Jon Huntsman, Jr.'s Response to Utah Foundation's Questionnaire on Utah's Top Issues

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Registered voters identify Public Education as their number one issue of concern.

1) What role does public education play in shaping the future of Utah?

I was raised in a family that believed public school teachers are today’s unsung heroes.  My grandfather and great grandfather were public school educators.  I’m concerned about the plummeting morale of our public school teachers from federal and state mandates and bureaucratic classroom clutter.  For teachers to perform their role as molders and shapers of tomorrow’s minds we must allow them to do what they do best – teach.

Our public schools must meet the needs of Utah’s economic future.  In today’s economy, workers generally change jobs or careers at least three or four times throughout their working life.  Our children must be highly literate to adapt to and excel in the ever-changing demands of the marketplace.  Public education must be nimble and quick to respond to rapidly evolving industries.

We must realize that public education is the training ground for literacy and basic skills for the overwhelming majority of our state’s population now and into the future.  Therefore, everything must be done to ensure its strength and viability along with the effectiveness of our teachers.

2) Public policy debate has centered around ideas of school choice in the form of charter schools, tuition tax credits for private schooling and the creation of magnet programs focused on specific subject areas. What advantages or disadvantages do you see in implementing school choice?

Parents should be in the driver’s seat with respect to their children’s education.  As a father of six kids in public schools and a product of public education myself, I know that children approach learning differently.  We should do all we can to meet these differing educational needs through an expanded education marketplace.  Competition spurs greater efficiency and performance than do rules and regulations and providers that are not exposed to market pressures.

Naturally, in discussing choice and competition I am concerned that we not break the back of public education.  We should first implement targeted approaches focused on the most educationally needy children.  The Carson Smith Special Needs Scholarship Bill needs to be brought back and passed, including broader student categories and participation.  This provides a test for tuition tax credits to assess the true impact of education choice on Utah schools and encourages more cooperation between the private sector and public education.  

Competition is healthy, and certainly does not exclude a mutually beneficial dialogue that shares ideas, techniques, and valuable problem solving tools to improve the education experience for Utah’s children.  Failure to attempt improvement in education through market forces means that we are not striving to improve our children’s opportunities for learning.

As Governor, my education philosophy is simple – put the needs of the child first.  We should be open to new ideas and possibilities including best practices for education that might exist elsewhere.  If an idea will improve education for Utah kids, without harming public schools, every effort will be made to implement it.

a. How much choice should Utahns have - are charter schools and inter-district transfers enough or should the state adopt a tuition tax credit or some other solution?

While charter schools and inter-district transfers are desirable options, they do not offer enough choices to parents and students.  Indeed, we need to review our charter school and inter-school transfer offerings to ensure that parents are driving educational choice and that these options offer a competitive alternative to private schools.  We also need to examine why some charter schools are successful and others are not.

However, since no school meets every student’s needs, I believe that greater choice and mobility through vouchers or tuition tax credits will serve to improve the way education is delivered. We must begin serious efforts at providing school choice focused initially on special needs students who are the most challenging to teach, require the greatest resources and are not currently able to seek alternatives or cannot afford an alternative.  

In school choice efforts our goal is not to siphon off the best students, but to focus efforts on those children who present special challenges to teachers and parents alike.  These targeted tuition-tax credits would be designed to include enough demand to stimulate supply, which, over time, would prove the economics – positively, or negatively -- on which we could base longer term and more broadly based policy decisions.

b. How do you address concerns of parents in rural areas that they will not have access to education alternatives?

Rural education alternatives are a unique challenge.  However, I believe that where financial incentives are provided, education alternatives will develop.  Moreover, technology provides distance-learning alternatives that are compelling and provide excellent educational opportunities for public, private and home-schooled children.  With rural education in mind, we can also do more as a state to render support for home-schooling endeavors.

3) Utah dedicates all of the state's income tax revenue to fund public education, yet because of the large percentage of children in the state, per-pupil funding is the lowest in the nation. Utah is also anticipating a large influx of new students over the next ten years.

a. In your view, is the low per-pupil funding a concern? Why or why not?

Low per-pupil funding will always be a concern but this must be put in perspective given Utah’s unique demographics, which will make our funding challenge unlikely to change.  Utah has the highest ratio of school-aged children to adults in the nation.  We also have one of the lowest per capita incomes.  The result is that Utah spends among the lowest in per pupil funding but among the highest when viewed as a percentage of income.  Our educational problems will not be addressed by focusing on funding ratios at either end of the spectrum but rather by focusing on what we are getting for our education spending.  This can be done through outcome-based measurements such as a K-3 literacy based program where entering 4th graders objectively demonstrate performance at grade level.

b. If so, what solutions would you offer for public education funding?

Improved education performance and funding are vital to the future of our children and our economy.  It is difficult to separate the idea of a world-class education from the goal of a world-class economy – each is dependent on the other.  I submit that my economic plan will be a boon to education.  Its core theme is that the more high quality, long term, high paying companies Utah nurtures, attracts and retains, the larger the tax base from which Utah schools can draw.  Education funding and performance are also about setting priorities, which will be the most important in my administration.

However, new, creative funding sources must also constantly be sought after.  I believe we should be more aggressive in attracting private dollars to public schools.  In Salt Lake City, for example, each school raises about $50,000 each year in additional funding.  Clubs, school community councils, PTA groups, businesses and charitable endowments could help in this endeavor.  Applying successful higher education fund raising methods to public education would enhance this effort.   Arizona is a good example of where private sector fundraising has greatly benefited public education.

We must also look constantly at finding greater efficiencies in the administration of education.  Utah already has one of the best administrator to student ratios in the nation, but I believe more can be done.  For example, combine the purchasing power and other non-teaching functions of education while at the same time pushing education decision-making to the very lowest level – parents, teachers and principals.

We must also ensure that our school trust lands are properly administered and invested so that in the future these lands may provide greater support to our schools.  I support the goals of our current trust land managers, which include emphasizing greater mineral development, ensuring receipt of fair market value in sales and leases, and working to exchange lands subject to federal development restrictions with lands that have greater economic potential.

Finally, and perhaps most potentially significant, Utah should pursue the APPLE Initiative, which seeks to create a western states trust fund for public education as compensation for our federally owned lands. 

4) Survey respondents listed "teacher quality" as the education issue about which they are most concerned.

a. What solutions or programs would you offer to improve the quality of Utah's teachers?

Teacher compensation must constantly be assessed.  Schools from the Las Vegas area recruit heavily in Utah and we must be competitive with what our competitors can and do offer.  I also support providing greater incentives for our teachers who are just starting out as a means of attracting the best and brightest new teachers.  We must also review our programs for encouraging our teachers in continuing education and obtaining advanced degrees including assessment of financial incentives for continuing education that directly leads to improved learning.

Successful teachers and administrators should be consistently recognized for their achievements -- both within education and to the public at large.   Our family has been greatly involved in providing recognition through the annual Huntsman Awards for Excellence in Education.  The mission statement for these awards is “To recognize, inspire and reward the best teachers, school administrators and volunteers in Utah for continually seeking ways to improve the quality of education in our public school system.”  In 2004, 10 educators and school volunteers each received a $10,000 check for their dedicated service to Utah’s children.  It would be wonderful if we could expand such efforts throughout the state.

We must also remove impediments to change and innovation and empower parents, teachers and principles.  We cannot require greater accountability without giving our local decision makers the flexibility to adapt to the unique challenges of their respective classrooms and children.  Our school principles should be treated like CEOs – with the authority, incentives and accountability to achieve improved and effective learning and the ability to respond to the unique needs and demands of parents, students and teachers in their schools.

Teacher quality can also be improved through better accumulation and dissemination of “best practices.”  At most schools the sharing of ideas is limited to specific disciplines, the school or the district.  We must provide more opportunities for sharing such practices across the State and across disciplines.   In addition, many of our best practices are found in the gifted student and special needs programs.  These practices should be made available for all teachers for application in their classrooms.

Increasing partnerships between education and the business community would also be beneficial.  The private sector has developed and continues to develop practices and methods applicable to education, which can be shared with educators and parents.  Moreover, private partnerships may be particularly helpful in developing strategies for teacher continuing education and adult learning needs.

b. Finding qualified teachers is a particular challenge in rural areas. What would you do to address rural residents' concerns?

