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Initiative 1 an all-around bad deal for Utah
Mike Jerman
Utah's taxpayers are under attack from the well-funded groups pushing Initiative 1.
Initiative 1, the tax increase to preserve so-called "open" space is a seriously flawed proposal and should be rejected by Utah voters. If approved, Initiative 1 will increase an already mushrooming state debt by $150 million and increase Utah's third highest state/local tax and fee burden by $15 million per year.
The increases in taxes and debt are, unfortunately, only part of the problem.
Contrary to the hysterical claims of the
environmental lobby, a new statewide tax increase which duplicates current federal, state and local efforts to protect the environment is not needed. Utah cities are aggressively
preserving open space by issuing millions of dollars in open space bonds, including cities with low or moderate tax bases. Cities are also promoting higher density housing, which saves open space.
Urban open space is a local priority and funding should be determined and provided by local taxpayers.
Initiative 1 would require taxpayers in Weber County to pay for urban open space preservation in Provo.
Federal and state governments have preserved millions of acres of rural open space which account for 78 percent of Utah's total lands.
Utah is known for beautiful canyons, mountains and deserts, nearly all of which are permanently protected from development. Moreover, rural areas are not experiencing economic growth and therefore lands in those areas are not threatened by development.
The state already plays a significant role in improving air and water quality and wildlife habitat since air and watersheds are not confined to city boundaries. Utah spends $200 million annually to achieve these goals. As a result of these efforts, Utah's air and water quality have improved dramatically in the past 20 years.
Initiative 1 lacks sufficient provisions to ensure accountability to taxpayers. Proceeds from Initiative 1 will be spent by an unelected, appointed board. Initiative 1 proposes to spend $150 million -- $192 million when interest is included -- but Utahns have not been told what lands will be preserved. When seeking approval for bonds, school districts routinely specify how and where the money will be spent. Voters should demand that the initiative supporters explain how they intend to spend $150 million.
Initiative 1 also allows $30 million to be spent for convention centers and city and county buildings, quite surprising for an initiative that is being billed as "open" space preservation. Like urban open space, convention centers and local government buildings should be funded by local taxes, not a statewide tax increase. Taxpayers in Weber County should not pay for convention centers in Moab and Panguitch.
Initiative 1 proponents claim that this tax and debt increase will improve Utah's economy by increasing big game hunting and tourism. However, the most productive way to increase tourism is to increase advertising dollars targeted towards out-of-state tourists, not imposing a new, unneeded statewide tax.
Proponents claim that Initiative 1 is just a "small" tax increase, but considering Utah's already high tax burden, taxpayers should be insisting on tax cuts, not tax increases. Utahns are regularly subjected to new "small" tax increases, including an annual $4 million increase in state income taxes because the state continues to refuse to index income tax brackets to inflation. These "small" tax increases have been adding up to the third highest state/local tax and fee burdens in the nation.
Initiative supporters falsely argue that Initiative 1 will not harm education funding because this would be a new tax. Utah's burgeoning public education system will require additional funding, but the unneeded Initiative 1 tax increase reduces the remaining tax base available to education.
Utah's state debt has skyrocketed from $420 million in 1997 to $1.7 billion in 2003, and yet the state still has not addressed significant capital needs such as university buildings and transportation.
Initiative 1 reduces the state's ability to fund these needed improvements.
If Initiative 1 passes, Utahns will be subject to the same initiative circus that Californians
endure every two years as well-funded special interest groups try to increase taxes by initiative.
Initiative 1 is a "feel-good" proposal, but it is seriously flawed and endangers Utah's tax structure and economy. Taxpayers should vote no on Initiative 1.
Mike Jerman is vice president of the Utah Taxpayers Association.
This story appeared in The Daily Herald on page A7.
Initiative 1 an all-around bad deal for Utah
Mike Jerman
Utah's taxpayers are under attack from the well-funded groups pushing Initiative 1.
Initiative 1, the tax increase to preserve so-called "open" space is a seriously flawed proposal and should be rejected by Utah voters. If approved, Initiative 1 will increase an already mushrooming state debt by $150 million and increase Utah's third highest state/local tax and fee burden by $15 million per year.
The increases in taxes and debt are, unfortunately, only part of the problem.
Contrary to the hysterical claims of the
environmental lobby, a new statewide tax increase which duplicates current federal, state and local efforts to protect the environment is not needed. Utah cities are aggressively
preserving open space by issuing millions of dollars in open space bonds, including cities with low or moderate tax bases. Cities are also promoting higher density housing, which saves open space.
Urban open space is a local priority and funding should be determined and provided by local taxpayers.
Initiative 1 would require taxpayers in Weber County to pay for urban open space preservation in Provo.
Federal and state governments have preserved millions of acres of rural open space which account for 78 percent of Utah's total lands.
Utah is known for beautiful canyons, mountains and deserts, nearly all of which are permanently protected from development. Moreover, rural areas are not experiencing economic growth and therefore lands in those areas are not threatened by development.
The state already plays a significant role in improving air and water quality and wildlife habitat since air and watersheds are not confined to city boundaries. Utah spends $200 million annually to achieve these goals. As a result of these efforts, Utah's air and water quality have improved dramatically in the past 20 years.
Initiative 1 lacks sufficient provisions to ensure accountability to taxpayers. Proceeds from Initiative 1 will be spent by an unelected, appointed board. Initiative 1 proposes to spend $150 million -- $192 million when interest is included -- but Utahns have not been told what lands will be preserved. When seeking approval for bonds, school districts routinely specify how and where the money will be spent. Voters should demand that the initiative supporters explain how they intend to spend $150 million.
Initiative 1 also allows $30 million to be spent for convention centers and city and county buildings, quite surprising for an initiative that is being billed as "open" space preservation. Like urban open space, convention centers and local government buildings should be funded by local taxes, not a statewide tax increase. Taxpayers in Weber County should not pay for convention centers in Moab and Panguitch.
Initiative 1 proponents claim that this tax and debt increase will improve Utah's economy by increasing big game hunting and tourism. However, the most productive way to increase tourism is to increase advertising dollars targeted towards out-of-state tourists, not imposing a new, unneeded statewide tax.
Proponents claim that Initiative 1 is just a "small" tax increase, but considering Utah's already high tax burden, taxpayers should be insisting on tax cuts, not tax increases. Utahns are regularly subjected to new "small" tax increases, including an annual $4 million increase in state income taxes because the state continues to refuse to index income tax brackets to inflation. These "small" tax increases have been adding up to the third highest state/local tax and fee burdens in the nation.
Initiative supporters falsely argue that Initiative 1 will not harm education funding because this would be a new tax. Utah's burgeoning public education system will require additional funding, but the unneeded Initiative 1 tax increase reduces the remaining tax base available to education.
Utah's state debt has skyrocketed from $420 million in 1997 to $1.7 billion in 2003, and yet the state still has not addressed significant capital needs such as university buildings and transportation.
Initiative 1 reduces the state's ability to fund these needed improvements.
If Initiative 1 passes, Utahns will be subject to the same initiative circus that Californians
endure every two years as well-funded special interest groups try to increase taxes by initiative.
Initiative 1 is a "feel-good" proposal, but it is seriously flawed and endangers Utah's tax structure and economy. Taxpayers should vote no on Initiative 1.
Mike Jerman is vice president of the Utah Taxpayers Association.
This story appeared in The Daily Herald on page A7.