Legislative Action 3/9/00

["Gary Schroeder" <gschroed@senate.state.id.us>]

Report from Senator Gary J. Schroeder


1)The House today passed HB 707 on a 41-29 vote.  The bill provides for the following:

Health Insurance Deduction for the Self-employed  $1.6 million
"Marriage Tax Penalty" fully funded  $10.778 million
3% Individual Income Tax  Credit  $26 million
Investment Tax Credit Increase  $2.1 million

Total:  $40.448 million

The bill now goes to the Senate Local Government and Taxation Committee of which I am a member.  I expect that a hearing will be held on the bill next Wednesday, but possibly as early as Monday.  

Hopefully, the Senate will either kill it outright or amend  it in such a way as to retain  the first two provisions only.  Passage of the 3% Tax Credit will result in a $15 million cut in the K-12 Public School Budget. 

2)  The Senate Education Committee completed its work on school facilities bills today.  Three bills were sent from Committee:

a)  One bill would provide for an 80/20 match for all outstanding bond levies in the State.  The state would pick up 20% and the total cost to the state  would be $13 million.  This bill was originally introduced by former Senator and Chairman of the Education Committee John Hansen and passed the Senate in 1995.  I re-introduced it this year after Bob Huntley made a comment during a joint meeting of the education committees that had the legislature passed this bill previously, there would not be an existing lawsuit today.  

The bill would provide property tax relief by helping with the bonded indebtedness.  It would also help some  bonds to pass if voters knew that the state would provide 20%. 

The bill will now be referred to the Finance Committee where it will most likely be......who knows? After all, we do have a trial going on at the moment!

b)  The Governor's facility bill was sent to the amending order for amendments. The interest forgiveness provision will be taken out and a provision provided for the state building authority to provide loans for school with safety needs. 

c)  The Public School Safety Commission bill was sent to the amending order also and this bill will have "installed" in it the interest forgiveness provision.  The Commission, appointed by the Governor, would decide to forgive up to 5% of the interest on loans issued to schools with safety needs.  

Senator Gary J. Schroeder