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Virtual Debate: Gov't Spending

Our third question to the candidates was:

Statistics show our state government has grown dramatically over the past decade, yet we find ourselves short on necessary items, including money for roads, water, and education. Some citizens feel Utah has overextended itself by using bonds to balance the state budget. Do you agree with these sentiments? As governor, what would you propose to implement cutbacks and promote efficiency? Are there specific programs which should be cut? Which are underfunded?

NOTE: If you are a participating candidate, and your response is not posted, I have not received it. Please forward your response to tomg@byu.net.


Richard Mack (L)

Someone once said that if you always do what you’ve always done, you would always get what you’ve always gotten. Politics as usual in Utah has resulted in bigger state government, higher state taxes, and more restrictions on our freedoms. I am among a growing number of Utahns who have recognized the need to change what we’re doing.

History teaches us that our quality of life improves when the political class contracts and civil society expands.

Unfortunately, the fastest growing sector for job growth in Utah is government. Because government consumes wealth instead of creates it, continued government growth is not sustainable. Furthermore, higher taxes feed wasteful spending and an increasing regulatory burden, all of which interferes with the people of Utah’s ability to enjoy the blessings of liberty.

The people of Utah bear the seventh-highest state and local tax burden in the U.S., according to the Tax Foundation. According to the Bureau of Economic Analysis, the personal per capita income of Utahns ranks 46th in the nation. In addition, Utah’s “dependency ratio,” the number of those who don’t work compared to those who do, continues to rank among the highest in the U.S.

In my view, any state government growth is too much. But in recent years the growth rate of the State of Utah’s budget has greatly outpaced the growth rate of the population within Utah.

In the year 1990, for example, the population of Utah was 1.7 million and grew almost 130 percent to 2.2 million by the year 2000. By comparison, in the year 1990 the State of Utah’s budget was approximately $3 billion and more than doubled to $6.4 billion by the year 2000. Over the past decade the State of Utah’s spending grew at a rate faster than any other state in the nation, according to the Utah Foundation.

The tragedy of excessive state government spending becomes a moral outrage when existing generations burden future generations with mountains of debt by using bonds to balance the state budget. I propose cutting up the State of Utah’s credit card and restoring “pay-as-we-go” fiscal responsibility.

I pledge to vote in favor of all matters that lead to a reduction in taxes and government and against all matters causing higher taxes and bigger government. I genuinely hope to report at each of my annual addresses to the Utah Legislature that the state of the State is smaller.

If I receive a budget that does not significantly cut state spending, I will become a one-person referendum and veto that budget. If the state legislature chooses to override my veto, I will ask the people of Utah to join me in passing a statewide referendum to permanently limit the budget.

Elected Republicans and Democrats have brought the State of Utah to this point. But if elected I will work with every Utahn, regardless of his or her party affiliation, who will join me in restoring constitutionally-limited government, reducing taxes and spending, and reclaiming the freedom to run our own lives.


Nolan E. Karras (R)

As a financial expert, I believe we must plan for the future, not just borrow against it. There are essentially three choices when it comes to funding our needs:

  1. Save
  2. Pay as we go (build what we can afford as we can afford it)
  3. Borrow
The best approach often depends on the type of project, the severity of the need and the cost.

In the past ten years, a time of unprecedented economic growth in Utah, we nearly maxed out our debt load and failed to put anything aside for the educational funding crisis we now face and a Medicaid drain that is just around the corner. Currently, we are almost $2 billion in debt. A conservative is NOT someone who lowers taxes only to turn around and borrow money. At the same time, the budget increased from about $3 billion to $8 billion (1990-2004).

We have to realize that none of our financial decisions can be made in a vacuum. Each decision inevitably affects another. That’s why long-term financial planning is so critical. We have to see the effects of today’s decisions on tomorrow.

As Governor, what would you propose to implement cutbacks and promote efficiency?

I will implement a five-year plan to project our needs and our spending. This plan will serve as a road map to our financial future. I’ll ask every state agency to do the same. I want the people of Utah to be able to see the consequences of today’s spending decisions on tomorrow. Such a projection may not be pretty but it is essential to forcing a transparent discussion of the issues facing us.

I will adapt government to the spending plan, not spending to accommodate government growth. I support House Bill 66, which restricts general fund expenditure growth to inflation and population growth, without placing limitations on education and transportation spending.

I will also work to establish non-lapsing budgeting for state agencies. Our current system rewards agencies for spending with a “use it or lose it” budget rule. I will encourage efficiency and innovation by working with state agencies to develop incentives. Such incentives do not come easily to government but we must develop ways to hold government accountable and to manage the assets of this state. Most of the issues facing Utah are management issues and we need a governor willing to manage the State.

I’ll also introduce “Accountability 101.” Every department will be expected to provide a full accounting for every tax dollar. Just like Utah families, we’ll sit at the table and ask ourselves, “Where can we trim? What can we cut? How can we make every dollar stretch a little farther?” By becoming more accountable we will also become more productive. When performance is measured performance improves.

Are there specific programs which should be cut?

Some state programs will probably need to be modified in order to give priority funding to education. The programs and any adjustments would more realistically be determined after developing a five-year plan.

Which are under-funded?

We must increase education funding. I would also look seriously at working with local governments and the federal government to improve transportation funding in rural Utah, as well as funding for water development.


Olene S. Walker (R)

A conservative, realistic state budget offers a solid foundation for generations to come. Building a financial reserve is a proven principle. The past two years Utah has drawn on the Rainy Day Fund, which I create, to help alleviate additional tax burdens in times of economic downturn. I strongly believe we must maintain our Triple A bond rating and reduce state debt. The state should manage its finances within its means – just like Utah families do. Managing Utah’s finances will take some tough decisions, and these are decisions I am ready and willing to make.

