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Legislative News Hi ! In this issue, you'll read: WELCOME FRIENDS & NEIGHBORS - SESSION ENDS One thing you want to watch for in reviewing the final budget is "ongoing money" versus "one-time money". Most of the surplus money that was reported this year was "one-time money" meaning that the money is based upon last year's under-estimate of funds that would come in this year. There is a big difference between what you can do with "one-time money" versus "on-going money". For example, salary increases require ongoing money; transportation projects or capital improvements are a good use of one-time money. While the surplus funds were not as much as we had hoped, it was still a good year. The needs and wants will always outstrip the money, just like many people's home budget. However, we were able to again increase funding for education significantly beyond the normal increases for growth, including a second significant salary base increase for teachers.  Governor Congratulates House Members for Best Managed State in Nation As Successful 2008 Legislative Session Ends Wednesday Midnight According to a recent study reported by the Deseret News "... Utah is the best-managed state in the country, based on a report card of state governments released Monday. The Pew Center on States Government Performance Project for 2008 gave Utah an overall "A minus" for how the state government manages information, people, money and infrastructure. Virginia and Washington also received high scores, but Utah came out on top. "Utah manages itself with savvy business acumen," according to the report. "Financial decisions are made wisely with an eye toward return on investment and long-term performance in all facets of state government"... Gov. Jon Huntsman Jr. said the report can reassure citizens that "their tax dollar is used right." <<< Read Complete Article >>> EDUCATION  The Oldroyd family from District 59 visited the newly refurbished Capitol Building during session. Ten year old Kirsten got a first hand education of the legislative process. No doubt this young lady is one of our future leaders. This legislative session continued Utah's trend of strong support for education funding, with $340 million spent for public education ($200 million per year in new on-going money and $140 million in one time funding.) Fifty-seven percent of all total available on-going revenue went to public education. Of these funds nearly $60 million went to teachers (teacher raises-$1,700 each). While some groups wanted all the money to go into the WPU, the legislature believed it was essential to ensure that teacher's base salaries were raised to be competitive. With school district splits a hot issue, the legislature tackled the issue of school district equalization. After many discussions and proposals, the issue was resolved by equalizing funding across Salt Lake County, in addition to appropriating funds for school buildings. There was some attempt to do some state-wide equalization, but it will need to be revisited. Attendance: 48,298 [out-of-state 29,027; International 7,776]
37.2% of Festival guests ski an average of 2.3 days while in Utah for 41,324 ski days Over 1,100 media representatives attend the festival attend including 230 international journalists 98% of Festival guests plan to return to Utah for future Festivals 65% plan to return to Utah for tourism outside the Festival SB 11 Utah Venture Capital Enhancement Act Amendments, increased both the amount of tax credits certificates and redemption reserves in the Fund of Funds. As the saying goes, "it takes money to make money" and this fund greatly assists our emerging thriving business community to continue to grow. SB 202 Energy Resource and Carbon Emission Reduction Act. This law establishes a target for Utah electrical utilities to supply 20% of adjusted retail sales from cost effective renewable energy by 2025. It also encourages energy efficiency programs and other measures that reduce electricity demand. Also included is an extra tax credit for new solar projects in Utah. HB 256 Criminal Penalties Amendments/Jessica's Law. This law makes rape, object rape or sodomy of a child a minimum 25-year penalty. Now, Utah's laws for protecting children are some of the strictest in the nation. Attempted rape or sodomy of a child is 15 years to life. This was high of many of our constituents' surveys, so be assured the legislature listens to you. H.B. 493 Stalking Amendments sponsored by Representative Lorie Fowlke and supported by the Attorney Generals office. This updates our stalking laws to include "cyber-stalking" which has become a very real problem for certain segments of our society. Hopefully, these amendments will reduce the need for civil stalking injunctions. H.B. 492 (Sex Offender Notification and Registration), sponsored by Representative Paul Ray, amends the state sex offender registry to make it stricter. Offenders are now required to submit more comprehensive information including social security number, any vehicle owned or regularly used, passport information, telephone numbers and employment and volunteer locations. Offenders will also be compelled to register every six months, rather than every year as is currently required. The bill also adds aggravated kidnapping as a lifetime registration offense. These stricter guidelines will allow for better monitoring of convicted sex offenders. S.B. 65 (Soliciting Gang Members Prohibited). Senator Jon J. Greiner and Representative Curtis Oda are sponsoring a bill that outlaws the recruitment of potential gang members. It makes it a criminal offense to intimidate a minor to join a street gang, or to intimidate a minor to commit a crime. The bill also provides an increased penalty for repeatedly recruiting a minor into a gang. The bill passed the Senate February 7th and the House February 20th and is now awaiting the Governor's signature.  