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<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">LEGISLATIVE NEWSLETTER----JANUARY
9-13/2012</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">Constituents:</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""><br /> The Idaho Legislature opened on
Monday, January 9 with the Governor’s State of the State Speech
which outlined his priorities for education, job growth, increasing
reserve accounts which were used for vital programs during the economic
downturn, employee compensation and tax relief.<span
style="mso-spacerun:yes"> </span>The FY2012 General Fund
revenue estimate of $2,552,710,000 reflects a 4.43%<span
style="mso-spacerun:yes"> </span>increase in revenue from FY
2011.<span style="mso-spacerun:yes"> </span>The FY2013 General
Fund revenue estimate of $2,700,260,000 reflects a 5.78 percent growth in
revenue.<span style="mso-spacerun:yes"> </span>The
Governor’s budget proposes:</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* $45 million in ongoing tax
relief</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* Transferring $25,980,000 to the Budget
Stabilization Fund</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* Transferring $29,980,000 to the Public
School Stabilization Fund</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* Transferring $4,980,000 to the Higher
Education Stabilization Fund</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* Limited growth in size of State
government</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""><br /> The Governor recommended several
changes in salaries and benefits:</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* For market related changes necessary to
address system wide structure adjustments he recommended no changes to the
salary ranges.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">* For a merit increase component to
recognize and reward state employees by setting aside $41,107,100 from the
General Fund and $17,143,500 from other fund sources.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""><br /> The Governor did place a high
priority on education.<span style="mso-spacerun:yes"> </span>The
higher education recommendations are promising.<span
style="mso-spacerun:yes"> </span>The Governor wants the state to
partner with the Center for Advanced Energy Studies, CAES and the three
research schools, INL, and the Department of Commerce to create new
businesses and jobs for Idaho.<span style="mso-spacerun:yes">
</span>There have similar successful efforts in Virginia and Utah with a
modest funding recommendation in comparison.<span
style="mso-spacerun:yes"> </span>It is a start which can have an
excellent payoff.<span style="mso-spacerun:yes"> </span>He
also wants to fund student growth in the schools as well pick up some of
the occupancy costs of new buildings.<span
style="mso-spacerun:yes"> </span>He wants to take $60 million
dollars to build up the Public Education Stabilization Fund, the Budget
Stabilization Fund the Higher Education Stabilization Fund.<span
style="mso-spacerun:yes"> </span>This seems essential at this point
in the recovery.<span style="mso-spacerun:yes">
</span>Tax revenues from December were about $20 million over projection
which is an encouraging sign.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""><br /> The University of Idaho received a
shot in the arm when the Idaho Wheat Commission and Lima grain Cereal
Seeds announced a multi-million dollar endowment that will enhance new
agriculture research and extension efforts across the state.<span
style="mso-spacerun:yes"> </span>Initial funding will be
in the $2 million range with the Idaho Wheat Commission’s gift to
create two $1 million endowed professorships.<span
style="mso-spacerun:yes"> </span>These partnerships, according to
President Nellus, demonstrate the power of public-private collaboration
and the value that a land grant institution like the UI brings to the
state’s economy.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""><br /> That’s all for now.<span
style="mso-spacerun:yes"> </span>We need plenty of
prayers for snow to help out farmers, skiers, and the folks that run the
dams for hydropower.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif""> </span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">Please contact me via e mail at
ttrail@house.idaho.gov.<span
style="mso-spacerun:yes"> </span>My floor phone #
is 208-332-1260 and my office #<span style="mso-spacerun:yes">
</span>208-332-1184.</span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;mso-bidi-font-size:11.0pt;
line-height:115%;font-family:"Times New
Roman","serif"">Rep. Tom Trail</span></p>