June 24, 2010

If we get the economy going again, education funding will take care of itself, transportation funding will take care of itself, health and human services will take care of itself. -Governor Herbert

KEN VERDOIA, KUED: Governor, thanks for joining us today. Some sobering economic news for Utah this week. New home sales are reported at record lows, and front page news that the state's unemployment benefits trust fund is on a track to go broke due to extraordinarily high demand. Now we may take those up individually, but I'd like to think in a bigger picture to begin with. With the state's fiscal year budget starting just next week, are you going to face the prospects of reconsideration with the legislature of the budget plan?

GOVERNOR HERBERT: Well, the good news is that we anticipated that when we prepared this budget. So we have no need to come into a special session. We actually put money into fiscal year 2011 to make some adjustments, because we always believed we could come in between 50 and $150 million short as we come out of this economic downturn. So the good news for all of us is that we've anticipated that, and the good news is that we see a lot of indicators that we are turning the corner. Inventories are down, temporary services, hirings are up, which means that businesses are looking to hire people, they're a little bit uncertain about whether they can do it on a longterm basis, so they're hiring temps, that will eventually become permanent hirings. Corporate income tax is up, truck sales are up. There's a new thing out there in the country called truckonomics, as an indicator of, in fact, the economy turning. We have economists like Jeff Thredgold, the chief economist for Zions Bank, that says the recession is over, that we've turned the corner. Dean Singleton from Salt Lake Tribune, I had lunch with yesterday, said the state that is showing best improvement of all of his holdings is Utah. So there's good news sprinkled in there with some of the disconcerning news of revenues being down. But it does appear that we're turning the corner, and indicators that we have today, which will produce revenues tomorrow, are up.

ROD DECKER, KUTV: The legislature says they're already 50 to $100 million short, so I take it you had a cushion, the cushion's The fiscal year hasn't started yet, the cushion is now gone. Is that - -

GOVERNOR HERBERT: The cushion was put into 2011 in anticipation. So we've already had, by executive order we've had cuts that have taken place across the board with our divisions and department heads. Those cuts will have realization, or the $150 million, if that in fact is what it stands out to be, will be taking place in our next fiscal year budget. So when we come back together in January of 2011 we'll make those adjustments as needs be, if needs be.

ROD DECKER, KUTV: Okay, in the current, in the year that will soon end, you're okay. You built in a cushion and you're okay.

GOVERNOR HERBERT: Yes.

ROD DECKER, KUTV: In the year that's coming, you now may face 50 to 150, you'll have to wait and see, and you'll take care of that when you meet in January if, in fact, it materializes.

GOVERNOR HERBERT: If, in fact, it materializes. The projections we really have now is some growth in the next fiscal year, which will be fiscal year 2012. So we think we're right on target, indicators are that we've turned the corner. A lot of good news out there, somewhat spotty, but it appears to be a recovery that's taking place. And so I'm confident that we're going to be okay going into January of 2011.

REPORTER: One cut that is being talked about is turning prisoners loose from the state prison, maybe this fall. I take it you've been briefed on that. Does it worry you? Will it be a threat to public safety?

GOVERNOR HERBERT: No, it won't, and again, if there's anybody being released, they'll be nonviolent offenders that have pretty well served their terms and their time. We will work with the counties, there's the ability of warehousing prisoners in county jails. We have an agreement and jail contracting. We're actually going to have some discussions with the local counties and the state on that very issue of jail contracting and jail reimbursement. So I expect that we're going to be fine. I'm not really anticipating any problem there at all.

MAX ROTH, FOX13: School districts are in crisis, the latest that we've heard is that the Canyons School District is announcing furloughs in the coming year for teachers. Just about every district across the state has at some point been announcing that, and probably more are to come. I know that's not directly under your charge as the Governor, but what do you say to parents out there who are worried about their kids and their schools?