Remember Tuesday, March 25, 7 p.m. is Neighborhood Caucus Night There have been several changes in precinct boundaries in District 59. Check the above map for your precinct. The changes are OR 19 is now part of OR 15; OR 41 in now part of OR 06; OR 23 was divided between OR 17 and OR 43. And part of OR 06 has been integrated into OR 05. Below is listed your caucus location, contact name and number. OR02 Sharon Elementary 525 N 400 E Orem Michael Leavitt 224-6207 ILLEGAL IMMIGRATION As many of you know, this was another hotly contested issue on the hill this year. There were many bills presented; some passed and some did not. Compromises were made on some and others never saw the light of day. That's the nature of the process. Here are samples of the variety of letters we have received on this issue: 1."MAKE THEM OBEY THE LAW" Dear [Public Official]: Last week, I stopped by and left you a copy of the Special Report: The North American Union issue of The New American magazine that looked into the issue of the attempt by power-elites to integrate the US, Mexico and Canada into one unified political and economic entity. Have you had a chance to read some of the articles in this Special Report yet? Massive floods illegal immigrants underpin the movement for integration, thus immigration precedes integration of nations into a European Union style amalgamation of nations. (www.jbs.org/nau ) One City that has sought to stop the tide of illegal immigration flooding into their city was the city of Hazleton, Pennsylvania. One of my friends recently wrote to Mayor Lou Barletta of Hazleton to offer some Constitutional vindications for his city's ordinances aimed at removing immigrants who had broken our national laws to invade his city. Mayor Barletta wrote back to my friend, and I'm forwarding that letter to you so you can see how Hazleton's ordinances have stopped the illegals from immigrating into his community. With between 11-million and 30-million illegal aliens having invaded America, American cities have got to stop allowing business licenses for illegals, allowing landlords to rent to illegals, allowing local businesses to hire illegals instead of Americans, etc. Our own federal laws have marked these individuals as outlaws. Supporting such outlaws is wrong on many grounds. ( www.uscis.gov ) The Hazleton website is www.smalltowndefenders.com to read their ordinances and get the story. The remarks (below) from Mayor Lou Barletta of Hazleton should be of value to all Mayors, city councilmen, and Legislators across America. It is illegal by federal statute to hire aliens that have entered our nation illegally, yet our own federal government is doing little to enforce their own laws in order to repel this ongoing invasion. Its time that city, county, and state governments took some responsibility in this matter of stopping the invasion. Sincerely 2 "BE CAREFUL WHAT YOU WISH FOR" To: All Members Utah House of Representatives: Construction in Utah continues to be a leading force in the creation of jobs in virtually every county in the State. Construction is a vital part of the vibrant economy we all benefit from. Economic forecasts call for continued growth. The Associated General Contractors (AGC) is a nationally recognized association representing general contractors, subcontractors and suppliers responsible for a large majority of commercial construction in the United States. The members of the AGC consistently point to labor shortages and the uncertainty of continued immigrant labor as a serious problem facing their companies today. There are a number of immigration related bills you will be considering this session, as such we wanted to give you the AGC's position papers on this important topic. Many of the issues need to be addressed on a national level, so we urge you to be mindful of the points below as you debate the bills before you this year. We believe any comprehensive reform must include the following: * Better control over the Nations borders and enforcement against smugglers and unscrupulous employers. We appreciate your commitment to our State and to providing the environment which will allow us to grow and prosper. Sincerely, The Utah AGC Officers (Association General Contractors) Immigration Bills Passed: 1SSB 81 Illegal Immigration: This bill requires a county sheriff to make a reasonable effort to determine the citizenship status of a person confined to a county jail for a period of time. It requires public employers to register with and use a Status Verification System to verify the federal authorization status of a new employee. The bill also provides that it is unlawful to discharge a lawful employee while retaining an unauthorized alien in the same job category and it requires an agency or political subdivision of the state to verify