January 26, 2006

"I, as a policy maker, am more optimistic than I've ever been about ultimately getting this dreaded tax off food." -Gov. Huntsman

Reporters: (in order of appearance):

KEN VERDOIA, KUED
RICHARD PIATT, KSL-TV
TOM JORDAN, METRO NETWORKS
ROD DECKER, KUTV 2
DAN BAMMES, KUER
LISA RILEY ROCHE, DESERET MORNING NEWS
CRAIG HISLOP, UTAH PUBLIC RADIO
JONATHAN BROWN, KCPW

Transcript:

KEN VERDOIA, KUED: Governor, thanks for joining us today.

GOVERNOR HUNTSMAN: Thank you.

KEN VERDOIA, KUED: One month ago when we met at the studio, there seemed to be a fairly broad consensus of momentum, if you will, that the time was at hand that the state to substantially address, if not eliminate, the sales tax on food. Since then there's been subsequent revelations, if you will, and concerns that such an elimination could have a serious impact on local governments in the state. Have we lost the momentum? Where do we stand?

GOVERNOR HUNTSMAN: Oh, no. I think the momentum is, at least I, as a policy maker, am more optimistic than I've ever been about ultimately getting this dreaded tax off food. It's going to happen, it's simply a matter of working out the metrics. As you recall, probably two or three months ago we sat here and the question was, will it ever happen? Well, the fact of the matter is it is going to happen, and what we've heard coming out of the legislature is not surprising given the give and take and the debate surrounding significant tax reform, the likes of which we haven't seen in this state in a very, very long time. So I'm optimistic that the sales tax will be removed, I hope at the counter, that certainly is my position. If we're going to do it, let's do it in total. I kind of liken it to giving a starving person half a loaf. Let's do it in total. We can afford to do it this time, and let's also at the same time tackle income tax reform. They're both doable, they would represent sweeping change in the state, and they would be tax reform focused, first and foremost, on individuals as opposed to corporations, which is really the focus that I think is needed this session.

RICHARD PIATT, KSL-TV: But Governor, wouldn't you agree that the legal aspect of the cities' ability to pay off the revenue bonds, one billion dollars over the last four years, and the political dynamic of the senate actively resisting this proposal, has the potential to, if not kill it this year, at least put it off for another year?

GOVERNOR HUNTSMAN: No, I don't think so. I think this is an issue, perhaps, that has been made into something more than actually exists. When you look at the offset at the local level, a .12 percent offset, or going to .30 versus .25 at the county level, we can ensure that there aren't any problems in terms of breach of agreements, by bond holders or any others who are extending credit. That's the way I'd like to see it done, and I think that's also envisioned in the Newbold legislation that is going forward. And I think by doing that we can eliminate any concern at the local levels by filling that so-called hole. And then that leaves us with the state portion, and I'm confident that we can get that covered as well.

RICHARD PIATT, KSL-TV: At this point, is the idea of a tax credit, instead of taking it off at the register, acceptable to you at all?

GOVERNOR HUNTSMAN: No. I think if we're going to do it, we do it in total. And this is a year we can do it in total.

TOM JORDAN, METRO NETWORKS: Do you, is your office working closely with the leadership in the house and the senate, or have you put your position forward and they're working on their own?

GOVERNOR HUNTSMAN: We're all working together. I work with the speaker and the president of the senate. We were together yesterday, we were together the day before that. We are consulting regularly on how we proceed. I think it's important that the rhetoric not get too hot, and that we remember that there will, at the end of the day be a pathway forward in getting this resolved. And we need to remember that there will be new numbers that will come in, likely the second week of February, that will round out our understanding of the total budget number for fiscal year '07. So we're really looking at an incomplete number against which we're budgeting, and I think we're going to have a more complete picture in a couple of weeks, in two or three weeks. And there's no reason to get too rhetorically caught up on this issue until such time as we have a better understanding of what those numbers are and what it might mean in terms of closing any gaps that might exist.

