Legislative Update X - March 9-16, 2001

[RepTrail <RepTrail@infotrail.com>]

LEGISLATIVE LETTER X--March 9-16, 2001

The 2001 Idaho Legislative Session is rapidly coming to a close. The final 
tax cut proposal is really the biggest hurdle before we call sine die. 
There is a possibility that we may wind up the session on the 23rd if an 
agreement is reached, but there is no guarantee at this point.

1. Tax Cuts  --  The Senate has basically agreed to limit their tax relief 
package to about $140 million (just about what the Gov. had orginally 
proposed), and less than half of that in permanent reductions.  There was 
also an agreement which would earmark between $10-$20 million to help 
school districts meet building needs and up to $10 million to cover other 
needs.  The Senate is still focusing on individual and corporate tax rate 
reductions, an increase in the income tax credit for sales tax paid on 
food, deductibility of health insurance premiums, personal property tax 
relief and incentives for broadband technology expansion.

The House plan is dramatically different from the $200 million tax cut the 
House approved. I talked last week with a number of Southern Idaho farmers 
and they felt that we should accept a smaller tax cut package and put more 
in the Budget Stablization Fund.  Everyone agrees that we are in an 
economic downturn.  I'd support a smaller accepting a smaller total package 
with fewer permanent tax cut rates on a level that would keep revenue and 
ongoing spending in balance.  The public school and higher education 
budgets are obvious targets for tax cutter to cut in order to reach the 
$200 million target.

2. HB71A  --  Minimum Wage for Farm Workers  --  This bill passed the House 
on Monday on a 41-28 vote, and it is now on it's way to the Governor for 
signing.  This marks the end of a four year struggle for economic and 
social justice for Idaho's farm workers.  The bill will cover about 95 
percent of farm workers. There are about 34,000 farm workers at peak summer 
session working in the fields.

3. Tussock Moth  --  State forestry officials indicate that more than 
100,000 acres in Latah and Benewah Counties are infested with the Douglas 
Fir tussock moth.  The total acreage may actually be greater.  The moth 
defoliates trees by consuming the new needles and basically kills the 
tree.  The potential damage is estimated at $45 million.  Rep. Young and I 
appeared before the State Land Board last Monday to testify for increased 
state support with the spraying program.  The Land Board supported a 95% 
state - 5% private landowner match to pay for the program which will cost 
about $28/acre. This will certainly be of economic assistance to an 
economically depressed timber area.

4. Idaho Public Television  --  for IPTV it is back to work as usual. The 
Senate approved the new budget on Tuesday along with the $6.2 million 
request for digital conversion, and the House will consider the budget next 
week.  Most constituents indicate their relief to me to let IPTV get back 
on the job without the excessive legislative harassment experienced this 
past year.

5. Tobacco Stings  --  The House State Affairs Committee approved a bill 
that would require that the state conduct about 300 random inspections 
instead of one per store per year.  Idaho must do the inspections or lose 
millions in federal funds.  A major change is to move the responsibility of 
the inspections from Health and Welfare to the Idaho State Police.

6. School Facilities  --  The House Education Committee will consider 
SB1070 with amendments.  The bill will do two things: it directs that 
several existing sources of state funding for schools, including lottery 
proceeds, be spent first for building safety needs; and it proposes that 
the new money be parceled out to every district in the state using the 
state's funding formula. The new money would offset property taxes that 
otherwise would be paid for bond payments or levies.  The Senate apparently 
would approve between $10-$20 million to fund the bill.

The House has already passed HB315 wich would partially fund interest 
payments for certain troubled schools if they take ut commercial bank loans 
to fix their school safety problems.  Property tax increases would pay off 
the loans.  I concur that passage of both bills is essential to help 
resolve our school facilities problem and should go hand in hand.  There is 
a possibility with a strong House attitude not to fund any motar and brick 
that it could pass 1070 with no funding and then the Senate might kill 
HB315, and we would have done nothing this year in terms of school 
facilities.  This would provide the Judge with plenty of reason to simply 
lay out in dollar terms what the state must do to tackle the school 
facilities issue.  Even if we pass both bills with funding, there is no 
guarantee it will satisfy the Judge.



Rep. Tom Trail, district 5
ttrail@house.state.id.us
Phone: 208-332-1202

  I would like constituents to contact me by e-mail me with their ideas, 
comments and recommendations.

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