[Vision2020] Legislative Update week 1 - January 6-10, 2003

[RepTrail]

Dear Visionaries:

This is the first Legislative Newsletter of the year.  You can contact me 
via e mail, phone, fax, or conventional mail:

ttrail@house.state.id.us in Boise
tel (208) 332-1202,
fax (208) 334-5397

Rep. Tom Trail
Idaho State Legislature
State Capitol Building
Boise, ID 83720-0038

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email webmaster@infotrail.com

  1.  Governor Kempthorne's State of the State speech   --  The Governor 
probably gave his best speech.  With the State in deep financial trouble, 
he firmly bit the bullet and laid out what the severe consequences would be 
if there were no tax increases.  He said that cutting the state's most 
vital services was unacceptable.  The 1.5 percent increase in sales tax 
will raise a projected $250 million coupled with his proposed increase in 
the cigarette tax.  Many Democrats and some Republicans oppose an increase 
in the sales tax because it is a regressive tax and hits low income 
families the hardest.  Rep. Alan Andersen (D) Pocatello and I will be 
introducing tax legislation which proposes to reduce the sales tax from 5% 
to 4% but through eliminating a number of tax and sales tax exemptions 
could raise $130 million for the General Fund.  The decrease in sales tax 
would make border cities like Moscow and Lewiston more competitive with our 
Washington consumers.

   2.  Budget  --  The highest legislative priority for District 6 is to 
secure adequate funding for K-12 and Higher Education.  Let's take a look 
at the Governor's budget: expected revenues are projected at $2.03 
billion.  This starts with $l.8 billion from projected revenues which 
includes $240 million from sales tax increase and $28.7 million from a 
higher cigarette tax.  On the expenditure side there is $5.5 million for a 
higher grocery credit, $13.4 million for refund fund, $17.9 for the rainy 
day fund, $31 million for tobacco settlement fund, and $20.7 million for 
the state construction account.

       For expenses we start with $1.9 billion Idaho's base budget plus $93 
million for inflation, capital expenses, and higher enrollment and 
caseloads.  If the tax increases raise the $250 million then this means a 
2.1% increase for K-12 public education.  For Higher Education it would 
mean a 4.2% increase for the three universities and LCSC or a total of 
$222.5 million.  The Governor also wants to release funds for capital 
improvements which would allow the completion of the UCC at the U. of 
Idaho.  This $10.5 million would have a very favorable impact on our local 
economy.

       State employees will receive coverage against significant increases 
in health insurance premiums, but no pay increase for the second year in a 
row.  There are some legislators including conservatives who will be 
working toward legislation that would at least add a 1% increase to state 
employee salaries.

       Further savings in Medicaid costs will be pursued, but a 5% increase 
in the reimbursement for foster families and continued state subsidization 
of the cost over $5,000 of catastrophic health care for poor people 
suffering from smoking related illnesses will be covered.

       The Governor has provided some room to compromise with 
conservatives.  There is about $70 million directed toward "savings" 
account funds.  There is no certainty that the Legislature will "buy" the 
Governor's budget, but I will certainly be working with all stakeholders to 
see that we get the funds needed to support education, Medicaid, and other 
essential services.

       The battles lines are drawn and next week we'll get into some 
specific legislative issues.

       Rep. Tom Trail/Dist. 6

Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail@moscow.com

www.infotrail.com/idaho