[Vision2020] Extraordinary session

[Shirley Ringo]

First Extraordinary Session of the Fifty-eighth Legislature

 

Visionaries

 

I will provide two reports on the Extraordinary Session of the Idaho Legislature.  This particular report is intended to give an overview of the process, and details relating to it.  

 

Our temporary Governor, James Risch, began preparations for this session soon after the Fifty-eighth Legislature completed its business.  The topic involved funds for public schools, and a tax shift for education funding from a .3% assessment on property values to a 1% increase in the sales tax.  

 

Legislative Democrats believe there needs to be property tax relief, but they did not, as a group, embrace this particular tax shift.  As a compromise, they offered the idea that the .3% tax shift go to homeowners only at this time, with no immediate increase in the sales tax.  Among the points of discussion:

 

The cost of delivering property tax relief to homeowners only is about one-half the "surplus," or unused funds.  The Democrats advocate no increase in the sales tax to cover this in future years until the ongoing strength of the economy becomes clearer.

 

The shift proposed by the Governor goes to all who pay property tax.  Large companies that already receive large tax breaks get another as a result of this legislation.  This part of the Governor's plan needs further study.

 

For years, polls have shown that citizens are willing to raise their taxes, specifically to support education.  In November, Proposition One will be one the ballot to formally measure the enthusiasm for such targeted support for education.  Signatures to place the issue on the ballot were collected with ease.

 

The decision to raise the sales tax by 1% definitely complicates this issue for voters.  The special session decision represents a tax shift, not more money for education.

 

Republicans called the Democrat plan unconstitutional, although Democrats have expert opinions that it is not.

 

Former Idaho Chief Justice Robert Huntley questioned the legality of confining the topic of a special session to one bill only.

 

The process was fascinating, with almost all tricks of the trade being exposed.

 

The Governor's legislation was introduced in House Revenue and Taxation Committee, chaired by Dolores Crow.  Although there was a big crowd of potential testifiers and interested observers, Crow refused to move the meeting to a room with sufficient space to accommodate the crowd.  (With limited seating, she saved space in the back row for family members.)

 

Crow limited debate to two favorable presentations on each side.  No negative debate was allowed.  Many who had extended themselves considerably to travel and present testimony were not allowed to speak.

 

On the Senate and House floors, there were no limits on debate.  Particularly in the Senate, parliamentary procedure was explored thoroughly.  Motions to amend the Governor's bill were defeated along strict party lines in both House and Senate.  The exception was Senator Schroeder, who wanted to amend to bill to clearly protect funding for education. In the end, we had the predicted result - the Governor's plan was adopted.  His votes were counted before the session was called.

 

Voters will have a fascinating choice facing them in November.  The Governor's bill includes placing the following question on the ballot in November:

 

"Should the State of Idaho keep the property tax relief adopted in August 2006, reducing property taxes by approximately $260 million and protecting funding for public schools by keeping the sales tax at 6%?"

 

and Proposition 1:   Proposition 1 directs that the sales tax be raised 1% with that revenue going to education.  If the sales tax has already been raised, it directs the legislature to identify another stream of revenue to provide equivalent funds.



More to come ... 



Shirley Ringo

 

 

 

 

 

            

            
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