ROD DECKER, KUTV 2: Are you relying on new revenue midstream, on the next revenue estimates? Do your - - If we took all sales tax off food and the state took the whole hit, none of it going to any of the other people who get sales tax, do your numbers work? Do your budget numbers work under that, or do you need more revenue to come in in February to pay for all the spending that you've suggested?

GOVERNOR HUNTSMAN: Our budget works today. It will probably work better with new numbers that will come in in February. I'm convinced we'll see more come in in February. Moreover, I think it will go a long way in bridging the divide between the senate and the house. I think we'll then have a new set of assumptions against which to make decisions. But my budget stands healthy as it is today, with respect to the priorities that I've put there. And tax reform included in that.

DAN BAMMES, KUER: Governor, the Department of Human Services is looking at rule changes in federal programs that could result in a shortfall of more than $20 million for them in the coming fiscal year. Money that the state will likely have to make up. A couple of questions. Number one, how will the state address that funding shortfall? And second, does that undercut your plan to fund a reduction in the waiting list for the Division of Services for People With Disabilities?

GOVERNOR HUNTSMAN: It's a very good question. Our number to support the waiting list is in our budget today, and I'm confident that it will be in our budget in the final analysis. Now, you raise a very interesting and important issue as it relates to social services, and the effect of this whole deficit reduction act of '05, which is still incomplete. We don't know yet what legislatively we'll be handed. We think we understand what the shortfall is going to be, sensing where the vote might end up. And that could be very, very painful for us in state government on the social services side. You're looking mostly at case workers, you're looking at probably upwards of 300 of the 606 case workers. The services that they're able to provide in-home, as opposed to foster care services, and opening the door for health care services for those who have a difficult time accessing health care, these are fundamentally important services for many of our citizens, and they would take a direct hit. Therefore we've got to go back as we begin to collect this information and understand the implications, and look at, at least re-look at our budget, given this scenario. I don't know what it's going to look like several weeks from now. We need to know exactly what that number is going to be as a result of the deficit reduction act of '05 coming out of Washington and what the implications will be here locally. But there will be some juggling that we'll have to do to address that. There's no doubt about that.

DAN BAMMES, KUER: So you don't plan to, in the state budget, fund what the entire amount of the deficit, whatever it comes up to be?

GOVERNOR HUNTSMAN: Well, in working with Lisa Michelle Church, I'm going to have her drive the priorities. Clearly she's going to have to look at her budget and tell us how we're able to, then, live in a world where the federal government cuts out a large portion of our funding. What we must pay attention to most immediately, what might be less important longer term. This is all about priorities when you get down to budget cuts like this. And I'll let Lisa Michelle Church give us guidance on exactly which direction to take here.

TOM JORDAN, METRO NETWORKS: On the subject of juggling, this is the sort of issue that plays into what to do with the budget surplus. You've made your proposal on it. Are you comfortable with what you're hearing coming out of both the house and the senate about what to do with the surplus at this point?

GOVERNOR HUNTSMAN: Well, to the extent that it is focused on tax reform I'm comfortable. And again, my priorities are very clear, and that's income tax reform, and we know that at least the fiscal impact there is probably 17 million dollars, lower than we originally thought it would be, and taking sales tax off food. And I'm completely supportive of what we need to do to address those two areas of tax reform. And for those who want to follow with us, and those who are aligned with us, I think we'll have a pretty successful outcome.

ROD DECKER, KUTV 2: Taxes were part, in your campaign, were part of a larger picture of economic development, and another part of it's this U-star, and part of U-star is attracting top scientists. Now, on the other hand we have Senator Buttars' bill that will limit what scientists can say about the origin of man, or at least what science will say in our public school classrooms. So I would say our message to scientists is, come to Utah, be part of U-star and help us, and our legislature will tell you what you may and may not say about the origin of human beings. Is that fair?

GOVERNOR HUNTSMAN: I think most scientific talent that we would recruit to this state would be able to put Senator Buttars' bill in proper perspective. Through U-star we are looking at taking some centers of excellence on our research university campuses, and creating, or building them into world class centers, to tackle things like Alzheimer's and cures for cancer, and diabetes. And I'm not sure that, whatever the discussion is surrounding Senator Buttars' bill, I don't even know how far that's going to get, is going to have any impact whatsoever on our ability to recruit world class intellectual talent to our universities.