Economic development of rural Utah is most critical in attracting quality teachers.  This will draw not only a greater pool of qualified teachers, it will also draw entrepreneurs, professionals and others desiring to enjoy the quality of life in rural Utah.

5) Do you feel Utah's curriculum taught to students has weaknesses? If so, what are they and how would you address them?

We must focus education efforts on basic literacy by the 3rd  grade.  Students performing at level in the 3rd grade find greater success as they proceed through the years. On the other hand, those who fail to meet literacy standards by this time generally have a hard time catching up.  Our school curriculum and funding should be prioritized to emphasize necessary literacy standards before its too late.

Also, because we are overly tested, there is a tendency “to teach to the test” rather than breaking out beyond the core subject matter.

In addition, I believe it is imperative to continually assess our curriculum in accordance with the needs of our business community – including the creation of specialized curriculum permitting students seeking such specialization to acquire marketable skills that would be useful immediately upon graduation.  Such review and implementation will better prepare our children for the high quality jobs we are seeking to nurture, attract and retain in Utah.  It will also help such employers in knowing that Utah public education is a reliable source of well-educated and highly skilled employees prepared for the new economy.

6) Through the No Child Left Behind Act, future federal funding will be tied to improvements in Utah students' test scores. Please briefly share your thoughts on the debate surrounding No Child Left Behind.

Our schools must be accountable for the success of our students.  However, No Child Left Behind is a step in the wrong direction.  Parents, teachers, and schools should have the greatest flexibility possible in addressing and responding to the educational needs of our children.  Accountability without empowerment is meaningless.

7) Finally, please share briefly your own experiences with the public schools and how those experiences have shaped your policy positions on education.

As mentioned above, I come from a family of public educators and know the value of our system of public education.  All six of our children are involved in public education.  We live it on a daily basis.  In addition, for 12 years my family has supported the Huntsman Awards for Excellence in Education, which strives to recognize outstanding teachers, administrators and volunteers.  This has given me a greater appreciation for the remarkable talent that exists in Utah and how with a small amount of private initiative we can make it even better.

Growing up in public schools as well as observing the experiences of my children, I have come to believe that children do not all respond to the same teaching environment.  Truly one size does not fit all.  That is why I am committed to policies aimed at creating a greater variety of teaching methods and opportunities as well as strengthening the ability of parents to choose the type of learning structure best suited for their children’s needs.  We must do more to untie the hands of our teachers and let them teach, provide more meaningful methods of incentive and otherwise work to enhance teacher morale.  A well-respected and motivated pool of teachers is the key to all other success in education.

Job Creation and Economic Development ranks second on the list of issues Utahns are most concerned about.

1) Please outline how you would bring more jobs to the state and on which industry sectors economic development should focus.

About a year ago I formed a team of Utah economic leaders to develop and address questions such as these.  With the assistance of this team I worked specifically to put together a plan to improve Utah’s economic future.  I found primarily that we need to revamp our tax structure to a more business friendly one, and set our sights on a diverse set of industries, focusing on the high-paying sectors of tomorrow that Utah is well-situated for today. 

The first step in creating high-paying jobs in Utah is to create a more business-friendly tax structure.  The State’s current tax structure is outdated.  We need a new, more sensible structure that rewards the private sector for creating long-term economic growth (and jobs) in Utah.  Specifically, I plan to work closely with the Utah Legislature to enact the following tax measures:

1. Align Tax Needs of State and Local Governments
   Currently, Utah’s tax code incentivizes the creation of retail businesses because they provide sales tax revenue to local counties and municipalities.  What Utah needs is a tax code that aligns the needs of our local governments, and also rewards the creation of high-paying, private sector jobs -- jobs that will provide the State with an economic foundation for the 21st Century.
   
   
2. Create Tax Holidays for Specific Types and Sizes of Companies Willing to Relocate or Expand to Utah
   Tax holidays should be awarded to specific types and sizes of businesses that are willing to relocate, or expand, their operations to Utah.  For example, if a company moves jobs to Utah, we should consider reducing their taxes for a period of time to help offset the costs of their move.  This will incentivize companies to locate or expand their operations here, which should never be done to the disadvantage of existing local businesses.
   
   
3. Revamp the State’s Research and Development (R&D) Tax Credit
   The Utah R&D credit could be modified to be a more effective tool in stimulating new business development in the State of Utah.  Small- and medium-sized businesses are not able to take advantage of this credit, and often do not make investments in Utah that they would otherwise make.  Furthermore, these types of investments often would have been in technology-oriented areas such as information technology and biotechnology which are industry sectors Utah would like to grow because they create high-paying jobs.  We should change the formulas for R&D tax credits to allow more companies to benefit from their investment.  Doing so will lead to more investment in Utah, especially in key industry sectors, and job growth will follow.
   
   
4. Review the Industrial Assistance Fund
   This state discretionary fund should have a larger pool of financial resources to draw upon.  Over the past several years this fund has redefined its criteria several times, we need to send a consistent message to corporate decision-makers that we are targeting specific industries that match our assets and award companies accordingly.
   
   
5. Provide more Competitive Job Training Credits
   We need to re-tool Utah’s Custom-Fit Training Program.  This program is drastically under-funded to compete with other states.  Many states, such as Colorado and Oklahoma, have programs that fund between three and ten times what Utah’s program offers.  Also, the current in-kind contributions are often awkward for companies to use.  As we train and re-train Utah workers, we are making an investment in our most precious asset, our labor pool.  This is a no-lose proposition for Utah because our workforce becomes significantly more marketable.
   
   
6. Mid- to Long-term Considerations

• Revise or Reduce the Corporate Income Tax
  Although difficult to afford in the near term, Utah should consider alternatives to the corporate income tax.  At a minimum, we should adopt other state models where profits are not taxed until they reach a specific level.  Relative to other states, Utah’s current corporate income tax is a disincentive for businesses to locate here.  If we can eliminate this tax, and get more companies in Utah as a result, the jobs those companies create will more than offset this historically volatile source of State revenue.
  
• Revamp Taxes on Capital Gains and Dividends
  Longer-term, we should adopt a model that is more consistent with the Federal tax code and rewards investment – especially long-term investments relative to short-term investments.

Industry sectors economic development should focus on:

Focus on the Right Industries for Utah’s 21st Century:
Given Utah’s tremendous asset base, there are many potential industry areas where we could focus our efforts.  I believe that the following areas represent some of our more promising opportunities to develop strong regional economic clusters.  These centers will be known nationally and internationally for their level of excellence.

• Internationally Branded Healthcare (IHC, University of Utah and others),
  Based on the U.S. News annual survey and other measures, Utah has very well-regarded hospitals and practitioners.  This is a fact that most Utahns are aware of, but it is not something that we publicize nearly enough.  As Governor, I will work with our healthcare providers to get the word out about the excellent institutions we have here in Utah.  Utah can become a treatment destination where people from all over the U.S. and the world come to get the best treatment and advice for all kinds of diseases (such as the famous Mayo Clinic in Minnesota).  We have already made great strides in certain diseases such as cancer, with the Huntsman Cancer Institute.  But we need to do more to make Utah an internationally branded healthcare center of the highest quality.  Specifically, I would emphasize focus in at least three possible areas:
  
  
  • Children’s Care:  Given Utah’s demographics we should absolutely, positively have the world's finest medical care for children (for example, think of a Texas Children's Hospital equivalent right here in Salt Lake City).  We already have a quality facility in the Primary Children’s Medical Center, and this could serve as a great foundation for future growth in this area.  Utah should push hard to be famous as the best place in the world for children’s healthcare.  This reputation, as we develop it, will likely resonate well with people around the U.S., because Utah is already known for having big families and lots of children, so we have an advantage there.  One way to make this happen is to establish a reputation for being the very best with the toughest problems (e.g., children with cancer).
    
    
  • Preventive Medicine:  Utah has a natural base for this area, because we are constantly rated as one of the healthiest populations in the U.S.  This is partly because of our high quality of life and our generally healthy lifestyles, and we can parlay this reputation into a strong clinical expertise focused on preventive health care that includes nutrition, exercise and medications, as part of our approach.  Utah could also build cross-discipline specialties that focus on prevention and detection and become the best known in the world for these areas of expertise.
    
