The Utah Legislature will meet for a special session this Wednesday the 19th to discuss, among other things, how to allocate roughly $1.7 billion the federal government is sending to the state per the American Rescue Plan Act (ARPA) passed by Congress in early March.
“Utah is in an enviable position,” Utah House Speaker Brad Wilson told Utah Political Underground. “The state is in remarkably good shape with the fastest growing economy, the lowest unemployment rate, and fastest-growing population over the last decade.”
Wilson and his Republican colleagues met in caucus last week to discuss how best to appropriate these funds. “Fortunately we do not need to use the ARPA funds to backfill holes in the state budgets, something many other states are doing.” he said. The Beehive state posted a record tax revenue surplus last fiscal year leaving little wanting.
Due to this benefit, state lawmakers can focus on other projects to benefit the state. “We are determined to use this opportunity in a way that catapults us over the next decade or more and not just celebrate the spot the state is in right now,” Wilson said. He acknowledges this is a “tricker question than people would think.”
Although $1.7 billion is available for use at the state’s disposal, Wilson and his Republican colleagues are opting to take a more cautious approach. “It’s probably more prudent to move a little slower than how some other states are spending this money,” he said. “There’s a tremendous amount of uncertainty coming from the federal government relative to additional spending packages in the near future.”
Utah’s federal delegation is speculating that a larger federal infrastructure package will probably pass sometime later this year according to Wilson. He is being told that this next package will likely require a large state match of funds over a seven year period. This is significant since the ARPA money can be spent within the next three years.
“If these two federal funds are going to be layered over the top of each other then we will want to keep some powder dry regarding ARPA funds until we have more clarity,” Wilson said.
State legislators are also juggling questions about Utah’s rip-roaring economy and the national economic outlook in general. Wilson wants to avoid adding to the increased inflation affecting “some areas of the economy that are probably overheated.” Additionally, lawmakers want to ensure they spend ARPA funds in line with federal government guidance to avoid having to pay the money back.
Lastly, Wilson wants a better understanding of what the needs of the economy are, particularly as the state moves to a fully post pandemic condition. Sidelining most of the money till later will give state legislators options.
ACTIONS PLANNED FOR THE SPECIAL SESSION
Wilson intends to set aside a large majority of the $1.7 billion till next year’s general session in January. “We want to put this money through a normal appropriations process to better grasp the needs of the whole state,” he said.
During this week’s special session, the money will be put in buckets of priorities to hold till later. “The largest bucket is infrastructure. That includes water, sewer, and broadband,” Wilson said. This will consist of roughly half of the funds.
Wilson said the other half of funds will be put into buckets that include health response, education needs, and other water infrastructure projects.
“We’re going to try to set aside around $280 million for water,” he said. Wilson anticipates charging lawmakers that lead the state’s natural resource, appropriations, and policy committees to list priorities for the expenditure of the first $100 million, and do that by the end of the summer. The remaining funds will be addressed next year.
CYBERSECURITY INFRASTRUCTURE
The hacking of the Colonial Pipeline led to gas station lines last week reminiscent of the 1970s in the southern United States. This failure in energy infrastructure security has led many in the country to discuss our vulnerabilities.
“It’s pretty scary,” Wilson said in reference to the hacking. “If there’s anything we’ve learned from this event and over the last 14 months of the pandemic, it’s that our society has vulnerabilities. A number of cases, whether it’s social unrest, a pandemic, or cyberattacks, the world is getting more chaotic and our ability to play defense needs to be better.”
Wilson said he has recently talked with those in our state who are involved with defending against cyber attacks to ensure the state is doing what is needed to protect our infrastructure.
VACCINE LOTTERY
Late last week, Governor Spencer Cox publicly mused on Twitter whether to create a million-dollar lottery for all Utahns who have received their COVID-19 vaccine. Ohio is already moving forward with a similar program to encourage more to get the vaccine. Cox said he would be open to the idea but acknowledged he would certainly need legislative approval.
Wilson said he had talked with the governor about the idea. “I am not saying no, but I just think we all need to think about the proper role of government in this space,” Wilson said. “We’ve got to be a little careful on where the government’s responsibility ends and where individuals need to take more responsibility.”
The Speaker said he is interested in anything that will help the state reach herd immunity as soon as possible. But noted that he thinks the state is already quickly approaching the “high-water mark in terms of the number of people in the state who will choose to get the vaccine regardless of whether there is an incentive.”