ROD DECKER, KUTV 2: We had a fight about this in Tennessee in 1925 in the Scopes trial, and it's still remembered, and scientists still go, "Har, har, har, can you believe that's what they did?" And some scientists still say, "The Yahoos got control." Is this in Utah, are we going to tell people that the Yahoos are in control, the way they were in Tennessee in 1925? Or in Kansas, say? I mean it makes national news, and it makes national news that legislators think they do better than scientists, that they lecture scientists, as we did on Capitol Hill, lecture them about the Piltdown man and about Krik and things like that. Does that distress you at all? It seems not to.

GOVERNOR HUNTSMAN: I'm not distressed in the least. Sometimes the frivolous and the less important capture headlines, but that's only a very temporary basis. This is sometimes referred to as political ephemera. The longer-term issues that we face as a state are those surrounding job creation, education, and basic mobility, transportation, quality of life. We need to stay focused on those, and as governor, as the representative of all the people in the state, that's exactly where my focus is. I'm not going to get side tracked on any side shows.

LISA RILEY ROCHE, DESERET MORNING NEWS: Does that mean, though, Governor, you would veto a bill like the origins of life bill if it does come to your desk?

GOVERNOR HUNTSMAN: I'll have to take a look at it in its final form. It certainly isn't there. What I have seen most recently is not an origins of life bill, it's been watered down to a relatively benign statement, and where it goes from here is anybody's guess. But when it reaches my desk, I'll read it, I will analyze it against all the things that I have told you in months past. And you know where I stand on this. And then we'll do what we think is right. But in the meantime we put it in its proper place, and we get on with the affairs of ensuring a prosperous economy, and U-star is a hugely important part of that, and ensuring a world-class education for our kids and for basic mobility that leads to quality of life that we can all be proud of.

KEN VERDOIA, KUED: Governor, we will turn our attention now to Utah State University and a question from Craig Hislop of Utah Public Radio. Craig?

CRAIG HISLOP, UTAH PUBLIC RADIO: Governor, what would you do if the legislature takes away your final say on the waste sites?

GOVERNOR HUNTSMAN: Well thanks, Craig. I don't think that's going to happen. It was arranged, I think, appropriately, where the governor has unilateral rights to jettison these kinds of ideas. Why is that? Well first and foremost because we're about the only elected official in this state who can protect the sovereignty, the image, and the reputation of this entity called Utah. If we don't do it nobody else will. So I think appropriately we have been given in the executive branch the authority to just say no in cases like this. And I don't worry about the legislature trying to put forward anything that ultimately will be successful. There might be some attempts, but I think there is a deeper sentiment in the legislative body in support of what it is we're trying to do.

KEN VERDOIA, KUED: Governor, the state has made substantial inroads in its objections to the storage of high-level radioactive waste on the Goshute Indian Reservation lands in Skull Valley. This brings up an issue of what prompted the Goshutes in the first place, which was the concept of economic development for their very, very small band. If high-level waste does not go forward, is there a path for Utah to work with the Skull Valley band to ensure a better sense of economic development for this small group, lest they consider other options, again, in the future?

GOVERNOR HUNTSMAN: Absolutely there is. And we have been in contact with the Goshutes, and as soon as we get this resolved, of course we will look for economic development opportunities, as we have with the Ibapah branch of Goshutes. There are some possibilities, it's a small band in terms of population, but there is land, and that is always a very important head start. But yes, indeed, we will sit down and talk about economic development at the right time. I want to make sure, first and foremost, that any possibility of our being dumped upon by outside interests is completely foreclosed, and we are just about there. And I was heartened to see the president sign just two to three weeks ago the legislation that basically calls for Cedar Mountain Wilderness Area. This was a very important move, a clarion call, a signal loud and clear to those interests that would seek to bring their waste in our state, and we're about ready to close out this final chapter. And once we do then economic development will follow.

