The Utah Health Exchange (UHE) is among the State’s most critical initiatives right now, and has captured the attention of policymakers across the country. While health reform has become a political hot potato, especially since the passage of PPACA, Utah has lead out on the national stage, without the high costs and questionable mandates of other plans.

So what exactly is the UHE and how does it work? The UHE is essentially an internet-based portal. Representative David Clark, whose legislation created the Exchange, often used the analogy of an airport to describe it. Much like Salt Lake International Airport, which is operated by the city to connect providers like Delta Airlines to its customers, the Exchange is intended to connect insurance consumers to insurance providers. It is a single shopping point where consumers can evaluate their options, and then brokers, agents, and employers can share information.

The UHE is not Obamacare. It does not mandate participation. It doesn’t control health care prices or practices. Rather, it is centered on your freedom of choice. The UHE is based on the principles of personal responsibility, private markets, and competition. We don’t mandate that everyone have insurance, but we recognize the importance of being insured — both for the individual and the State as a whole. Rather than requiring coverage, the State instead provides a marketplace for all Utahns to find either individual or group insurance policies. Most people are familiar with employer provided health benefits where the employer offers the same health insurance plan to all their employees—a sort of one-size-fits-all. The UHE is different; employees can now use their employer contribution to purchase the policy that fits their unique needs, rather than the ‘one-size-fits-all’ plan. Through the Exchange, individuals shop for their own level of coverage at a price they determine.

Currently, Utah State law limits the Exchange to assisting small business groups with 2-50 employees, but it will soon be available to individuals and larger groups. The reason for the limitation is to allow the Exchange to test its technology on a small scale before accommodating a wider range of Utah’s population. During this testing phase, the State has found that the Utah Health Exchange is well equipped to handle its current load — 247 employer groups with more than 6,000 covered employees — and a lot of room to grow.

The federal reform plan goes into effect January 1, 2014, meaning our Utah-specific option must be adapt to the requirements for exchanges under PPACA before then. The Governor and I believe that, with the continued support of the Legislature, the Utah Health Exchange will meet that deadline and continue to lead the country’s health reform efforts in a uniquely Utah way.

You can learn more by watching the UHE video at: http://www.exchange.utah.gov/

To stay competitive and promote growth, Utah and most other states have created a tax incentive program. Utah’s tax incentive program (EDTIF) is a post-performance tax credit specifically geared both to encourage significant new growth of existing Utah companies and to attract quality companies to Utah by extending them a tax credit for part of their state taxes. This program costs Utah’s taxpayers nothing. The incentive is not a loan, nor is it a government-backed guarantee. Utah’s general fund is never put at risk, because post-performance incentives merely offset a portion of the new taxes generated by the company in meeting the agreed upon benchmarks. In other words, if the new taxes don’t materialize, no incentive is earned or paid.

To qualify for an EDTIF, a company must create at least fifty jobs over the life of the incentive, and those jobs must pay at least 125 percent of the county’s average wage including full benefits. To encourage companies to look at our rural communities, the benchmark in those areas is only 100 percent of the average county wage. Additionally, the local community must have some skin in the game by providing a local incentive showing that the local community supports the expansion or relocation. I emphasize that and EDTIF can be awarded only by a citizen board according to criteria set forth in statute.

Recent efforts by the Governor’s office have produced remarkable results! In 2011 alone, 16 incentives were awarded, which over the next 10-15 years will lead to $2.4 billion spent on local construction and other investments, create at least 7,600 new high paying jobs, and pay nearly $5 billion in wages. Were it not for Utah’s competitive incentives, these new jobs and tax revenues would probably not have come to Utah. In fact, they’d likely be occurring in another state, more willing to compete.

By any measure the 2002 Olympic Winter Games were a great success, and if you were around at the time, you probably remember the excitement, energy and economic impact they brought. Preparing for the Games created thousands of jobs, paying nearly $2 billion in wages. Utah hosted 250,000 visitors and 2.1 billion television viewers. The Games’ legacy is our world-class venues and the remarkable colony of aspiring Olympians who train here.

