[Vision2020] Legislative Report, Feb. 6

[Donovan Arnold]

Rep Ringo,
 
Thank you for keeping us updated. 
 
My opinion is to just cut across the board, everything by 10 percent, unless you can get 2/3 of  everyone and the governor to agree to eliminate some programs completely or more drastically to avoid cutting another more important program.
 
I would cut salaries by 10% rather than letting people go to the unemployment lines costing the state more money in other ways. 
 
I don't think raising taxes on income is the answer. $75,000 a year income does seem like a lot. However, understand that about 30-40% of young families get some financial support from their babyboomers parents that make that $75,000. So taxing will hurt all of Idaho.
 
Eliminating the tax credit on food is not a good idea either. Taxing food is very regressive taxation on the poorest of the poor. Most of Idaho's poor are in fact children. Taxing food out the mouths of children is a grave disservice to society. 
 
I do think it makes sense to tax alcohol and tabacco, as well as some services such as message, hair, nail, and luxury transportation.
 
The problem with taxing internet sales is it would cost more to regulate it than you would probably collect. 
 
I would review and repeal tax exemptions that are ineffective. However, I would be careful not to eliminate jobs in the process which would decrease revenues and increase expendatures at the same time. 
 
Thanks for listening,
 
Donovan Arnold 
 
 
 
 
 
 


--- On Sun, 2/7/10, Shirley Ringo <ringoshirl at moscow.com> wrote:


From: Shirley Ringo <ringoshirl at moscow.com>
Subject: [Vision2020] Legislative Report, Feb. 6
To: vision2020 at moscow.com
Date: Sunday, February 7, 2010, 12:01 AM






Friends:
One of the early and critically important actions of the Joint Finance and Appropriations Committee involves the official projection of general fund revenue for fiscal years 2010 and 2011.  This is an action with great political implications.  Those who are extremely conservative and push for reduced state-funded programs will try for a low number.  On Friday, February 12, JFAC will probably take action.  In all probability, the projection for FY 2010 will be 3% below the Governor’s recommendation, and the projection for FY 2011 will be 6% below the Governor’s recommendation.
The Republican majority is determined to deal with reduced revenue by using reserve funds and cutting support for programs.  I believe a more balanced approach would also require certain revenue enhancement. 
People in District 6 and around the state need to decide whether the narrow approach taken by the Republican majority takes us in the right direction.  Here are some of the results:
                Phase out state support for Public Television, the Human Rights Commission, the Hispanic Commission, the Independent Living Council, the Developmental Disabilities Council, the Deaf and Hard of Hearing Council, and the Digital Learning Academy.  (JFAC will probably not act on these recommendations unless the appropriate policy committees concur.)
                Medicaid will charge user fees for parents of children with disabilities.  (These fees are to be on a sliding scale, based upon gross income.  This is problematic because of expenditures parents must make to provide for the special needs of their children.)
                Greatly reduced support for State Parks.  This requires a business model that has not been successful in other states and a reduction of 25 positions.
                Further reductions in support for Higher Education, requiring furloughs, cuts in programs and higher student fees.  Proposed cuts in Professional/Technical Education could result in the need to return millions of dollars to the federal government.
                Reduced support for Agricultural Research and Extension Service may force closure of a number of Research and Extension Centers.
                Deeper cuts will challenge the Department of Corrections.  The prison population is growing.  Further cuts will require furloughs and add challenges with respect to supervision.
It is clear that reductions in spending are required, and we must be creative in seeking efficiencies.  However, cuts can be damaging.  Loss of jobs for state employees and cuts in some services will have serious effects on the private sector and their ability to create and sustain employment.
I will propose these measures to enhance revenue:
                5% surcharge on income tax for those with more than $50,000 taxable income.  (For example, a family of four earning approximately $75,000 would have taxable income over $50,000.  The 5% surcharge would add about $164 to their yearly tax.)
                Partially freeze growth of the Grocery Tax Credit.  (The credit has been increasing by $10 per person per year, with the goal of reaching $100 per person per year.)  
                Hire additional compliance officers to recover unpaid taxes owed to the state.
                Impose an additional 50-cent per pack tax on cigarettes.
                (One of my colleagues has a proposal to collect taxes on internet sales.)
The Governor opposes the partial freeze of the grocery tax credit saying, “This is a promise we must keep.”  In 2006, we held a special session at the call of acting Governor James Risch.  The purpose was to shift support of public education from an automatic property tax assessment to the sales tax.  To confirm their support of this shift, citizens were asked to vote on raising the sales tax from 5% to 6% for the purpose of “protecting education.”  Approximately two years later, legislators voted to increase the grocery tax credit in stages..  When the incremental changes are complete, it will cost the state about half of the money gained by the 6% sales tax to “protect education.”  It would seem that we broke our promise to the people when we raided funds available to education to pay for a new program.
I will appreciate hearing from you regarding your questions or opinions.
Representative Shirley Ringo
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