Testimony given by Derek Monson Wednesday before the Senate Government Operations Committee in support of Sen. Deidre Henderson’s SB 70:
Thank you, Mr. Chair.
My name is Derek Monson and I represent Sutherland Institute. We are here to testify in favor of SB 70 – Commission Relating to Federal Issues.
If you look at a recent study by the American Institute of CPAs, they reported that the federal government has outstanding debt and social insurance obligations of $61 trillion, compared to a total household net worth in the entire country of $58.5 trillion. In other words, if the federal government taxed every dollar of net worth from the entire country, the federal government would not be able to pay its long-term bills, which do not even include day-to-day expenses such as for defense, transportation, and education.
The point of this statement is to say that the state of Utah will be experiencing federal funding cuts somewhere down the road: if not from sequestration, then beyond. This is a pressing issue, and the impacts are going to be greatest on the most vulnerable Utahns – on children in public schools, on low-income families in the state Medicaid program, and on families generally because of the amount of federal funds in the state economy.
We think this commission is a prudent step to make the preparations that we need to be making for a completely predictable problem that we are going to face, and we encourage you to support this bill. Thank you.