[Vision2020] Legislative Newsletter 1 from Rep. Trail - Jan 12-16

[ttrail at moscow.com]

LEGISLATIVE NEWSLETTER 1 --JANUARY 12-16, 2009
 
Constituents:
 
The Idaho Legislative session got off to a somber start with Governor 
Otter's State of the State Address.   Coupled with the holdbacks already 
in place for the current fiscal year, the Governor proposed a fiscal year 
2010 budget with an overall 7% reduction.  These reductions ranged all 
the way from 5% for public education to 51% for Parks and Recreation.   
Let us look at the impact on several of the major state programs.
 
 1.  Public Education  --  Public education's budget is not reduced  FY09 
but the Governor proposes a 5% reduction for FY10.   The impact will mean 
that some of the teachers and staff will lose their jobs, and class sizes 
will be increased.  We have a public school reserve fund of about 
$114,000 000.  Some of the reserve funds would be tapped by the Governor 
for FY10  --  approximately 35%.  Personally I'd like to see a much 
larger portion of the reserve fund utilized to reduce the damage.

 2. Higher Education  --  In 2003 Higher Education was hit with a 10% 
hold back.  This meant that many key programs, faculty, and staff were 
lost.  During the past six years many of those programs have been re-
established, but now we are faced with another 10 percent cut.   Students 
will be faced with higher costs for education.

  I asked Legislative Services to run the figures comparing the State's 
contribution to Higher Education in 1988 as compared to 2008.   The 
figures are revealing. In 1998 Universities and Colleges received 15.76% 
of the General Budget.  By 2008 the figure had fallen to 10.3%.   So 
within a 20 year period funding for higher education has fallen 5.73% in 
terms of the percentage allocation compared to the total budget.    It is 
my hope that some of the other reserve funds can be utilize to reduce the 
damage that will occur.
 
 3.  Transportation  --  This is Governor Otter's top priority.   He want 
to raise taxes by some $240 million to improve Idaho's transportation 
infrastructure  --  roads and  bridges.  Everyone agrees that this needs 
to be done; however, a wide coalition across both party lines is opposed 
to increasing fuel taxes and registration fees at this time because of 
the severe economic pressure on Idaho families.  Speaker of the House, 
Representative Lawrence Denney, said that it was more  important to 
support the needs of people than to fix potholes.  That basically echoes 
my sentiments as well.
 
 4.   Economic Overview  --  The Legislative Outlook Committee estimates 
that the economic outlook is about $102 million below that of the 
Governor's projections.   January sales tax returns were down over $14 
million as compared to last year.   Most economists forecast a gradual 
recovery but not beginning until the last of year.   So we just don't 
know how bad it will get.

    Many legislators would like to utilize more of our reserves than the 
Governor has proposed.  I support this initiative.  One can compare it to 
your house burning down.   The fire department comes out but only wants 
to use about half of the water to put out the fire instead of utilizing 
all of it.   Even Steve Ahrens, former head of   IAIC (Idaho Association 
of Industry and Commerce) said that he would utilize the   reserves to 
the maximum.

    Senator. Schroeder and I will be introducing legislation that has 
been talked about numerous times over the past years but could provide 
some additional revenue to the state.   The proposal is to sunset all of 
the 75 sales tax exemptions.   This would then allow the Legislature to 
review each exemption to see if it provided a benefit to the state.   If 
the exemption did not benefit the state and was then repealed it   could 
provide some additional funds for key state programs.   While the idea is 
not new, it could provide the state with another alternative to come up 
with some additional funds without raising taxes.
 
 5.   Legislator Salaries  --  An independent citizens group makes salary 
recommendations for legislators.   This past year they recommended a 5% 
salary increase.  By law this increase went into effect on Dec 1, 2008.   
One of the first pieces of legislation that will be introduced this 
session will be to repeal the increase.  This is in stark contrast to the 
fact that Congress just approved a salary increase for their members.
 
I appreciate constituents comments, recommendations, and suggestions.  
You can contact me at ttrail at house.idaho.gov and my office phone is 208-
332-1184.
 
Representative Tom
Trail

---------------------------------------------
This message was sent by First Step Internet.
           http://www.fsr.com/