White House: Utah a top job gainer under stimulus
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

The $787 billion stimulus package will create more jobs in Utah than just about any place in the nation, according to White House estimates broken down by congressional district.

All three of Utah's districts are in the top 10 for "employment impact."

In all, the White House expects the massive spending law to create about 3.5 million jobs, about 32,000 of which are estimated to be in Utah.

That might not seem like a lot, but when broken down by area that comes up to 10,600 in Utah's 1st and 2nd districts and 10,900 jobs in the state's 3rd District. The White Houses believes only 12 congressional districts in the nation will gain 10,000 jobs or more.

"It makes sense that Utah would fare pretty well," said Gus Faucher, the director of macroeconomics at Moody's Economy.com, based on the money going to schools and construction projects. He also said the income tax cut will help spur jobs in retail and hospitality, major players in Utah's economy. In combined spending and tax cuts, Utah is expected to receive around $2.5 billion.

President Barack Obama signed the stimulus bill Tuesday saying the spending on things such as roads, education and energy is critical to combat the economic crisis. But Republicans, including Utah's federal representatives, voted against the package saying it is too expensive and unlikely to help the economy rebound.

At best the job estimates are "very very rough," Faucher said, since they are based on economic models that look at the working age population, employment figures and the industrial makeup of each district.

And while he said it is unlikely the White House numbers will prove precise, Faucher said Utah should see major benefits.

Gov. Jon Huntsman Jr.'s Office, though, downplayed the numbers Wednesday.

"This may be most easily attributed to the fact that we have relatively large districts," said Lisa Roskelley, Huntsman's spokeswoman.

The average population for a congressional district is about 700,000 people, but in Utah the average is more than 900,000. The reason is that Utah is one of the nation's fastest growing states and it came up just short of receiving a fourth district following the 2000 Census.

But University of Utah economist Pam Perlich said there's more to the job estimates than that.

"If you look at the composition of the spending, you've got to believe age structure has to be a piece of it," she said.

More than one in five Utahns is school aged, the largest percentage in the nation. As a result, the state is getting a high proportion of education dollars, estimated at more than $500 million. The money will go to such things as school renovations, disability education and Head Start. And a big portion of that will plug holes to make sure teachers are not laid off.

Democratic Rep. Jim Matheson is the only member of Utah's congressional delegation who supported the stimulus, saying he "felt strongly that Utah would do well with job creation in this bill."

With a backlog of projects ready to go and a fast growing population attracting education dollars, Matheson said: "This state easily is ready to step up to the plate."

The district that is expected to gain the most jobs in Utah is the one now represented by Republican Rep. Jason Chaffetz, an outspoken critic of the plan.

He thought Congress should have passed a plan weighted heavily toward tax cuts, saying the nation can't spend its way out of its economic problems.

"I'm opposed to the stimulus bill because I don't think it fundamentally changes the challenges facing our country, but there is obviously some benefit in spending that much money," he said.

Now that it is law, Chaffetz said he wants his district to get everything it can out of the plan.

"I hope that it works," he said. "I have my doubts, but I hope that it works."

mcanham@sltrib.com

Economy » About 32,000 positions would be created in Beehive State.
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