May 22, 2011

"We only have about 21 percent of Utah that's privately owned land...it does inhibit our ability to develop commercially, it inhibits our ability to fund education."
-Governor Herbert

GOVERNOR HERBERT: Good morning.

KEN VERDOIA, KUED-7: Governor, thanks for joining us today. As we meet on this Wednesday morning to pre record the news conference, a number of people in this nation are greatly concerned about the issues of springtime flooding. While the Mississippi commands so much attention, we also have record snow packs here in the mountains of Utah. Are you taking steps to prepare this state for the eventuality of that runoff?

GOVERNOR HERBERT: Absolutely we are. We're concerned about flooding too, and everybody, we get a lot of calls about what is taking place. We do have a lot of snow pack still in the mountains, record snowfall, and it's been slow to release. Again, we've had a cooler spring, our river capacity is approaching 100 percent, so it's not going to take much to spill over the banks. The good news is, for all of us, is that our local governments are prepared. We've been taking steps to anticipate the potential flooding. We do have flooding that's taking place in the northern part of the state, up in Cache Valley in particular. Volunteers have been assigned, we've done a lot of sand bagging and placement of sand bags along the rivers and arteries. So we're doing everything we can. We're hoping for the best, but we're preparing for the worst. And I think that our local governments are stepping up to the issue, and I think we're going to be okay. That being said, if people have concerns they ought to go our web page, and governor.utah.gov, and under the emergency preparedness link it will give you instructions and real time information as far as what is taking place across the state, and what you can do to make sure that you're prepared for the eventuality of flooding.

REPORTER: Question.***

GOVERNOR HERBERT: They're a part and parcel of our emergency preparedness, they have a role to play as necessary. They will need to be called out and activated if, in fact, that's needed. But it's a comprehensive approach with really kind of the potential for an all hands on deck, as needed.

REPORTER: How do you keep (question.***

GOVERNOR HERBERT: We have weather service folks that keep us apprised of incoming storms, and the rainfall which we're having right now in significant amounts, which exacerbates the problem. It would be nice to have cool and have a slow release of the snow pack, but the water compounds the problem, it causes melting and adds to the water content. So we're going to have some saturation problems on our hill sides, potential mud slides. Our aquifers are filling up, which is a good thing. Our reservoirs are going to be filled, I think, this year in every instance. Other than maybe Lake Powell. Bear Lake will rise a significant amount, but I think every reservoir will be filled.

The good news for all of us is we've learned from 1983, when we had the last big flood, and with Little Dell, a new reservoir, with the Jordanelle, a new reservoir, we have capacity to hold water much higher than we had before. So again, I'm cautiously optimistic that we'll be okay, but it's something we need to anticipate and be ready for.

LISA RILEY ROCHE, DESERET NEWS: Governor, are there budget implications for the state with flooding? Can the state afford to do what it needs to do to deal with the worst case scenario, here?

GOVERNOR HERBERT: The absolute answer is yes. We have a rainy day fund that's about $260 million, so we can tap into that as necessary. We have emergency preparedness funds that we have in our accounts. There's going to be some, obviously, financial impact as we have these kinds of public safety issues and natural disaster problems, but we're prepared fiscally to deal with that. We'll have the money that is necessary.

KEN VERDOIA, KUED-7: Governor, would you consider using some of that rainy day fund to compensate, or reimburse local governments who are responding to crises as well? Is that an appropriate use for those moneys?

GOVERNOR HERBERT: It could be discussed. I don't know if it's been set aside for that. The cities and the counties have their own funds that they will fall back on. But we have, in fact, had some precedent where the state has stepped up, and I go back to 2005 in the Washington County floods, where the state actually made some loans, no interest loans, and I think eventually forgave the loan. So we have that opportunity as needs be. But that's something we'll just have to analyze at the current time and level that that would be appropriate. So that would probably be a legislative session.

ROD DECKER, KUTV-2: Some legislators are upset because the liquor commission sent liquor to an outlet, the outlet went broke, and the state got stuck for $300,000. They say somebody ought to be fired, changes ought to be made. Are you as upset as legislators are?

GOVERNOR HERBERT: Well, I don't know how upset they are. I think all of us should be concerned about any kind of waste, inefficiency we find in government. It's always a work in progress. We find inefficiencies every year in different departments. Alcohol beverage control is no exception to that. These are packaging agencies which are designed, in fact, to go into rural areas and distribute alcohol. And in this particular case they've been doing that successfully around the state. We obviously have got some concern here, and that's why we have an audit taking place. Bottom line is we have not been reimbursed or got the product back as we should have received it. We're out probably about $100,000 in potential profit. I don't know that there's really any actual taxpayers' dollars lost, but the potential of the markup is gone. And the legislative audit will give us direction.

