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update</title></head><body>
<div>Shirley,</div>
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<div>How will this help or not help the working poor who are not
required to file an income tax return?</div>
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<div>Mark</div>
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<div>At 3:53 PM -0700 1/17/07, Shirley Ringo wrote:</div>
<blockquote type="cite" cite><font
size="-1">Visionaries:</font></blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>Legislative News<br>
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<blockquote type="cite" cite> <br>
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<blockquote type="cite" cite><b>Governor Otter recommends a change in
the grocery tax credit. </b> This is a timely recommendation,
since the sales tax was increased to 6% as a result of legislative
action taken during the special session last August. Currently,
the grocery tax credit is $20 per person for most people and $35 per
person for those at least 65 years old. The Governor’s
proposal would target the credit to people with lower incomes.
Depending upon circumstances, the credit may reach $90 per person.
As incomes increase, the credit eventually is phased down to zero.
The additional cost of this modification to the grocery tax credit
program is $22 million.<br>
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<blockquote type="cite" cite> <br>
</blockquote>
<blockquote type="cite" cite>Although the notion of completely
removing the tax on groceries frequently receives attention, it should
be noted that there would be a revenue loss of about $200 million.
By reforming tax laws, that revenue could be recovered. However,
there has not been much support for comprehensive tax reform.<br>
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<blockquote type="cite" cite><b>The public education budget has not
yet been presented to the Joint Finance and Appropriations Committee,
but information is available.</b> State Superintendent Tom Luna
requests a 3% increase in money for teacher salaries, and a 1%
increase in money for administrator salaries. The Governor’s
request for additional salary money is 5%. This is consistent
with his requests across state agencies.<br>
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<blockquote type="cite" cite> <br>
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<blockquote type="cite" cite>During the State of the State message,
Governor Otter mentioned his support for Mr. Luna’s request for
additional money specified for textbooks and supplies, rural schools,
and other programs. The Governor’s budget reflects no appropriation
in these areas. However, indications are that Mr. Luna has been
given discretion to take from the Governor’s proposed salary funds
to cover other things he would favor.<br>
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<blockquote type="cite" cite> <br>
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<blockquote type="cite" cite>Statutory requirements dictate the great
majority of funds for public schools. Thus the “discretionary
money” in the budget is important to local districts. For the
next school year, the Governor recommends no increase in $ per support
unit, while Mr. Luna recommends only a 1% increase.<br>
</blockquote>
<blockquote type="cite" cite> <br>
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<blockquote type="cite" cite>Please let me know if you have specific
questions.<br>
</blockquote>
<blockquote type="cite" cite><b> </b><br>
</blockquote>
<blockquote type="cite" cite>Shirley Ringo<br>
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<blockquote type="cite" cite> </blockquote>
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