Taxing Times
A Service of the Utah Taxpayers Association

Contact Information
taxwatch@utahtaxpayers.org
(801) 972-8814
1578 W 1700 S suite 201, S.L.C. UT 84104


October 14, 2004

Coming soon in future editions of Taxing Times:

  • How much would it take to bring Utah's
    K-12 spending to the national average?

  • Banks and Credit Unions

  • Jones-Mascaro Tax



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Initiative 1 Supporters
Continue to Mislead
Taxpayers

Initiative 1, the so-called “open space” ballot initiative is actually a “pig in a poke,” because nobody knows (and the proponents won’t say) specifically what the $195 million tax increase will be spent for. All we do know is that $45 million will be used for interest on bonds, $5 million must go to the Museum of Natural History , and $25 million is to be spent for convention centers and other local buildings – hardly open space. Advocates refuse to tell voters which communities have been promised this money. These are facilities which have always been funded by local governments. If Initiative 1 passes, over 250 local entities will compete for $25 million and, on average, will end up getting less than $100,000 each – a far cry from the big bucks hoped for.

Opposing Initiative 1 is like David against Goliath. The liberal environmentalists are spending millions to convince Utah voters that they’re promoting motherhood and apple pie when in fact, they’re increasing taxes for pork-barrel spending by an unelected body. They’re also trying to convince voters the initiative is necessary because Utah state and local governments are doing little to protect the environment, improve habitat, and provide for open space when in fact, Utah has spent well over $5 billion for these purposes during the past ten years alone! During the last 50 years, Utah ’s air and water have never been cleaner! Communities across the state are spending millions annually and passing local bonds to preserve open space. Farmland is being protected through greenbelt laws.

A statewide tax of $195 million – to be spent by an unelected body which is easily influenced by special interests – is madness!

As Leaders Learn about Initiative 1, They Announce Their Opposition

Every day more leaders are announcing opposition to Initiative 1 as they become aware of the many problems it creates. Governor Walker said the initiative doesn’t make sense because it requires state bonds to be used for projects owned by local governments and non-profits. She’s also concerned that the initiative would require, for the first time in state history, state government to pay property taxes on public facilities. View the Governor's press release here.

Utah’s Tax Review Commission has studied Initiative 1 for two months and has issued a statement raising numerous warnings about the measure. They warned about the dangers of earmarking taxes, and the threat Initiative 1 poses to the state’s limited bonding capacity and the high cost of a diminished bond rating. To read the Tax Review Commission's statement on Initiative 1 click here.

House and Senate Majority Leadership announced their opposition last week expressing their concerns about significantly increasing the state's debt which could take a serious toll on our ability to maintain our Triple A Bond Rating. Furthermore, they warned it will harm our capacity to fund other needs traditionally funded by bonding. Nearly 50 legislators have formally opposed the initiative along with dozens of county commissioners, mayors, and other leaders. View Legislative Leadership's press release here.

Former Utah House Speakers and U.S. Congressmen Jim Hansen and Howard Nielsen warned that this initiative violates the principles of representative government. It places taxes and spending on “auto pilot” and diminishes the ability of elected representatives to weigh budget priorities. They are concerned that if Initiative 1 passes, Utah will become like California with several "feel good" tax hikes on the ballot each year, as paid petition gatherers flood the state with initiatives bank-rolled by well-funded out-of-state interests.

The Southwest Five-County Association of Governments recently heard a presentation by the proponents of Initiative 1 and then voted unanimously to oppose the measure. These are county commissioners, mayors, and local school officials who have read the initiative and see though its “feel good” rhetoric. View full opposition list here.

Limiting Natural Resource Development

Former San Juan County Commissioner Bill Redd probably summed it up best when he warned that this money could be used to place off-limits for development natural resources which may be the future economic base of many rural communities. It is not a coincidence that some of the leading supporters of Initiative 1 stood on the South Rim of the Grand Canyon with Bill Clinton when he announced the creation of the Grand Staircase – Escalante National Monument. This locked up the largest coal reserve in North America and devastated economic potential in Kane County . There is no guarantee that Initiative 1 will not be used in a similar fashion to limit Utah ’s natural resource development.

The unelected Quality Growth Commission, which has administered the LeRay McAllister fund will also have authority to spend this $150 million. This is the group which has misspent much of the McAllister fund by purchasing controversial conservation easements in remote parts of Utah which aren’t likely to be threatened by development for thousands of years. The largest expenditure involved spending nearly $1 million to provide a conservation easement on the Castle Rock Ranch on the Wyoming border which is closed to public access. Although the property currently has some oil wells, the easement closes the land to new oil exploration or production.
Rural elected officials fear this is the type of negative activity this new tax will be used for. Is it any wonder the Legislature is losing confidence in the Quality Growth Commission?

The environmental lobby is trying to scare Utahns into thinking that the environment will suffer if Initiative 1 is not passed. Efforts to protect the environment at the federal, state, and local level as well as through private funds are immense and successful.

  • Federal and state governments own 78% of Utah’s land
  • State government spends more than $200 million per year to improve water and air quality, protect wildlife habitat, and support state parks.The State Trust Lands Administration has secured a half million acres of open space in the past ten years through various land swaps.
  • Local governments have issued millions of dollars in open space bonds.
  • In Salt Lake County, private companies are current spending more than a $100 million in groundwater cleanup.
  • Utah’s water quality is better now than twenty years ago. In 1985, nearly 24% of Utah stream-miles did not meet federal water quality standards. In 2002, that was cut in half to 12%. Utah’s air quality has improved immensely as pollution levels for carbon monoxide, ozone, sulfur dioxide, nitrogen dioxide, and PM10 have decreased significantly in the past twenty years.

    To see the extensive and successful efforts to protect the environment in Utah, click here.

To read responses to Initiative 1 proponents click here.

Utah taxpayers should vote no.
Help defeat Initiative 1 by
picking up a lawn sign at:
1578 West 1700 South, Suite 201
Salt Lake City, UT 84104


or call
801-972-8814

Please Forward this e-mail to your contact list!

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