the lawful presence in the United States of an individual who has applied for a state or local public benefit. Finally, the law makes it a class A misdemeanor for a person to transport in this state an alien for commercial advantage or private financial gain, knowing that the alien is in the United States in violation of federal law. [This last part is aimed at what are called "coyotes", i.e. individuals who smuggles people across the borders.] The bill has a postponed effective date in order to allow people to prepare for it and frankly, to see if the federal government will do its job in addressing this controversial issue. It takes effect July 1, 2009. HB 171. Driving Privilege Card Amendments. This bill tightens up use of the driving privilege card. It prohibits a person authorized by law to sell or otherwise handle alcoholic beverages or products from accepting a driving privilege card as evidence of the legal age; it prohibits a driving privilege card from being used as providing proof of a person's age for any government required purpose. The bill also provides that a person that engages in the transfer, distribution, or furnishing of certain precursor chemicals may not accept a driving privilege card as proof of identification from a purchaser that purchases certain controlled substance precursors; it provides that a dealer of firearms may not accept a driving privilege card for the purpose of establishing personal identification and residence to receive a firearm and it requires DMV to notify the drivers license if no insurance Immigration Bills Failed: HB 237. Illegal Immigration Enforcement Act. This bill modified the Public Safety Code by providing for the enforcement of federal immigration laws by certain state or local law enforcement officers. HB 238. Drivers License Qualification Amendments. The bill repealed the use of the drivers privilege card. Taxpayers should know that the "flat tax" option calculated on the 2007 tax year return IS NOT >>> Read More <<< MORE TAXES INFO - Why Am I Going to Pay More Taxes When There Was a Tax Cut? Many of you have contacted me during this tax season to question why, when they calculate their taxes under the original tax code and the new tax laws passed last year, they find that they would pay more taxes under the new system. They expressed concern that next year, when everyone must use the new system, that they would be paying more, not less taxes. This is incorrect, for two reasons. First, the tax rate goes down from 5.35% in 2007 to 5% to 2008. Second, in 2008 most taxpayers will be able to claim a credit equal to 6% of the sum of: (a) the taxpayer's federal standard or itemized deduction (less state income taxes deducted); and (b) 75% of the federal personal exemption. This credit phases out for taxpayers with higher incomes. About 90% to 95% of all taxpayers will see a tax cut. It is important to remember that the "flat tax" that taxpayers see on their 2007 income tax return is NOT the same as the "single rate" tax that took effect in the 2008 tax year. - Free Tax Electronic Preparation Service Taxpayers can choose the specific tax preparation company that best fits their needs. Since launching the Free File Service six years ago, we have built a tremendous track record of success and boast customer satisfaction rates of near 100 percent according to a recent Internal Revenue Service survey. Key Facts about the Free File Program · 15.4 million returns have been filed through Free File since 2003. · 3.8 million returns were e-filed through the program in 2007. · Taxpayer satisfaction is high: 95% of users intend to use Free File again; and 98% of users would recommend Free File to others (IRS survey). Now in our sixth year, we are again proud to offer the Free File Alliance service to every qualified American. Please find a sample press release <<< Press Release>>> Sincerely, Tim Hugo, Executive Director - What Happened to My Property Taxes? Utah's Property Tax Burden - from Utah Foundation February 26, 2008 In recent months, Utah policymakers have had discussions about reducing property taxes. The desire to reduce property taxes is largely a result of rapid increases in property values in 2006 and 2007, causing some homeowners to shoulder significant increases in property tax bills. As these discussions ensue, it is valuable to review some data and information on Utah's property tax, showing where the tax burden has been in past years and how Utah's property tax compares to other states. Figure 1 shows Utah's property tax burden expressed as aggregate dollars paid per $1,000 of statewide personal income. This includes all property taxes - residential, commercial, agricultural, personal property (business equipment), and taxes on all other types of property. The tax burden was very high in the 1960s and fell sharply between 1965 and 1980. The tax revolt that began in California in the 1970s had some impact on Utah's tax <<< See Graph >>> In the 1980s, the property tax burden began to rise again, and in response, Utah's "Truth-in-Taxation" law was adopted in 1985 (its actual title was the "Tax Increase Disclosure Act"). This law remains in effect today and requires local governments to fully disclose, through public notices and hearings, any increases in property taxes. Tax increases were defined very strictly by Truth-in-Taxation, basically labeling any increase in revenues Utah's Truth-in-Taxation law has been very effective at reducing the property tax burden over time. Brigham Young University professors Gary Cornia and Lawrence Walters described in a 2006 paper how Truth-in-Taxation had consistently reduced the burden of locally-imposed property taxes on residential property (excluding the state-mandated basic levy for schools) from 1987 through 2001.