Why I oppose HB 282...

There has been much discussion in the media and at the Capitol regarding sales tax on food. HB 282, sponsored by Rep. Merlynn Newbold, will create a single sales tax rate of 4% on food purchases. In essence, this bill removes the sales tax on food for resort communities, transit districts, and in cities with RAP and ZAP taxes. The bill would cost these entities approximately a combined $20 million. Here are three simple reasons why I oppose this bill:

1. Bad Tax Policy – Legislators supporting this bill often express the benefit repealing the sales tax on food will have for Utah's low income families. I agree with this concern, but think there are other ways to address the need of low income households (and let's be honest, this is the same Legislature that last year cut $2 million in dental care from its Medicaid plan…plus, I don’t think anyone really believes that reducing the sales tax at grocery stores in Park City is really aiding Utah’s most needy families). Anyhow, in my opinion it is bad sales tax policy to narrow the base. I would rather lower the tax rate and expand the base. For example

• Average State sales tax rate with food taxed – 4.8%
• Average State sales tax rate with food exempt – 5.5 %
  
  The more we narrow the base the higher our rate will be pushed as soon as the State needs money to balance their budget in future years.

2. What about the voters? – Just in November voters in Salt Lake County approved (over 60% in favor) a sales tax increase to be dedicated to transit. Now the Legislature is going to cut the base and with it the revenue this tax increase can generate? I understand that some Legislators don’t respect UTA, but what about the public? It seems to me the Legislature does not respect the opinion of the 140,000 SL County residents voting for Prop 3.

3. One Size Does Not Fit All – There is a reason that we allow for resort community taxes, resort hospital taxes, transit districts, RAP and ZAP taxes. We recognize that our state is diverse and local jurisdictions need flexibility to address the needs of their area. Reducing the tax on food for these distinct taxes reduces flexibility and local control.

I should add I'm not alone in this opposition. The ULCT League Policy Committee voted unanimously on Monday to oppose this bill.

Top 10 Legislative Issues Nationwide

What is the hottest issue for the Utah State Legislature this session? I’m still trying to figure that out…I guess my vote would go to either tax cuts or education reform. While I’m still a little unclear on the top issues for the Utah Legislature, NCSL seems confident with their 2007 forecast of the top issues nationwide. Or as they put it they measure different policy issues in relation to water’s boiling point…212 degrees. Any guesses on which policy issue hit the 300 degree mark?

I’ll give you a hint…in 2006 there were 570 various immigration related bills introduced nationwide. Looks like that trend will continue. Check here for the full ranking: NCSL's Top 10 Policy Issue Forecast: Heat is on State Legislatures.

Mayoral Revenge

Entire village suspected of mayor's murder...and we think the process to change our municipal form of government can be brutal.

Need for Conversation and Correspondence

Mark Alvarez, columnists for the Salt Lake Tribune, wrote Sunday, "The greater good calls for more community conversation and correspondence about public policy that serves the common interest." I couldn't agree more. With the 07 Legislative Session in full swing it is time to start increasing our communication with each other and to our elected representatives.

Yesterday's League Policy Committee (LPC) meeting is evidence that we are already in the thick of the session. The LPC agenda was packed full of important issues, and our committee room was even more packed (I'm guessing over 80 city elected officials and staff from across the state). The LPC meeting is also evidence that a number of city officials are committed to participating in this conversation regarding public policy. There are a number of key issues we (ULCT) are tracking closely, for example:

• Food tax, municipal election reform, municipal forms of government, land use issues, and telecommunications, to name a few.
  

Most of these issues are still in a very fluid state, so it can be difficult to stay up to speed. However, let's make sure the conversation and correspondence does not break down. Please check Lincoln's blog frequently, or visit the ULCT page, or you can always call (801-328-1601). The next month should be interesting and we look forward to hearing your input.

You can read Alvarez's column here.

