February 21, 2013

"...we will make sure that education is our number one budget priority." -Governor Herbert

GOVERNOR HERBERT: Well good morning.

KEN VERDOIA, KUED: Good morning, Governor, thanks for joining us.

GOVERNOR HERBERT: Honored to be with you, thank you very much. Before we start with the questions, let me just mention a couple of things. One, we're half way through the legislative session, and a lot of important bills are being presented up there, and I think the budget is the number one issue, I think, on everybody's mind.

It just so happens I'm leaving later today to go to Washington, D.C., part of our National Governors Association meetings. We'll be talking about issues that are important to Utah and to this nation.

We're going to try to see if we can sort out what's going to happen with sequestration on March 1st, and the impact it's going to have on the states, and particularly for me, the impact it's going to have on the state of Utah and our budget process.

As you all know, we're doing well. Our economy is growing, it's solid, growing at about twice the national average. But sequestration has the ability to impact us as far as the moneys we'll get from the federal government. It'll be about 2 percent if, in fact, sequestration goes ahead. It'll be about 2 percent of our budget, probably somewhere in the neighborhood of $700 million, which was what we'd lose with some of our federal programs.

I want you to know that whatever happens in Washington, D.C., our priorities don't change in Utah. We will continue to balance our budgets, we'll make sure that we live within our means, we'll make sure we have a rainy day fund, we'll make sure we do everything we can to empower the private sector to grow the economy, and we will make sure that education is our number one budget priority. So whether we have a little or a lot of money to spend, the prioritization will mean that education comes first.

You've heard me talk about our goal of 66 by 2020, meaning two thirds of our adult population needs to have some kind of post high school education, certificate, associate degree, or degree, post high school, by the year 2020.

Just an example of why that's important, and I can give you dozens of examples, but Merit Medical, for example, was unable to relocate 300 jobs to Utah because they couldn't find people that had the skills necessary in polymer science and extrusion needs that they work with at Merit Medical.

L 3 Communications has 200 job openings now they can't fill because we don't have enough people that have a science, technology, engineering, and math background that they can hire.

Again, we could go down the list of many companies who have job openings. And even though we have a higher unemployment rate than we'd like at 5.2, 5.3 percent, again, this means we've got to make sure that we raise the bar for education excellence so that people can find jobs that line up with today's marketplace.

So this goal of 66 by 2020, although it sounds aspirational, really is an absolute necessity. If we don't do that, the studies out of Georgetown University show that our economy will not expand as we're capable of doing. We will not be as healthy economically as we're capable of being.

So I hope parents out there are paying attention, talk to your community leaders, our legislators, the Governor's office, we need to make sure that we unite behind this goal of 66 by 2020. If we do that our economy and our future will be very bright, indeed. With that, thank you very much and we'll turn to you for questions.

RICHARD PIATT, KSL: Governor, given the climate with the federal government, the uncertainty about the money the state's going to be getting, I'm wondering if you have a position yet on the idea of Medicaid expansion, which is also another very important issue this year, and an issue that's going to, in fact, tie the state to the federal government, money wise.

GOVERNOR HERBERT: Absolutely. Again, Medicaid is a big issue for every state. The phrase I've heard, it's the budget buster of all budget busters. Democrats and Republicans alike are concerned about the impact on the budget they have at the state level because of Medicaid. With the health care exchange issue tied in there, the Affordable Care Act is the law of the land, it complicates the issue significantly.

We want to make sure that we have the best health care possible here in the state of Utah. We provide opportunities for people to have good quality life and health care, regardless of their age and condition.

We have done a study, or are in the process of having a study done on Medicaid expansion. What are the costs and the benefits? If we expand, what is the benefit? If we don't expand, what is the down side, if any, to that effort? So we are going to be very methodical about this, we want to make sure we have good data, good information, so we can make the right decision.

I can tell you, based on the progress that I see taking place out there, I'm not going to make a decision on Medicaid expansion during this legislative session. It's too critical to make sure we do it right rather than do it quick, and we don't have enough time between now and March 14th to do the proper analysis on Medicaid expansion.

I know other states are rejecting it, some are embracing it, but we're not following the lead of any other state. We're going to do what's in the best interests of the people of Utah, and our taxpayers. And that decision will probably come later on this year.

LISA RILEY ROCHE, DESERET NEWS: What impact does that have on the budget, though, Governor, if you want the legislature to end with a balanced budget, and yet that decision is still out there?

