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<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri
size=3>Friends:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>One of
the early and critically important actions of the Joint Finance and
Appropriations Committee involves the official projection of general fund
revenue for fiscal years 2010 and 2011.<SPAN style="mso-spacerun: yes">
</SPAN>This is an action with great political implications.<SPAN
style="mso-spacerun: yes"> </SPAN>Those who are extremely conservative and
push for reduced state-funded programs will try for a low number.<SPAN
style="mso-spacerun: yes"> </SPAN>On Friday, February 12, JFAC will
probably take action.<SPAN style="mso-spacerun: yes"> </SPAN>In all
probability, the projection for FY 2010 will be 3% below the Governor’s
recommendation, and the projection for FY 2011 will be 6% below the Governor’s
recommendation.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>The
Republican majority is determined to deal with reduced revenue by using reserve
funds and cutting support for programs.<SPAN style="mso-spacerun: yes">
</SPAN>I believe a more balanced approach would also require certain revenue
enhancement. </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>People
in District 6 and around the state need to decide whether the narrow approach
taken by the Republican majority takes us in the right direction.<SPAN
style="mso-spacerun: yes"> </SPAN>Here are some of the results:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Phase out state support for Public Television, the Human Rights
Commission, the Hispanic Commission, the Independent Living Council, the
Developmental Disabilities Council, the Deaf and Hard of Hearing Council, and
the Digital Learning Academy.<SPAN style="mso-spacerun: yes"> </SPAN>(JFAC
will probably not act on these recommendations unless the appropriate policy
committees concur.)</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Medicaid will charge user fees for parents of children with
disabilities.<SPAN style="mso-spacerun: yes"> </SPAN>(These fees are to be
on a sliding scale, based upon gross income.<SPAN
style="mso-spacerun: yes"> </SPAN>This is problematic because of
expenditures parents must make to provide for the special needs of their
children.)</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Greatly reduced support for State Parks.<SPAN
style="mso-spacerun: yes"> </SPAN>This requires a business model that has
not been successful in other states and a reduction of 25
positions.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Further reductions in support for Higher Education, requiring furloughs,
cuts in programs and higher student fees.<SPAN style="mso-spacerun: yes">
</SPAN>Proposed cuts in Professional/Technical Education could result in the
need to return millions of dollars to the federal government.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Reduced support for Agricultural Research and Extension Service may force
closure of a number of Research and Extension Centers.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Deeper cuts will challenge the Department of Corrections.<SPAN
style="mso-spacerun: yes"> </SPAN>The prison population is growing.<SPAN
style="mso-spacerun: yes"> </SPAN>Further cuts will require furloughs and
add challenges with respect to supervision.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>It is
clear that reductions in spending are required, and we must be creative in
seeking efficiencies.<SPAN style="mso-spacerun: yes"> </SPAN>However, cuts
can be damaging.<SPAN style="mso-spacerun: yes"> </SPAN>Loss of jobs for
state employees and cuts in some services will have serious effects on the
private sector and their ability to create and sustain employment.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>I will
propose these measures to enhance revenue:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>5% surcharge on income tax for those with more than $50,000 taxable
income.<SPAN style="mso-spacerun: yes"> </SPAN>(For example, a family of
four earning approximately $75,000 would have taxable income over $50,000.<SPAN
style="mso-spacerun: yes"> </SPAN>The 5% surcharge would add about $164 to
their yearly tax.)</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Partially freeze growth of the Grocery Tax Credit.<SPAN
style="mso-spacerun: yes"> </SPAN>(The credit has been increasing by $10
per person per year, with the goal of reaching $100 per person per year.)<SPAN
style="mso-spacerun: yes"> </SPAN></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Hire additional compliance officers to recover unpaid taxes owed to the
state.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>Impose an additional 50-cent per pack tax on
cigarettes.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT size=3><FONT
face=Calibri><SPAN
style="mso-tab-count: 1">
</SPAN>(One of my colleagues has a proposal to collect taxes on internet
sales.)</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>The
Governor opposes the partial freeze of the grocery tax credit saying, “This is a
promise we must keep.”<SPAN style="mso-spacerun: yes"> </SPAN>In 2006, we
held a special session at the call of acting Governor James Risch.<SPAN
style="mso-spacerun: yes"> </SPAN>The purpose was to shift support of
public education from an automatic property tax assessment to the sales
tax.<SPAN style="mso-spacerun: yes"> </SPAN>To confirm their support of
this shift, citizens were asked to vote on raising the sales tax from 5% to 6%
for the purpose of “protecting education.”<SPAN style="mso-spacerun: yes">
</SPAN>Approximately two years later, legislators voted to increase the grocery
tax credit in stages.<SPAN style="mso-spacerun: yes"> </SPAN>When the
incremental changes are complete, it will cost the state about half of the money
gained by the 6% sales tax to “protect education.”<SPAN
style="mso-spacerun: yes"> </SPAN>It would seem that we broke our promise
to the people when we raided funds available to education to pay for a new
program.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>I will
appreciate hearing from you regarding your questions or opinions.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri
size=3>Representative Shirley Ringo</FONT></P></FONT></DIV></BODY></HTML>