Legislators: 'Grim' session ahead
SANDPOINT — North Idaho legislators used terms like “staggering” and “grim” as they spoke about coming to grips with what could be a $151 million budget shortfall when they arrive in Boise in January.
Sens. Shawn Keough and Joyce Broadsword and Reps. Eric Anderson and George Eskridge each took turns explaining the depths of Idaho’s economic woes and their plans to address issues ranging from unemployment to education on Tuesday morning at a pre-session breakfast.
Gov. C.L. “Butch” Otter has already ordered state agencies to cut $99 million from theirbudgets, so the budgetary hole might be around $50 million, they said. More bad news — the current budget is currently $30 million in the red.
Otter will set the bar Jan. 11 at the State of the State address and give the latest financial numbers and will set his priorities for the next legislative session.
The revenue forecast for fiscal year 2009 was 15.3 percent down from the previous year and the latest estimate for 2010 shows a 3.6 percent decline from this year.
Add that to Idaho’s 10 percent unemployment rate, and there is all the makings for a perfect storm. With less revenue coming in from businesses because of lower sales means less tax dollars. Less economic activity means more layoffs and more people drawing unemployment checks.
The unemployment insurance fund is broke and has paid out $400 million in benefits but has collected only $100 million from employers. The difference is borrowed from the federal government. Each week, 100 more Idahoans extinguish their unemployment benefits and are cut off.
Most businesses will see a doubling on the amount they pay into the unemployment fund, Keough said.
“That won’t come close to closing that shortfall,” Keough said.
Even sacred cows are hiding right now.
“We are going to be unpopular when we get back,” Eskridge said. “Education is going to suffer because there just isn’t enough money.”
Education and transportation issues will be protected but not spared some cuts, the legislators said.
GARVEE funding, which has been used to improve Highway 95 from Garwood to Sagle, will probably be pulled from that project, Eskridge said.
All four representatives see the economic downturn as an opportunity to re-examine and to trim some programs. They are also looking for ways to make a difference for Idahoans in ways that won’t impact the budget.
Broadsword, for example, is proposing a bill that would lessen the cost of chemotherapy prescription medicine to consumers. She is also working with prosecutors to increase the minimum time people convicted of crimes against children can be sentenced.
Anderson reminded the audience that this economic storm will pass and that Idaho has to do what it can to prepare for the future.
“Idaho is a great state with a ton of potential,” he said. “We have to be like the Boy Scouts and be prepared for our future. We need to look forward and now is a great time to do it.”
The legislators agreed that last year’s stimulus money helped bridge funding shortcomings in Idaho. There was $1 billion allocated to the state and only $200 million has been spent. The remaining amount is mostly in the form of grant money and is restricted by silos, which means the money can only be spent on specific projects.
“If there is another state that doesn’t want its stimulus money, we could use it,” Eskridge said.