December 15, 2005 (---Huntsman, 1st Year---)

"...this year we're able to, I think, provide more to those sometimes underfunded programs, like education, like public employees, and so I'm putting down those categories that I think deserve additional support..." -Gov. Huntsman

Reporters: (in order of appearance):

KEN VERDOIA, KUED
RICH PIATT, KSL-TV
TOM JORDAN, METRO NETWORKS
DAN BAMMES, KUER
JULIE ROSE, KCPW
LEE AUSTIN, UTAH PUBLIC RADIO
JOHN DALEY, KSL-TV
LISA RILEY ROCHE, DESERET MORNING NEWS
GLEN WARCHOL, SALT LAKE TRIBUNE

Transcript:

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

GOVERNOR HUNTSMAN: Thank you.

KEN VERDOIA, KUED: Fellow Republicans in the House of Representatives have indicated a desire to be more expansive with tax relief than you have previously indicated your willingness to consider. They're talking perhaps in the realm of $230 million of tax cuts. Rather than argue the merits of $60 million versus $230 million, I would like you to consider the impact of a $230 million tax cut on your vision of appropriate spending for state agencies and programs. Would it undermine what you intend to do?

GOVERNOR HUNTSMAN: Well, I've put forward a budget that I think does reflect the interests of the state. I think we've had programs that have been underfunded for years. The whole promise of my campaign was to build an economic base that would allow us to basically fund and finance the basic building blocks of society that's education, that's transportation, that is shoring up our mobile infrastructure and our intellectual infrastructure. And this year we're able to, I think, provide more to those sometimes underfunded programs, like education, like public employees, and so I'm putting down those categories that I think deserve additional support this year. We can afford to do it. We're not always so blessed. This year we can afford to do it, and I think we need to take advantage of the economic circumstances.

I've made available $60 million that I think should go back in the form of tax relief by way of reviewing the income tax, redoing it, and looking at taking the sales tax off of food. I think for all Utahns that would be a very, very good thing, while at the same time building and supporting programs that will make us a better, stronger state, and better prepare our youth for the world that they're about to step into.

I'm very proud of the budget, I think it reflects reality. It is in line with a state that is growing at three times the national average. We forget that sometimes. We're a booming state right now, three times the national average, and we need to make sure that we are ahead of the curve as opposed to behind in allowing our citizenry to live and to work and to compete and to be educated in a state that we all believe should be world class.

RICH PIATT, KSL-TV: Some of the legislators remember a different reality back in 2001 when the economy tanked, and they have real concerns about such a large budget, all of practically I know you leave a little bit of wiggle room there but practically all of the surplus is allocated in your budget. Do you anticipate that to be a significant fight next year during the legislature?

GOVERNOR HUNTSMAN: We have a rainy day fund that is going to be record high, at $191 million. We have a transportation allocation that, from the general fund, is the largest ever in the history of our state. I think we very prudently approached the financing of the state, and support for programs. I'm one who believes that we have all kinds of infrastructure to support in this state. Some of it is roads, some of it is schools, and you have things that are in between. And it is up to the governor, that's what I'm supposed to do, I think, as governor, is to identify those areas that need to be improved, if we can afford to do it.

This year we can afford to do it. We're not always going to be in such a situation, and I've reflected those priorities in the budget. I'm very, very proud of the budget, and I think the house and I think the senate will put forth their versions. Sometimes they'll agree on my priorities and sometimes they won't. I think that is our system playing out as it should.

RICH PIATT, KSL-TV: You approached this as a diplomat. You acknowledged that there's always wiggle room, that there's always room for give and take during the process. But my impression of some of the house leadership is that they're looking at this as a tough business decision, and they're willing to really push for this, and in particular the issue of bonding for roads when they feel like we can't afford to just invest in those and pay cash for them. What about those differences?

GOVERNOR HUNTSMAN: That's a very healthy thing that they would bring their attitude to the table, and I will bring my set of priorities to the table. I was elected by all of the people in this state. The legislators were elected by their constituencies in their individual districts. It's not surprising that we might bring a different world view to the table. I sometimes negotiate with the first lady, Mary Kaye, over what we're going to have for dinner. Most things in life are a negotiation. I don't think that's unhealthy or reflects a breakdown in our system. I think it actually speaks well of our system and the way it's operating.