Bootleggers and Baptists

We all know politics makes strange bed-fellows...but do we know why? Bruce Yandle of Clemson University explains why politics often leads to these peculiar alliances of self-interested special interests with more altruistic motives. Or in his example bootleggers and baptists in the south teaming up to prohibit the sale of alcohol on Sunday. You might find this hour long podcast enlightening as the Legislative Session starts to heat up and Legislators start orchestrating deals. Or maybe you might just want to spend the weekend relaxing to some engaging EconTalk (seriously, it really is a good podcast). If interested check here.

Local Officials Day Reviewed

The ULCT Local Officials’ Day was well attended today with Governor Huntsman, ninety percent of the State Legislature, hundreds of high school youth city council participants, along with mayors, council members, and city staff from across the state, even Abe Lincoln was in attendance. I hope everyone found the speakers and presenters informative.

Those in attendance enjoyed a lighthearted video regarding basic civics and government questions. Some of their answers are humorous, but more importantly I think the entire video is a reflection of all of us or society in general. Regardless of what we think we know, we still have much to do to become a knowledgeable and engaged citizenry. Hopefully that is the point that sticks—we can all become more informed regarding government.

I enjoyed my workshop with the Youth City Council members. Please click here if you are interested in my presentation or contact me if you have questions.

Local Officials' Day 2007

Just a quick reminder regarding Local Officials' Day tomorrow at the Salt Lake City Sheraton. This cartoon here will make more sense tomorrow after our video is shown during lunch--a ULCT attempt at 'Jaywalking', but with our own local TV talent Allie Mac Kay.

I'm especially looking forward to meeting with the Youth City Council members from across the state. We should have a lively discussion about civics and what it takes to be an engaged citizen.

Do Mayors and Head Coaches Have Anything In Common?

Okay, so I’m sure I’m not the only person who felt a little bad for Marty Schottenheimer when he had another playoff game slip away, losing to the Patriots 21-24. I felt bad because I knew I would wake up this morning and hear everyone calling for Marty’s job…sure enough Chargers fan David James (along with most of the nation) is calling for Marty’s firing. Here.

But in thinking about Marty I heard Colin Cowherd on the radio comment…“NFL head coaches are like our mayors. They are visible and the easiest to rip.” So do Andy Reid, Schottenheimer, Billick, and Holmgren have anything in common with Mayors Dolan, Curtis, Seghini, or Billings? Maybe they do, think about it…when something goes bad in a city who is the first to be blamed? The Mayor.

However, the Mayor is just a piece in the puzzle, just like the Head Coach. Sometimes we need to take a step back and look at the entire picture (or puzzle) before assigning blame…but oh it is so much easier to place blame on the most visible figure.

Maybe we need to take a minute to thank these visible figures while everything goes well—instead of waiting for events to go bad and blame them. Layton residents could start with Mayor Curtis ...pictured here, taking the time to try on the fire uniform with the Layton Fire Department.

O Water, Where Art Thou?

Ever wonder exactly where your shower water comes from? Probably not...unless, of course, you turn on the shower and no water comes out. The City of Bryan, Texas put together a very clever calendar highlighting various aspects of their public works department--while also providing citizens great information regarding water uses. Check out the various calendar months in pdf form here.


My personal favorite...May 2007, Reservoir Clogs.

2007 Economic Report to the Governor

The Council of Economic Advisors to Governor Huntsman recently released the 2007 Economic Report to the Governor. We all know the economy in Utah has been good in 2006...but just how good? This report provides important data and details regarding demographic changes, tourism, jobs and wages, and overall growth in Utah. If you don't have time to read the full 226 page report I at least recommend a review of the 4 page Executive Summary. Here are a few highlights.

• 5.2% -- job growth in 2006 (compared to 1.4% nationally)
  
• 2.7% -- population growth (67,714 new residents = a city the size of St. George)
  
• 18.1% -- construction job growth led all other sectors in 2006
  
• 5.4% -- non agricultural wages increase exceeded inflation for the 3rd consecutive year
  
• 5.4 million residents are expected to live in Utah by 2050...doubling our population in the next 44 years.