PRE LEGISLATIVE NEWSLETTER

Constituents:

A legislator's life is always hectic right before the holidays.  We will be back in session on Monday, January 9, 2012, starting off with the Governor's State of the State and Budget message.  The past month and half I've been meeting with 2-3 groups/day in preparation for the next session. Now I'd like to outline some of the major issues facing Idaho citizens that will be covered in the 2012 session.

   1.  Budget -- We will not be looking at the deep cuts that have been experienced over the past several years. For example, this past session lawmakers cut $35 million from Medicaid and another $62 million from public education to balance the budget.

       It is anticipated that there will be some increased revenues at the year's end--June 30, 2012.  The revenues could be as much as $140-$150 million. JFAC will be looking at supplemental requests for this budget including $17 million for the catastrophic health care fund, $11 million for Health and Welfare, and $1.6 million for the Department of Corrections.

       As the budget is built, legislators will be looking at what the growth might be from the prior year.  Agency requests to fill holes total $142 million and include $21.9 million for public schools, $34 million for for colleges and universities, $39 million for health and human services, and $2.9 million for economic development.

       Many agencies that have suffered severe cutbacks hold out hopes for some new funding to help the damage from some of those severe cuts of the past.  Idaho ranks second in the U.S. on a percentage basis of reducing state employees from the payroll.  Many state employees and teachers have not received any salary increase for three to four years.

       Realistically, I foresee a top priority of the Legislature to use surplus funds to build up reserve funds.   The policy of building up these reserve funds in the past has helped Idaho weather the continuing depressed economic conditions.  I certainly would like to see some state funding used to increase support for education and economic development.

   2.  Taxes -- With the conservative mood of the Legislature and the 2012 being an election year, I do not foresee any tax increases being passed. There may be another attempt to increase the tax on tobacco sales to help fund the cutbacks in Medicaid; however, the mood of the Legislature most likely will not be supportive. Governor Otter has also stated that we will be looking at a barebones budget and that any tax increases that come across his desk will probably not be supported. I do support the continued efforts of the auditors for the Idaho Tax Commission in collecting taxes from those corporations who are not paying their taxes.  I also support the Marketplace Fairness Act which is being considered by Congress. This legislation is aimed at letting states require most online retailers and catalog only companies to collect sales taxes from customers.  Currently the failure to be able to do this is unfair to our downtown businessmen -- it is simply unfair competition.

   3.  Economy -- Agriculture continues to be the strongest element of the Idaho economy with farm gate sales of almost $6 billion in sales.  Idaho's budget was balanced this year as contrasted with many of our neighboring states, and the state bonding rating was increased as contrasted to the national scene (U.S. bonds were downgraded).

       We are still in recession conditions with no bright spots on the horizon in the near term. Idaho's unemployment rate is about 8.2% which is slightly below the national figure. Roger Madsen, Director of the Idaho Department of Labor, has sent a letter to members of the Legislature recommending that we urge our Congressional delegation to vote against extending unemployment benefits.  I will oppose this resolution because there are simply more and more Idaho workers without work and no financial resources.   The rate of poverty is increasing year by year.  A recent article indicated that the poverty rate for families in Latah County was approaching 20%.  In Idaho about 53% of students in public schools qualify for free and reduced lunches. This is a key indicator of poverty.  Ten years ago the rate was down about 20 percent. We need to concentrate on providing at least the basic financial support for our Idaho families and put top priority on supporting the development of small businesses which are the job creators in the state.

   4.  Redistricting -- The recommendation of the Second Idaho Redistricting Committee would create a new district (5) which would include Latah and Benewah Counties in the new district.  However, Twin Falls County and seven counties in N. Idaho have filed appeals with the Idaho Supreme Court claiming the recommendations are unfair to their constituencies.  The Court will hear the appeals on January 5th.  This is only about 60 days away from the final filing date for elected officials for the upcoming campaign. Many estimate that the appeals will be denied; however, if the Court upholds an appeal there will be continued confusion. The Second Redistricting Committee would then have to come up with new recommendations.  Time will tell.

I look forward to receiving your comments and suggestions. My e mail is ttrail@moscow.com or ttrail@house.idaho.gov

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