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LEGISLATIVE NEWSLETTER 3 --JANUARY 24-30/2009
Constituents:
This has been a week of continued concern over the economic decline.
Estimates for the 4th quarter indicate a 3.8% decline in the national economy, and that is most certainly reflected in Idaho. Budgets developed by JFAC are reflecting, for example, in k-12 education almost a 5% cut. This is for the first time in many years that a public education budget will have suffered a reduction. At the same time we all have concerns about the negative impact on educations and essential services, there are indications that the National Economic Stimulus Package may offer some hope for education, transportation, and essential services. The challenge will be for Congress with the President's sign off to be in time that State Legislatures like Idaho to have the basic information in time to utilize the money in the F10 budget process. I suspect that if the details come in late and we have adjourned that a special session might be called. Even if we receive the badly needed federal funds we need to guard against individuals in power at the state level wanting to use the dollars for "special" projects.
l. Public K-12 Education--Here are the major points in the $79 million K-12 cut proposed by SPI Luna.
$20.8 million: reduce discretionary funds by the amount of state
lottery and state maintenance funds.
$2.5 million: eliminate state reimbursement for field trips, test driving
and bus driver training.
$1.7 million: prohibit large districts access to the cost-per-mile
measure.
$3.9 million: reduce administrative staff allowance.
$4 million: eliminate early retirement for teachers and cap the index
multiplier for teachers at the current level.
$6.1 million: freeze teacher salary increases for one year.
$15.1: reduce base and minimum salaries by the equivalent of three
contract days. Give districts direction in how to implement this
reduction.
$3.3 million: reduce state funds on textbooks that are matched by the
state.
$3.8 million: reduce state funding for textbooks by 40 percent
$781,000: reduces funding supplies from $350 from $500.
Part of the reduction will be offset by taking $17 million from the reserves. If the cuts have to go much deeper then SPI Luna has a proposal that would basically eliminate over 600 teaching positions. The
impact of this proposal was covered in my earlier e mail letter this week.
2. Economic Stimulus Plan--I simply want to share some of the highlights of the House Version of the plan which passed earlier
this week. The Senate is working on their version and once the bill passes it will be sent to a conference committee. The figures below are Idaho specific, and cover a two year period.
$277,000,000: Medicaid relief
$64,000,000: Food stamps
$319,000,000: State stabilization fund--to restore cuts in K-12 and
Higher Education to FY08 levels
$220,000,000: Highway and Bridge Infrastructure
3. Further Data Based on National Stimulus Plan Data
$3.8 billion: Rural water and waste disposal.
$2.8 billion: Rural Broadband infrastructure development
$l.5 billion: wireless and broadband grants
$3 billion: for Byrne justice assistance grants
$4.5 billion: Army Corps of Engineers
$6.0 billion: Energy and Water development
$600 million: Training for Primary Care Physicians and Nurses
$l.5 billion: University Research Facilities
$1 billion: Educational Technology
$15.6 billion: Pell Grants
$6 billion: Higher education repair and modernization.
There are many other areas not covered, but this
does give you a flavor in what is being proposed. In the meanwhile states will need to move ahead to set budgets with our current resources and knowledge of the economic downturn. The challenge will then
begin when Congress finishes approving the Economic Stimulus Package and states know what funds will be coming in. The Stimulus Package will cover two years -- FY10, and FY11.
I've spent considerable
time on the budget and in terms of the National Stimulus Package, and next week we'll return to more specific legislative issues within Idaho Again, I like to hear your comments and recommendations. My e mail is
ttrail@house.idaho.gov and my office phone is 332-1148.
Representative Tom Trail
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