    
  • Geriatric Care:  This is a very real specialty, since seniors often react differently to medicines, treatment and other medicinal combinations.  This is a huge and growing issue and Utah is well positioned to address it.

If Utah is successful in this critical endeavor there would be many possible benefits, including the following:

• Many jobs including high-paying medical jobs, and also good base support positions.
  
  
• Substantial job base in a growing industry that is not as susceptible to recessionary pressures as other sectors (i.e., people need healthcare in both good economic times and bad economic times).
  
  
• Even better healthcare for the citizens of Utah; right here in our own backyard.
  
  
• Greater ability to attract federal research funding.
  
  
• Creation of multiple spin-off companies in the healthcare, biotechnology, medical device, and pharmaceutical sectors (more high-paying jobs).
  
  
• Health-based tourism.  This could include patients coming to Utah to seek out the best treatment.  It could also include practitioners coming to Utah for conferences and meetings to learn from the best in the world in their respective fields
   
• Biotechnology, Bioinformatics and Pharmaceuticals (NPS, Myriad, and others): 
  Largely as a result of its long history in genetic research, Utah has already established itself as a respected player in these healthcare-related fields.  We should continue to build upon these strengths and encourage the maturation of these companies (that is, do everything we can to establish more of them, and keep them in Utah).
  
  
• Defense and Aerospace:(Hill Air Force Base, Utah State Space Dynamics Laboratory)
  Utah ranks 9th nationally in aerospace jobs per capita.  This is a good base to develop going forward.  This high ranking is due in part to Cache Valley’s Utah State's Space Dynamics Laboratory which has the potential to become “Space City USA.”
  
  Furthermore, the importance of Hill Air force Base(HFB) cannot be over stated.  It employs more than 23,000 people and its payroll exceeds $838 million.  In 2002 figures HFB’s total annual impact on Utah economy is more then $2.5 billion.  This large impact is because HFB attracts venders such as Boeing Inc. along with its high skilled jobs to Utah.
  
  
• Medical devices (Bard Access Systems)
  The Salt Lake City area is one of the largest medical device economies in the nation; specifically in the area of vascular access (i.e. venous access) it is certainly the largest in the world.  Depending on the type of product, companies such as Becton Dickinson and Bard Access (a Utah company) supply between 40% and 90% of the market.  The only area of vascular access not dominated by Utah companies is in the low margin commodity area of the business (companies with these products are spread all over the country).

Although this industry sector is already strong in Utah, opportunities exist to create more jobs by promoting the formation of companies that service this sector.  Moreover, leaders in the device industry have suggested that our universities need to be more actively engaged in this area.  Currently, research dollars, consulting contracts and other opportunities are leaving the state.  This is a huge inconvenience and cost for these companies, and also a lost opportunity for Utah’s economy.

According to industry leaders, there is currently very little interaction between the State and the medical device community.  As Governor, I would designate senior State officials to work with the ULSA and the University of Utah Advisory Boards.  In so doing we could identify the needs of the various parties and promote cooperation to expand this valuable sector of our State economy.

• Technology Sector
  This sector includes:  (i) software and networking (Novell, Altiris, PowerQwest, LanDesk and others); (ii) video games and graphic design;  (iii) wireless technology; and (iv) Internet-based services, and more.
  
  
• Financial services
  Salt Lake City has proven itself as a strong regional banking hub.  We should continue to maintain and strengthen this sector because it will produce high-paying jobs and also provide a ready source of capital for Utah businesses.  For example, Salt Lake City-based UTFC is benefiting many Utah-based firms with much needed capital by pooling, leveraging, and investing Community Reinvestment Act monies from numerous national financial institutions with operations in Utah.  Furthermore, Utah is home to approximately 35 Industrial Loan Corporations (ILCs) that manage in excess of $150 billion in assets.  We need to protect and expand this industry.
  
  
• Agriculture Industry
  Agriculture in Utah has long been a contributor to the state’s economy.  Grazing rights and water rights need to be a priority in economic and law making plans.
  
  
• Filming Industry
  Utah has created a meaningful presence in the filming sector, but much more can be done to expand this area.  Filming organizations love Utah because of our geographic beauty and our talented, flexible workforce.  However, we are losing much of this business to Canada, Louisiana and New Mexico because we are not aggressive enough.  This industry can generate substantial benefits for Utah’s economy.  Each segment of Touched by an Angel (a television series that was filmed in Utah) contributed an estimated $300,000 to the Utah economy.  Work in this industry also has the benefit of showcasing our great State to the entire world.
  
  
• Clean and renewable technologies:
  These include solar, wind, biomass, geothermal, hydrogen, etc.  Utah should position itself as a leader in renewable energy technologies.
  
  
• Homeland Security (Attensity, Oakley Networks, Senforce, Forum Systems and others)
  
  
• Outdoor Recreation (Black Diamond):
  Included in this segment are opportunities for tourism, but also to develop outdoor-related companies such as retail shops and product manufacturers.
  
  
• Mining Industry
  Utah coal is low sulfur and high BTU, representing some of the highest quality coal in the nation.  It has been a traditional economic contributor for over a century, and continues to have great potential impact on Utah’s future.  Access to these resources must be a priority in economic and lawmaking considerations.

Develop Programs and Incentives to Encourage Cluster Development in Targeted Industries:

Whatever our target sectors, Utah must create the right incentives and programs to get the clusters started.  These should be well-coordinated and efficient.  They should also be targeted specifically toward the sectors Utah wants to grow.  As Governor, I would encourage the following types of targeted incentives:

• Increase research and development tax credits to encourage investment in targeted industries.
  
  
• Amend Industrial Assistance Fund statute to permit funding to targeted industries with milestones based on state benefits other than job creation.
  
  
• Increase funding to Centers of Excellence Program and ensure that the committee is well represented by targeted industries.
  
  
• Consider state bond funding for development of a business accelerator in the University of Utah research park.  Research park has a disproportionate amount of research and clinical centers and not enough commercial organizations.  Furthermore, research park is the location of choice for entrepreneurs and companies being spun out of the University of Utah, yet it is the most expensive real estate, forcing companies to locate in areas where synergies are not available.  Example: much of San Diego’s growth has spun out of a concentration of companies along La Jolla mesa, and our state should foster that type of ecosystem in research park.  As Governor, I would lead the development of a business incubation center in research park to accelerate the development of commercial companies in a low cost, high synergy environment.  Ultimately, this will lead to more high-paying jobs for Utah in a shorter period of time.
  
  
• Support the formation of another research park in Utah.  This park should be a consortium of research universities, community colleges (training) and private sector.
  
  
• Amend HB 316 to attract large companies in targeted industries, such as pharmaceuticals, medical device and software.
  
  
• Expand sales and use tax exemptions for benefit of purchases in targeted industries.
  
  
• Develop system to hold Universities accountable for increasing the performance of technology transfer offices and measurement to include new company generation in targeted industries.
  
  
• Support University endowments focused on targeted industries.
  
  
• Administer fund of funds to attract venture capital (VC) firms focused solely on certain targeted industries, such as life sciences-, software- or energy-focused VCs.

2) Utahns are also concerned about wages. Past economic development strategy for the state has focused on selling the state as a "low-cost" place to do business and low wage rates were part of that strategy.

a. Should that change?

Yes.  Utah must develop its reputation as that of a valuable place to do business, but that value needs to come from a business friendly, and capable, environment instead of merely a low cost and low wage state

b. If so, how would you market the state to companies interested in relocating or expanding?

For Utah to stimulate economic development in business, convention trade, tourism and living in Utah, we must enhance our national and international image.  We want to be known as an attractive place in which to do business, to visit, and to live.  I believe this can be achieved by launching a proactive, "best in class," Utah image improvement effort.  Specifically, the following measures should be considered and enacted:

1. Assess Current Status of Utah’s Image Nationally and Internationally: Identify locations where Utah's image is positive and those where it is negative, or altogether unknown.  Match findings against list of locations where the greatest opportunities exist for attracting business, convention trade, tourism and future Utahns.
   