TOM JORDAN, METRO NETWORKS: In the last week we've had two news conferences that dealt with the real panic setting in among the agencies that deal with the poor in the state. Low income housing and the sort of heavy hitters for the people at the bottom end, the YWCA and the Road Home and the food bank, and people at that level of. All of them are very much concerned about the federal budget cuts that have passed the house, and haven't yet passed the senate. We stepped up last year and covered a lot of this kind of thing from the state level. What do you see happening if the current round of cuts in the house, federally, are suddenly implemented locally and we suddenly have an awful lot of people suddenly thrown really on to public assistance, where we're sort of making a go of weighing that now.

GOVERNOR HUNTSMAN: Well, you talk about a negotiation. You're going to have a lot of governors who are very, very concerned about this at the federal level. And most governors who have already gone on record opposing the way in which many of these cuts are being made, or the costs are being foisted upon the states. You look at our budget this year, and many of the increases are in Medicaid, for example. They're inflationary increases, they're enrollment increases. That's likely to continue.

This year we can afford to embrace some of them, but there will be some years where that will be a very difficult thing to do. And I suspect that the governor's association will stand tall in trying to keep federal expenditures in the federal category, as opposed to having them foisted on to the states. This is going to be an ongoing process. It is probably going to live well beyond my term as governor.

DAN BAMMES, KUER: Governor, last Friday you expressed the idea that the money that you've allocated to reduce the waiting list for the Division of Services for People with Disabilities would help avoid further litigation on this issue. The plaintiffs in the case assure me it will not. That that case is scheduled to go to trial in January, and will continue unless something more dramatic happens with the budget. Are you prepared to address that now, or are you ready to see the case go to trial?

GOVERNOR HUNTSMAN: Well, I'm prepared to address that as we move into the legislative session. I have been provided with legal advice, such that what we have allocated in our budget will keep us out of legal jeopardy, and will allow for maintenance funding of this waiting list. I'd like very much to address this waiting list issue. I know there are people suffering as a result of this. I hear about it, I read about it, it's an issue that is on a lot of people's minds. We have put forth a number, I believe it's a million and a half dollars, I think there are seven or eight million dollars total that would be required to fund it completely. I don't know where this number will be at the end of the legislative session, but suffice it to say for me it is an issue, we'll continue to review it, and do what needs to do be done to say out of legal jeopardy.

JULIE ROSE, KCPW: Governor, what about the minimum wage? Your working group on living wage/minimum wage has come to some conclusions that we could maybe take some people off of reliance on the state by increasing the minimum wage. And there will be an effort in the legislative session to increase it to seven or maybe more dollars an hour. Are you planning to support that at this point?

GOVERNOR HUNTSMAN: I'm going to leave some of that guidance and advice to the working group led by Pamela Atkinson. They're still working on the issue. They will have something to say about it at the right time. I think we're finding that overall economic uplift, higher paying jobs in our state, is probably the best remedy. We're moving as quickly as we can in that direction. I'm very proud of the economic progress so far. But I'm going to work with the stakeholders who have been part of this group, and look very carefully at what the recommendations are that they bring forward.

KEN VERDOIA, KUED: Governor, we're going to turn our attention now to Logan and a question from our colleague, Lee Austin in Logan. Lee?

LEE AUSTIN, UTAH PUBLIC RADIO: Thank you. There have been a couple of developments related to Private Fuel Storage's proposal to store radioactive waste on the Goshute property. Does that look very encouraging to you? Do you think the state's fight against that proposal has taken a few big steps forward?

GOVERNOR HUNTSMAN: Lee, I'm very encouraged by where we stand currently as it relates to PFS. In fact I've never been more encouraged. I think legislatively we're in a very strong position, and even as we speak I know some last minute measures are being deliberated, that might be part of the defense authorization bill. We don't know. We'll just have to wait and see. But beyond that, I think the broader environment in which PFS finds themselves is a state that essentially is a united front against them, and I think they're probably discovering pretty quickly that they found themselves in a relatively hostile environment here in Utah as it relates to their overall business plans. And I believe that eventually that will cause them to die of their own weight.

