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<DIV><FONT face=Arial size=2>Shirley:</FONT></DIV>
<DIV><FONT face=Arial size=2>Do you see any opportunity here to eliminate some
of the sales tax exemptions -- as an alternative to further cuts or tax
increases?</FONT></DIV>
<DIV><FONT face=Arial size=2>BL</FONT></DIV>
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style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=ringoshirl@moscow.com href="mailto:ringoshirl@moscow.com">Shirley
Ringo</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=vision2020@moscow.com
href="mailto:vision2020@moscow.com">vision2020@moscow.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Tuesday, September 22, 2009 9:55
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [Vision2020] Idaho's budget -
Governor visits Latah County</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial size=2>Visionaries:</FONT></DIV>
<DIV>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>You have
read about Idaho’s revenue shortfalls.<SPAN style="mso-spacerun: yes">
</SPAN>Governor Otter has asked agency directors to tell what cuts they would
make in the event of a budget holdback.<SPAN style="mso-spacerun: yes">
</SPAN>He has asked them to be clear about how their programs would be
affected.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>On
Wednesday, September 16, I attended a meeting in which the Governor discussed
issues related to the budget.<SPAN style="mso-spacerun: yes">
</SPAN>The dollar amounts for holdbacks of 6% and 3% for each agency were
provided.<SPAN style="mso-spacerun: yes"> </SPAN>Governor Otter has
indicated that he will not consider a tax increase.<SPAN
style="mso-spacerun: yes"> </SPAN>He has expressed a willingness to
recommend using approximately half of remaining reserve funds, but significant
holdbacks would still be necessary.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>Budgets set
in the most recent legislative session can be described as austere.<SPAN
style="mso-spacerun: yes"> </SPAN>It might be noted that leaders in
other states are considering ideas such as an income tax surcharge on
individuals with higher incomes to gain revenue to protect vital
programs.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>In 2008,
the Grocery Tax Credit was increased to $30/person for some, $50 for
others.<SPAN style="mso-spacerun: yes"> </SPAN>(More for those of age 65
or older.)<SPAN style="mso-spacerun: yes"> </SPAN>These amounts are to
increase by $10 per year until they reach the amount of $100 per person.<SPAN
style="mso-spacerun: yes"> </SPAN>The cost of that increase for next
year is about $15.5 million dollars. <SPAN
style="mso-spacerun: yes"> </SPAN>There have been discussions about
freezing the buildup of the grocery tax credit until state revenues are
stronger.<SPAN style="mso-spacerun: yes"> </SPAN>(Governor Otter has not
said he would support such a move. ) </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>In 2006, a
majority of legislators voted to shift mandatory property tax support for
public schools to the general funds.<SPAN style="mso-spacerun: yes">
</SPAN>This requires public schools to compete with other entities for those
monies.<SPAN style="mso-spacerun: yes"> </SPAN>At the time, the promise
was to “protect education” by raising the sales tax from 5% to 6%.<SPAN
style="mso-spacerun: yes"> </SPAN>The notion of increasing the grocery
tax credit helps those who would struggle with the regressive sales tax.<SPAN
style="mso-spacerun: yes"> </SPAN>The cost of the higher grocery tax
credit erodes about half of the state revenue gained by raising the sales tax
to protect education.<SPAN style="mso-spacerun: yes"> </SPAN></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><B
style="mso-bidi-font-weight: normal"><FONT face=Calibri>What would you
recommend to handle the revenue shortfall?<SPAN
style="mso-spacerun: yes"> </SPAN>Further reductions of agency budgets,
including K-12 and higher education?<SPAN style="mso-spacerun: yes">
</SPAN>Use all or part of the reserve funds?<SPAN
style="mso-spacerun: yes"> </SPAN>Find ways to increase revenue?<SPAN
style="mso-spacerun: yes"> </SPAN>A combination of these
ideas?<o:p></o:p></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>Governor
Otter will be in Kendrick tomorrow (September 23) from 9 AM to 3 PM.<SPAN
style="mso-spacerun: yes"> </SPAN>He will be at the Kendrick fire
station – adjacent to the city park.<SPAN style="mso-spacerun: yes">
</SPAN>This is your opportunity to voice your opinion directly to
him.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>Shirley
Ringo (883-1005, 301-2272)</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri>Please
contact me if you have questions.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><o:p><FONT
face=Calibri> </FONT></o:p></P></DIV>
<P>
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