Scott Matheson's Response to Utah Foundation's Questionnaire on Utah's Top Issues

Printable Version

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?

Teaching our children is our most important stewardship. The future of our state is in their hands. The quality of their education is in ours. We can and we must do better for Utah’s children and our state’s future.

Education is the key to our children’s life prospects. Education is the engine that drives our economy. Our goal is excellence. We will achieve it with quality teachers, parental involvement, innovation and choice in public schools, accountability, and realistic reforms. We will achieve it with sensible, long-range planning that makes education an even higher priority. We will achieve it together through a pledge to education. This challenge requires a total commitment from all of us, a commitment I will bring to the Governor’s office.

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?

The Utah public school system should offer alternatives to parents that best suit their students’ education interests and needs. I propose a Public School Choice Initiative that features accountable choice. Charter schools offer exciting opportunities for flexibility and choice in the public school system. They also encourage parent involvement and experimentation. Utah has taken an appropriately prudent approach to establishing charter schools. As we continue to explore more charter options, we need to ensure that charter schools are accessible to students and meet the same accountability standards as our traditional public schools, including teacher certification. We also need to be assured that each charter school is financially sound and does not deplete funding from the school district in which it is located. Finally, the new Charter School Board charged with oversight of charter schools should be asked to monitor and evaluate progress in our charter school programs and to share information that would improve all public schools. We also should be open to the magnet school concept. We need to protect and enhance educational opportunities in art and music, and schools should be encouraged to include academic service learning as part of the educational experience.

Where population levels allow, many students already take advantage of school choice within and between school districts. For example, one out of five students in the Salt Lake City District and one out of eight in the Granite District have chosen to attend a school outside of their neighborhoods. We should encourage a broader range of classroom experiences within schools and among schools, making school choice even more meaningful. We should support efforts to provide parents and students with flexibility and the information to make good school choice decisions.

A program providing tuition tax credits or vouchers for parents who send their children to non-public schools would take Utah in the wrong direction. Over 95 percent of Utah children attend public schools. Our public education system is open to exciting new reforms, the flexibility and new ideas of charter schools, and furthering the state’s tradition of quality. It also is under financial stress and in need of a statewide reaffirmation of commitment to public education. I am concerned that tuition tax credits will be ineffective in improving education in general, will take resources from the public system, and will send the wrong message to the vast majority of parents who are counting on the public schools to serve their children.

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?

Please see the previous answer.

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

We must ensure that students in all Utah communities receive high-quality educational opportunities. Schools in rural areas should receive fair treatment and support. They also should be free from unnecessary and unwarranted state and federal mandates. My plan to recruit and retain quality teachers, to foster parental involvement, to encourage flexible public school choice, to assist in bridging education gaps, and to support children with disabilities should include rural schools to the same extent as schools located in urban areas. See my detailed education plan at mathesonforgovernor.com.

Teacher recruitment can be a challenge for some communities. We should give such schools the ability to compete better by providing meaningful financial incentives to recruit effective teachers. We also should explore partnership arrangements with programs like Teach for America, which have been successful in other parts of the country and that recruit some of our strongest and most determined college students to teach for two years in low-income rural and urban communities.

The concerns addressed above about tuition tax credits and vouchers apply in particular to rural areas where there are very few private schools. We need to respect geographical equity and local decision-making in formulating education policy.

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 is a significant concern. Our teachers and students have performed well with far fewer resources than are devoted to education in other states. For years, Utah has invested less per student than any other state and has among the largest class sizes in the country. The future holds even more challenges, including a projected influx of 145,000 more students in the next ten years and the need for 1,175 additional teachers every year for the next twenty years. More funding is not the sole answer to our education challenges. But the student growth we face and the quality improvements we need will require resources. Improving our relative position on per-pupil investment will require a long-term effort. Such an effort will help us enhance education in Utah and send an important message to parents, teachers, and students and to those thinking of coming to Utah to start a business or start a job that we have a strong commitment to education as the key to the state’s future.

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

Funding for education in Utah has been a priority and a challenge. We devote all of our state income tax revenue to the Uniform School Fund, and school districts also rely on property tax revenues to fund their schools. More funding is not the sole answer to our education challenges. But the student growth we face and the quality improvements we need will require resources. It is critical for Utah to have a long-term funding plan for education. That plan must be the product of collaboration as outlined above. The following are some of the initial steps I would propose in developing this plan.

1. Education First – Education is a high priority in Utah. It must be an even higher priority if we are going to meet the challenges of student growth and improving our schools. The percentage of the state’s budget devoted to education over the years has declined slightly. As Governor, my budget plan would fund education first and give it a higher percentage of the budget. I would urge the Legislature to do the same. For example, if our current commitment of 47.6 percent of state general revenues to education could be raised to 50 percent in the next four years, the yield would be an additional $89 million, based on current revenues. We must try to do this without raising taxes, which will require careful balancing of other legitimate public interests. The task will be hard, but the Education First budget commitment should help set the course to improving education in Utah.
    
2. Economic Development - The most critical factor affecting our ability to finance education and other important public responsibilities is a healthy and growing state economy. Economic growth, and especially growth that brings high-quality, high-paying jobs, is essential to improving education in Utah. Economic growth and education are inextricably linked as top priorities, and I am fully committed to do all I can for the state to succeed in both. Our economy will not reach its full potential without a strong education program. Indeed, a robust economy starts with education, and that is what my Pledge to Education paper is about. Conversely, our education system will not reach its full potential without a strong economy. My plans for economic development will be addressed in a separate paper.
    
3. Government Efficiency - A vital part of planning for education is to conduct an aggressive, wholesale review of state government and state finances. On my first day as Governor, I will:
    
   • Appoint an Efficiency in Government Commission whose charge will be to conduct a wholesale review of state government, identify waste and duplication, and recommend budget cuts and cost-saving reforms. I will ask representatives from state and local government, business, and community organizations to participate. I will ask them to put state government on the Matheson CARB Diet – Cut All Redundant Bureaucracy. The Commission will have a two-year term, and it will issue reports and recommendations every six months.
      
   • Ask public education to conduct the same wholesale review of the school system, and involve a diverse spectrum of expertise in the process. Although the education budget is stretched, we owe it to the taxpayer citizens of Utah to search aggressively for savings. The Matheson CARB Diet applies especially here, because savings in administrative overhead costs and elimination of redundant testing and reporting requirements can be well-invested in the classroom. The Utah school system has less administrative overhead than counterparts in other states, but we should continue to find appropriate cost-saving measures that will put more money into our classrooms. I will also support incentives for each school district that is able to shift funds from non-instructional functions and into classroom teaching.
      
4. School LAND Trust Program – At statehood, Utah received millions of acres of land to be held in trust for the benefit of public schools. Revenue produced from these parcels goes into the Permanent School Fund, and interest income from the fund goes directly to our schools for their greatest needs. Much progress has been made to manage these lands and the revenues they produce to increase resources available to education. We need to continue with best efforts to build up the Permanent School Fund as a larger source of support for our schools. Part of those efforts should include a reinvigorated effort to trade isolated trust land parcels for more economically productive lands.
    
5. Federal Dollars, No Strings – Education should remain a local responsibility. Utah’s Governor must lead the fight against the federal government to keep it that way. The state also must take full advantage of federal resources available for education, including Title I, Head Start, School Lunch, the Individuals with Disabilities Education Act, and other program funding. The task is to maximize federal resources because we need all we can get, and to preserve local control because parents and teachers know what we need.
    
6. Payments for Federal Lands – Almost two-thirds of Utah is federal land that is not subject to property taxes. Our tax base to support education would be much larger if this were not the case. As a matter of fairness, counties receive from the federal government payments in lieu of taxes (PILT) to compensate them for the federal land not subject to tax. But the current payments do not nearly make up the difference in lost tax base. In the name of education and equity, the Governor and all leaders from the public land states in the West should mount an aggressive campaign for federal legislation to increase the PILT payments, with some of the increase going to support local classroom instruction.
    
7. Close Tax Loopholes – Over the past several decades, numerous state tax exemptions have been added, amounting to over $500 million in foregone revenue. Exemptions that made sense and were justified at the time they were enacted may not make sense many years later. When budgets are so stretched and many individuals and businesses do not have the benefit of tax exemptions, it seems fair that the case be made for each exemption every five years. The Legislature should be asked to re-enact the exemptions that can be justified and allow those to expire that are no longer needed. By closing those loopholes, more revenue will be available for pressing budget needs.
    
8. Collect Taxes Owed – I support stronger efforts to collect all taxes that are owed. The vast majority of individuals and business pay their fair share. The state currently is not adequately staffed to achieve greater compliance. More resources for tax audit and collection will generate more revenues for the state without raising taxes.
    
9. Tax Review – I do not believe our citizens would or should support new taxes for education without exhausting all of the foregoing strategies. I do think we need a comprehensive review of our tax system to make sure it is fair and efficient. Governor Walker initiated such a review, and we need to build on the work that has been done. Just as the Commission on Government Efficiency should produce cost savings that can be used for education, a thorough review of our tax system should indicate areas of reform and efficiency that will produce more revenue without raising taxes. Income tax brackets, which have not been indexed for inflation and have not received material change for over 30 years, should be adjusted to meet today’s circumstances.

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?

