The 2009 Legislative Session
by Senator Brent Hill
A struggling economy dominated the second-longest Idaho Legislature in 119 years, dragging it into May. Growing unemployment, particularly in the construction and high-tech industries, devastated the lives of some of our fellow Idahoans and led to significant revenue shortfalls in the state. We responded by cutting state government—trimming some programs and eliminating others. Even the withdrawal of our rainy-day funds and the influx of federal stimulus money were not sufficient to prevent reductions in government services, including cutting average teacher compensation by 2.63% and state employees by 3% to 5%. Both the private and public sectors of our economy have been severely affected by the current worldwide recession. Following is a schedule of the General Fund budget cuts faced by some of our agencies even after accounting for monies from the federal stimulus package:
|
FY 2009 |
FY 2010 |
|
|
Budget |
Budget |
Reduction |
K-12 Public Schools |
1,418,542,700 |
1,369,850,600 |
3.4% |
Colleges and Universities |
285,151,500 |
258,591,900 |
9.3% |
Department of Corrections |
175,915,200 |
150,678,400 |
14.3% |
Department of Environmental Quality |
19,625,000 |
15,660,400 |
20.2% |
Department of Agriculture |
17,046,500 |
11,258,700 |
34.0% |
Parks and Recreation |
16,072,000 |
6,762,000 |
57.9% |
Department of Commerce |
9,199,200 |
4,598,800 |
50.0% |
Transportation Funding
The Legislature’s refusal to raise fuel taxes and registration fees while our citizens are facing such difficult economic circumstances was challenged by Governor Otter’s demand for increased transportation funding. The governor wanted to raise fuel taxes, registration fees, truck permits, and taxes on rental cars to generate an additional $174 million annually. After weeks of negotiations, the Legislature, provided just over $50 million in transportation funding without raising fuel taxes. We recognize that the competitiveness of our economy and the safety of our citizens rely heavily on our transportation system and this is not a permanent solution. Supplemental funding for transportation needs will be visited again by the Legislature when our economy has recovered to some degree.
Election Reform
Most people agree that the most significant legislation to emerge from the 2009 session was the consolidation of Idaho elections. There are 1,245 taxing districts in the state and, with few exceptions, each has been able to choose any day and any polling place to hold an election. Too often, Idahoans miss elections on school bonds, supplemental levies, fire districts, school board trustees, library districts, etc., because the election date is unpredictable or even obscure. Election reform legislation, sponsored by Representative Dennis Lake in the House and by me in the Senate, consolidates all elections on four dates and always at the same polling places beginning in 2011. It took fourteenth attempts since 2000, but election reform is finally a reality in Idaho.
Eastern Idaho Water Protected
After years of disputes with Idaho Power Company, an agreement was finally reached that will allow Idaho to use water to recharge the underground aquifer that many of our Eastern Idaho irrigators rely on. Idaho Power had contended its water rights had priority over the state’s right to recharge the Eastern Snake Plain Aquifer. But the Legislature’s determination dominated the negotiations that led to the settlement. The settlement reaffirms that the state’s citizens own the water that flows through Idaho. That means decisions on how water is used in Idaho will be made in a public forum instead of a corporate boardroom.
Idaho Adopts Federal Tax Code
The American Recovery and Reinvestment Act (ARRA), passed earlier this year by Congress, contains a number of income tax benefits and incentives that would affect Idaho tax law if the Legislature adopted its tax provisions. Idaho generally follows the Federal Internal Revenue Code, but usually waits until after the year is over to decide. Postponing that decision until the next legislative session would have left Idaho citizens not knowing how their 2009 financial transactions would be taxed until after the year was over and would have left the State Tax Commission scrambling to design the 2009 tax forms. Recognizing the consequences, the Legislature wisely adopted the tax provisions of ARRA, providing $14 million additional tax savings to Idaho taxpayers.
Low Idaho Taxes
Idaho’s economy is one of the best in the nation, thanks to the prudence and foresight of its people. By limiting government growth and balancing our budget, Idaho has the lowest debt and highest bond rating in the country. In a year when many other states including Washington and Oregon, are looking at raising taxes to cope with their budget crises, Idaho taxes remain low. Just another reason for living in Idaho!
Idaho State Capitol
Renovations begun on the Capitol Building in 2007 will be completed this fall. The hundred-year-old structure has been restored to its original beauty with added fire protection and safety features. Underground wings will provide hearing rooms for the public to attend legislative meetings and make state government more accessible to the people it serves. Over a century ago, the people of Idaho showed great dedication to the building that symbolized their freedom and state sovereignty. We can once again experience that enthusiasm.
My Thanks to You
Idaho government works well because Idahoans are engaged in the process. I greatly appreciate hearing from my friends and neighbors regarding issues that affect their families and businesses. It is exciting to work with my colleagues in the House, Representatives Dell Raybould and Mack Shirley, to serve the citizens of Idaho. Together we will weather this economic storm and reemerge stronger, more efficient and better prepared for the future.