   
2. Benchmark current Utah Image-Improvement Efforts Against “Best-in-Class” State and Corporate Programs:
   Identify current positives in Utah image-improvement efforts.  Identify "best in class" efforts of other states, countries, and corporations that could be made a part of Utah image-improvement efforts (e.g., Singapore, India, and Germany have excellent programs).
   
   
3. Update and Upgrade Materials Used to Project Utah’s Image:
   Update and upgrade materials used to project Utah's image to assure that our materials are "best in class" and that they project Utah's image as “The Place” to be.  Factors to feature should include Utah's educated workforce; work ethic; cultural diversity; research capabilities; availability of stay-at-home moms and senior citizens who can work from home offices; availability of  broadband to facilitate virtual offices; Utah's four seasons; availability of outdoor recreation facilities; good living conditions; commitment to education, and; so on. 
   
   
4. Proactively Increase Awareness Outside Utah That “Utah Is the Place” for Business, Convention Trade, Tourism and Good Living.
   
   
5. Enhance the Image of Small and Medium Business Success in Utah:
   Improve the appearance of small and medium business exteriors in order to project a crisp, clean image of success. Initiate Clean-up, fix-up, paint-up campaign in downtown and light industrial locations, starting with those in locations that are central for Utah visitors.  Promote greater use of RDA and EDA money to facilitate this. 
   
   
6. Establish Direct Line of Contact by Governor:
   As Governor, I will set aside a significant portion of my time to make contact with the CEOs of Fortune 1,000 companies, national and international media groups, and other organizations. I would use these communications to personally deliver the message of why Utah is the best place in the world to do business.
   
   
7. Formulate Tradeshow Recruiting Pipeline List:
   Research and gather data of all the major tradeshows that will be held in the upcoming calendar years and the revenue that would be generated for the State if these shows were held in Utah. Gather data such as:  show dates; name of show; sponsoring organization; number of attendees; target audience; number of days; exhibiting companies, and; potential of these companies to expand or relocate to Utah. We will use this data to create a priority list of shows to pursue first, selecting those shows that will generate the most revenue for Utah. As Governor, I will also use the largest industry trade shows in Utah as an opportunity to invite CEOs to see Utah while attending the show.
   
   
8. Promote Utah as a Year Round Vacation Spot:
   Change the perception that Utah is only a "winter getaway.” Promote the cost-effectiveness that a Utah getaway offers. Create educational materials on "Things to Do" in Utah and develop a cost-efficient media program to get this message to our target audiences. This approach could include some use of targeted television advertising.
   
   
9. Promote the Legitimate Business Activity that Utah Fosters:
   Industries that are flourishing in Utah need to be promoted to change the old perception that Utah is connected with penny stock offerings and fraud. Utah is #1 in entrepreneurial start-ups nationwide. The ethics, work ethic and education fostered within Utah, promote new ideas and innovation.  Nationally and internationally known companies have their roots in Utah.

3) What measures would you take to foster home-grown businesses?

Utah has a strong track record of starting small businesses.  In fact, Utah ranks very high nationally in many areas related to start-up companies, including:

• #1 in university spin-out businesses
• #1 per capita in fastest growing emerging companies
• #4 in total start-ups
• #6 in university research funding
• #3 in entrepreneurial energy

The bad news is that a disproportionate number of Utah’s early-stage companies do not succeed.  Moreover, many of the companies that do succeed eventually move out of the State, taking their high-paying jobs with them.  The following statistics highlight this problem (with #50 representing the worst state in the U.S., and #1 the best):

• # 20 – Venture-backed IPO’s
• # 49 -- business closings/failures
• # 47 -- financial resources (state/fed/venture)
• # 47 -- number of emerging companies that stay in Utah more than five years after inception

Perhaps our most significant challenge in growing business in Utah is the State’s lack of middle and later-stage companies.  These businesses form the backbone of any thriving economy and provide a strong reservoir of high-paying jobs. 

As Governor, I will continue to support the establishment of good companies in Utah.  This is a great strength for us.  We should build upon it given our State’s motto is “Industry,” and our symbol is a busy beehive.  In order to do this, we need to provide the right environment and tools so that our early-stage businesses can grow and become leaders in their respective industries, while remaining here in Utah.

As your Governor, I will work to implement a number of policies that would support small- and medium-sized businesses, including the following:

1. Facilitate and Improve Access to Capital
   As I’ve mentioned, we must make more capital available to Utah companies so they can thrive and grow.  Utah currently has about $1 billion of capital under management in the venture capital arena.  As Governor, I will work to increase this figure to $2 billion, placing particular emphasis on middle-stage investing.  I plan to meet with venture capital and private equity groups from around the world, and encourage them to partner with our local investment organizations to achieve this goal.  The state’s new “fund of funds” program will assist in this effort, but we can and should do more.
   
   
2. Grow Utah’s Pool of Management Talent
   Utah is fortunate to enjoy one of the youngest and best educated populations in the U.S.  We need to continue to develop talented, experienced leaders in Utah.  Doing so will allow Utah to be more successful at establishing and growing medium and large businesses here in the State, rather than allowing them to move elsewhere as they mature.  Specifically, we should pursue the following areas:
   
   - Use targeted student loans/subsidies to increase the number of college graduates in key technical areas such as engineering, technology, medical, aerospace, and business.
   Retool the Custom-Fit Training Program to strengthen the workforce available to these businesses. 
   
   - Support entrepreneurial education.  Successful incubation and development of new companies requires both innovative and competitive products, as well as excellent business management skills.
   
   - Reach out to national and international business leaders that possess strong ties to Utah.  Beyond our borders, there is an extraordinary group of business professionals who have a deep interest in Utah. These are people who graduated from Utah schools, are native to Utah, have family here or simply love the natural amenities available in our State. We need to form a “swat team” of highly skilled business professionals both in Utah and outside of Utah to help network, connect and guide young business professionals with domestic and international resources.  Past administrations have started programs in this area, but there is a need for better execution and follow-up.  The private sector should play a significant role in this effort.
   
   
3. Do Business with Utah Companies
   Wherever possible, the State should direct its spending power towards Utah-based companies.  I am opposed to “out-sourcing” Utah jobs.  There are many examples where the State has awarded its business to a non-Utah company, when a Utah-based company could have provided the same good or service.  Clearly, local companies need to earn the business by being competitive but, all things being equal, I believe we should support our local businesses.
   
   
4. Tax Reform
   Utah needs a tax structure that will minimize the burden on businesses so they can invest more in their companies and create more high-paying jobs over the long-term.  When companies compare Utah to other states, we want them to feel this is the most attractive and vibrant environment in which to do business.  We can accomplish this by being thoughtful about the way we tax businesses.
   
   
5. Reduce Government Regulation and Red Tape
   As Governor, I will reduce administrative red tape and make doing business in Utah easy and swift. This may include looking at revisions in taxes, domestic and international banking laws, business litigation laws, and other important areas.  We should also consider ways to fast-track existing and new business applications, licenses, etc.  Some local communities actually charge for the fast-track process and, ironically, most businesses are happy to pay for it because they value the service.

I believe we should also overhaul Utah’s economic development offices and organizations.  Utah spends a substantial amount of money on economic development, but we have too many groups, organizations, agencies, etc.  All of these agencies are working towards the same goal, but our lack of coordination leads to inefficiency and leaves businesses confused and frustrated.  I believe strengthening Utah’s economy is of critical importance, and we need a high quality, professional organization to support our efforts.

4) Innovation and technological advantage are key areas of future economic growth. Much of that takes place on college campuses. How would you assist universities in "spinning-off" new businesses?

As Governor, I would push for the following:

• Streamline Utah’s technology transfer process to make it a driver for business creation in Utah.
  Some good work has been done by our administrators in this area, but more can be done.  Our offices need to work with entrepreneurs, not against them.  We need to encourage the commercialization of our more innovative ideas, not stall them in bureaucratic negotiations.  A more collaborative approach will transform our technology transfer process into a driver for Utah’s economy.
  
