[Vision2020] Otter's State Takeaway and Giveaway

[Tom Hansen]

THE TAKEAWAY.

Courtesy of today's (January 13, 2009) Spokesman Review 

----------------

Otter proposes 5% education cut
Betsy Z. Russell / The Spokesman-Review  
 
BOISE – Idaho Gov. Butch Otter dropped a bombshell on state legislators 
Monday – a proposal for the state’s first-ever cut in public school 
funding.

“The fact is that my proposed public schools budget is reduced far less 
than I’m recommending for other state agencies,” the Republican governor 
said, as he unveiled a plan to cut school funding by 5.34 percent next 
year. Overall, his proposed budget would be 7.33 percent less than the 
original state budget for this year, before an economic downturn forced 
mid-year cuts.

The shock of the school budget cut was compounded by Otter’s plan to raise 
$174 million a year in taxes and fees for transportation – a 2-cent per 
gallon increase in the gas tax each year for the next five years, plus 
hikes in vehicle registration fees, a 6 percent excise tax on rental cars 
and more. “Simply put, our transportation revenue system isn’t designed to 
meet our needs today,” Otter said. Idaho hasn’t raised its 25-cent per 
gallon fuel tax since 1996.

Sen. Nicole LeFavour, D-Boise, said, “It’s an odd set of priorities, in my 
mind, to be willing to raise taxes for roads but not for school kids.” 
After his speech, Otter was questioned about criticisms that he 
put “potholes ahead of people” in his budget. 

The governor then got into an impromptu debate with House Democratic 
leaders as he left the Boise State University Special Events Center, where 
he delivered his State of the State message since the state Capitol is 
closed for renovation.

“Are you suggesting we take money out of transportation and put it into 
social services?” the governor demanded. “So where are you going to find 
the money?” He accused the Democrats of “mixing apples and oranges.”

Idaho puts no general tax dollars into transportation funding, relying 
instead on fuel taxes, vehicle registration fees and federal funds for 
road construction and maintenance. Otter didn’t propose changing that – 
yet – but called for a study of how much sales tax is generated by auto, 
tire and car parts sales. “While I’m not advocating a shift in those 
revenues today, it is important for us to compile the data so that we can 
make informed decisions down the road,” he said.

Senate Education Chairman John Goedde, R-Coeur d’Alene, said, “This is 
dismal – there’s no question about it.” He said the budget crunch may mean 
some teachers lose their jobs, “and that means larger classes.” 

He added, “We may have to look at a moratorium on some of the statutorily 
required rollups” in the state schools budget, which require automatic 
increases for such costs as employee benefits and transportation.

The proposed cut, if lawmakers go along, would be roughly $75 million.

State Superintendent of Schools Tom Luna said, “There’s no doubt that 
education is going to receive less money than they got this year. No one 
is happy about that, but it’s the situation that we’re in.” Asked if he 
accepts the governor’s proposal for a 5.34 percent cut in school funding, 
Luna said, “We’re still in the process of reviewing it.” 

Luna said he’ll present a revised budget request to lawmakers. It may or 
may not match Otter’s figure, but, he said, “It will be a decrease.”

Other state agencies would see much bigger cuts under Otter’s proposed 
budget: 7.5 percent from the state Department of Health and Welfare, 10 
percent from colleges and universities and nearly 12 percent from the 
departments of Water Resources and Corrections.

“It is my intent to continue an unrelenting scrutiny of state government 
programs that use Idahoans’ hard-earned dollars,” Otter declared, earning 
one of the few rounds of applause lawmakers gave him during his 45-minute 
address to a joint session of the Legislature.

The address outlined few new initiatives, beyond budget cuts and the 
transportation proposal. Otter did propose continuing the scheduled 
increase in Idaho’s grocery tax credit, which partly offsets the sales 
taxes Idahoans pay on groceries; scaling back the duties of the State 
Board of Education to limit it to policy-setting, rather than day-to-day 
school operations; and adding staffers to the state forensics lab and the 
state appellate public defender’s office. Overall, however, his budget 
would force the layoff of roughly 100 state employees next year.

He called for spending only about 35 percent of Idaho’s $390 million in 
rainy-day funds, from four state savings accounts. No one knows when the 
recession will end, he said. “I want that buffer.”

Senate Finance Committee Chairman Dean Cameron, R-Rupert, said, “The 
governor laid out a pretty strong foundation and blueprint for us to start 
from.” Of the school budget cut, he said, “It is unprecedented, and I’m 
not real excited about that part of his proposal. But at the same time, 
I’ve got to give him the benefit of the doubt and look at the realities of 
the situation.”

“I know I and my committee will work very hard to do the best we can for 
public schools,” Cameron said.

The governor’s speech kicks off Idaho’s legislative session, setting what 
many lawmakers described as a “somber” tone. After the speech, Senate 
Republicans gathered in a closed caucus to elect a new majority caucus 
chairman to replace Brad Little, who was appointed lieutenant governor. 
Sen. Russ Fulcher, R-Meridian, defeated Sen. Jim Hammond, R-Post Falls. 
His new leadership post means Fulcher must give up his seat on the joint 
budget committee; a scramble is expected this morning for the key post.

Sen. Shawn Keough, R-Sandpoint, missed the session’s opening because her 
husband, Mike, had a heart attack on Friday night. Keough said, “The good 
news is he’s doing very well, and we were able to get to the hospital in 
time. He’s progressing and improving rapidly.” 

She said she’ll monitor this week’s legislative hearings on the Internet 
and on Idaho Public Television, and is staying in close touch with other 
lawmakers.

Luna said as he looks at school budget cuts, “My priority is to preserve 
the teacher-student contact time, because that’s where education happens 
in schools.”

He said, “It’s going to be uncharted waters for public education, but I 
think much of what we’re experiencing in Idaho and in the nation with the 
economy is uncharted waters.”

--------------------------------------------------------------

THE GIVEAWAY.

Meanwhile, under the heading "Tax Credits" of the Idaho Corporate 
Advantage at:

http://tinyurl.com/OttersGiveaway

----------------

TAX CREDITS: 3% INVESTMENT 

TAX CREDIT 
This credit is available for qualifying new investments in Idaho. It can 
offset up to 50 percent of your state income tax liability and may be 
carried forward up to 14 years. Qualifying property is new or used 
depreciable property as defined in Internal Revenue Code Sections 46(c) 
and 48.

--------------------------------------------------------------

Translation:  Otter is cutting the public education budget due to 
insufficient tax revenue, while enticing coporations with tax breaks (up 
to 50% of their state tax liability.  These tax breaks are provided to 
corporate Idaho as consideration for bringing jobs to the state.

Footnote:  Idaho's current unemployment rate is 6.7%, a steady increase 
each year since 2004.

Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho
 
"For a lapsed Lutheran born-again Buddhist pan-Humanist Universalist 
Unitarian Wiccan Agnostic like myself there's really no reason ever to go 
to work."

- Roy Zimmerman


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