I've actually called the director and he's coming in to visit with me today, in fact, to give me an accounting as far as his side of the issue and what's taking place there, and corrective action they've already taken place. This goes back to an incident that took place really last July, and I know they've taken some corrective action this past October. So I'll be briefed on that later today.

RICHARD PIATT, KSL-5: Do you have a concern that there's a larger problem going on at the DABC, or do you feel this is perhaps an isolated incident?

GOVERNOR HERBERT: Well I don't think it's a tip of the iceberg kind of a thing. I think there's always concerns about inefficiencies, and maybe some problems with management and lack of accountability. I know because of this they've put into a new account manager that has oversight responsibility over these packaging agencies. And now as they have a report, as they meet together in their board meetings there will be a report on packaging agency and their distribution and the financial circumstances they find themselves in on a monthly basis. So there's already been some adjustments, and I think this is more of an isolated instance. As I've been able to check into it, it maybe has happened once or twice before, where people have taken on consignment the product and not reimbursed and paid us for it.

RICHARD PIATT, KSL-5: But does this bring up questions about privatization and some of the potential for more of these kinds of things possibly happening if we were to privatize alcohol sales?

GOVERNOR HERBERT: Well, I think it's certainly a factor in the discussion. Clearly there's ups and downs if we privatize the distribution of alcohol. And this example may be something that ought to be a consideration, a concern in that debate. I don't think it's the end all and be all of the discussion, by the way, but certainly would be a factor in the discussion.

ROD DECKER, KUTV-2: Congressman Chaffetz reports that the justice department says changes need to be made in Utah's guest worker law for it to be legal or Constitutional. Do you know specifically what he's talking about? Do you have any response?

GOVERNOR HERBERT: Well, I expect that there are some areas that could be tweaked and modified. I don't know that we know all that needs to be done, and I'm going to be meeting with Congressman Chaffetz here in the next little while to talk about his ideas on immigration reform.

Keep in mind that what we've done here in Utah, which is somewhat unique, and actually getting a lot of positive review from around the country, is a comprehensive approach. Built upon a foundation of rule of law, the enforcement part, the Steve Sandstrom bill, as well the idea of we need to have some kind of accountability for those who are inside our own borders as a state. And what can we do, in fact, to account for those people, and make them, make sure that they're paying taxes, background checks, and fingerprints? So it's more of a comprehensive approach, and designed really at the end to get the federal government, you know, involved in their own responsibilities. They've been on the side lines too long, causing frustration for all of us. And so again, I think it's part and parcel of a comprehensive approach. We'll see what adjustments need to be made as we meet to go forward.

ROD DECKER, KUTV-2: Is this going to be anything but talk? We need a waiver, there's no legal provision for a waiver. Is this just going to be something we talk about for a year or two, and then it goes away, or is there any actual plan to get any actual guest workers in Utah?

GOVERNOR HERBERT: Well, isn't it nice that we're talking? You know, they've been so woefully silent for a number of years, since the days of Reagan. So it's nice that we're talking about it, we at least acknowledge there's a problem, and we acknowledge where the responsibility should be, in fact, born, in the federal government. So yes, we're doing something. What the end result's going to be eventually, I guess, remains to be seen. But we're doing something that we hope is going to force the federal government, and we're talking about a guest worker permit, just for the people in Utah, to bring them out of the shadows, to have an accountability. We can't deport them, we can't naturalize them, we ought to at least know who's in our borders and make sure they're paying taxes.

ROD DECKER, KUTV-2: Is there any plan to go from "this is nice," to "here is a guest worker permit"?

GOVERNOR HERBERT: Yes, there is a plan. And I'll be working with our congressional delegation to see if we can all get on the same page so we can move forward. There's going to have to be some changes in Washington. We can't do it without Washington changing their attitude of "Let's not talk about it, let's not do anything about it." That's unacceptable. It's Not doing anything creates amnesty, de facto amnesty, it exacerbates the problem, and we, as a state, are saying, along with other states, that's not acceptable, and we're going to do something ourselves in the absence of the federal government, and we're going to try to force the federal government to do something.

TASHA COOK, KUER 90.1: But how troubled are you, Governor, by a potential federal lawsuit, and how much it might cost the state to actually mount a challenge back?