I propose a Quality Teacher Initiative. This proposal recognizes that nothing is more critical to a child’s education than dedicated, well-trained, high-quality teachers. Teachers shape the future of our children and our state every day in their classrooms. We need to respect teachers and invest in quality teachers. We need to do more to attract, retain, and reward excellent teachers. For the few teachers who are unable or unwilling to meet the rigors of the profession, we need to retrain or replace them. The Quality Teacher Initiative would include the following:

1. Respect Teachers - We ask a lot of our teachers. We trust them with our children. They work hard. They have tremendous responsibilities and challenges. They take pride in their work, and they are professionals. The starting point for a Quality Teacher Initiative is to recognize the enormous talent and dedication and many years of service our teachers provide throughout our school system. The starting point is respect.
    
2. Recruit Talented New Teachers – A recent Utah State University report shows that the projected unmet need for educators totals 1,175 per year (571 per year for growth, plus 3,381 per year for attrition, minus 2,777 per year currently placed). Teacher hiring decisions are among the most important that are made in the educational system. We need to invest in and provide incentives for talented young people who answer the call to teach. To do so, I propose:
    
   • A statewide teacher academy program to be held in each high school. With assistance from the State Office of Education, teachers from schools in each high school district would offer a program for students. Students would learn about the value of teaching as a career choice and develop a better understanding of the teaching process. We need to help students appreciate the critical role teachers play in our society and the rewards of entering the teaching profession.
      
   • An expanded loan repayment assistance program for college students who excel academically, commit to teaching, and need help to finance their education. Under this program, these student teachers who have accumulated debt to finance their education would be eligible for loan repayment assistance. I would ask the business community to help fund such a program, which has proven successful with law students who commit to public service following graduation. The program serves as a scholarship awarded after graduation rather than before matriculation.
      
   • A fresh review of current hiring policies to ensure that high standards are required and that sufficient flexibility is allowed for school districts to recruit the most talented individuals into our schools. This review would include consideration of how alternative certification requirements, including pre-service training, are working for individuals who have developed demonstrated expertise in a field and have strong potential for excellent classroom teaching.
      
   • Improve starting salaries for entry-level teachers to attract talented new members of the profession. We need our strongest students to consider a teaching career. We also need to compete with other states for the most talented entry-level candidates. Despite efforts to improve our school districts’ competitive position, we must do better if we wish to attract the best new teachers to our classrooms.
      
3. Mentor New Teachers - We should strengthen mentoring programs for new teachers throughout our state. Entering the profession is challenging. Mentoring is the key to spreading good practices and to helping teachers mature. Mentoring programs in various Utah school districts are making a significant difference in both training and retaining good teachers. Our schools are often so strapped for time and money that such mentoring occurs too infrequently. We should provide incentives to school districts to develop mentoring programs that match our best, experienced teachers with our new teachers to build a sound foundation for a teaching career.
    
4. Retain and Reward High-Performing Teachers – Excellence in teaching should be rewarded. Recognizing and rewarding excellent teaching in a fair and equitable way is a significant challenge. The substantial intangible benefits are among the major reasons teachers enter and stay in the profession. But when it comes to compensation, we should recognize the hard work, achievement, and valuable contributions teachers bring to their profession. For example, we should reward our experienced teachers who are certified by the National Board for Professional Teaching Standards (NBPTS). Teachers should receive funding support to achieve certification. This mark of achievement should be comparable to the recognition of accomplishment and expertise found in board certification for physicians. We also should provide additional incentives for our national board-certified teachers to teach in hard-to-staff schools.
    
5. Reinvigorate Professional Development Programs - Teachers appreciate the concept of lifetime learning as much as anyone, and they welcome professional development that provides fresh ideas and skills to make them better teachers. We must ensure that our teachers are afforded the continuing education opportunities to reach their full teaching potential and to make the re-licensing process more meaningful. This effort should include professional development in the areas of quality classroom assessment, technology use, and best practices from throughout the state and the country. It also should be tailored to meet the professional development needs of new and more experienced teachers.
    
6. Retrain or Replace Low-Performing Teachers – Like any profession, teaching is not for everyone, and not everyone is an effective teacher. We cannot afford to have mediocrity in the classroom. School principals should receive the training and support to help teachers improve and to address performance issues. Teachers should be protected from arbitrary and discriminatory employment practices, and we should recognize and appreciate the significant investment that they and others have made in their training and experience. Conversely, our schools need flexibility to retrain or replace those teachers who do not meet the standard of excellence our education system must expect.

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

Please see the answer to 2B.

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

I believe that the primary test of our curriculum is whether or not students leave our public education system and are able to succeed in higher education and in life. I believe that our system does a great job at general education. I believe that any weakness lies in the lack of specialized education for those students who know early what they wish to do with their lives. Charter schools have begun to address this problem, and further advances in school choice will continue this progress. One of the primary benefits of school choice is that it takes curriculum decisions away from politicians like myself, and puts the discussion where it should be, between parents and teachers.

I would like to suggest two areas for consideration. First, recent discussions about school reform have raised concerns about the state’s commitment to the arts in our schools. We need to recognize that education in the performing and visual arts is a critical aspect of individual development and enhances the educational experience. Cultural literacy is a vital part of our children’s preparation to reach their full potential. Music and art challenge students to master new skills, build self-confidence, and develop discipline and self-esteem. Indeed, studies have confirmed Plato’s observation that music and the arts train the brain for higher forms of thinking and enhance a child’s ability to reason. We not only need to protect our arts programs, we need to enhance them. Utah’s strong cultural heritage is rooted to the place we have made for arts in our public schools. Our schools should offer a full range of curricular and co-curricular opportunities in music, theater, dance, and the visual arts. We also should continue to support the Professional Outreach Program in the Schools (POPS), which brings arts performances to our schools. Through the arts, our students will learn to enjoy and embrace lifelong learning and more fully develop their creativity and understanding

Second, academic service learning should be a vital component of the educational experience. Service learning is a form of experiential learning that combines community service, classroom education, and structured reflection to connect academic learning with service performed. Through practical application of classroom lessons to meet community needs, service learning prepares our students to participate more effectively in the workplace and in the community. This problem-solving approach to teaching is valuable at multiple levels. For example, it:

• facilitates practical application of the curriculum
• provides our students with exposure to good role models
• enables our students to participate fully in civil society
• prepares our students to function effectively in the workplace
• develops problem-solving skills and deepens understanding
• fosters civic engagement as a lifelong activity and value

Many of our students and schools have committed to academic service learning. I have seen its value at all levels of education and am fully committed to support service learning as part of our children’s education.

As Lieutenant Governor, Karen Hale will take a leadership role in promoting arts and academic service learning education. Her record as a state senator on behalf of education and children generally and her commitment to arts and service learning education in particular make her especially well-suited to devote herself as Lieutenant Governor to these exciting and important areas of learning in Utah schools.

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.

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

In every business sector—from agriculture to mining, health care to finance, energy to biotechnology—knowledge and innovation drive our economy like never before. Dedicated researchers, creative entrepreneurs, innovative corporations, and skilled workers are now the primary forces behind long-term, sustainable economic growth.

Utah is well-positioned for strong economic growth: Our people are bright and hardworking, we have world-class colleges and universities, our quality of life makes Utah a great place to live and raise a family, and our natural surroundings and distinct cultural heritage make Utah wonderfully unique. Despite our strengths, Utah’s economy has been stagnant. Although there has been some economic improvement in recent months, many Utah families are struggling to make ends meet. We can do better.

Utah needs an economic framework for our future. We must invest in areas that will secure diversified, long-term, knowledge-based economic growth. My plan for economic growth is geared to provide Utah’s families with more high-paying jobs, Utah’s companies with more highly skilled workers, and Utah’s children with more hope for a bright economic future.

1. Developing a Skilled Workforce. The first step in preparing Utah for a knowledge-based economy is to develop a well-educated, well-trained workforce. That’s why the most important thing we can do to strengthen Utah’s economy is to improve our education system.
   
   Having a skilled workforce provides benefits both to individual Utahns and to the state. Skilled workers earn higher wages, have more employment opportunities, and enjoy greater job satisfaction. A skilled workforce also contributes to the state’s economic development by meeting the needs of businesses, providing greater tax revenues, attracting businesses to Utah, and helping establish an innovation-friendly economic environment.
   
   As Governor, I will work to build a skilled workforce by strengthening Utah’s public and higher education systems and by supporting workforce development through technical training, Community Skills Alliances, and a Jobs Education Program.
    
2. Fostering an Innovative Business Climate. Utah must invest in an infrastructure for innovation. In today’s changing economy, industries such as information technology, biotechnology, medicine, and financial services provide the greatest potential for growth. That’s why knowledge and innovation are now the primary drivers of sustainable economic development and personal income growth. As the global economy becomes less industry-driven and more knowledge-driven, it is imperative that our state seize a leadership role in fueling technological innovation. As Governor, I will seek to build a knowledge- and innovation-based economy by helping businesses and universities turn research into intellectual property and economically valuable products, processes, and services. We can do this by maximizing higher education’s ability to stimulate growth through research and development, encouraging research and development by private enterprises, increasing available venture capital, and supporting Utah’s Engineering Initiative.
    
