October 6, 2009. The Night of the Long Knives. With the Governor’s recently announced budget holdbacks, the knives are out again, cutting, pruning and paring programs and services once more. It is becoming increasingly difficult to believe that all of the extant programs will survive this year’s cuts – even more distressing is the likelihood that FY 2011 will produce even more such actions. Idaho’s economy is still quite fragile but does show some resilience compared to many of our sister states, in part because of our historic frugalness and in part because of our diversity.
Actions taken in the last decade have served to aggravate the current crisis, primarily the Kempthorne era tax cut and the Risch interregnum which shifted a major element of K-12 funding from local property tax to the state sales tax. Predictably, the first downturn in the early 2000s resulted in a temporary sales tax increase to make the budget whole, while the current, and much more severe downturn, is being addressed wholly with a meat ax approach – revenue increases, taxes if you will, are totally off the table. I would submit that this one dimensional approach to budget balancing is no longer viable. The object is to equate revenue with expenses; one does not need to be a rocket scientist to figure out that cutting the expense side is the only way of achieving a balance. The Governor’s oft used phrase – we must share the pain – should apply to the private sector as well as the public sector. That’s my view – let me know yours.
August 28, 2009. The Dog Days of Summer. Since my last entry in July, I have attended the initial meeting of the Governor’s transportation funding task force as well as the second meeting of the study group looking into funding the judge’s retirement fund. It is clear that finding new funding sources in this down economy is pretty unlikely given the current environment. About the only good news it that it appears we are either at or near the bottom. How long it takes to develop some real upward momentum is the big question – the current consensus is sometime in the second quarter of calendar year 2010. If that proves accurate, this coming session’s budget setting will be a real blood bath – hopefully the need to tap directly into the state’s reserve/rainy day funds will no longer be in dispute.
One encouraging sign at the initial transportation task force meeting was the Governor’s express statement that public transportation should be part of the mix. It remains to be seen whether his view will bear fruit but the mere fact that he put it on the table was extremely encouraging and, in my view, a candid and realistic expression of a willingness to give public transit issues a fair hearing. I can only hope that the majority party leadership in the House will concur when the next session rolls around.
I intend to make another run at convincing my colleagues in the House Revenue and Taxation Committee that Idaho should join the Streamlined Sales Tax project. This is an informal interstate compact (not yet sanctioned by the Federal Government as our constitution requires) to act as a clearing house for the collection of sales tax presently due and owing from on line and catalog retail sales. Three years ago a study out of Tennessee estimated that Idaho was foregoing revenues of up to $50 million annually from such sales. In an era of drastic program cuts and the potential total elimination of some services, it almost seems criminal not to close this loophole. Allowing any revenues to remain uncollected while reducing or totally cutting off some of the neediest members of society is hard to understand. Hopefully the committee members will be more receptive this time around.
July 24, 2009. The Summer Session. Though technically the legislative session ended (finally!) last May, the interim legislative committees and Governor’s task forces are just now getting into full swing. Health care, transportation related funding, soil conservation, natural resource and energy related issues are among the topics scheduled for presentations, discussions, and policy development over the course of the summer and fall. I will be serving on the governor’s transportation task force – the initial meeting is set for August 6th at the J.R. Williams East conference room. All meetings scheduled by the legislature are open to the public. On occasion in the past the governor has closed some of his task force meetings, but I understand that will not be the case this year. If you’re looking to get out of the heat and are interested in seeing your government in action please stop by. The best reference for the legislative meetings can be found at www.legislature.idaho.gov .
Rooting for the Old Guys. On a personal note I had the opportunity to gallery Tom Watson at Turnberry this last week when he almost pulled off the golfing upset of the century – just short of his 60th birthday he finished in a tie for the British Open, but lost in the four hole playoff with fellow American Stewart Cink. At my age I almost always pull for the gray haired guys. If you’re not a golfer, it probably passed unnoticed. To put it in perspective, it would be like Sandy Koufax starting for Dodgers in the 2009 World Series and coming within one out of a perfect game.
