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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>First Extraordinary Session of the Fifty-eighth Legislature</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Visionaries</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman">I will provide two reports on the Extraordinary Session
of the Idaho Legislature.<SPAN style="mso-spacerun: yes"> </SPAN>This
particular report is intended to give an overview of the process, and details
relating to it.<SPAN style="mso-spacerun: yes"> </SPAN></FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman">Our temporary Governor, James Risch, began preparations
for this session soon after the Fifty-eighth Legislature completed its
business.<SPAN style="mso-spacerun: yes"> </SPAN>The topic involved funds
for public schools, and a tax shift for education funding from a .3% assessment
on property values to a 1% increase in the sales tax.<SPAN
style="mso-spacerun: yes"> </SPAN></FONT></FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Legislative Democrats believe there needs to be property tax relief, but
they did not, as a group, embrace this particular tax shift.<SPAN
style="mso-spacerun: yes"> </SPAN>As a compromise, they offered the idea
that the .3% tax shift go to homeowners only at this time, with no immediate
increase in the sales tax.<SPAN style="mso-spacerun: yes"> </SPAN>Among
the points of discussion:</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt 0.5in"><FONT
face="Times New Roman" size=3>The cost of delivering property tax relief to
homeowners only is about one-half the “surplus,” or unused funds.<SPAN
style="mso-spacerun: yes"> </SPAN>The Democrats advocate no increase in
the sales tax to cover this in future years until the ongoing strength of the
economy becomes clearer.</FONT></P>
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face="Times New Roman" size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt 0.5in"><FONT
face="Times New Roman" size=3>The shift proposed by the Governor goes to all who
pay property tax.<SPAN style="mso-spacerun: yes"> </SPAN>Large companies
that already receive large tax breaks get another as a result of this
legislation.<SPAN style="mso-spacerun: yes"> </SPAN>This part of the
Governor’s plan needs further study.</FONT></P>
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face="Times New Roman" size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt 0.5in"><FONT
face="Times New Roman" size=3>For years, polls have shown that citizens are
willing to raise their taxes, specifically to support education.<SPAN
style="mso-spacerun: yes"> </SPAN>In November, Proposition One will be one
the ballot to formally measure the enthusiasm for such targeted support for
education.<SPAN style="mso-spacerun: yes"> </SPAN>Signatures to place the
issue on the ballot were collected with ease.</FONT></P>
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face="Times New Roman" size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt 0.5in"><FONT
face="Times New Roman" size=3>The decision to raise the sales tax by 1%
definitely complicates this issue for voters.<SPAN
style="mso-spacerun: yes"> </SPAN>The special session decision represents
a tax shift, not more money for education.</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>Republicans called the Democrat plan unconstitutional, although Democrats
have expert opinions that it is not.</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>Former Idaho Chief Justice Robert Huntley questioned the legality of
confining the topic of a special session to one bill only.</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 process was fascinating, with almost all tricks of the trade being
exposed.</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 legislation was introduced in House Revenue and Taxation
Committee, chaired by Dolores Crow.<SPAN style="mso-spacerun: yes">
</SPAN>Although there was a big crowd of potential testifiers and interested
observers, Crow refused to move the meeting to a room with sufficient space to
accommodate the crowd.<SPAN style="mso-spacerun: yes"> </SPAN>(With
limited seating, she saved space in the back row for family members.)</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>Crow limited debate to two favorable presentations on each side.<SPAN
style="mso-spacerun: yes"> </SPAN>No negative debate was allowed.<SPAN
style="mso-spacerun: yes"> </SPAN>Many who had extended themselves
considerably to travel and present testimony were not allowed to
speak.</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>On the Senate and House floors, there were no limits on debate.<SPAN
style="mso-spacerun: yes"> </SPAN>Particularly in the Senate,
parliamentary procedure was explored thoroughly. <SPAN
style="mso-spacerun: yes"> </SPAN>Motions to amend the Governor’s bill were
defeated along strict party lines in both House and Senate.<SPAN
style="mso-spacerun: yes"> </SPAN>The exception was Senator Schroeder, who
wanted to amend to bill to clearly protect funding for education. In the end, we
had the predicted result – the Governor’s plan was adopted.<SPAN
style="mso-spacerun: yes"> </SPAN>His votes were counted before the
session was called.</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>Voters will have a fascinating choice facing them in November.<SPAN
style="mso-spacerun: yes"> </SPAN>The Governor’s bill includes placing the
following question on the ballot in November:</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>“Should the State of <?xml:namespace prefix = st1 ns =
"urn:schemas-microsoft-com:office:smarttags" /><st1:State w:st="on"><st1:place
w:st="on">Idaho</st1:place></st1:State> keep the property tax relief adopted in
August 2006, reducing property taxes by approximately $260 million and
protecting funding for public schools by keeping the sales tax at
6%?”</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>and Proposition 1:<SPAN style="mso-spacerun: yes">
</SPAN>Proposition 1 directs that the sales tax be raised 1% with that revenue
going to education.<SPAN style="mso-spacerun: yes"> </SPAN>If the sales
tax has already been raised, it directs the legislature to identify another
stream of revenue to provide equivalent funds.</FONT></P>
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size=3></FONT> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>More to come ... </FONT></P>
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size=3></FONT> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Shirley Ringo</FONT></P>
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size=3> </FONT></o:p></P>
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face="Times New Roman" size=3> </FONT></o:p></P>
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