3. Building a Great Quality of Life and a Sound Economic Infrastructure. As Governor, I will work to build a sound economic infrastructure and improve our already enviable quality of life. We can do this by strengthening Utah’s education system, improving basic government services, developing our transportation system, securing our water and energy resources, and improving access to quality health care. Utah’s quality of life will largely determine the pace of our economic development. To attract high-quality employers to Utah, we must ensure that Utah provides diverse cultural events, world-class recreational opportunities, and sensible environmental policies.
    
4. Developing High-Wage, High-Quality Jobs. Despite the economic boom of the 1990s, Utah’s wages relative to the rest of the country have worsened over the past twenty-five years. The problems associated with low wages are compounded by Utah’s sluggish job growth. Utah families deserve better. As Governor, I will promote higher wages by working to unify Utah’s economic promotion efforts, support Utah-based companies, and attract high-wage companies to our state.
    
5. Promoting Utah’s Small Businesses. Small businesses represent the largest sector of business in Utah and provide a tremendous benefit to our communities. They create most of our new jobs and most of our economic growth. In addition, small businesses tend to remain in the communities where they first opened for business. Many small businesses, however, never get a fair chance to succeed. Innovative and dedicated entrepreneurs often face unnecessary obstacles in trying to implement their business plans.
   
   As Governor, I will work to reduce unnecessary obstacles to opening and running a business by streamlining state-run administrative processes, assisting Utah’s Small Business Development Centers, and endorsing a “Buy Utah” Program.
    
6. Expanding and Strengthening Utah’s Rural Economies. Some of Utah’s most important industries are based in our rural communities. For example, agriculture and mining—industries that are operated largely in rural areas of the state—are traditional mainstays of Utah’s economic success. It is vital that we seek to strengthen these industries while working to give rural communities the necessary economic tools for our changing world economy.
   
   As Governor, my economic plan will focus particular attention on bringing long-term economic development to rural Utah. We can achieve this by helping traditional rural industries become more competitive, facilitating innovation in rural communities through the latest technologies and development clusters, promoting tourism, and supporting cultural enterprises in rural settings.
    
7. Making Utah a Premier Travel Destination. When it comes to tourism, Utah’s product is unparalleled. Our natural scenery is spectacular, our recreational opportunities are incomparable, and our cultural fabric is unique. Our tourism industry is not just a subject of state pride; it is also vital to Utah’s long-term economic health. Each year, tourists in Utah spend over $4 billion. Unfortunately, for many years now Utah has failed to have a tourism plan that matches the caliber of our tourism product. Utah did a terrific job in hosting the 2002 Winter Olympics, but the afterglow is quickly fading. Utah needs a tourism promotion plan that capitalizes on the success of that event—and we need it now.
   
   I will work to promote Utah as a travel destination by expanding our tourism promotion budget, developing and promoting high-quality recreational opportunities, focusing on destination recreation in rural Utah, and bringing more conferences and conventions to the state.
    
8. Protecting and Expanding Operations at Hill Air Force Base. As Governor, I will lead the fight to save Hill Air Force Base. Hill has been a mainstay of Utah’s economy for decades, and it plays a vital role in our nation's military. Hill Air Force Base’s future, however, is uncertain. Closing Hill Field would have dire consequences for Utah's economy. I understand the importance of Hill Air Force Base—particularly to the residents of Davis and Weber counties—and I will make preserving the Base a top priority in my administration. I pledge to work with Utah's congressional delegation, local leaders, and military officials to ensure that Hill Air Force Base continues and expands its important role in Utah’s economy.
    
9. Promoting Fiscal Discipline and Government Efficiency. A well-managed and efficient state government is important to fostering economic growth. That is why a central aspect of my economic plan will be to promote fiscal discipline and government efficiency. I will appoint an Efficiency in Government Commission, thoroughly evaluate the structure of Utah’s tax system, replenish and maintain Utah’s “Rainy Day” fund, and work to preserve Utah’s AAA bond rating.

For more information on my plan for Utah’s economic future, please visit my Web site at www.mathesonforgovernor.com.

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. Selling Utah as a low-wage economy is the wrong approach.

Despite the economic boom of the 1990s, Utah’s wages relative to the rest of the country have worsened over the past twenty-five years. The following table, from the U.S. Bureau of Labor Statistics, charts this worrisome trend:

Average Annual Pay

	1981	1990	1995	2003	2004proj.	2005proj.
Utah	$15,055	$20,074	$23,626	$30,602	$31,367	$32,214
U.S.	$15,689	$23,602	$27,846	$37,810	$39,279	$40,892
UT/U.S	96.0%	85.1%	84.8%	80.9%	79.9%	78.8%

These numbers are particularly troubling in light of our rising cost of living. We should not try to lure businesses to our state with the promise of highly skilled, low-wage workers. It is a mistake to compete on the basis of low wages. Instead, Utah should compete for higher-paying jobs on the basis of our skilled workforce, economic infrastructure, and entrepreneurial spirit. Utahns are notoriously hard workers. That does not mean, however, that it should take three jobs to earn a living. Utah families deserve better.

The problems associated with low wages are compounded by Utah’s sluggish job growth. Although there has been some improvement in recent months, our rate of job growth has declined steadily over the past decade. In 2002, in fact, the rate of job growth in Utah fell below 0 percent for the first time since 1954. By the end of July 2004, approximately 66,400 Utahns were unemployed. According to the Bureau of Economic and Business Research, “[t]here is a strong possibility that a low-wage recovery will follow Utah’s high-wage recession . . . . The immediate and long-term challenge is to create jobs with near equivalent wages to those lost in the state’s high-tech and steel industries."

Unifying Utah’s Economic Promotion and Recruitment Efforts.

Utah’s diverse efforts at economic development need to be coordinated to create a common Utah strategy and a “Utah brand.” Economic development is carried out at multiple levels of government and in the private sector. For example, the Utah Department of Community and Economic Development seeks both to assist local businesses and attract new businesses. Various cities, counties, and local chambers of commerce also have independent economic development efforts. The Economic Development Corporation of Utah also seeks to attract new businesses to the state as well. In addition, a wide array of other groups—such as the Utah Travel Council, the Utah Ski Association, and the Salt Lake Convention and Visitors Bureau—also advertise in hopes of bringing people to Utah and exposing them to the benefits of doing business in the state.

While each of these groups provides a valuable impetus for our economy, Utah needs a consolidated, clearly articulated plan to guide the coordination of our economic promotion efforts. Through coordinated efforts, we can create an effective “Utah brand.

As Governor, I will seek to coordinate our business recruitment efforts to enhance our success in creating new, high-wage jobs in Utah. We should look to attract more corporate headquarters to our state by emphasizing Utah’s unique comparative economic advantages (for example, our highly skilled workforce, our information technology resources, and our collection of family-history data for purposes of biomedical and genetics research).

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

My plan for attracting out-of-state companies to Utah is two-pronged: first, making sure Utah is “open for business”; and second, promoting Utah as a great place to live and work.

1. Opening Utah for Business
   
   Our message to the world should be this: “Utah is open for business!” Making sure Utah is set to compete in the worldwide economy will require creative and sustained leadership. As Governor, I will work to ensure that the costs of doing business in Utah are competitive with surrounding states, continue to improve and expand our dedicated workforce, modernize our business incentives, and sponsor the creation of Regional Industry Clusters
    
   
   • Reasonable Costs of Doing Business
     
     Although business costs vary depending on the industry, some costs affect almost all enterprises: the cost of land and buildings, transportation costs, utility expenses, quality and cost of labor, and state and local taxes. To expand Utah businesses and attract new businesses, Utah must be competitive in each of these cost categories. State and local governments should be “stewards” of a competitive business environment. As Governor, I will bring together the legislature, local government, civic institutions, and business groups to create competitive conditions for business growth.
      
   • Improving and Promoting our Dedicated Workforce
     
     As national birth rates have declined and the American population has grayed, an important factor in site selection for out-of-state companies is whether the region provides an abundant, high-quality workforce. Fortunately, this is one of Utah’s greatest strengths. We have the youngest population in the United States, and our working-aged population will be abundant for the foreseeable future. We also have a high concentration of foreign language-speakers.
     
     In addition, Utahns graduate from high school and college at a higher rate than most states. Parents and families understand that a high-quality education is essential for their children’s success. We, as a state, must also recognize that quality education is the most important key to Utah’s long-term economic growth.
      
   • Modernizing Business Incentives
     
     Utah should use its business recruitment incentives carefully. States spend approximately $15 billion dollars every year on company-specific incentives. But all too often companies benefit from tax incentives without meeting their end of the bargain. States give incentives to businesses with the expectation of higher wages and economic growth, not low-wage jobs in non-growth industries.
     
     As Governor, I will work to modernize our incentive tools, such as the Industrial Assistance Fund, with features that make companies responsible to the taxpayers. It is important that incentive agreements describe the obligations of the benefiting company to the community and that these agreements are enforced. We also need to ensure that existing Utah companies receive fair opportunity and treatment in this process.
     
     Utah should focus not just on job creation, but on good-job creation. Incentive agreements should be primarily reserved for those companies that promise to deliver high-quality, high-wage jobs to Utah. Moreover, I would require that benefiting companies report the number of, and wages for, newly created jobs. I would also consider implementing a high-wage tax credit to companies that create high-wage jobs for Utahns.
      