I have a record of being fiscally conservative, and I am committed to limit bonding; replenish our savings, like the Rainy Day Fund; and ensure sound and conservative spending. In fact, My budget proposal did limit bonding and made a deposit into the Rainey Day Fund. I have held the line on taxes. In my five months as governor, I have begun an initiative to analyze and recommend changes to our current tax system. I want to help Utah families by easing the hidden taxes that are currently in Utah’s outdated tax system. I will ensure that business growth will be assisted by a broad and fair tax system with the lowest rates possible.

Over the last few years, Utah has trimmed the fat and swept the corners of state government. Many programs have gone without and many have been eliminated. However, state government ought to continually be examined for efficiencies and savings. I chaired the task force that consolidated 26 different welfare programs into one department. And, the focus is now on getting people back to work and off the welfare rolls. I am also realistic to know that prevention programs save money in the long term.

Any program can make an argument for more funding. However, every program ought to be scrutinized to evaluate the need for more funding. Performance measures and cost-benefit analysis are key to a proper evaluation.


Lawrence Rey Topham (PC)

Part 1. I agree with these sentiments. “Statistics” show “our government” has grown dramatically over the past decade, but still leaving us short of “money” for roads, water, education and other needs.

Budget Summaries for Fiscal 1991-2004 show:
Budget 1988-1989 as reported: 2,964,539,600 (2.965 Billion)
Budget 1994-1995 as reported: 4,642,366,000 (4.642 Billion)
Revised 2003-2004 as reported: 7,727,212,611 (7.727 Billion)
Appro’d 2004-2005 as reported: 8,267,367,088 (8.267 Billion)

Increase in “State” spending: 5.302 billion in 17 years, a 279% increase. FY1989 spending was 35.9 percent of FY2005 A.D. Utah Foundation reported Utah’s “general obligation debt grew from $367 million in 1990 to $1.7 billion in 2003.” Utah’s “budget needed to repay debt has gone from 1.48 percent of total state spending to 2.82 percent” and “in 1998, lawmakers approved a $660 million bond to rebuild 15 miles of Interstate 15,” putting Utah’s bonding at 2/3 its total limit. (Associated Press)

Increasing debt is doubly dangerous, threatening Utah’s ability to survive a future real estate market crash as inflation turns to deflation, after hyper-inflation. Utah is in its most dangerous financial situation, financed with “irredeemable notes, coins and credit.”

Those exercising functions of public office for forty years, deceptively, put Utah and the United States in extreme financial straits, violating Article I, Section 10, of the U.S. Constitution, threatening a total financial collapse, since “public officials” don’t “pay” any “debts”, but circulate “debt instruments” not redeemed in “lawful money” of the United States—gold and silver Coin; so no debts are lawfully or constitutionally paid.

This problem was experienced, evaluated, and remedied by the Founding Fathers, who, on September 17, 1787 A.D., approved The Constitution for the United States of America, the supreme Law of the Land.

We dishonor the founders, rejecting the remedy, by violating oath of office laws by not taking, subscribing and filing oaths, or by breaking the oath.. The unfunded national debt stands at 7.16 trillion+ but no dollars are involved, only fiat notes, coins and bank credit not supported by any Thing of substance, certainly not gold and silver Coin. If Utah fails to pay its debts, it is because your leaders choose not to pay them.

Part 2. As governor I propose to implement cutbacks and promote efficiency by stopping all false “money” from circulating in Utah as I advocated long before the United States Grand Jury twice indicted the Federal Reserve Bank of San Francisco, First, February 16, 1982 A.D, by a unanimous vote;18 yes, 0 no: Second, July 7, 1982 A.D., vote, 16 yes, 4 no. 12 votes are needed. The U.S. Attorney said it ever happened, but it did, and I provided much of the evidence to the grand jury. After that national debt the falsely reported national debt rose from1 Trillion to well over 7.15 trillion, accounting for liabilities as assets. The U.S. Treasury and Federal Reserve Banks will not redeem their notes and bonds as required by the “law” under which they are issued. Without redemption in gold and silver coin the “securities” of the Federal Reserve Banks and United States are falsely made, issued and circulated in violation of 18 U.S.C.A. 4, 8, 331, 332, 334, 371, 471, 472, 473, 891, 892, 893, 894, 1341, 1342, 1343, 1961, 1962, 1963, 2381, 2382, 2384, 2385, 2386, 2387, 2388, 2389, and 2390. It us a felony to know and not report.

This is, according to H. Verlan Andersen, “one of the greatest threats to freedom that exists on earth. “The Constitution and the Book of Mormon”.

Part 3. There are specific programs that should be cut;. All unconstitutional programs.

Part 4. All programs are underfunded. None are funded with “lawful money” of the U.S.or gold and silver coin of other nations of standard regulated value. Congress failed its duty, giving control of “money” to private bankers who care not for governments’ integrity or for the welfare of the people.

Repentance is the only means to save and restore Utah’s Constitution and the U.S. Constitution with gold and silver coin as America’s Hope, Ezra Taft Benson “This Nation Shall Endure. “It is our duty to concentrate all of our influence to make popular that which is sound and good, and unpopular that which is unsound.” Joseph Smith, Jr., about gold and silver Coin, the only Tender in Payment of Debts. Nauvoo City Ordinance.

Utah’s budget in lawful money of the United States is presently $0.00. That is why it is time to “awake to a sense of our awful situation”, as Moroni warned, so that our nation and state will not suffer the fate of the Jaredites and the Nephites from pride.

Posted by Hermit on April 26, 2004 07:00 AM