A United States Olympic Committee (USOC) bid for the Winter Games will be made in partnership with the host city they choose. Denver and Reno have expressed interest in the Games and have also formed exploratory committees. But we have already made the incredible investment in venues and infrastructure. In this economic climate it is questionable that other cities will be willing or able to raise the necessary funds to host the Games.

Should we pursue the Olympic Games?

Earlier this week Governor Herbert announced the formation of an exploratory committee to consider a bid for the 2022 Olympic and Paralympic Winter Games. He has appointed as co-chairs Salt Lake City Mayor Ralph Becker, Steve Price, chairman of the Utah Sports Commission, and myself.

The Exploratory Committee will determine whether or not Salt Lake could be awarded the Games and gauge public support; evaluate the suitability of our venues and infrastructure; forecast the cost of making a bid and hosting the Games; and we will explore how the needed funds might be raised.

The Governor has given the Exploratory Committee roughly four months to conduct our review and return with a recommendation as to whether or not Utah and Salt Lake City ought to pursue the Games. Should the committee and the Governor decide to move forward, the next step will be to establish a formal Bid Committee. The Bid Committee would eventually present Salt Lake’s case to the USOC. The USOC may choose to officially nominate one US city to the International Olympic Committee (IOC) as early as 2013. In 2015, the IOC will select which city will host the 2022 games. (See the Preliminary timeline below)

The public may be sure that we will do our utmost to conduct these activities openly and honorably. The prospect of hosting the Olympic Games again is exciting, and once again could greatly benefit our state, but ultimately the recommendation of the Exploratory Committee will be based upon the principles of fiscal prudence and good governance for which Utah is know.

Salt Lake 2022 Preliminary Timeline

Based on Past Olympic Games

Feb 2012 – May 2012

Salt Lake Exploratory Committee Evaluation and Report

May 2012 – November 2012

Possible Salt Lake Bid Committee submits report to the U.S. Olympic Committee (USOC)

Before January 1, 2013

USOC will decide which U.S. City to partner with for International Olympic Committee (IOC) Bid.

November 2012 – September 2013

USOC and their selected U.S. Applicant City submit an initial application to the International Olympic Committee (IOC) to be considered as a Candidate City

February 2014

USOC and their selected U.S. Applicant City submit the application file (bid) to the International Olympic Committee (IOC)

May 2014

IOC Executive Board determines Candidate Cities from the list of Applicant Cities

January 2015

Candidate Cities submit Files (bids) to the IOC

June 2015

Candidate Cities brief IOC members

July 2015

IOC Selects Host City

In fact, the effects of our poor air quality are real and measurable. Fine particulate matter found in the air, or PM2.5, which is produced by vehicle emissions, metal production, wildfires, etc., is especially hazardous because these fine particles remain suspended in the air for weeks and can travel great distances. Once inhaled, they reach deep into the lungs, causing damage and often produce symptoms such as coughing, wheezing, or shortness of breath. PM2.5 can also cause more serious problems, such as asthma, heart or lung disease—even premature death. It’s a concern that over 90% of Utah’s population lives within areas that sometimes exceed federal health standards during winter inversions or stagnant summer months.

Aside from the health effects, poor air quality impacts economic development because restrictions on industry, mining, power generation and transportation lead to stricter regulations. Our tourism industry thrives on Utah’s ski resorts, national and state parks, and vistas which are open, accessible and beautiful. It goes without saying that murky smog can obscure the impression visitors have of Utah.

There is still much to be done to improve our air quality, but it is worth noting that efforts by many individuals and organizations have helped Utah make great strides to reduce air pollution. For example, a group of concerned citizens formed Breathe Utah. This group worked with the Legislature and the Department of Enviromental Quality to create the Utah Clean Diesel Program, which helps to retrofit vehicles—particularly school busses. UTA also helps improve air quality by transporting nearly 150,000 riders per day, most of whom would otherwise be driving their own cars. Kennecott is also making great strides as they begin replacing their coal-fired power generators with natural gas generation.