GOVERNOR HERBERT: Well I'm not troubled about it. We'll do it within the confines of the budget. We've done this in times past. Most notably is Carl Wimmer's bill on health care. It had a Constitutional note. We thought that we were on the right side based on principle, and so we created legislation, which created a conflict with us and the federal government. The federal The judge in Florida in the case that we joined in the suit cited our legislation as reasons for us to be involved, giving us standing in the court. So we didn't back away because there was a Constitutional note when we passed the law. It allowed for a good, I think, positive outcome. So again, you've got to look at this in the comprehensive aspect of all of it working together, not just in isolation.

LISA RILEY ROCHE, DESERET NEWS: Governor, let me go back to liquor issues for a moment. It sounds like you have confidence in the management at DABC in already addressing some of these issues. What about in the DABC commission itself? You've got an appointment coming up, the chairman, Sam Granato's term is up. Do you see the need for some changes there, and maybe a shift in perspective? Maybe more oversight from the commission?

GOVERNOR HERBERT: Well, like in most instances, there's always need for review, and reflection in deciding we're going in the right way and we're doing the right things, and do we have the right personnel on board? Sam Granato, I have great affection for, I've actually asked to serve on our Governor's Office of Economic Development Board. He's a small businessman, he has a great appreciation, I think, for the free market system, so he's going to serve us well there. But we'll review and reflect and make sure we get the right people and the right mix of people on the Alcohol Beverage Control Board. I'm not worried about that. Again, I think it's served us well in the past. Has it been perfect? Of course not. But we'll strive for perfection and see if we can get the right mix that gets us to perfection.

LISA RILEY ROCHE, DESERET NEWS: In replacing Sam, you're going to look for somebody who will do what differently than Sam did as chairman?

GOVERNOR HERBERT: Well I'm not necessarily looking for anybody that does anything differently. I want somebody who understands the laws as created by our legislature, and, in fact, enforces and enacts the law. I don't want anybody that's activist, just like I don't put anybody on the bench in the judiciary that's going to be an activist. They need to take the laws and implement the laws and interpret the laws as they've been addressed by the legislature. So again, I'm wide open. I have no preconceived notion of who will be the person I appoint there. I'll interview, I'm sure, many people will apply, and we'll pick the best person available, whoever he or she may be.

LISA RILEY ROCHE, DESERET NEWS: Do they need to provide more oversight, though, given what happened with this package agency and their lack of involvement in that?

GOVERNOR HERBERT: Well the reason I've got Director Kellen coming in is to have him give me an idea as far as what they've done and where we're at, what needs to be changed and modified, if anything. So it's premature for me to say that there's a lack of oversight. There may have just been a unique problem that cropped up, up in Eden. So we'll find that out, and then we'll make a decision on who should be put on the board. I'm very comfortable that we're going to handle this issue fine, and this is not a big problem. It's just maybe a little bit nuanced, and we can get the right appointment made.

MAX ROTH, FOX-13: Governor, if citizens mount a petition to move the state to a direct primary system rather than the strong convention system that we have, would you support that?

GOVERNOR HERBERT: I support the caucus system. Again, I've been involved in politics for a number of years, I think that the caucus/convention system has served the people of Utah extremely well. You look at the outcomes we have as a well managed state, it's hard to argue with the outcomes. It's allowed an average guy like me to compete against more famous, better financed, wealthier people. And so I think the caucus system has been very good.

Now, it works best when people show up to their neighborhood caucuses and make sure that who is elected as delegates is really representative of their neighborhoods. And if we have a concern about the delegate body, then people need to show up and have the courage to come to your caucuses and elect somebody they believe represents main stream Utah and their neighborhoods. And the system works well if people participate.

MAX ROTH, FOX-13: You're now in a position similar to what Governor Olene Walker was in, maybe some would say Senator Bob Bennett was in. Popular, polls indicate, with the broad electorate. But there are some issues within the party, some discontent. So I'm wondering if that's changed your perspective at all on that system.

GOVERNOR HERBERT: Not really. Again, there's always issues within the party. Ronald Reagan said, "If you agree with me 80 percent of the time you're my friend." And I think that's true. There ought to be room, speaking as a partisan Republican, in the tent of Republican ideas to have debate and discussion, and we're still all Republicans at the end of the day and we move forward. So I would hate to think that we're all clones of each other, that we have to be so idealistic pure, we can't have disagreement. We have probably very similar ideas on goals and objectives. We sometimes have differences on process and how we get from here to there. But that's healthy. You want to have discussion and dialogue. You don't want us to be rubber stamps of each other. And I think the caucus system allows that give and take and free for all that you need to have in a convention system, where we have representative people, delegates that represent the neighborhoods. And they should represent the neighborhoods. If they're not then we need to change the delegates.

