and we have geothermal, all of which are breaking out very aggressively and you’ll see a lot more of this activity under the pieces of legislation that have just occurred, and it’s a very, very exciting time for our state in that regard.

GLEN WARCHOL, SALT LAKE TRIBUNE: Governor, let’s talk about something you might not want to talk about as much. I’ve noticed, at least, that there seems to be two Governor Huntsman of Utah. There’s one that’s on the east coast, who’s vocal, criticizes GOP leadership, outspoken, has said some things that many people in the party are not comfortable with. But then I see you here, and we have Governor Nice Guy, who gets along with the legislature, smooths everything out, turns a session that looked like it might be ugly at the beginning, when the senate at least was going to go against your liquor changes, modernization, and it wound up going your way. Who are these two guys?

GOVERNOR HUNTSMAN: It’s the same guy. I’m paid to make things happen. And people, when they look at their governor, I’m convinced, they want results. They don’t want talk, they don’t want partisan bickering, they just want results, they just want things done. And I take that charge very seriously. That doesn’t mean, Glen, that you can’t speak out every now and again on a party that you’ve affiliated with your entire life, and what might need to be done to get it back on track, and suggesting a few ideas here and there that might be helpful. That’s all part of the same person, wearing the same hat, understanding that people pay me to get things done efficiently and effectively and deliver for our state which, first and foremost, will always be my concern.

ROD DECKER, KUTV: Senator Bennett is very concerned about oil. You’ve got about 20 seconds to tell us if you’re concerned about oil.

GOVERNOR HUNTSMAN: What part of oil are you thinking?

ROD DECKER, KUTV: He’s trying to hold up an appointment to, because they won’t give us oil leases.

GOVERNOR HUNTSMAN: It’s all going to be caught up in working together. We can work with the new administration, we can find common ground, commonality. It’s all in communication, getting everybody around the table together.

DAN BAMMES, KUER: Thank you very much, Governor. For transcripts and audio and video of this program, you can visit the web site at UEN.org. And we very much appreciate you being with us here today.

Governor, we would like to conclude the Governor’s News Conference today by remembering a colleague who was a regular participant in this program, Tom Jordan was the Salt Lake City bureau chief for Metro Networks for many years, it’s a news bureau that served radio stations in Utah and across the country. Tom died unexpectedly in a fall at his home back in January. He was 63. Those who knew him were warmed by his infectious optimism, he was the most positive person you’d ever meet, a wonderful story teller, and a most excellent friend, and we’ll certainly miss him.

 

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