Earlier this week, Governor Herbert announced a new clean air initiative, U-CAIR, the Utah Clean Air Partnership. The goal of our initiative is to improve air quality and human health, without sacrificing economic vitality, through voluntary emission reductions, community and corporate partnerships, and public awareness. We believe that individuals and industry are willing to do their part to improve air quality without the heavy hand of government. For more information or to participate visit ucair.utah.gov

Clean air should not be a partisan issue. It’s not a matter of Republican vs. Democrat, or liberal vs. conservative. It’s a matter of human health. We all contribute to air pollution, and we all breathe the same air. We all share the responsibility to keep it clean.

The Governor outlined his goal of accelerating private sector job creation of 100,000 jobs in 1,000 days. This is a laudable goal, and one I believe we can achieve, but as Gov. Herbert emphasized, government won’t create these jobs, the private sector will. We will do our part by keeping Utah’s government small, efficient, and business-friendly. For example, the Governor asked the Legislature to substantially reduce the unemployment insurance rate (which is much like a tax). This will save Utah businesses millions of dollars and allow them to reinvest in more equipment and more jobs.

The Governor is also leading the effort to put Utah at the forefront of energy and natural resource development. We are working in cooperation with the Legislature and our congressional delegation to fight for continued access to our public lands. We are also collaborating with other Western states to present a strong and unified voice to federal regulatory agencies. At least 23,000 Utahns are employed in the energy sector, earning on average 171 percent of the state’s average wage. Helping this industry to flourish will create thousands of jobs and keep the cost of energy low for all of us.

Last year the Governor directed all state departments, in consultation with over 100 business associations, to review all their regulations to determine which should be kept, which should be modified, and which should be eliminated. Consequently, 368 regulations were rescinded, simplified, or are in process of being eliminated. Because regulation is next to taxation in burdening the private sector, removing unnecessary regulations makes it easier for businesses to succeed.

We believe that education is essential for real economic development. That’s why we continue to work with public and higher education leaders to ensure that our students are prepared for postsecondary education and the workforce. This means developing a rigorous curriculum and fully funding our growing student population. We are also forming partnerships between industry, education, and government to identify and align college courses with marketplace needs. Some education programs promise employment opportunities, but don’t always pan out. Our goal is to have our education systems offer learning and training which, in reality, make students more employable.

The Herbert/Bell administration is devoted to strengthening our economy and fostering the creation and retention of good businesses and jobs for all Utah citizens. For more information on the Governor’s goal of 100,000 jobs in 1,000 days visit: utahjobsplan.com

In this imaginary conversation Phil represents the myth-promoters I so often encounter:

Me: Hey, Phil, the session’s about to begin.

Phil: Heaven forbid. Mark Twain once said ….

Me: Right. Ha Ha.

Phil: What stupidities will these yokels cook up this year?

Me: Each legislator can draft a bill on any subject, Phil. No one controls that prerogative.

Phil: Feral cats? Come on! The stranger the idea, the more they like it.

Me: Don’t judge the Legislature on what bills are introduced. Judge them on what bills are passed. Why is it that critics will characterize the whole session and every legislator by the most peculiar bill? Every year dozens of bills die in committee or get voted down. Most of the bad bills get killed.

Phil: Their constituents can’t support this stuff.

Me: We have part-time legislators. They live and work among their constituents. They’ll be called on to justify their votes. If they’re out of step with their district on important issues, their career will be short.

Phil: Where do they get these people? Do they live under rocks?

Me: You seem to feel that legislators are imposed upon us by some secret conspiracy, by power brokers pulling strings from behind the curtains. They’re elected by their constituents.

Phil: Yeah, right. They’re elected because they’re unopposed.

