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The Utah Legislature voiced strong support for a "Cut, Cap and Balance" proposal in Congress that seeks to make deep cuts to federal spending and implement a balanced-budget amendment to the U.S. Constitution.
Rep. Wayne Harper, R-West Jordan, said the amendment is needed to stop "out of control" spending by Congress that could result in "an Armageddon in fiscal policy."
"If we don't, as a country, manage the budget … the budget will manage us and lienholders will be our masters for generations," Harper said.
Sponsors of the resolution wanted Utah to take the lead, hoping that other states would follow suit. It passed the Senate by a vote of 24-1 and the House by a vote of 51-12. The governor is expected to sign it when it reaches his desk.
Supporters called the passage of the resolution "pre-ratification," signaling that Utah would ratify the specific balanced-budget amendment if it is passed by Congress — although it isn't possible to "pre-ratify" an amendment and the body would still have to vote to approve any amendment that is passed.
The resolution was added to the agenda for Wednesday's special session at the urging of U.S. Sen. Mike Lee, R-Utah, who is sponsoring a balanced-budget amendment, and the language in the resolution copies his amendment.
"I think it's a great show of momentum heading into a discussion on the floor of the Senate," said Lee's chief of staff, Spencer Stokes. "The plan is that the Utah Legislature would send this out to other state legislatures across America and, hopefully, encourage them to do something similar."
Lee spoke with a number of legislators about the amendment by phone Wednesday, and state Sen. Margaret Dayton, R-Orem, in the midst of proposing an amendment on the Senate floor, took a call from Stokes offering input on the proposed change.
State Sen. Stuart Reid, R-Ogden, said he texted Stokes after the passage and told him: "Now it's your turn to make hay out of this."
House Minority Leader David Litvack, D-Salt Lake City, called it "politics as usual" for Washington and lamented that Utah was being sucked into the fray.
"This resolution, in my humblest opinion, is inserting us into the quagmire of the partisan mess at our national level," he said. "We've avoided that partisan bickering and nastiness, but now, we're engaging in it wholeheartedly. … It saddens me that — where we can debate if this should even be on the agenda — we're jumping in with both feet."
House Speaker Becky Lockhart, R-Provo, had concerns that the language in the resolution was too specific and made clear that the Legislature wouldn't be obligated to ratify a constitutional amendment.
"I'm going to support this resolution, but I'm not happy doing it," she said. At the same time, she said that Congress needs to get the message: "Do your job, balance the budget. We do it every year. What is wrong with you? It is high time you grow up."
Sen. Stuart Reid, R-Ogden, said it is appropriate that Utah makes its viewpoint known "because of what's being debated at the federal level."
Gov. Gary Herbert's spokeswoman, Ally Isom, said the resolution "reminds Washington to get its financial house in order. "
"Utah has made the tough decisions and balanced our budget every year. The undeniable result is greater business confidence and economic stability," she said. "What is good for Utah is good for Washington."
The Legislature passed a more generic resolution during its general session earlier this year supporting a balanced-budget amendment but without the specificity of the measure passed Wednesday.
The amendment backed by the Legislature would require a two-thirds vote from Congress to raise taxes, mandate that the president submit a balanced budget and that federal spending be capped at 18 percent of the U.S. gross domestic product. Currently, that level is between 25 percent and 27 percent.
According to U.S. Census Bureau figures, the federal government spent $24.5 billion in Utah in the 2009 fiscal year on things like defense, roads, social services grants, salaries for federal employees and the like. That means an across-the-board reduction would cost Utah $1.7 billion to $2.2 billion in federal spending.
Harper said that is why the amendment calls for the spending cuts to be phased in over five years, so the states can adjust to the decreased spending.
Senate President Michael Waddoups, R-Taylorsville, said that, if there are cuts that have to be made, "we're prepared to do whatever it takes."
"It's times like this that patriots stand up and protect the Founding Fathers' dream of a better future for our children," he said.
Other work
In addition to the resolution supporting a balanced-budget amendment, the Utah Legislature passed five other bills during Wednesday's special session.
Senate Bill 2002 • Makes several minor changes to Utah liquor policies. It eases conflict-of-interest rules for liquor division staff and compliance officers, requires concessionaires in national and state parks to obtain a license to sell beer, and allows bar licenses to be transferred when a bar is sold. Currently, if a bar is sold, the buyer has to apply for a license, but the state has maxed out its quota of licenses, delaying sales.
House Bill 2003 • The bill would change the tiers that insurance companies can charge customers and lets them shift some costs. The sponsor, Rep. Jim Dunnigan, R-Taylorsville, an insurance agent, conceded during debate it would mean older customers or those with large families could pay slightly more, while single parents and young people could pay less.
House Bill 2001 • The measure would change the schedule for the evaluation of justice court judges, which was deemed to be unworkable. Under the proposed change, smaller jurisdictions with part-time judges would have their reviews delayed.
House Bill 2002 • Makes a minor revision to a board designed to review whether to move Utah State Prison from Draper. Instead of legislators serving directly on the panel, legislative leaders can designate representatives to the board.
Senate Bill 2001 • The Legislature previously had said that special service districts may not back bonds with expected payments from federal mineral lease payments after Dec. 31, 2010. The bill would extend the deadline for 10 years.