[Vision2020] House Bill 754

[thansen@moscow.com]

If there are funds remaining as the end of the fiscal year approaches, wouldn't 
this encourage state departments to spend frivously (more so than they already 
do), the old "spend it or lose it" approach?  Wouldn't this then develop a 
whole new type of pork (not more pork, just fatter pigs)?

Tom

> It limits state expenditures based on a percentage increase in population
> and the consumer price index.  What's wrong with this?  If the economy grows
> faster than population and prices, the excess tax revenues are refunded.  It
> virtually guarantees that expenditures all functions of government-- public
> safety, education, health and welfare, etc., will shrink as a percentage of
> the state's economy. It makes passing tax increases futile, since even if
> you raise the money, you can't spend it.  You can't shift functions from
> local governments to the state, such as local property tax relief for
> education. If the courts rule that Idaho has to fund constrution for local
> schools, the money has to come out of something else.
> 
> In this system, bad economic years rule. If the economy goes down, like it
> did in 2001, states have to cut expenditures to balance the budget. When the
> economy comes back, expenditures during the good years are capped at the
> average of the three bad years. Public expenditures are continually racheted
> downward. You can't accumulate a "rainy day fund", since all excess tax
> revenues have to be instantly refunded.
> 
> Suppose that a greater percentage of Idaho's high school graduates want to
> go to college?  Too bad, expenditures are capped. Why not impose higher
> tuition so students pay a greater percentage and with more money,
> universities can expand? Nope, absolute spending is capped, so if you want
> to grow higher ed or send more criminals to prison, you have to throw more
> babies off Medicaid.  It's a conservative's dream.
> 
> 
> **********************************************
> Ron Force          Dean of Library Services
> U of Idaho         PO Box 442350
> Moscow ID 83844    rforce@uidaho.edu
> (208) 885-6534
> **********************************************
> 
> I reviewd HB754.
> 
> http://www3.state.id.us/oasis/H0754.html#sop
> 
> Could somebody please explain the legislative mumbo-jumbo detailed in this
> bill?
> 
> What is the bottom line on this bill now that it has passed?
> 
> Tom Hansen
> 
> > Visionaries:
> >
> > The Revenue and Tax committee passed a bill today that I think will be
> very
> bad for us.
> I'll get more information to you, but you may want to gear up to send
> messages
> to
> legislators.  If you care to read it, it's HB 754.
> >
> > Shirley
> >
> > _____________________________________________________
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> >
> 
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>           mailto:Vision2020@moscow.com
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> 
> _____________________________________________________
>  List services made available by First Step Internet, 
>  serving the communities of the Palouse since 1994.   
>                http://www.fsr.net                       
>           mailto:Vision2020@moscow.com
> ŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻ
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