vision2020
Legislative Newsletter V - Feb 4-8
Dear Visionaries:
The fifth week of the Idaho Legislature continued to be dominated by
bad economic news. Tax revenues fell below projection in December by $20
million followed by a $17 million drop in January. JFAC is utilizing $19
million from the tobacco payments to the state coming in April, and is
using significant monies from the Capitol Restoration Project and the
Budget Stabilization Fund. JFAC approved a bare bones $923 million budget
for K-12 education; however, if tax revenues continue drop further,
holdbacks may be necessary. Governor Kempthorne is trying to protect the
economic impact on K-12 education. Higher Education and State Agencies are
taking the major hit to date with about a 10% reduction with holdback and
cuts for the 2003 fiscal year.
1. Economic Impact on District 5 -- The economic impact on Dist. 5 may be
more serious than other areas of the state. About 60% of the jobs in Latah
County depend on the University of Idaho. Another 10% of the jobs are with
the school districts. The University of Idaho may lose up to 150 faculty
and staff positions, and the Moscow School District about 35 or more
teacher and aide positions. I talked with Paul Kimmell of the Moscow
Chamber of Commerce to see if he could come up with what the total economic
impact on Latah County might be.
We not only have the economic impact to consider, but the loss of
critical educational programs and professionals at both public school and
university level. The impact will cut into both the muscle and bone of
these programs. Many outstanding teachers and researchers will retire
early, lose their positions, or simply take another job out-of-state. It
will take years to rebuild these outstanding programs, and the big losers
are Idaho youth and the business community our educational institutions
serve. Frankly, I've been amazed to see both legislators and the general
public somewhat complacent about this situation. I will be receiving about
1,200 signatures on petitions next week urging the Governor and the
Legislature to place a moratorium on the tax cuts enacted last year. Gov.
Jeb Bush and the Republican Legislature in Florida did this in December to
"save" education.
2. Options -- I've been working on three options that could help our
school districts and Higher Education.
A). Moratorium on Tax Cuts -- Rep. Donna Boe and I are sponsoring a bill
that would call for a 50% moratorium on the personal income tax cuts
enacted last year. This would generate an estimated $30 million dollars
which could be utilized for K-12 and Higher Education. The advantage of
this approach would be that the $30 million would be available each year
since the tax cut was made permanent. We are only asking for a two year
moratorium since historically the economy should approve.
B). Facilities Fund -- Last year the Legislature approved about $80
million for facilities including the Teaching Learning Center at the
University of Idaho. Gov. Kempthorne placed a freeze on spending the
funds. Rep. Gary Young and I both strongly feel that some of that money
could be utilized for people and programs in Higher Education. We are
having a bill drawn up that would preserve $60 million for facilities but
free $10 million for fiscal year 2003 and $10 million for fiscal year 2004
for higher education. This would provide additional monies for Higher
Education to protect priority programs, faculty, and staff. It was
disturbing to find out that when JFAC members asked University Presidents
whether buildings or faculty were more important to save that only
President Bob Hoover and President Jerry Meyerhoffer (CSI) reaffirmed that
people were their top priority.
C). State Guaranteed Support for Public Education -- Supt. Daryl
Bertelsen, Troy, Rep. Young, Rep. Mary Lou Shepperd, and I are introducing
a bill to help our poorer natural resource base school districts. Property
values in about 10 small rural school districts have fallen below December
99 values, and thus less property taxes have come to the school
districts. The fiscal impact is about $300,000 and would be paid out of
the State Budget Stabilization Fund.
3. There is no guarantee that any of these bills will even be given a
hearing in the House Revenue and Tax Committee by Chair, Rep. Delores
Crow. Citizens need to convey their support to Gov. Kempthorne, Rep.
Delores Crow, JFAC Co-Chairs, Rep. Maxine Bell and Sen. Dean Cameron, and
other legislators. There were many other events taking place in the
Legislature this week but by far the most important issues that will impact
Latah County and the rest of the state are outlined above.
If you have comments or would like to communicate with me, you can contact
me at ttrail@state.house.id.us or phone 332-1202
Rep. Tom Trail/Dist. 5
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