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<p class="MsoNormal">I'll be sending out this week's Newsletter tomorrow
<br /></p>
<p class="MsoNormal">Later in the week I'll send out the 3rd Newsletter.</p>
<p class="MsoNormal">You can also go to www.infotrail.com/Idaho to see all
of them.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><br /></p>
<p class="MsoNormal">Legislative Newsletter II—January 17-22, 2010</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Constituents:</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">There were a number of major events that occurred in
the Idaho legislature this week.</p>
<p class="MsoNormal"><strong style=""><u><span
style=""> </span>1.<span style=""> </span>Department of Parks
and Recreation saved from the axe</u></strong><span style="">
</span>--<span style=""> </span>the story behind the story as Paul
Harvey would say.<span style=""> </span>Governor
otter proposed to eliminate this agency to save money on the budget;
however, he didn't carefully investigate the history in the creation of
the Department.<span style=""> </span>In the late 1950's
governor Smylie tried to create a Department of Parks and Recreation
staffed by professionals to manage Idaho state parks.<span
style=""> </span>However, the Legislature refused to support
his initiative.<span style=""> </span>In 1964 the
Harriman family from New York proposed to give the state 11,000 acres of
prime recreational land located near Henry's lake in eastern Idaho.<span
style=""> </span>Governor Smylie saw this as a chance to
establish the Department of Parks and Recreation.<span
style=""> </span>The agreement signed by the state of
Idaho and the Harriman family called for the establishment of the
Department as one of the key items in the agreement.<span
style=""> </span>Governor Smylie was also concerned that
at some point in the future that a governor would propose eliminating the
Department in lean budget times and that the Harriman agreement would
prevent that move.<span style=""> </span>Apparently, in
reviewing the agreement, the Idaho Attorney General agreed.</p>
<p class="MsoNormal"><span style="">
</span>It is reassuring that some of our past political leaders had long
range foresight.<span style=""> </span>My source for this
story is Steve Smylie, the son of Governor Smylie.</p>
<p class="MsoNormal"><span style="">
</span>Locally there is much concern regarding the Dvorshak dam in our
area.<span style=""> </span>There appears to be some progress
with Parks and Recreation to work with local authorities to resolve the
situation.<span style=""> </span>There is a rumor that
management of the park may be put out for contract with the private
sector.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><strong style=""><u><span
style=""> </span>2.<span style=""> </span>Human rights
commissions salvaged</u></strong><span style=""> </span>--<span
style=""> </span>the Governor proposed to eliminate the Human Rights
Commission; however, Director Rodger Madsen, Director of the Department of
Labor, said that he could accommodate the commission in his agency and to
provide the necessary financing as well--the source coming from interest
earned from federal funds in a reserve held by the Department.<span
style=""> </span>Director Madsen's father was formerly the
Dean of the College of Agriculture at WSU, and I worked under his
supervision for several years while on the staff at WSU.<span
style=""> </span>Plans to salvage other commissions
slated for the axe are still under consideration.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><strong style=""><u><span
style=""> </span>3.<span style=""> </span>State board of
education proposes to change Idaho ethic laws</u></strong><span
style=""> </span>--<span style=""> </span>the SBOE aims to
undo a law forbidding Idaho <span style=""> </span>University
presidents' spouses from being fired at the schools.<span
style=""> </span>The board feels that changing the law
would assist in attracting top candidates for Presidential positions and
would assist the spouse of the current ISU President in getting a
job.<span style=""> </span>Rep. Bob Nonini, House Education
Chair, said it would put Idaho schools at risk for nepotism charges.<span
style=""> </span>Idaho presidents took jobs with annual
salaries of more than $300,000 knowing that their spouses couldn't go to
work on the university payroll.<span style=""> </span>Nonini said,
“Now they want their wives going to work pulling down 70, 80, 90,
100 thousand dollars? <span style=""> </span>That bothers
me."</p>
<p class="MsoNormal"><span style="">
</span>One constituent wrote...”I can faintly hear a university
president say to a department director: I am sorry to inform you, Mr.
