LEGISLATIVE NEWSLETTER IX--MARCH 6-12/2010

Constituents:

The Ides of March and the Legislature are well upon us. We understand the predicted date for Sine Die is March 26th which is approaching April Fools Day. Here are some of the highlights of the week.

1. Budget  – JFAC has finished all except one of the budgets so we will be voting on these bills next week. Idaho Public TV's budget was reduced but not as much as the Governor had recommended, and nothing in the bill mentions totally cutting out IPTV funding during the next three years.

JFAC also wrote a letter to Director Armstrong of Health and Welfare to fund the Cystic Fibrosis Program. Basically not funding the program would mean a death sentence to those funded under the program. We still need to have the funding with intent language. As we make votes on some of these types of program, we should remember that three thousand years ago, the old testament prophets proclaimed that the virtue of a society is measured by how it treats it most vunerable members.

2. Taxes –  While no tax increases will be passed this session, it is at least reassuring to hear more debate about the issue. I certain would have supported increasing funding for more tax auditors to collect unpaid taxes, postponing the funding of the consolidated elections ($4.2 million), dalaying the reduction of the premium insurance tax ($7.0 million), and implementing the grocery tax credit for only very low income earners. All of these initiatives would have realized about $35 million more for the budget.

The Senate passed a bill calling for an examination of all of the sales tax exemptions. Sen. Schroeder and I had submitted a similar piece of legislation to the House Rev and Tax Committee. Chairman Dennis Lake of the House Rev and Tax Committee said no such legislation would move ahead this session. Idaho is estimated to be losing up to $80 million in lost internet sales tax a year. As more and more business is conducted through e-commerce many lawmakers have concerns about being far to brick and mortar stores as well about the State's shrinking tax base. That's why some lawmakers want Idaho to join a multistate coalition that is studying how to collect sales tax on internet purchases. The bill was voted on favorably to print on a 10-8 vote.

3. Lawmakers hope changes to the Idaho fund that pays medical bills of the indigent will prevent taxpayers from covering ill advised, costly procedures like weight loss surgery. Budget writers set a $18 million Idaho Catastrophic Heath Care Fund budget for FY11. This is less that the

$34 million the fund got this year.

4. Political Checkoffs A Thing of The Past.--the Governor signed into a law a bill that ends a political checkoff for parties on Idaho income tax forms. Since it was enacted in 1976 the voluntary checkoff has shifted

$1.6 million from the State general fund to political parties.

5. Funding Proposal for State Parks Fails – Sen Schroeder and I with support from the Governor's Office presented a piece of legislation calling for a citizen's advisory vote on the November ballot with the question, "Would you support the Idaho State Tax Commission to credit $5 from each tax return filed each year and monies being placed in a Idaho States Park Dedicated Fund?" The proposal could have raised about $3 million/year for our State Parks System. The RS was defeated in the House State Affairs Committee.

6. No More Texting While Driving –  The Senate on Wednesday overwhelmingly approved a ban on motorists' texting while driving. No more reading, composing or sending e mails, text messages, status updates on Facebook/Twitter/etc. For motorists may become law; however, the bill still has to go through House Transportation.  It was pointed out that law enforcement may have a hard time enforcing the bill if it becomes law.

There will be more highlights this coming week as we rush to wind up a very hectic session. I always appreciate hearing from you. My e mail is ttrail@house.idaho.gov and phone (208) 332-1184.

Rep. Tom Trail

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