[Vision2020] House Bill 754

[Ron Force]

It limits state expenditures based on a percentage increase in population
and the consumer price index.  What's wrong with this?  If the economy grows
faster than population and prices, the excess tax revenues are refunded.  It
virtually guarantees that expenditures all functions of government-- public
safety, education, health and welfare, etc., will shrink as a percentage of
the state's economy. It makes passing tax increases futile, since even if
you raise the money, you can't spend it.  You can't shift functions from
local governments to the state, such as local property tax relief for
education. If the courts rule that Idaho has to fund constrution for local
schools, the money has to come out of something else.

In this system, bad economic years rule. If the economy goes down, like it
did in 2001, states have to cut expenditures to balance the budget. When the
economy comes back, expenditures during the good years are capped at the
average of the three bad years. Public expenditures are continually racheted
downward. You can't accumulate a "rainy day fund", since all excess tax
revenues have to be instantly refunded.

Suppose that a greater percentage of Idaho's high school graduates want to
go to college?  Too bad, expenditures are capped. Why not impose higher
tuition so students pay a greater percentage and with more money,
universities can expand? Nope, absolute spending is capped, so if you want
to grow higher ed or send more criminals to prison, you have to throw more
babies off Medicaid.  It's a conservative's dream.


**********************************************
Ron Force          Dean of Library Services
U of Idaho         PO Box 442350
Moscow ID 83844    rforce@uidaho.edu
(208) 885-6534
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I reviewd HB754.

http://www3.state.id.us/oasis/H0754.html#sop

Could somebody please explain the legislative mumbo-jumbo detailed in this
bill?

What is the bottom line on this bill now that it has passed?

Tom Hansen

> Visionaries:
>
> The Revenue and Tax committee passed a bill today that I think will be
very
bad for us.
I'll get more information to you, but you may want to gear up to send
messages
to
legislators.  If you care to read it, it's HB 754.
>
> Shirley
>
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_____________________________________________________
 List services made available by First Step Internet,
 serving the communities of the Palouse since 1994.
               http://www.fsr.net
          mailto:Vision2020@moscow.com
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