ࡱ> EGDJq` {(bjbjqPqP v::f """"rrr " " " " 8       $?hP.r K ^ .""" 8 C``` "8" r8 ` ``Zr`8  zd`Y0` F``DrP v T`s D C ..P  $D"""""" UV-Eye-Opener ________________________________________________________________________ Volume 9, Number 1 January 13, 2006 United Vision for Idaho (208) 331-7028 E-mail: uvirsherman@rmci.net Website: www.uvidaho.org Welcome back to the Eye-Opener! For the 9th legislative season UVI will be bringing you a weekly per-spective on what's happening at the Idaho Statehouse from a progressive point of view. Please pass it on to your friends and colleagues. Let me know when you agree with me and when I am off base too. Roger "I've got some political capital and I'm going to spend it"--Idaho style. If it was your last year in office and you'd been embarrassed by public disclosures of frivolous spending of campaign funds that (at least ethically) you should not have, of bounced checks to your hairdresser, and by scandals involving your appointees and their cozy relations with Idaho's largest corporations, wouldja try to shoot the moon? Seems like that's what Governor Kempthorne decided to do in his annual state of the state address this past Monday night. He's promising wholesale reform of Medicaid, all kinds of new 'get tough on crime' activities, a major parks program, an 'energy assistance' check to everyone who filed or was claimed on the state's income tax and so on. It's a big and scattered agenda. Like the fella who spoke the words that head this paragraph, Dirk seems to be running out of the juice to push it. Invest in this. The Governor seemed to be especially fond of using the word "invest" in his speech, invoking the word more than a dozen times. So where are those new investments? Can $5 million be considered a long term investment in development of community colleges? How about the Simplot riding arena for a couple of million? And then there's the measly $4 million for school building loans rather than the $30 plus million per year proposed by Bob Huntley, the attorney for the school districts and patrons in the recently settled school funding lawsuit. The problem isn't spending, stupid, it's inequity. You'd think with all the activity around property taxes this year that the Governor might have given them a little more attention in his speech this week. Instead he chose to blame local governments and offer a couple of modest reforms helping seniors and people with disabilities. After 12 hearings around the state, a legislative interim committee had proposed significant reforms including expansion of the Homeowner's Exemption and replacement of the Maintenance and Operations levy for public schools, to head off a brewing property tax revolt. These proposals are still on the table but with the Governor joining Representative Dolores Crow of Nampa in focusing the problem around cutting local spending and services, they'd have to be considered on life support. Crow, who heads the powerful House Revenue and Taxation Committee, was quoted on TV news saying that "I've been saying it's the spending all along." That can't be good. Throughout the public hearing process and in UVI's work at the Western Idaho Fair we heard little sentiment for cutting services and a lot of interest in expanding the Homeowner's Exemption. So what would you do with your $50? The Idaho Statesman asked this morning. Kempthorne proposes to provide "energy assistance" to everyone who filed or was claimed on a tax form in 2004. That appears to leave out the lowest income Idahoans who do not file state income tax and probably most need the assistance. But this "rebate" begs other questions. Is it the best use of $63 million? The current energy assistance program run by the Community Action Agencies and which is targeted to low income households, gives out $11 million. In a press conference on Tuesday House and Senate Democrats proposed spending $15 million through the current low income assistance program and targeting assistance to those who most need it. They then proposed using the $48 million for school buildings. Buried in the fine print of presentations I have heard on the budget lately is that despite an apparently booming economy, wages are not keeping up. While the Governor announced that job growth and business growth put us among the top 4 states, Bob Fick, now of the Idaho Department of Commerce and Labor, reported to a joint committee charged with making revenue projections, that Idaho wages are over 9% lower than the national average. Our wages per capita were 42nd in 2000. In 2004 we were at 46th. Too many of the Legislatures economic development strategies of late have been focused on tax breaks for corporationswith little to show for it. Some legislators have begun to talk about raising the minimum wage by a dollar. It would at least be a step in the right direction. Wowee, zowee, that was fast! Today the Joint Finance and Appropriations Committee (JFAC) approved two major initiatives in the Governors budget plan. They voted to give state employees an immediate merit-based raise averaging 3%. While the immediate raise is a good step, the committee on employee compensation had recommended a raise of at least 3.7% to allow state employees to catch up with professionals in the private sector. The Democrats had proposed 4%. Todays vote was strategic making it difficult for SEIU and the Public Employees Association to push for the higher numbers. In addition JFAC voted to deposit $70 million in the Rainy Day Fund--$3 million more than the Governors recommendation and about as high as allowed by law. Over time we have become convinced that keeping reserves of at least 5% (now the maximum allowed) help to even out the rough spots in the economy and keep vital services whole. Just one more way our health care system is failing us. At the end of that JFAC meeting, they held their first actual budget hearing of the session, hearing a report from Blake Hall, administrator of the Catastrophic (CAT) Fund that pays medical claims over $5,000 for people whose bills are paid for by their countys welfare program. Hall is a long time Republican operative and a member of the State Board of Education. The state has picked up an increasing share of the CAT fund over the years. This year the Governor has proposed to raid the Millennium Fund (an endowment from the Tobacco Settlement money) and pay for it entirely from those funds. This would complete the process that began almost immediately of moving the tobacco monies to general fund needs making them unavailable for the anti-smoking work they were intended for. Interestingly the Governor does not seem to have much support for this proposal, which is opposed by the counties in addition to a variety of health care groups. Failing health care II. The Governors staff began the process this week of winning Legislative support for Kempthornes plan for a massive restructuring of the Medicaid program that he first announced in November. It is primarily a plan for managing the utilization of servicesa task the Department of Health and Welfare has found hard to pull off. Many advocates believe that the central idea in the plan--dividing the program into 3 distinct plans for seniors, people with disabilities and children and parents--is unnecessary and administratively cumbersome. Nearly everyone believes that Medicaid, and the health care system, need to be reformed. Too bad this plan is an administrators dream and a consumers nightmare. Give this guy the Ben Franklin Award. One of the most heinous pieces of legislation to come down the pike in recent years has been dubbed the Developers Discount because of the bonus it has given to prospective land developers around Tamarack Resort who get taxed at agricultural rates. Ronn Julian, a resident of Cascade, has made getting this bill repealed his personal mission. He notes that half of the people getting this break live out of state and clearly have no plans of farming the ground theyve invested in. He also points out that the Governors 14 acres are assessed at $1000 while Ronns acre in Cascade is assessed at over $100,000 (minus improvements)! This tenacious citizen was making the rounds of the Statehouse this week to build support for repeal. 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