Support Constitutional Amendments

by Senator Brent Hill

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I am always hesitant to amend our state Constitution, but when the courts impose their own interpretation of the constitution on the citizens of Idaho, we must take corrective action. For the past century, revenue-producing departments of our local governments, such as hospitals, airports and city-owned power plants, have entered into long-term financing arrangements to purchase their ongoing needs for plant and equipment. As long as the notes or bonds were to be repaid only from the revenues produced by the entity, such financing was considered "ordinary and necessary" and, by virtue of our Constitution, did not require a vote from the citizens. For example, a county hospital could purchase an X-ray machine on a five-year contract without going through the expensive and time-consuming process of holding an election.

In 2006, the Idaho Supreme Court ruled on a split decision to nullify the way these entities have been doing business for over a century. In response, and after almost four years of study and research, the Idaho Legislature overwhelmingly passed three constitutional amendments that will be on November's ballot for ratification by the public.

HJR 4 clarifies that county hospitals, such as Madison Memorial Hospital, can continue to finance equipment and improvements as long as no additional tax dollars are used.
HJR 5 permits airports to finance the construction of needed facilities, such as terminals, runways, and parking structures as long as the users—not the citizens—pay for the facilities.
HJR 7 allows the 11 Idaho cities that operate electrical power plants to purchase electricity when market conditions are favorable, rather than waiting for the next election date.

Passage of these amendments will allow these entities to resume operating the way they have since our constitution was adopted in 1890. We are not "changing" the constitution as much as we are overruling the court's injurious interpretation of its meaning.

There are a number of important factors that influence my support for these amendments:

• The amendments guarantee that no additional property taxes can be used to pay any liabilities incurred under these provisions. Only the revenues from the hospital, airport or power plant can be used to repay the financing.
• Any default would be borne by the lending institution, not the taxpayer.
• The safeguards provided in the Idaho Constitution are preserved.
• The amendments give public hospitals and airports the resources they need to serve their communities through long-term contracts.
• The amendments permit management to make decisions on a timely basis, rather than waiting for the next election before taking action.
• Idaho cities that operate power plants will have the flexibility to purchase electricity when prices are low, reducing the cost of energy to their citizens.

These amendments to the state constitution are vital to the continued success of our local hospitals, airports and cities. They provide protection to the public while allowing these entities to function efficiently. They will help us to stimulate the economy, create jobs, and ensure critical services for our communities. Please join me in voting YES on November 2.