LEGISLATIVE NEWSLETTER XI--March 13-16, 2007
 

 Everyone is hoping to get out of Boise by mid-week or around the 21st.  All SINE DIE LEGISLATIVE NEWSLETTER  --  MARCH 29, 2007

 Constituents:

 It looks like we will wind up the Idaho Legislative session today.   The biggest issue remaining is the GARVEE Bond funding for Idaho roads.  I suspect that we will vote today for the $200 million plus for road construction.

 This week the major issues were the actions regarding the Governor's Vetos of HB81  -- Grocery Tax Credit and the smoking ban in bowling alleys Bill. Most of us think that the Governor made a bad mistake in vetoing the bowling alley bill.  I received over 200 e mails, calls, and letters all against the Governor's decision. The House over rode the veto on a 57-13 vote and the Senate by a 28-7 margin.   This was somewhat historical since it was only the 3rd successful override of a veto since 1919 (of a Republican Governor).   The House over rode the Governor's veto of HB 81 the Grocery Tax Credit on a 48-22 vote, but the Senate simply referred it to the Senate Local Government and Tax Committee. So the effort essential died.  The basic result is that there will be no grocery tax credit (except for those on the books already) this year.

It was interesting since everyone regardless of party came in committed to provide some relief to citizens regarding a break in reducing the tax on groceries.   Many Republicans felt that since passing HB 1 -- the Property Tax bill in special session last August  --  that low income citizens should get some type of break, and that the Grocery Tax Credit was the place to go.   The feeling was that increasing the sales tax by one percent to help with the property tax relief hit lower income citizens more (since the sales tax is a regressive tax and low income citizens spend more on groceries).   So everyone came to the table talking about reducing the sales tax on groceries; however, the problem was in method of doing it.  It basically came down to a battle between the Governor's plan -- a means based approach, and the more general approach that would have treated all citizens the same regardless of income.  Frankly, I felt the means based approach was the fairest approach but in the end voted for HB81 since it seemed to have the most support.  The issue will receive top priority in the 2008 session.

 The Senate Local Government and Tax Committee took a firm stand this session and tabled every bill that provided an exemption that came from the House.   The committee members wanted the Legislature to take a good hard look at the entire Idaho tax policy and structure with special emphasis placed on the issue off the current 75 exemptions which total over $1.6 billion per year.  As a result, an interim committee will study the exemption issue.   I introduced a bill to the House Rev and Tax Committee calling for the formation of a Citizen's Committee to work with the Legislature and the Governor on the exemption issue. The bill called for the committee to come up with recommendations and a system to review all of the exemption on a timely basis, and then the State could decide to continue the exemption or not. It placed the organizations receiving the exemption in proving whether or not the exemption provided a benefit to the state.  I took my bill over to the Senate Committee and they will be looking at it over the summer.

 This session a number of good ideas were stopped -- simply with Chairman putting the bill in desk drawers. Some of these ideas were:

  1.  Local-option taxing to aid the Treasure Valley transit needs

 2.  Licensing for day care centers

 3.  Licensing for elk farms

 4.  Early childhood education standards

 5.  Vote by mail

 6.  Help for community college formation

 7.  Increased fines for not wearing seat belts

 Today the Governor signs HB217 -- Idaho Opportunity Scholarship Bill.  This is a needs based scholarship bill aimed at assisting students from low income families to go to college.  In the past Idaho had only provided an average of $17/student for needs based assistance and ranked 49th nationally.  Studies indicated that only about 6% of students from low income families attended Idaho universities. The appropriations bill was passed yesterday and provides $2 million for ongoing scholarships and an additional $10 million for an endowment fund.  There is also the commitment to provide $10 million/year more until the corpus reaches $40 million.   This is a bill that I worked on for three years and as the bill's Co-Sponsor.

 I'd probably give a C- as an overall grade to the performance of this session. The good news was that Higher Education received an almost 9% increase and 5% for faculty and staff salaries.  The K-12 education was adequate but only provided a 3% increase for teachers. With inflation at a 3.8% increase many teachers will lose ground.

 I'll continue to send out periodic legislative letters between session and they will probably be more focused on specific issues.  I will be leaving with the Governor's trade mission to Cuba on April 9th.   All participants pay all of their own expenses.  This is an agricultural trade mission and one of the few opportunities that we have to open relations with Cuba.

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