S. Utah's economy down but rebounding as 2010 unfolds

S. Utah's economy down but rebounding as 2010 unfolds

By Mark Havnes, The Salt Lake Tribune
Updated: 01/13/2010 08:46:02 PM MST

St. George » The St. George economy is a long way from where it was in the mid-'90s, when the city regularly topped the lists of premier places to live and work.

But the area is gradually rebounding, according to Lecia Parks Langston, a regional economist with the Department of Workforce Services for Utah. She spoke during a breakout session at the annual Washington County Economic Summit Wednesday in St. George.

"To use a quote from Mark Twain, the death of the economy has been greatly exaggerated," said Langston. "We are in a recovery phase."

Her remarks echoed those of Gov. Gary Herbert, who said he was optimistic about the future of southern Utah and the state, saying Utah has weathered the sour economy better than many others. He attributed that to a fiscally prudent Legislature and a healthy rainy-day fund.

Herbert said job creation through support of private enterprise, not government meddling, is key to a prosperous future. "We understand that by creating jobs everything else can be taken care of in any area."

Washington County was hit particularly hard by the recession. Its unemployment rate was close to 8 percent at the end of last year, compared with a state average closer to 6 percent. But tourism is up in the area, he said, especially at Zion National Park, where visitation rose 5.4 percent last year.

"There are pockets of success," said Herbert, restating
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priorities from his inaugural address -- growing the economy, education and energy development.

Langston said construction jobs took the biggest hit in Washington County, where 4,000 have been lost since the peak boom year of 2006. There was also a drastic decline in number of residential building permits issued, from a high in 2005 of 3,860 to just 560 from January through November 2009.

Washington County also experienced the highest rate of mortgage foreclosures in the state last year, 7.4 percent.

Earlier in the day, U.S. Sen. Bob Bennett told conference participants that although many economists are claiming the worst is over, the country has a ways to go. Unlike state and municipal governments, the federal government operates by different rules when it comes to balancing the budget.

Bennett said mandatory programs such as Social Security, Medicare and Medicaid will be funded without question, consuming two-thirds of the nation's budget. What's left goes toward discretionary programs, including defense, the most expensive.

In a time when revenues are down, borrowing is the only way the government can function and fulfill all its obligations, he said.

He encouraged banks to start lending, especially to small businesses. "The economy runs on credit and confidence. All new wealth comes from risk-taking."

mhavnes@sltrib.com