by Senator Brent Hill

Can anybody remember when the times were not hard and money not scarce?
Ralph Waldo Emerson (1803-1882)

The mood was somber in the office Thursday. Our son Ritchie and his colleagues tried to focus on their work, but mental concentration was impossible. One by one, production workers, engineers, and supervisors were summoned into a nearby office. As each returned, his co-workers helped him transfer his personal belongs from his desk into a cardboard box, and he was escorted out of the building. The scene was repeated 1,100 times as Micron employees in Idaho were terminated this week. Those, like Ritchie, who survived found little comfort as they told their friends goodbye.

Micron officials tried desperately to avoid this action. Hoping the world economy would recover, they depleted over $2 billion in cash reserves in an effort to protect their workforce. But the economy has not rebounded and businesses of all sizes have had to face cuts in jobs and operations. It is not a problem unique to Idaho companies, but that fact provides no comfort.

Government is facing identical problems. Idaho has depleted its cash reserves trying to preserve the quality of education and other services from debilitating budget cuts. Although state agencies faced significant budget reductions this year, another 3.5% holdback was required affecting all departments, except public and higher education. But still the economy has continued to weaken and revenues will not cover this year’s appropriations.

Unlike the federal government, Idaho is not permitted to print its own currency. Consequently, the constitution requires the state to balance the budget each year with existing revenues. That is the job of the Joint Finance-Appropriations Committee (JFAC) on which I serve. The committee has no authority to raise taxes or consider any type of revenue enhancements. We do not bake the pie, we merely cut it into pieces to be served.

To meet its constitutional obligation, JFAC was forced this week to propose an additional 2 percent holdback of appropriated funds. Considering the cuts already imposed on health districts, child protection services, drug enforcement, and every other state agency and service, it was apparent that education, which constitutes two-thirds of the state’s budget, would have to share in this smaller holdback.

At the beginning of this legislative session I wrote, "Anyone who tells you we can avoid injuring our children’s education, the safety of our citizens, and the stability of our communities without raising revenues has not crunched the numbers." Since that time, I have worked hard with other legislators to prove myself wrong. Like Micron and other businesses suffering cash flow problems, we have left no stone unturned, slashing programs and budgets across the state. We will continue to challenge every dollar spent, safeguarding the tax dollars with which the citizens of Idaho have entrusted us.

We now look to the House of Representatives—specifically the Revenue and Taxation Committee where all tax bills must originate, to see if the Legislature will restore a portion of the holdback. They must determine whether the damages caused by this most recent holdback and further cuts next year are more severe than the consequences of a tax increase. The decision is not as simple as Micron’s. Decreased demand for its product makes business reductions advisable. However, the demands for public education, law enforcement, and children’s health care do not diminish when the economy suffers. Business can postpone many expenditures, but a child cannot postpone fourth grade. We must encourage our state to look beyond the short term crisis and build an economy that will grow and prosper for the benefit of all citizens over the longer term. We must create certainty out of uncertainty.

While we wait for appropriate action, I thank the many dedicated teachers and administrators in our local schools who continue to provide a quality education to our children. I am grateful for capable and talented state employees who are going on their second year in a row without a raise in pay. And, most of all, I am grateful for the citizens of this community who support sound principles. As a U.S. President stated in another difficult time, "Those dark days will be worth all they cost us if they teach us that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow-men."

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