   • Sponsoring the Creation of Regional Industry Clusters
     
     Although developments in technology make it possible to do business all across the world, the most significant advances often come from businesses working shoulder-to-shoulder. Economic synergy frequently results when businesses from related industries “cluster” together in a geographic region. The success of Silicon Valley is perhaps the most obvious example of the value of creating regional industry clusters.
     
     I will work to create the conditions for regional industry clusters by organizing Utah’s economic development initiatives around clusters, rather than around individual companies. For example, Community Skills Alliances (as discussed above) would help create regional industry clusters by funding industry training programs through a group of firms in a similar industry, rather than through just one company.
      
2. Promoting Utah as a Great Place to Live and Work
   
   Utah’s quality of life will largely determine our competitiveness in attracting businesses to the state. As discussed above, it is vital that state and local governments understand the importance of providing a solid, 21st-century economic infrastructure.
   
   Of equal importance is getting the message out. Utah is a cosmopolitan state with magnificent and varied landscapes, a desirable quality of life, and diverse cultural legacies. During the 2002 Winter Olympics, we announced to the world that Utah was on the map. Today, it is time to announce that Utah is open for business.

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

Our economic development efforts should focus more on starting and expanding Utah businesses. Most high-quality jobs in Utah are created by existing or newly created Utah businesses. A company that starts and grows in Utah is more likely to stay in Utah; many non-native enterprises, in contrast, are more likely to move facilities as economic circumstances change. Therefore, we should not favor out-of-state recruitment over the interests of Utah’s existing companies.

Utah’s high birth rate—combined with the strong desire of many of our children to remain in Utah—is the primary driver of Utah’s population growth. This trend is understandable: Utahns recognize the value of our unique family-oriented culture and our unmatched physical environment. Therefore, the question is not whether Utah will grow, but whether our economy will provide family-sustaining, high-quality jobs for our children.

The world’s economy is more interconnected and competitive than it has ever been. We must create an economic environment in which Utah’s businesses can compete regionally, nationally, and internationally. That is why we must ensure that Utah’s businesses are competing on a level economic playing field. To this end, I will seek to improve the efficiency of Utah’s economy by promoting regulatory consistency, professionalism, and fairness.

State government must also work closely with local government and business leaders to improve rural economies. That means collaboration and support on education, transportation, and water projects. It also means cooperation on community planning and tourism promotion.

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?

Utah must invest in an infrastructure for innovation. Indeed, in today’s changing economy, the primary elements of sustainable economic development and personal income growth are knowledge and innovation. Economic growth will be driven mainly by new discoveries in technology, science, and medicine. As the global economy becomes less industry-driven and more knowledge-driven, it is imperative that our state seize a leadership role in fueling technological innovation.

As Governor, I will seek to build a knowledge- and innovation-based economy by helping businesses and universities turn research into economically valuable products, processes, and services. We can do this by maximizing the ability of higher education to stimulate growth through research and development, encouraging research and development by private enterprises, maximizing available venture capital, and supporting Utah’s Engineering Initiative.

1. Maximizing Higher Education’s Ability to Stimulate Growth through Research and Development
   
   Utah’s research universities will continue to be at the heart of our research and development efforts. Through strong state leadership, we can build the research capacity of our universities and increase the transferability of university-based innovations to the market.
   
   Our research institutions are an important catalyst for economic development. According to the National Science Foundation, Utah has one of the most competitive academic research systems in the country.
   
   The quality of our research institutions is due largely to the fact that Utah is in the top quarter of states in securing federal research grants. For example, in fiscal year 2004, the University of Utah received $287 million in research grants and fellowships. The University of Utah is now working to establish world-class research at its new Brain Institute, and it is building upon its international leadership in the fields of genetics, medical informatics, and computer imaging—all areas that offer strong prospects for future research funding and new technology-based industries.
   
   Utah State University, which recently received the Department of Commerce’s Rural Economic Development Award for its utilization of market strategies to enhance rural economic development, received $141 million in fiscal year 2004. Its botanical and hydroponics research promises innovation in crop development. And although Brigham Young University is not a state-funded institution, its groundbreaking research is an important contributor to the state’s economy, and it is producing new patents and spin-off businesses at a healthy pace.
   
   We must build upon our successes. Utah is positioned to become a world leader in new-product innovation and a standard-bearer in technology-based entrepreneurialism. Our prosperity in the future will largely depend upon our ability to maximize higher education’s potential for stimulating economic growth. As Governor, my efforts will include the following:
    
   
   • Strategically Invest in Research Universities’ Capacity to Generate Scientific and Technological Innovation
     
     It is vital that Utah invest in research and development in the most promising fields, including information technology, biotechnology, and pharmaceuticals. Strengthening higher education’s research base in key industries will spur economic growth and create more high-wage jobs. One important means for generating research innovation is recruiting the most-talented researchers to our universities. Top-notch researchers bring the creativity, the reputation, and the funding necessary to achieve our goals.
     
     As technological innovations are implemented in the marketplace, Utah will solidify its reputation as a leading applied-innovation state. We can ensure that innovations are implemented in the marketplace by assisting Utah businesses and universities to commercialize expanding research. The University of Utah’s Research Park and Utah State University’s Innovation Campus are playing important roles in making this happen.
      
   • Increase the Flexibility of Universities to Use Research Dollars and Transfer Technology Capabilities
     
     Given our rapidly changing capacities and understandings in high-technology research, it is important that universities have more flexibility in their use of research funds. Increased flexibility will allow universities to take advantage of promising new research opportunities and to use the latest equipment and techniques in pursuing that research. That’s why I support proposed constitutional amendment #2, which would allow universities to maintain a small equity interest in enterprises spun out of their innovations.
     
     We must also work to support, refine, and strengthen technology-transfer capabilities at our research institutions. These efforts could be modeled after the University of Utah’s new Technology Commercialization Project. This project, funded by the University of Utah’s Research Foundation, encourages technology transfer and generates private investment by providing up to two years of funding for high-risk, fast-track research. This is another example of how university research can directly spur economic development.
      
   • Establish a Private Sector-Guided Utah Business Coalition for Higher Education & Economic Innovation
     
     As Governor, I will help expand collaborative university and private sector relationships and encourage private gifts for university research. In particular, I will seek to establish a private sector-led Utah Business Coalition for Higher Education & Economic Innovation. This Coalition will serve as a catalyst for economic growth by promoting research and development in Utah's key growth industries.
     
     The Coalition would work to expand cooperative relationships between our research universities and Utah’s most innovative businesses. For instance, the Coalition could encourage businesses to provide employment opportunities for promising students, solicit private donations for university research efforts, and advise universities on the needs of local industry. By facilitating research and business development collaboration between universities and the private sector, we will build effective relationships and generate economic growth in key sectors of our changing economy.
      
2. Encouraging Research and Development by Private Enterprises
   
   Economists generally agree that most companies spend too little on research and development. Usually this is due to the high cost of research and the fact that companies seldom keep all of the benefits of their innovations. Businesses are particularly hesitant about early-stage (and therefore riskier) forms of research and development. As Governor, I will work to encourage research-based innovation by private enterprises.
   
   We must carefully assess the structure of Utah’s research-and-development tax credit and other supportive research-and-development strategies to determine their appropriate use in stimulating economic development. Promoting private research and development will foster an innovative business climate for Utah’s key growth industries. Since these industries also tend to provide higher-wage jobs, my focus on growth industries will aim to increase personal income for many Utah families.
    
3. Increasing Venture Capital for Target Industries
   
   Although ideas are essential to job creation and economic development, many great ideas are never realized because entrepreneurs have limited access to capital. Encouraging capital investment in Utah’s innovative businesses is a key element to long-term economic growth in Utah. It is particularly important that we ensure adequate capitalization in rapidly growing industries such as biotechnology, information technology, financial services, and destination tourism. The Centers of Excellence Program and the recently enacted Venture Capital Enhancement Act are steps in the right direction, but more must be done to secure adequate funding for Utah’s entrepreneurial endeavors.
   
   As Governor, I will seek to increase Utah’s access to venture capital in the following ways:
    
   
   • Combining Entrepreneurial Training with Capital Support for University-Related Start-ups
     
     The University of Utah Eccles School of Business, in partnership with private funding sources and professional investment managers, has developed an exciting program that combines practical educational experience with business start-up support. Under professional supervision, business students invest seed capital in pioneering start-up firms. Investment management fees go toward student scholarships, and investment returns are channeled back to the fund itself.
     
     This innovative combination of investment education with the commercialization and financing of university research is exactly what we should be doing to foster economic development in Utah. As Governor, I would support similar efforts to combine entrepreneurial training with capital support for taking university research to market.
      
   • Attracting Federal Grants by Establishing a Small Business Innovation Grant Program
     
     The federal government sets aside over $2 billion for research and innovation grants each year. A large portion of these funds is earmarked for small business development grants. Unfortunately, Utah’s share of federal small business grants has decreased significantly over the last several years. This is due to Utah’s lower-than-average rates of application and success.
     
     As Governor, I will develop a coordinated plan for attracting federal small business grants back to Utah companies, including those in rural areas of the state. Utah’s Department of Community and Economic Development is well-situated to support and facilitate a Small Business Innovation Grant Program. The program will be geared to increase awareness of capitalization opportunities and support the efforts of Utah’s businesses and entrepreneurs in creating quality grant proposals.
     