Me: Some run unopposed in the general election. But most incumbents will have one or more intra-party challengers. Either they defeat their opponent during the party convention with a 60% threshold, or they face a primary election. There’s no free ride. And open seats are hotly contested. In fact, eight people competed to replace me when I left the Senate to become Lt. Governor.

Phil: Those people threw Bob Bennett out.

Me: Sen. Bennett explained to 3500 Republican delegates his TARP vote, his approach to earmarks and his other positions. Some agreed, some didn’t. And in fairness, Mike Lee is no slouch. He has a great background and first class legal credentials. Tim Bridgewater ran an excellent campaign and almost won at convention. What’s more, the delegates were elected by their neighbors. You can’t get more grass roots than our caucus system. Simply put, those who care show up.

Me: At the end of the day, Phil, the Legislature will pass a pretty good budget, along the lines the Governor recommended. They’ll fund most critical needs. They’ll kill the really bad bills. They’ll debate all the others and do what they think is best for their constituents. No one person gets to decide what happens. Almost everything is negotiated—between the House and Senate, the Governor and the Legislature, Republicans and Democrats, and rank and file and leadership.

Me: The process isn’t always pretty, but the outcome is generally good. I’m proud that no matter how you measure it, Utah’s continually at the top. Give ‘em a chance, Phil.

One of their most important assignments is to prepare offenders to return to civilian life—without their criminal behavior. A large majority of inmates have some kind of learning disability and low levels of educational attainment and many deal with serious addictions. UDOC provides therapy to prisoners to address addictions, mental illness, and irrational thinking and behavior. They also help prisoners obtain their high school diploma and especially endeavor to teach new workforce skills so they can support themselves. Recidivism—repeat criminal behavior—is greatly reduced by therapy, education and job training. These programs are expensive and in high demand, but they provide a high return to the taxpayers by sparing the community from additional crimes and repeated incarcerations and by turning many felons into productive taxpayers. In fact, according to a recent PEW study, Utah’s corrections system experienced the second-most-dramatic drop in recidivism rates in the US, a reduction of 18.4 percent. [1]

To address these concerns, parents, teachers, school administrators and experts from across the country joined with state leaders to develop a clear set of standards that each state can use as a framework for improving education. In 2009, the Utah State Board of Education and the Governor agreed to join 48 states to produce the Common Core State Standards for mathematics and English-language arts.

Utah joined the Common Core initiative because we want standards to ensure that all students, no matter where they live, are prepared for success. These standards define the knowledge and skills students should have within their K-12 education careers and help ensure that students receive a high quality education consistently, from school to school. They also provide a greater opportunity for teachers and administrators to share experiences and best practices. Common Core Standards are:

• Aligned with college and work expectations

• Include rigorous content

• Informed by top performing countries such as Singapore

• Evidence-based

• Clear, understandable, and consistent

• Build upon the strengths of Utah’s current education standards

Based on misinformation, some legislators and parents have expressed concern about the Common Core being the result of the federal government meddling in Utah’s education policy. The Governor and I believe that the education of Utah’s children is the responsibility of Utah—not the federal government. However, it’s important to understand that the Common Core Standards were not developed by the federal government, nor has the federal government been involved at any step along the process. This is a state-led initiative, and Utah joined without any strings attached. We can opt out at anytime, or we can adapt the standards to fit our needs and values. The fear is that the Common Core will impose on Utah schools the obligation to teach values and lifestyles we don’t agree with. That won’t happen on our watch.

I have read the Common Core. It does not discuss, let alone mandate, any moral or political positions, values or lifestyle considerations. The Common Core, while very comprehensive, simply states milestones for students, for instance, by the end of 3rd grade the student will be able to form and use irregular verbs, or explain equivalent fractions. Common Core Standards are an exhaustive list of skills and competencies. The texts, the lessons, the values, the methods by which teachers convey and help our students develop these competencies will be chosen, as they always have been, by Utah’s schools and parents.

