Jeff Flake named Ambassador to Turkey, Consumer Price Index is up, Senate Dems agree on human infrastructure deal and Coke Zero is changing | | | The Utah Policy newsletter is your one-stop source for political and policy-minded news. Send news tips or feedback to editor@utahpolicy.com. | | |
Situational Analysis | July 14, 2021 It's Wednesday and Bastille Day in France. Allons, enfants de la patrie, Le jour de gloire est arrivé. It's also National Mac & Cheese Day. Kids everywhere are surely celebrating. Be in the Know President Joe Biden has appointed former Senator Jeff Flake to be the Ambassador to Turkey, a move applauded by both Utah Senators. The Bureau of Labor Statistics reported yesterday that the Consumer Price Index (CPI) jumped 0.9% in June, the largest month-over-month increase in the inflationary measure since June 2008. The index for used cars and trucks is up a whopping 10.5%. On an annual basis, CPI is up 5.4%. Senate Democrats announce plans for $3.5 trillion "human infrastructure" budget package to expand Medicare, boost federal safety net programs, combat climate change and boost health, education and social programs. The agreement marks effort to bridge differences between the liberal and centrist wings of the party. They hope to use the reconciliation process, requiring only 50 votes, to pass the bill. Don't mess with a good thing! Coke Zero is undergoing a recipe change and rebrand and has already launched the change internationally. Fans were not impressed. One gave Coke a shoutout for helping her quit her Coke Zero 'addiction' because the "new taste is so bad." Sigh. Just when I found a diet soda I actually liked. | | |
Utah Headlines General Most never shoot at someone, but these 38 Utah officers have pulled the trigger multiple times (Salt Lake Tribune) UDOT holds open house to gather public comments on Little Cottonwood Canyon travel alternatives (Salt Lake Tribune) Salt Lake County Mayor Jenny Wilson speaks out: Sheâs against a Little Cottonwood Canyon gondola (Salt Lake Tribune) Flash floods sweep through parts of Utah, more strong storms on the way (ABC4) Microburst sweeps through Spanish Fork, leaving downed trees and damage (Fox13) After discovering their mutual cheating boyfriend, 3 Utah and Idaho women moved into a bus to see the West together (Salt Lake Tribune) Politics Utah Sen. Mitt Romney says itâs âmoronicâ for conservatives to politicize the COVID vaccines, laments the CPAC crowd cheering that the U.S. missed Bidenâs July 4 inoculation goal. (Salt Lake Tribune) Mike Lee: Critical race theory attacks what it means to be an American (Deseret News) John Curtis calls for more telehealth in rural communities (Daily Herald) COVID Corner 471 cases, 3 deaths LDS mission president dies after weekslong struggle with COVID-19 (Deseret News) Utah hospitals are filling up, and more than 95% of the COVID patients werenât vaccinated (Salt Lake Tribune) COVID outbreaks in summer camps happening every week, Utah County health officials say (ABC4) Utah pharmacist disciplined for fraudulently filling out COVID-19 vaccine cards (KUTV) US COVID-19 cases rising again, doubling over three weeks (AP) With the delta variant spreading, vaccine deserts are becoming increasingly concerning (Deseret News) Economic Development Weber County Commissioner Gage Froerer is aiding with Utah economic development strategy on new commission (Standard-Examiner) Economy Utah Restaurant Association celebrates Utahâs resilient restaurant industry (Utah Business) July 2021 Economic Snapshot: As COVID recedes, job growth accelerates (Zions Bank) Elections On Message with Marty Carpenter: Ya lost me there (UTPOL Underground) Environment Suzanne Harrison: Public lands pay dividends, and false narratives hurt Utahns the most (Salt Lake Tribune) Family Perspective: Andrew Cuomoâs daughter may have made it hip, but âdemisexualâ is a tale as old as time (Deseret News) Legal Salt Lake City business owner sues the DABC after it took away her bar license (Salt Lake Tribune) National Headlines General There's a word for what Trumpism is becoming and it's time to start using that F-word again, writes David Frum, former speechwriter for President George W. Bush. (The Atlantic) Acclaim, fundraising spread unevenly among Black colleges (AP) US invites UNâs racism and human rights envoys to visit (AP) Politics In Philadelphia, Biden assails the election lie spread by Republicans: âHave you no shame?