  
• Allow Universities to hold equity in start-up companies
  We need to allow specific State entities, ones that are incubating companies or transferring technology to companies, to own equity as a form of compensation.  As an extension of my efforts in the technology transfer area, I would support changes to the State’s laws to allow our Universities to accept equity in start-up companies.  Currently, the Utah State Constitution has been interpreted not to allow any State entity to hold equity ownership in companies.

While I do not advocate the State getting overly involved in the private sector, this is clearly an area where we should make an exception.  Start-up businesses often negotiate with our technology transfer offices to acquire the rights to a particular technology.  Frequently, this technology is the basis for a new company that an entrepreneur wants to form in Utah.   

Unfortunately, most start-up companies do not have enough cash to pay for the technologies outright.  What they do have, however, is equity in their company that they are often willing to give up in exchange for access to the technology.  By taking equity in lieu of cash the State can help form new companies that might not otherwise get started, and these companies can go on to create jobs.  Furthermore, Utah benefits financially from its equity ownership if the company is successful.  Many other states in the U.S. have used this approach effectively.  It is time for Utah to modernize its approach in this area.

• Support substantial funding for the Centers of Excellence Programs to incubate more start-up companies.
  
  
• Appoint a joint state/private task force to raise enough money to endow 30 new academic chairs at Utah’s colleges and universities.
  Each chair would fund the work of at least one professional researcher in areas deemed strategic to Utah’s economy.  For example, these could be focused on engineering, technology, biosciences, aerospace, or other areas that would spawn technologies with commercial potential.  Importantly, the goals of these endowed chairs would be different from similar academic chairs, in that they would entail a substantially higher level of accountability for results.  We would measure the performance of each researcher according to the number of commercial technologies generated and, ultimately, the number of companies and jobs created.  The renewal of their funding would be dependant upon their performance against these key economic metrics.

5) Rural economic development is very different from what can be done along the Wasatch Front. What would you do to bring jobs into rural areas of the state?

My family’s roots trace back to Fillmore, Utah.  I know rural Utah, and it is full of hardworking individuals who know the value of a hard day’s work.  What we need is a Governor who is willing to fight for the citizens of Utah’s rural communities – one who has the experience and leadership in the global economy to bring jobs and economic prosperity to our rural areas.  I believe that Utahns should not be forced to choose between a good job, and living where they want to live and raise their families.  I will fight to bring jobs to our entire state.

My plan for bringing prosperity to rural Utah includes the following:

1. 1. PROMOTE NATURAL RESOURCE DEVELOPMENT
   If we are to help our rural communities grow economically, we must fight for the freedoms they need to grow their industries. Utah has an abundance of natural resources, the development of which will be good for the economies of rural communities, good for the state and good for the country.  Utah has large deposits of clean burning natural gas, which is in increasingly great demand across the country. Development of Utah’s natural gas beds and oil reserves will add to the national supply and help drive prices down, while decreasing our dependency on overseas sources of energy. The same can be said for Utah’s low-sulfur, clean-burning coal. The coal in our southern counties is both economically and environmentally desirable. This country still relies heavily on coal for energy, and as long as that is the case, Utah can and should play an important role in supplying the nation with this abundant source of energy.
   
   The natural resources on Utah’s public lands, and the land itself, belong to all the American people and can be used responsibly for the public interest. As Governor, I will fight to protect access to and responsible use of public land for resource and other development, grazing, hunting, fishing and recreating.
   
   
2. FACILITATE ACCESS TO CAPITAL
   
   • Support tax incentives for economic development in rural Utah.
   
   • Capture federal funds for the development of rural America.
   
   • Promote successful rural Utah companies and projects.
   
   
3. RS 2477 – PROTECT RIGHT-OF-WAY CLAIMS ON FEDERAL LANDS
   A more aggressive approach must be instituted to resolve the debate over what constitutes roads and wilderness.  Utah has been slow in finding a resolution to this critical and emotional issue.  As governor, I will work closely with state and national legislators, local communities, and interested parties to resolve this issue more rapidly.
   My effort to protect access will include protecting the Memorandum of Understanding between Utah and the Department of the Interior to process rights-of way claims on federal lands in the state of Utah. As Governor, I will work closely with our congressional delegation to protect these fundamental rights from being infringed upon by extreme groups.
   
   
4. PROMOTE THE DEVELOPMENT OF CENTERS OF MASS NEEDED TO ATTRACT ECONOMIC OPPORTUNITIES
   
   • Instigate regional cooperation with local leadership and communication.
   
   
5. PROMOTE RURAL UTAH’S POTENTIAL TO NATIONAL AND INTERNATIONAL MARKETS
   
   • Natural and agricultural resources.
   
   • Other great benefits like strong work ethic.
   
   
6. ACTIVELY SOLICIT NEW MARKETS FOR RURAL UTAH PRODUCTS.
   
   • Work to promote “Utah’s Own” program.
   
   • Work with rural educational institutions to create centers of excellence that have ties to growth industries.
   
   
7. ENCOURAGE AND INCENTIVIZE STUDENTS TO ATTEND OUR RURAL INSTITUTIONS OF HIGHER EDUCATION
   
   
8. PROMOTE FOREST MANAGEMENT AND FIGHT AGAINST FRIVOLOUS LITIGATION AND OTHER OVERZEALOUS TACTICS
   Last summer, in Utah and other western states, ravaging forest fires that devastated communities were fueled in part by overzealous environmental activists who use frivolous litigation and other tactics to prevent healthy forest management. This summer, we will likely see millions more acres of our forests burn, as trees killed by bark beetles and other infestations serve as accelerants for forest fires. As Governor, I will see that my administration aggressively fights such damaging affronts, and will ensure that our state forestry policies create an environment that truly fosters healthy forests and public lands.
   
   
9. PROTECT PRIVATE PROPERTY RIGHTS
   Utah has a proud heritage of respecting private property rights. Too often we infringe on those rights and limit a landowner’s ability to make a living on his land. While there are good reasons to have some regulations in place to keep our communities safe and clean, as Governor, I will fight to defend property rights from over regulation and from government “takings.” I believe that no one loves a piece of land more than the family that owns it. If we are to help our rural communities thrive, we must ensure the ability of landowners to work their land responsibly.
   
   
10. RESPONSIBLE WILDERNESS
    Most people rightfully worry about the environmental impact of activities such as mining, road construction and off-road vehicle use on natural areas. And most people agree that there are certain parcels of land that are both majestic and pristine, and should be protected as such. However, that does not mean that Utah needs more land designated as “wilderness.”
    
    In fact, the BLM has over a dozen different designations for use of public land. Even without designating land as wilderness, the professional land managers have the authority to apply as much protection as a parcel of land might need. Therefore, wilderness designation should be used cautiously; especially considering the impact such designation has on economic development and recreational access for all Utahns.
    
    
11. FIGHT TO PROTECT ACCESS TO PUBLIC LANDS FOR RECREATION
    Each year, more than 3 million people visit the marinas of Lake Powell. Each spring, more than 100,000 RVs make a pilgrimage to Utah’s Little Sahara Desert. The same can be said of Moab each Easter for mountain biking and the Jeep safari. Like other lakes and rivers, majestic alpine mountains and rugged desert canyons across Utah, the crown jewels of our great state offer rest, relaxation and recreation for all Utah citizens.
    
    While some lands have appropriately been designated as Wilderness Areas, where only the solitude of nature is allowed, I believe that the majority of our public lands should be managed in a way that balances protection with access. Fundamentally, public lands belong to all the public. As Governor, I will fight to protect access to public lands for recreation. Such a policy is good for the rural gateway communities, good for the recreation industry (which adds significantly to the state economy), and good for our families who grow up loving and respecting the great outdoors.
    
    
12. PUSH FOR FULL PAYMENT OF PILT (PAYMENTS IN LIEU OF TAXES)
    Payments in Lieu of Taxes (PILT) were authorized by Congress in recognition that counties and other local government entities with substantial acreage of federal land could not collect sufficient taxes to provide needed services.  Without these payments, residents of PILT states like Utah are penalized for living in areas with lands under federal ownership. In FY 2003, $361 million was authorized but only $220 million was appropriated. The Department of Interior's FY 2004 budget includes a request of only $200 million, $170 million less than was authorized. When federal government owns more than 60 percent of the land in Utah, it is crucial the Congress appropriate full funding of PILT. As Governor, I will work aggressively with our congressional delegation to ensure the federal government deal honestly and fairly with the state of Utah.

