[Vision2020] Report from the Legislature

[Shirley Ringo]

Visonaries:

>From the Legislature, Part IV

On February 21, the Joint Finance and Appropriations Committee will begin setting budgets.  Questions loom about spending priorities the Committee will have.  Our Governor has indicated his priorities - he would favor setting aside $60 million in rainy day funds and a $45 million tax cut over increasing pay for public employees.  My own priorities would include increased pay for public employees; restoring cuts to Medicaid that have harmed individuals with physical and mental disabilities; better support for education; attention to infrastructure; and some restoration to our rain day funds.  I would like to hear from you about these issues.  If you are so inclined, you might consider contacting other JFAC members.

This year, Democrats have proposed legislation that would lead to more jobs with better pay.  So far, we're not seeing many of our ideas move forward.  One idea I find intriguing involves creation of a state bank.  North Dakota is currently the only state that has one, but other states are investigating the idea.  Washington State, for example, has begun a detailed study of the pros and cons.  Among the functions of such an entity would be facilitation of loans to small businesses by helping to buy down interest rates provided by established banks, or helping to provide funds.  In my opinion, small businesses are important to the health of our economy.  Owners tend to have loyalty to the communities - they are not looking to out-source, or shop around the country for the best tax deals.

I think one of the major concerns during my tenure in Idaho's Legislature involves our failure to have a long term plan for assessing needs and assuring adequacy of revenue to meet those needs.  I have attempted to generate discussions of a variety of means for generating revenue with an eye on fairness.  I think that's a conversation we need to have.

 

There are regular discussions about eliminating wasteful spending, as there should be.  Beyond that, we are not meeting our responsibility if we refuse to assess adequacy of revenue to protect our investments in infrastructure, and provide necessary services.

 

Among my concerns are the following:

 

According to the Idaho Department of Transportation, Idaho's transportation system currently has 574 bridges over fifty years old.  By 2021, there will be 1096 bridges in that category.  Today, 13% of our roads have deficient pavement.  With our current strategy, investing $100 million annually, by 2021 28% of the roads will have deficient pavement.  The Governor's Transportation Funding Task Force recommendations show a current $543 million total annual shortfall in funding to maintain the transportation infrastructure.

 

In the Joint Finance and Appropriations Committee, we receive updates concerning building projects. Despite yearly efforts, there is a notable backlog in needed renovation and repair projects.  This week, the Director of Public Works indicated the cost of those unmet needs is $500 million.

 

All presenters to the budget committee have discussed the critical need for addressing public employee pay.  After years of neglect, levels of pay are considerably lower than those in the private sector.  Turnover rates are increasing, and are costly. 

 

As I have mentioned before, the general fund appropriation for K-12 schools has been reduced by $200 million since 2009.  We all know higher education budgets are skimpy and tuition continues to go up.  Funding for Medicaid programs has been slashed.  The need for these services does not vanish, so in many cases the burden is shifted to other budgets.

 

These conditions have developed over time, and have worsened during the economic downturn.  I think there should be a plan to meet these challenges.  Your opinions are important.  I welcome your thoughts.



Shirley Ringo
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