Legislative roadmap: the 2012 session will tackle issues that impact your business.

• Author: Smith, Wesley

In today's world, it is hard to separate elected officials and their decisions from business.

Many industries are heavily regulated and their regulatory environment often dictates business decisions--healthcare, energy, education, technology and transportation, for example, are each strongly impacted by government policy.

In many cases, large businesses benefit from economies of scale in maneuvering around hurdles or embracing opportunities created by government policy. By necessity, many small businesses have less time and resources to devote to government and regulatory affairs intelligence.

This brief synopsis of the 2012 Utah Legislative Session is for small businesses looking for a leg up this year. Consider this a strategic report from your very own vice president of government relations intended to bring your business some additional information to help you make important decisions.

Taxes

Of course every business is interested in the direct impact of taxes on its bottom line. In recent years, the pre-session talk has been about how to raise revenue or decrease spending to manage a budget deficit. This year, Utah has a budget surplus as well as growing revenues, which will significantly change the conversation.

Predictably, this surplus eliminates the need for tax increases. Given recent history, you can expect the surplus to be used wisely to pay down government debt and strategically invest in areas that have been most affected by recent budget deficits, like education and the Utah Science Technology and Research initiative (USTAR).

This year will likely not be the best timing for meaningful tax reform (91 of 104 Utah legislators are up for election in November), but the groundwork will be laid for substantial reform in coming years. Small businesses would do well to engage in this effort by reaching out to legislators to get a feel for changes that are on the table, including consolidation of earmarks, changes to the special rate on food and adjusting income taxes to name a few.

Get in the game now, as the wave is swelling for meaningful tax reform, both federally and at the state level.

Education

It is projected that for continued economic growth, Utah's economy will require two-thirds of its residents to possess academic degrees or skilled trade certificates by 2020. Large and small Utah businesses alike need a well-educated workforce if they are to thrive.

During difficult budget years, Utah (and every other state) has been in a...