SALT LAKE CITY — In his first State of the State address, Gov. Gary Herbert told Utahns Tuesday the economy is getting better but the tough times aren't over yet.
Herbert promised that his administration "will continue to make sound policy decision to move this state — and your families — back to solid economic ground and toward a more hopeful future."
His annual assessment of the state, viewed by his fellow Republicans as the right blend of pragmatism and optimism, called for no new spending this year but also new efforts to plan future initiatives.
"Now is the time to make what we've got work," Senate President Michael Waddoups, R-Taylorsville, said after the half-hour speech, delivered in the House chambers of the state Capitol. "He's on track."
The most sustained applause for Herbert came when he said what's best for the state's economic recovery is "continued fiscal restraint and to not raise taxes." While he got a standing ovation from Republicans, Democrats stayed seated.
"When it comes down to it, if we want to hold education and other programs harmless, we will need to find other revenue sources," said Senate Minority Leader Pat Jones, D-Holladay.
The governor, who took office in August after former Gov. Jon Huntsman Jr. resigned to become U.S. ambassador to China, said the state is counting on an increase in revenue in the new budget year that begins July 1.
Herbert said it's up to the 2010 Legislature, which began Monday, to make sure the state adequately funds education, human services, public health and safety, transportation and other critical programs without adding new tax burdens.
"We recognize that the tough times are not entirely behind us," he said. "Indeed, our future success is in large part tied to how we respond to these difficulties over the remaining 43 days of this legislative session."
The governor reminded Utahns he has already submitted a budget to lawmakers that includes no tax increases, dipping instead into the state's Rainy Day Fund and other sources to avoid cuts in public and higher education and minimize them in other areas of government. His budget does not, however, cover growth in public or higher education.
"First and foremost, we must protect public and higher education," Herbert said, calling upon lawmakers "to maintain our current level of commitment to education" in spite of the difficult budget situation, a line that received significant applause from both sides of the aisle.
The governor cited two education groups that will look to improve public and higher education, the Governor's Educational Excellence Commission and the recently launched Utah Cluster Acceleration Partnership focused on shaping higher education to workforce needs.
He also raised a controversial issue facing lawmakers — ethics reform, already the subject of a residents' initiative petition drive. His fellow Republicans, who hold the majority in both the Senate and the House, are trying to agree on a package of bills.
"I encourage you, as lawmakers, to remove any perception of possible ethical issues by implementing meaningful and substantive ethics reform," he said, adding he was looking forward to signing the bills already under discussion into law this session.
Herbert also said he was signing an executive order that "reaffirms and clarifies" guidelines on accepting gifts, lobbying and conflicts of interests for the executive branch. Huntsman had announced a similar executive order in his 2007 State of the State address.
He also touched on the environment. Later this week, the governor said he and Salt Lake City Mayor Ralph Becker will address air quality issues. And the governor said he remains opposed to the importation of foreign nuclear waste.
The "best minds in the state" are being charged with coming up with a 10-year strategic energy plan, Herbert said. The Utah Energy Initiative is intended to ensure the state's access to its own clean and low-cost energy resources; put the state on the cutting edge of new energy technologies; and create new jobs.
"Utah can — and Utah must — be at the forefront of solving the world's energy challenges," the governor said.
He ended his speech by telling Utahns, "our best days are ahead of us. I am bullish on Utah. … If Utah were a stock and I were your stockbroker, I'd say buy!"
State of the state highlights:
Economy
While the state economy is improving, Herbert said tough times aren't over.
He reiterated that his budget plan includes no tax increases, but dips into the state's Rainy Day Fund and other sources to avoid or minimize cuts to education and government programs.
Education
The governor said that, "first and foremost," the state needs to protect public and higher education.
He said he is bringing together people to craft "new and innovative solutions" to improve education, and he will chair the Governor's Educational Excellence Commission.
Energy
Herbert announced creation of the Utah Energy Initiative, saying he will assemble the "best minds in the state" and charge them with creating a 10-year strategic energy plan.
That plan is meant to put the state on the cutting edge of new energy technologies and create new jobs.
Ethics
The governor encouraged lawmakers to implement "meaningful and substantive ethics reform."
Herbert said he set the standard for such reform by signing an executive order Tuesday that clarifies guidelines on gifts, lobbying and conflicts of interest for the executive branch.
Contributing: Josh Smith
e-mail: lisa@desnews.com