GOVERNOR HERBERT: Well, again, I think that the salve for any wound we have out there is growing the economy, and so what we're doing, in fact, to empower the private sector to make sure that there's economic expansion, which is, in fact, starting to occur, is a number one priority for us. If we get the economy going again, education funding will take care of itself, transportation funding will take care of itself, health and human services will take care of itself. So the emphasis has got to be there. That being said, our Education Excellence Commission, which we meet on a monthly basis, clearly has made it as a priority, as we had in this last meeting, funding for education. How are we going to do it? What's going to be the funding mechanism going forward? Where does equalization fit in? And some of those tough issues we're going to be discussing, and breaking into actually subcommittees now to have some indepth discussion, and I expect we'll have some recommendations on funding coming up this October. So again, we are taking a proactive look at these things, and funding, and all of its different iterations as a priority for the education commission.

MAX ROTH, FOX13: What kind of new ideas are out there on the table with education funding?

GOVERNOR HERBERT: Well, the recommendations haven't occurred yet, but the question's going to be, is there a new source of revenue? One of the reasons I'm passionate about energy development in the state of Utah, and our ten year, nine point initiative plan that we've rolled out is because we have the ability to generate revenues with energy development in the state of Utah. We have natural resources, and we can develop them in environmentally sensitive ways. That could be a source of new revenue, or at least additional expanding revenue, for our schools and help us fund education in Utah.

ROBERT GEHRKE, SALT LAKE TRIBUNE: Were you satisfied with the response to the oil pipeline break, and Chevron's response, and also the state's ability to have oversight of it?

GOVERNOR HERBERT: I was very satisfied with the response of Chevron. Number one, I think they've stepped forward, they have not equivocated their responsibility, they've been very proactive in trying to help clean up the oil spill. We've recovered 600 of the 800 barrels that were spilled. From the very first day, from the very first minute, the very first hour, we've been involved with Mayor Ralph Becker, Amanda Smith, who's my director of the Division of Environmental Quality happens to live right just right next door to Red Butte Creek. In fact smelled the oil that morning. So we've had people on the scene from our Division of Environmental Quality, from our Natural Resource Development Department, Mike Styler, our water quality people, and I applaud Mayor Becker. It's a local issue, and we've let him know that he's in charge as the local elected official, but we're there to assist, and have been there. We've talked about having a debrief when this is all over and making sure we understand the ramifications of this ongoing. Are there problems with the pipeline? I don't know that anybody's ready to fix blame, who caused the hole, what was the reason for this to happen? But I appreciate that Chevron has stepped forward in a very proactive way to help clean it up.

ROD DECKER, KUTV: You need to decide soon as to whether the state will administer a fund for hard-to-insure people that is mandated by Obama care. In fact, it was said by some people that you would decide today. Have you, in fact, decided whether the state will administer that fund?

GOVERNOR HERBERT: I have.

ROD DECKER, KUTV: Will you tell us what you've decided?

GOVERNOR HERBERT: I think it's prudent for the taxpayers that with $40 million being on the table on a temporary program, it's really a three-year program and expires December 31st of 2013, that we have the ability in Utah, uniquely so, to spend the money more efficiently than the federal government. This is a stopgap measure designed to provide opportunities for people who are high risk that don't have the ability to get insurance, as a bridge to 2014 when preexisting conditions no longer can preclude you from getting insurance. We believe that we will have the efficiencies, because we already have a high risk pool with our own HIP program, we don't have to reinvent the wheel, we've already got it going. We'll have to hire one additional person for about $40,000 a year to, in fact, run the federal program as a parallel program, and we believe we'll insure about 575 more people by us administering the program than if we have the federal government, who has to start a new bureaucracy in Utah, and uses a national provider. So the efficiencies of state administration of the $40 million is significant, as opposed to having the federal government administer the $40 million. So from a taxpayer's standpoint, we want to get the most bang for the buck, and the state's prepared to do that.

LISA RILEY ROCHE, DESERET NEWS: Governor, what does that say about the state's opposition in general terms to the Obama health care plan, the ongoing lawsuits, the ongoing rhetoric against the federal government's involvement? It reminds me of the attitude a lot of people in the state took toward the stimulus package. No one wanted it, but the real question was, can we get more? Aren't we doing the same thing with health care now?