     Although the private sector is best situated to capitalize new and existing companies, the governor’s office should help facilitate this process. In addition to those initiatives listed above, I will work to attract venture capital firms to Utah, encourage investment in Utah companies, and support legislation that creates an innovative business climate.
      
4. Supporting Utah’s Engineering Initiative
   
   In a technology-driven economy, it is imperative that Utah have a strong supply of qualified engineers. In 2000, Utah’s Engineering Initiative was announced. Its primary objectives were to double the number of engineers graduating from Utah’s colleges and universities, increase the number of engineering faculty, and improve our engineering research facilities. To date, the Initiative is on course to succeed. To achieve its goals, however, we must make additional funding for the Initiative a high priority.
   
   As Governor, I will lend my full support to ensuring that the objectives of the Engineering Initiative are met. As a result, Utah’s economy will be adequately staffed for long-term growth in key technology-based sectors.

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?

Some of Utah’s most important industries are operated largely in our rural communities. For example, agriculture and mining are traditional mainstays of Utah’s economic success. We need to strengthen these industries while working to give rural communities the necessary economic tools for our changing world economy. The recently established Governor’s Rural Partnership Board is a good framework within which to set a rural action agenda for economic growth.

As Governor, my economic plan will focus particular attention on bringing long-term economic development to rural Utah. This can be achieved by helping rural businesses become more competitive through cluster development, supporting innovation in rural communities by strengthening our technological infrastructure, building on innovative small business programs, and supporting cultural enterprises in rural settings. In addition, strengthening Utah’s tourism industry will particularly benefit rural Utah.

1. Helping Rural Businesses Become More Competitive through Cluster Development
   
   Industries that tend to be rural—agriculture and mining, for example—also tend to be highly competitive. We need to identify regional business development opportunities throughout the state. By pooling the resources and efforts of geographically concentrated companies in a particular industry, Utah’s rural economies will be better positioned to compete in these areas. Cluster-focused economic development—which brings together related companies, suppliers, and educational institutions—has improved wage performance in some areas by 13 percent. That is why I have proposed the formation of Regional Industry Clusters and Community Skills Alliances (both of which I discussed above). These initiatives will be of particular value to Utah’s rural communities.
    
2. Supporting Innovation in Rural Communities by Strengthening our Technological Infrastructure
   
   Although the 1990s provided an economic boom for much of Utah, our rural communities did not share equally in that success. This is due in part to our failure to fully integrate technological innovation into Utah’s rural enterprises. As Governor, I will support efforts to facilitate innovation in our rural communities. By utilizing new technologies, we can ensure that Utah’s rural industries are players in today’s new economy. These steps will allow the Utah Smart Site Initiative to reach its full potential in developing technology-based jobs in rural Utah.
   
   We must develop full access to the latest technology in rural areas. Increasingly, people are as concerned with their technological infrastructure as they are with the physical infrastructure of their communities. This is particularly true for rural business owners, who depend on speedy information and innovative technologies as much as, if not more than, their urban counterparts. By permitting decentralization of residences and workplaces, technology will allow rural enterprises to end the “tyranny of distance.” As Governor, I will work with the private sector to provide our rural communities with reliable access to the latest technological innovations.
    
3. Building on Innovative Small Business Assistance Programs
   
   Small business development is particularly important in rural areas of the state. As Governor, I will pay special attention to building on innovative small business assistance programs in rural parts of the state.
   
   For example, the Southeastern Utah Association of Local Governments (SEUALG) created an innovative small business assistance program. With funds from the Utah Department of Workforce Services, the program offered business management and development training to people with low incomes. Those who successfully completed the training course and developed a promising business plan were eligible for a grant of up to $10,000. In the three years of its existence, participating businesses succeeded at an unusually high rate. We must find ways to use similar innovative models in other rural (and urban) areas of the state.
    
4. Supporting Cultural Enterprises in Rural Settings
   
   Rural communities derive tremendous benefits from local cultural centers and events. For instance, the College of Eastern Utah’s outreach program in San Juan County, the Cedar City Shakespeare Festival, Cache Valley’s Utah Festival Opera, and the Moab Music Festival not only serve to unite communities and improve our quality of life, but also provide important economic stimuli to their regions. These endeavors strengthen rural economies by enhancing the quality and image of local communities as places to live and work, by attracting quality businesses, and by establishing the communities as multi-seasonal recreational destinations. In the Matheson Administration, support for cultural enterprises in rural settings will be an important tool for rural economic development.

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

I am an educator. As Dean and professor at the University of Utah law school, I have helped hundreds of young Utahns enter the workforce with the tools they need to succeed. Helping young people achieve their professional goals is one of the best ways to improve our state’s economy.

I have been a prosecutor. As U.S. Attorney for Utah, I defended our nation’s interests in civil and criminal cases. I have an understanding of how important law enforcement is to creating an environment where businesses can thrive.

I have private sector experience. I have represented business clients in a variety of areas such as financial services, medical care, media, railroad, and public utilities.

I have experience leading public agencies. As U.S. Attorney and a law school dean, I have prepared and managed budgets, directed personnel, conducted strategic planning, and raised funds. Most importantly, I have brought people together to achieve common goals. My background has given me the leadership experience that Utah needs.

I have developed a plan for Utah’s economic future. You can view the plan in its entirety by visiting my Web site at www.mathesonforgovernor.com.

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?

Securing our water future presents a daunting challenge, as well as a great opportunity. Utah is the second-driest state in the nation. Although we historically have had adequate water supplies, there is little to spare, especially as we experience a sixth year of drought. At current use rates and under future population estimates, total municipal and industrial water use in Utah is projected to increase from approximately 900,000 acre-feet per year now to over 2 million acre-feet per year in 2050. We must maintain and develop the state’s water storage and delivery infrastructure.

Even with aggressive conservation and associated per capita reductions in water use, rapid population growth will double our overall water demand by 2050. Utah will need to develop new water supplies to meet this growing demand. The relatively less expensive water development projects have mostly been constructed. The majority of Utah’s undeveloped water supply is located in the Colorado River drainage, away from areas of greatest growth along the Wasatch Front, and in the Bear River drainage. Utah’s share of water in these river systems is allocated under complex, interstate compacts negotiated decades ago.

Since those compacts became effective, demographics have changed and weather patterns have reduced the amount of water in the river systems. Although some western states are already using their full share and more, Utah is using only two thirds of its Colorado River allocation. There are growing pressures to transfer some of Utah’s undeveloped allocation to other western states. To protect its water supply, Utah needs a Governor who can understand the legal complexities of its agreements with other states and aggressively protect the water resources that will be necessary for our future needs.

• Protect Our Watersheds – The starting point is protection of Utah’s watersheds. Watersheds include all the land in which water drains to a certain point, such as a stream, lake, river, or wetland. Utah’s watersheds are critical to our future. As the composition of vegetation in some of our watersheds has changed over time – for example, fewer aspen and more conifers – careful, scientifically-based watershed management is even more important to water supply and quality. Governor Walker’s Adopt-a-Waterbody Initiative is a welcome program and has focused public attention on watershed significance. State and local water planning must make strategies for watershed protection a top priority.
   
• Explore Temporary Interstate Leasing of Utah’s Water – There is significant demand in other western states for Utah’s unused share of the Colorado River. In the future, we will need our full entitlement to that water. Until then, rather than allowing our water to flow downstream without compensation, there may be an opportunity to lease that water on a temporary basis to other states. The financial return could be used to address compelling needs in our state, including implementation of elements of my water plan (see mathesonforgovernor.com). As Governor, I will explore opportunities for interstate marketing, but only on the condition that we not put in jeopardy Utah’s rights under the Colorado River Compact. 
    
• Pursue Efficient Development of Major River Sources - Utah currently is contemplating large development projects to bring water from the Colorado River, Green River, and Bear River to major population centers. Among these projects are the final pieces of the Bonneville Unit of the Central Utah Project that will bring water from the Colorado River.

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

The policy preference should be voluntary conservation when possible. The requirement of developing water conservation plans and other measures as outlined above should be supported.

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

Utah should remove disincentives to conservation. For example, in drought years the holder of a water right should not be at risk of loss of the right due to temporary nonuse. Incentives through pricing structures should be pursued at the local level with state encouragement and technical assistance.

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?

Currently Utah law provides for 1/16 cent of the sales tax to help fund water and wastewater projects at the local level. This source of funding has been critical to many areas throughout the state. Our water infrastructure needs are so great, including both new projects and repairs, that this allocation should continue. We should further consider whether the cap on this funding source should continue in its present form. In the long term, we need to explore alternative sources of funding, continue to support local water project needs, and work to achieve flexibility in the general fund. We also need to develop a long-term financing strategy, including bonding and federal funding consistent with the statewide water planning process.

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?

Health care costs are again increasing much faster than general inflation and pose serious problems for business, government, and individuals

• Businesses find health care to be their most rapidly growing cost and are struggling to offer insurance to their employees. The high cost of health insurance is disadvantaging our export businesses in worldwide competition.
   
• Governments, colleges, and school districts find that health care costs are draining new revenues and limiting expenditures for education and other public services.
   
