Governor Walker urges fiscal discipline, $30 million K'3 reading push and a 2% pay increase in State of the State

Governor O'lene Walker delivered the State of the State to a joint convention of the Utah Legislature, urging fiscal restraint to protect the state's bond rating, modest pay increases to retain state and education employees and targeted investments in early education.

"To preserve that rating, we must limit our bonding, add to our reserves, and bring balance to our budget," Walker said, citing a June bond sale of $407,000,000 at 2.83 percent and comparing it to a higher rate in California to argue the long-term savings of prudent fiscal policy.

Walker identified three budget priorities: maintain the state's bond rating, retain state and education staff and maintain quality education. She proposed a modest 2% salary increase for state employees after two years without raises and asked the Legislature for $30,000,000 in new funding focused on kindergarten through third grade to ensure children learn to read at grade level. "Through third grade, children learn to read. After that, they read to learn," she said.

On education, Walker said Utah spends far less per pupil than the national average and has recently seen declining test scores, including a cited seven-point deficit in writing on a national report. She outlined three components to her education proposal: the 2% educator pay increase; added funding to cover enrollment growth (she said 17,000 additional students entered public schools in the past 10 years, with 7,160 expected next year and 145,000 expected over the next decade as stated in her remarks); and a scaled Performance Plus competency-based plan. Walker said the full Performance Plus proposal would have required $200,000,000 in new money but asked instead for $30,000,000 targeted at early grades.

Walker also highlighted social and service initiatives. She described Read With a Child, a volunteer literacy effort at 30 Boys and Girls Clubs committing to 20 minutes of reading per child, and introduced individual stories to illustrate classroom crowding and remediation needs. She warned of poor outcomes for youth aging out of foster care, citing statistics presented during the address (after two years 61 percent had not finished high school, 72 percent were unemployed and 60 percent of young women had given birth) and said the state is developing programs and volunteer supports to improve those transitions.

The governor announced expansion of online state services (164 services cited) and introduced a Utah Cares website to help people find assistance for food, housing and employment. She said Utah would have a statewide communications network by July 1 to link rural health providers, emergency centers and law enforcement during disasters or public-safety threats.

On revenue policy, Walker said she has prepared a comprehensive tax reform package to be completed by Aug. 1 and promised opportunities for public input, arguing a 21st-century tax system would make Utah more business-friendly and reduce revenue volatility.

Environment, public lands and economic development were also on Walker's agenda. She said she will oppose storing spent nuclear fuel rods in Utah, designated 25 watersheds for improvement and noted that 45 groups had adopted lakes or streams. On economic development she urged stronger ties between higher education and businesses, creation of a "Buy Utah" website to promote in-state products, efforts to increase venture capital availability, and targeted industrial assistance for companies that would expand and hire Utah workers.

Walker emphasized protecting Hill Air Force Base, calling it the state's largest employer, and asked state and local leaders to be aggressive in defending defense jobs. She closed by recognizing National Guard families and urging support for communities with deployed service members.

Procedurally, the Legislature resolved into the joint convention by voice vote and later granted the motion to spread the governor's address in the Senate Journal and adjourn until 10 a.m. the following day. Both procedural motions passed by voice vote; no roll-call tallies were provided in the transcript.

The address concluded with an invocation and the governor's closing benediction.

Next steps: the governor said the tax reform package would be completed Aug. 1 and that the education and workforce proposals would be considered in the upcoming budget process. No formal bills or ordinance votes were recorded during the session.