REPORTER: Do you feel good about the direction the party is headed right now?

GOVERNOR HERBERT: I feel good about the party, and the party platform, and that is what creates direction. The outcome of that direction we see with the governance of Utah. On my watch, at least, we see we're the best managed state in America, we have a AAA bond rating as one of the fiscally fittest states in America, our economy is growing again, we're creating jobs. Our unemployment rate is still too high, but still about two percent below the national average. In every measurable aspect we see things improving. So the outcomes of, really, Republican dominance in the state of Utah, has been very positive. And I think the people should be pleased, and I certainly am.

LISA RILEY ROCHE, DESERET NEWS: Governor, you say the caucus system is working, but your predecessor formed a commission to study why Utahns turn out in such low numbers at the polls, and that was one of the reasons, is the caucus system tends to exclude people. You say people need to participate, but they're just not.

GOVERNOR HERBERT: Well, they certainly do at certain levels, we've had ups and downs, and it's not just Utah, by the way, that's been on the decline of participation. Virtually every state in America has had decline. So it's not unique to Utah. I would add that those who are probably the poorest at showing up and participating are young people. Guess what our state is loaded with a lot of young people. We have the lowest median age in America, 28.8 years of age. So that probably is part and parcel of that decline in participation. But that doesn't mean the system's bad, it just means we need to get more civic involvement. We're civic minded, and say we've got to get involved and make a difference. And individuals can make a difference. So part of it's just shirking our duties and lack of responsibility, it has nothing to do with the system we're involved with. Again, I would just, again, remind us all, the outcomes we received in Utah under this system has been very, very good, and in comparison to other states today in America, we're at the top of the heap.

RICHARD PIATT, KSL-5: Governor, I'd like you to comment on a comment that was made by a Tea Party Caucus member from Florida, Representative Dennis Ross, who said in a conversation about reducing the federal deficit, that he is not an economist, but he's maintained a household. The federal government owns 70 percent of Utah, for example, there are federal buildings. If you need cash, let's start liquidating." What do think about the idea of starting to sell Utah land to help pay down the federal deficit?

GOVERNOR HERBERT: Well, it's an idea that's not new. It's been talked about for the last generation, if we want to reduce the deficit, and balance the budget on the federal level, why don't we sell some of the federal assets? And of course we have a lot of private land, or excuse me, a lot of federal land, that they could liquidate and help balance the budget. I think it's certainly worth exploring. I don't think we're going to sell off, you know, our national parks and some of these pristine areas, but there's a lot of land that could, in fact, be privatized and help reduce the deficit. So I think it's got some merit to it. Again, nobody's talked to us about it. Really, in Utah, it's not just 70 percent, but if you factor in Indian reservations, if you factor in other government lands besides the federal government, we only have about 21 percent of Utah that's privately owned land. Compared to the people back east, I mean they can't even comprehend that. That it does inhibit our ability to develop commercially, it inhibits our ability to fund education. It's a unique challenge we face in Utah.

RICHARD PIATT, KSL-5: Is there a concern about the sort of camel's nose under the tent kind of argument, where once the federal government has its eye on this piece of land, and another, and then another, and before you know it, the state doesn't have any control over what's happening. Is there a concern about that?

GOVERNOR HERBERT: I don't think so. I don't think the federal government has any appetite to sell anything they've got. They're more than happy to live with deficits, unfortunately. So I don't think there's any appetite to sell anything off. Again, I would argue that we could privatize this public land, and have it developed commercially, and in many ways protect it better. We've got instances around the state where land has been held in private ownership and protected Indian artifacts and ancient burial grounds, as well as camping grounds, better than when it's been turned over to the government to manage. So, again, I don't think there's going to be a big March towards liquidating our public lands.

REPORTER: Governor

GOVERNOR HERBERT: But most states, I'll just add, as you look at the history of America, when states became states, the process was to take that land which was not owned privately, give to the federal government for the purpose of disposal, and they sold that land, and that's why all lands from the east coast to the rocky mountains is virtually all private land, because they did that. They changed the process when they came to the intermountain west, and we gave them the unowned land for the purpose of disposal. The federal government just never disposed of it. That's why it's become public lands, and with the FLIP MA Act and other things that they've incorporated into what we have today, which is unique, way different than most other states in America.

JOHN FLOREZ, DESERET NEWS: Governor, when you came into office you established an optimizing government commission for efficiencies. That report came out last year with 56 recommendations. How many of those have you looked at and really implementing?

