Where was the economist with this policy?

Okay this bill really irks me. It may be a small thing, but it shows how instead of tackling real budgetary issues, legislators are picking at small programs with little monetary payoffs but may come with big bragging rights around election day.

Case in point, Utah House Bill 206 which will eliminate all special license plates devoted to fund raising for groups like University scholarships funds, Boy Scouts, etc. This newly passed bill requires that the DMV axe any plate that does not sell at least 1000 registrations.

How much money will this save the state? Is this the magic cure that will fix any structural imbalance? Well how does $400 a year right back to the state's coffers sound. Wow, forget CHIP, teachers' unions and the like. Wisconsin I found your answer!

Now the economist in me takes over. What about the opportunity cost or forgone income that may come from the sale of these plates. Well, here is sampling:
This plate comes with a donation of $25 to the Division of Wildlife Resources which is funded out of the State Budget.

This plate donates $25 to the Utah Association of Public Education Foundation which uses the money to buy school supplies for K-12 kids which otherwise would be paid for by (you guessed it) the state budget.




Here donors give $25 to their respective college and universities' scholarship funds which are used to educate our future workforce and thus generate more revenue for (drum roll please) the state budget!

So if you do the math, you will find that if at least 16 total Utahns buy these plates the state comes out even.

But no fear this plate was saved:

Which allows allows a state legislator to break the speed limit when they are late to the session. Which reduces speeding tickets issued by the highway patrol and thus reduces funds to the state budget!

The Perfect Answer...

Recently Mitt Romney appeared on Piers Morgan's new talk show on CNN. Piers Morgan asked Mitt Romney about his Mormon faith and whether or not it would be an issue in 2012. Mitt Romney had the perfect answer.

Romney is absolutely right. We should not expect him to deny his faith for political office. What would that say about his integrity? Many bloggers and political commentators talk about his "Mormon Problem". Frankly, it should not even be an issue. American was founded on religious freedom. If Romney does decide to run again then he should not deny his faith, but voters need to reconsider their prejudices.

Utah Legislature on Colbert Report

I couldn't help myself... The Colbert Report recently spotlighted/heckled a bill that is being presented in the Utah State Legislature. The bill proposes legalizing the killing of feral animals. The bill's sponsor is Rep Curt Oda from Clearfield.

The Colbert Report	Mon - Thurs 11:30pm / 10:30c
Mr. Smith Goes to the State Legislature Then Later Possibly Washington - Curtis Oda
www.colbertnation.com
Colbert Report Full Episodes Political Humor & Satire Blog</a> Video Archive

In interest of full disclosure, when I was involved with government affairs, I got to know Rep Oda. He is a very down to earth person and a great representative. But like I said, I couldn't help myself.

Should History be Profitable?

The Salt Lake Tribune reported yesterday that the Utah State Legislature is considering closing five state parks: Edge of the Cedars, Green River, Utah Field House of Natural History, Frontier Heritage, and the Territorial State Capital. If the legislature chooses to close these parks, they will save around $3M. Which raises the question: should historical sites turn a profit and is it responsible to preserve them for history's sake. As an economist (and a grad student), I understand the nature of budget constraints (especially for states who must balance their budgets) but I believe that it is important to preserve history in order for educational and cultural reasons. Although these parks represent Utah history (which is terribly taught in our schools), they are important reminders of who we are as a people and the sacrifices that our Utah pioneers made in order to colonize the state.

Imagine if our Federal Congress decided that Gettysburg or Independence Hall just wasn't brining in the profit margins and should they be closed down as well. We would lose a huge chunk of our national identity. This is the beauty of the state and national park idea: protecting areas of high intrinsic value even if it does not have a huge monetary value.

Huntsman in 2012?

After a month long winter break (recovery period?) from school that was extended by the "snowocalypse" (4 inches in Georgia), I finally decided to get back in the swing of things and so is speculation about the 2012 GOP Presidential primary. There has been a burst of news reports indicating that former Utah governor Jon Huntsman, Jr. may challenge his boss (President Obama) for the presidency. Huntsman is currently the ambassador to China.

First was a Newsweek article where Huntsman declines to comment when asked if he would challenge Obama. He does concede however that "there may be one more race in our bones." Yesterday, the Wall Street Journal described his somewhat unorthodox approach with the Chinese and again raised the question of a possible bid. Now at a press conference with the Chinese president, Obama actually jokes about the possibility of Huntsman running against him. Finally the Deseret News unveiled a poll where Huntsman would easily win in a Senate race against Orin Hatch and Jason Chaffetz.

I have met Huntsman two times and both times I found a politician that was level headed and ready to listen to new ideas (even from a young political nerd like myself). I was impressed with his desire and ability to work across the aisle: all attributes that are missing from our politicians on both sides. I would love to see him run but I question if tea partiers would accept someone with moderate views even if he would make a great president.

(picture from the Deseret News)

The Moderate Voting Guide, Part 3

In my opinion, the cardinal sin of state politics is forgetting which race you are running in. For example, almost every tea party candidate is running against President Obama and not standing on issues that are important for their state or district. They forget that they are running for Congress or Governor, not for President of the United States. I was pleased, however, to see the focus of the Republican candidate for governor John Kasich. He recognizes the need for Ohio to become more business-friendly by doing away with needless regulation that is so prevalent in that state. Also Ohio needs to diversify their economy with more service and high tech jobs and not just wait for manufacturing to come back.



Also Kasich recognizes that health care is a pressing issue and has presented a free market alternative to Obamacare. This plan allows consumers to purchase health care across state lines, limit frivolous law suits, and cover pre-existing conditions. Although this plan requires an act of congress, it is refreshing to see a Republican take this issue head on instead of hiding his head in the sand. I believe great things are coming to Ohio if John Kasich is elected.

The Moderate Voting Guide, Part 2

Georgia's governors race has been a classic mud-slinging fest. Sadly, there is no clear cut better candidate. During the campaign, voters have learned how "terribly awful" the other candidate is, but realitvely little about why a certain candidiate would make a better governor than the other.

That being said, I am planning to vote for Democrat Roy Barnes. He seems to have the most common sense out of the two candidates. I like his ideas about bringing Georgia back to the real issue at hand: jobs. This ad pretty much settled in for me:



Roy also has proposed a plan to update state owened buildings to new enviromental standards in order to employ consturction workers.

His competitior Congressman Nathan Deal worries me because of his sketchy past as a congressman and his persoanl finacial disarray. We will ahve to see what the future holds for Georgia and frankly I am not very enthusastic about either candidiate.