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Legislative Newsletter I—January 11-14/2010
Constituents:
In what may be the highlight of the Idaho Legislative session was the opening and dedication of the new remodeled Capitol
Building. After three years of work the job was completed on time and on budget.
The total cost was $120 million and financed through the sale of bonds supported by a tax on tobacco. The bonds will be paid off in 2023. Everyone is delighted in the great job on the Capitol. The Capitol still has its classical and traditional look, but the presence of light in all corners of the building is outstanding. The two new underground wings add an additional 50,000 sq. ft. My office last year was a 4' x 5' cubical! The new one is 12'x 15'.
The Governor's State of the State address did congratulate both BSU and University of Idaho football teams on their bowl victories. Frankly, I would have liked to have heard some words about academic
and research work in recognition of our Idaho institutions.
Nothing was said about our most important industry, Agriculture. The University of Idaho, the agribusiness sector, and the Department of Agriculture, for example, have demonstrated a great example of working together to continue the operation of the Parma, Tetonia, and Sandpoint Research Stations. It would also have been appropriate to indicate that last year the University of Idaho went from $80 million/year to $90 million/year in research contracts and that BSU went from $12 million to $11 million. The University of Idaho also has 65 National Merit Scholars as compared to about 5 at BSU.
The state of the Idaho economy may be turning around according to some economists, but it is hard to ascertain this when you talk to individual legislators about local economic conditions.
The unemployment rate hovers around 9.2% but is certainly higher when you consider those individuals whose benefits have expired. They are not even on the radar so a true unemployment rate may be around 12%. During the past 20 years in north Idaho, for example, the total number of board feet of timber harvested has dropped from 2 billion to 1 billion board feet. The number of Jobs has decreased from 20,000 to 13,000 during the same time span. Agricultural gate receipts have dropped to about $5.7 billion last year. This is down about 17% compared to the previous year. Micron earned a profit of $200 million the past quarter which may be a positive sign in the technology sector. However, the majority of legislators complain that all of the positive signs from D.C. that we have turned the corner on the economic recovery just isn't visible here in Idaho as of yet.
The Governor did commit $1 million to the Idaho Tax Commission to hire part time auditors to go after individuals and companies who have not paid an estimated $300 million in taxes each year.
The Tax Commission conservatively estimates a return of $6 for every $1 dollar spent on salaries and benefits for the auditors. Past efforts have reaped a return of almost 1 to 12. I certainly support this effort. Supporters from both sides of the aisle have advocated that the $1.8 billion granted in 75 tax exemptions be examined. This is a concept that I've worked on for a number of years. Those organizations need to prove to the State that their exemptions truly do benefit the state. I will be introducing legislation to sunset all exemptions and set up a system to evaluate whether or not exemptions do or do not benefit the state. If an exemption is not benefiting the state then those funds could flow back to the General Fund to support, for example, education.
The Governor is also recommending phasing out funding for Hispanic Affairs, human rights, independent living, developmental disabilities and the deaf and hearing impaired realizing a savings of $2.5 million. I
disagree with these cuts because they impact programs directed at our some of our citizens in greatest need. It is a priority of our government to provide services for those in greatest need in our society. The
Governor is also proposing cuts over four years for Idaho Public Television totaling $1.5 million.
Public schools will be subject to a 1.6 percent holdback or a total of $28 million.
Higher Education will take an additional hit of about $15 million. During the past year, for example, the University of Idaho lost about $19 million in state funding. Since 1980 higher education funding has decreased from 18% to about 8% of the state budget. The Governor did budget $1 million in scholarships for the Idaho Opportunity Scholarship Program. Otter said we badly need the best and the brightest of our Idaho young people to get their educations here and stay for productive and fulfilling careers. He also proposed a 0.55% decrease for Community Colleges. The Governor did say that when the economy turns around that Public Education and Higher Education would be the highest priorities to receive additional funds.
There will be more specifics as we move ahead in the session.
Please send me your ideas and suggestions.
email: ttrail@house.idaho.gov
phone: (208)-332-1184
Rep. Tom Trail
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