6) What has been your greatest success in fostering business growth and economic development?

I have enjoyed a successful professional career in business, public service, and in the community.  I have held key management responsibilities in helping to build the Huntsman companies into one of America’s largest and most successful family businesses – a business that was not here 20 years ago and a business that still deals with the struggles and challenges faced by every business.  The State of Utah would benefit greatly from application of common sense business principles which I would bring to Utah’s chief executive office.  Businesses constantly struggle and succeed to do more with less – so should government.  I will bring that mindset to the Governor’s office.

During my career at Huntsman, I have been involved in all aspects of a major multi-national corporation that today has sales of ten billion dollars in annual revenue.  Our family business is headquartered in Utah and operates all over the world.  The Huntsman family works hard to build our business and give back to the community.  Effective leadership in any capacity requires the ability to set priorities, establish objectives and develop strategies for achieving those objectives.  I would apply those same principals as Governor as I have done in my business and other pursuits.

I am particularly proud of my service as the first President and CEO of the Huntsman Cancer Foundation, which was responsible for the creation of the Huntsman Cancer Institute at the University of Utah – now a leading center for cancer research and care.  Not only do we employ a significant number of people with high paying wages, but we are fighting disease and making a real difference in people’s lives.  I know the value of good jobs.  I have helped create them and I will do the same as Utah’s Governor.

Water availability and quality ranks third on the list. The latest drought as well as growth in areas with limited water supply has really brought this to voters' attention.

1) What are your ideas for creating an adequate water supply for now and into the future?

2) What role, if any, should conservation measures play in water development?

With per capita usage of water in Utah being 2nd highest in the nation, we have much room for improvement in this area.  Conservation of valuable resources becomes natural when their value is not under-assessed.  For example, Salt Lake City has one of the most arid climates in the Western United States, yet pays less than one half of what Seattle pays per water unit.  That makes as much sense as paying less for a glass of water in the Sahara than in the rainforest.   Water Districts need more freedom in setting their rates to reflect the market reality of our climate.

The 1998 Water Conservation Plan Act requires that all water conservancy districts and retail water agencies serving more than 500 users be required to submit a water conservation plan to the Division of Water Resources (DWRe). These plans are to be updated every 5 years. HB71, passed this year, states that those agencies failing to submit their plans will lose State funding. Governor Walker has also created a Water Issues Task Force for the State and signed an executive order earlier this year requiring conservation efforts among all State agencies.

Utah reservoirs are at an all-time low –at 45% of capacity. The Bear River Basin reservoirs are at about 10% of capacity with Bear Lake is at its lowest level in 70 years –at 18% below normal. Farmers using water from Bear Lake can expect only 39% of their normal irrigation supply. This level is only 3.5 feet above the level at which PacifiCorp can no longer pump water from the lake to the river –which would lead to massive water restrictions. Lake Powell is at 42% of capacity.

According to the State of Utah, if we conserve 25% per year by 2050, we would save 400,000 acre feet per year.  The State represents that such water savings is more water than the Jordanelle Reservoir could hold or any other water retention project in Utah.

The Slow the Flow program is intended to reduce water consumption in the State by 25% by 2050. The Jordan Valley Water Conservancy District’s goal is 40% by 2050. More education could take place within schools and through USU and other school extension services. Work with local landscaping and floral/plant companies to educate clients.

More conservation programs could be implemented – new homeowners could receive xeriscaping and landscape conservation pamphlets as well as developers. Municipalities could encourage planning and zoning boards to make education a part of the approval process.

Utah is doing well.  However, our efforts must continue even once our present drought has been broken if we are to avoid even greater disastrous results from the next drought

a. Which aspects of conservation should be voluntary and which mandatory?

Conservation should be a learned, voluntary behavior.  Creating mandatory conservation standards is not the answer.  With Utah’s tax burden ranking so high on the national level (anywhere from 7th to 11th depending on the source), creating a new bureaucracy and new sets of regulations is out of harmony with conservative principles.

At this stage in the drought personal conservation measures should be voluntary. They are working and with continued education they will continue to create a decrease in water consumption. Within the Salt Lake Valley, the 2 main water providers have reported that water consumption is down 15% -20% this year as compared to 2000.

The Central Utah Water Conservancy District’s Water Conservation Credit Program “is the mechanism by which the district allocates $50 million in federal funds for the implementation of conservation measures. This money is distributed to projects that meet certain criteria including a requirement of a 35% cost share from local sources.” (Utah’s water resources: Planning for the Future Ch.4; www.water.utah.gov/waterplan/uwfpff/chp-04b.htm).

b. Should the state offer incentives to conserve water? What types of incentives would you promote?

3) Should the 1/16 cent sales tax allocation to fund water projects continue? If so, what changes would you make to the current way monies are allocated?

Yes.  Counties depend upon the money generated by this sales tax to fund adequate infrastructure.  As Utah County Commissioner, my running mate, Gary Herbert, has had enough experience in this area to know that this money is put to good use by local communities.

Too often in the past, the State has looked to this fund, intended for local governments, as a way to pay off budget shortfalls.  As Governor, I would commit to county governments that these monies would remain sacrosanct.  Water development is too important to our quality of life to put on hold.

An increase in funding for future water development would be wise. Washington County is looking to spend approximately $300 million dollars by 2020 to bring water from Lake Powell.  This money could be more easily obtained by allowing Water Districts more latitude in setting prices.  Current law mandates that water districts cannot make a profit from water, which seems fair.  But allowing greater wiggle room for water districts to raise prices in anticipation of future needs (like the Washington County example) would not only encourage conservation, and let market forces exert greater influence in setting prices.  It may also avoid tax increases in the future to fund these needs.  Municipalities and individual communities should be responsible for establishing their own unique baseline use rates due to the unique nature of each community. The 1/16th cent sales tax encourages such an approach.

Cost of health care is the issue of greatest concern for Utahns within the health category.

1) What would you do to address the rising cost of health care?

The wonders of modern medicine have been a great blessing to our lifestyle in Utah.  We have some of the highest rated healthcare systems in the United States here locally.  Utahns can look forward to an even higher quality of treatment and care than most of their fellow Americans, and at a lower cost.

That being said, our healthcare costs, like those of the rest of the nation, are skyrocketing.  The recent economic woes have not helped the problem much either.  When good paying jobs are lost, the health coverage associated with them is lost as well, meaning fewer Utahns are insured in the most preferable way, through their employer.  Medicaid enrollments then rise to cover those with no insurance and low incomes.  Since hospitals, on the average, receive only 70 cents on the dollar from Medicaid patients, costs are shifted to insured individuals.  This cycle yields two bad results for Utahns:  First, costs go up for insured individuals to make up for the loss hospitals incur treating Medicaid patients, and second, cost goes up for taxpayers funding the increased number of Medicaid patients.  The state legislature is then forced to meet expanding needs with shrinking budgets for Medicaid.  Invariably, the payment level hospitals and other providers receive suffers as a result.  Hospitals must then effectively shift costs to the privately insured.  Thus, the cycle perpetuates itself, and the average Utahn is left holding the bill.

For every hour a healthcare provider spends treating patients, between thirty minutes and an hour are often used solely on regulations, such as paper work.  We can cut down busy work time, and help providers spend more time providing.  I will support regulations that improve efficiency and quality of healthcare, but cut down on regulations that occupy the hands of providers in work that does not assist the patient. 

I also hope to encourage incentives for those that pay immediately upon visiting a provider.  Often, hospitals have to wait months for payments from credit cards, checks, and other non-cash means, causing their administrative costs go rise. These costs are invariably passed on to the patients.  Immediate payment for services will help hospitals cut costs, and will thus save money for all.

We should also do a better job identifying what is catastrophic versus routine coverage and care.  An emergency room visit costs $500.  In certain situations, an the sophisticated care available at an ER is unnecessary, and an InstaCare facility can fill the need.  This saves money, and keeps our emergency rooms from being so overwhelmed.  Eliminating careless use of a facility designed for immediate care will help all of us pay less for services.