GOVERNOR HERBERT: Well, again, the proposals that we have is that, at least in the startup of the proposal from the federal government is that there's really not much cost. So even if we decide to do it, there's about a four to six month lead time before you can actually get the program in place. So if we made it, you know, by this summer let's just say that was the time you know, we'd probably be in good shape for the next legislative session if there's any adjustments that need to be made in the budget.

We can always call back into special session if needs be. But we'll be working very closely with the Department of Health, Secretary Sebelius and her folks, and the legislature to make sure that we do it right. I'm more interested in making sure we do this correctly because this is really a critical issue and a big issue for many people and so we're going to do a thorough analysis before we make a decision one way or the other.

KEN VERDOIA, KUED: Governor, in speaking of sequestration yesterday, Senator Orrin Hatch said one of the greatest concerns he has, thousands of Utahns who are directly to be impacted, perhaps by furloughs, effective March 1st, and that would include the civilian employees of Hill Air Force Base. Any special considerations that your office can put into place for the eventual impact on those people?

GOVERNOR HERBERT: Well, it's a difficult issue, the sequestration aspect. Again, we don't know exactly who's going to be impacted and how much they'll do with defense. If we use congress historically as an example, they may have the sequestration happen on March 1st, and by March 15th come back and make some adjustments to the budget to help do a little more precise reallocation of funds. You know, this is kind of a shotgun approach rather than a scalpel approach. And the sad thing for many of us is that this was designed to be so onerous it would force both sides to come together and make more precise, precision type cuts. It hasn't worked so far. I guess we still can be optimistic between now and March 1st, but time is running out.

We've asked our departments to anticipate the worst. Let's hope for the best, but let's anticipate the worst so that we're ready, regardless of what happens. Our Department of Workforce Services, again, will be ready to help people if they lose jobs, to help them get a new job. Again, if we have a growth, an expanding economy, there will be options out there for people. And so if you lose a job here, maybe you can find one over here. Some new schooling, some new training.

We're the best in the nation when it comes to people who are out of work getting back on work. Our average length of time for people being out of work that work with our Department of Workforce Services is 14.4 weeks. We're the second best in the nation. So we'll be prepared for that. Hopefully maybe through attrition and other means, that we have loss of employment, rather than actual, you know, reduction in force.

RICHARD PIATT, KSL: Circling back to the Medicaid expansion, and given the sequestration issues, how strongly is the anti federal government influence as a part of your thinking about this? In other words, do you feel like you want to not rely on the federal government as much as possible, and so you're struggling? Is that one of the struggles you have when you come to a conclusion about whether to expand this health coverage to people?

GOVERNOR HERBERT: Well two things, Rich. One, I'm not anti federal government. I think the federal government has a role to play, just like state government has, just like our local governments have a role to play, and they ought to be working in harmony with each other. And that means we ought not to have an overreach. The state ought not to have an overreach into the local government's back yard, and the responsibilities they have. Likewise, the federal government ought not to have an overreach into the state sovereignty aspects of our federalist system that we have here in America. So proper roles are important. I'm not anti government of any kind. But I do believe in a more limited role of government in our lives.

Secondly, I think it's good policy to be self sufficient and be independent, not have to rely upon others that you cannot control and don't have the ability to manipulate. In our own lives it's better for us to be independent, have the ability to have a job and support ourselves, our families, and give opportunity for what life has to offer. And if we have to be beholden on somebody else, it takes away some of our liberties and freedoms.

I feel the same way in principle about states. And so everything we do ought to be to, what can we do to make sure that Utah is independent and can sustain our quality of life without reliance upon outside influences.

MAX ROTH, FOX13: Governor, there are a lot of bills about guns at the legislature. One of them that passed committee yesterday would allow any Utahn who legally owns a gun to carry it concealed or not concealed, with or without a permit. Do you support that idea, and would you sign that bill?

GOVERNOR HERBERT: Well I'm a strong supporter of the Second Amendment. I'm a concealed weapon permit holder myself and have been for a number of years. That being said, we've got laws on the books that have served us well. Our concealed weapon permit statute has been on the books for many, many years, and has served us well. In fact other states like what we do in Utah and have tried to either copy or come here to get a concealed weapon permit from Utah because it's accepted in many, many other states. So kind of the old adage, if it ain't broke don't fix it comes to my mind.

