January 25, 2001

I'll be talking with those at the White House who are managing this energy crisis in the west in terms of the White House response. I'm going to talk with them about the fact that Utah, in the fairly near term, is going to have to build some electric power generation, and that both state government and federal government need to partner with other states in the region to come up with a regional solution.

Reporters (in order of appearance):

DOUG FABRIZIO, KUER
ROD DECKER, KUTV
GREG BURTON, SALT LAKE TRIBUNE
TOM JORDAN, METRO NETWORKS
RICH FINLINSON, UEN

Transcript:

DOUG FABRIZIO, KUER: Governor, welcome.

GOVERNOR LEAVITT: Thank you.

DOUG FABRIZIO, KUER: Earlier this week Representative David Ure moved to repeal his controversial utility regulation bill, House Bill 320. You didn't sign the bill, but with some fine tuning you would have allowed it to go into law. Do you support the move to repeal it?

GOVERNOR LEAVITT: Yes. I thought that there were good parts of the bill. The legislature needed to have the discussion. They have. This is what they came up with. I do think there are parts of 320 that could have survived and would have been productive. There are other parts of it that obviously weren't. But discussions occurred, it's now been repealed, and I'll sign it.

DOUG FABRIZIO, KUER: Were there any discussions with you about whether or not it should have been repealed?

GOVERNOR LEAVITT: Yes, we had - we were part of various sort of brainstorming discussions as time went on, and they would give us reports as to their progress, and they were, I think, obviously anxious to make certain that anything they came up with I would be in support of. They didn't want to go through the experience of reaching agreement between the various parties and then finding out I wasn't in agreement with it. So we were participants, in just general reports and broad brainstorming discussions.

ROD DECKER, KUTV: Broadly. You said energy's a big problem for Utah. Broadly speaking, have you got any ideas as to what Utah state government might do to address the energy problem?

GOVERNOR LEAVITT: I will be tomorrow, actually, be in Washington, D.C., and I'll be talking with those at the White House who are managing this energy crisis in the west in terms of the White House response. I'm going to talk with them about the fact that Utah, in the fairly near term, is going to have to build some electric power generation, and that both state government and federal government need to partner with other states in the region to come up with a regional solution. We'll need to be part of it. And I think a fast track permitting process, where we're able to not cut corners, but move at a faster pace than government often does, will be an important part of that.

ROD DECKER, KUTV: Utah's going to build. Who's going to build where?

GOVERNOR LEAVITT: Well, there are four projects that I know of that are in some phase of serious discussion. The first would be the Bonanza plant, which is owned by Deseret Generation out in the Vernal area. They have a 400 megawatt addition to their existing plant that could be done. There are some dilemmas in terms of regulation, there. There's the Hunter Four plant down in Emery County that's about 400 megawatts. There's the IPP plant down in the Delta area, which is about 750 (mega)watts, and then there is a coal - rather a gas turbine project here in the Salt Lake area that's being considered that would be, I think about 165 megawatts. So those four are all projects that have some viability and could be done with some speed. Now whether all of them would be built, I doubt, but some part of them will, and I think that will be the discussion we'll go through in the next little while. I have asked a work group to be formed among various interested parties led by the administration to quantify what our needs are going to be in the next ten years, and then to determine what the options are, and what barriers stand, and I'll have that report, likely by next Tuesday or Wednesday.

GREG BURTON, SALT LAKE TRIBUNE: Would you be in favor of tax incentives to get those built more rapidly?

GOVERNOR LEAVITT: I don't think that'll be necessary. I think the market will provide adequate incentive for that to occur.

TOM JORDAN, METRO NETWORKS: A couple of days ago, minority leader Ralph Becker said that this is now the time, after repeal, to start to work on a comprehensive state energy policy, not just for electricity, but try to take in the energy needs of the entire state. Is this something that you think is time, now, that we try to do something larger in terms of planning overall?

GOVERNOR LEAVITT: Well, we need a national energy policy, and that's one of the things that I will be continuing to talk with the president about, and leaders at Energy. We need a national energy policy. We need to have a regional plan. I'll be meeting on the 2nd of February with nine of my colleagues. There'll be ten of us meeting, including Governor Davis of California, to talk about a regional response in the west. This is a very significant problem in the west, and it's going to require all of us to respond. We'll then need to have a state energy plan. We have one now but it'll be required for us to begin to fit - begin to fit our capacities into the larger picture.