So by eliminating needless regulation, encouraging immediate payment for services received, avoiding cost shifting from Medicaid to hospitals, and encouraging appropriate types of care, we can receive some relief from the rising costs of healthcare.  My administration will look to new ideas and new perspectives on alleviating our healthcare cost dilemma.

2) What experience or insights do you have that would guide your policies on public health programs such as Medicaid, CHIP, Medicare and health care in general?

3) Children's health issues ranks high on the list of issues. What are specific policies you would adopt to assist parents with healthcare for their children?

Immunization programs are a valuable asset for society, and largely stop the spread of treatable, preventable illness.  Utah must continue efforts to “Immunize by Six”.  CHIP plays a great role in providing temporary services for children whose parents do not have insurance.  We should not, however, depend on CHIP as a solution for our uninsured children.  Improving the economy, and getting that parent steady work, will do more to help the pride of the parents and the children than any government program.  Work is ennobling for the parent and the child.

4) How can the state encourage better health insurance coverage for workers that do not have health insurance through their employer?

A healthy workforce is vital to our economic future.  We should streamline regulations so that workers and employers have a broader arena of choice to negotiate within, allowing workers to receive the health insurance they want, and not health insurance they don’t need.  Not every person needs full benefits.  For some, catastrophic coverage will do.  

Insurance companies are no longer operating as originally intended.  Insurance companies were conceived as a way to benefit both parties.  Inherent in the insured consumer’s risk, was the possibility that coverage would never be needed.  Inherent within insurance provider’s risk, was the chance that a catastrophic event would occur, and they would need to step in to fulfill their part of the bargain.  Insurance companies are now managing their risks so much more aggressively.  According to a New York Times Magazine article, 80% of healthcare costs come from 20% of the population.  While it is in the interest of the insurance industry to attempt to screen out that 20% of the population, they need to assume more of the risk.  This will bring into balance what now seems to be a scale tipped in the insurers favor.   

Finally, consumer choice in insurance allows for higher levels of customer satisfaction, and greater competition among insurers.  The new health-care savings accounts, allowing those in high risk, high deductable insured individuals to have a tax free way to save money for the future will revolutionize the insurance industry. This will drive down prices, and allow realistic coverage plans for those who have little hope of obtaining full benefits, but can be served equally as effectively by simple, catastrophic event insurance plans.  While not ideal, these plans offer a way for workers to know that they will be taken care of in case of emergency.

Crime and safety ranks fifth overall on the list of issues. Within the category of crime, respondents were most concerned about child safety and being a victim of identity theft.

1) Beyond the recently installed Amber Alert system, what would you as a state policy leader do to help Utahns feel more secure about their children's safety?

2) In your opinion, how can state policy makers protect citizens from becoming victims of ID theft?

ID theft is among the most financially crippling crimes.  We must do more to insure the protection of private information upon which ID theft is based.  In particular, the use of social security numbers is a tremendous weakness in our financial system.  Reliance upon social security numbers in employment, business, medical care and in government is far too pervasive. Access to these numbers is far too relaxed.  As Governor, I will seek to curtail use of social security numbers and impose greater obligations and liability upon those who require social security numbers in business transactions. 

Mail theft is another act that often goes hand in hand with ID theft.  State policy makers in concert with U.S. Postal authorities should do more to prevent mail theft.  Because mail theft is not a violent crime, it is not a priority for law enforcement.  That mindset must change, in light of the fact that such information is easily accessible to the culprits of ID theft.  As Governor, I will aggressively initiate efforts to protect Utahns’ privacy and personal information.

Higher Education is the sixth issue. Respondents were most concerned about graduates finding jobs in Utah and about tuition costs for students.

1) How do you keep recent graduates from leaving the state and taking their knowledge and expertise with them?

Some say that Utah’s chief export is talented college graduates.  Graduates of our schools leave the state to find jobs in areas more friendly to businesses.  If we want to keep our graduates, they need an incentive to stay.  The best incentive for students to stay in state is a better, healthier economy with jobs related to the fields most of our students are graduating in.  Our higher education in the state needs to be responsive to the economic needs of the state.

2) What is the best way to address concerns about rising tuition costs?

Decisions regarding tuition should not be made centrally, but rather at the more local level.  The Board of Trustees should be the point at which tuition costs should be adjusted.  This allows them to address the unique factors effecting their student populations. 

We should also encourage students to make use of our rural colleges and universities, along with the Utah College of Applied Technology.  Not every student needs to attend a research university.  More students attending these higher education institutions will lead to a stronger Utah.  This in turn will lead to economic opportunity in areas outside the Wasatch Front.

The Board of Regents should be carefully reexamined to determine the whether it best suits the needs of our students.  I believe that decisions should be made at the most local of levels.  The Board of Trustees for a university can fit the same function as the Regents, but reside much closer to the university.  Students will then be able to access those who have a real impact on their education more easily, leading to more transparent governance of our schools.

If we do not reflect the rising cost of education to the taxpayer in the tuition rates of the student, we will have to make it up somewhere else.  The various presidents of our institutions of higher learning can assist in this area by fundraising more aggressively.  If fundraising were more effective, the state could give the universities the maximum amount of monies available, and then count on the fundraising efforts to come up with the rest.

3) What role does higher education play in Utah?

Higher education plays a critical role in our state.  We are blessed with an abundance of quality choices for higher education.  These institutions train the workforce of tomorrow.  They develop, innovate, and incubate technologies for tomorrow.  A healthy system of higher education draws in companies that know we can staff their needs with our highly educated workforce, which results in an improved quality of life for Utahns.  Higher education will be the lifeblood for our ability to innovate, and create the economy of tomorrow. 
The role of our universities and colleges should be to provide a competitive advantage in the marketplace that will lift us to greater heights than other states.  Higher education is a great equalizer for our society, allowing those who receive it to advance their opportunities, regardless of background or upbringing.  A Huntsman-Herbert administration would make every effort to expand the influence of higher education in our state.

4) In your opinion, what does a "quality" post-secondary education mean?

A quality post secondary education fundamentally links with the quality of life students live after finishing school.  Graduates should have increased employment opportunities, with better pay than those without experience.  Education is a key to unlocking opportunity and adds to quality of life.

As stated above, not all quality higher education takes place at the university level.  We need to identify early on, preferably in high school, the needs, goals, and desires of students.  Not every student needs, or even wants, to attend more costly research universities.  We can do a better job promoting less traditional, but very valuable, higher education options.  UCAT has a bigger role to play than many appreciate.  UCAT helps those that desire vocationally based education that allows them to immediately become productive members of the workforce.

With our outstanding higher education options, a quality post-secondary education is a realistic expectation for our children.

Taxes are seventh on the list. Government spending ranks number one in the list of sub-issues under taxes.

1) Is government spending at the state level growing too quickly? If so, how would you curb spending?

I believe government has grown too quickly when measured by relevant benchmarks.  For example, over the past decade government spending has exceeded both inflation and population growth.   I would approach limiting government growth and spending in two ways. 

First, establish a cap – by constitutional amendment or otherwise – that limits the amount of revenue the government can take and spend.  Government revenues can be capped as a percentage of GDP or personal income or growth limited by the rate of inflation and population growth.  The revenue cap should be set forth in a simple and clear manner such that all taxpayers and the government would know what to expect as taxes and revenue respectively.

Second, we must settle on what government services are essential in today’s world and set spending priorities to meet these needs.  By focusing government on what Utahns most want from government and making sure those priorities are adequately funded, making cuts becomes easier.

I also support setting up a strategic review commission, similar to Pres. Reagan’s “Grace Commission,” to review overall state spending and to make recommendations on priorities and the elimination of waste.  I believe there could be found millions of dollars of savings to the State budget with this approach.

2) Compared to other states, Utahns pay a relatively high income tax and relatively low property taxes.

a. Should local governments including school districts raise more revenue locally, rather than relying on state funds?

b. If so, how would you encourage this?

I believe that government is best when it governs closest to the people because it is more immediately responsive to shifting or changing community demands for services.  It also tends to be more efficient and less wasteful.  We should be leaving most decisions, including raising revenue, up to local governments rather than handing down unfunded or under-funded mandates from the state level.

