November 13, 2003

But we're always concerned that we look seriously on both sides of an issue, and had I been there, and in retrospect, we would have talked to the county officials, and the AG.

Reporters (in order of appearance):

KEN VERDOIA, KUED Channel 7
DAN BAMMES, KUER Radio
JANICE PERRY GULLY, KCPW Radio
RICH PIATT, KSL-TV Channel 5
TOM JORDAN, Metro Networks
REBECCA WALSH, Salt Lake Tribune

Transcript:

KEN VERDOIA, KUED: Governor, it is indeed a pleasure to welcome you to your first televised news conference at KUED. And I begin with a very difficult question, where Utah Attorney General Mark Shurtleff has sent a letter to the Bureau of Land Management urging them to disregard a request from you and former Governor Leavitt to hold in abeyance, or shelve, if you will, 15 potential drilling sites near the White River area of eastern Utah. He says that he was not consulted prior to the sending of that letter, rural counties were left out of the process, and rural elected officials are saying that you and Governor Leavitt have broken faith with them in this process. I'd like you to respond to that letter, and I'd like you to respond to why you think it's important to take the step you did take.

GOVERNOR WALKER: Quite frankly, there are 423 proposed oil and gas drillings in that area. We took the step because we looked at the total number, and felt that 15 deserved a further look. It was a recommendation. I think that we were looking at it strictly as the White River as a destination recreational spot, and really deserved a second look at whether we wanted drilling in that particular area. We didn't question the remainder. So out of the 423, we're just saying, please take a second look at those 15. And I think the attorney general was looking at recreation more in a legal term. We were looking at it purely in the common recreation destination sense. It was purely a recommendation, it didn't dictate a final decision. But we're always concerned that we look seriously on both sides of an issue, and had I been there, and in retrospect, we would have talked to the county officials, and the AG. But we just were sending a letter of recommendation, rather than dictation, or dictatorial letter, and it was meant in that spirit, and I still think they ought to look at the 15, inasmuch as there are so many others. You take 15 away from 423, and you've got a lot of possibilities.

DAN BAMMES, KUER: Governor, could these 15 wells that you've asked them to take another look at in this letter possibly be described as a political offering to the outdoor retailers, to show them that at least you are on their side in this area?

GOVERNOR WALKER: Well, it isn't just to the outdoor retailers. I think we want Utah to become an outdoor recreational headquarters for the whole world. And it behooves us to seriously look at every area where there's recreational opportunities. And I would have looked at it seriously even if the outdoor retailers hadn't questioned it. I think- - We have to preserve recreational opportunities, as well as provide opportunities to utilize our natural resources. And I think that it doesn't hurt to take a second look when they're in an area like the White River corridor.

JANICE PERRY GULLY, KCPW: Governor, in the Desolation Canyon, Book Cliffs area, the Bush administration is going to be offering up some more oil and gas leases for sale. Will the governor's office weigh in on that for the same reasons? Because that, especially Desolation Canyon, is a recreational destination for white water rafters.

GOVERNOR WALKER: We'll have to look at it very carefully. All of you that have been in Desolation Canyon, it's an outstanding recreational area. I think the question is, will the drilling affect the outdoor qualities in terms of recreation and enjoyment by the people of recreational opportunities? It's hard to classify the whole Book Cliffs area, because it's a huge area. There are some areas in the Book Cliffs that I don't think drilling would really be detrimental. But there are other areas, like the area you mentioned, Desolation Canyon, where I think it would. So again, it's hard to give a stock answer when you're talking about a region as large as the Book Cliffs.

JANICE PERRY GULLY, KCPW: Is the governor's office looking at that?

GOVERNOR WALKER: We're- - We will look at every proposal. Just as we looked at this proposal for the 423. And if we have recommendations, I won't hesitate to make them.

TOM JORDAN, Metro Networks: Governor, this would seem to play to the larger issue of the problem of rural economy in general. Because I think the counties are concerned that some way or other their ability to survive economically is based on this kind of issue. Are you trying to take a longer view of that and saying recreation may be a more viable economy in the future?

GOVERNOR WALKER: I'm saying that I think they can be, economic development in terms of the natural resources, can be compatible with recreational opportunities. I certainly have been concerned a long time with rural economic concerns, because it's hard to get quality jobs in many of the rural areas. I can remember going down to Piute County, very concerned about their tax base and their unemployment, clear back when I was over community development for the state. And I recall going down there and looking up and finding five different tax-paying businesses. And when I got down there a rug company was thinking of moving to Canada, one of the gas stations was closed, and lo and behold, they had just decided the motel that I looked at was really in Sevier County and not Piute. They had some real needs. Now, I'm looking at one county, but you can duplicate some of those experiences. Of course this was clear back in the late '80s, but in many areas we haven't seen great growth. We keep thinking that smart sites and technology will help. And all these things will help. But I will work extremely hard to help the counties solve their problems.

