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<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><SPAN
style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%"><?xml:namespace prefix = o ns =
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<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><SPAN
style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%"><FONT face=Calibri>January 21,
2009<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>Visionaries:</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>The Idaho Legislature has been in
session for one and one-half busy weeks.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>At the beginning of each session, a
“Revenue Projection” committee studies trends and makes a prediction concerning
the level of state revenues expected for the upcoming fiscal year.<SPAN
style="mso-spacerun: yes"> </SPAN>This committee consists of some
legislators, the Governor’s Department of Financial Management, Associated
Taxpayers, university economists, and others.<SPAN
style="mso-spacerun: yes"> </SPAN>Their projection is quite important,
because it is usually the number the Joint Finance Committee uses to help
determine the level of spending for the next fiscal year.<SPAN
style="mso-spacerun: yes"> </SPAN>Among the projections from members of
this committee, the estimate from the Governor’s Department of Financial
Management was seemingly fair and conservative. <SPAN
style="mso-spacerun: yes"> </SPAN>Without much explanation, the committee
chose a projection $100 million lower.<SPAN style="mso-spacerun: yes">
</SPAN>While the level of revenues has not been strong, it is problematic to
choose a number too low – since we are forced to balance the budget based upon
that projection, the result may be a budget with even deeper cuts than
necessary.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>The Joint Finance and Appropriations
Committee (JFAC) voted to make the Governor’s holdbacks from the 2009 budget
permanent.<SPAN style="mso-spacerun: yes"> </SPAN>It is instructive to
note what happens to budgets where state dollars are used as matching funds to
leverage federal funds.<SPAN style="mso-spacerun: yes"> </SPAN>2009
holdbacks of $23 million in the Health and Welfare budget resulted in an
additional loss of roughly $30 million (federal funding) to help Idaho’s most
vulnerable citizens.<SPAN style="mso-spacerun: yes"> </SPAN><SPAN
style="mso-spacerun: yes"> </SPAN>As we move ahead into 2010, those
in the Department of Health and Welfare express their determination to use their
funds as efficiently as possible to help struggling families.<SPAN
style="mso-spacerun: yes"> </SPAN>With job loss that has and will occur,
the number of needy families will increase.<SPAN
style="mso-spacerun: yes"> </SPAN>The challenge is
enormous.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>There are definite philosophical
differences on how to proceed in these hard economic times.<SPAN
style="mso-spacerun: yes"> </SPAN>My personal preference is to look for
all creative ways to support K-12 education, and higher education.<SPAN
style="mso-spacerun: yes"> </SPAN>This must be done to help the economy
recover. <SPAN style="mso-spacerun: yes"> </SPAN>Folks who lose jobs should
have education readily accessible to help them prepare for other opportunities.
<SPAN style="mso-spacerun: yes"> </SPAN>The austere budgets currently
proposed for education programs are unacceptable to me, as I expect they are to
most of you. <SPAN style="mso-spacerun: yes"> </SPAN>While we undoubtedly
must tighten our belts, it is my hope that we can agree upon a combination of
using “rainy day funds” and other sources of money to minimize losses to those
programs.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>During the time between the 2008
session and this one, there was an audit of policies and practices of the Idaho
Department of Transportation.<SPAN style="mso-spacerun: yes"> </SPAN>Those
who conducted the study have reported to the Department and to legislators.<SPAN
style="mso-spacerun: yes"> </SPAN>There were a number of suggestions that
should lead to cost savings and better practices for maintaining Idaho’s
roads.<SPAN style="mso-spacerun: yes"> </SPAN>A significant finding was
that our current system of funding is not adequate to maintain the roads we
have.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>Two unpopular policy changes that
were unsuccessfully proposed last year promise to return.<SPAN
style="mso-spacerun: yes"> </SPAN>One involves changes in benefits for
public employee retirees.<SPAN style="mso-spacerun: yes"> </SPAN>The other
involves Superintendent of Public Instruction Tom Luna’s pay for performance
plan.<SPAN style="mso-spacerun: yes"> </SPAN>(iSTARS)<SPAN
style="mso-spacerun: yes"> </SPAN>We’ll watch these
closely.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>Be sure to contact me with your
concerns or suggestions, and I will provide information to you on a regular
basis.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT
face=Calibri>Sincerely,<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><o:p><FONT face=Calibri> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><SPAN
style="FONT-SIZE: 12pt"><FONT face=Calibri>Shirley
Ringo<o:p></o:p></FONT></SPAN></P></FONT></DIV></BODY></HTML>