• Individuals buying their own insurance find the premiums to be prohibitively high. Those with insurance from work fear that increasing costs will cause employers to cut back on health insurance coverage.

The causes of increasing costs are complex. They include new medical technologies, increased use of medical care, rising administrative costs, and the challenges of reducing waste in health care systems. State governments are not primarily responsible for most aspects of health care, but they can help address the problems of costs. Success in managing costs will reduce the state’s financial burdens, better enable employers to provide quality health care insurance, and enhance Utah’s competitive advantage for business development. This effort deserves high and continuing priority.

• We must carefully manage our publicly financed health insurance programs to cut costs, especially prescription drug costs, and to extend these savings to others. For example, we should work to reduce pharmaceutical costs by using purchasing pools, exploring multi-state purchasing, and extending to those without good insurance coverage the discounts and rebates the state achieves though its purchasing power. We should support efforts to provide health care information, such as the state’s Prescription Drug Assistance Program, which assists with eligibility for coverage and availability of low-cost prescription drugs.
   
• We must more fully develop disease prevention and health promotion programs, one of the most important and effective ways to cut costs in both the private and public arenas. As Governor, I will work with the Utah Department of Health and the health care community to advance these campaigns. We have seen progress in several areas. Well-known programs include Baby Your Baby, Immunize by Two, and the Tobacco Prevention and Control Program. Less well known, though very successful, are the Back to Sleep campaign, which produced a dramatic drop in Sudden Infant Death Syndrome (SIDS), and the Hepatitis A vaccine requirement, which reduced hepatitis cases.
   
• These programs – and others like them – improve health care through healthier choices and encourage early treatment for preventable diseases and conditions. We should make public health a core state government program. We should (a) encourage employers to implement exercise and stress reduction programs; (b) assure safe, accessible areas for Utahns to enjoy outdoor exercise; (c) serve our children healthy, nutritious meals at home and at school; and (d) increase public safety through seat belt and anti-drunk driver educational campaigns and accompanying legislation.
   
• We need state leadership to help improve our health care delivery system. The Governor, through the Department of Health, the State Insurance Department, and other state agencies should provide effective leadership to foster collaborative efforts. Utah’s health care community has an important history of cooperative efforts:
   
  • The Utah Department of Health recently worked with health care providers to share information aimed at reducing unnecessary and over-utilized health care, and at reducing medical errors.
     
  • The diabetes care project is reducing the complications of, and hospitalizations from, diabetes.
     
  • National studies show that many medical procedures are unnecessary and/or have high rates of error. Although evidence shows that unnecessary or harmful medical care is less likely in Utah, studies also show that there is room for improvement. We can do better by bringing leadership to this challenge and working with the health care community to improve quality and address health care costs.
     
  • We need to continue to explore fair and efficient procedures to resolve disputes about medical care, including alternative dispute resolution options.

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?

Medicaid, CHIP, and Medicare all play a vital role in Utah health care. An important way to increase our citizens’ access to health care is to assure that public health insurance programs are efficient, effective, and accessible.

Foremost among the public health insurance programs is Medicaid. The federal government pays nearly three quarters of the cost of this program. The benefits of Medicaid for low-income people and for the state health care system can be extended by:

• Adjusting eligibility to cover more of the uninsured.
   
• Improving disease prevention and health promotion programs to reduce the medical needs of the enrollees.
   
• Expanding responsible auditing and educational programs to reduce inappropriate care, fraud, waste, and abuse.
   
• Diligently monitoring health payments to ensure that third-party private payors are paying their contracted share.

As Utahns age, their need for medical services increases. Many seniors are challenged to find adequate health care coverage upon retirement. Accessible, affordable health care is essential to a good quality of life. We must do better to ensure seniors have the health care they need to live full, rich, independent, and active lives. Although the following measures are important to seniors, some of them apply as well to all Utah citizens.

• Address the cost of prescription drugs. According to state reports, about one-fourth of older Utahns take five or more prescription drugs on a regular basis. Nearly one-fourth of Utahns age 55 and older spend at least $100 per month on out-of-pocket prescription expenses, and six percent spend $200 or more per month. With the rising cost of prescription medication, we must ensure that older Utahns and their families receive clear, updated, useful consumer information, including information about discount drug programs and changes in federal Medicare laws.

I would encourage a statewide consolidated effort to provide Utahns with the help they need in obtaining safe and affordable prescription drugs. Utah’s Prescription Drug Assistance, which assists with information about obtaining drugs at reduced cost, is a positive step. The AARP and Area Agencies on Aging are currently providing information on how to obtain prescription drugs at a reduced price. We should explore the possibility of state government, perhaps in concert with other states, negotiating with individual pharmaceutical companies to provide prescription drugs at discount rates. Such programs, which utilize the purchasing power of the state, have been successful in other states in improving the availability of affordable prescription drugs.

• Address the serious nursing shortage throughout our state. I support the Nursing Initiative to increase the number of faculty to train our nursing school students. The nursing shortage is a challenge throughout the state. The particular health care needs of Utahns in rural areas deserve more attention. We must provide incentives to physicians, nurses, and other health care providers to practice their professions in rural areas. We should consider an array of incentives, including help with scholarships, student loans, and housing. We must also realize the power of the Internet and telecommunications to bring accurate, timely medical care to our rural areas.
   
• Help older Utahns remain in their homes and communities with adequate support and accessible service. Almost 90 percent of older Utahns live at home and hope to live out their lives there. Our communities are enriched when people of all ages can live, work, and care for each other. Many seniors living at home require some form of assistance. A physical disability or limitation may necessitate some type of assistance or a home modification. Home health care is not only the preferred alternative for seniors, it is also more cost effective. Home health care costs around $7,000 per year, while the cost of a nursing home or a long-term facility can reach $40,000 per year. Beyond medical help, other services, including prepared meals and modest help with personal care or home chores, can make all the difference in the ability of seniors to maintain their independence at home.
   
• Find creative ways to cover the actual costs of serving older persons who need constant care and medical assistance in nursing homes or in residential assisted living. We should support efforts to help people save for long-term living. This includes savings programs as well as encouraging the purchase of long-term care insurance. We should further recognize that some seniors need Medicaid waivers to help cover the costs of home care, assisted living, and other long-term care options. We also should facilitate better access to information about Medicaid programs that support long term care for eligible seniors.
   
• Provide seniors adequate protection of their individual rights, whether at home, in an assisted living, or long-term care facility. To ensure that older Utahns are adequately represented and protected, I pledge my support for the Long-Term Care Ombudsman Program, which monitors state-licensed nursing homes and assisted living facilities to ensure seniors are receiving appropriate support and care.

For other points responsive to this question, see the responses to questions 1 and 3.

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?

Utah’s children should have access to quality health care, but approximately 80,000 of our children are uninsured. Effective programs such as Medicaid and the Children’s Health Insurance Program (CHIP) provide important health services to many of Utah’s low-income children, but these programs are not fully utilized. We can do better, as state finances allow, by.

• Opening Medicaid to More Low-Income Children – Currently in Utah, a low-income family that qualifies for Medicaid based on its income will not qualify for the program if the family has modest assets. In other words, if a low-income family owns a modest car or savings account, it may not qualify for Medicaid, depending on the value of these assets. Utah is one of only four states that have not eliminated this asset test for children. As a result, 6,000 – 7,000 Utah children in households with incomes below the federal poverty level are enrolled in CHIP instead of Medicaid. Elimination of the asset test would allow these children to enroll in Medicaid, a more comprehensive health program that is intended for children below the federal poverty level. This, in turn, would open up the CHIP program to more children. This goal should be a high priority for the use of funds from efficiencies, growth, and reallocations. An interim step would be to explore raising the asset threshold amounts.
   
• Creating a Waiting List for CHIP – Tens of thousands of children are eligible for CHIP but are unable to take advantage of the program when enrollment is closed. These children have no choice but to wait for open enrollment announcements because there is no waiting list for them to sign ahead of time for future enrollment openings. This places a burden on uninsured children and their families and may reduce the efficiency of the CHIP program. Until we can offer coverage to all eligible children, we should investigate whether a waiting list will improve the program’s operation.
   
• Removing the Enrollment Cap from the CHIP Program –The federal government provides four dollars for every one dollar that Utah allocates for its CHIP program. The state has not used portions of these federal funds – about $45 million – that were allocated in the past and that remain available to Utah. By fully utilizing the CHIP funds and by eliminating the asset test for the Medicaid program, we may be able to remove the CHIP enrollment cap. If this happens, we would not need to have open enrollments or waiting lists. This will ensure that all children in low-income families have access to basic health care.
   
• Child Immunization –Child immunization is an important part of preventive health care. In 2000, nearly 90% of children 24 to 35 months of age had completed their recommended immunization series. Our “Immunize by Two” campaign has been successful, but we have to continue working to reach our goals and concentrate on ensuring the health of our youngest Utahns.

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

The federal government is better positioned than state governments to expand health care coverage for more people. But until there is federal action, we should consider several steps, within budget availability, to help extend coverage and to reduce the problems of inadequate coverage.

1. To extend coverage, we should:
    
   • Make more use, as state finances allow, of Medicaid, by, for example, making reasonable changes in the asset test to expand eligibility.
      
