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January 2005• Vol. 35 No. 2
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UEA expects to see more tuition tax credit bills
2005 Legislature: More questions than answers

As the state of Utah readies itself to inaugurate a new governor, it faces an unusual mix of change and uncertainty. The UEA Lobby Team is as anxious as anyone to learn how the new Huntsman Administration intends to interact with the newly-elected Utah Legislature – also under new leadership – to solve long-standing funding problems in a brand new location.

Here's what the Utah Education Association knows at this point in time:

Funding

State revenue collections are currently running about 7 percent above projections, indicating that Utah 's struggling economy of the past three years is finally on the road to recovery. This should provide the state with a much-needed surplus assuming the trend holds. Current revenues have generated a mid-fiscal year surplus of about $70 million, and, even if the growth rate slows, projections indicate a surplus of more than $100 million could be available for help in funding next year's education budget. Anticipated growth in new students statewide is expected to be somewhere in the neighborhood of 10,000. While this represents an overall increase of about 2 percent, the growth will not be distributed evenly. Ogden , Salt Lake , Granite, and Logan will actually experience decreases of 1 to 2 percent, while districts in Utah and Tooele counties will have to cope with increases ranging from 3 to 5 percent. Funding new growth alone could cost upwards of $35 million.

Public education employees have gone without significant cost-of-living increases over the past few years. In most instances, these increases have not kept pace with inflation. As measured by the most recent CPI index, inflation is currently running at 2.5 percent. Add to that a reasonable “catch-up” factor for the lost ground of the past few years and one can make a strong case for a WPU increase of at least 5 percent.

Tuition Tax Credits and Vouchers

As has been the case over the past four years, tuition tax credits (TTCs) and vouchers will undoubtedly receive far more attention and legislative focus than they deserve. While Utahns see public education as a top priority, (Utah Foundation Report of March, 2004), they rank tuition tax credits and school choice at the bottom of the issues within public education — far behind funding, teacher quality, teacher pay, class size, and curriculum. And yet for each of the last few years, lobbyists for tuition tax credits and vouchers, funded by well-heeled, out-of-state organizations, have succeeded in convincing legislators to support their cause.

In 2005, we can expect to see a tuition tax credit bill similar to the one carried last year by Representative Jim Ferrin, (R-Orem) . We also expect alternative TTC bills that will contain some accountability measures and provisions, such as “hold harmless” clauses, in an attempt to protect public schools against a loss of funding.

While these alternatives may be preferable to a full-blown TTC bill, UEA will continue to fight against any effort to provide government subsidies to private businesses. What we will not have this year, however, is a governor poised to veto such a bill. That, together with a Utah State University report commissioned by the Legislature suggesting tax credits might, under certain conditions, actually save the state money, will not make the battle any easier to fight. A number of other researchers and economists, however, are already questioning the assumptions, methodology and results of the USU report. As was the case last year, we believe the tiresome debate over tuition tax credits will be decided in the House where the margin will be slim. If every UEA member were to call or write his or her legislator urging opposition to tax credits and vouchers for private schools, the UEA Lobby Team's task would be made much easier.

How to Lobby

The other dynamic which will be much different this year involves the temporary housing of the Legislature while the Capitol undergoes a four-year renovation. The public gallery area will be very limited, so following the floor debate will be more difficult. The UEA will provide its members with the e-mail addresses and phone numbers of all legislators in an effort facilitate communication from home. (See the UEA website – Working for You-Politics and Legislation.)

Members who want to stay informed during the legislative session should:

  • Read the Capitol Bulletin . New editions are published each Friday and can be found on the UEA website at www.utea.org .
  • Visit the UEA website, Working for You-Politics and Legislation . You'll find voting records, a roster of legislators, and the latest on pending legislation.
  • Attend legislative briefings. Meetings will be held in the new Capitol West Building , Room 130, each Friday at noon , beginning January 28, 2005 . Please call the UEA office, 800-594-8996, to confirm times and locations.

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