[Vision2020] Legislative update Week 2 January 17-22, 2010

Rep. Tom Trail ttrail at moscow.com
Fri Feb 12 21:36:48 PST 2010









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I'll be sending out this week's Newsletter tomorrow


Later in the week I'll send out the 3rd Newsletter.
You can also go to www.infotrail.com/Idaho to see all
of them.
 


Legislative Newsletter II&mdash;January 17-22, 2010
 
Constituents:
 
There were a number of major events that occurred in
the Idaho legislature this week.
 1.  Department of Parks
and Recreation saved from the axe 
--  the story behind the story as Paul
Harvey would say.     Governor
otter proposed to eliminate this agency to save money on the budget;
however, he didn't carefully investigate the history in the creation of
the Department.    In the late 1950's
governor Smylie tried to create a Department of Parks and Recreation
staffed by professionals to manage Idaho state parks.   However, the Legislature refused to support
his initiative.    In 1964 the
Harriman family from New York proposed to give the state 11,000 acres of
prime recreational land located near Henry's lake in eastern Idaho.   Governor Smylie saw this as a chance to
establish the Department of Parks and Recreation.    The agreement signed by the state of
Idaho and the Harriman family called for the establishment of the
Department as one of the key items in the agreement.    Governor Smylie was also concerned that
at some point in the future that a governor would propose eliminating the
Department in lean budget times and that the Harriman agreement would
prevent that move.   Apparently, in
reviewing the agreement, the Idaho Attorney General agreed.
     
It is reassuring that some of our past political leaders had long
range foresight.   My source for this
story is Steve Smylie, the son of Governor Smylie.
    
Locally there is much concern regarding the Dvorshak dam in our
area.   There appears to be some progress
with Parks and Recreation to work with local authorities to resolve the
situation.   There is a rumor that
management of the park may be put out for contract with the private
sector.
 
 2.  Human rights
commissions salvaged  --  the Governor proposed to eliminate the Human Rights
Commission; however, Director Rodger Madsen, Director of the Department of
Labor, said that he could accommodate the commission in his agency and to
provide the necessary financing as well--the source coming from interest
earned from federal funds in a reserve held by the Department.   Director Madsen's father was formerly the
Dean of the College of Agriculture at WSU, and I worked under his
supervision for several years while on the staff at WSU.    Plans to salvage other commissions
slated for the axe are still under consideration.
 
 3.  State board of
education proposes to change Idaho ethic laws  --  the SBOE aims to
undo a law forbidding Idaho  University
presidents' spouses from being fired at the schools.    The board feels that changing the law
would assist in attracting top candidates for Presidential positions and
would assist the spouse of the current ISU President in getting a
job.   Rep. Bob Nonini, House Education
Chair, said it would put Idaho schools at risk for nepotism charges.   Idaho presidents took jobs with annual
salaries of more than $300,000 knowing that their spouses couldn't go to
work on the university payroll.  Nonini said,
&ldquo;Now they want their wives going to work pulling down 70, 80, 90,
100 thousand dollars?  That bothers
me."
     
One constituent wrote...&rdquo;I can faintly hear a university
president say to a department director: I am sorry to inform you, Mr.
Jones, that as a result of budget and fiscal restraints, we are forced to
let you go.  On the bright side, my wife will
be by your office today to introduce herself to her new staff and color
coordinate the furniture. &ldquo;I've heard mixed reaction to the
proposal.
 
 4.  The economy  --  Mike Ferguson,  Governor Otter's economist, predicts that we may
not return to the state revenue level of 2007 until 2015.   Other economists, even the most optimistic,
report we may not reach the 2007 level of funding until 2013.    Some economists say we may be in a
double dip recession similar to the one in 70-71 (remember the saying--the
last one to leave Seattle turn off the lights?). 
Other economists estimate we may be at the low point in the
recession and that it will take 2-3 years of gradual improvement to make
significant strides forward.   Some even
predict that we may be headed to the first step in a depression.    In any event, Idaho will be facing some
significant financial challenges in these coming years.   The only three states with no significant
economic problems are     
North Dakota, Montana, and Wyoming--all with coal and gas
royalties.   There are 8,000 jobs going
begging in North Dakota.
     
Estimates are that Idaho may be facing another $100,000,000
shortfall before the end of the fiscal year.  
Everyone is waiting to see what January tax revenues are.   The worst news is that fiscal years       2011 and 2012 may be
even worse, and that there is a potential 10 percent cut in the 2011
fiscal year if revenues do not improve.    This would have a devastating impact on
programs and services.
     
Unemployment continues to lurk around the 9.0 percent level, but
many citizens have exhausted their benefits and do not show up in the
total unemployment figures.  Our true
unemployment may be in the 11-12 percent range. 
About the only good news is that the state endowment funds did very
well this past year realizing a gain of about $300,000,000.    The PERSI (state retirement) fund
gained 15 percent and retirees will receive a one percent COLA in
March.
 5.  Education --  is public education and higher education in Idaho
headed toward 3rd world status?  This is a
question posed by a constituent.   
Public education continues to get hit with holdbacks and the
promise of further budget cuts.   
The reserves of many school districts are almost depleted.   Some districts have gone to a four day school
week.    In Idaho we require students
to attend 180 days of school per annum.  
Many European and Asian developed countries require students to
attend from 220-240 days per annum.  If our aim
is to prepare students to be competitive in a global economy then it
appears that we have a long way to go.
     
Our institutions of higher learning were esteemed throughout the
world as outstanding universities and colleges for teaching and
research.    Student from around the
world flocked particularly to programs of graduate education.   However, the level in Idaho of state funding
for higher education has fallen from about 18 percent twenty years ago to
barely 9 percent today.   In just this
last fiscal year the University of Idaho was cut back by $22 million in
state funding.   A highly placed
University of Idaho official said that if higher education suffers another
10 percent cut,  it would be a disaster.    Quality programs will be cut and
already many have been eliminated.  Many
outstanding faculty have taken positions at other institutions and many of
these researchers take grant money with them.
     
The University of Idaho has a tremendous economic impact on the
state of Idaho with an economic footprint on the State is about $935
million or about two percent of the State&rsquo;s economy.  As     
President Nellis reports, the State's investment in the University
of Idaho is an excellent investment.  He says,
"With fully 70 percent of all research conducted in the state
originating at the U of I, we believe we are the greatest partner the
state has in fueling both its economic recovery and its future
success."
 
 6   Action
required  -- 
I talked with a member of the Idaho tax commission.    He reported that in November $1.5
million from a reserve fund was transferred to the tax commission to hire
part time tax auditors.   Since that time
they have recovered a net of about $5 million for the state.   The commission estimates they should recover
about a net of $10 million in unpaid taxes by the end of the fiscal
year.   With estimates of over $200
million in unpaid taxes I think it would be appropriate to expand the
program.   The cost - benefit ratio has
always been 1:10.   All tax exemptions
should be reviewed and those judged not to be a value to the state should
be eliminated and the revenues directed to the general state tax
stream.  Other revenue enhancement ideas are
being discussed.
 
 7.  A bit of humor as
i sign off this week:   This headline
caught my eye &ndash; &ldquo;Floor Caves Under Weight Watcher
Weigh-in&rdquo;.   A Weight
Watchers&rsquo; group gathered in Sweden for a routine weigh-in when the
floor underneath then collapsed.   No
dieters were hurt but they probably have extra motivation to shed those
pounds.
Well, that's it for this week.   I'd appreciate your comments and
recommendations.   My e mail is
ttrail at house.Idaho.gov
And my office phone is (208) 332-1184.
 
Rep. Tom Trail
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