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FEATURE

Two Reports Rank Utah #1,
Most Economically Competitive State

Utah is the most economically competitive state in the nation. That?s according to two economic development reports issued last month: The Beacon Hill Institute's State Competitiveness Report for 2007 and the ALEC-Laffer State Economic Competitiveness Index, published by the American Legislative Exchange Council (ALEC).

The reports were based on quantifying indexes and variables that include fiscal policy, security, infrastructure, business incubation, state minimum wage, tax policy and education freedom. Utah ranked first thanks in a large part to its (flatter) income taxes, lower corporate income taxes, pro-business regulatory environment, limited government, and economic growth.

Top 10 State Rankings, ALEC-Laffer State Economic Competitive Index

(Based upon the equal weighting of each state?s rank in 16 policy variables)

1. Utah
2. Arizona
3. South Dakota
4. Wyoming
5. Tennessee
6. Virginia
7. Colorado
8. Georgia
9. Idaho
10. Texas

According to Jason Perry, executive director of the Governor?s Office of Economic Development, Utah?s top rankings validate the great things happening in the state regarding business and economic development. "These reports include forward thinking formulas and point to Utah as not only having been competitive enough to achieve the top ranking, but more importantly the economic movement that will continue in this very positive direction," he said.

Governor Jon Huntsman attributed Utah?s top spot to the state?s work ethic, creativity and strong economic engine, ?driven by entrepreneurs who are taking us in the right direction." Add to that a state government that implements sound public policy and limits its access to personal and corporate wallets. Utah has long enjoyed the benefits of business-friendly, fiscally conservative governors and state legislators, the effects of which are evident within the rankings of the Beacon Hill Report: Utah ranked second in Government and Fiscal Policy as well as Infrastructure and Business Incubation.

In regard to public policy, ALEC National Chairman and Arkansas State Sen. Steve Faris said states are competing with each other for human capital and business investment. ?State governments that think they can attract jobs and people and grow their economies by taxing their citizens at a higher rate than their neighbors are sadly mistaken,? he said.

To become competitive in the global business environment of the 21st century, the ALEC-Laffer report writers expound free-market, pro-growth tax systems, rather than increasing the ever-burdensome role of government on citizens. ?No state has ever taxed its way into prosperity,? they said.

Watch next week?s newsletter for EDCUtah?s thoughts on legislative priorities and comments from Utah?s legislative leaders regarding their goals for the upcoming legislative session.

The American Legislative Exchange Council (ALEC) has been in existence since 1973 and is the nation's largest individual membership organization of state legislators, with some 2,400 members, while the Beacon Hill Institute is a think tank at Suffolk University in Boston. Beacon Hill engages in rigorous economic research and conducts educational programs for the purpose of producing and disseminating readable analyses of current public policy issues to voters, taxpayers, opinion leaders and policy makers.

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments

IN THE NEWS

Economic Development Headlines from the Past Week

Utah firm makes history

- Sorenson Capital Partners has raised what some believe is the biggest pool of investment dollars ever amassed by a Utah private-equity firm. The Lehi-based company accumulated $400 million between mid-September and the middle of December from more than 30 investors in Europe and the United States, outstripping the $250 million it raised for another Sorenson investment fund in 2004. (SL Tribune) (Daily Herald) (Morning News)

Mass mailing warns developer may withdraw

- Residents throughout this east-side city received glossy mailers this week, warning that General Growth Properties will take its development clout elsewhere if the Cottonwood Mall redevelopment does not get a tax subsidy to fund its extensive infrastructure needs. (SL Tribune) (SL Tribune)

No time to relax in 'hot' Utah

- Utah has a puny unemployment rate, huge job growth and a stronger venture capital environment that help make it "the hottest, best-performing economy in the United States," according to Jason Perry, executive director of the Governor's Office of Economic Development. (Morning News)

Summit offers free sessions

- The Washington County What's Up Down South Economic Summit on Wednesday may be sold out, but residents and entrepreneurs can still attend one of two free sessions Wednesday afternoon. The two bonus breakout sessions will include the Vision Dixie Report and the Business Igniter sponsored by Stimulating the Expansion of Entrepreneurial Development. (Spectrum)

SkyWest to fly in on Monday

- The first commercial plane flight from Cedar City to Salt Lake City in more than a year is scheduled for Monday morning, and city officials expect to see the Cedar City Municipal Airport get a lot busier. SkyWest moves back into its role as air carrier out of the airport this week - the same role it held for 34 years from 1972 to 2006. (Spectrum)

Utah economy heads for slowdown in '08

- "Still weak" is how a monthly report projects Utah's economy for the upcoming months. The Business Conditions Index for Utah, compiled by Creighton University and released Wednesday, was 51.2 in December, up from growth-neutral 50.0 in November but off from October's figure of 60.6. (Morning News)

Magazine says Ogden?s a top 10 place to visit

- Ogden is one of the "Top 10 Places you've gotta go," according the January issue of Sunset Magazine. Calling Ogden "one of the West's hottest adventure spots," and labeling it a place for adrenaline junkies, Sunset lists the area's plentiful snow and outdoor recreation opportunities as the main reasons to visit. (Standard-Examiner)

Valley Fair Mall could see changes starting in March

- A long-awaited makeover of Valley Fair Mall could begin as soon as March. The mall's owner, Sandy-based Satterfield-Helm Management Inc., has submitted its building plans to West Valley City. (SL Tribune)

Allegheny Technologies comes to Rowley

- Allegheny will set up near US Magnesium and become the anchor tenant in an industrial zone that could eventually become an incubator for high-tech jobs in the county -- a shift away from the county's traditionally high-pollutant, high-manual-labor manufacturing base. (Tooele Transcript Bulletin)

Patriot Rail Corp. Completes Its Third Railroad Acquisition With Purchase of Utah Central Railway

- Patriot Rail Corp., a short line and regional freight railroad holding company, announced the purchase of the Utah Central Railway, a short line freight railroad headquartered in Ogden. (Utah Business Magazine)

Utah?s own surge

- Utah officials believe the U.S. Census Bureau is once more undercounting Utahns, but even if the feds' numbers are right our population is booming. According to figures released last week, Utah's population is the third-fastest growing in the nation, at 2.6 percent, following closely behind Arizona (2.8 percent) and No. 1 Nevada (2.9 percent). (Standard Examiner)

Razing crew levels Sugar House core

- Demolition began Monday in the heart of the Sugar House business district where a developer plans an office building, condos and new retail space. (SL Tribune)

RSL offers extra $15M for sports complex, outgoing mayor Rocky urges acceptance

- After landing $7.5 million from Real Salt Lake for a sports complex, Salt Lake City might be able to score an additional $15 million from the soccer team to finish the fields. (Salt Lake Tribune)

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CALENDAR

Jan. 9:  "What's Up Down South?" Economic Summit at the Dixie Center in St. George. Contact Information:
Contact: Scott Hirschi, c/o Dixie College, 225 South 700 East, St. George, UT 84770  (435) 652-7750
www.whatsupdownsouth.com

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