In a computer screenshot, Utah Senate President Stuart Adams makes remarks during a recent news conference in Washington. D.C., following the announcement that Utah was ranked highest among states, for the 19th straight year, for economic outlook in an annual report.
If they’re tired of taking an annual victory lap, Utah government leaders aren’t showing it.
Gathered for a news conference in Washington, D.C., on Tax Day (April 15), several state and federal government representatives basked in the glory of Utah being ranked in a report as the top state for economic outlook – for the 19th consecutive year.
“That’s pretty hard,” said Utah Senate President Stuart Adams. “That’s pretty amazing.”
Every year the report has been issued, Utah has topped the economic outlook component of the “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.” The study evaluates states and key areas of government policy in each state to better understand its economic trajectory.
The economic outlook ranking is based on a state’s current standing in 15 state policy variables, each influenced directly by state lawmakers through the legislative process. Generally speaking, states that spend less and states that tax less — particularly on productive activities such as working or investing — experience higher growth rates than states that tax and spend more.
Government representatives and other dignitaries gather in Washington, D.C., to celebrate Utah’s top ranking for economic outlook in an annual report. (Courtesy Utah Legislature)
In the report’s other main ranking, economic performance, Utah is fourth. The ranking is a backward-looking measure (10 years) based on the state’s performance in three performance variables that are highly influenced by state policy: state gross domestic product, absolute domestic migration and non-farm payroll employment. Utah is behind only No. 1 Florida, No. 2 Arizona and No. 3 Idaho.
Stuart highlighted an example of Utah’s economic rise in its median household income, at about $55,000 in the 1970s but now at $93,000. Those decades ago, Utah was tied with West Virginia, but while Utah has seen a large increase since then, West Virginia, in contrast, has seen its figure slip to $52,000.
“What an amazing thing for families, for people of Utah, to be able to afford a quality life, take their kids to Disneyland, enjoy life but also take care of the things that families need,” he said of Utah’s median household income.
Stuart also noted that in a year that is the 250th anniversary of the United States, “No question about it, America is the hope of the world, and Utah is the hope of America.”
Utah House Speaker Mike Schultz listed several economic advantages in Utah, including an income tax lowered by 11 percent over the past six years, more than doubling of education spending over the past 10 years, and the creation of an account to enable future tax cuts.
“President Adams and I have a goal,” Schultz said. “We want to get out of the 4 percent income tax range and get into the 3 percent income tax range. We know if we’re able to do that, we’ll be able to stay and keep Utah’s economy flowing and, most importantly, keep opportunities for our families, for our kids and our grandkids moving into the future.”
Utah Rep. Celeste Maloy was among the speakers saying that Utah can serve as a standard for changes that could occur at the federal government level. “We can see things that the state’s doing that are working for Utahns and then we can copy a lot of those ideas,” she said, including finding inefficiencies, reducing spending, finding ways to cut taxes and implementing regulatory reform.
Maloy said that she and others are working on regulatory reform — “reducing regulations that are redundant, that are onerous, so that places like Utah that have good ideas and are trying to grow, can do that without too much federal interference and too much federal overreach.”
“All we need to do in the federal government,” U.S. Rep. Mike Kennedy said, “is for us to follow Utah’s lead. I want Utah strong. I want Washington, D.C., small. Often this place is constantly telling you how to do things, and what really should be happening is you telling us how to do things.”
Jonathan Williams, president and chief economist of ALEC, said Utah could be a model for the rest of the nation. “America would be much better off if we took these lessons from Utah, from the policies that you have implemented, and take them to the other 49 states,” he said.
But Utah’s high ranking did not happen by accident, he said, instead attributing it to “many years of hard lifting when it comes to policy issues,” including pension reform, the use of federal funds, flat taxes and truth in taxation. “Utah’s a leading light,” he said.
“Many times, people ask me, ‘How did Utah do it? What’s the secret to their success?’ And I ask, ‘How long do you have?’” Williams said.
While nine states have reached the study’s No. 2 ranking, Utah has stayed at the top because it has always looked to continually improve, he said.
“Utah, they do stay ahead because they analyze the competition [in other states] … but you sharpen the pencils every year, you realize that spending equals taxation, you reprioritize spending, and you keep hard-working families and taxpayers getting back more of their hard-earned money,” Williams said.
U.S. Rep. Blake Moore said the credit for Utah’s top ranking “goes entirely to the state Legislature, the leaders, the governor’s team, to continue on what makes our state so great.”
U.S. Rep. Burgess Owens said Utah’s culture — its commitment to faith, family, the free market and education — has led to its success. Utah’s young people “are the pipeline,” benefiting from worldwide missions to learn about others and then return to become innovative, risk-taking people.
“We have a culture so unique and something I’m so excited about,” he said. “So, I’m not surprised [about the ranking] and we should not be surprised.”
In a news release about the report, Gov. Spencer Cox said the No. 1 ranking “reflects years of disciplined policy, a commitment to opportunity and the strength of our people. We’re focused on keeping Utah a place where families can succeed, businesses can grow and the next generation has every opportunity to build a strong future.”
The report is available at RichStatesPoorStates.org.