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Richard Piatt ReportingThere is less tension at the Capitol this afternoon as a three-way compromise has ended a battle over how to spend the state's surplus. This is a true compromise: There is more money, but no one is completely satisfied. The sticking point was what kind of tax break to give.
Symbolically, the announcement came on the Capitol plaza, neutral ground between the Legislature and Governor's buildings, and it was clear everyone was relieved their compromise avoids a special session.
Gov. Jon Huntsman Jr.: "Let me begin by saying, I think this is a session for the history books."
The deal calls for a total of 160-million dollars in tax cuts. It's less than the 230-million the House wanted, but more than the 100-million the Senate called for. It cuts the grocery food sales tax by about half, but doesn't eliminate it. It reduces the income tax from 7-percent to just under 5-percent; that was a Senate priority.
The deal also calls for 20-million dollars in economic development incentives, a 6-percent boost for education, worth about 135-million dollars. Transportation is a big winner in this deal, with 90-million dollars. And there is 8-million dollars to develop water resources.
It was a compromise in every sense of the word. House and Senate Leaders clearly pushed their sides at the news conference.
Rep. Greg Curtis, House Speaker: "Sales tax off food is an emotional issue for me, but I believe if the rest of the country can do it, we're smart enough to figure it out here, too."
Sen. John Valentine, Senate President: "We truly believe in good tax policy. It's policy that has to make sense. It's policy that has to stand the test of time."
Notably missing from the compromise were the Governor's All-day Kindergarten and USTAR economic development tool, together worth about 20-million dollars.
Gov. Huntsman: "We don't have those two issues resolved. We will continue to work toward the resolution of both of them."
As hard-fought as this was, it's not over yet. There is still about 500-million dollars of money left, the catch is it's money that's only available for one year.