   • Use the $45 million of unspent federal money for CHIP, as state finances allow, to extend coverage of children and to assure provider reimbursement for the care of these children, and thus reduce cost shifting that makes other insurance more expensive.
      
   • Continue to encourage risk pooling by small employers and continue to seek policies that facilitate such pooling. Although Utah’s many efforts at risk pooling and affordable basic coverage have achieved only modest success, we should continue to search for the right combination to help small employers maintain and extend coverage.
      
   • Extend and coordinate the efforts to improve the quality of care, reduce medical errors, and reduce unnecessary care to contain health care costs and thus make insurance more affordable.
      
   • Use the state’s leadership and bargaining power to improve available insurance products and to increase their use by employers.
      
2. To reduce the problems of inadequate coverage, we should:
    
   • Extend the cost savings of state negotiated prescription drug prices to low-income persons whose drug costs are not covered by insurance.
      
   • Continue to build upon and assess the experiments and successes of Utah’s health care providers to coordinate primary care in ways that avoid more serious health problems and their higher costs. These include the Primary Care Network developed with the Utah Department of Health and the Health Access Project developed by the Salt Lake Valley Coalition.
      
   • Improve health education, immunizations, and other public health programs to reduce the extent, seriousness, and costs of health problems.

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?

We must secure the safety of Utah’s children. Protecting them from criminal violence and exploitation, regardless of the source, is a fundamental duty. This goal must be a priority for federal, state, and local law enforcement and social service agencies. As the United States Attorney for the District of Utah, I made child protection a top priority. As Governor, I will ensure that the state investigative and enforcement authorities and the state agencies responsible for intervening and protecting children are held accountable for making our policies succeed. I will do this by.

• Protecting Children from Violence and Exploitation – Offenders who have committed sexual violence on a child, those who have invaded the Internet to prey on children, and anyone who has committed physical violence against a child must be punished and kept from hurting again. This must be done through a combination of proper sentencing and effective treatment programs. I favor aggressive and long sentences for those who cannot be treated effectively. I will work with the Department of Corrections and the Legislature to make policy in this area to ensure that our policies and our actions protect every child in Utah from those likely to prey on them or do them harm.
   
• Helping Child Victims – We must have effective programs to help children who are victims of sexual, physical, mental, or emotional violence. We must help them return to normal lives. This is important not only for the future of every child who is a victim, but also for breaking the cycle of violence that we know often results when children who are victims are not identified and treated early and effectively.
   
• Keeping Guns Out of Schools and Places of Worship – I support the Second Amendment of the U.S. Constitution and the Utah constitutional provision regarding the right to bear arms. I recognize and support law-abiding citizens’ having the right to own and carry firearms, provided they meet state requirements and have obtained appropriate permits. Like other important rights, there are appropriate times and places for their exercise. For safety reasons, we do not generally allow guns in airports or courts. For our safety and the security of our children, I support a similar policy for schools and places of worship.

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

Identity theft happens when the perpetrator uses your name, social security number, bank account number, or other personal information to commit theft or fraud. This crime threatens every one of us. It can be most devastating for our older and other vulnerable citizens. I favor aggressive local, state, and federal prosecution of fraud generally. I especially favor aggressive prosecution of identity fraud. I will support programs to provide local and state law enforcement the tools they need to be effective in this area. The Utah Attorney General’s Office Identity Fraud Unit provides important services, including public information, prevention, and prosecution. Utah has an Identity Fraud Act that should be reviewed periodically to determine if it is meeting its objective.

Much identity theft occurs in the cyber world. Our vulnerability to international identity theft is particularly acute on the Internet. For these reasons, I favor controls on the wide unregulated distribution of identity data across the Internet. I support measures that will protect the Internet from identity exploitation in this way. As Governor I will encourage state agencies to investigate cybercrime and seek tough state or federal prosecution of those who engage in such conduct. Through the State Division of Financial Institutions, the state should work with financial institutions to develop policies to safeguard identity information to reduce the risk of theft. The state should work with Internet Service Providers (ISPs) in Utah and partner with other states and the federal government to address these issues not just locally, but nationally and internationally as well.

Investigation and prosecution of those engaged in identity theft is vital, but in many cases the damage has already been done, especially in the case of our elderly and more vulnerable citizens, by the time it comes to the attention of criminal investigators. For that reason, I support programs to educate Utah citizens about identity theft and provide them with the latest information and assistance to help them take measures on their own to avoid becoming victims in the first place.

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

Because higher education is so important to our state’s future, I have developed a detailed higher education plan.  This plan, entitled “We Can Do Better:  A Pledge to Higher Education,” is available on my Web site at www.mathesonforgovernor.com.

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

We must develop high-wage, high-quality jobs. Despite the economic boom of the 1990s, Utah’s wages relative to the rest of the country have worsened over the past twenty-five years.  The following table, from the U.S. Bureau of Labor Statistics, charts this worrisome trend:

Average Annual Pay

	1981	1990	1995	2003	2004proj.	2005proj.
Utah	$15,055	$20,074	$23,626	$30,602	$31,367	$32,214
U.S.	$15,689	$23,602	$27,846	$37,810	$39,279	$40,892
UT/ U.S.	96.0%	85.1%	84.8%	80.9%	79.9%	78.8%

These numbers are particularly troubling in light of our rising cost of living.  We should not try to lure businesses to our state with the promise of highly skilled, low-wage workers.  It is a mistake to compete on the basis of low wages.  Instead, Utah should compete for higher-paying jobs on the basis of our skilled workforce, economic infrastructure, and entrepreneurial spirit.  Utahns are notoriously hard workers.  That does not mean, however, that it should take three jobs to earn a living.  Utah families deserve better.

The problems associated with low wages are compounded by Utah’s sluggish job growth.  Although there has been some improvement in recent months, our rate of job growth has declined steadily over the past decade.  In 2002, in fact, the rate of job growth in Utah fell below 0 percent for the first time since 1954.  By the end of July 2004, approximately 66,400 Utahns were unemployed.  According to the Bureau of Economic and Business Research, “[t]here is a strong possibility that a low-wage recovery will follow Utah’s high-wage recession . . . . The immediate and long-term challenge is to create jobs with near equivalent wages to those lost in the state’s high-tech and steel industries.” 

As Governor, I will work to bring higher wage jobs to Utah, and higher education must play an important role in that process.  I have released a detailed economic plan that addresses the need to improve the quality of jobs for Utah’s well-educated, highly skilled workforce. This plan is available in its entirety at www.mathesonforgovernor.com.

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

1. Long-Term Tuition Policy – Given the high quality and the tuition of Utah’s colleges and universities, our institutions are consistently recognized as “best buys.”  But with tuition costs rising, Utah needs a long-term plan to accommodate access, improve quality, and increase opportunity.  To achieve greater consistency and predictability, tuition should be adjusted consistent with the long-term funding goals of a sound tuition policy.
    
   Utah’s higher education system needs a long-term funding policy.  This policy should balance the partnership roles and funding responsibilities among the state, students, and our colleges and universities. 
    
   In the past, funding higher education enrollment has ebbed and flowed with the ebbs and flows of the economy.  When the economy has been strong, enrollment growth has been largely funded and tuition increases have been modest.  During recessions, however, the state has drastically cut funding and forced large tuition increases.  This is particularly problematic because many people return to school during economic downturns.
    
   We need to develop a long-term tuition policy that the legislature can embrace and support.  The new policy should define the roles of the state, the students, and the institutions.  The policy should also establish longer-term funding goals that provide more consistency and predictability in planning for any tuition increases.
    
2. Preserving the opportunity for a higher education– With tuition rates increasing faster than rates of inflation, there is a danger that higher education will be restricted only to those who can afford it.  Many talented individuals who could contribute much would be lost if we do not provide assistance to those unable to afford rising prices at our colleges and universities.
    
   Unfortunately, students from families with lower incomes attend college in significantly lower proportions.  A student’s chances of earning a bachelor’s degree by age 24 doubles with each quartile increase in family income.  For example, a student born into the top family income quartile is eight times more likely to have a bachelor’s degree by age 24 than a student born into the bottom quartile of family income. 
    
   With tuition rising and federal student aid programs emphasizing loans rather than grants, we run the risk of discouraging many talented students from families with lower incomes from attending our colleges and universities.
    
   Many Utahns rely on federal student aid programs.  Utah ranks 31st in the proportion of its students receiving these federal grants.  About 25 percent of undergraduates in Utah receive grants from the federal government’s Pell Grant program—designed to aid the neediest students.  As a state, however, we rank low in terms of state-based aid.  In state matching funds for students from families with low incomes, Utah ranks 42nd out of the 50 states in both the proportion of students covered and the dollar amounts awarded.
    
3. Supporting State Financial Aid – Too many states have fallen into the trap of raising tuition without providing adequate financial aid. 
    
   We should look at models that match some privately donated scholarship money with state funds.  Small amounts of incentive funds can produce high institutional and donor motivation.  Without adequate aid, the promise of a higher education to families with limited lower incomes is illusory. 
    
   Utah has made progress in providing financial aid through programs such as the New Century Scholarship Program.  We also should explore expansion of loan repayment assistance programs, such as the T.H. Bell Loan Incentive Program.  As Governor, I will work to ensure that students of all income levels have the opportunity to pursue their goals of higher education.