GOVERNOR HERBERT: No. The question simply is this. There's $40 million that's going to be spent of Utah federal taxes, as well as other American taxes, federal taxes being spent. Our allocation is $40 million that's going to be spent in Utah. The question before us is, should the state spend the money and manage the program, or should the federal government spend the money and manage the program? The money's going to be spent, regardless. And I'm here to tell you that we can do it in a much more effective and efficient manner. I think most federal programs ought to be looked at as far as devolving to the states and let them, in a more efficient manner, spend the money. We could probably have the same kind of services and at less cost. So when we can insure an additional 575 people over these next three years in this high risk pool, it's only in the best interests of the taxpayer to get the best bang for the buck, and the consumer in Utah is benefitted. This is no way an endorsement of a national health program. I have issues and concerns with the health care program that was passed in congress. It is, like it or not, the law of the land, and we're going to have to deal with that as we can. I support the lawsuit on the Constitutional issues, but some of the issues are not unConstitutional. This is really a stopgap measure, and it's an opportunity for us to spend the money more efficiently than would otherwise be spent, and I think that's what the taxpayers want to have.

INGRID QUIROZ, LA PRENZA TIMES: Governor, the Department of Culture position is vacant. In your campaign Huntsman/Herbert you indicated that you will increase the involvement of ethnic groups, ethnic members of the community. Are you contemplating on having a minority representative in that position?

GOVERNOR HERBERT: I'm contemplating the best people I can to take that position. And without regard to ethnicity. But I can tell you that we have interviewed and are interviewing people that are in our minority population, and they have every opportunity to have that position also. And I haven't made a decision yet, but we've got some very good minority applicants that

INGRID QUIROZ, LA PRENZA TIMES: How many applicants do you have right now?

GOVERNOR HERBERT: We have about two or three applicants that are minorities, as well as others that are not. But again, I'm going to get the best person I can to run the operation.

INGRID QUIROZ, LA PRENZA TIMES: Also you are a strong supporter of duplicating the Arizona law in Utah. Why is that necessary to do here?

GOVERNOR HERBERT: You say I'm a strong supporter of duplicating the law?

INGRID QUIROZ, LA PRENZA TIMES: Yes.

GOVERNOR HERBERT: I'm not a strong supporter of duplicating the law of Arizona. I understand the concept, I understand the intent, and I support the fact that we need to have immigration reform. And we certainly can learn from what's taking place in Arizona. So we can use that as an example, and I expect that what we need to find, though, is a Utah solution to the immigration issue, which may be similar, it may be dissimilar to what's happening in Arizona. I'm not prepared to say what that's going to be. What I do believe is that everybody ought to get together around the table and have some discussion on what we believe immigration reform should be in the state of Utah. That includes legislators, that includes the business community, it includes the Latino community and other minority groups. It includes faith-based organizations who have a role to play and have made their voice heard already on the issue. So we need to have a robust, indepth, methodical reasonable and rational discussion on immigration, and I'm going to do my part to make sure that that happens.

INGRID QUIROZ, LA PRENZA TIMES: You think you can do it at the end of the year? Or how long you will take?

GOVERNOR HERBERT: It's starting now. There's already discussions that are taking place. I've had opportunities to talk to, I was with Bishop Wester of the Catholic Church just yesterday, and it came up in our conversation with him. I've talked with a number of different legislators, Republican and Democrat alike on their issues and concerns. Law enforcement clearly is an issue that needs to be at the table, and I've had discussion with law enforcement to see what their issues are, and their voice ought to be heard. I certainly have talked, over the last six months, way before the Arizona issue ever happened, with our Latino population, and said, you know, you need to come forward with your recommendations for immigration reform. And that's in the process of happening. I'll probably have a recommendation from our Latino council here maybe in the next couple of weeks. So there's a lot of discussion going on, it's going to, I think, be methodical, and I think that we're going to come up with something that everybody can feel good about. My dream would be to have representative Steve Sandstrom cosponsor a bill with Senator Luz Robles, and we'd have a bill that probably all of us could feel good about.

JEFF ROBINSON, KCPW: Governor, would you mind telling us how you might have voted in Tuesday's senate GOP primary between Mike Lee and Tim Bridgewater, and do you think Mike Lee, as the GOP nominee, with his position on repealing the 17th Amendment, for example, and not allowing Utah to reject foreign nuclear waste, is the right senate candidate to represent Utah in the senate?