ROD DECKER, KUTV: Are you at odds with President Bush on this? He seems to think that this is something for the states to solve, particularly California. President Clinton had beat on the suppliers and said you've got to sell to California. President Bush says it's a California problem, the federal government's going to walk away, and I think two weeks is all he gave them. Is he - is this something - is he, "I'm going to walk away," and you are saying we've got to have federal leadership?

GOVERNOR LEAVITT: Well I've been conferring continually over the last month, and I would say every few days have had conversations. They have been calling me and asking my advice, and I've been offering advice to them. I don't think that they're seeing this as something they're going to walk away from. The question is, is what will the state role be in California? It's clear to them that this is a regional problem. I think it's clear to them that it involves wholesale prices. The Federal Energy Regulatory Commission is very clearly in charge of wholesale. They'll be sending the Secretary of Energy and the head of FERC to this meeting on the 2nd. I mean it's pretty clear they're not stepping away from it. I think the question will be, what kind of action should be taken? I've advised them that I believe that there is - that the extension that they've given of the power being sold out of the northwest is ill-advised in the long-term. I told them that I felt it was likely they needed to continue it at least for two weeks because it would not be reasonable for them to walk away from that situation without offering another alternative. And I think they'll likely be working hard to come up with that alternative in the next two weeks.

RICH FINLINSON, UEN: Governor, shifting to your education proposals, you have suggested that in the public education arena, science and math teachers be given an opportunity to do additional training and get an up to a $20,000 one-time bonus. I'm curious as to what reaction you've had since this was proposed. We've had some reaction that some teachers who are not on the science or math track feel like, "Oh, you know, we're going to be left behind." Is there precedent in other states for this kind of aggressive incentive program, and what kind of input have you gotten from our own citizens since you proposed this?

GOVERNOR LEAVITT: Let me give a little background and then I'll answer your question specifically. The dilemma, here, is that we're losing high-level math teachers and those who have the skills of technology, out of our schools. And I meet a lot of them. I don't meet them in schools, many times, I meet them in dot-coms and technology companies, and telecommunications companies. They understandably are very appealing to the market. There's a market imperative right now. We cannot allow our schools to go without the capacity to teach these skills. Now we value all teachers. We value English teachers, math teachers, art teachers, music teachers, and no one ever likes to lose a good teacher. But there's a magnified problem now, when a technology teacher or a high-level math teacher leaves because when they do it hurts our economic capacity to grow our economy, and the capacity, therefore, to fund our schools. So every teacher has some level of investment in our being able to continue that. The response has been very positive, particularly from industry, particularly from our universities and colleges. There has been a comment among, I think, parts of the UEA who have said, "No, we'd like every teacher to be paid basically the same." I understand that. And I'm sympathetic to it. I recognize the value of all teachers, but right now we've got a problem we've got to solve, and this is a tool that is used in other states on occasion. It's certainly used a great deal in the private sector.

RICH FINLINSON, UEN: So there is some precedent for this kind of an incentive program that you've seen be successful in other states?

GOVERNOR LEAVITT: Well, we lose teachers occasionally, particularly in areas like special education, where they provide these kinds of bonuses. I've not seen it used necessarily in this particular area. It's a tool that's often used, but we have to find ways to provide it. And we're offering it to all teachers. We're saying that any teacher who desires to do - to develop these high-demand skills, we'll not only pay them to get their masters degree in technology, we'll give them a retention contract when they're done. If you're a good English teacher or good math teacher, you have a knack for technology, we'll pay for you to get the right credentials and then we'll give you a retention contract to make certain you stay with us because we'll have an investment. We want you to stay.

ROD DECKER, KUTV: President Bush has called for vouchers under certain circumstances. You have been a steadfast opponent, I think, or at least a steadfast skeptic about vouchers here in Utah. Do you support President Bush's plan? Would it mean vouchers for some schools here in Utah? Do you think that's a good idea?