I do plan to meet with the sponsor of the bill, which I have not had the opportunity to do yet. We're kind of waiting to see these bills come out and see what surfaces, and find out what his ideas are, and what his motivation is to change the statute. So I'm going to wait and not pass judgment until I've had a chance to talk to the sponsor. It's a little bit early to be talking about vetoing or signing bills. Bills change and modify, they're amended and so who knows what will happen? I'm going to talk to the sponsor of the bill. I like the laws on the books today. I don't think there's really any big need to change what we currently have on the books.

RICHARD PIATT, KSL: As a Second Amendment supporter, some of the people who were at the hearing yesterday and some in the community feel that some of the statements the president has made about banning assault rifles, altering, you know, the number of ammunition in the number of rounds in a clip, for example, do you feel that, like many do, that that is a threat to the Second Amendment?

GOVERNOR HERBERT: Well, I think we need to be concerned about executive orders. There's been talk about executive orders getting around the congress. I just think, you know, whatever we do ought to be Constitutional. And so if, in their zeal of the moment, if the president's thinking, "I'll go around congress" and he said that in his State of the Nation address "If you won't do it, I'm going to do it for you," that sends kind of a message that I'm a little concerned about. But there's ways to challenge that. That's why we have courts.

If, in fact, the president does something that's not Constitutional by executive order, we'll challenge him immediately in court, and we'll ferret out what you can or can't do. Likewise, if congress passes laws, an assault weapon ban, which I think is hard to define, we've tried that once before, didn't seem to make any difference and didn't certainly help. But if they do something that's unconstitutional we'll challenge them in court also. I think we need to concentrate on doing things that don't just make us feel good, but actually have positive results.

I am concerned about those that have guns that are mentally unstable, for example. Background checks ought to be a part of the process. We ought to keep them out of the hands of criminals, the hands of those who are mentally unstable, and it doesn't matter whether it's an assault weapon or if it's a .22 handgun. They shouldn't have them.

I also think we need to spend more time on determining, why do we have a culture of violence? Why do people do these things? Is it because of lack of mental health treatment? Early intervention for these folks that maybe we could discover and help their lives so that they don't go off and kill people in frustration or mental anxiety, whatever it is?

And how about Hollywood? What's the role that Hollywood has to play? I appreciate the fact that Robert Redford, during the Sundance Film Festival said, "Hey, my own industry needs to take stock of what we're doing with some of the graphic violence that's out there that's gratuitous and really doesn't add to the content, and maybe for those who may be a little unstable, maybe they want to go out and act out and copycat."

And last but not least, I'm very concerned about the virtual reality video games that our young people are playing. They put themselves in the position of being a shooter. They get points for killing people. The graphics are so realistic and the gore is realistic, and you get credit for blood and gore and shooting people. I've got to believe that that does not help us as we desensitize our young people's minds to the sanctity of life.

RICHARD PIATT, KSL: That sounds like what you're saying is that an executive order along those lines would be offensive to the Second Amendment, and that you wouldn't support it.

GOVERNOR HERBERT: Along which lines?

RICHARD PIATT, KSL: Along banning assault rifles and limiting ammunition.

GOVERNOR HERBERT: Yeah, I don't think he has the authority to do that by executive order. That would be a challenge in court immediately. Again, we've gone through congress, we've had it there before, it's been since repealed. And you know, the facts show that even though we have more guns in society, violent crime has gone down. So there may not be a causal and effect relationship, here.

By the way, this is an emotional issue, and somewhat complicated, but we need to make sure that we protect society, and that we have the right to bear arms under the Second Amendment. I'm concerned about our schools and our safety there.

I've asked for a complete review of our school system, we have 41 school districts, to make sure that they're adhering to the current laws on the books, which would be a start for all of us. Let's just enforce the laws we have on the books already. And review the safety conditions of all of our schools, and I'll have a report back on that by the 1st of July.

ROBERT GEHRKE, SALT LAKE TRIBUNE: If I can step back to sequestration, quickly, yesterday some senators suggested that maybe it's time to just rip off the band aid and kind of let this take effect because what path we're on right now financially is not sustainable. Would you prefer to see sequestration take effect at this point, or if they pass something that extends it for a month or a number of weeks, is that What's the preferable course of action in your mind?

GOVERNOR HERBERT: Well, the preference would be that they actually take the responsibilities of creating a budget seriously in Washington, D.C. I find it unconscionable the senate hasn't had a budget in, what, four years. I find it disappointing that there's not some ability to come together and with some kind of precision say, "We'll cut here, we'll cut more here, and not at all in this area." And make those scalpel kind of cuts.

