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LEGISLATIVE NEWSLETTER I -January 8, 2006
The 59th Idaho Legislative Session is underway. Today we heard Gov. Otter's State of the State address. Listed below are some of the highlights.
1. The Governor
noted that Idaho had an all time low unemployment rate of 3.3%, and that the state had passed the $4 billion mark in exports for 06.
2. Salary increase for state employees
-- the Governor is recommending a 5.0 % merit increase for state employees; however, one has to look at the details because he is not providing any funding for benefits.
3. Grocery Tax
-- the time has come to eliminate the grocery tax according to the Governor and others in the legislature. The total impact would be $180 million. The Governor will propose increasing the grocery tax credit to $90/individual. I will be introducing legislation that will eliminate the grocery tax. To raise the $180 million I am proposing that we place services except for medical and health) at the 4% sales tax level. This will raise enough money to replace the loss of taxes on groceries.
4. Education funding
-- The Governor proposes funding public education at $1.36 billion and Higher Education at $275 million. One time monies of $9.5 million will be directed toward salary equity.
5. Scholarships
-- I've been working with the State Board of Education during the past year to develop a needs based scholarship fund. The Board was proposing a $10 million line item in its budget. It was a pleasant surprise to hear the Governor propose using $38 million of one time surplus money to set up an endowment fund. This would generate about $2million/yr. in scholarship funding.
6. Community Colleges
-- The Governor is proposing to allow the formation of Community College Districts with a 60% vote if the vote is held in conjunction with the General Election. The proposal includes state support of $5 million if such a vote is passed.
7. Nursing Education -- The Governor will propose spending of $37 million for new nursing education buildings at LCSC and CSI.
8. Transportation
-- $260 million is being proposed for new GARVEE Bonds; however, the Governor cautioned that professionals should make the choice of where to spend the money on road projects and not politicians (he mentioned the Bridge to Nowhere).
9. Other Items of Interest
a. $15 million to fund higher education research projects
b.
$11 million for the establishment of the University of Idaho Dairy and Environmental Center in Southern Idaho.
c. $6 million for noxious weed control
Other highlights will come out with the details of the budget.
Please send me your comments to ttrail@moscow.com or ttrail@house.idaho.gov
My phone is 332-1260
Representative Tom Trail
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