[Vision2020] Legislative Update I from Rep. Tom Trail

[Rep. Tom Trail]

LEGISLATIVE NEWSLETTER I--JANUARY 24th, 2011

Constituents:

     This is my first legislative letter reporting the process, good
deeds, adventures, and other activities of the 2011 Idaho
Legislature.

     We actually do have a few pieces of good news amid the gloom of
economic projections.  I recently talked with the Head of the Idaho
Tax Commission Audit Division.  He reports that auditors collected
about $90 million from non-taxpayers between July 1st to December
31st.  This again points out that we need to hire more tax auditors.

     In order to qualify for food stamps the asset value moved from $2,000
to $5,000 in order to qualify.   Last session Rep. Eric Anderson and
Rep. Bob Nonini introduced a bill that encouraged JFAC to hold a
public meeting.   The legislation failed but JFAC got the message and
this Friday they held an open meeting regarding the proposed
education budget.   More than 600 of the public attended.    The New
State Capitol auditorium and anterooms held all 600.  A total of 83
citizens were able to testify during the four hour session.   The
session was well organized and a great success for direct public
involvement.

 1.  Economy and Budget--The good news is that it appears that Idaho's
economy is slowly improving.   Increasing tax revenues over the
Governor's projections are encouraging; however, we will need to
carefully watch the income tax returns of April and May which are the
biggest tax return months of the year.   We need to remember that we
still have over 9% unemployment, and Idaho still has one of the highest
foreclosure rates in the U.S.   The Governor's budget projected a $340
million deficit; however, conservatives project an even higher figure.   
One of the mysteries is that the Governor basically held k-12 and Higher
Education harmless (no cuts in their budgets).    K-12 and Higher
Education represent about 60% of the budget so many were wondering if
state agencies and programs were going to take the major brunt of the
needed cuts.    The Governor did not mention anything about any tax
increases to help resolve the problem.   It is apparent that the intent
is to severely cut back on Idaho's Health and Welfare programs including
Medicaid.

 2.  Education--Superintendent (SPI) Tom Luna unveiled his Education
Reform plan before JFAC and the House and Senate Education Committees.  
There are many major components and we will be hearing many details in
the weeks to come.   One major part of the plan is to increase class size
by about 1.3 students.   Mr. Luna feels that this will save the state
about $60 million/year.   Major emphasis will also be on increasing on
line education courses to all Idaho schools through the Idaho Education
Network, and the various Virtual Schools that are operating in Idaho.   
Mr. Luna also proposes that all high school juniors will be required to
take two on line courses in order to graduate.   He also wants the state
to provide all 9th graders with laptop computers.   The combined impact
of this proposal will be to eliminate between 700-1,000 teachers,   some
50 administrators, and about 250 certified staff. As they say, “the Devil
is in the Details” and there are many who are both in support and opposed
to the new recommendations.

      The SPI also wants to eliminate the 99% funding safety net for rural
districts.    I believe this will negatively impact the ability of
our rural school districts to deliver quality academic programs.   
Mr. Luna states that he has involved all of the stakeholders in the
development of his Educational Reform Proposal; however, in a joint
meeting before JFAC and the House and Senate Education Committees
Senator Malepai asked the State Board of Education if the Board has
been involved in the development of the proposal.   There was a
moment of silence and then Russ Westerberg, the Board President
said, "No."   It seems rather odd that the State Board of Education
has not been involved in the process of developing the most sweeping
and comprehensive piece of educational reform in the last 25 years
in the state.

 3.  Taxes--We need to hire more tax auditors to go after non-taxpayers.  
The payoff has been $15 return for every $1 invested.  Hopefully there
will be movement towards taxing internet sales.    Idaho needs to send a
representative to help move the State toward joining a state compact that
will help Congress to initiate laws that will help Idaho move toward the
taxing of internet sales.   Rep. Ringo and I have introduced across the
desk that would force the state to take a closer look at the 80
exemptions that we now have on the books.   Idaho takes in about 1
billion in sales tax each year and grants 1.7 billion in sales tax
exemptions.    We are proposing that the Legislature take a close look at
which exemption provide a benefit to the state.    Those that do not
provide a benefit should be eliminated and the monies transferred to the
state general fund to be appropriate to priority programs.   We do not
propose eliminating health or production exemptions.

Well, this is enough for the start of the session.    I'd like to hear
your comments and recommendations.

My e mail is:

ttrail at house.idaho.gov

and my phone # is (208) 332-1184

thanks,

Rep. Tom Trail