Pre-Legislative Update from Rep. Trail

[RepTrail <RepTrail@infotrail.com>]

PRE-LEGISLATIVE NEWSLETTER

Visionaries:

First, I have some good news from Boise regarding the Idaho Promise 
Scholarship Program:  the Governor in his State of the State address 
recommended funding the Idaho Promise Scholarship program at the $6,000,000 
level!

As for the legislature, I've just returned from Boise after attending two 
committee meetings.  I'll address some general issues that came out of the 
meetings as well as those that face us for the upcoming session.

1. Millennium Fund  --  I serve as a member of this committee.  Idaho 
receives about 9 million dollars/year from the Tobacco settlement. This 
will go up to $25 million/year in a few years.  All of the funds are 
invested and we utilize only the earned interest for programs.  The 
recommendations from the Committee to the Governor and JFAC are to support 
tobacco and substance abuse prevention and intervention programs.  We 
recommended funding for  catastrophic health care, tobacco counter 
marketing, smoking cessations, youth asset building, youth courts, status 
offender programs, adolescent pregnancy prevention, substance abuse program 
evaluation, and youth surveillance enforcement program for tobacco 
access.  We have about $3 million to spend this year. In another 5 years 
Idaho should have about $10-$15 million a year to spend.


2. State Employee Compensation Committee  --  We reviewed the Governor's 
recommendations for state employees. The returns from the PERSI gains 
sharing program were reviewed by Alan Winkle, PERSI Director.  Active 
employees will received about $60 million to put into tax free 401k 
accounts.  Employers will received about $75 million which will be used as 
credits against future contribution payments.  Retirees will received about 
$18 million which  will represent about a month's extra benefit 
check.  Checks go out this week.

3. Economic projections  --  Evidence is clear that the Idaho economy is 
slowing down.  It appears that the Governor's Economic Projection Committee 
will forecast a growth rate of about 2-3 % down from 6 percent from the 
previous year.  Many rural areas in Idaho are in recession.

4. Taxes and Education  --  We'll probably have about $200 million in the 
surplus to look at, but even some of the projected surplus is contingent on 
future tax receipts.  I support utilizing the surplus to help build up the 
education infrastructure, rural economic development, and help with medical 
health insurance and care.  I've received no support from District 5 
constituents for permanently lowering the corporate income tax rate or 
individual income tax rates.  There is strong support from constituents for 
property tax relief.  This can be coupled with support for our educational 
infrastructure.

      There is also support for reducing or eliminating the sales tax on 
groceries.  I support this approach.  It would cost the state about $100 
million/year and the savings would be spent in local communities.

      I support taking $60 million from the surplus and providing every 
school district with funding to relieve about 10% of their bond 
indebtedness.  Schools that have no indebtedness would put their share in a 
dedicated school facilities fund.  This would help the school facilities 
problem as well as serve as property tax relief.  I also support putting 
$25 million/year from the general fund into the school permanent building 
fund.  School districts could then apply for funds on a matching basis for 
school construction.  This would also serve as property tax relief.

      The Legislative strategy will be to try and resolve the tax cut 
scenario early in the session.  There will be strong support to take about 
$40 million from the surplus to help our universities to speed up building 
process.  The University of Idaho could gain about $8-9 million for 
construction of priority projects.  This is a great opportunity to use one 
time money wisely.

      Faculty salary equity for institutions of higher education will be 
addressed. The Governor, Legislative leaders, and the Idaho Association of 
Commerce and Industry will be supportive.  Dr. Marilyn Howard, SPI, is 
advocating increasing beginning teacher salaries from $22,000/ year to 
$24,500.  This has my support.  I advocate a goal of  $30,000/year for a 
public school teacher in Idaho. I'm also working on a loan forgiveness 
program for teachers.  This would help in recruiting and retention of 
teachers.  Teacher shortages are becoming major problems especially in 
rural areas.

5. Rural Economic Development  --  Our rural areas are already in economic 
recession.  I believe the Governor will announce an rural economic 
initiative.  I proposed taking $40 million from surplus and setting up an 
economic rural development trust fund with the interest being utilized to 
help rural communities in attracting business and helping to build up an 
appropriate infrastructure.  Improving education in rural areas would also 
be needed to attract businesses.

6. Other issues of importance  --  I'll be supporting 1) minimum wage 
coverage for all farm workers in Idaho, 2) legalization of industrial hemp 
as an alternative crop for Idaho farmers, and 3) elimination of property 
tax on farm equipment for farmers.

      There will be many other issues of importance that I'll write about 
in the weeks to come.

7. Communications  --  You can send e-mail to me at 
either  ttrail@house.state.id.us
or infocntr@lso.state.id.us

My desk phone is 208-332-1202
I can receive fax's at 208-332-1000.
My mailing address is
Rep. Tom Trail, Idaho State Legislature,
State Capitol Building,
P.O. Box 83720.
Rep. Tom Trail/Dist. 5