3) What role does higher education play in Utah?

A.  Quality of Life

1. Individuals and Families
    
   Having an educated and skilled workforce provides benefits both to individual Utahns and to the state.  Education is one of the keys to personal development.  Educated workers earn higher wages, have more employment opportunities, and enjoy greater job satisfaction. 
    
   Education is also a major factor in determining the desirability of living in our state.  People want their children to attend good schools, and businesses want to locate in a state where higher education is an important value.
    
2. Community Impact
    
   Institutions of higher learning not only enrich students and alumni; the community as a whole is also a beneficiary.  Our colleges and universities create an environment of learning and innovation by attracting bright, young minds; interesting and diverse visitors; and innovative researchers and instructors.  
     
   These institutions also bring cultural, educational, recreational, and entertainment opportunities that would otherwise not be available.  That’s why it is difficult to imagine St. George without Dixie State College, Price without the College of Eastern Utah, Cedar City without Southern Utah University, Ephraim without Snow College, or Ogden without Weber State University. 

B.  Economic Impact

In a knowledge-based economy, a quality education is an employee’s most valuable commodity.  Alan Greenspan put it this way:  “If we are to remain preeminent in transforming knowledge into economic value, America’s system of higher education must be the world’s leader in generating scientific and technological breakthroughs and in meeting the challenges to educate workers.” 

1. The Education/Economy Nexus
    
   The most important thing we can do to strengthen Utah's economy is to improve our education system.  Economic development and quality higher education are inseparable.  In fact, improving higher education and strengthening our economy are really two sides of the same coin.
    
   To attract new businesses to Utah and to help our existing businesses grow, we must have a well-trained, well-educated workforce.  Without a first-class education system, our young people will not be equipped for the demanding jobs of the 21st century.  And if we are not well-trained and well-educated, Utah will fail to attract desirable employers and high-paying jobs to our state.
    
   It is not a coincidence that California’s Silicon Valley and North Carolina’s Research Triangle are also home to world-class universities.  As Governor, I will work to leverage Utah’s universities to create a Research Corridor along the Wasatch Front.
    
2. Research and Development
    
   Utah’s research universities are at the heart of our research and development efforts.  Through strong state leadership, we can build the research capacity of our universities and increase the transferability of university-based innovations to the market.
     
   Our research institutions are an important catalyst for economic development.  According to the National Science Foundation, Utah has one of the most competitive academic research systems in the country. 
     
   Utah is in the top quarter of states in securing federal research grants.  For example, in fiscal year 2004, the University of Utah received $287 million in research grants and fellowships.  The University of Utah is now working to establish world-class research at its new Brain Institute.  It is building upon its international leadership in the fields of genetics, medical informatics, and computer imaging—all areas that offer strong prospects for future research funding and new technology-based industries.
     
   Utah State University, which recently received the Department of Commerce’s Rural Economic Development Award for its utilization of market strategies to enhance rural economic development, received $141 million in fiscal year 2004.  Its botanical and hydroponics research promises innovation in crop development.  And although Brigham Young University is not a state-funded institution, its groundbreaking research is an important contributor to the state’s economy, and it is producing new patents and spin-off businesses at a healthy pace.
     
   We must build upon our successes.  Utah is positioned to become a world leader in new-product innovation and a standard-bearer in technology-based entrepreneurialism.  Our prosperity in the future will largely depend upon our ability to maximize higher education’s potential for stimulating economic growth.  As Governor, my efforts will include the following:

a.  Strategically Invest in Research Universities’ Capacity to Generate Scientific and Technological Innovation

It is vital that Utah invest in research and development in the most promising fields, including information technology, biotechnology, and pharmaceuticals.  Strengthening higher education’s research base in key industries will spur economic growth and create more high-wage jobs.  One important means for generating research innovation is recruiting the most-talented researchers to our universities.  Top-notch researchers bring the creativity, the reputation, and the funding necessary to achieve our goals.

As technological innovations are implemented in the marketplace, Utah will solidify its reputation as a leading applied-innovation state.  We can ensure that innovations are implemented in the marketplace by assisting Utah businesses and universities to commercialize expanding research.  The University of Utah’s Research Park and Utah State University’s Innovation Campus are playing important roles in making this happen. 

b.  Increase the Flexibility of Universities to Use Research Dollars and Transfer Technology Capabilities

Given our rapidly changing capacities and understandings in high-technology research, it is important that universities have more flexibility in their use of research funds.  Increased flexibility will allow universities to take advantage of promising new research opportunities and to use the latest equipment and techniques in pursuing that research.  That’s why I support proposed Constitutional Amendment #2 on November’s ballot, which would allow universities to maintain a modest equity interest in enterprises spun out of their innovations.

We must also work to support, refine, and strengthen technology-transfer capabilities at our research institutions.  These efforts could be modeled after the University of Utah’s new Technology Commercialization Project.  This project, funded by the University of Utah’s Research Foundation, encourages technology transfer and generates private investment by providing up to two years of funding for high-risk, fast-track research.  This is another example of how university research can directly spur economic development.

c.  Establish a Private Sector-Guided Utah Business Coalition for Higher Education & Economic Innovation

As Governor, I will help expand collaborative university and private sector relationships and encourage private gifts for university research.  In particular, I will seek to establish a private sector-led Utah Business Coalition for Higher Education & Economic Innovation.  This Coalition will serve as a catalyst for economic growth by promoting research and development in Utah's key growth industries.

The Coalition would work to expand cooperative relationships between our research universities and Utah’s most innovative businesses.  For example, the Coalition could encourage businesses to provide employment opportunities for promising students, solicit private donations for university research efforts, and advise universities on the needs of local industry.  By facilitating research and business development collaboration between universities and the private sector, we will build effective relationships and generate economic growth in key sectors of our changing economy.

d.  Combining Entrepreneurial Training with Capital Support for University-Related Start-ups
  
The University of Utah Eccles School of Business, in partnership with private funding sources and professional investment managers, has developed an exciting program that combines practical educational experience with business start-up support.  Under professional supervision, business students invest seed capital in pioneering start-up firms.  Investment management fees go toward student scholarships, and investment returns are channeled back to the fund itself. 

This innovative combination of investment education with the commercialization and financing of university research is exactly what we should be doing to foster economic development in Utah.  As Governor, I would support similar efforts to combine entrepreneurial training with capital support for taking university research to market.  

C.  Workforce Needs 

Higher education and economic development are closely linked in many ways.  In addition to improving salary and job satisfaction, a college education provides the training workers need to learn new workplace skills, adapt to new circumstances, and master new technologies. 

Our universities must play a key role in producing highly skilled workers who are prepared to contribute to the needs of Utah’s economy.  With over 140,000 enrolled students, our colleges and universities offer an exciting spectrum of programs:  architecture, social sciences, business, engineering, fine arts, health sciences, liberal arts, and many more.  We need to continue to foster opportunities for our young people to pursue their dreams through higher education.  We can do this by providing college students with information about economic opportunities and job requirements, and then respecting and supporting the choices they make.

Utah is currently facing workforce shortages in several key industries that require workers with college degrees.  For instance, Utah needs more health professionals and is facing an acute nursing shortage.  In addition, Utah needs more qualified school teachers.  Utah is also working to increase its number of engineering graduates. 

1. Developing a Corps of Skilled Management
     
   Another important part of generating a skilled workforce is creating a cadre of organizationally and technically skilled managers.  Businesses are more likely to maintain significant operations—including their corporate headquarters—in regions where skilled management is abundant.  For example, one important reason for Silicon Valley’s success is its proximity to top-notch universities and the resulting concentration of management talent.
     
   Our business schools are emphasizing entrepreneurial management programs to help increase our managerial acumen.  With our superb colleges and research universities—together with our military facilities, medical institutions, and emerging industries—Utah is well-positioned to supply the critical mass of skilled leadership that companies look for in deciding where to locate.  As Governor, I will work to address Utah’s workforce needs by increasing the number of college graduates in key areas of expertise.
    
2. Addressing Areas of Particular Need
    
   Utah is facing its most acute workforce shortages in some of the areas that matter most in the new economy:  math, engineering, technology, and science.  We must work to ensure that our institutions of higher education are producing sufficient workers in areas of critical need.

a.  Supporting Utah’s Engineering Initiative
 
In a technology-driven economy, it is imperative that Utah have a strong supply of qualified engineers.  In 2000, Utah’s Engineering Initiative was announced.  Its primary objectives were to double the number of engineers graduating from Utah’s colleges and universities, increase the number of engineering faculty, and improve our engineering research facilities.  To date, the Initiative is on course to succeed.  To achieve its goals, however, we must make the Initiative a high priority.

As Governor, I will lend my full support to ensuring that the objectives of the Engineering Initiative are met.  As a result, Utah’s economy will be adequately staffed for long-term growth in key technology-based sectors.

b.  Addressing Utah’s Nursing Shortage

Utah is facing a serious nursing shortage.  Demand exceeds supply due to population growth, the aging population, increase in chronic disease, and new health care facilities.  In 2001, Utah had only 59 registered nurses per 10,000 people, compared to 79 nationwide.  Utah ranks third in the nation in the severity of its nurse shortage. The problem is not a lack of interest in the profession.  Instead,