Budget issue delays lawmakers

Idaho legislators continue to try to piece together a budget for the next year, but are still uncertain how much money will be available to maintain vital services and programs.

Federal lawmakers on Wednesday agreed on a $789 billion economic stimulus package, but how that will help the state's budget is still to be determined. North Idaho legislators know they will be working with less — a lot less — than they anticipated.

"It's a guessing game at this point," said Sen. Jim Hammond, R-Post Falls, a member of the Joint Finance-Appropriations Committee that is responsible for preparing the state budget.

One effect of the focus on balancing a budget that is already $350 million short of expectations this year, and that will be cut by at least 10 percent next year, is that fewer other items are being addressed this session.

"Everything else is ancillary," said Sen. John Goedde, R-Coeur d'Alene. "There is little discussion of any items other than budgetary."

With 150 fewer bills introduced than the typical 300 to 400, among legislators the operative phrase for any that cost money is "dead on arrival."

"Anything with a price tag on it for additional funding is being dimly viewed," Goedde said.

The downturn in Idaho's economy came more suddenly and deeply than anticipated.

"This downturn in Idaho's economy is substantially worse than anything since World War II," Hammond said.

Legislators expect to see more reliable numbers for the 2010 budget by next week, but already expect to see it decline to $2.8 billion from $3 billion. And while the federal stimulus funds may provide money for new projects, especially on the state's transportation system, it will do little to help maintain programs, Hammond said.

"The problem is we're hurting for ongoing money," he said. "The stimulus may take relief off projects ITD plans but won't help with maintenance of current roads."

Rep. Frank Henderson, R-Post Falls, said the state can save 5 percent of its $200 million highway budget by implementing the findings of an audit of the Idaho Transportation Department that management needs to be streamlined. That would increase to 10 percent in the second year.

He estimates $180 million to $200 million could come to the state for transportation projects.

"That's double," he said. "That's a lot. That would create a lot of jobs."

Also high on the priority list this year is education, as school districts try to determine how to tighten up what's certain to be a shortfall in their budgets.

Tom Luna, Idaho superintendent of schools, on Wednesday proposed cuts of $79 million for 2010, said Rep. George Sayler, D-Coeur d'Alene, and the U.S. House version of the stimulus bill includes $179 million for education in Idaho over two years, but he is unsure what stipulations may go with it.

"We can't do ongoing programs with one-time money," he said.

Sayler suggests the mood of the taxpayers may be reflected in the results of a $7.5 million supplemental levy proposal rejected by voters in Pocatello, only the second time in 58 years that the supplemental levy has failed.

The Lake Pend Oreille School District is seeking a $10.95 million supplemental operations levy to replace a levy that will expire later this year.

The uncertainty means legislators expect the session to end early after they prepare a conservative budget based on their best projection of available funds, then return for a special session once the extent of stimulus funding is known.

"In theory, we could be out of here in one month," Goedde said. "It makes no sense to wait around here at $30,000 a day to see what the stimulus package looks like. We can go home, and the governor can call us back for a special session, and we'll deal with it at that time."