Leavitt urges bigger education investment, tax simplification and land exchange in 2000 State of the State

Governor Michael O. Leavitt used his State of the State address to press for higher education funding and accountability, a simplified tax code to address e-commerce, expanded broadband, and a large land-exchange deal intended to boost the state’s school trust fund.

Leavitt told the joint convention that Utah has "invested aggressively in education" over the past seven years—building or replacing nearly 100 schools, adding technology, reducing class sizes and hiring more than 1,700 teachers—and proposed "a 7.4% increase in our public school budget, aggressive but achievable." He said that with clearer priorities the state can "invest more. Expect more." The governor endorsed the Legislative Task Force's recommended Utah Performance Assessment System for Students (U PASS), saying, "U PASS would measure what we expect our students to know," and urged the State Board of Education to set annual improvement targets.

On taxation, Leavitt framed the state's approach as limited use of taxing power and noted Utah has enacted multiple tax reductions during his administration. He proposed a new tax-cut measure and urged what he described as a "radical simplification of our sales tax system" to address competitive pressures from remote e-commerce sellers. He also put forward a long-term goal to "eliminate the sales tax on food," saying revenue collected from remote sales should be used for tax reductions rather than larger government spending. He said he would sign an executive order directing the Utah Tax Review Commission to begin preparing options for lawmakers.

Leavitt framed technology and workforce development as central to future prosperity. He highlighted the University of Utah’s Utah Electrode Array as an example of high-tech innovation and told lawmakers that Utah's higher-education system, now serving roughly 120,000 students, must produce more graduates faster—including a goal to double engineering and computer-science graduates.

The governor reiterated a goal for a "digital state," proposing high-speed, high-capacity Internet service in every Utah community within two years and noting current gaps in rural coverage. He said Utah’s international trade has expanded sharply in the last decade and that the upcoming 2002 Winter Olympics provides an opportunity to broaden economic ties.

Leavitt also announced a significant school-trust land exchange with the Bureau of Land Management. Under the described agreement, school trust beneficiaries would receive approximately 128,000 acres across Box Elder, Tooele, Juab, Millard, Beaver, Washington and Iron counties while the BLM would receive about 118,000 acres; the governor said the transaction would be part of the West Desert Wilderness Bill sponsored by Rep. Jim Hansen and would materially increase the school trust fund balance.

On infrastructure and public safety, Leavitt reaffirmed Utah’s commitment to Centennial Highway Fund projects and said the I‑15 reconstruction was about 18 months from completion. He also cited declines in crime statistics and advocated taking drug courts statewide to reduce substance abuse among offenders, welfare recipients and youth.

For the state capitol, Leavitt proposed establishing a capital restoration fund to plan and pay for repairs, suggesting a down payment that would use the state's share of some Olympic-related returns plus $15,000,000 from inheritance-tax collections for the year.

The address closed on a ceremonial note introducing a centenarian and two newborns described as representing Utah’s past and future. The joint convention approved routine motions to spread the governor’s address in the legislative journal and then dissolved and adjourned.

What’s next: The governor directed the Utah Tax Review Commission to prepare options for lawmakers and proposed specific budget priorities; legislative committees will consider funding and statutory changes in the coming session.