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LEGISLATIVE NEWSLETTER VI
FEBRUARY 5-9, 2007
Well we are about the halfway point of the legislative session. The first batch of pages finished up their five week assignment and a new group of pages are now currently undergoing their
orientation.
It appears that JFAC will finalize and set budgets by March 9th and the prediction on the House side is that we will get out of here by March 23rd. Today we heard a rumor that the Governor wants to get us out of here by March 15th but there are two many legislative mine fields to make that date. Already like a couple of kids in a sandbox, the House and Senate will be holding certain bills hostage to use as leverage in the final days of the session. Here are some highlights:
1. K-12 Public School Budget --
The House Ed Committee unanimously voted 19-0 to support the Superintendent's public education budget. This recommendation will be presented to JFAC by Chairman Nonini. The basis of the recommendation was to keep intact a package of enhancements, i.e. schoolbooks, teacher supplies, remediation, and dual class enrollment. The recommendation also included support of a 1% increase in discretionary funds. A number of us also expressed support for increasing the percentage for teacher compensation.
2. Grocery Tax Credit --
the House Rev and Tax Committee selected Representative Bayer's proposal, and it passed on the House floor by a 62-7 margin. This is in one sense a tax relief package that benefits all citizens. It dramatically increases the tax credit on groceries. HB 81 increases the tax credit from $20 to $50. For Seniors over 65, the tax credit would increase from $35 to $75. This means that most Idahoans will be paying less than half of the current 6 percent rate on groceries. Tourists and non-residents would continue to pay the full 6 percent rate.
3. Minimum Wage
-- The State Affairs Committee voted down a minimum wage proposal that I co-sponsored that would have raised the minimum wage to $7.25/hr along with the CPI index to adjust for inflation. The alternative form passed which (if Congress passes the national minimum wage) would mirror proposed national minimum wage legislation currently before Congress. This would increase minimum wage to $7.25/hr over a two year period with the CPI adjustment. The U.S. Senate also wants to include some tax credits to help small businesses in making the adjustment.
4. HCR08 -- My Human Rights Resolution passed on a 59-9 margin, and now goes on to the Senate.
5. Taxes
-- Since 1965 the State has granted over 75 exemptions to various organizations These exemptions total to more than $1.6 billion/year. These are basically subsidies granted by the State to business and organizations with the perceived opinion that the subsidy is of value to the state. However, it is the taxpayer who really pays the bill. There is a concerted effort in the Senate Tax Committee to put a stop to exemptions this year, and to develop a plan to examine our tax policy toward exemptions. I developed a proposal (patterned after Washington State) that would set up a Citizens Commission working with the Legislature, Governors, Office, and the Tax Commission to develop recommendations to the Legislature concerning evaluating each exemption that has been granted and a system whereby we could evaluate a certain number of exemptions each year to see if they do indeed provide benefit to the State.
6. Personal Property Taxes Paid by Businesses
-- I developed a proposal that would eliminate personal property taxes to small businesses. To qualify a business could not have more than $2,000,000 gross or more than 20 employees. This would provide tax relief of more than $50 million/yr. It is also of importance to note that small businesses provide more than 80% of the jobs in the State. Big companies like Micron receive special tax relief. I proposed funding this through a 1% sales tax on services except for utilities, health, and medical. This would not have impacted the State General Budget; however, the Governor has said he will veto any tax increase this year so I'm holding on to the legislation for next year. IAIC does have a proposal to eliminate the personal property tax on business over a 7-8 year period.
7. Elk Ranching --
There will be public hearings regarding elk ranching and hunting on elk ranches in the Senate Ag Committee this coming week. There are many hunters who want to completely eliminate all elk ranches and hunting bulls on elk ranches. There are important animal health and property rights issues involved in the debate.
I'd like to hear your opinions and concerns. My e mail is ttrail@house.idaho.gov and my phone number is (208) 332-1000.
Representative Tom Trail
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