The New Session is Underway

Another legislative session for the Utah State Legislature has begun.

I keep hearing the buzzwords “Structural Deficit Repair”. Of course, we know there have been big budget problems lately. The amount of money coming in has been less than the cost of running the State and since we are required to have a balanced budget, for the last two years some of the shortages have been covered with “one-time money”. That is like paying your grocery bill from your savings account. You can do that for a little while but unless you can get a steady stream of money coming in from somewhere else soon, eventually you run out of savings and you better plan to stop eating!

Legislators have committed to bring the cost of government down to the amount of money that current taxes are bringing in. They don’t want to raise any taxes so hold onto your hats! -- we can expect another round of budget cuts this year.

If we knew how long the effects of the recession would last, we could ration the rainy day fund and other resources. But that is something no one knows.

The cuts that are being proposed may also prolong the recession. Cuts in services leave more and more people relying on public aid. One department meets their budget by cutting positions and that increases the number of people looking for jobs elsewhere. The private sector contractors for the state have fewer orders to fill and so they, like the rest of the private sector, are impacted. They aren't hiring either.

When there is high unemployment, it is a great time to retool with additional skills to make yourself more employable. Enrollment in institutions of higher education are growing all over the state. The problem is, public institutions of high education are facing budget cuts too. To meet their budgets, either the educators and administrators or the students will suffer -- or, as is most likely, both. Fewer workers, more demand for public services, and fewer options for additional job training will undoubtedly extend the recession and its attendant unemployment.

I don't envy the legislators their decisions but I have a bias toward preparing for the future. I am convinced that maintaining opportunities for training, to make workers more self-reliant, is among the most important things we can do.