Jones, that as a result of budget and fiscal restraints, we are forced to
let you go.<span style=""> </span>On the bright side, my wife will
be by your office today to introduce herself to her new staff and color
coordinate the furniture. “I've heard mixed reaction to the
proposal.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style=""> </span><strong
style=""><u>4.<span style=""> </span>The economy</u></strong><span
style=""> </span>--<span style=""> </span>Mike Ferguson,<span
style=""> </span>Governor Otter's economist, predicts that we may
not return to the state revenue level of 2007 until 2015.<span
style=""> </span>Other economists, even the most optimistic,
report we may not reach the 2007 level of funding until 2013.<span
style=""> </span>Some economists say we may be in a
double dip recession similar to the one in 70-71 (remember the saying--the
last one to leave Seattle turn off the lights?).<span style="">
</span>Other economists estimate we may be at the low point in the
recession and that it will take 2-3 years of gradual improvement to make
significant strides forward.<span style=""> </span>Some even
predict that we may be headed to the first step in a depression.<span
style=""> </span>In any event, Idaho will be facing some
significant financial challenges in these coming years.<span
style=""> </span>The only three states with no significant
economic problems are<span style="">
</span>North Dakota, Montana, and Wyoming--all with coal and gas
royalties.<span style=""> </span>There are 8,000 jobs going
begging in North Dakota.</p>
<p class="MsoNormal"><span style="">
</span>Estimates are that Idaho may be facing another $100,000,000
shortfall before the end of the fiscal year.<span style="">
</span>Everyone is waiting to see what January tax revenues are.<span
style=""> </span>The worst news is that fiscal years <span
style=""> </span>2011 and 2012 may be
even worse, and that there is a potential 10 percent cut in the 2011
fiscal year if revenues do not improve. <span
style=""> </span>This would have a devastating impact on
programs and services.</p>
<p class="MsoNormal"><span style="">
</span>Unemployment continues to lurk around the 9.0 percent level, but
many citizens have exhausted their benefits and do not show up in the
total unemployment figures.<span style=""> </span>Our true
unemployment may be in the 11-12 percent range.<span style="">
</span>About the only good news is that the state endowment funds did very
well this past year realizing a gain of about $300,000,000.<span
style=""> </span>The PERSI (state retirement) fund
gained 15 percent and retirees will receive a one percent COLA in
March.</p>
<p class="MsoNormal"><span style=""> </span><strong
style=""><u>5.<span style=""> </span>Education</u></strong> --<span
style=""> </span>is public education and higher education in Idaho
headed toward 3rd world status?<span style=""> </span>This is a
question posed by a constituent.<span style="">
</span>Public education continues to get hit with holdbacks and the
promise of further budget cuts.<span style="">
</span>The reserves of many school districts are almost depleted.<span
style=""> </span>Some districts have gone to a four day school
week.<span style=""> </span>In Idaho we require students
to attend 180 days of school per annum.<span style="">
</span>Many European and Asian developed countries require students to
attend from 220-240 days per annum.<span style=""> </span>If our aim
is to prepare students to be competitive in a global economy then it
appears that we have a long way to go.</p>
<p class="MsoNormal"><span style="">
</span>Our institutions of higher learning were esteemed throughout the
world as outstanding universities and colleges for teaching and
research.<span style=""> </span>Student from around the
world flocked particularly to programs of graduate education.<span
style=""> </span>However, the level in Idaho of state funding
for higher education has fallen from about 18 percent twenty years ago to
barely 9 percent today.<span style=""> </span>In just this
last fiscal year the University of Idaho was cut back by $22 million in
state funding.<span style=""> </span>A highly placed
University of Idaho official said that if higher education suffers another
10 percent cut,<span style=""> </span>it would be a disaster.<span
style=""> </span>Quality programs will be cut and
already many have been eliminated.<span style=""> </span>Many
outstanding faculty have taken positions at other institutions and many of
these researchers take grant money with them.</p>
<p class="MsoNormal"><span style="">
</span>The University of Idaho has a tremendous economic impact on the
state of Idaho with an economic footprint on the State is about $935
million or about two percent of the State’s economy.<span
style=""> </span>As<span style="">
</span>President Nellis reports, the State's investment in the University
of Idaho is an excellent investment.<span style=""> </span>He says,
"With fully 70 percent of all research conducted in the state
originating at the U of I, we believe we are the greatest partner the
state has in fueling both its economic recovery and its future
success."</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><strong style=""><u><span
style=""> </span>6<span style=""> </span>Action
required<span style=""> </span></u></strong>--<span style="">
</span>I talked with a member of the Idaho tax commission.<span
style=""> </span>He reported that in November $1.5
million from a reserve fund was transferred to the tax commission to hire
part time tax auditors.<span style=""> </span>Since that time
they have recovered a net of about $5 million for the state.<span
style=""> </span>The commission estimates they should recover
about a net of $10 million in unpaid taxes by the end of the fiscal
year.<span style=""> </span>With estimates of over $200
million in unpaid taxes I think it would be appropriate to expand the
program.<span style=""> </span>The cost - benefit ratio has
always been 1:10.<span style=""> </span>All tax exemptions
should be reviewed and those judged not to be a value to the state should
be eliminated and the revenues directed to the general state tax
stream.<span style=""> </span>Other revenue enhancement ideas are
being discussed.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style=""> </span><strong
style=""><u>7.<span style=""> </span>A bit of humor</u></strong> as
i sign off this week:<span style=""> </span>This headline
caught my eye – “Floor Caves Under Weight Watcher
Weigh-in”.<span style=""> </span>A Weight
Watchers’ group gathered in Sweden for a routine weigh-in when the
floor underneath then collapsed.<span style=""> </span>No
dieters were hurt but they probably have extra motivation to shed those
pounds.</p>
<p class="MsoNormal">Well, that's it for this week.<span
style=""> </span>I'd appreciate your comments and
recommendations.<span style=""> </span>My e mail is
ttrail@house.Idaho.gov</p>
<p class="MsoNormal">And my office phone is (208) 332-1184.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Rep. Tom Trail</p>