Walker's sound philosophy

Deseret Morning News editorial
Published: Sunday, Dec. 12, 2004 7:52 p.m. MST
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Gov. Olene Walker's 2006 state budget recommendations have a short shelf-life. Although her term will end in a matter of weeks, the governor is statutorily required to present a budget proposal to legislative leadership 34 days before the start of Legislature's general session. Her successor, Gov.-elect Jon Huntsman Jr., has until three days after the start of session, which begins Jan. 17, to present his own proposals.

"I'd encourage them look at, refine it, perfect it, put their own stamp on it," Walker said of her administration's proposals, unveiled Friday. Crafting his own budget is Huntsman's prerogative but Walker's plan provides a good jumping off point.

Walker's $8.6 billion proposal embodies some of the best principles of budgeting — living within the state's means; maintaining the state's credit rating; addressing pressing building needs; attending to debts and setting millions aside in the so-called "rainy day fund" for emergencies or future needs.

Walker said that representatives of Huntsman's team had taken part in budget hearings held to develop her administration's financial plan. Walker's budget portends a $370 million revenue increase over authorized revenues for the 2005 fiscal year. That's roughly a 10 percent increase in revenues.

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In many respects, the rosy revenue picture would enable the state to play catch-up with many state needs and wants that have been underfunded or even eliminated during recent tight budget years. For instance, Walker proposes a 5 percent increase in the value of the basic education funding allotment, the weighted pupil unit. She seeks to remedy the oft-used, but unwise, practice of paying for ongoing programs with one-time money.

With an eye on the upcoming Base Realignment and Closure process, Walker has also recommended $5 million for the Utah Defense Alliance to preserve Hill Air Force Base, which means 26,000 jobs to the state of Utah.

To help curb growth in the state's prison population, she proposes $6.3 million for the first phase of a program that would assess inmates for substance-abuse problems and refer them to treatment.

The budget recommendations contemplate a 3 percent raise for state employees who, in recent years, have had no pay raises or minimal increases. Moreover, their compensation is falling far behind peers in other levels of government.

Walker, who has dealt with budgets as governor, a state lawmaker and an agency leader, said her study of the 2006 financial plan spotlighted the need for widespread changes in the state's tax policy to address the eroding tax base. There is a dire need for comprehensive reforms that would broaden the tax base and lower tax rates. The reforms would guard against drastic swings in revenue, the likes of which the state has experienced in the past decade

Again, as governor-elect, Huntsman can set his own agenda and budget.

But the genie is out of the bottle in terms of Walker's tax reform package and her ambitious and sound budget recommendations. Walker has left a sensible footprint for the incoming administration to contemplate.

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