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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>NEWS FROM THE LEGISLATURE</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>My position on the Joint Finance Committee continues to be interesting
and challenging.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Projecting revenues becomes a significant piece of budget building.<SPAN
style="mso-spacerun: yes"> </SPAN>The “Economic Outlook Committee” makes a
recommendation.<SPAN style="mso-spacerun: yes"> </SPAN>Then the Joint
Finance Committee decides whether or not to accept the committee’s revenue
projection.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>There is a significant disadvantage to “low-balling” the revenue
projection.<SPAN style="mso-spacerun: yes"> </SPAN>It results in
officially unexpected money not being built into the base for planning
budgets.<SPAN style="mso-spacerun: yes"> </SPAN>As with this year, those
dollars are treated as surplus.<SPAN style="mso-spacerun: yes"> </SPAN>The
surplus mentality is usually accompanied by calls for one-time-spending.<SPAN
style="mso-spacerun: yes"> </SPAN>It offers an excuse for those who reject
long term commitment to programs such as Head Start, <?xml:namespace prefix =
st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:place
w:st="on"><st1:PlaceName w:st="on">Community</st1:PlaceName> <st1:PlaceName
w:st="on">Treatment</st1:PlaceName> <st1:PlaceType
w:st="on">Centers</st1:PlaceType></st1:place>, and others that improve quality
of life and save money in the future. </FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The Governor’s State-of-the-State message definitely reflects the
ramifications of low revenue projections, and use of “surplus” dollars.<SPAN
style="mso-spacerun: yes"> </SPAN>Idahoans are aware that in recent years,
there has been anemic support for public schools, higher education, teacher and
public employee pay, to name a few.<SPAN style="mso-spacerun: yes">
</SPAN>We know there is concern about providing appropriate property tax relief,
and that courts are mandating a fair system of state support for public school
buildings.<SPAN style="mso-spacerun: yes"> </SPAN>While the Governor
addressed salaries for public employees and support for schools to an extent, he
dropped the ball on property tax relief and public school buildings.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>One of the Governor’s proposals for use of one-time moneys, giving each
person a $50 “energy rebate”, is failing to get much support from either
political party so far.<SPAN style="mso-spacerun: yes"> </SPAN>The cost of
this program would exceed $60,000,000.<SPAN style="mso-spacerun: yes">
</SPAN>(I have heard support only from the Governor’s staff and Jim Fischer of
the Lewiston Tribune so far, but there may be more.)<SPAN
style="mso-spacerun: yes"> </SPAN>Instead, the Democrats propose directing
meaningful support for energy costs and weatherization to low income individuals
who truly need the help.<SPAN style="mso-spacerun: yes"> </SPAN>This
targeted assistance would cost about $20 million.<SPAN
style="mso-spacerun: yes"> </SPAN>The difference in cost between our
program and that of the Governor would be used to enhance public school
salaries, and to launch a program to increase state support for school
construction.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>I will keep the flow of information coming.<SPAN
style="mso-spacerun: yes"> </SPAN>Please keep me informed about your
thoughts.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> <FONT face=Arial
size=2>Shirley</FONT></FONT></o:p></P></FONT></DIV></BODY></HTML>