LISA RILEY ROCHE, DESERET MORNING NEWS: Have you asked the legislature to possibly try to take control over having a final say rather than have that final say rest with the governor as you just said, does that hinder this battle that the state's fighting to have control over what comes into the state?

GOVERNOR HUNTSMAN: No, not in the least. I think that was basically handled through this most recent legislation, and I think by also a sense that there is a united front, mostly in the state, against this kind of thing happening. But more than just being a united front here in the state, I think there's an emerging consensus regionally in this part of the United States, that, whether it be Utah or Nevada or surrounding states, that we're just not interested in this kind of thing. And I would be very surprised if, given the messages that have gone out coupled with very important federal legislation, that anyone would try to fight that.

LISA RILEY ROCHE, DESERET MORNING NEWS: But given that some lawmakers want to take control of that issue, does that send a mixed message, though?

GOVERNOR HUNTSMAN: I don't think there is enough critical mass behind that basic philosophy for it to ever take flight.

ROD DECKER, KUTV 2: Representative Mascaro and others have a plan to allow small businesses to buy into Public Employees Health Plan, the state insurance, health insurance plan, and that way they could provide insurance for some people who aren't getting it now. What I heard is that your administration originally thought this was an interesting idea, but that now you have objections to it. Is that true, and would you talk a bit about allowing businesses into public employee plans.

GOVERNOR HUNTSMAN: Well, it was misreported in the sense that we jettisoned the idea. We jettisoned doing anything during this legislative session because I think it's premature. We're not there yet. The idea, however, is a very good one, and we're still working through the implications of this kind of approach to the marketplace, and that is gaining access to larger pools, which bring costs overall down, and make them more affordable for small businesses. And when I get out, as I was recently in Ephraim, Utah, and I hear from a dairy rancher about health care costs, as opposed to dairy subsidies or agricultural subsidies or economic-related issues, I know it's an issue that penetrates into the heart and soul of all in the state, and therefore it's important to me that we find a solution. We will find a solution, we're not there yet, it isn't market ready for a legislative fix, but we have a working group that has been impaneled and we're going to continue working on this.

ROD DECKER, KUTV 2: Okay, you're looking at allowing businesses into PEHP eventually, is that what I'm hearing? And you think that that is a good plan in concept, and you're just working out the details and some day we'll have a publicly proposed plan.

GOVERNOR HUNTSMAN: Conceptually it's a good idea. We don't understand all of the economic implications, nor do we understand what the fiscal note might be ultimately associated with this. We need to collect a little more information before we actually provide the green light. But conceptually this is an idea that is worth pursuing, and that's exactly what we're doing. It isn't ready for legislative fix right now. Might it be next year? It's kind of like tax reform and everything else, it's got to find its right time to be introduced. And the work has to be done, the due diligence, and we're still collecting that information.

RICHARD PIATT, KSL-TV: Governor, you're now just more than one year in office, this is your second legislative session, and granted it's only in the second week, but how would you say this session differs as far as you putting your agenda forward and the reception that you're getting, and the give and take between your office and the legislature, how is it different this year than it was last year, would you say?

GOVERNOR HUNTSMAN: Well, I have a few more friends this year. I was brand new last year, I hadn't worked the legislative network. This year we have more friends, and some alliances built that I think are very, very important. But the give and take of the political environment, legislative branch versus executive branch, is fairly similar to where it was last year. It's the way it should be. There should be a tussle. There should be a tug of war on issues, simply because we all represent different constituencies, and we have different interests that we're trying to uphold and protect at the end of the day. But going into this session I think, first of all, we have a year of experience under our belt, we have a network of relationships that we've built up over the last year, and I think we have probably a more confident sense of direction, from a policy standpoint. You're elected, as we were last year, and within days you've got to create a budget, and then you go right into a legislative session. You really don't have a lot of time to put a thoughtful, any kind of comprehensive legislative package together. You do it on a more of a catch-as-catch-can basis, to the best of your ability.

RICHARD PIATT, KSL-TV: So these tussles that you're talking about, do they have mostly with the money issue, or the sales tax on food issue at this point, would you say?

