[Vision2020] Legislative Newsletter 11, March 20-24

[ttrail at moscow.com]

LEGISLATIVE NEWSLETTER 11--MARCH 20-24TH/2006
 
    The Idaho Legislature is heading toward the finish line, but some
 major pieces of legislation still remain.   It appears that a compromise
 has been reached with the Governor's  Connect Idaho Project using
 GARVEE bonding.  However, there are the major issues of property tax
 reform, community colleges, school facilities, and recharging aquifers
 from the Snake River that still remain on the table.   Here are some of
 the highlights of the week:
 
1.  Connecting Idaho  --  The Legislature and the Governor appear to
 have reached a compromise.  Legislators voted to maintain $200 million
 in first year funding and increase the transportation department's
 flexibility in managing the Connecting Idaho Project.  There are two
 major projects for North Idaho.  Over $40 million will be utilized for the
 section from Worley to Setters, and $35 million will be used to purchase
 land to build 95 from Garwood to Sagle.
 
2.  Property Tax Relief  -- HB680 in on it's way to the Governor's Desk. 
 It will let seniors defer their property taxes until they die or sell
their  homes.   The Home Owners exemption raising the amount from
 $50,000 to $75,000 passed the House.  It appears that the Senate is in
 favor of the bill but discussion is going on in terms of what type of
 indexing formula might be used.
 
     The major property tax relief measure which passed the House would
 increase the sales tax by ½ cent to replace 0.15% of the property tax
 for school M & O. This would still leave a gap of about $35 million to
 come up with, and there are serious doubts of the state's commitment
 to maintain this funding.  Other measures discussed in the Senate relate
 to increasing the sales tax to 1 cent and replacing all of the M & O.  It
 will be interesting to see how this plays out.
 
3.  Energy Assistance  --  Legislation was approved to provide about $3.5
 million in energy assistance to low income citizens of the State.   Most
 of the money will go directly to utility companies to pay energy bills.
 
4.  School Facilities  --  The Senate is debating a bill to provide funds
for fixing and constructing schools.  The bill is enacted would use about
$5 million to pay for school maintenance next year and create a $25 million
 loan fund to fix schools.   Schools who fail to pass bond issues to build
a new and safe school could suffer the consequences of failing to do so. 
 The State Board of Education under HB743 can fire the Superintendent,
 and in an Attorney General's opinion the new Superintendent appointed
 by the State Board of Education can fire the Assistant Superintendent,
 Principals, and all administrative staff.  He/she can then raise the
 property taxes of the district without the vote of the patrons to help pay
 for the new school.   These measures seem to be right out of the book
 Animal Farm.  I call it taxation without representation.
 
5.  Minimum Wage  --  The Senate State Affairs defeat a minimum wage
 bill by  a 12-5 margin.    I debated in favor of the bill.   My
 understanding is that a bi-partisan coalition will bring back this
 legislation next year.
 
6.  High School Redesign  --  The proposal of the State Board of
 Education to add several more credits of math and science was
 approved by the House Ed Committee; however, the plan will not go
 forward unless JFAC is willing to come up with the $1.4 million to fund
 the project for the first year.  Rod Lewis, Chairman of the State Board 
 has written a letter stating that if the plan does not receive funding
that the Board will not move ahead in its implementation.
 
7.  The House voted 43-22 to pass a bill to use excess water to recharge
 the 10,000 square mile Eastern Snake Plain Aquifer.   Idaho Power says
 the change would force a rate increase.   This may be one of the key
 issues that will cause a fight between the Legislature and the Governor
 in the waning days of this session.
 
     Hopefully, there will be only one more final Legislative Letter.  I
hope that we wrap things up by the end of next week.   I appreciate your
 comments and suggestions.

My e mail is ttrail at house.idaho.gov
 
Representative. Tom Trail



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