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- Utah tops the American Legislative Exchange Council's economic outlook list for 18 straight years.
- Gov. Spencer Cox credits Utah's focus on "boring" tax and economic policies over hot-button issues.
- Utah's low taxes, right-to-work status and no inheritance tax drive its rankings, according to the conservative-leaning group.
SALT LAKE CITY — A focus on economic policy has helped Utah top a list of states with the best economic outlook for the 18th year in a row, according to Gov. Spencer Cox.
The state has taken home the top prize in each annual edition of the American Legislative Exchange Council's "Rich States, Poor States" report since its inception, and top Utah Republicans celebrated their latest victory by touting the Legislature's approach to taxes and business outside of the Governor's Mansion on Tuesday.
Cox said the "toxicity of our politics" has hurt other states' abilities to focus on economic outcomes and credited Utah lawmakers for focusing on policies that will benefit working Utahns. But he said if leaders can avoid being too focused on the hot-button issues of the day, and "if we make the right decisions today, we can continue celebrating events like this for the next 20, 30, 50 years."
"One of the reasons a lot of states aren't doing the policy work that our Legislature is doing is because it's hard, and it's boring," he said. "There are not a lot of great, you know, social media memes ... about policy work that was done 40 years ago. ... This stuff isn't sexy. It's not fun. You don't see immediate results the next year."
"It doesn't happen by chance," added Senate President Stuart Adams, R-Layton. "This is by choice. It's policies. ... I believe Utah's future has never been brighter."
The American Legislative Exchange Council, or ALEC, is a nonpartisan policy group that leans conservative, and its economic outlook ratings are based largely on the states' tax burdens, minimum wages and labor laws. Utah ranks in the top half of all metrics aside from sales tax burden, where it ranks 40th.
Utah's minimum wage of $7.25 per hour — which is at the federal floor — its right-to-work status and the fact that it doesn't charge an inheritance tax all rank first across the various metrics ALEC uses.
Jonathan Williams, the group's president and chief economist, said the state's continual efforts on tax policy have helped the state remain ahead of the pack for 18 consecutive years. After running a "thought experiment" to see where the state would have ranked today had it changed nothing since it first topped the list in 2007, Williams said Utah would be in the middle of the pack when it comes to future economic prospects.
"We know that will continue to be the case in Utah, figures like these moving forward; they will not rest on the laurels and stand still because one of the key messages, as we talk about economic competitiveness, is states can fall behind by standing still," he said. "This is something that would have happened in Utah if it wouldn't have been a continuous positive improvement."
"There's a generation I know that is growing up that doesn't know a time when Utah wasn't No. 1 leading the nation," said Utah House Speaker Mike Schultz, R-Hooper. "And that hits home with me a little bit today because my daughter turned 16 today. ... She does not know a day where Utah hasn't led out. ... And it's because Utah's success is rooted in the principles that work: low taxes, reasonable spending and a business-friendly — but most importantly family-friendly — environment that fosters innovation and upward mobility."
Utah lawmakers have cut the state's income tax rate in five consecutive years, and Adams suggested that trend will continue.
"Five years in a row, and we're going to keep doing that," he said.
While the state's outlook is rosy, according to ALEC, Cox acknowledged that storm clouds could be on the horizon and said he has directed state agencies to prepare for a possible economic downturn by creating three proposals of cuts at various levels should a recession arrive. But, he said, that planning is all part of how Utah has managed to stay on top economically.
"We have a working rainy day fund where we use ongoing money to pay for one-time buildings and other things; we're constantly stress-testing our budgets," he said. "We know that there's certainly a chance of a recession, so this is what we do. We plan ahead. ... We're the best-prepared state if there is a downturn."
