LEGISLATIVE NEWSLETTER IX--FEBRUARY 26-Mar 2, 2007
 

We had snow on the ground three times this week in Boise, but that is good news for skiers and farmers who irrigate their crops. Some of the big news this week related to a young 12 year old student from Filer who keeps on winning duck calling contests. He learned duck calling from a college class and has been knocking off national duck calling champions right and left and earning enough money for his college education. Another young man from Mt. Home won 10 out of 13 dog shows with his terrier and advanced to the Westminster Dog Show. There was also news that the first beaver in 200 years had been sighted in the Bronx River in New York City. Several years ago I spotted a big beaver in downtown Boise. I'm not certain how these interesting but unrelated facts relate to the Legislature but I found them interesting.

Now on to the Legislature:

1. HB245 -- This bill would repeal the personal property tax for business equipment. This would represent a tax shift of about $10 million/year for a period of almost 10 years. The total tax shift would amount to almost $100 million. I received some information from the Latah County Assessor's Office pertaining to the bill. In Latah County we have approximately 2,300 businesses with an assessed value of about $80 million on business equipment. This translates into about $1.3 million impact in Latah County. It would represent a tax shift of $1.3 million to business and home owners in the county. The Moscow Chamber of Commerce is uneasy with the legislation and the Idaho Association of Counties opposes it.

I submitted legislation calling for repeal of the business personal property tax but replacing the funding stream through a 1% sales tax on services (except health, medical, and utilities). It was held in committee because the Governor said he would veto any legislation that would increase taxes.

2. Craig-Wyden Bill -- We just received word from Sen. Craig's Office that the Craig-Wyden Bill funding would be extended for one year. If the funding had not been approved it would have been a impact of $22 million on our rural school districts and counties. We will still have to face the problem next year but at least we have some breathing room.

3. Child Day Care Rules Rejected -- These were rejected by a 6-5 committee vote in Health and Welfare. The bill would have set standards for health, safety, training and staffing, and required criminal checks for day care centers with as few as two unrelated children. Many legislators were shocked and felt those who voted against it were out of touch with reality.

4. Education -- The K-12 budget was set by JFAC. Teachers will receive a 3% base salary increase (note that inflation increased 3.8% last year according to PERSI). Enhancements include funding of up to $350/teacher for classroom supplies, $10 million for textbooks, $7 million for remediation for ISAT (students who have not done well with the test), and an additional $500,000 for gifted and talented students. The budget represents an almost 6 percent increase over last year. Higher Education fared well. State employees will receive a 5% salary increase (merit based) but may have to pick up an additional portion of their health insurance. $10 million was approved for research grants. About $10 million was approved for the University of Idaho Livestock and Environmental Center which would be located in the Jerome area.

5. HB172 -- This legislation pertains to the address protection of victims of domestic violence. Rep. Ringo and I have been working with Professor Elizabeth Brandt of the University of Law School on this legislation. We needed to add on several amendments to the bill and these will be up in House Jud and Rules on Monday. It will be a race against time to get the bill through the legislative process before we close down.

6. Grants and Tax Credits Receive Approval -- H150 sets up a 50/50 matching grant for fuel retailers to invest in biofuel infrastructure. H177 is a tax credit measure aimed at promoting the use biofuels.

7. HB203 -- This bill provides loan forgiveness for teachers who are qualified to teach in severe teaching shortage areas--special education, speech pathology, math, and science. Twenty five percent of the loan would be forgiven for every year taught in Idaho (up to a cap of $20,000). The bill has been amended and will be up on the amending order Monday. 8. Needs Based Scholarship Bill -- HB217 which passed out of the House Ed Committee with only two negative votes is now being held hostage by House Leadership and JFAC. Governor Otter supported the bill which would set up an endowment fund of $38 million. This would generate about $2 million a year for scholarships. The fight is over the amount of money that could be used to fund the bill. I talked with Gov. Otter today and he said he was going to play hardball in support of the bill.

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