The Case of the Shrinking Budget. The primary battleground in the Legislature this session will be in the Senate/House Joint Finance and Appropriations Committee (JFAC). As the 2008 session drew to a close it became apparent that revenue streams were shrinking in Idaho as well as nationwide. Since then, the only real change is the depth and extent of that shrinkage. Sales tax revenues in particular have been hard hit as families seek to conserve their ever shrinking wallets. Aggravating this is the continuing job loss both locally and nationally; the growing spending hold backs ordered by the Governor, while clearly required to meet our balanced budget mandate, will inevitably lead to layoffs in the governmental sector matching those in the private sector. The bottom line is that virtually no new programs will survive in JFAC’s budget setting sessions, and many existing programs will be either reduced or curtailed. The best approach is to assess the reductions in a selective manner, rather than a simple across-the-board approach. Certain programs experience increased demand during downturns and every effort should be made to match the limited resources to those programs.

 

Transportation Funding. I will be pushing for enactment of a Local Option Funding bill again this session, without the unnecessary constitutional amendment put forward last session.   While there is little likelihood of any city or county putting such a proposal forward in the current economic downturn, it is a good time to get the authority to do so on the books. The will enable local government to study their needs well in advance and determine whether this funding approach fits their particular project. When the economy does turn around, they will then be positioned to move forward directly with minimum delay.

 

Protecting Paychecks. Recent business closures here in the Treasure Valley have brought to light a little known but painful consequence to affected employees. Workers with earned vacation pay on the books belatedly discovered that their perceived entitlement was so much vaporware when they showed up for work on a Monday morning and found the doors locked. The proposed change to Idaho’s labor laws would automatically include accrued vacation time as earned compensation due and owing upon termination or closure of a business. While many, if not most, responsible employers already operate on this basis, it is in fact discretionary. The bill would change that with appropriate limits on the size of the employer and the reasons for a termination.

 

Temporary Rule-making Criteria. At present Idaho law sets forth three criteria, one of which must be met, before the governor can implement a between sessions temporary administrative rule. One criterion is whether the rule change “confers a benefit”. My review of the legislative history of the law at issue leads me to conclude it was intended to be used when a change in Federal law or other supervening cause dictated a rapid response in order not to lose an existing benefit or newly introduced one. This summer it was invoked in order to take away existing employee benefits on the grounds that the net result would benefit the state as a whole, or the taxpayers of the state. This was a good example of an exception swallowing the rule. While the Agencies involved change their rationale as the rule moved forward through the process, I believe it essential to clean this up now to avoid potential future misuse or abuse.