[Vision2020] LEGISLATIVE NEWSLETTER II January 18-23/2009

[ttrail at moscow.com]

LEGISLATIVE NEWSLETTER II   January 18-23/2009
 

Constituents:
 
The second week of the 60th Idaho Legislature has come to a close.  The 
Revenue Projection committee's estimate of future state revenues came in 
about $105 million lower than that of the Governor's projections.   I 
thought the Governor's projections were reasonable.    If the Committee's 
projections are accepted by JFAC this will mean deeper budget cuts than 
already laid out in the Governor's budget.
 
 1.  Are there any extra pockets of money out there?   In tough economic 
times everyone is looking for that extra dollar.   I work out daily at 
the YMCA and had the chance to talk to an employee of the Idaho State Tax 
Commission.   This individual reported to me that due to the cutbacks 
that a number of part time tax auditors were released. These auditors go 
after out of state businesses that are not headquartered in Idaho but do 
business here.   Often these businesses have not paid Idaho taxes.  This 
past year the part time auditors brought in $7 million and their salaries 
and benefits were one million dollars or a positive gain of $6 million 
for the state treasury.   So why did we get rid of personnel who are 
recovering a positive cash flow for the state?  Good question.   Idaho 
also loses about $3 million/year in federal highway funds because we do 
not require motorcyclists to wear helmets  --  Pride before dollars it 
would seem.  In just those two cases there could be about $10 million 
that could help fund education and other important programs.
 
 2.  Obama Infrastructure Bailout Plan  --  First of all it is my 
understanding that our Congressional Delegation will be voting against 
the Bailout Plan; however, it is evident if the legislation passes that 
Idaho will have almost $4 billion in "shovel ready" to go projects that 
will be submitted for consideration.   Idaho counties and cities have 
almost $2 billion ready in requests, and Governor Otter has many state 
requests with the emphasis on transportation needs.  Shovel ready 
projects are those that would be ready to start within a 9 month period.  
These projects would obviously create additional jobs which are badly 
needed to stimulate the economy.  In reality if Idaho receives $200-$300 
million in these bailout funds we will probably be lucky. My guess is 
that much of those funds will go toward highway projects. 
 
 3.  Community Action Programs  --  I serve on the CAP Region II Board 
headquartered in Lewiston.   Community Action Programs serve various 
needs of low income citizens, i.e. food banks, weatherization programs, 
energy assistance, etc. The demand for food from the food banks has 
almost doubled this year and donations are down.   CAP helps low income 
citizens weatherize about 400 homes a year in the region, and this may 
double this year.  We understand that under the Obama bailout plan that 
funds would be provided to winterize about 1,000,000 homes a year in the 
U.S.   This would just about increase the number of homes to be 
winterized in Region II to 2,000/year.
  Avista is providing about $300,000 a year in Energy and weatherization 
assistance in N. Idaho.  Legislation will be introduced which would allow 
Idaho Power to participate in the same type of program.   There would be 
no mandate here, but simply legislation which would update the statutes 
to allow Idaho Power to voluntarily participate in this type of program.
 
 4.   Medicaid Cuts  --  I've received many calls from families with 
concerns over  Medicaid cuts.   These are in the area of mental health 
and individuals with disabilities.   One example is the grandmother near 
Potlatch who grandson is autistic and the amount of therapy reduced from 
30 to 22 hours/ week.   These cuts may help the budget balancing, but may 
be costly in the long term.   A number of experts indicate that reducing 
the amount of therapy may actually cost the state more in the long run.   
For example, if the mental health treatment for an adult is reduced it 
may be insufficient to stabilize his/her condition.   These individuals 
may end up in hospitals or even in some cases jail which would cost the 
state more in the long run. I'm opposed to these types of cuts.
 
I appreciate hearing from you.  My legislative e mail is 
ttrail at house.idaho.gov and
office phone #208-332-1184.
 
Representative Tom Trail
 
 






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