[Vision2020] Legislative Newsletter I from Rep. Trail (Jan 11-14)]

Rep. Tom Trail ttrail at moscow.com
Fri Feb 5 15:32:14 PST 2010


Due to technical difficulties, my Legislative updates for weeks 1,2, and 3
did not make it to vision2020.  Rather than inundate your mailboxes with 4
in a row I am reposting the Week 1 update right now, the current update
tomorrow, and then in two day increments Week 2 and Week 3.  I apologize
if this causes any inconvenience.


Legislative Newsletter I—January 11-14/2010

Constituents:

     In what may be the highlight of the Idaho Legislative session was the
opening and dedication of the new remodeled Capitol Building.  After
three years of work the job was completed on time and on budget.  The
total cost was $120 million and financed through the sale of bonds
supported by  a tax on tobacco.   The bonds will be paid off in 2023.
  Everyone is delighted in the great job on the Capitol.  The Capitol
still has its classical and traditional look, but the presence of
light in all corners of the building is outstanding.  The two new
underground wings add an additional 50,000 sq. ft.   My office last
year was a  4’ x 5’ cubical!  The new one is 12’x 15’.

     The Governor’s State of the State address did congratulate both BSU
and University of Idaho football teams on their bowl victories.
Frankly, I would have liked to have heard some words about academic
and research work in recognition of our Idaho institutions.  Nothing
was said about our most important industry, Agriculture.   The
University of Idaho, the agribusiness sector, and the Department of
Agriculture, for example, have demonstrated a great example of
working together to continue the operation of the Parma, Tetonia, and
Sandpoint Research Stations.   It would also have been appropriate to
indicate that last year the University of Idaho went from $80
million/year to $90 million/year in research contracts and that BSU
went from $12 million to $11 million.   The University of Idaho also
has 65 National Merit Scholars as compared to about 5 at BSU.

     The state of the Idaho economy may be turning around according to
some economists, but it is hard to ascertain this when you talk to
individual legislators about local economic conditions.   The
unemployment rate hovers around 9.2% but is certainly higher when you
consider those individuals whose benefits have expired.    They are
not even on the radar so a true unemployment rate may be around 12%.
During the past 20 years in north Idaho, for example, the total
number of board feet of timber harvested has dropped from 2 billion
to 1 billion board feet.   The number of Jobs has decreased from
20,000 to 13,000 during the same time span.   Agricultural gate
receipts have dropped to about $5.7 billion last year.  This is down
about 17% compared to the previous year.  Micron earned a profit of
$200 million the past quarter which may be a positive sign in the
technology sector.   However, the majority of legislators complain
that all of the positive signs from D.C. that we have turned the
corner on the economic recovery just isn’t visible here in Idaho as
of yet.

     The Governor did commit $1 million to the Idaho Tax Commission to
hire part time auditors to go after individuals and companies who
have not paid an estimated $300 million in taxes each year.   The Tax
Commission conservatively estimates a return of $6 for every $1
dollar spent on salaries and benefits for the auditors.   Past
efforts have reaped a return of almost 1 to 12.   I certainly support
this effort.  Supporters from both sides of the aisle have advocated
that the $1.8 billion granted in 75 tax exemptions be examined.  This
is a concept that I’ve worked on for a number of years.  Those
organizations need to prove to the State that their exemptions truly
do benefit the state.   I will be introducing legislation to sunset
all exemptions and set up a system to evaluate whether or not
exemptions do or do not benefit the state.   If an exemption is not
benefiting the state then those funds could flow back to the General
Fund to support, for example, education.

The Governor is also recommending phasing out funding for Hispanic
Affairs, human rights, independent living, developmental disabilities and
the deaf and hearing impaired realizing a savings of $2.5 million.   I
disagree with these cuts because they impact programs directed at our some
of our citizens in greatest need.   It is a priority of our government to
provide services for those in greatest need in our society.  The Governor
is also proposing cuts over four years for Idaho Public Television
totaling $1.5 million.

Public schools will be subject to a 1.6 percent holdback or a total of $28
million.   Higher Education will take an additional hit of about $15
million.   During the past year, for example, the University of Idaho lost
about $19 million in state funding.  Since 1980 higher education funding
has decreased from 18% to about 8% of the state budget.   The Governor did
budget $1 million in scholarships for the Idaho Opportunity Scholarship
Program.  Otter said we badly need the best and the brightest of our Idaho
young people to get their educations here and stay for productive and
fulfilling careers.  He also proposed a 0.55% decrease for Community
Colleges.  The Governor did say that when the economy turns around that
Public Education and Higher Education would be the highest priorities to
receive additional funds.

There will be more specifics as we move ahead in the session.
Please send me your ideas and suggestions.

email: ttrail at house.idaho.gov
phone: (208)-332-1184

Rep. Tom Trail








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