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LEGISLATIVE NEWSLETTER XIII--MARCH 17-21/2008
Constituents:
We hope to be out of Boise sometime next week.
Most committees are closed down, and there are only about three big major issues to resolve. The pen the Governor used to sign the dog fighting/felony bill is now on E Bay and the price yesterday was up to $355.00. Money will go to the local animal shelter in Moscow. On Tuesday Rep. Shirley Ringo, Carl Hulquist, Fran Halstead, and I will meet with Governor Otter as he signs HB501--protection of addresses of victims of domestic violence. HJM11--Scenic Rivers and Wilderness Act passed unanimously in the Senate. I also co-sponsored a House Concurrent Resolution calling for a study of concurrent enrollment. This resolution passed and is funded at $50,000. The State Board of Education will take this topic up at its meeting in Lewiston next week. I also filed last week to run for office this fall. Today I had my annual checkup with my cardiologist and came out 100% okay. Dr. Writer will type up a letter which I can use during the campaign if the question of my health comes up as a campaign issue. The last remaining issues for the legislature to deal with:
1. SB1447--This is a proposal to cap medical benefits for current state employee retirees and to eliminate medical retirement benefits for future hires. The bill has cleared the
Senate. If this becomes law I can see its impact on recruiting new hires as state employees or trying to retain outstanding state employees who were promised health benefits upon retirement.
It sounds like the old story of the "Field of Broken Promises" carried out by a local university.
Under the new plan those retirees between 55 and 65 would see benefits capped
at $1,800.
Upon reaching eligibility for Medicare the benefits would be cut. State employees hired after June 30th would receive no retirement medical benefits. Many state workers for years were promised full health benefits on retirement. Proponents say the bill will save the state more than $400 million over time. Many state workers took early retirement based on the state's promise of the state to cover these costs. UI retirees put their trust in the institution to cover health benefits upon retirement as part of the early retirement package. The University conveniently forgot their commitment. The issue will be on the State Board of Education's Agenda in Moscow on April 18th at 8:30 am. SB1447 should come to the House Human Resources Committee. We are working on a proposal to pull together a resolution calling for a study committee to work on the issue between sessions.
2. HB599--Elimination of business personal property tax--The Idaho Association of Commerce and Industry is the big sponsor of this bill. Over time it would eliminate about $110 million in
personal property taxes.
I was told early in the session the bill would be revenue neutral--or no impact on counties. However, our County Commissioners, Pat Vaughn the Latah County Assessor, and Connie Ferguson, Treasurer, and other have run the figures and basically in order to compensate the loss of personal property tax the Commissioners would have to raise property taxes to make up the loss--perhaps as high as $5 million. Mayor Nancy Chaney is also against the bill.
There was a proposal to put a cap of $50,000 per business. This would have only cost about $10 million and covered 80% of the small businesses. There is great worry even among
conservative legislators that with the downturn in the economy it will draw down the state revenue tax stream. If the bill passes it means that more millions in taxes will be shifted to individual tax payers.
As former legislator, Rep. Ken Robison said, "This will be another step in a 30 year pattern of legislative policy: raising taxes paid mostly by individual taxpayers to give tax cuts to businesses."
3. HJM4--This is the proposed constitutional amendment that if enacted would allow local entities, i.e. counties to run local option tax proposals to fund specific infrastructure projects. The
problem is that it would require a supermajority vote. In Latah County both the City and the County are studying a proposal to build a combined Law Enforcement Center. Under existing statute a local
option could be run that would only require a 60% majority; however, the statute that authorizes this sunsets in mid-2009.
Jack Nelson, Latah County Commissioner, favors the amendment as does the Idaho Association of Counties. The Idaho Association of Cities is not in favor. My guess is that HJM4 will narrowly pass the House but it will have major problems in the Senate.
4. Transportation--The Governor has been trying raise an additional $200,000,000 for transportation infrastructure. His $150 registration fee proposal was rejected, but the House did pass
GARVEE funding for $134,000,000. There are a series of House bill geared to raise more funds-H631 would raise registration fees for various types of trucks; H632 raises registration by $24 for pickups, and all
other vehicles having a weight under 8,000.
This is predicted to raise $30 million. There are other proposals to increase a surcharge of $10 on special license plates, place a 4% tax on the daily lease or rental rates of leased cars, etc. If all these pieces fit together it could raise between $45-$110 million. These will be debated this coming week.
5. Grocery Tax Credit--The bill was passed by the Senate today and now goes to the Governor for signing.
These are the major issues remaining in the Legislative session.
I'll probably wait until Sine Die to send out a wrap up newsletter. Please send your comments to me by e mail to ttrail@idaho.gov
Rep. Tom Trail
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