Use rainy day fund to help Idaho residents

Idaho has a $51 million hole in the budget for the remainder of the 2009-2010 fiscal year. We also have about $200 million reserve funds available. Finally, the chief economist for the State, Mike Ferguson, says the economy is turning around. Data he uses show that the Idaho economy started to turn last September and is slowly improving.

Given those circumstances there are several options available to the Governor and the Legislature — cut spending, raise taxes, use some of the reserves or some combination. Cutting spending is the most disruptive to public services and to those who depend on them like schoolchildren and low-income working families without health insurance. But, the Governor prefers that option to the others.

Using the rainy day money, in anticipation of a turn in the economy makes the most sense to me. After all, it’s raining. If economic growth were to stall, the other two options could be considered next year. Continued cuts when other reasonable options are available is the worst possible choice.

I know the Governor opposes a tax increase because he sees it as class warfare and he doesn’t want his well-heeled supporters to think he is waging war on them. After all, he needs to get reelected.

At least the bad economy is slowing down one legislator’s plans. House majority leader, Mike Moyle, has been pushing for big tax cuts for the usual suspects, high-income individuals and corporations. Unbelievable!

BOB WYNHAUSEN

Sandpoint