Moreover, I think that Senator Reid's legislation support it, cosponsored by Senator Bennett, is likely to move forward. I think it was released yesterday, and I think that is going to gain some momentum. And that would change nuclear storage policy going forward for the United States, and would bring about such sweeping changes that it would essentially render any kind of PFS plan irrelevant or obsolete.

JOHN DALEY, KSL-TV: Governor, would you like to see both Senator Reid and Bennett's plan, and Representative Bishop's proposal as well, both those things going forward they both sort of attack the issue in a different way would you prefer to see both, or one over the other, or what's your thinking on that?

GOVERNOR HUNTSMAN: It's a very good question. I would of course be supportive of Congressman Bishop's legislation going forward on wilderness. I think there is some merit to consider the wilderness, not to mention the national security implications as it relates to the Utah test and training range, not to mention the fact that it would create essentially a moat, thereby rendering virtually impossible the trans shipment of any waste into the Goshute reservation. I think that would be a very good outcome, and it would likely be effective immediately.
Senator Reid's legislation is really a longer term. And I'm pleased to hear that Secretary Baudman, the secretary of energy, who is a nuclear physicist himself, has looked at Yucca, for example, and I think he has re-evaluated on behalf of the administration what the longer term plan ought to be. And I think increasingly there will be serious consideration given to the Reid legislation.

So one in my mind is a short term, immediate fix that would be very good for the state. The other is a longer term fix that I think is good for the United States generally.

JULIE ROSE, KCPW: Envirocare of Utah, also speaking of radioactive waste, they are looking to expand their, double almost, their waste disposal site in the west desert. And you have indicated that you're not supportive of that. They need your support and the legislature's approval. They're still moving ahead with their permit process, perhaps hoping that you'll change your mind. Is that possible that you could decide otherwise?

GOVERNOR HUNTSMAN: I think I've already stated loud and clear my answer to that question. I promised the people of this state during my campaign that we would not let ourselves become a dumping ground. It has everything to do with our sovereignty, our image, and our reputation. Things on which you cannot put a dollar value. Moreover, at a time when we're fighting the PFS issue, I don't think it does our state any good, tactically or strategically, to be talking about expanding waste sites.

DAN BAMMES, KUER: Governor, the Utah Supreme Court has now taken up the issue of retirement sick leave conversions for state employees. There were a number of state employees who felt like they might have to file for retirement by this Friday to take advantage of that, and now that issue is on hold. But how are you planning, in your budget process, to deal with this, however the lawsuit comes out? Do you think this might be more costly than you planned if a large number of state employees retire?

GOVERNOR HUNTSMAN: It's hard to calibrate, Dan, what the financial implications are going to be. I don't know whether it's going to be a month or whether it's going to be six months or whether it's going to be a year. The chief justice has spoken, and now the Supreme Court in total will review that, and I just don't know what the timing is. Suffice it to say, it is in a legal process, we should let that process play out. We'll then look at the numbers that support that process ongoing, and deal with them realistically. This is, you know, this is the judiciary doing what the judiciary ought to be doing. And I support that process.

TOM JORDAN, METRO NETWORKS: Governor, we are sort of at an end of your first year. Do you carry around your laminated card of economic goals?

GOVERNOR HUNTSMAN: Two of them.

TOM JORDAN, METRO NETWORKS: And I was wondering if you could just sort of look at, do you have economic clusters, and this whole collection of ideas that you were starting with? What's worked and what hasn't worked, and what do you need to focus on?

GOVERNOR HUNTSMAN: Well, it's a good question. I do keep a card that helps me remember what our goals and objectives are on the whole economic development front, and then on the other side it really lists our successes. You need to remind yourself now and again that there are successes that go along with programs and plans.

We are seeing some very good evidence of our economic development program. The idea that we are working with higher education, that we are working with UCATS, that we're working with our high technology community, that we're working with manufacturers, that we're beginning to identify those economic clusters in the state in which we are extraordinarily competitive.

