[Vision2020] Legislative Newsletter IV Feb 1-5, 2010
Rep. Tom Trail
ttrail at moscow.com
Sun Feb 7 09:10:22 PST 2010
LEGISLATIVE NEWSLETTER IV—FEB 1-5/2010
Constituents — There was at least one good piece of news to come out
of the Idaho Legislature this week.
Sen. Schroeder and I along with five other Central Idaho
Legislators attended the State Park Board meeting on Wednesday to urge the
Board to overturn their decision to close Dvorsach State Park. There was an excellent
turnout of both legislators and citizens at the meeting. The Board unanimously approved
reopening of the Park and Director Merrill has given her staff 30 days to
come up with a management plan. The successful management of the Park will mean
that many different stakeholders will have to join forces to help the Park
move towards becoming economically self sufficient.
Here are some other news items
that occurred during the week:
1. Economic News and State
Budget — While the
news from Washington, D.C. indicates that we have turned the corner in the
recession, there are certainly no positive signs here in Idaho. We still have almost 70,000
citizens unemployed.
Agriculture experienced a 47 percent decline in net income last
year. The only
good news was that Micron’s last quarter earnings were on the
positive side for the first time in several years.
January’s tax
receipts came in about $10 million under projections. Projections are that all
state agencies including public and higher education will be facing a 10
percent reduction in their budgets for Fiscal Year 2011. This means that JFAC will be faced
with some very hard decisions.
For example, if we cut Corrections by $5 million this means that we
have to release 250 felons into society. I doubt that the Legislature is willing to go
this far. There are
almost 50 school districts whose reserves are almost exhausted. The University of
Idaho’s state funding was cut back $22 million last year. Key programs are being cut and top
researchers and teachers along with their grants are being cherry picked
off by other universities.
Morale among public school teachers and higher education faculty is
suffering. Fewer
classes will be offered and class sizes will increase.
2. Guarding the State’s
Dollars — The recent
news that $74,000 was spent for dedication of highway openings and
ceremonies caused Rep. Wood, Chair of House Transportation Committee to
say, “This is appalling.” The finger pointing went all the way from the
Transportation Board to the Governor’s Office. Certainly no one was
watching the henhouse on this one.
I recently learned
that three Idaho employees (all with salaries of over $200,000/year) are
able to take their spouses on domestic and international trips at state
experience (assuming there is some benefit to the state). These are the three
University Presidents at ISU, UI, and BSU and, yes, it is legal and it is
written in their contracts.
None of the other University Presidents have this privilege nor
does the Governor. I
have written the State Board of Education asking for them to provide the
Legislature with specific and measurable evidence how such taxpayer
expense benefits the state and why none of the other university presidents
is given such a privilege.
I’ve also requested the Board to provide how much has been
paid out for spouse travel over the past five years. The practice may be legal
but it certainly sends out the wrong sign to our citizens and other state
employees.
On the local scene
in Moscow there are reports that a Hilton Gardens Hotel and International
Pancake House will be built at the old Wally Orvik Chevrolet location and
that the Moscow Walmart will remain open even after the opening of the
Giant Walmart in Pullman.
3. Taxes — Republican legislators may be promoting some
tax cut bills for large businesses in the hopes of attracting more
corporations to Idaho to create jobs. I think the emphasis should be on legislation
that strengthens our small businesses which is the driving force for
creating jobs in the state.
As I mentioned in another newsletter the Idaho State Tax Commission
reports that is they can hire about 150 part time tax auditors that they
can potentially collect about $70 million in unpaid taxes in the
state. This would be a return
on investment of $10 for every dollar invested. The IRS reports that almost $300 million in taxes
go unpaid every year in Idaho.
I think this is where we should be getting some of our added
revenue. Another area are
taxes on internet sales—estimated to be about $60 million/year. This seems to be another
fruitful area. The
examination of all of the 75 tax exemptions also merits attention.
4. Idaho Public
TV — I’ve
received about 80 e-mails all in support of continuing funding for Idaho
Public TV. If the
Governor’s plan is carried out it is most likely that citizens in
the Treasure Valley and selected southern areas in the state would have
access to public TV programs.
There are some hidden costs to phasing out funding for public
TV. IPTV has spent $22
million for digital conversion over the past 10 years with $6 million from
the federal government with strings attached. If public TV cannot maintain the equipment then
the state would have to repay the feds about $2 million. I’m working with other
legislators to try and overturn this very bad proposal. Citizens should contact the
Governor and their legislators to indicate their support.
That’s all for this
week. I’d
appreciate your e-mails and calls with your comments and suggestions.
ttrail at house.idaho.gov
(208) 332-1184
Rep. Tom Trail
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