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2009 PRE-LEGISLATIVE NEWSLETTER (Jan 9)
The Idaho
Legislature begins the first day of work on January 12th with Governor Otter's State of the State address. This is an economically bleak time nation and statewide. There will be no new programs requiring new funding approved.
Unemployment figures in Idaho are hovering around the 6% mark and will increase even further according to predictions. Most experts predict that the economic recovery period may well not occur until next year.
We do have about $400,000,000 in three rainy day funds/reserve funds.
Public education has about $114,000,000 in the public education reserve, and this will be used to protect negative budget impacts on public education. The remaining reserves will be utilized, in part, to protect other high priority programs; however, budgets for all agencies including the current fiscal year and FY10 will suffer. Holdbacks of 4% have already been initiated and agency administrators have been told to prepare budgets reflecting a 6% cut. We may even approach a 10% holdback if economic conditions worsen. University of Idaho administrators indicate that if they have to exceed a 6% cut then we are looking at eliminating faculty/staff. This then leads to the elimination of programs. Protection of Higher Education programs is absolutely essential for the University of Idaho and other institutions in the state. Investment in education has long term benefits.
The major battle may well be between the Governor and the Legislature over the Governor's Transportation Proposal.
Essentially the Governor would like to increase taxes to improve Idaho's transportation infrastructure at a cost of $240 million. The increase would be primarily new taxes on fuel and increase registration fees. The Legislature in the main agrees with the Governor on improving our transportation infrastructure, but not at this time of dire economic stress on our citizens. This could be the primary battle during this next session. One note of hope: if the Obama bailout plan for major infrastructure program passes Congress, then Idaho could benefit from the plan. The Governor's office has a list of major highway projects that are ready to start up within 60-120 days. If the federal funding comes through then this may take care of any major legislative battles.
One of my major concerns is ensuring that our State is able to fund the safety net programs for our low income families. There will be many tough decisions to make and priorities to work out.
My address in Boise is:
Capitol Annex
514 W. Jefferson St.
Boise, ID. 83702.
Please use my Boise e mail address:
ttrail@house.idaho.gov.
My phone numbers are:
208-332-1260 (chamber)
208-332-1184 (office)
Please communicate your ideas, concerns, and recommendations. I will try and reply as soon as possible.
Rep. Tom Trail
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