[Vision2020] Pre-Legislative Newsletter

[Rep. Tom Trail]

PRE LEGISLATIVE NEWSLETTER - December 12, 2011



Constituents:

 A legislator's life is always hectic right before the holidays.  We will
be back in session on Monday, January 9, 2012, starting off with the
Governor's State of the State and Budget message.  The past month and
half I've been meeting with 2-3 groups/day in preparation for the next
session.  Now I'd like to outline some of the major issues facing Idaho
citizens that will be covered in the 2012 session.

    1.  Budget  --  We will not be looking at the deep cuts that have been
experienced over the past several years.  For example, this past
session lawmakers cut $35 million from Medicaid and another $62
million from public education to balance the budget.

        It is anticipated that there will be some increased revenues at
the year’s end--June 30, 2012.  The revenues could be as much as
$140-$150 million.  JFAC will be looking at supplemental requests
for this budget including $17 million for the catastrophic health
care fund, $11 million for Health and Welfare, and $1.6 million
for the Department of Corrections.

        As the budget is built, legislators will be looking at what the
growth might be from the prior year.  Agency requests to fill
holes total $142 million and include $21.9 million for public
schools, $34 million for for colleges and universities, $39
million for health and human services, and $2.9 million for
economic development.

        Many agencies that have suffered severe cutbacks hold out hopes
for some new funding to help the damage from some of those severe
cuts of the past.  Idaho ranks second in the U.S. on a percentage
basis of reducing state employees from the payroll.  Many state
employees and teachers have not received any salary increase for
three to four years.

        Realistically, I foresee a top priority of the Legislature to use
surplus funds to build up reserve funds.   The policy of building
up these reserve funds in the past has helped Idaho weather the
continuing depressed economic conditions.  I certainly would like
to see some state funding used to increase support for education
and economic development.

    2.  Taxes  --  With the conservative mood of the Legislature and the
2012 being an election year, I do not foresee any tax increases being
passed.  There may be another attempt to increase the tax on tobacco
sales to help fund the cutbacks in Medicaid; however, the mood of the
Legislature most likely will not be supportive.  Governor Otter has
also stated that we will be looking at a barebones budget and that any
tax increases that come across his desk will probably not be
supported.  I do support the continued efforts of the auditors for the
Idaho Tax Commission in collecting taxes from those corporations who
are not paying their taxes.  I also support the Marketplace Fairness
Act which is being considered by Congress.  This legislation is aimed
at letting states require most online retailers and catalog only
companies to collect sales taxes from customers.  Currently the
failure to be able to do this is unfair to our downtown businessmen 
--  it is simply unfair competition.

    3.  Economy  --  Agriculture continues to be the strongest element of
the Idaho economy with farm gate sales of almost $6 billion in sales. 
Idaho's budget was balanced this year as contrasted with many of our
neighboring states, and the state bonding rating was increased as
contrasted to the national scene (U.S. bonds were downgraded).

       We are still in recession conditions with no bright spots on the
horizon in the near term.  Idaho's unemployment rate is about 8.2%
which is slightly below the national figure.  Roger Madsen,
Director of the Idaho Department of Labor, has sent a letter to
members of the Legislature recommending that we urge our
Congressional delegation to vote against extending unemployment
benefits.  I will oppose this resolution because there are simply
more and more Idaho workers without work and no financial
resources.   The rate of poverty is increasing year by year.  A
recent article indicated that the poverty rate for families in
Latah County was approaching 20%.  In Idaho about 53% of students
in public schools qualify for free and reduced lunches.  This is a
key indicator of poverty.  Ten years ago the rate was down about 20
percent.  We need to concentrate on providing at least the basic
financial support for our Idaho families and put top priority on
supporting the development of small businesses which are the job
creators in the state.

    4.  Redistricting  --  The recommendation of the Second Idaho
Redistricting Committee would create a new district (5) which would
include Latah and Benewah Counties in the new district.  However, Twin
Falls County and seven counties in N. Idaho have filed appeals with
the Idaho Supreme Court claiming the recommendations are unfair to
their constituencies.  The Court will hear the appeals on January 5th.
 This is only about 60 days away from the final filing date for
elected officials for the upcoming campaign.  Many estimate that the
appeals will be denied; however, if the Court upholds an appeal there
will be continued confusion.  The Second Redistricting Committee would
then have to come up with new recommendations.  Time will tell.

 I look forward to receiving your comments and suggestions.  My e mail is
ttrail at moscow.com or ttrail at house.idaho.gov

Thanks,
Rep. Tom Trail