2010 Legislative Session Preview

The 2010 Legislative Session is less than a week away and the keyword for the upcoming session has already been coined, "Difficult."

As everyone that pays any bit of attention knows already the main issue for the Session will be the budget. As the AP reported, Speaker Denney is taking the position that, "Anything that has a price tag probably won't even get a hearing." Personally, while I understand that money is tight, limiting discourse on issues that have been lingering doesn't seem to be the best idea. The reality is that only 18 of the 105 legislators sit on the State's budget committee, JFAC. So what are the rest of us supposed to do? I'm not saying bills with large fiscal notes should necessarily pass, but to not even have the discussion seems to be a bit obstructionist. What if one of those ideas with a fiscal note had some really positive changes that could help the state in the near term? We may as well have the discussion so that we can become better prepared for later. Anyway, I'll get off from that soap box for now.

I do think that we'll see a big push to shrink state government, but the budget woes will just be a handy scapegoat. It'll be curious to see if Congress sends us anything we need to take action on from Health Care Reform. My guess is yes, but I'm not sure what. In terms of the budget cuts, I am particularly concerned about the budgets for Education (including if not especially higher education) and Health & Wealth. Seeing as how I am on both of the germane committees, I tend to care more about the issues of those departments than those that serve on other committees. My interest was piqued today when I visited the Westgate H&W office and saw a sight that nearly made me cry (literally). There were at minimum 75 people waiting to apply for a litany of social services. Many of the people had looks of despair on their faces and some of shame in their eyes. These aren't the deadbeats people think about that live off the system, these are hardworking folks that have been dealt a bad hand and need help getting back on their feet. It's just not right and contrary to what some people may say, I believe that helping others in a time of need is a proper role of government (but the government shouldn't be the only one helping, more on that later!).

In terms of my work this upcoming session, as I just indicated I'll do everything I can to help others in their time of need. Frankly, that is exactly why I ran in the first place. One of the best things we can do to help others is help them help themselves. That is why I am working on a couple of bills that are intended to create jobs, which I'll elaborate more on in the coming weeks. One of them I am really excited about would help create a fund to provide capital for small startups at no expense to the state. How? Wait and see!

I will also be leading a coalition of Idaho homeless shelters in their pursuit of a two-year temporary sales tax exemption. Before you get too far down the anti exemption expressway, hear me out. The fiscal note is about $15,000 statewide (that's peanuts), but the impact is huge. Considering the fact that a lot of people (if not all) that visit homeless shelters would otherwise probably be accessing state services, I think that this is a no-brainer. Also, philosophically speaking, I believe it is important that state government not be the only one providing social services. To that end empowering the faith based and community organizations like this is a step in the right direction in my perspective.

I also have a couple of education bills that I'll be working to get through. One of them, the Mastery Advancement Pilot Project is likely to cause some discomfort, but I believe that figuring out new ways of doing things in education is past due. The idea has received some press already and hopefully will get more momentum in the next few weeks.

There are a few others that I am working on as well, including local option authority, but in the name of brevity I'll address them in the near future.

Finally in terms of length of the session, I keep hearing that the Session may be over by the first week of April. Of course, I've heard similar predictions before, but maybe they mean it this time. My prediction for an end date is April 9 (calling all bets). While this may indeed be one of the most difficult sessions in a long time, I still believe that difficult is no match for perseverance.

Taxes, taxes, taxes!

In response to some complaints that I heard from residents at a recent District 18 Legislative Forum, I would like to provide the following historical review of Idaho tax policy.

Before the 2006 Special Session here is what Jim Risch had to say (link here):

“The net result of my proposal is a $50 million dollar tax cut that will take affect this year and every year. The maintenance and operations levy is the driver of property tax increases and this will remove the cause of the enormous increase in property taxes when values escalate. Idahoans should not have to worry about being driven out of their homes by property tax increases just because they had a huge rise in the value of their home. The primary beneficiary of this property tax relief is middle-income Idahoans.”

After the 2006 Special Session here is what Jim Risch had to say (link here):

“I am overwhelmed by the two-thirds vote by both the House and the Senate for property tax relief. Difficult issues usually result in a close vote, but Idahoans saw that this plan provides immediate and permanent property tax relief while substantially helping education."

Last summer, here is what House Republican Leadership had to say about tax exemptions:

"I'm going to work through it, you bet," [House Tax Chairman Dennis Lake] said. "There are issues on the list that obviously I don't agree with, but still, we'll work through them." (link here)

"Most of these exemptions have a strong constituency politically so the ability to go and do a massive overhaul - don't hold your breath," said Rep. Scott Bedke, R-Oakley. (link here)

Here is what was said this week by those same folks (link here):

"What's broken? We have a tax system that is bringing in more money than we are spending," [House Assistant Majority Leader Scott Bedke] said.

"What I have heard from this committee is, once an exemption is established it should stay established," Lake said.

And finally, lets consider the thoughts of these same lawmakers last year during a debate on a bill that would have given a huge tax break to business (link here):

Rep. Scott Bedke, R-Oakley, sounded a similar note. “You need to ask yourself who is demanding the services” that impact county budgets, he said. “Is it ag? Is it mining and timber? I don’t think so. It is residential.”

"Yes, for this year, we do shift some taxes,” said House Tax Chairman Dennis Lake, R-Blackfoot.

First, let me make a few observations:

1. The beneficiaries of the 2006 Special Session property tax bill has not been "middle-income Idahoans."
2. The 2006 Special Session property tax bill has not provided "immediate and permanent property tax relief ."
3. Attempts to reign in the dozens of business tax exemptions were half hearted.
4. There has been a systematic and calculated agenda to continue to shift more of the tax burden on to homeowners.
5. Current House Majority Leadership is more interested in offering tax relief to businesses than they are to working families.

Let's be clear, the only way that homeowners will see real tax relief is if the tax burden is shared more equitably. This means that we need to eliminate some of the sales tax exemptions that are in reality nothing more than corporate welfare. It is undeniable that this will not occur as long the Idaho Legislature continues to be led by the current leadership team which takes its marching orders from the likes of IACI and the Idaho Association of Realtors. This is not political rhetoric, but rather a simple observation of quotations made by these legislators. I've said it before and I will say it again, I will not support legislation that will have the intended consequence (whether expressed or implied), of shifting more of the burden to Idaho families. I am committed to ensuring that Idaho is best place to do business, but doing so on the backs of Idahoans isn't good for anyone in the long-run. The approach must be worker-centric and business-centric, not one or the other. Workforce development and training must be our aim, not more tax cuts. If there are highly qualified individuals, there will be an employer ready to offer them a good job. This helps workers and it helps business.