REBECCA WALSH, Salt Lake Tribune: Governor, on another environmental issue, do you support pursuing Legacy Highway?

GOVERNOR WALKER: I support- - Yes, I do. I think that they're working hard. The great thing, they're getting a lot of public input on it. I think that we'll have a decision come summer. Of course it'll take a long time to get the bids out, and so I'm hoping that people don't expect it to happen once that decision's made. I think you just have some overwhelming problems with transportation going from Salt Lake County through Davis County, at least to Farmington. And I- - we will see commuter rail, and we're working hard on that, we will see light rail, but also we need an alternative to I-15. And how many- - You know, if you go out there and look at the wetlands, it's hard to find wetlands in the track where Legacy goes. And my belief is the state will be responsible for improving along the parkway, improving wetlands, and the state will be far better off because of the increased number of viable wetlands. And I'm hoping, too, that that becomes somewhat of a boundary for western development in Davis County. I'm hoping that we can contain it east of the Legacy, primarily.

RICH PIATT, KSL-TV: Governor, regarding the Frenauld and Niagara radioactive waste, you've taken a firm stand that no hotter waste should come to Utah, and there's some debate about whether what we're talking about in Ohio and Niagara is, in fact, hotter. When I talked to Congressman Bishop's office this week, their response to your firm stand was, "Well, we just haven't had a chance to talk to the governor," implying that perhaps you don't fully understand what we're talking about. What's your response to their assertion that perhaps you can be convinced that this waste is acceptable to Utah?

GOVERNOR WALKER: Quite frankly, I think you have to look at how hot it is, and also the half life. But I'll leave that up to the scientists to determine. I just know I don't want any hotter radioactivity, nuclear waste brought into our state than we now accept. I don't think the public wants it, I'm concerned about the image of Utah, I'm concerned about, while they say, "Oh, we can safely store it," I'm concerned about how accurate they can be. You know, we've had a lot of experiences in Utah of when they thought things were safe. Look at the atomic testing. Now I don't want to put it in that category. I don't want to scare people. I feel that they probably can figure out a way to make it safe. I think it'll be very costly. But I don't want any hotter than we now accept. And I'm going to stand by it.

RICH PIATT, KSL-TV: There are severe concerns about what you mentioned, the image of Utah- -

GOVERNOR WALKER: Yes- -

RICH PIATT, KSL-TV: Regardless of how hot it is, the fact is, Utah will get that image if it does come through.

GOVERNOR WALKER: Well, and that's my concern. And so I'm going to- - I don't think anybody's going to move me off of my position. I can't imagine it. But you know, I'm open. I'm willing to listen and learn. But I'm very firm that I don't want to go any hotter than A. I don't want to get into the B and C, and I certainly don't want the spent fuel rods. I just- - We've got so many remarkable areas that we want visitors to come and visit. The red rock wonders and the mountains, and the skiing. We don't want an image in Utah of being, that you can send your hot nuclear waste to Utah, they'll accept it. So I'm going to fight it. There's no question.

KEN VERDOIA, KUED: Governor, you've been involved in politics for a long time.

GOVERNOR WALKER: Right.

KEN VERDOIA, KUED: You know an end run when you see one. Were the attempts to get this through without state involvement, almost secretive dealings in Washington, D.C., a political end run from your standpoint?

GOVERNOR WALKER: I won't call it a political end run. I've been along- - around the legislative process long enough to know that there are a lot of different tactics that are legitimately used to get legislation through. So I don't put it in the category of an end run. I am disappointed that I didn't know about it sooner. I read it in the paper, as many of you did. That's how I found out about it. I'd had a short briefing that it may occur, but I was told it was probably months away. And so I was surprised when I read it in the paper. I think, in the future, we'll develop better communications.

DAN BAMMES, KUER: Does this represent a split, a potential conflict between the governor's office and the republican members of our congressional delegation?

GOVERNOR WALKER: I wouldn't call it a split. We're all different individuals. And we all have our different opinions on issues. You wouldn't want us all to go lock step. I think it's an area where we need to communicate, I think it's an area where we need to look at issues, but I can't guarantee you that we'll always agree on every issue.

REBECCA WALSH, Salt Lake Tribune: Who briefed you? Was it a member of the congressional delegation, or someone else?