â (New York Times) Senate Democrats Announce $3.5 Trillion Budget Agreement (NPR) More money, more problems: Cheney and Kinzinger feel Trump effect (Politico) VP Harris emerges as main GOP foil on campaign trail (The Hill) Economy Prices rise 5.4 percent in June over last year, largest spike since 2008, as economy continues to recover (Washington Post) Lumber Prices Are Way DownâBut Donât Expect New Houses to Cost Less (Wall Street Journal) Energy OPEC Reaches Compromise With U.A.E. Over Oil Production (Wall Street Journal) Energy Department Targets Vastly Cheaper Batteries to Clean Up the Grid (New York Times) Environment AP Interview: EPA water chief on clean water protections (AP) International 'I came here to fight': Rare footage of Ethiopia's Tigray (AP) South African crowds rampage, hospital operations disrupted (Reuters) | | |
Policy News Wasatch Innovation Network launched to promote Utah innovation and business Public and private sector organizations across Utah gathered Tuesday to announce a statewide multi-industry initiative to promote research, development and commercialization with the goal of developing Utah as a global innovation economy. The new organization called the Wasatch Innovation Network (WIN) is a 501(c)6 nonprofit that will promote Utah as an international leader in innovation, technology transfer, manufacturing and marketing, as well as offer support services to businesses throughout the state. (Read More) Rep. Stewart secures bipartisan agreement to obtain JEDI investigation information Congressman Chris Stewart (R-UT) secured a bipartisan agreement to obtain documentation and information from the U.S. Department of Defense (DOD). This critical information is regarding the findings of an investigation into the Joint Enterprise Defense Infrastructure (JEDI) program. The ten-year, $10 billion contract is ride with ethical and procurement issues. Despite that fact, and despite multiple requests from Rep. Stewart, the DOD has failed to deliver full responses regarding these serious concerns. (Read More) Sen. Lee and Rep. Buck question Amazonâs role in JEDI contract After indications of Amazon improperly influencing the Department of Defenseâs Joint Enterprise Defense Infrastructure (JEDI) contract bidding process, Sen. Mike Lee (R-UT) and Rep. Ken Buck (R-CO) issued the following statement.
Sen. Lee and Rep. Buck stated jointly, âThis is exactly what we were concerned about, and it contradicts Amazonâs insistence that there is nothing to see here. Itâs becoming more and more clear that Amazon used its market power and paid-for connections to circumvent ethical boundaries and avoid competition in an attempt to win this contract. Now, more than ever, we need to ask Amazon, under oath, whether it tried to improperly influence the largest federal contract in history.â Read More As Utah struggles with labor shortages, business/community leaders join Dreamers in urging Sens. Romney & Lee to back bipartisan immigration bills With Utah hard hit by long-term labor shortages that have grown more severe during the pandemic, business and community leaders will stand alongside Dreamers to urge Utahâs Republican Sens. Mitt Romney and Mike Lee that immigrant workers are vital to the stateâs workforce and key to our economic recovery.
The American Business Immigration Coalition Intermountain Chapter, Salt Lake City Chamber, New American Economy, Salt Lake Area Restaurant Association, Utah World Trade Center, and Mormon Women for Ethical Government will hold anews conference Wednesday, July 14, at the World Trade Center (60 East South Temple, Suite 300) in Salt Lake City, at 3:30 pm MT. (Read More) Romney office announces staff changes U.S. Senator Mitt Romney (R-UT) today announced the following changes to his communications staff: Brianna Manzelli, Communications Director, Paige Waltz, Deputy Communications Director, Arielle Mueller, Press Secretary and Dilan Maxfield, Deputy Press Secretary and Digital Director. Read more about them here.
| | |
| By Polly Policy With a very large revenue surplus to be reported in the coming month, the question becomes â What will lawmakers do with the money? Weâve heard suggestions of continuing to spend it on large projects or do very large WPU value increases, upwards of 15%. Others have suggested giving a $300 million or $400 million tax cut. Weâve heard some suggest that a $300 million or $400 million tax cut is too small, while others say itâs very large. Which one is it? The answer lies in the denominator.
