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<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>LEGISLATIVE
NEWSLETTER 3--JAN 24-28/2005<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><span
style='mso-spacerun:yes'> </span>This week President White presented the U.
of I. budget to JFAC and to the Senate and House Education Committee.<span
style='mso-spacerun:yes'> </span>He strongly supports the Governor's budget
request of 1<font color=red><span style='color:red'>% <span class=SpellE>CEC</span>
of</span></font> $819,900, the 27th payroll (which comes in about every 11
years) $1,353,700, increased funding for enrollment workload adjustment and
maintenance and operation.<span style='mso-spacerun:yes'> </span>I'm guardedly
optimistic that most of this will be funded.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>1.<span
style='mso-spacerun:yes'> </span>Moscow Chamber of Commerce Visit<span
style='mso-spacerun:yes'> </span>--<span style='mso-spacerun:yes'> </span>The
Chamber will be in town for two days next week and will visit with the
Governor, Director of Commerce and Labor, Secretary of Agriculture, and with
Karl Dreyer of Water Resources.<span style='mso-spacerun:yes'> </span>Dist. 6
legislators will be meeting with the group on several occasions.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>2.<span
style='mso-spacerun:yes'> </span><font color=red><span style='color:red'>Naylor
Farms</span></font> and Other Water Issues<span style='mso-spacerun:yes'>
</span>--<span style='mso-spacerun:yes'> </span>No date has yet been set for
the Naylor Farm Water Right Hearing.<span style='mso-spacerun:yes'> </span>The
County Commissioners will hire their own certified geologist to present
evidence and, hopefully, evidence from the Dept. of Water Resources.<span
style='mso-spacerun:yes'> </span>The fact that the testimony of Naylor's
geologist has been called into question (because of the fact he is not
certified in the State of Idaho) is a positive point.<span
style='mso-spacerun:yes'> </span>The strong community support against the
Naylor application is also very helpful.<span style='mso-spacerun:yes'>
</span><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 color=red face="Courier New"><span style='font-size:10.0pt;font-family:
"Courier New";color:red'><span style='mso-spacerun:yes'> </span>Snake </span></font><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>River
Adjudication and other water issues continue to dominate interest in
Boise.<span style='mso-spacerun:yes'> </span>I've probably received 5 times as
much mail, e mail, calls, and studies about this issue.<span
style='mso-spacerun:yes'> </span>At this point I'm still listening to the
debate.<span style='mso-spacerun:yes'> </span>I'd appreciate your input on
this very important issue to Idaho.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>3.<span
style='mso-spacerun:yes'> </span>Corporate Headquarters Tax Act<span
style='mso-spacerun:yes'> </span>--<span style='mso-spacerun:yes'> </span>The
Governor's plan could attract big business to Idaho but only to big cities.<span
style='mso-spacerun:yes'> </span>He would offer tax breaks and exemptions to
companies that invest at least $50 million in a new facility and bring in 500
high paying jobs over a period of 5 years.<span style='mso-spacerun:yes'>
</span>One fact not widely circulated in the press is that Fortune 500
companies already in Idaho, Micron, Albertsons, etc. could qualify for the
breaks to keep them in Idaho.<span style='mso-spacerun:yes'> </span>I talked
with Mayor Roger Chase, Pocatello, and his comments are representative of those
or Barbara Richardson-Crouch in Latah County.<span style='mso-spacerun:yes'>
</span>The legislation doesn't help Moscow or Latah County.<span
style='mso-spacerun:yes'> </span>The Association of Idaho Cities is proposing
that legislation that would require a company to create 50 jobs (paying a min.
of $40,000), ability to rehabilitate old plants to operate in, and over a five
year period would help cities like Moscow attract more business.<span
style='mso-spacerun:yes'> </span>Sounds like a good idea.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>4.<span
style='mso-spacerun:yes'> </span>Budget<span style='mso-spacerun:yes'>
</span>--<span style='mso-spacerun:yes'> </span>It appears that there is
strong support to downsize the Governor's proposed budget.<span
style='mso-spacerun:yes'> </span>The major areas which will probably be
affected are K-12 education and Medicaid. The one cent sales tax (which brings
in $180 million/year) goes off on July 1st.<span style='mso-spacerun:yes'>
</span>There is probably enough one time money available to get us through the
06 budget, but crunch time will be for the 07 budget.<span
style='mso-spacerun:yes'> </span>Most experts feel that the economy will not
be strong enough to generate the $180 million in tax revenue needed to make up
from the removal of the one cent tax off.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><span
style='mso-spacerun:yes'> </span>I introduced a bill today that would
reduce the sales tax from 5% to 4% and yet realize a net gain to the state of
$60 million as compared to the 6% sales tax intake of $180/year.<span
style='mso-spacerun:yes'> </span>This would be accomplished through
elimination of 8 major tax exemptions and placing services (except medical)
under the 5% sales tax rate.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><span
style='mso-spacerun:yes'> </span>Frankly, I hate to think of next
year.<span style='mso-spacerun:yes'> </span>The last time in a tough budget
year that the legislature made all the cuts from the expenditure side with no
tax increase was in 1952.<span style='mso-spacerun:yes'> </span>This resulted
in the closure of <span class=SpellE>LCSC</span> and <span class=SpellE>Abilion</span>
Normal School.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><span
style='mso-spacerun:yes'> </span>I predict it will be a very long session
next year.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>Your
can contact me at ttrail@house.state.id.us.<span style='mso-spacerun:yes'>
</span><o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><font
size=2 face="Courier New"><span style='font-size:10.0pt;font-family:"Courier New"'>My
desk phone is 332-1260<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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