We can't be all things to all people, but in certain economic areas we can be world class. And whether they be in the area of genomics, or medical devices and equipment, or health sciences, or aerospace design and engineering, or in information related technologies, or in energy related areas, which I think, for this state, will be extremely important for the next generation or two.

I think there is so much in the way of deliberation going on in terms of finding out better ways to focus our energies, that word is getting out about a state that is really taking competitiveness and economic development seriously. We're bringing more capital into the state for nascent start up entrepreneurial companies, which absolutely needs to take place. We're bringing more of the infrastructure into the state, the financial services sector, that need to support economic development, and evidenced by the Fast Company Magazine front page story last month in which we were recognized as one of the ten best destinations for business in the country, and in the entire world one of the top 15. We were called, on the front page, a gold mine for venture capital. And word is getting out there, and I think that's a very important thing to note about the trajectory we're on from an economic development standpoint.

RICH PIATT, KSL-TV: Governor, recently there was a survey done about the religious nature of the state, and that some viewed the LDS influence as something that gave them pause. Are you finding when you're talking to businesses, to people who are from around the country, and your staff as well, that that is something that you have to deal with, that you have to explain to them and try to get them to come here so they can see for themselves what Utah has to offer?

GOVERNOR HUNTSMAN: I don't think I've taken 30 seconds in any conversation I've had with a chief executive trying to explain the religious aspects of the state. All states have their peculiarities and their idiosyncrasies, and if you do on any state in America, take Nevada, take New Jersey, take Mississippi or Alabama, you're bound to come up with a description that some are not going to be completely happy with. And we're no different as a state.

But I think the level of interest that is now being shown in our state, and the number of knocks we're getting upon our door, I think, reflect the reality in the marketplace, and that is we're a very hot market. People are interested in Utah. They like our people, our work force is second to none, a high education level, technical literacy, probably most important a wonderful quality of life that people find very attractive.

RICH PIATT, KSL-TV: You mentioned that economic, long term economic development efforts are moving forward. Lately what we've been seeing are a shopping mall in Lehi that's announced, an Ikea in Draper, a new Costco, perhaps, in Bountiful, and the warehouse out west, and a lot of people feeling like we need less places to actually spend money and more places to earn money, Utahns need that. Do you take those businesses coming here as a sign that things are taking off, or are you concerned that we're over burdened by retail outlets, and not enough by the real kind of industry.

GOVERNOR HUNTSMAN: We need all of the above. I don't count the retail outlets as economic development. I don't have them on my card in the win category. I have the Adam Aircrafts, the Craftmade, and the energy development that has taken place in the eastern part of our state, and the companies that are expanding in Research Park that I've been to visit most recently. And the Boeing Aircraft center that's out by the airport. These are part of the manufacturing sector in which they are creating wealth and expanding our economic base in the Adam Smith sense.

We will have a retail sector, we're a booming population base, we're growing at three times the national average. We have last year a 3.2 percent growth in our population, 75,000 new people in our state. Half of that number moved into the state, the other half born into the state. And that would suggest that there's going to be a lot more in the way of consumer activity, retail activity, therefore not surprising that you get an Ikea or a Costco or two that tend to crop up. I think that's perfectly in line with the pace at which we are growing as a state.

LISA RILEY ROCHE, DESERET MORNING NEWS: Governor, the state senator has come up with legislation to ban the gay straight alliances that many schools in Utah have, to help gay students integrate into the school and work with their straight fellow students. Is that something you think needs action? Do you think that the state needs to step in and take these alliances out of the public schools, as this particular state senator is trying to do?

GOVERNOR HUNTSMAN: I haven't read about this particular case, to say nothing of the proposed legislation. But I do believe there is a case that has gone before us, as I recall and I'm just pulling this from my memory file and that was East High. And I think that case was taken to the Tenth Circuit, and I think it was deliberated and finalized. And I do believe that these are issues that should be taken care of at the localest of levels, parents dealing with kids, and parents dealing with school boards, if they have a concern. I'm not sure whether this necessarily should be handled at the state level.

