[Vision2020] Legislative update

[Shirley Ringo]

Visionaries:

Legislative News
 

Governor Otter recommends a change in the grocery tax credit.  This is a timely recommendation, since the sales tax was increased to 6% as a result of legislative action taken during the special session last August.  Currently, the grocery tax credit is $20 per person for most people and $35 per person for those at least 65 years old.  The Governor's proposal would target the credit to people with lower incomes.  Depending upon circumstances, the credit may reach $90 per person.  As incomes increase, the credit eventually is phased down to zero.  The additional cost of this modification to the grocery tax credit program is $22 million.

 

Although the notion of completely removing the tax on groceries frequently receives attention, it should be noted that there would be a revenue loss of about $200 million.  By reforming tax laws, that revenue could be recovered.  However, there has not been much support for comprehensive tax reform.

 

 

The public education budget has not yet been presented to the Joint Finance and Appropriations Committee, but information is available.  State Superintendent Tom Luna requests a 3% increase in money for teacher salaries, and a 1% increase in money for administrator salaries.  The Governor's request for additional salary money is 5%.  This is consistent with his requests across state agencies.

 

During the State of the State message, Governor Otter mentioned his support for Mr. Luna's request for additional money specified for textbooks and supplies, rural schools, and other programs. The Governor's budget reflects no appropriation in these areas.  However, indications are that Mr. Luna has been given discretion to take from the Governor's proposed salary funds to cover other things he would favor.

 

Statutory requirements dictate the great majority of funds for public schools.  Thus the "discretionary money" in the budget is important to local districts.  For the next school year, the Governor recommends no increase in $ per support unit, while Mr. Luna recommends only a 1% increase.

 

Please let me know if you have specific questions.

 

Shirley Ringo

 

 

 
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