2011: A Time for Courage

by Senator Brent Hill

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As the Idaho Legislative Session approaches, I have been asked about a number of issues that seem to be of particular interest. Although my legislative crystal ball has been on the fritz lately, I will try to address some of these recurring concerns:

Q: What will be the legislature's top priorities in the 2011 session?

A: 1. Money, 2. Money, and 3. Money. Oh, and did I mention money? With state revenues down over the past two years, Idaho is facing its greatest financial shortfall ever. That translates into further cuts in almost all government services, including Medicaid and public education.

Q: But isn't Idaho's economy improving now?


A: Yes. We are grateful that many businesses are expanding and more people are finding work. Idaho is better off than many other states due to a number of things we have been doing right: a) the rainy-day savings accounts set aside by the legislature helped us mitigate budget cuts, particularly to public schools; b) Idaho has balanced its budget every year without incurring debt; c) we have resisted pressure to increase taxes that would have stifled our economic recovery and placed additional hardships on victims of this recession, and d) as a result of these factors, Idaho has maintained the highest bond rating available, saving the citizens of Idaho millions of dollars in interest paid by municipalities and school districts.

Q: If state revenues are increasing, why must we make additional budget cuts?

A: Although Idaho has made significant and sometimes painful budget reductions, we have still been spending more than we have been taking in. We filled the gap with our rainy-day funds and with stimulus monies from the federal government. Those resources are now depleted, forcing us to drop our level of spending down to the level of our revenues. Consequently, we are faced with further cuts even as revenues improve.

Q: Can't the cuts be made without affecting public education?

A: Education consumes 65% of our general fund budget. Add that to the 20% allocated for Health and Welfare (most of which is Medicaid) and the 9% for public safety, and we are left with only 6% to run everything else in state government, including state parks, public health districts, water resources, etc. With state revenues declining over 22%, it is easy to see that we could eliminate all of the rest of state government, and still not be able to balance our budget. Education is always last to see reductions, but this year's shortfall may require deeper cuts in education and Medicaid programs.

Q: Why don't we raise taxes in order to avoid further cuts?

A: That is the kneejerk reaction of many states. Since the recession began, 17 states have raised sales tax, 13 have raised income tax, and 22 have increased excise taxes. Some of those states were forced to hike taxes just to service the huge amount of debt they had amassed. Even with tax increases, 92% of the states have had to make significant cuts in all major areas of state services. Two-thirds of the states have cut public schools and 86% have reduced their support for colleges and universities. Most states have also had to decrease health care and services for the elderly and disabled.

Q: How will we survive these onerous budget reductions? 


A: All of us have suffered as a result of this recession. But with these challenges come opportunities for improvement. We learn to seek efficiencies, value frugality, and help one another. Already, we have seen neighbors reaching out to neighbors in need. We have observed more parental involvement in our schools and increased monetary contributions to public charities and service organizations. State employees have taken pay cuts and yet some volunteer to work during unpaid furloughs. Teachers have maintained quality educations for our children even as they face incredible challenges. Throughout this state we have witnessed uncommon courage providing assurance to all of us that our future is ever bright. As President Theodore Roosevelt reminded us, "It is only through labor and painful effort, by grim energy and resolute courage, that we move on to better things."