I've been following with interest communiques concerning the Cameron
proposal and many other local issues.
It occurred to me that I can share some news from time to time from
the Legislature. Our e mail in Boise is infocntr@lso.idaho.st.us
The extremely tight budget situation is perhaps the biggest news in Boise.
Mal and Gary say it's the tightest they've seen in 10 years. The biggest
impact locally will be the elimination of the 2% salary increase for state
employees and the $1.5 million salary equity monies for higher educaton.
Mal and I were in Boise on Jan 2nd and 3rd serving on the House Human Resources
Committee and we heard the presentation of the Governor's 2 percent request
for state employees salary increase. The HRC voted to approve the 2 percent
because it is fully justified when compared to state employee salaries/benefits
in other states and with the private sector in Idaho. Mal and I both voted
against the 2% salary elimination from the budget along with about 6 other
house members on Thursday.
There are a series of cuts being proposed to try and balance the budget along
with the CEC and higher education equity monies. Other areas are $2.0 in
selected equipment, $2.4 selected enhancements, and a number of smaller cuts.
No stone is being unturned to try and fine extra money. There has been
a shift of $3.7 million in terms of decreased enrollment ajustment (k-12),
an endowment fund shift of $2.5 million, and a $2.5 million shift from
the forest improvement fund. The 2.5% general fund holdback on state
agencies or $17.7 million will go back to the public schools.
The Governor's economic forecast made in December appears to be over optimistic,
and the January estimated tax intake is down $10 million compared to a year
ago. The agriculture and agri-business sector in S. Idaho are under severe
stress with low cattle, wheat, and potato prices. The worst case senario
with anticipated flood damage from the 200% snowpack in the mountains
and with lower than anticipated taxes coming in to the treasury is that
we might even have to have a special session sometime in June if it
looks like the budget won't balance. The session would involve raising
taxes to balance the budget.
The Governor and the Legislature wants to maintain the budget reserve at
about $30,000,000. It is considerably below that figure at the present time
and $10,000,000 will be transferred to the fund in February (pending).
Rep. Miller and I together with other representatives from Boise, Lewiston,
and Pocatello feel the best strategy to talk and work with leadership to
consider reinstating even a 1% and if the economy takes an upturn to put
in the other 1%. The good economic news in that Micron, Hewlett Packard,
and Zilog are hiring more workers and this is one indication that corporate
income tax will improve. We will continue to work with legislative
leadership to see how we can resolve the problem.
There is also a rumor that there will be a 15% increase in legislative
salaries. It is only a rumor. A commission determines legislative salaries
and there has been a 3% increase (total) in the last six years.
I'll appreciate your feedback. Trying to get news out to everyone about
what is going on in Boise isn't always easy. Let us know if this is
an appropriate means to get information out to the public.
Tom Trail, Representative
District 5
Dr. Tom Trail
International Trails
2039 Mt. View Rd.
Moscow, Id. 83843
Tel: (208) 882-6077
Fax: (208) 882-0896
e mail ttrail@moscow.com