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<DIV><FONT face=Arial size=2>Shirl, isn't it time to look at the
multitudes of exemptions and possibly repeal all of them, particularly services
(sure, protect funeral services if you have to, since some folks appear to feel
taxing death rites is somehow unbiblical.) </FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Sue Hovey </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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