GOVERNOR HUNTSMAN: All of the above. There is, and there always will be give and take between the legislative and executive branches on all important issues.

TOM JORDAN, METRO NETWORKS: On a level of personal economics, most of us were stunned by our gas bills this month. You've asked for an investigation. What are you hearing?

GOVERNOR HUNTSMAN: Well, I sent our general counsel back to Washington just last week to meet with Congress, to meet with the White House, to meet with FERC, just to stress the importance of what it is we are trying to do here. Now, I've asked repeatedly people who understand the office of governor, what levers do I have? Realistically? I don't have a lot of levers to pull. I do have the bully pulpit, however, and we're using that and will continue to use it, because I do know this. Prices per MMBTU a year ago, a little over a year ago, were two to three dollars. In the future markets, some weeks ago they were knocking on the door of 15. And I see that the price to extract the gas is not much different than it was before. Inventories, which should obviously have an impact upon future pricing of gas, are healthy. There's nothing to be concerned about there. So what is causing the increase in prices? Does it have anything to do with Nymex trading? With the New York mercantile trading, and the way in which people deal with this commodity product called natural gas? And is it done in a relatively arbitrary and capricious way without a lot of oversight and regulation? I tend to think that there's a problem there, and that's exactly why we're raising the issue. If it isn't extracting it that's driving the price, and if it isn't inventory driving the price. Yes there's structural imbalances because of the world, and it is a global product, and there is global instability in this corner or that, but there is something happening on the trading end of natural gas it does need to be looked at. And we're going to continue moving this forward to see if we can't find some resolution. I was encouraged by what FERC announced most recently, that they are going to look at, if not begin regulating, some of the trading on the Nymex, more than was the case before, which wasn't anything at all. So you know, meantime prices have come down to about $8.30 or 40 cents per MMBTU, which is exceedingly high still, but down from where it was a few weeks ago. We're going to continue to work this issue.

JONATHAN BROWN, KCPW: Governor, how do you react to the call in the senate for soft repeal of the 17th amendment?

GOVERNOR HUNTSMAN: Well, I haven't given it a whole lot of thought. I'm generally for democracy, and I think that it was changed back in 1914 for the better, and I do think that the public at large ought to have some say in the primary process, when a United States senator is elected. And I look, every night I go home at the picture of Thomas Kearns on the wall, and am reminded that he was elected in the pre- 1914 world in which the legislature basically handed it to him. And the world has changed remarkably since then, and it was- - The change was made for a reason. I support that change, going way back historically, in american politics, and I think that whenever we can encourage more people to express themselves, and therefore the will of our population through a vote, primary or general election, we're that much better served.

KEN VERDOIA, KUED: Governor, we have about 90 seconds remaining in our allotted time today. I want to ask you a question. You have said in many occasions that you welcomed the input of the public on the weighty issues of what should the state do in good economic times dealing with the budget surplus. And yet a sentiment has been expressed on capitol hill in the past week in a couple of different sectors. From people saying the media is remiss in fanning the flames of the public's passion, by speaking out or sampling public opinion on certain weighty issues, the public simply does not have the information base to make informed decisions on how the state should manage money, such as taxes being removed, reformed. Your response to this, notion of the role of the public and public sentiment on the decisions that face state government.

GOVERNOR HUNTSMAN: I'd like to see a much more vocal position on the part of the public. I love getting notes and letters and phone calls from constituents. They have a pretty good sense of direction where they live in our state, and they have pretty good advice, generally, in terms of how we ought to spend the surplus. And I love to listen to what our citizens have to say about the issues of the day. I'd rather see more of that than less of that, and I would encourage, by way of ending this program, our listeners to take more of a stepped-up role in terms of contacting the offices of their legislators. Contacting our office on the issues that affect them. We are a direct manifestation of the people. We represent the hopes, desires, and aspirations of our population. And we need to provide a listening ear.

KEN VERDOIA, KUED: Governor, thank you for your time, that's all our time for today. Thank you for joining us on KUED.

Return to home page