LISA RILEY ROCHE, DESERET MORNING NEWS: Is that something, though, you personally are comfortable with having in Utah public schools, these gay straight alliances?

GOVERNOR HUNTSMAN: That's something for parents to decide. That's something for school boards to decide.

JOHN DALEY, KSL-TV: Governor, on the economic development and energy that you were talking about earlier, California's been raising red flags about coal burning plants in Utah, and there's a committee, a legislative committee that's been discussing whether the state should have a renewable portfolio. Would you support legislation that called for that, and would you like to see Utah investing more in renewable?

GOVERNOR HUNTSMAN: I would. I'm very intrigued and interested in renewable forms of energy. Laura Nelson is putting together an energy strategy as a state, something we've never had before, and I'm very excited to be able to unfurl that, probably as we move into next year. And part of that will cover renewables.

 

In a state that has a lot of wind, particularly in the eastern part of our state, that has water, that has geothermal capabilities, that has biomass capabilities, we have it all. The rate limiting factor right now is infrastructure, and that is, how do you distribute the energy? We don't have that now. I think a western system that maybe comes out of Wyoming to California that provides more in the way of infrastructure, grid, if you will. Grid infrastructure is something that we will need in order to make renewables a reality.

I think we will move inexorably in the direction of renewables. The question becomes, how quickly will that take place, and what infrastructure will we have in order to accommodate renewable possibilities?

DAN BAMMES, KUER: Governor, your economic development strategy has seen some successes, particularly in Utah's urban centers, the Wasatch Front, or Washington County, or someplace like that. But if you live in Circleville or Randolph or Blanding, what does your strategy offer for those parts of the state where the infrastructure isn't in place to support the kind of industries you're talking about?

GOVERNOR HUNTSMAN: Well, manufacturing possibilities, natural resource possibilities. One of the things that will be very, very important to our rural areas, I mean when we're discovering oil in Sevier and when we have natural gas and tar sands and shale in traditionally depressed parts of our state, these are things that will be tremendously important in the years to come that will probably provide some real economic stimulus to traditionally depressed towns in this state.

So if you combine light manufacturing that we're going to see more of, manufacturers who come into the state that just don't want to buy expensive land in the greater Wasatch area, would rather do it in more rural areas, you'll naturally see more of that. Combined with the energy sector, which is taking off like never before, even more so than, I think, before the synfuel days of 1970s and early '80s, I think that's a kind of stimulus that will be very, very good for our rural areas.

GLEN WARCHOL, SALT LAKE TRIBUNE: Governor Huntsman, you're reaching the end of your first year, and you've got your first real budget that you're putting before the legislature. Is this going to be an acid test of your administration? You came in as kind of an outsider with a different philosophy of government, than perhaps some governors might have, and you are going to present your blueprint for the state's budget to the legislature. Can we judge you by how well this is received, and how well you do in getting your ideas and philosophies across?

GOVERNOR HUNTSMAN: I think that's one measure of success. A budget is a very important document in the sense that it is a reflection of our priorities, and our willingness, therefore, to assign dollar amounts to these priorities. And when you find that our teachers and our public schools come out on top in our budget, highest ever in the history of our state in terms of what we're allocating, that transportation comes out on top, and that something like USTAR, the university research and technology initiative, would come out on top, those do, in fact, reflect my priorities, and those are the things I'm going to fight for. Because I think longer term, long after I'm gone, these are the pillars of society that are going to matter most to my kids and my grandkids. And if we fail in these fundamentally important areas, then we have failed society more broadly. So I feel it incumbent upon my administration to stand tall on some of these critically important core issues, as I would call them. So yes, they are a reflection of what we stand for, what we're going to fight for, and what I think we should be measured by.

KEN VERDOIA, KUED: Governor, we try to reserve time at the end of the program for thoughts of the season, and unfortunately the press of issues has taken all our time away from us. But on behalf of the Utah press corps, we wish you and your family a wonderful holiday season, best wishes for the new year, and events that we will cover, indeed.

GOVERNOR HUNTSMAN: Thank you.

KEN VERDOIA, KUED: And until next month, I'm Ken Verdoia, thanks for joining us, good night.

Return to home page