A closer look at Huntsman’s fiscal record

Matt K. Lewis Senior Contributor
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Jon Huntsman’s fiscal management of Utah saw annual balanced budgets, a rainy day fund that grew by one-third and the largest tax cut package in state history. Yet anyone reading media reports about The Club for Growth’s white paper unveiled today might come away with a decidedly more negative impression.

This is to be expected. The Club (which is arguably the most effective conservative advocacy organization in the nation) issues white papers for each of the announced presidential candidates. Nobody gets a free pass. Everybody has a few blemishes. Still, it’s important to put things in context, and the central complaint — in terms of Huntsman’s actual record as governor — is Utah’s increase in spending. And here it is important to keep in mind that, unlike, say, Massachusetts or Minnesota, Utah’s population has seen an enormous surge — jumping 23.8 percent in the last decade — at a pace more than double the national population growth of 9.7 percent.

When population spikes, as it did during Huntsman’s time in office, one could assume expenses would also rise. This does not entirely excuse the increase in spending, but it should be taken into consideration.

Additionally, unlike other states, Utah spends about 50 percent of its revenue on education. This may not make a difference to fiscal hawks, but it is at least worth noting.

On the positive side, Gov. Huntsman’s fiscal management saw Utah’s rainy day fund grow from $146.1 million in 2006 to $418.5 million in 2010. Even as the national economic outlook soured, the fund remained untouched in large measure thanks to the $600 million dollars Huntsman slashed from the state’s 2009 budget.

What is more, Huntsman engineered the largest tax package cut in state history, for which the Utah Taxpayers Association awarded the governor the “Taxpayer Advocate” award. The Cato Institute likewise praised Huntsman and put Utah atop its ranking of best state tax regulatory structures in 2008.

The same year, the Pew Center pegged Utah one of the best-managed states in the union. “Utah has been a clear leader in sound government based on smart planning and effective performance management that emphasizes long-term results,” the 2008 report reads.

But the accolades for Huntsman and his steering of the Beehive State don’t end there. Utah captured Forbes coveted top ranking for business and careers when they found in 2010 the state had expanded its economy 3.5 percent annually in the last-half decade, a rate which outpaces all but one other state.

It is fair to say that some of Huntsman’s past rhetoric concerning controversial issues like cap and trade, climate change, TARP, etc., leaves room for skepticism. Huntsman strikes me as the kind of guy who is intellectually curious and open to considering a myriad of policy solutions — which means he doesn’t immediately dismiss even bad ideas. Dogmatic conservatives may lake little solace in this, but Huntsman’s actions probably serve as the best predictor of future behavior. And, in this regard, his pro-growth stance and record of tax cuts is encouraging.

Matt K. Lewis