GOVERNOR HERBERT: Well, there's a lot of questions there. Mike Lee and Tim Bridgewater are very good friends of mine, and it was a very difficult decision for me as far as who to vote for, and I'm going to keep that private because they're both friends. I'll tell them both I voted for both of them. But I think Tim ran a good race, he led coming out of convention, and shows he's very strong in a convention system. Mike Lee came from behind, and won on Tuesday's election. We had a good turnout, a better turnout than we've had the last three or four election cycles. So there's energy out there on probably both sides of the aisle for the elections. I think Mike has the potential to represent us extremely well. He is a Constitutional scholar, that's not a bad thing. I think he understands Utah, he certainly has a long history with his family of being a Utahn and understanding Utah values, and I think he'll represent us well in the state of Utah. The Energy Solutions issue is, to me, an irrelevant issue. As an attorney, you represent all kinds of different organizations, entities, that's part of what you do as an attorney.

JOHN DALEY, KSL-TV: Governor, this past week a judge ruled that the state DPS, Department of Public Safety, had to release the Sheldon Killpack dash cam video. That decision was made after the state records board voted that it should. At the same time we have another state agency, the Utah Transit Authority, which has changed its policy so that appeals of GRAMA requests would no longer be able to go to the state records board, and if your appeals were denied you'd have to take it to court. Are you worried about government becoming not transparent, and kind of too secret?

GOVERNOR HERBERT: Well, I'm not overly worried, but I am concerned, if that's the trend. I think government functions best under the light of day and open scrutiny. I think that openness and transparency should be something we all try to do. There's some issues that become a little bit more problematic, whether it's personnel or litigation, or in some cases real estate acquisition, that jeopardizes your ability to make good decisions if it's always open in the public. That being the case, I think virtually everything else should be open and transparent, and with the UTA, in fact, I've talked with outgoing chairman Larry Ellertson, and now the ingoing chairman, Representative Greg Hughes, and both have pledged, at least from UTA's perspective, to be a lot more open and transparent than they have in the past. So I'm going to hold them to their word and I expect that will take place.

REPORTER: Is it fiscally responsible to deny these records and then, in this case the DPS, they lost, and the attorneys are apparently going to sue for their legal fees, and it's going to cost potentially more than $50,000.

GOVERNOR HERBERT: Obviously in hindsight it wasn't fiscally prudent, and that's being proven now with the obligation we have potentially for attorneys fees. Again, I don't know exactly why it was not available in the beginning anyway. And it is now, and again, I think openness and transparency is the best way to approach things.

ROBERT GEHRKE, SALT LAKE TRIBUNE: But you also have created a couple of task forces that you have said are not going to be open or transparent. Your energy task force, your optimization task force. Why is openness and transparency- - GOVERNOR HERBERT: I don't know where you're getting that from, Robert. The energy task force is open. In fact we're going to be going out and holding public meetings to get input from people of all stripes out there, to give input on the pathway to success. We're going to develop to reach the goal of our nine initiatives. So it's going to be very open and transparent, and everybody's invited to participate. Virtually all of our commissions and committees are open, our education commission, again, which is by design has to be somewhat finite, but it's open to people to come in and listen and observe, to give written comments, and opportunity to give public comments as the opportunity arises. So we're trying to be as open as we can. We have some personnel issues with the optimization commission, which is really generally open to everybody, but there are times when they need to talk about some issues that may throw a shock through the system as we downsize maybe potentially some departments. And so there's a need for us to get those recommendations without having people become worried about loss of job that maybe is unwarranted.

MAX ROTH, FOX13: Along those lines of openness, it seems like that also fits the e-signature issue. And I'm wondering, you got the advice from the attorney general's office through the Lieutenant Governor's office that e-signatures could not be accepted, and then that was firmly slapped down in a five to nothing decision by the state Supreme Court. Are you satisfied with that legal advice that you got?

