Saturday, January 29, 2005

Budget Skirmish

A House/Governor budget skirmish grabs the headline in both the Tribune and the D-News. Both articles accurately capture the essence of the issue -- whether Utah should pay for transportation needs with cash or credit. The House position is that Utah piled on lots of debt in the recent downturn and, now, with a surplus, it should not pile on more debt. Governor Huntsman seems to prefer credit, so that other projects can be better funded. Perhaps he figures spending in those other areas will spur economic activity sufficient to warrant the added indebtedness.

Matt Canham of the Trib reports:

Huntsman has no intention of getting pushed aside by the legislative branch. He plans to "fight for the success" of his other budget priorities and calls for a more drawn out and creative method of paying for new roads. House Majority Whip Stephen Urquhart said that only leaves three options: ignore the state's transportation needs, borrow money or raise taxes.

If we can't muster the discipline to avoid the State's credit card in good times like these, I question our fiscal discipline. This would not bode well for the future. (See my "Budgeting Basics" entry of 1/27/05). Also, if we don't now dedicate an increased funding stream toward the billions of dollars we know we will face in future transportation costs, no one should claim surprise or exigency when we raise taxes in the next 4 years.

These are policy questions. This skirmish merely reflects two parts of government working on complex issues -- and the Senate hasn't even weighed in yet with its opinions. As the D-News states:

Senate President John Valentine, R-Orem, who spoke with both Curtis and the governor Friday about the issue, said he didn't sense "any thaw in the communications channels" between the governor and lawmakers.

Every time I meet with Governor Huntsman, I am increasingly impressed with his skills and vision. In the end, he might convince me and my colleagues that his vision on this issue is best. I don't think so; but who knows? In any event, I'm confident that we'll figure it out. The legislature and Governor are serious about moving the State forward, and I'm optimistic that we'll do just that.

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