GOVERNOR LEAVITT: Well, I will be tomorrow meeting with President Bush to discuss his education plan. We've had some discussions about it in the past. My philosophy is not inconsistent with his. What he is saying, and I think it's an important distinction to make, he is saying that if a school does not improve or show improvement according to a state definition, and if they fail to improve over a three-year period, we will allow the patient to take the portion of the money that the federal government gives, and to use it in whatever way they would choose to do so. I think that's a reasonable thing to be doing. It keeps the control of the schools in the hands of local government. I think it also - he's made it pretty clear, that he sees the limits upon which that can be done. I have questions as to whether they'll ever be able to apply it on a broad basis, and we'll see how it goes. But I support him in his initiative and I'm comfortable with it philosophically, and think it's not inconsistent with my own thought.

GREG BURTON, SALT LAKE TRIBUNE: You've got a bill in the house right now that would sort of - it's sort of a thinly-veiled plan for vouchers, it's called a scholarship program where some students could take money out of that to transfer from the public system to the private system. Do you support that? Do you think that might erode the growth and the health of the public education system?

GOVERNOR LEAVITT: I have stated many times that I believe that when it comes to our state public school system, that we ought to use public money to support public schools. And that's a philosophy I continue to hold.

GREG BURTON, SALT LAKE TRIBUNE: So do you support that bill?

GOVERNOR LEAVITT: I haven't read that bill, but I've made very clear to both, in a public way since I was elected, that I think my own stewardship is to assure that public schools are strong, and that they're well managed, and that I'd like to see public money stay in public schools. One of the difficult - I mean I like private schools too, and I visit private schools and do what I can to help them. But they are designed to be a choice for parents who are prepared to take their children and give them that enhancement, or that experience. And I don't - I'd like to see more of them, but I do think we ought to use public money in public schools.

GREG BURTON, SALT LAKE TRIBUNE: There's another program that they've got going through, I think the senate, and that is this push to expand the charter school program, even larger across the state. Do you support that?

GOVERNOR LEAVITT: I haven't seen the bill, but I'd likely support the concept. I'd like to see more charter schools. I'd like to see them get a, I'd like to see them get more, an amount of money that's closer approximate to the amount that the state spends as opposed to just three-fourths of it. I think we're seeing some successes among the charter schools, and I'd like to see it expanded. Not radically, but slowly and steadily.

DOUG FABRIZIO, KUER: Governor, you received a letter recently from Salt Lake Mayor Rocky Anderson explaining his decision to join a lawsuit blocking construction of the Legacy Highway. He says that Salt Lake is being directly negatively impacted, or would be, by the Legacy Highway. How did you react to that?

GOVERNOR LEAVITT: Well I just think it was a bad decision, and I think it was in large measure a political move on his part to appeal to those that are his political base. I wish he hadn't done it. It doesn't change the nature of the lawsuit. We've expected the lawsuit from the Sierra Club. We've planned all along that this would be the final step, and everything we've done has been to make certain we could pass that scrutiny. I expect we'll pass the, we'll have the lawsuit, we'll prevail, and start construction in late spring.

DOUG FABRIZIO, KUER: What about the notion, though, of the Legacy Highway bringing more pollution, more sprawl, more traffic to Salt Lake?

GOVERNOR LEAVITT: I think it's absolutely the contrary to that. That's one of the reasons we need the Legacy Parkway, is because right now every piece of traffic runs right through the middle of downtown Salt Lake City, or not downtown, but the middle of Salt Lake valley. This is a means by which we can create an alternative. And again, I don't- - Mayor Anderson's opposition to the legacy parkway is well documented, and so is the Sierra Club's, and you know, we've done this- - Transportation is a regional dilemma. I mean you can't just isolate your own community and say, "Well, we've got ours taken care of." We've - You know, the state has worked hard with other communities to make certain we have light rail going east and west and north and south, and we work hard with Salt Lake City to assure that they've got the exits and on ramps that they need to take care of their needs, and you know, I wish he hadn't done that. I don't think it's going to serve Salt Lake's interests, and I don't think it changes the situation, but it was, you know, clearly appealed to a political segment that's important to his, to him personally.

GREG BURTON, SALT LAKE TRIBUNE: Governor, sort of in tandem with what the Democrats are pushing a plan on corridor expansion, and they'd like to see UTA and the state split sort of this estimate of 60 to $100 million to buy up the corridor from the rail companies. Do you support that plan for UTA to join with the state in purchasing that plan, and would you be willing, considering the lawsuit on Legacy, to free up some of the money in your budget you have for Legacy for this plan?