[1] As shown in Figure 1, the property tax burden remains lower now than in the mid-1980s, although there was a slight upward trend in the early part of this decade. Again, Figure 1 includes all property taxes, and it is useful to see how the burden has changed over time for the various types of property. Figure 2 shows the same measure of burden, property taxes per $1,000 of personal income, separated by property type, in the years since Figure 2 shows that the tax burden on primary residences has been somewhat stable in the past 16 years, with a slight increasing trend from 1999 through 2003, then slightly dropping. Although much smaller in total dollars, more significant changes were occurring in the tax burdens on personal property, motor vehicles, utility properties, and natural resources (mining, oil and gas extraction, etc.), which have generally declined since 1990. These declining tax burdens could be a result of tax policy choices or <<< See Graph >>> Figure 3 helps clarify this by showing the effective tax rates calculated by the Utah State Tax Commission for each of these types of properties over time. All property types experienced a lowering of effective tax rates in the mid-1990s, when the Legislature significantly reduced the state-mandated basic levy for schools. Prior to the large basic levy reductions in 1995 and 1996, the Legislature had increased the tax exemption for primary residences in 1991 and 1994, but those changes did not result in a lower tax burden or a lower effective tax rate on residences. The basic levy reductions had a <<< See Graph >>> Other tax policy changes affected these tax rates in the 1990s, including a swap of county property tax reductions for sales tax increases, and several years in which voter approval was required for imposition of tax rates in excess of the Truth-in-Taxation calculated rates. After 1998, effective tax rates rose again and then remained level to slightly increasing for most types of property. In addition to reviewing Utah's own experience with property taxes, it is useful to compare Utah to other states to assess how burdensome Utah's property tax may be in comparison. Figure 4 is excerpted from a detailed study by the Minnesota Taxpayers Association on property taxes in the 50 states and Washington, DC. It shows that taxes on a $300,000 home in Salt Lake City compare very favorably to taxes in other states. Utah has one of the lowest property taxes, ranking 45th in this comparison. The Minnesota study also compares taxes on other types of property, including businesses, apartments, lower-priced homes, and property in a rural community. In each ranking, Utah is well below the national average. <<< See Graph >>> In conclusion, Utah's Truth-in-Taxation law has generally been effective at holding the property tax burden at a low level, although during the rapid increases in property values in the 1990s, additional tax relief was enacted to counter the rising tax bills. Since the late 1990s, Utah's property tax burden has been on a slight upward trend for primary residences. Nevertheless, the level of taxation on homes in Utah remains very low Endnotes: [1] "Full Disclosure: Controlling Property Tax Increases During Periods of This research brief was written by Utah Foundation President Stephen Kroes. Mr. Kroes may be reached at (801) 355-1400 or by email at: steve@utahfoundation.org. For more information about Utah Foundation, please visit our website: www.utahfoundation.org <http://www.utahfoundation.org/> . If you value independent, factual research on the issues, please support Utah Foundation by becoming a member. Visit www.utahfoundation.org/membership for more information. |
NATIONAL ANTHEM The Cactus Cuties sing The National Anthem like you've never heard it before! <<< Watch >>> VETERANS This year Veteran's issues took center stage. The Legislature unanimously voted to appropriate $19.7 million for construction of an additional veterans' nursing home to be built in Ogden. Currently there is only one such facility in the state and the waiting list is double its capacity. Legislators also approved a tax credit for veterans receiving retired military pay. Thank you to all our Veterans who know more than most of us that freedom is not free. HEALTH CARE "Change never happens over night, but we set in motion the tools we'll need to improve our health care and transportation systems," said Representative David Clark, the sponsor of HB 133 Health System Reform. This bill sets in motion comprehensive health care reform in Utah based on consumer driven, free market principles. The bill includes a tax credit for those who are self-employed and pay their own health insurance. CHIP reform- Speaker Curtis sponsored a bill to allow year-round registration for the Children's Health Insurance Program (CHIP). Now any child who qualifies for the program can sign up for insurance coverage. See District 59 map below for changes in precinct boundaries. |