GOVERNOR WALKER: No, just as we were going over issues in the future, it was maybe a two-minute issue that the Department of Energy was looking at it in the future. So it was a very, just overall quick issue, along with a hundred other issues. So it- - I say briefing, it was a very short briefing, and I've learned a great deal more about it in the last two days, believe me.

TOM JORDAN, Metro Networks: Is our status as an agreement state, perhaps by March, our ace in the hole?

GOVERNOR WALKER: Well, I look at it as it's somewhat of an ace in the hole. I think that the issue of primacy belonging to the state will make a big difference. I'm certainly hoping that it occurs by March or April. I think we then can determine our own future. But I don't think that's a cure-all. Because I think you'll find, even within the state, vastly different opinions. So it won't end the debate. We will continue to have the debate on that issue, because there is a whole range of opinions on whether we accept that. I don't think I will ever change my opinion, though, that I don't want hotter waste than we now accept.

RICH PIATT, KSL-TV: Governor, it's been one week and a day since you were inaugurated.

GOVERNOR WALKER: Yes- - right.

RICH PIATT, KSL-TV: I'm wondering if, now that you've had a chance to get a feel for the office, for I guess just a week, how important it is to you not to be seen as merely a caretaker governor for the next year and four months?

GOVERNOR WALKER: It's very important. For several reasons. There are a lot of issues out there that I really care about, and I want to see if I can help solve them, or issues that I think will make Utah a better state. So I'm going to work very hard on it. And quite frankly, being the first woman, I feel I need to make it a stepping stone for others. I don't want to be a caretaker governor. I want to demonstrate that women are capable of policy decisions and action. So I'll work very hard for the 400 days.

REBECCA WALSH, Salt Lake Tribune: Governor, back to the radioactive waste question. Governor Leavitt had a special office set up to handle the Goshute issue- -

GOVERNOR WALKER: - -right- -

REBECCA WALSH, Salt Lake Tribune: - -he had an attorney, I think, assigned and several staff. Is that office still in place in your administration?

GOVERNOR WALKER: Yes, it is, and we'll continue to work with the Goshutes. Again, we don't want the spent fuel rods in our state, and we will continue to fight it as hard as we can.

DAN BAMMES, KUER: The Employers Education Council- -

GOVERNOR WALKER: - -yes- -

DAN BAMMES, KUER: - -just this week recommended that the state not put enormous new funding into implementing competency-based education. They said a million dollars would be enough, when the state board is estimating that as much as $400 million might be needed. Where do you see that, and how hard are you planning to push competency-based education?

GOVERNOR WALKER: I'll push it very hard. I recognize that we're, perhaps we're not ready to go to the full demands of the $400 million. Obviously we can't afford it. I'm very willing to have them look at alternate plans, but I will push for some action in competency-based education. I'll work closely with the state board, and we will determine what we can do with the- - if we can find money to fund it, and we will work toward it.

DAN BAMMES, KUER: What kind of funding- -

GOVERNOR WALKER: I was amazed that they're saying that a million dollars would be enough. If you divide that among the schools, I figure it would be less than $12,000. And I'd like to give them $12,000 and send them to several schools I could mention and say, "Get everyone up to reading level with this $12,000." I might challenge them to do that. That would be a good experience for them.

TOM JORDAN, Metro Networks: This week you've been, you're right in the middle of meeting with all of your department heads on issues of budget- -

GOVERNOR WALKER: - -yes- -

TOM JORDAN, Metro Networks: - -what are you telling them, or have you heard anything surprising coming back from them?

GOVERNOR WALKER: For the last three years my duty as Lieutenant Governor, when we held the budget hearings, was sit and chant, "No money, no money, no money." We're still having the same chant. While I can see the light at the end of the tunnel, and this recession, our revenues are not showing it presently. We feel that it'll be at least an eight-month delay. And we're looking at every department, determining the absolute entities that we must fund. I think we're going to have a real challenge. We're going into this with, for example, $46 million of one-time money in last year's budget that we've got to replace. You look at health benefits. They're double digits. The amount to fund health and benefits is significant. I think we're going to have a very tight budget. I think this may be one of the hardest budget years, because we've basically used the pots of money that the legislature wisely stored away during the '90's. We've pulled money from buildings and used bonding. We've used basically the rainy day fund, which I'm very proud of, because it was the best legislation I ever carried. But we've pulled money from the tobacco trust money, we've pulled money from roads. So it's going to be a very tough budget, and I'm going to spend the next few weeks working on it, trying to determine what the priorities are, and how we can adequately meet the mandatory things of the budgetary process.

RICH PIATT, KSL-TV: Governor, when it comes to working with the legislature on the budget, or anything else for that matter, how do you see your relationship with the two bodies, as different or similar to that of Governor Leavitt?