Growth in the State Budget
The state budget comprises revenue from sales tax, income tax, and a host of other taxes. On a broader view, it also includes revenue from the federal government, fees, fines, and other revenue sources. Looking specifically at what lawmakers typically consider â free revenue â revenue will be up almost $4 billion since 2016. Thatâs growth of almost 60% in just six years. Virtually all of this has been spent. A $300 Million Tax Cut as a Percent of the State Budget With this background in mind, how much would a $300 million tax cut be? Looking towards 2022, total revenue to the free revenue bucket of the state government (General Fund/Education Fund) will be around $9.5 billion. Putting $300 million in the numerator and $9.5 billion in the denominator gives a tax cut of 3% for fiscal year 2022. Is 3% small, medium, or large? To answer this, letâs look at how much a $300 million tax cut would have been since 2004. How much would a $300 million tax cut be in past years? The trend is downwards. In 2004, a $300 million tax cut would have been around 7.4%. In 2008, when policymakers opted for $400 million in tax cuts, the tax cut was around 6%. As mentioned, in 2022, a $300 million tax cut is much smaller at 3%. A $300 Million Tax Cut Relative to âNewâ Revenue Typically, policymakers donât deal with the large base of revenue, instead focusing on new ongoing and one-time revenue. How much would a $300 million tax cut be of the new ongoing and one-time revenue in the coming legislative session? Assuming a state surplus of $800 million in fiscal year 2021 and 6% growth in fiscal year 2022, legislators will have around $1.3 â $1.6 billion in ongoing revenue and probably at least $800 million in one-time money (and likely much more). Using $1.5 billion ongoing plus $800 million one-time as the numbers, a $300 million tax cut would be around 20% of new ongoing money or around 13% of all money available to spend. Consistent with the prior analysis, a $300 million tax cut seems somewhere between small and medium. Parting Thoughts In thinking through whether a $300 million tax cut is small, medium, or large, the answer seems to be that a $300 million tax cut would be somewhere between small and medium. With massive spending in prior years and more to come from the federal government, will taxpayers get some relief this year? Youâll certainly hear about spending pressures from advocates and ânon-partisanâ analysts, most, perhaps all, of which is justified. A moderately sized tax relief package is also justified. Who will win out this year â taxpayers or spending growth? In reality, itâs not really one or the other. With the amount of money available, spending will grow much faster than almost everyoneâs pocketbooks â the question is by how much. | | |
Upcoming Securing the American Dream: A conversation with Tim Scott presented by the Hatch Foundation â Aug 11 @ noon. Register here Utah Foundation Annual Luncheon with Shaylyn Romney Garrett â Sept 23 @ 12 pm. Register here | | |
On This Day In History From History.com 1099 - Jerusalem captured in the First Crusade 1789 - French revolutionaries storm the Bastille, marking the beginning of the French Revolution. 1881 - Billy the Kid is shot and killed by Sheriff Pat Garrett. He was 21. 1911 - Gertrude Goldhaber is born. She became a physicist and early researcher into nuclear structure and the properties of nuclei. She was the third woman to be elected to the National Academy of Sciences. 1913 - Gerald R. Ford is born. 1917 - 16 women from the National Womenâs Party were arrested while picketing the White House demanding universal womenâs suffrage; they were charged with obstructing traffic. 1936 - Buddhist nun Pema Chodron is born Wise Words "All situations teach you, and often itâs the tough ones that teach you best."
-Pema Chodron Lighter Side After Fox News called Arizona for Biden on election night, Giuliani advised the former president, âJust go declare victory right now. Youâve got to go declare victory now.â Itâs an age-old strategy: After a devastating loss, just say you won.â â STEPHEN COLBERT | | |
| â Advertise With Us â Subscribers may receive special messages with information about new features, special offers, or public policy messages from clients and advertisers. |
|
|