GOVERNOR HERBERT: We're looking at all of them. In fact, we have a web page where you can track the fact that we're taken them off one at a time, in fact, to incorporate and make those modifications. We're doing things on pension reform, for example. That's one we've kind of checked off. We're working on Medicaid reform, we're working on health care. We're working on making sure that we look at the value of employees and make sure that we are not too top heavy on benefits, that we maybe need to, in fact, increase more on the salary side and decrease on the benefit package side. Again, for retirement benefits, we ought to put more of the responsibility, we think, on the employee, and less on the taxpayer. So we're going through a number of modifications, and it's going to take us two or three years to get them all done, but we are, in fact, taking them off one at a time. It just so happens I'm meeting with Jeff Herring, who's our HR department, to see what's being done on the employee side of those issues that I just mentioned.

JOHN FLOREZ, DESERET NEWS: What about corrections?

GOVERNOR HERBERT: Corrections is being reviewed. Corrections, you've heard talk about should we move the prison? There's been talk about that in the Bangerter Commission. They didn't make really any recommendation but they said there's probably a way to optimize that facility and that real estate out there. We do have people who are out there talking about presenting a proposal. That is yet to happen, I expect that that will happen sometime here in the next year, and we'll analyze that and see if, in fact, it does optimize the taxpayers' dollars, and is there a better way to manage our inmates, and is that the right site, to manage our inmates in that correction facility at point of the mountain?

MAX ROTH, FOX-13: Governor, here's a fun question. Huntsman or Romney?

GOVERNOR HERBERT: Well, maybe fun for you. Huntsman and Romney are good friends of mine. I have high regard, I supported Mitt Romney for president before, in 2008, I've encouraged him to run again, and it appears that he's going to be doing that. Governor Huntsman, a good, dear friend of mine, has a keen intellect, probably without peer when it comes to international affairs and the nature of the global marketplace out there. Both very talented people. And as I said before, they're my friends, I like them both, and a Romney/Huntsman ticket would please me very much. And no matter which order they go. So we'll wait and see how it plays out, but they're both good people and Utah should be proud of both of them.

BILLY HESTERMAN, DAILY HERALD: Governor, last week Governor Huntsman mentioned that his Mormonism is tough to define, that he's a spiritual person. To you does it matter for a politician if people know what your religion is, and how active you are in it?

GOVERNOR HERBERT: I think it's an important part of who we are and what we are. I think it's a legitimate question to ask. And everybody will answer it probably differently. And you know, Governor Huntsman has answered it the way he sees fit. That's for him to define himself, and I think that's very appropriate. I would certainly not want to speculate on his Mormonism. I think having people that have spiritual and a spiritual nature, I think is a good thing, from my perspective. But I expect there have been good governments where people are not very spiritual, you know, in the traditional sense of the word. Principles that we govern with ought to be at the forefront and we ought to tell those people what those principles are, and then you can predict how I will govern based on a set of principles. That's why we have party platforms, in fact. So again, I think Governor Huntsman is a wonderful individual, and has got a great family.

KEN VERDOIA, KUED-7: Governor, we are running short of time, we're under two minutes left, I hope this question isn't too complex to ask in this time. All states are looking at redistricting now as a result of the census data created in 2010. Utah is looking at redistricting, and adding a fourth congressional district. Everybody who says they're involved with this process wants it to be "fair." I don't think I've ever heard anybody say, "I want an unfair process." But since you've already indicated, twice now in this news conference, that things go better with Republicans, is partisan consideration an important value to be included in the redistricting?

GOVERNOR HERBERT: Well, as a partisan Republican, I have appreciated the principles that we espouse, I think we sometimes get caught up in labels, and we ought to be talking more about principles. I think principles will unite us, no matter what your label is. So I would emphasize that first and foremost. Secondly, I think we do want to have some kind of fairness. It's difficult. It's a legislative responsibility by state Constitution, and I believe the legislature is trying, in fact, to put people in place and get public input so that, on a very complicated issue, that there is some fairness involved in that. Fairness, like beauty, is sometimes in the eye of the beholder. I think we want to make sure that everybody is represented fairly, everybody has a voice that can be heard with their elected officials. So the public needs to be involved in helping shape this. In fact, the legislature created an online site where you can create your own district and see how you would do it if you were the king for the day. I'm confident we'll come up with a good approach.

KEN VERDOIA, KUED-7: Governor, thank you for your time. We're out of time for this edition of the Governor's Monthly News Conference. Please join us next month for another edition. Until then, good evening.

 

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