[Vision2020] Legislative update IX from Rep. Trail

Sun Mar 11 11:41:18 PDT 2007

Tom,

  Re: HB203. I think only offering 25% forgiveness on the college debt is not enough, or enough incentive to change anything financially for the students. It costs about $50,000 to get a special education degree, yet, the job only pays $27,500 a year. $38,500 in college debt is still a monstrous bill to pay to teach in Idaho. It is better for them to go teach in Washington, get a higher rate of debt forgiveness, and a higher salary. 

  Taking away the tax credit for business equipment would be a huge blow to the economy in Idaho. Jobs are started by people taking a risk and investing in infrastructure and equipment. If you increase their taxes you increase the risk that person is taking. If you do that, less people will take the risk. In addition many farmers would be taxed on their farming equipment as well as small businesses. Larger businesses can buy their equipment more easily in another state and move it, avoiding your biggest revenue for that tax source. 

  I think the fairest tax increase is an 8% service tax on things like oil changes, video rentals, hair cuts, and dining out. 

  I believe taxing businesses even before they start to make a profit on the equipment they just brought is a bit like killing the goose that lays the golden egg before it can even lay the first egg. 

  We need to encourage businesses to grow, take risks, and come to Idaho. Idaho, and particularly Latah, needs to get some better paying jobs. 

  Best,

  Donovan

ttrail at moscow.com wrote:
  LEGISLATIVE NEWSLETTER IX-FEBRUARY 26-MARCH 2/2007 

Constituents: 

We had snow on the ground three times this week in Boise, but that is good
news for skiers and farmers who irrigate their crops. Some of the big news
this week related to a young 12 year old student from Filer who keeps on
winning duck calling contests. He learned duck calling from a college class
and has been knocking off national duck calling champions right and left
and earning enough money for his college education. Another young man from
Mt. Home won 10 out of 13 dog shows with his terrier and advanced to the
Westminster Dog Show. There was also news that the first beaver in 200
years had been sighted in the Bronx River in New York City. Several years
ago I spotted a big beaver in downtown Boise. I'm not certain how these
interesting but unrelated facts relate to the Legislature but I found them
interesting. 

Now on to the Legislature:

1. HB245 -- This bill would repeal the personal property tax for business
equipment. This would represent a tax shift of about $10 million/year for a
period of almost 10 years. The total tax shift would amount to almost $100
million. I received some information from the Latah County Assessor's
Office pertaining to the bill. In Latah County we have approximately 2,300
businesses with an assessed value of about $80 million on business
equipment. This translates into about $1.3 million impact in Latah County.
It would represent a tax shift of $1.3 million to business and home owners
in the county. The Moscow Chamber of Commerce is uneasy with the
legislation and the Idaho Association of Counties opposes it. 

I submitted legislation calling for repeal of the business personal
property tax but replacing the funding stream through a 1% sales tax on
services (except health, medical, and utilities). It was held in committee
because the Governor said he would veto any legislation that would increase
taxes. 

2. Craig-Wyden Bill -- We just received word from Sen. Craig's Office that
the Craig-Wyden Bill funding would be extended for one year. If the funding
had not been approved it would have been a impact of $22 million on our
rural school districts and counties. We will still have to face the problem
next year but at least we have some breathing room. 

3. Child Day Care Rules Rejected -- These were rejected by a 6-5
committee vote in Health and Welfare. The bill would have set standards for
health, safety, training and staffing, and required criminal checks for day
care centers with as few as two unrelated children. Many legislators were
shocked and felt those who voted against it were out of touch with reality. 

4. Education -- The K-12 budget was set by JFAC. Teachers will receive a
3% base salary increase (note that inflation increased 3.8% last year
according to PERSI). Enhancements include funding of up to $350/teacher for
classroom supplies, $10 million for textbooks, $7 million for remediation
for ISAT (students who have not done well with the test), and an additional
$500,000 for gifted and talented students. The budget represents an almost
6 percent increase over last year. Higher Education fared well. State
employees will receive a 5% salary increase (merit based) but may have to
pick up an additional portion of their health insurance. $10 million was
approved for research grants. About $10 million was approved for the
University of Idaho Livestock and Environmental Center which would be
located in the Jerome area. 

5. HB172 -- This legislation pertains to the address protection of
victims of domestic violence. Rep. Ringo and I have been working with
Professor Elizabeth Brandt of the University of Law School on this
legislation. We needed to add on several amendments to the bill and these
will be up in House Jud and Rules on Monday. It will be a race against time
to get the bill through the legislative process before we close down. 

6. Grants and Tax Credits Receive Approval -- H150 sets up a 50/50
matching grant for fuel retailers to invest in biofuel infrastructure. H177
is a tax credit measure aimed at promoting the use biofuels. 

7. HB203 -- This bill provides loan forgiveness for teachers who are
qualified to teach in severe teaching shortage areas--special education,
speech pathology, math, and science. Twenty five percent of the loan would
be forgiven for every year taught in Idaho (up to a cap of $20,000). The
bill has been amended and will be up on the amending order Monday. 8. Needs
Based Scholarship Bill -- HB217 which passed out of the House Ed
Committee with only two negative votes is now being held hostage by House
Leadership and JFAC. Governor Otter supported the bill which would set up
an endowment fund of $38 million. This would generate about $2 million a
year for scholarships. The fight is over the amount of money that could be
used to fund the bill. I talked with Gov. Otter today and he said he was
going to play hardball in support of the bill. 

I would appreciate your comments and recommendations. My e mail is
ttrail at house.senate.gov 
Rep. Tom Trail 

---------------------------------------------
This message was sent by First Step Internet.
http://www.fsr.com/

=======================================================
List services made available by First Step Internet, 
serving the communities of the Palouse since 1994. 
http://www.fsr.net 
mailto:Vision2020 at moscow.com
=======================================================

---------------------------------
Be a PS3 game guru.
Get your game face on with the latest PS3 news and previews at Yahoo! Games.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mailman.fsr.com/pipermail/vision2020/attachments/20070311/f73804d8/attachment.html 