GOVERNOR HERBERT: Well, I think there's a lot of legal scholars that are scratching their head a little bit about the decision that was made. I think that the recommendation we had from the attorney general's office, and our own general counsel as they reviewed the statute, I think reflects the intent of the legislature in creating a paper system for elections. And so I think the position we took was more closely related to what the legislature had intended. That being the case, I'm the executive branch, I execute the laws. The legislature creates the laws, and if the Supreme Court found some nuance there that said well, you know what, it's not closed, here, on electronic signatures, therefore we must accept electronic signatures, then I will abide by that. I have no problem with electronic signatures. I don't think there's an issue for me personally. New technology is new technology, and an opportunity there. I just believe the legislature should, in fact, authorize it. Now, what the Supreme Court did, it was kind of a narrow decision, and they've indicated that the Lieutenant Governor's office could, by a public process, through rule making, in fact, eliminate the ability to have electronic signatures. I think it's something that the legislature needs to address, and probably will address in the upcoming session.

DAN BAMMES, KUER: Governor, since we met a month ago, some of the ongoing processes with local governments to designate wilderness in counties have run into trouble. San Juan County process appears to be stalled, the Beaver County process is all but dead, Paiute County wants to go ahead with theirs independent of Beaver County, and it appears that the process that began with Washington County is now in chaos following the defeat of Senator Bennett. Is it going to take leadership from your office to get that back on track?

GOVERNOR HERBERT: Well, it's probably going to take cooperation from a lot of different entities as we work together, and our balanced resource council is right in the middle of this, Ted Wilson is doing a great job. I'm not quite as skeptical and pessimistic as you've stated it. I think we're going to find successes in San Juan County. I think we've found successes in the Taviputs region there in Carbon County, with our developers, Bill Barrett Corporation, and Environmental Community, so I'm optimistic that we're going to come together on a lot of these different issues, using our Balanced Resource Council as the mechanism. Again, we have a good working relationship with the Secretary of the Interior, Ken Salazar, who was here. I think that's going to be helpful. Clearly we're going to lose the experience of Senator Bob Bennett, who's been at the forefront on this. But others will pick up that slack, whether that's working with Senator Hatch more, or the new incoming senator, which I, as a Republican, think maybe Mike Lee, or with our congressional delegation that we have currently there constituted. I expect that we're going to move ahead in a very positive and successful fashion in dealing with wilderness and public land issues in the state of Utah.

DAN BAMMES, KUER: Let me follow up on that. Mike Lee believes that the U.S. Constitution requires a vote of the Utah legislature to designate any wilderness in Utah. Do you think that imposes, perhaps, an insurmountable obstacle on a process like Washington County?

GOVERNOR HERBERT: No, I think the practical realities will set in as we get together, and we have an opportunity to reason together. There's probably a lot of different legal theories out there, and we need to work together and find what we think is the best solution for Utah. I think, again, there are issues as far as whether the federal government should even own real estate is at least one legal theory, because there's really no provision in the Constitution, other than for military bases and Washington, D.C. A lot of legal theories out there running around. We'll come together and we'll wait till whoever's elected in November is elected, and then we'll work together with the new senator.

KEN VERDOIA, KUED: Governor, we have about two minutes left. Last time I brought up this topic I gave you too little time. Since the last time we met, in the days leading up to the execution of Ronnie Gardner, you expressed your sensitivity for the gravity of the execution act. But also, at the same time reaffirmed your belief in its appropriate application. In the wake of this most recent application of the death penalty in Utah, your first as Governor, do you have any new, different insights or perspectives on this ultimate penalty that a state can hand down?

GOVERNOR HERBERT: I don't know if I have anything new, Ken. I certainly am sobered by the process, and it really is the ultimate penalty that we, the state, representing our citizens, impose on somebody, is to take their life, as retribution and punishment for crime. I believe that in appropriate circumstances the death penalty is warranted. And again, it's an ongoing debate, probably always will be an ongoing debate. Some like it, some don't like it. Some are ambivalent about it. I think that it always gives us pause for reflection, and make a determination, is the process correct? Are the penalties right and appropriate? The thing that I think disturbs most everybody, regardless of your position on the capital offense, should it take 25 years? It's just such a long, lengthy and expensive process that it makes people wonder, why does it take so long? And I think justice delayed is justice denied.

KEN VERDOIA, KUED: Governor, thank you very much. A reminder that archived copies of past Governor's news conferences, along with transcripts are available online at www.kued.org. Until the next time we meet, thanks for joining us, good evening.

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