GOVERNOR LEAVITT: Well the money - The lawsuit on Legacy is not going to be long-lived. I mean I believe we'll prevail. And that we'll begin construction this year. And we do have about $10 million in our Legacy budget that can be applied to commuter rail right of way, or corridor, and we'll spend that. I'd like to see the commuter rail built. I think, as a concept. There's no plan yet. We don't know what it's going to cost to have the right of way, we don't know what the numbers they'll carry. UTA needs to bring a plan forward. When they do, we'll do analysis on it, and determine my specific support for it. They have some money that's been voted by the voters in the last election in Davis, Weber, and Salt Lake County. The commuter rail likely won't be built for a while. It seems to me that that's a place that those local communities could step up and use those proceeds to buy the right of way during a period of time while we're waiting for design and other approvals and the decision as to whether it's viable.

ROD DECKER, KUTV: In your state of the state you cited a family, and introduced a family from central Utah who had been on CHIP, and they said it's improved their lives immensely, helped their kid. However, recently, I guess it was maybe November or October-November, Utah gave back to the federal government several million CHIP dollars, and at the same time Utah's got several, tens of thousands of kids who need health insurance and don't have it. Are we doing anything to get the money to the kids instead of giving it back to the feds?

GOVERNOR LEAVITT: Let me clarify that we have enough money in CHIP to handle every qualifying child in this state. We can't find them all, but we've got enough money, even though we had to give some money back, we've got the capacity to cover every eligible child in the state. It's a very important fact that hasn't been widely reported. We were among 42 states that had to give money back, but we still have enough money to cover every eligible child, and we've covered 20,000 children already. So it's been a resounding success. Now we're working hard to find them. We're in clinics, we're in hospitals, we're in schools, looking for them. Many times the parents just don't bring them forward and we're having trouble being able to find them. We have gone from, when I became governor, we were I think 86 percent of the children in this state had health care coverage. We now have 94 percent. That's clear progress. Now there are some things I believe we could do to enhance it further, and I'm going to be talking to my friend, Tommy Thompson about that, who's now the secretary of HHS, about a waiver that would allow us to begin doing, in our Medicaid population, and with the parents of children who are covered by CHIP, some things using those dollars to leverage them even further. So I think we can do a better job, but in many cases we've got to have permission from the federal government to do logical things.

ROD DECKER, KUTV: Six percent, we've got say 500,000 kids, that's 30,000 kids without health insurance that could have it. Surely you're offering free health insurance, surely that's an offer no patient's going to refuse if the patient understands it. Why, why aren't people hustling to get the money to the kids?

GOVERNOR LEAVITT: It's a mystery to me why they're not coming forward to have it. But we're working at it. We're doing television ads, buy TV programs from your station, we're asking reporters like you to do news stories on it. We've got people going into neighborhoods, searching almost door to door, going to schools, going to clinics, we're doing all we can to get them. Now, there - sometimes there are children who don't qualify. When you talk about, there's six percent but it's not of every child. That's, you know many of those six percent aren't eligible. Some of them are eligible for Medicaid and we're doing that. So we're doing a pretty good job. But Rod, if you know of any that haven't had health insurance, we'd love to cover them.

ROD DECKER, KUTV: Are you honestly doing everything you can? Can you think of things you can do - I mean it seems to me like you've got the money here, you've got the kids here, all you've got to do is get them together and everyone will be happier.

GOVERNOR LEAVITT: Let me just point to the positive side of this. We've gone from zero children on CHIP to 20,000 children on CHIP in the course of about 18 months. That's a lot of children who didn't have health insurance 18 months ago who now do. We are doing television ads, we're going into clinics and to schools, going door to door, we're asking you to publicize it. I don't know what more can be done. We'll continue to do it, we have the money, we want to be able to help them. So Rod, it's now your responsibility. You do some - You've got a bigger reach than I do. Now, it's your fault.

ROD DECKER, KUTV: I'll do the best I can. (laughter)

GOVERNOR LEAVITT: Okay, thank you.

GREG BURTON, SALT LAKE TRIBUNE: Governor, since your budget came out there was some complaints from the Building Association that because you hadn't done any bonding, or very little, that you weren't contributing to the growing economy, and perhaps might even contribute to a depression of the economy. They were concerned they're going to lose some jobs in the construction trades because this seems to be reluctance from state leaders to invest in the future by bonding.

