[Vision2020] Legislative Update week 3 from Rep. Trail

[RepTrail]

LEGISLATIVE NEWSLETTER 3--JAN 24-28/2005
 
     This week President White presented the U. of I. budget to JFAC and
to the Senate and House Education Committee.  He strongly supports the
Governor's budget request of 1% CEC of $819,900, the 27th payroll (which
comes in about every 11 years) $1,353,700, increased funding for
enrollment workload adjustment and maintenance and operation.  I'm
guardedly optimistic that most of this will be funded.
 
1.  Moscow Chamber of Commerce Visit  --  The Chamber will be in town
for two days next week and will visit with the Governor, Director of
Commerce and Labor, Secretary of Agriculture, and with Karl Dreyer of
Water Resources.  Dist. 6 legislators will be meeting with the group on
several occasions.
 
2.  Naylor Farms and Other Water Issues  --  No date has yet been set
for the Naylor Farm Water Right Hearing.  The County Commissioners will
hire their own certified geologist to present evidence and, hopefully,
evidence from the Dept. of Water Resources.  The fact that the testimony
of Naylor's geologist has been called into question (because of the fact
he is not certified in the State of Idaho) is a positive point.  The
strong community support against the Naylor application is also very
helpful.   
 
     Snake River Adjudication and other water issues continue to
dominate interest in Boise.  I've probably received 5 times as much
mail, e mail, calls, and studies about this issue.  At this point I'm
still listening to the debate.  I'd appreciate your input on this very
important issue to Idaho.
 
3.  Corporate Headquarters Tax Act  --  The Governor's plan could
attract big business to Idaho but only to big cities.  He would offer
tax breaks and exemptions to companies that invest at least $50 million
in a new facility and bring in 500 high paying jobs over a period of 5
years.  One fact not widely circulated in the press is that Fortune 500
companies already in Idaho, Micron, Albertsons, etc. could qualify for
the breaks to keep them in Idaho.  I talked with Mayor Roger Chase,
Pocatello, and his comments are representative of those or Barbara
Richardson-Crouch in Latah County.  The legislation doesn't help Moscow
or Latah County.  The Association of Idaho Cities is proposing that
legislation that would require a company to create 50 jobs (paying a
min. of $40,000), ability to rehabilitate old plants to operate in, and
over a five year period would help cities like Moscow attract more
business.  Sounds like a good idea.
 
4.  Budget  --  It appears that there is strong support to downsize the
Governor's proposed budget.  The major areas which will probably be
affected are K-12 education and Medicaid. The one cent sales tax (which
brings in $180 million/year) goes off on July 1st.  There is probably
enough one time money available to get us through the 06 budget, but
crunch time will be for the 07 budget.  Most experts feel that the
economy will not be strong enough to generate the $180 million in tax
revenue needed to make up from the removal of the one cent tax off.
 
     I introduced a bill today that would reduce the sales tax from 5%
to 4% and yet realize a net gain to the state of $60 million as compared
to the 6% sales tax intake of $180/year.  This would be accomplished
through elimination of 8 major tax exemptions and placing services
(except medical) under the 5% sales tax rate.
 
     Frankly, I hate to think of next year.  The last time in a tough
budget year that the legislature made all the cuts from the expenditure
side with no tax increase was in 1952.  This resulted in the closure of
LCSC and Abilion Normal School.
 
     I predict it will be a very long session next year.
 
Your can contact me at ttrail at house.state.id.us.   
My desk phone is 332-1260
 
 
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