idaho legislature

‘Meet the Press,’ Idaho Style

By Sharon Fisher, 2-16-10

Public schools may be held harmless in 2010 through the use of reserve funds, and the $71 million that might not be needed to pay for increased Medicaid costs would be kept as a reserve fund rather than appropriated, Idaho legislative leadership told the Idaho Press Club at their annual lunch meeting today.

Naturally, the budget situation—even more dire now that the 2010 budget now needs to be cut by $109 million, after the Joint Finance-Appropriations Committee accepted a figure for 2010 revenue that was $69 million lower than the one used by Governor C.L. “Butch” Otter, which was itself $40 million lower than the figure the 2009 Legislature used—was a major part of the discussion.

“This is a budget-driven session,” said Senate President Pro Tempore Bob Geddes, R-Soda Springs.

Senator Dean Cameron, R-Rupert, and Senator Shawn Keough, R-Sandpoint, had said last week they were working on a plan that would hold public schools harmless during the current budget year. Currently, public schools are slated to take at least a $28 million hit, which would be challenging at any point but is particularly difficult to do this late in the year.

The plan, said House Assistant Majority Leader Scott Bedke, R-Oakley, is that instead of using reserve funds in 2011, to use those reserve funds in 2010 and make cuts in the 2011 budget instead, “when everyone sees them coming and they’re factored into contracts,” he said. Alternatively, there may be some combination of holdback and using reserve funds, to, if not keep public schools whole, keep them “wholier,” he said.

Otter’s budget recommendation also included $71 million from the tobacco-funded Millennium Fund, to be used in case the Medicaid federal match goes back to its normal level. There has been some discussion in recent weeks that the Federal government may continue the higher match rate, known as F-Map. The legislators were asked, if that were the case, what would happen to the $71 million. Bedke said it would likely be used as a rainy day fund rather than appropriated, and Geddes noted that, with a jobs bill sponsored by Senator Harry Reid including the F-Map increase being held back, it could be October before such an increase.

In response to a question about fundamental change in Idaho government due to the budget situation, Bedke said some people may be sitting on such proposals. “In a couple of weeks, when the numbers become draft budgets, you’ll smoke out some of these ideas,” he said. In addition, Geddes said, agencies will be forced to make some of those changes themselves when the budget cuts are made. “It will force agencies to change the way they do business.”

The issue of raising revenue also came up. “It’s not ever easy to raise taxes in Idaho,” said Bedke. “And with the current makeup of the Legislature and the House Rev & Tax Committee, I don’t see a lot changing.” The scheduled increase in the grocery tax credit is also being looked at, he said. But actions such as having Idaho join the Streamlined Sales Tax project, which would help Idaho tax Internet sales, are harder, he said. “The House is pretty possessive of its ability to levy taxes,” he said. “They’re not about to cede that to a confederation of states.”

At the same time, Geddes noted that the Legislature and Governor have said if there’s any way to raise revenue that will pass the Legislature and the Governor, “we’ll print the bills.”

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