2020 Legislative Session Week 5

*|MC:SUBJECT|*

Checking In At The Legislature: 2020 Session Week 5

Friends and Neighbors,

The most important conversation at the Utah House this week has been evaluating the legislative budget to know what options we have for funding state needs and keeping a balanced budget. We have passed legislation and done work to evaluate the efficiencies or changing inefficient spending. Click here to see some of that legislation.

Despite the savings, we have very little money in the 2020 General Fund: -$12 million in ongoing, and $92 million for ongoing. Yet, we have more than $600 million in requests for legislative funding this year. With our budget imbalance and no tax reform being discussed, the House GOP caucus decided Thursday to set aside $100 million from the education fund to a rainy-day fund for future education investment as possible economic "storm clouds" roll in on the horizon from uncertainty surrounding coronavirus.

I wanted to share with you a letter directly from Kristen Cox, Executive Director Governor's Office of Management and Budget and Senior Policy Advisor to Governor Herbert. It is the governor's evaluation of recent cost savings that I wish every Utahn knew about.

-Melissa

Letter From Kristen Cox

Governor and Chief,

I wanted to make sure you have all of the relevant data points when it comes to how much money we have saved through labor costs since the Governor took office. The numbers are impressive.

I was concerned that there may have been some confusion. The total is still the nearly $400 million we have used in the past (a breakdown of the numbers is included below). These figures represent only labor costs and are even higher if we look at the cumulative numbers. We are now working on examples of cost avoidance because of improved services such as fewer kids returning to JJS or child welfare.

In Fiscal Year 2009 (the fiscal year before the Governor took office), there were 127 Utahns for every FTE
In Fiscal Year 2018, there were 154 Utahns for every state FTE.
If the state had not improved from the 127 Utahns per FTE to the 154 Utahns per FTE, we would need to support 4,262 MORE employees in the current state budget. The cost of supporting 4,262 FTEs at last year's average salary and benefit rates is over $368 million in total funds (rounded to $400 as a talking point with the expectation that FY 2019 may improve even further). This savings number represents an ongoing cost avoidance in the current budget, but it is not the cumulative cost avoidance since FY 2009. For example, each year we improved the ratio. One year we may have improved the ration by $45 million, and then the next by another $45 million. After those two years, we would have had a total of $90 million in ongoing savings.
The cumulative savings is higher and different than the ongoing savings we have of nearly $400 million. Estimated cumulative savings are difficult to calculate with precision because we don't have a reliable time series of average salary and benefit costs on a per FTE basis going back to FY 2009. However, if we back-out the annual legislatively appropriated cost of living adjustments and PEHP health increases each year from FY 2009 to FY 2018, and assume the other determinants to the current FTE average compensation figure have been constant (e.g. not including the effects of retirement reform, agency-specific administrative salary increases or changes in benefited employee mix), it's estimated that we have avoided cumulative costs of over $2 billion in personnel expenditures from FY 2010 to FY 2018 if the state had to carry one FTE for every 127 Utahns each year. This figure represents the cost savings for each year added together. The $368 million figure represents the ongoing savings we have in this current fiscal year.

These numbers don't include the gains made through improving quality, avoiding rework, time saved for customers. etc. As I mentioned, we are working on examples for these types of situations and there are many. Another example, we have saved millions just by improving how UDOT manages its snowplows.

Kristen Cox

Executive Director, Governor's Office of Management and Budget
and Senior Policy Advisor to Governor Gary R. Herbert

Executive Summary Of USHE Institutional Efficiencies

For a savings of over $20 million from just 2018-2019. For the summary of this report, click here.

In This Issue:

Red Week at the Capitol: Davis County Republican Women, Utah Federation of Republican Women, and UEA
Week 5 bills that passed the House as of 3/2/20, click here
Update on my legislation: HB313 Telehealth, HB40 Water Loss Accounting, HJR13 State Board of Educ Governance Redistricting
Executive Summary Of USHE Institutional Efficiencies
Honoring Retiring Pastor France Davis of Calvary Baptist Church
Visitors to the Capitol
Bagels and Briefings Saturday 10-11:30 am at Rep Ray Ward’s home

It’s Been A Red Week At The Capitol!

Davis County Republican Women and Utah Federation of Republican Women visited the capitol to encourage women throughout Utah to be engaged in civic affairs. For an article about this, click here.

Speaking to Utah Federation of Republican Women in the Gold Room

Speaking to Davis County Republican Women

Daniella Harding, Pres of Davis County Republican Party, and her daughter, Erin on the House Floor

Chase Clyde - UEA Government Relations
Sara Jones - UEA Government Relations
Jessica Dunn - Jordan UniServ Director

UEA walked out of classes to be at the capitol to ask for more funding. The House GOP caucus decided Thursday to set aside $100 million in a rainy day fund for future education investment as possible economic “storm clouds” roll in on the horizon from uncertainty surrounding coronavirus.

Update On My Legislation

HB313 Telehealth Parity Amendments passed the House unanimously after working countless hours with Utah Medical Association, nurses, insurance companies, and other organizations.

IHC VP Doug Hammer

With Utah Medical Association President Michelle McOmber and UMA Director of Government Affairs Mark Britton

With Representative Gibson, Alan Dayton VP government relations and Intermountain Healthcare, and Kerry Palakanis Executive Director Connect Care

With Wayne Jones President of Utah Pharmacy Association, North Salt Lake resident Shawn Springs, and Executive Director Adam Jones

HB40 Water Loss Accounting Act

HB40 Water Loss Accounting Act passed unanimously in the House after attending more than 15 work meetings with water stakeholders from across the state

HJR13 State School Board Governance

Click here for an audio of the committee hearing. Which is a stronger vote for driving education? Your vote for your state party elections delegate? (State School Board members will now be on the ballot as partisan). OR, your vote for your Governor, who has appointed more than half of the State School Board Members, 5 in the last 12 months. Click here for a news article on the committee hearing.

Electric Vehicle Charging Infrastructure Amendments

Last year, the legislature commissioned a study known as the Utah Roadmap to help identify areas of opportunity to reduce emissions further and ensure a healthy, productive, and prosperous future for all Utahns. One of the main areas of opportunity is to position Utah as the market-based electric vehicle state. HB 396 will begin a public-private partnership to help us build a statewide electric transportation infrastructure system. This will allow us to take advantage of new technology and new opportunities.

Notable Prayers, Resolutions, and Bills

Pastor France Davis

Pastor France Davis and Wife retired after 45 years at the Calvary Baptist Church.

Rabbi Sarah Mulhern

Rabbi Sarah Mulhern gave a beautiful prayer on the floor of the House on February 24, 2020, that was included in the record of the House Journal. Video https://le.utah.gov/av/floorArchive.jsp?markerID=109885

400th anniversary of the Mayflower

Redistricting

After months of negotiations, the Utah Legislature and Better Boundaries reached an agreement on redistricting. Better Boundaries and legislators from both political parties support this agreement, which will allow an independent commission to draw political boundaries based on the 2020 census data. This compromise resolves legal complications while still reflecting the voice of the people. To read more about this, click here.