LEGISLATIVE SPECIAL--STIMULUS PACKAGE IMPACT ON IDAHO

Constituents -- I received a number of inquiries about the impact of the Economic Stimulus Package on Idaho.  Idaho's share initially got $1.2 billion mostly for education, transportation, Medicaid and other programs that filter down to schools and communities.   Idaho's share may top $2.5 billion when the  counting stops.   We probably will not know the full extent until well into 2010.  I should point out that Idaho receives about $1.6 billion annually and has for years received funding from the federal government.  I will now try and give you a general idea of how the money will be spent.

  1. Public Education--$260 million--Of this $166 million will help pay school bills through 2011. About $85 million will keep from having to cut public education this year. In 2010, JFAC wants to put $60 million into school budgets to help ease teacher pay cuts.   About $24 million will boost learning for low income students.   Special education will received about $55 million.   The Feds in 1972 promised to pay 40% of special education funding but only came through with about 15% annually.   Idaho will also receive $13.5 million with grants improving learning technology.

  2. Senior Meals/Job Training --  About $485,000 will expand meals for homebound people and through feeding sites such as senior job citizen centers.

  3. Housing --  The state will receive $15 million. New low cost units for low income people will receive $8.8 million.   About $4.4 million is targeted to reduce the homeless population through rental subsidies and moving assistance.

  4. Unemployment -- Idaho's unemployment rate is about 7 percent or about 51,000 citizens out of work.  About $160 million will be coming in over a two year period.  $40 million will add $25 weekly to unemployment checks. $75 million will lengthen the time to collect unemployment benefits, and $33 million provides alternative ways to qualify for benefits.

  5. Energy Saving Buildings -- $28 million--of which $16-$19 million will go to energy efficient schools. The remainder will go to provide solar power to selected schools.

  6. Idaho Arts -- Idaho Arts will receive $294,000.  The money will be used to help professional arts organizations around the states that have suffered losses.

  7. Health and Welfare -- A total of $408 million comes to the state.  Of this $255 million will pay medical bills for low income people (Medicaid).  The food stamp program will receive $64 million.  About 125,000 Idahoans now qualify for food stamps. Some $31 million will be used to boost energy efficient homes for low income housing.

   8. Roads, Sidewalks, and Bridges -- $182 million.  A total of almost $150 million will complete the major interstate project in the Treasure Valley and the Dover Bridge in N. Idaho.  Local roads and sidewalks will receive $28 million.

  9. Healthy Forests are targeted for $8.8 million.   The funds will be used for fire prevention and to improve roads and trailheads.

10.  Governor's Discretionary Money --  $45 million--Governor Otter will used $5 million for drinking water improvements, $10 million for waste water projects, and $29 million for transportation projects.

 11.  Environment --  This category will receive $61 million. Of this $20 million will be used to clean up the Bunker Hill mining site. $20 million will be directed toward improving water projects, and $19 million to improve water systems.

There are also some other impacts of stimulus money that is on the way:

  1. Federal Tax Cuts --$209 million willl go as a credit to working families.  A tax credit will return $400 a year for workers earning up to $95,000 and $800 forcouples earning up to $190,000.  It is estimated this will benefit over 500,000 Idahoans.

     College Assistance--Some $50 million is directed to this program.  A college tuition tax credit of up to $2,500 has been expanded to include for low income students.  This may benefit some 20,000 Idahoans.

  2. State Tax Breaks--Help with new car purchases is estimated at $1.6 million.   This allows one to deduct the sales and excise tax on new vehicle purchases up to $49,500.

  3. Tax break for businesses--An estimated $5 million to help recover new costs of new equipment purchased in 2009.

   I suspect this is far more than you wanted to know, but at least it will give you a short hand version of what the Economic Stimulus Package means to the State.

Rep. Tom Trail            

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