GOVERNOR LEAVITT: Gosh, that's a - I proposed $157 million worth of building. I didn't propose to bond for it. I proposed to pay cash for it. I also proposed the construction of the Legacy Parkway, another $400 million. I think the construction industry's been well served by our public projects. We don't do public projects for the purpose of keeping them employed, but I don't think they'll be lacking any opportunities in the course of the next couple of years.

GREG BURTON, SALT LAKE TRIBUNE: Have you had an opportunity to sit down with them since your budget came up to discuss their concerns?

GOVERNOR LEAVITT: You know, I've not heard - I've not had contact from them on that matter. I think that from contact I've had - that's a lot of public building. That's generally two and a half times what we typically do. And I don't -

GREG BURTON, SALT LAKE TRIBUNE: It doesn't look ten years, fifteen years down the road. It looks, it's more immediate. And I think their concerns were there wasn't a plan for the next fifteen, twenty years.

GOVERNOR LEAVITT: There's always a list of - there's at least a fifteen-year plan of projects people would like to do. But we never budget beyond one year. We don't have a process to do that. I mean this is the way we have, the way it's - you know, there's a long line of things that people would like to do, projects I'd like to do, but I've not heard that - that complaint.

DOUG FABRIZIO, KUER: Governor, do you think it's time - going back to the energy issue - do you think it's time for the state to develop a policy to explore renewable and alternative energy sources?

GOVERNOR LEAVITT: Yes, I do think that we ought to look at every source. The dilemma we have seen in the past has been price. Typically it's, to get a megawatt, or a watt of electricity, using water or hydro, it's generally been 2 or 3 cents, delivered. If you get one using coal, it's typically been 5 to 7. If you get one using gas, it's ranged anywhere from 4 to 10, depending on where the price of gas is. Wind, solar, other kinds of renewables have generally been in the 20 to 25 cents. Now you've got power up over 20 to 25 cents, people are more interested in being able to do that. But the dilemma they face is, if I make a multi-million-dollar investment in something that requires 25 cents, and then the price of gas goes down and they can do it for 5, am I going to be able to sell my power? So that's been - it hasn't been a government policy that has caused them not to be used, it's been just sheer economics, and those conditions still exist.

GREG BURTON, SALT LAKE TRIBUNE: There was a funny story in the tribune today off the hill about a bill that would seek special penalties for folks who at tack referees. It just seemed to strike me as ironic because we can't get special penalties, or a hate crimes law that works that will get special penalties for folks who target minorities, or because of sexual orientation or religion. But we seem to have the support for referees for special penalties. Do you support the current law that Suazo has in the Senate that would seem to fix our broken hate crimes law, and make it effective and make it a deterrent for the growing trends towards these hate crimes?

GOVERNOR LEAVITT: I guess maybe part of the message there is that no one's hated more than referees? I also - I support the idea that if a person is, commits a crime because a person is a member of a group, whatever the group is, then I think that that's reasonable for us to talk about enhanced penalties. I don't think it's reasonable for us to begin to segregate different groups and say committing a crime against one group is more serious than committing a crime against another. And I think it's a close call even then. I mean if a person commits a crime, they ought to be punished for the crime. It gets very difficult to begin figuring out what a person's motive is, and how much that ought to be punished more than another motive. And I mean these are close calls and I don't know that I have the wisdom to sort through them. But I have concluded that if we have a law that exacts more punishment for clearly manifest intent against a person because of their hate of a group, then that may be an additional crime. But I don't think it ought to segregate groups.

GREG BURTON, SALT LAKE TRIBUNE: We should include referees in that list of hate crimes of protected folks?

GOVERNOR LEAVITT: Well, I think that might cover it, actually.

REPORTER: Governor, I'm afraid we're out of time. Thanks very much for joining us this evening. We should remind you that a transcript of this and every Governor's News Conference is available online courtesy of the Utah Education Network. You can visit their site at www.uen.org. Thanks for joining us. Good evening.

Recorded: January 25, 2001, 10:15 a.m. Eccles Broadcast Center
Broadcast: January 25, 2001, 9:00 p.m. KUED-Channel 7

 

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