[Vision2020] Idaho's budget - Governor visits Latah County

[Bill London]

Shirley:
Do you see any opportunity here to eliminate some of the sales tax exemptions -- as an alternative to further cuts or tax increases?
BL
  ----- Original Message ----- 
  From: Shirley Ringo 
  To: vision2020 at moscow.com 
  Sent: Tuesday, September 22, 2009 9:55 AM
  Subject: [Vision2020] Idaho's budget - Governor visits Latah County


  Visionaries:
  You have read about Idaho's revenue shortfalls.  Governor Otter has asked agency directors to tell what cuts they would make in the event of a budget holdback.  He has asked them to be clear about how their programs would be affected.

  On Wednesday, September 16, I attended a meeting in which the Governor discussed issues related to the budget.   The dollar amounts for holdbacks of 6% and 3% for each agency were provided.  Governor Otter has indicated that he will not consider a tax increase.  He has expressed a willingness to recommend using approximately half of remaining reserve funds, but significant holdbacks would still be necessary.

  Budgets set in the most recent legislative session can be described as austere.  It might be noted that leaders in other states are considering ideas such as an income tax surcharge on individuals with higher incomes to gain revenue to protect vital programs.

  In 2008, the Grocery Tax Credit was increased to $30/person for some, $50 for others.  (More for those of age 65 or older.)  These amounts are to increase by $10 per year until they reach the amount of $100 per person.  The cost of that increase for next year is about $15.5 million dollars.  There have been discussions about freezing the buildup of the grocery tax credit until state revenues are stronger.  (Governor Otter has not said he would support such a move. ) 

  In 2006, a majority of legislators voted to shift mandatory property tax support for public schools to the general funds.  This requires public schools to compete with other entities for those monies.  At the time, the promise was to "protect education" by raising the sales tax from 5% to 6%.  The notion of increasing the grocery tax credit helps those who would struggle with the regressive sales tax.  The cost of the higher grocery tax credit erodes about half of the state revenue gained by raising the sales tax to protect education.  

  What would you recommend to handle the revenue shortfall?  Further reductions of agency budgets, including K-12 and higher education?  Use all or part of the reserve funds?  Find ways to increase revenue?  A combination of these ideas?

  Governor Otter will be in Kendrick tomorrow (September 23) from 9 AM to 3 PM.  He will be at the Kendrick fire station - adjacent to the city park.  This is your opportunity to voice your opinion directly to him.

  Shirley Ringo (883-1005, 301-2272)

  Please contact me if you have questions.

   



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