Legislative News 2009
The 2009 legislative session lasted 117 days, the second longest session in history. Budget challenges with declining revenues and the stimulus package plus power struggles between the Republican governor and the ultra right Republicans in the House were the main reasons for the lengthy session. The length was certainly not caused by the number of bills produced because the 338 bills enacted into law is the lowest number in the last ten years. At a cost of $30,000 per day, taxpayers will pay approximately $3.51 million for the unproductive 2009 session.
Budget
The Joint Finance Appropriations Committee (JFAC) started early and proceeded rapidly to adjust the 2009 budget and set the 2010 budget. Revenue projections for FY2009 showed a decrease of 12 percent from the previous year and an additional decrease of 4percent for FY2010, the first time in history that Idaho has had two successive years of negative growth projected. News that the Stimulus Plan was signed brought budget planning to a temporary halt while various agencies and individuals submitted their plans on how to spend the more than $1 billion designated for Idaho. Legislators differed on their opinions on how the stimulus monies should be used. Some felt that significant cuts were necessary in order to stretch revenues through 2011. Others, hoping that the economy will stabilize by 2011, felt that the stimulus monies and our “rainy day” funds should be used now to jump start Idaho’s economy and get people working again. In the end, we settled for some place in the middle, using some stimulus monies and rainy day funds to plug a few of the holes in the budget, but not all. The 2010 General Fund budget reductions for state agencies and institutions were significant, averaging 12.8 percent below the original FY2009 appropriation.
Stalemate in the Statehouse
Governor Otter's proposal's to raise the gas tax was the focus of a Republican vs. Republican standoff. A recent audit of the Department of Transportation revealed that Idaho needs $240 million just to maintain our highways, roads and bridges. The governor made repeated attempts to raise part of this amount by offering different versions of a gas tax increase and other measures. The Senate supported the governor, but the House (all revenue bills must start in the House) repeatedly rejected the governor's proposals. Frustrations on both sides led to the Governor's veto of 35 appropriation bills, ( the legislature cannot adjourn until the budget is set.) The House then voted to pass the vetoed bills again and sine die, or adjourn for the session. However, the Senate must concur on appropriation bills and on a sine die decision, so these efforts were merely a symbolic and expensive show of power, and I opposed them.
Transportation Funding
I originally opposed the gas tax also, because it seemed wrong to cut other state services such as education at the same time that we increased the gas tax. When it became clear, however, that we were going to be successful in our efforts to leverage our support for the gas tax to help education, I felt more comfortable voting for it. The final funding legislation for transportation included shifting the dedicated funding for the Idaho State Police and the Department of Parks and Recreation to the State Highway Funding formula beginning in FY 2011 and creating a legislative task force to examine alternative dedicated funding options for those two agencies. This was a face-saving measure for both the governor and House leadership. If alternative funding is not found, the result would be dependence on the General Fund where those agencies would compete with Education, Health and Welfare, Corrections and other agencies for funding. I therefore voted against these bills. Some modest increases in motor vehicle fees, elimination of the ethanol exemption from fuel tax plus this final bill will raise about $54.2 million - far short of the $240 million needed to maintain state roads. Local highway districts will have to settle for $17 million provided by the federal stimulus dollars. We are likely to wrestle with transportation funding again next year.
Public Education
One of our biggest fights this session has been over how to minimize cuts to the public education budgets in these difficult economic times. I have always felt that education is an investment in our children's future and as well as our state's economic development and its success should be one of our top priorities. The education budget was cut by $48.7 million, the first-ever cuts to public education even though more than $130 million education dollars were available in various savings accounts. Some lawmakers attempted to use this financial emergency to significantly change education policy. We started the session with bills which would have rolled back the authority of local school districts and gutted teacher contract rights. In reaction, intense negotiations among a small group of legislators and education stakeholders (7:30am every day for three weeks!) produced H252. This law spells out specific conditions to declare a financial emergency and assures full due process rights for teachers when it is necessary to re-open and re-negotiate contracts. School District 25 used this procedure in handling our district's financial emergency.
House and Senate Democrats fought very hard to lessen the severity of other education bills. Working with other concerned legislators, we defeated attempts to eliminate funding for student field trips and for the Teacher Early Retirement Program. We were unable to block the one year freeze on the experience factor for teacher salaries.
Base salaries were decreased by 5 percent for administrators, 2.63 percent for teachers and classified staff.