GOVERNOR WALKER: Well, I think the fact that both- - I've been in the legislature, the lieutenant governor has been in the legislature, we have two key people on my staff that work for the legislature, I think we understand the process. And I think- - We won't agree on everything. There'll be many issues that I'm going to have to stand and hold my ground on with the legislature. But I think that understanding the legislative process, we'll probably work quite closely with them.

JANICE PERRY GULLY, KCPW: Governor, in the past, past governors, when faced with really tough budget years, have frozen state employee salaries. Are you looking at that?

GOVERNOR WALKER: Of course. We're looking at it, and quite frankly, it would be very difficult to go another year without giving any salary increases. Because this is the third year. On the other hand, when we look at what we have to put in to cover the health care benefits and retirement, it's an overwhelming number. So somewhere we've got to bring those two together and present a plan that fits into the resources available. It won't be easy.

KEN VERDOIA, KUED: Is there a temptation, in this time where you can see recovery eight months, nine months in the distance, to go with a tax increase to help shore up the spending plan, and get us into a better time?

GOVERNOR WALKER: There's always the temptation, but I realize this is an election year, and it's always tough to get tax increases in an election year. I do think, however, that, from my historic perspective, we've always underestimated a downturn in the economy, so we've always been scrambling to find revenues on a downturn, but we've always underestimated an upturn. And so I'm hoping that we have the foresight to somewhere estimate revenues in some area of reality. Of course you always have to be on the conservative side so you don't end up with shortfalls, but I do think that we're going to see an upturn, probably, if I had to give a date, it would be July of next year- -best guess.

REBECCA WALSH, Salt Lake Tribune: Governor many Democrats in the legislature have pushed to get rid of some of the sales tax exemptions that are out there. How do you feel about those proposals to gather money?

GOVERNOR WALKER: I've looked at it. Quite frankly, our whole tax structure needs looking at. Whether I dare take that on I'll tell you later.

RICH PIATT, KSL-TV: You mean taxing a service-based economy rather than a manufacturing-based economy? You're talking that drastic of a change?

GOVERNOR WALKER: I'm not talking about it today, but certainly somebody's got to take on that effort, and look at our total tax structure. Whether now is the time, I'll tell you later.

DAN BAMMES, KUER: You talked about the increases in health care spending as being one of your tougher problems. Do you see limiting the growth of programs such as Primary Care Network and CHIP in your coming budget?

GOVERNOR WALKER: We'll have to look at that very seriously. Because without any new revenues- - And again, I want to make it clear, I am not going to propose any new tax increases in the budget. I think that we're going to have to- - I have a great deal of concern about it. We've done very well with both of those programs. But they will have to stay within the budget allocated. I think they're priority items, both of them. Insurance for kids is important for low-income kids. Well, both areas are extremely important.

JANICE PERRY GULLY, KCPW: Is that a blanket "no-tax increase" statement, or was that simply for this program?

GOVERNOR WALKER: I think it would be futile for me to propose tax increases in an election year. We'll have to look at all alternatives, so I won't guarantee that there won't be some fee increases, or there may be some increases, but basically I'll have to analyze what I think I can get through the legislature, and analyze what priorities we have, and look closely at revenue sources. I think that we're going to have to look at every aspect of funding in all the departments to see if there are areas that we can still eliminate or be more efficient. But we've had, what, two or three years of budget cuts. We've cut the low branches. The easy things that we could cut, they're gone. They've been- - and so it's very tough at this point to say you're going to make a lot of additional cuts, because the easy things have disappeared. So it's going to be a very difficult year. I will look at every resource that's available to us, I'll look at seriously, at every department to see if there are areas that we've missed in being more efficient in the last two or three years, and try to put together the best budget I can.

KEN VERDOIA, KUED: Governor, we only have a few seconds left, maybe about 30 seconds for your response. For eleven years you've been in close proximity to the power of the chief executive's office, but that closeness is not the same thing as being in that lead chair. What's the most tangible reaction you've had to this one week of being the chief executive of Utah?

GOVERNOR WALKER: I think the fact that the buck stops here. You're right, for eleven years I've been involved in the budget, for eleven years I've been part of a lot of the strategy and a lot of decisions. But it is a different feel when you realize the final decision is here.

KEN VERDOIA, KUED: Governor Walker, thank you very much. A reminder that a transcript of this and every Governor's Monthly News Conference is available on line at www.uen.org courtesy of the Utah Education Network. And I might add that starting this month this news conference will be video streamed on that same website location. Join us on line, join us in the studio next month. I'm Ken Verdoia, good evening.

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