In any event, local government is currently funded primarily from locally raised revenue such as property tax and local option sales tax.  As we review and revise our tax structure, it is also a good time to take a hard look at how local government is funded.  Our current structure appears to be the result of decades of “horse trading” rather than what seems to make the most sense.

3) Is the tax burden in Utah spread fairly?

a. If not where are the imbalances?

Imbalances exist throughout the current system, which is why we need comprehensive review and revision of the tax system.  I am concerned that the numerous deductions and exemptions that have crept into our system have operated as tax loopholes in a system that should be fair and impartial.  Tax loopholes are subsidized by other taxpayers who support such recipients through higher taxes. The primary objective of a tax system should be aimed at producing the revenue to support necessary government services rather than income redistribution.

As we review our tax structure thought should be given to revising our income tax brackets to reflect the inflation from the time such brackets were first set.  Our current bracket structure tends to place a disproportionate burden on lower income taxpayers. 

We should also give consideration to placing greater emphasis on fees for services used by taxpayers rather than having all taxpayers subsidize government services as the current system primarily does.

b. What would you do to change the tax structure?

4) Related to tax burden, Utah Foundation asked respondents if there were any other tax issues that were not addressed in the standard questions on taxes. Of those that responded, 14% said "get rid of the tax on food." Would you as a candidate support this? Why or why not?

I do support the elimination of the sales tax on food but with certain conditions being met first.  Sales tax on food is one of the most regressive taxes in our society.  It especially hurts seniors on fixed incomes and working families.  With the ninth highest tax burden in the nation, we must find effective ways for reducing the tax burden on hard working families. Eliminating the tax on food is the way to start.

Eliminating sales tax on food is a matter of setting priorities.  It can be done.  Here’s how:

First, schools and local governments need to be held harmless from the tax cut.  I will work with a team of mayors, county commissioners, and city councils to ensure we do not burden communities with lost tax revenue.

Second, the tax should be removed from only staple food items, such as, the foods that are covered under the Food Stamp program.  This would represent the most regressive end of a regressive tax and would, therefore, not have the financial impact of eliminating the entire food tax.  Simplifying the transition is that most grocery stores already have these types of foods segregated in their computer systems.  Most prepared foods, “junk” food items, and the like, would not be exempted.

Third, the tax exemption would be phased in over the next four to five years, allowing for adjustment and adaptation by state and local governments.  The elimination of the food tax also would be tied to a flow of new revenues from the capture of out of state sales tax from the interstate Streamline Sales Tax agreement.  This new revenue flow would help to hold local governments harmless.  (This also has the advantage of slowing growth of State government as the new “windfall” of money comes in.)

Fourth, as Governor I will be reviewing a complete overhaul of our tax system and the tax on food exemption is only one part of that review process.

Fifth, we’ll help to pay for the exemption like Ronald Reagan did to help pay for his tax cuts – look at closing special interest loopholes.

Growth ranks eighth on the list. 66% of those polled said the issue was about how to accommodate growth through infrastructure rather than trying to control growth.

1) Do you have specific plans on how to fund building projects for things like roads, water and sewer, and assisting with school building projects?

Growth issues need to be assessed from multiple perspectives, but the most important level to address those issues from is locally.  The state still has a role to play, however.

One of the most valuable contributions the state can make is a simple one.  We absolutely must maintain our AAA bonding rating.  Not only does this save Utahns millions in interest on bonds used to pay for roads and other necessary projects, but we can strengthen our cities and counties bonds with this rating.  This enables them to receive a lower interest rate on bonds issued to build schools and other necessary infrastructure.  We need to be very careful not to endanger our bonding rating, or we run the risk of costing ourselves money not only at the state level, but in our county and city governments as well.

Expanding our tax base will also assist in providing for our infrastructure needs.  With my ten point economic plan implemented, not only will our employment rates rise, but the quality of pay will rise.  This will allow us to address infrastructure needs more effectively, without endangering our AAA bond rating.

In a Huntsman-Herbert administration, the role of the state in infrastructure will be simple:  If the proposed infrastructure can be proven to be beneficial to more than one locality in Utah, and benefits the state’s interest in improving conditions for economic expansion or quality of life for those entities, the state will examine assisting in funding the project.

2) What is the role of state government in building new infrastructure?

When the state has a vested interest in insuring that the infrastructure (for example, I-15 reconstruction) is built, the state should spearhead the development and building of such infrastructure.

3) What role do local governments play in these projects?

When a project can be effectively undertaken by local authorities, and the taxpayers of the state of Utah generally do not have a vested interest in helping build such infrastructure, it should remain the prerogative of those localities to arrange for new infrastructure

Environment is issue number nine. It has two sub-topics, air quality and hazardous waste.

1) What is the state's role in addressing issues around air quality?

It seems the federal government has a habit of overstepping its bounds, and not abiding by the tenth amendment.  I would prefer the state have control over air quality standards rather than the federal government.  Still, until the state can retain those rights secured by the tenth amendment, the state should play as active a role as possible in protecting our beautiful state from feeling the unnecessary effects of heavily polluted air.

2) What is your plan for addressing concerns about the safety of the proposed hazardous waste storage sites?

I was disappointed that the task force on Hazardous Waste Regulation did not speak with a stronger voice against storage of “hotter” waste.  I assure the citizens of Utah that advocates of hazardous waste storage, beyond what the state currently allows, will know no greater obstacle to bringing their nuclear waste to Utah than me.

Some may say that funding education through these “hotter” waste types would help pay for education needs.  However, I am unwilling to pay for our children’s education by mortgaging their future health and safety.  I will never allow any part of Utah to become the nation’s de facto dumping ground.

3) Should Utah be in the business of storing hazardous waste? Why or why not?

No.  We have already made allowances for “A” level waste to be stored in Utah.  But brining any “hotter” level of nuclear waste to Utah not only constitutes a mistake, but a mortgaging of the future of Utah’s children to pay for the needs of Utahns today.  I will not allow any new, higher level of waste to enter Utah.  Ever.  Period.  

I am also concerned about the effects of the new “bunker buster” testing.  We have too many downwinders that can attest to the detrimental outcomes for citizens of Utah from living downwind from these types of tests.  As governor, I would oppose new testing and attempt to stop any ongoing testing when I take office.

Parental Rights ranks as number ten.

1) What would you do to balance the rights of parents and the rights of the state to intervene in cases where a child may be in danger?

2) What are your concerns surrounding this issue?

3) Do you have concerns about the Division of Child and Family Services? If so, what would you do to make the agency better?

Family disintegration is placing increasing stress upon our Child Welfare System.  Admittedly, DCFS has a challenging task on the front lines of one of society’s most perplexing problems.  Burgeoning caseloads and scarce resources test even the best of the many dedicated child welfare workers.  However, many Utahns fear that DCFS is either unwilling or unable to exercise good judgment in making child welfare decisions.  Whether or not that perception is real, the image of DCFS must and will change under my administration.

We must ensure that child safety determinations are made in a consistent and uniform manner according to clearly defined parameters.  These decisions must also be made pursuant to due process without the influence of special or personal interests.  The welfare of children and preservation of families must be the primary objective of this agency.

In addition, it may be appropriate to review the agency’s hiring practices to ensure that highly competent individuals are involved in child safety determinations.  I believe DCFS would benefit greatly from recruiting a variety of individuals with not only strong academic qualifications but also with practical and real world experience in supporting and improving our families.   Moreover, appropriately trained senior citizens may be a tremendous resource of volunteer expertise in assisting in child welfare determinations.

I believe that DCFS would also benefit from more community oversight and transparency, especially by those without a financial or professional stake in the child welfare industry.  Dozens of organizations have input on child welfare decision making.  Parents and critics alike should have more than a symbolic seat-at-the- table in reviewing DCFS cases, policies, practices and procedures.

As Utah’s population grows in numbers, complexity and need, DCFS will continue to play a significant, albeit limited, role.  It must not, however, exceed its authority and jurisdiction.   Parents stand at the forefront in raising and nurturing their children.  That role should not be subject to unnecessary scrutiny and intrusion by the State.  Where State intervention is absolutely necessary, DCFS should enter the sacred family environment with respect and support.  This Agency must be seen as a peacemaker and healer, not a forceful intruder or threatening trespasser.