Other Legislation
State Employee Pay Cuts - In order to meet the lowered spending target, JFAC reduced personnel costs for all agencies, including those with dedicated and federal funds, by 5 percent for FY2010. Agency heads are given discretion to accomplish this reduction through furloughs, salary cuts, leaving vacant positions unfilled, and lay offs. The governor was allotted $7 million to use, at his discretion, to help in critical situations where this 5 percent reduction would be especially difficult. The option of using stimulus funds to reduce the total personnel cuts to 3 percent passed the Senate, but failed in the House, although I voted for the bill.
Legislative Pay - Although legislators' salaries are set by the Citizens' Committee on Legislative Compensation, not by JFAC appropriation, legislators did vote to reject the 5 percent salary raise and per diem expense increase recommended by the committee, feeling that it would not be fitting to take a salary increase while all other state employees were having their salaries cut. This applies both to the 2009 and 2010 legislature.
Grocery Tax Rebate - Legislators kept their commitment to raise the grocery tax credit by $10.00 per year until it reaches $100 per person. So when you file your state income tax next year, you can claim a $40 per person grocery tax credit. Add an extra $20 if you are a senior or if you earn less than $1000 a year. My concern is getting the information to those who don't earn enough to file an income tax return since these may be the people who need the rebate the most. I welcome your suggestions on this problem.
Child Care Licensing - One success to celebrate! After a five year effort by the sponsors, the legislature finally agreed on a plan to expand day-care licensing and criminal background checks for child-care providers state wide. Most cities in Idaho already have more stringent regulations, but now even children in rural areas will be protected.
Colleges and Universities - Idaho's four institutions in the college and university system reflect an 11.9 percent General Fund reduction. The Center for Advanced Energy Studies (CAES) where Idaho State University partners with University of Idaho and Boise State University in energy research will receive $1.5 million in stimulus funds.
Election Consolidation - Legislators passed a bill which will consolidate elections into four elections dates in May, November, March, and August, with counties handling all elections. Partisan elections will take place in even numbered years; non-partisan elections in odd numbered years. This will supposedly end "stealth elections" (when only the interested parties even know there is an election ) and make it easier for voters. I think it could be more confusing for voters if multiple districts are combined, and districts have different boundaries for qualified voters. For example, what happens to the voter who wants to vote for a school board member, supplemental levy, district judge, and city council member? How many different ballots would that voter receive and will he or she understand the issues in each decision? I voted no.
High Performance School Building - provides a voluntary incentive to school districts to build high performance, more energy efficient buildings at no added cost to the state. High performance school buildings can save as much as $75 million in energy costs over the 100-year life of the building. This is a win-win for the state, the schools and the environment.
Personal Achievement
With my broken arm in a cast, new computers and new soft ware this year, I was worried about my ability to work at full speed during this session. However, my arm healed and I got used to the computer and software and was able to successfully sponsor three bills as well as keep up with other legislative duties.
H121 adds a check-off donation option to the Idaho Income tax form for contributions to the Idaho Food Bank. At a time when demand for food donations has greatly increased, this will give Idahoans another means of contributing to the Idaho Food Bank. I really appreciate Roy Lacey of the Pocatello Food Bank for his help with the bill.
HCR 23 - recognizes the disparity in pay between working women and men and the consequences for the state and for their families. The resolution designates April 28th as Equal Pay Day
S1078 - requires the Superintendent of Public Instruction to make an appropriate order when school district boundaries have been altered by a school election, consolidation or de -consolidation
S1227 - the Going Home Bill
I think that legislators were getting so desperate to end this session that they were willing to vote for this omnibus appropriation bill. S1227 allows for a fund transfer from the Public Education Stabilization (Rainy Day) Fund and the Budget Stabilization Fund to help the Governor with any additional General Fund revenue shortfalls in FY2009 that can't be handled with hold-backs or reversions. The Governor can access up to one-half of the balance in each of these funds, or approximately $124 million.
For FY 2010 - If the projected fund beginning balance of $51 million does not materialize, this bill restores the balance up to $50 million equally from the two stabilization funds. Additionally, $30 million is transferred from the Budget Stabilization fund to the General Fund to cover FY2010 original appropriations. The bill also eliminated any hope of reducing cuts for state personnel costs to 3 percent instead of 5 percent. With a few exceptions, this passed on a party line vote. I voted no.
Looking Forward to 2010
We will start the 2010 session in the newly remodeled Idaho Capitol Building. The contractors assure us that the new bigger, better statehouse will be ready to move into next year.. I hope that it will inspire us to pass smarter, better legislation. The remodeled statehouse annex has worked well for us the past two years, but perhaps we will all be more pleasant and more efficient in our new digs. I'm looking forward to it.