[Vision2020] Legislative Update IX from Rep. Trail

[ttrail at moscow.com]

Constituents:
 
     There is a lot of economic news on many fronts this week.   It looks 
like JFAC will start setting budgets this coming week.   Predictions are 
that we probably get out about mid-April.
 
1.  The Economy  --  Idaho's unemployment rate continues to increase--it 
probably       will be up around 7 percent by April 1st.   Idaho is now 
in the top ten states in terms of the increasing number of foreclosures.

During the past year or so it is apparent that about 20 Moscow businesses 
have closed shop.  The layoffs at Bennett's and Potlatch are also 
indicators of us moving deeper into the recession.  Several businessmen 
told me they understood that Schweitzer Engineering might be considering 
moving to Mexico because of concerns over the Obama administration income 
tax proposals.  I checked with Adina Bielenberg, Schwietzer Public 
Affairs Manager, and she reported that Schweitzer has no plans to 
consider such a move.

There are some interesting facts about the potential impact of the 
Hawkins development on Moscow's economy.   For example, if the megamall 
is built they will have more square footage than all of the Moscow 
business square footage combined.   The impact on the Palouse Mall could 
be dramatic in terms of more businesses closing down, lost jobs, and loss 
of sales tax.   Property taxes would also probably increase.   If the 
Palouse Mall closes down we would lose about $2,000,000 in property tax 
over a ten year period, and since the land the mall sits on belongs to 
the University of Idaho- then a closure of the mall would have an adverse 
negative impact on the University.   Again, I want to caution that the 
above scenario might only happen if and when the Hawkins development 
might come in.   Since the Giant WalMart is being constructed this will 
naturally have a negative impact on Moscow's business community.
                
SB1002 which would provide the means to legalize an agreement between 
Moscow to sell water to the Hawkins development if passed would be 
perfectly legal.  If this was carried forward it would not only harm 
Moscow and Latah County's economy and citizens, but those of any area in 
Idaho that decides to sell Idaho water to another state.  I do not think 
it is wise public policy to support legislation that allows the 
exportation of Idaho water at the expense of and subsidy by Idaho 
citizens -- especially to out of state developments that cost Idaho jobs, 
make Idaho businesses close, lose tax revenues, and increase local 
property taxes.  

                It is interesting to note that Mayor Clay Larkin of Post 
Falls was recently approached by developers with plans to put up some 
major developments on the Washington side of the border, but they wanted 
to buy Post Falls water.   Mayor Lakin said, "We are opposed to SB1002, 
and we are notifying our legislators.  We recently told a group wanting 
to buy water from us "NO".  The time to curtail it is now."

                Many south Idaho legislators are concerned about making 
changes in Idaho water laws.   Las Vegas/Clark County, Nevada, are buying 
water rights up to the Idaho border, and they have clearly indicated that 
in the near future they will be wanting to buy water rights in Idaho.    
The bill is now in the hands of the House Resources and Conservation 
Committee and they will make their decision on Tuesday.   I've heard from 
over 50 constituents including major business owners who all oppose the 
bill.  I believe that the sponsor of the bill had Moscow's best interest 
at heart when the bill was introduced but did not see some of the 
unforeseen consequences.

                If passed, SB1002 would extend the "right to continued 
use" of Idaho's waters to out of state users as long as they pay the 
ordinary charges. A city that availed itself of this opportunity to sell 
Idaho's water to foreign users at a time when the city believed they had 
surplus water available, would find that they could not ever stop the 
flow of Idaho water out of state as long as the out of state users paid 
their ordinary bills, even if the city's supply was diminished by drought 
or shrinking aquifers.  In essence, Moscow would be up a creek.

                 2.  Public Education Budget  --  It appears that the 
Idaho Education Association, Idaho School Board Association, School 
Administrators, the PTA, and other groups have reached agreement on 
future public education funding.  The details of the agreement will be 
made known this coming week.  There is concern that Governor Otter wants 
to hold back $78 million of the stimulus package for FY010 and FY11.  
This is being opposed by many educators and SPI Tom Luna.  One possible 
result would be to shorten the school year by 13 days.   This would 
provide students with about 167 school days as contrasted to 215-240 
school days in most Asian and European countries.  As one legislator 
said, "This has all of the earmarks of the U.S. heading toward becoming a 
Third World Country."   The Governor wants to keep the money in reserve 
in case the recession stretches over the next two years.

                In the past both Senator Schroeder and I have pointed out 
that there are other sources of funding that could help fill the gap.   A 
major effort for tax reform should be called upon.   Senator Schroeder 
and I introduced the Taxpayer Accountability Act and it is being held in 
committee.   It basically calls for an examination of all of the 75 tax 
exemptions granted by the state to see if the state has benefitted by 
granting the exemptions.  If an exemption is found not to be benefitting 
the state then the tax exempt money would flow into the General Fund and 
could be used to fund education programs.  More auditors should be hired 
by the Idaho Tax Commission to go after out of state contractors who owe 
tax.  In past years over $15 million/year has been reclaimed.  The 
process should be made public so that no "sweet heart" deals made in 
private can be made.   These non taxpayers should not receive 
preferential treatment unlike the average Idaho taxpayer. 

This winds up this week's newsletter.   I always like to hear from 
constituents regarding your concerns, ideas, and recommendations.   My e 
mail is ttrail at house.idaho.gov and phone 208-332-1184.


 Representative Tom Trail     


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