SALT LAKE CITY — Utah’s economy remains strong, but intrinsically linked factors such as labor shortages and housing affordability are pushing the Beehive State to maintain its position as the nation’s best economy. If so, this is a pressing issue that requires attention.
This, and Utah’s rural-urban economic relationship, was the subject of a discussion Tuesday morning among economists, business leaders and politicians at the Kem C. Gardner Institute for Policy Studies.
work and housing
According to the Utah Department of Labor Services, Report on recent work, Utah’s year-over-year employment growth rate was 2.1%, slightly higher than the national average of 1.9%.
Utah’s economy is projected to continue to grow, but at a rate similar to the rest of the country. This slowdown in growth represents a departure from the past two decades, when Utah performed perhaps better than any other state in the nation.
“We are limited in our growth by workforce availability. We face the challenge of getting people here in the state to work, and I believe housing will be at the heart of that. We’re dealing with shortages (and) very high prices,” said Phil Dean, chief economist at the Kem C. Gardner Institute for Policy Studies.
Utah is one of 22 states where buyers need a six-figure household income to comfortably afford a typical median-priced home, according to a recent Bankrate.com analysis. I understand.
Still, experts are equally optimistic about the ability of policymakers and business leaders to help quell some of the issues that threaten the sustainability and performance of Utah’s economic development. It is said that this is where it begins.
Urban-rural collaboration in Utah
“Urban Utah needs rural Utah,” said Rep. Karl Albrecht (R-Litchfield). “But we (rural Utah) also need urban Utah. So it’s a two-way street.”
Albrecht said he envisions the Wasatch Front’s population growth naturally “pushing the economy south” as more remote workers move to less populated parts of the state to escape the hustle and bustle. Stated.
He also said rural Utah provides two important things to the state’s urban areas: electricity and agriculture.
A champion of both, Albrecht sponsored the following policies in the 2024 Congress: Livestock Grazing Amendment Bill This changed grazing in the state from a permitted activity to a right. The bill was signed into law in March.
When it comes to energy, Utah’s rural areas are rich in natural resources, from critical minerals to oil, coal, wind, solar energy, geothermal energy, and more.
“I represent Beaver County. We have a lot of renewable energy there, wind, solar, and now geothermal. Wind and solar are intermittent. Geothermal is available 24/7, ( And) we’ll take whatever we can get,” Albrecht said.
“Keep using coal”
Albrecht said the key lesson from the last Congress is that “we’re going to keep coal going,” noting it’s a Congress that some people “may not like.” Stated.
It’s unity as a state that people here along the Wasatch Front care about what’s happening in rural Utah, and rural Utah also cares about what’s happening on the Wasatch Front.
–Phil Dean, Chief Economist, Kem C. Gardner Policy Institute
“We passed legislation in Emery County that would keep the Rocky Mountain coal-fired power plant going for several years longer than originally planned…as the Comprehensive Resource Plan called for,” Albrecht said. “We said to Rocky Mountain Power, ‘If you keep the coal-fired power plants open, we’ll support you as Congress.'”
Passed during the 2024 Congress, HB191 This prevents the Public Service Commission from approving large electric utilities to retire certain power plant facilities as part of rate litigation, power resource planning, or other proceedings unless certain conditions are met. Masu.
moreover, SB224 Creates a new cost recovery mechanism that allows Rocky Mountain Power to recover costs for existing power plants managed by the Public Service Commission, allowing Rocky Mountain Power to continue operating its facilities even if neighboring states stop paying for them. Founded. It also changes how the Utah Public Service Commission regulates resources that are “proven dispatchable,” which Utah Clean Energy calls “very problematic.”
“What we’re hearing from the business community is, ‘We need energy to be affordable, reliable, and sustainable,'” said Derek Miller, president and CEO of the Salt Lake Chamber of Commerce. That’s what it was,” he said. “That’s something you hear a lot, but what he needs to remember about these three things is he needs to be balanced. That’s the way we need to move forward.”
While some people may disagree on complex issues like the housing crisis and Utah’s energy future, Dean is optimistic the state can come together to advance solutions that work for everyone. He said that.
“Unlike many other places in the country, our ability is our ability to come together and talk about difficult things,” Dean said. “It’s about unity as a state, and people here along the Wasatch Front care about what’s going on in rural Utah, and rural Utah also cares about what’s going on on the Wasatch Front.” have.”
