LEGISLATIVE NEWSLETTER II, January 23-29/2011

Constituents:

1)   Idaho Budget --  There is further bleak news about the budget.   It appears that Gov. Otter is now acknowledging that trimming a projected $340 million two year gap to $35 million is far worse than originally projected.   It now appears that the shortfall will be closer to $185 million leaving us with a potential deficit of almost $500.   Revenues dropped in December after a few months of positive returns.  A total of $47 million in unexpectedly high claims for sales tax rebates equipment and $70 million to conform with federal tax law changes are part of the problem. Rep. Thayn has drafted a bill to eliminate the Idaho Commission on the Arts, raising class size size by two ($100 million), cutting teacher compensation 12% ($100 million), cutting 3,000 teachers' aides ($70 million in salary), cutting kindergarten by two-thirds ($40 million), and a number of other draconian proposals.   If all of these cuts were implemented one can only imagine the impact on our educational infrastructure.

On Friday over 1,000 Idahoans showed up to testify before JFAC and the Health and Welfare Committee concerning $25 million in potential budget cuts.   A Nampa resident who has been a quadriplegic for more than 20 years since an automobile accident said he requires assistance to get in and out of bed, to brush his teeth and to do "all the things that able-bodied people take for granted."  He said, "I'm at risk of losing my home and independence and quality of life."  "The bottom line is quality of life--let me keep mine, please."   One of the questions that legislators should ask themselves is "Under the General Welfare clause of the Idaho Constitution just how much is the State responsible for helping medically challenge citizens."     Rep. Thayne's bill also raises some interesting questions--by cutting teacher salaries by 12% we'd have about 40% of the teachers and their families eligible for food stamps, and cutting 3,000 school aides would increase the Idaho unemployment ranks.    As one legislator said, "Last Legislative Session was a cakewalk compared to what we are now facing." We are really faced with a Catch 22 situation.   Do we raise taxes to maintain a minimum standard of health care and educational program or do we make the necessary cuts necessary to balance the budget when at the same time we know we have 70,000 unemployed citizens in the State and we are trying to support our business community and attract new industry by not raising taxes?

2)   Highway 12--Megaloads--It looks like the huge Concoco megaloads will soon be moving over Highway 12 hauling oil refining equipment to Canada. Conoco/Exxon have a number of slick radio ads defending the movement of the megaloads here in Boise, and they are filled with deceptive and inaccurate information.  The ads state the companies have been working for two years with local citizens to prepare for the move.  The Truth is the deal with the oil companies was signed in D.C. in January 2009 by our Governor and Congressional delegation and the first local citizens knew about this was in April 2010.

a).  All costs are paid by Conoco/Exxon  --  In May at the informational meeting in Moscow a group of us asked ITD employees if the $1,500 permit fee covered all of ITD's administrative, technical and legal costs.   The ITD employees told us there was no way that ITD's costs were being completely covered.  I asked Director Ness of ITD the same question and in a letter he said, "At this time we are unable to answer your question."   The Truth is that the Idaho taxpayer is paying for part of the cost for the privilege of letting the oil companies transport their megaloads over Highway 12.

b. Job creation -- Conoco/Exxon brag about job creation in America, but when Exxon officials were asked who has the contract to move the megaloads the answers were a Dutch company.   The building of the oil refining equipment was done in Korea instead of the U.S. or Canada.

c. Highway 12 is the only route to ship the equipment -- Exxon officials told us at the hearing in Moscow that this was the case.   Investigation in Canada revealed that the shipments could have made by rail with transloading around railroad tunnels using cranes.   When confronted with this information Exxon officials then said, "Well Highway 12 is the most economical route."

d. Public Safety  --  The Idaho State Patrol today has fewer patrolmen than in 1969.    Yet at least 4 IPS patrolmen will be escorting each load and others will be serving in a support role.  This raises the issue of the ability of the ISP to protect its citizens around the state when the loads are moving.

e. Economic Development -- The ads promote great economic development for Idaho.  The fact is that much of the impact will be like a circus coming to town.  Here today and gone tomorrow with some slight economic activity with food and lodging with almost no long term job creation.   The long term job creation will ITD hiring more employees and contractors to repair the damage caused by 274 loads (and more to come)

3)   Nullification -- One of the new issues being discussed in the halls of the Capitol is nullification legislation.   If past this would potentially mean that the State could disregard any particular Federal law it wished to.    This move is in regard to protests against the National Health Care Plan.   Our State Attorney General, Lawrence Wasden has strongly cautioned against nullification.  He notes "Taking the logic of the nullification theory to its natural extension, federal law would become a patchwork of regulation depending upon which states chose to comply. It is hardly, given this specter, that no court has every upheld a state effort to nullify a federal law."    Other states legislators are debating the issue.

4. HB28 -- Freedom of Conscience Amendment--an unintended consequence of last year's legislation put living wills and end of life instructions in danger, I'm working with Rep. Leon Smith, several Democratic legislators and David Irwin of the AARP to introduce corrective legislation.

Well, that's all for this week.    Constituents can contact me via e mail at ttrail@house.idaho.gov and via phone at (208) 332-1184.

Rep. Tom Trail

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