Recently I had a conversation with the founder and CEO of one of the world’s leading IT companies. He told me that in order for Utah to continue to attract more high-paying jobs, we must do better in educating our children. The Utah Common Core standards are a major step along this path.

Inadequate college savings isn’t the only reason Utahns aren’t graduating from college at the rate we’d like, but it is an important impediment to some students receiving a degree. Currently, just under 40% of Utahns hold an associate’s degree or higher. This is not adequate for Utah to develop a robust economy in a global marketplace or for less-educated Utahns to prosper individually or collectively.

Governor Herbert has set a goal that 66% of Utahns between the ages of 25 to 64 will have a post-secondary degree or professional certificate by the year 2020. This number is based on a detailed in-depth projection of Utah’s workforce needs.[1]  To accomplish this a number of things must occur: The state will need to provide for the tens of thousands of new students coming into the higher education system. Schools will need to become even more effective and efficient and increase Utah’s high school graduation rate. Students will need to work harder to perform well on standardized tests and meet tighter college admittance standards.

Perhaps most importantly of all, parents and families will need to plan ways to help their children pay for their college or technical training tuition. Some students will work their way through college. A few will receive scholarships. Nearly all students will need some assistance from parents and family to complete their college degrees. When I attended college, I could save a year’s tuition just working during the summer. However, it is very difficult to fund college on a pay-as-you-go basis as we did in the past. College today is much more expensive and “tuition prices are rising much faster than grant aid or family income.”[2]  More than 2/3rds of U.S. college students now graduate with some debt, an average of $24,000.[3]

To obtain 66% by 2020, we all need to make college savings a goal. Let’s resolve to make saving for college a high personal and family priority. Students, parents, grandparents and extended family can all make a difference. Research shows that those who explicitly make resolutions are ten times more likely to attain their goals than people who don’t.

While setting money aside is never easy, saving for college has never been more convenient or necessary. Utah’s state-sponsored Utah Education Savings Plan is one of the best college savings plans in the nation. It provides an easy to use, automatic, affordable, and tax-advantaged program for individuals wishing to put money away for college, for themselves, their children or grandchildren.

I strongly encourage students, parents and families to consider making a college education savings plan a high priority resolution for 2012.

______________________

[1] Georgetown University Center on Education and the Workforce, “Help Wanted: Projections of Jobs and Education Requirements Through 2018,” State-Level Analysis, Anthony P. Carnevale, 2010, http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/utah.pdf

[2] “Drowning in Debt”, Deseret News, December 29, 2011, p.A4.

[3] “Drowning in Debt”, Deseret News, December 29, 2011, p.A4.

Peace on earth they wished for us—peace on earth.  Peace is a precious thing.  Peace is freedom from war, from conflict and hostility and contention.  Peace does not come of itself.  The natural state of things is to be more or less in conflict.  We are most fortunate to enjoy a period of relative peace in the U.S. and in many parts of the world.  Still, we remember our troops in Afghanistan who fight daily for their lives and for peace for the Afghan people.  Trouble shows itself in other places around the globe.

We can create peace in the world by creating peace in our own lives.  Peace requires the other part of the angels’ message—good will toward men.  Without good will toward our family, friends and neighbors, we will not have peace in our hearts; our thoughts will incline toward criticism and resentment.  We will offend and create friction. We will avoid doing and saying the things which calm and soothe, things which deflate trouble.  We will argue rather than apologize.  We will think and say unkind things rather than hold our tongues and say good and helpful words.  We will act according to our sense of entitlement.  We will continue in the natural state of man—pride and selfishness.

As we develop, express and act upon good will toward others, we create peace in our hearts, our homes and our relationships.

Peace is a gem of surpassing value.  A home filled with peace—free of criticism and contention, demeaning words, of running others down, of backbiting—is literally a heavenly place.  I wish a home like that for everyone.  I wish that peace may come into the heart and home of all.

Peace and good will to you.