But cut we must. We have a federal government that's out of control. They're borrowing 40 cents out of every dollar they spend. That is not sustainable. Anybody, everybody knows it. And when you have a former speaker of the house who just a couple or three weeks ago talks about, "Well, we really don't have a spending problem in Washington," you want to say, "What Washington are you talking about?"

We've got to make some tough decisions or we're going to bankrupt this country. And again, I sound like Johnny One Note, here, but take a look at Utah, we're a good example. We've made tough decisions. We live within our means, we don't grow government programs with one time money. We don't borrow inappropriately to fund ongoing government programs. That's why we have a AAA bond rating, one of only seven states, and why the United States of America does not.

Follow Utah's lead, congress, and you'll find a better condition than we face today in Washington, D.C.

LISA RILEY ROCHE, DESERET NEWS: But Governor, isn't Utah fairly dependent on federal spending? I mean Hill Air Force Base, the state's largest employer? What role does Utah have in this cut? We seem to be saying two things. We seem to be saying, "There needs to be cuts in spending in Washington, but we want to keep the jobs and the money in Utah."

GOVERNOR HERBERT: Well, that's not what we're saying, though. What we are saying is, "We live within our means, and we expect Washington to live within their means. We want you to be efficient."

I reject the notion that the fact that we have some kind of cut in spending, that we somehow can't have still a positive outcome. Utah has proven that we can do more with less. We have fewer state employees today than we did in the year 2001, and our quality of service I think has probably improved in many ways. Certainly money's a part of it. But we need to find more efficiencies, more ways to be more effective, the use of high technology, open 24/7 with online services. We have over 1,000 in Utah now that you can access 24/7.

Why does not Washington do the same thing? They've increased their labor force 13 percent while we've reduced ours. Now, I've gone back to congress on three different occasions, and I've said, "We'll help you. We'll help you in the state. We're here from the government, we're here to help you. We will take 20 percent less money. You pick the topic, could be transportation, could be education, could be health and human services. We've provided many opportunities with Medicaid and health care reform. We'll take less money, up to 20 percent less, if you'll just take away the strings. We will find ways in the state to be innovative, creative, we'll find better ways to do things, and spend less of the taxpayers' dollars, and we'll help you balance your budget." So we're not being hypocritical on this.

LISA RILEY ROCHE, DESERET NEWS: But what I'm getting at, Governor, is Utah willing to give up some of the federal money that's spent here in Utah, not that that issue of the strings attached with some of the spending, but I'm talking about things like Hill Air Force Base. Is Utah willing to give up some or all of that to help balance the federal budget?

GOVERNOR HERBERT: Hill Air Force Base is kind of a unique situation, because it's part of national defense. I don't think we keep Hill Air Force Base here because it's good for our economy. That certainly is a by product of it, and I certainly hope that we have the ability to have that economic engine in our state. But it's funded by taxpayers' dollars. That's not wealth creation, it's national defense.

You create a growing economic expanding economy by creating wealth. We, the people, then, decide that there are certain services we want to have like national defense, we pool part of our wealth, and put it in the pool, and we fund the Air Force, for example. Hill Air Force Base should be kept open if it's in the best interest of national defense, if it's in the best interests of our Air Force, and if it's in the best interests of the taxpayers. If it's not, in those three areas, then we ought to reduce it or move it, close it.

I personally believe, based on the efficiencies of Hill Air Force Base, it's a very integral part of our national defense, probably the best testing and training range we have in North America right here. I've talked to the pilots, they love it here. It has a role to play, and therefore it ought to remain open and viable. But it's because it's in the best interests of the taxpayer, best interests of the national defense, and the best interests of the Air Force.

DAN BAMMES, KUER: We've just had a report come out this past week looking at the air pollution problem in the Uintah basin, which is different from what happens here on the Wasatch Front. Determined that the oil and gas industry is responsible for the majority of the ozone pollution. But what folks out there are most afraid of is that Uintah basin will be designated as a non attainment area, and lead to new restrictions on energy development in eastern Utah. What can the state do in the Uintah basin? How is the approach there to reducing air pollution different from the Wasatch Front?

GOVERNOR HERBERT: Well, the principles involved are the same. One, dirty air is not acceptable. So we need to find ways to clean up the air, and everybody has a role to play. Now, the reason we have a study, we spent four, $5 million, was to find out what was causing the ozone problem out in the basin. Because it was a puzzlement.

It was kind of backwards out there. And the study has given us indications that the oil and gas industry certainly has a big part of the problem. So what we've done along the Wasatch Front, every point source of pollution, our Department of Environmental Quality is meeting with them to develop pathways for, what can you do to clean up the air? What part of the process can you play? What can you do to improve? We're going to do the same thing out in the basin. We'll be talking about electrification of the oil patch out there, or meet with the industry people out there and see what they can do to clean up and improve, and eliminate some of the emissions they have out there.

We're working, not only with the industry, but the local community and business leaders, and the state has a role to play to facilitate that and make sure that we take steps to clean up the air. I'm very positive about we can find the solution. I think we can do it with minimal disruption to the economy out there. Heaven knows the country and the world needs energy and we have the opportunity to provide energy in many different forms, but particularly out there natural gas and oil. So we'll be very aggressive and proactive and work with industry, the local community leaders, and our state Department of Environmental Quality to find the solutions to the air quality issue.

DAN BAMMES, KUER: Back here on the Wasatch Front, we see you on television urging folks to do what they can about the air pollution problem, with programs such as U Care, but is a voluntary approach going to be sufficient? Will it do the job?

GOVERNOR HERBERT: Well, we'll find out. You know, give it a chance to see what we can do. I know that there's things that are happening now. Again, we have volunteer efforts by much of industry. Kennecott Copper is changing their power source from coal fire to natural gas powered. They're, in fact, moving all their fleet to compressed natural gas. That's being done on a voluntary basis. We have out in the refineries, again, where they are, in fact, investing millions and millions of dollars in a collaborative effort with our Department of Environmental Quality to, in fact, increase capacity, but reduce emissions. Again, millions of dollars being spent voluntarily by the private sector out there.

Most of this stuff along the Wasatch Front during inversions, meteorology, we don't have much choice there. But we can certainly reduce the emissions. Nearly 60 percent of all the pollution we see during inversions comes from tail pipes. So mass transit, our UTA, which is going to be a godsend for us, we're ahead of the curve on that. We can do more there with UTA and mass transit. The investments we've put in our highways and freeways to eliminate congestion. Local governments, we're going to work with them this year to see what we can do to help them. Whether that's synchronization of our semaphores, our stop lights, more through traffic opportunities, again, to help us with tail pipe emissions.

ROBERT GEHRKE, SALT LAKE TRIBUNE: Governor, on Wednesday City Weekly reported that your lieutenant governor had intervened in a DCFS custody, or abuse investigation. And it led ultimately to the resignation of Palmer DePaulis from your office. Can you tell us, did Greg Bell act appropriately in that situation, and is that, is it appropriate for members of your cabinet or your administration to be involving themselves in that sort of ongoing investigation?

GOVERNOR HERBERT: Well, the statement, and the question you asked is wrong. Palmer DePaulis did not resign, is not resigning, anything to do with Lieutenant Governor Bell. I've met with Lieutenant Governor Bell, I've met with Palmer DePaulis, they did have some issues, but Palmer DePaulis is retiring of his own volition, has nothing to do with this issue.

Secondly, again, let me just tell you, I've got a lot of confidence in the Department of Human Services, and Palmer DePaulis' office. They have to deal with very difficult situations where it comes to protecting of children and their health and their well being, and also recognizing parental rights. They walk a real fine line, a tightrope, and doing a very good job at that.

We have a responsibility in the executive branch to have oversight. We get complaints all the time about how processes are not functioning correctly, or I'm not being treated fairly, and we have a responsibility to make sure that those processes are being done correctly. We need to protect the integrity of the process, and particularly in these kinds of emotional issues. And so this review that took place was very appropriate, we got information about the process, and what was going right, and maybe a couple of areas where there could be some improvement. We've not only done it

Again, this is a regular, ongoing thing. We've done it with the Department of Labor, the Department of Workforce Services, we know we took a look at the ABC, and what was taking place out there. So this is not anything unusual. And I've got all the confidence in the world for Lieutenant Governor Greg Bell, who has not done anything inappropriate. He is as honest as the day is long, and he's a man without guile.

REPORTER: Governor, on that note, we are out of time. Thank you for your time. A reminder that a transcript of this and every news conference is available online at KUED.org.

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