Budget number continues its downward trend
COEUR d'ALENE - The Idaho Legislature will finally pin at least a preliminary number for the state's 2011 budget by the end of this week. It is a number that continues to decline with each passing month as tax revenues fall, but will be the necessary starting point in the budgeting process.
"Next Friday we will get the revised figures," Sen. Jim Hammond, R-Post Falls, told two dozen who convened at Kootenai Medical Center for the weekly meeting of the Panhandle Coalition on Saturday morning. At best, he said, the figure will be $2.29 billion, $800,000 to $900,000 less than anticipated when budget projections began two years ago.
Joined by Sen. John Goedde, R-Coeur d'Alene, Rep. Frank Henderson, R-Post Falls and Rep. Bob Nonini, R-Coeur d'Alene, the lawmakers once again related how difficult the process of balancing the budget as required by the state constitution is this year.
"The budget is dominating our lives," Henderson said. "The problem is we don't know how much money we don't have."
January collections continued the downward trend set in 2009, Goedde said, and even the current budget will need additional scrutiny.
"We have a $25 million hole going in," he said. "That has to be made up someplace."
On Wednesday, the Idaho Land Board is set to hold a special meeting to decide on the request by Tom Luna, Idaho Superintendent of Public Instruction, to use $53 million of the state's endowment fund to help plug a $135 million hole in the education budget.
Members of the board, which includes Luna, the governor, the secretary of state, the attorney general and the state controller, have given few clues to how they will vote, Goedde said, but will have several factors to weigh.
The endowment fund, which earns money from timber sales and grazing fees, has also been hit by the recession.
"With our timber production in the toilet, we are concerned about where that revenue stream is going," Goedde said.
Tapping the fund now could destabilize it in subsequent years, Hammond added.
And for a kicker, Henderson reminded the group that the money would only be a loan, with some repayment scheduled.
A suggestion by Bruce Noble of Post Falls that the state should provide tax credits instead of tax deductions and lower the 25 kilowatt minimum for renewable energy projects was seconded by Nonini.
"Bruce is right on," he said, but reminded the group that nothing happens fast in the Legislature.
Among the proposals for renewable energy are wind, solar, geothermal and biomass, all in abundance in varying parts of the state as a way to add to income.
"We have to raise new ways to generate income," Nonini said.
Once again the topic of sales tax exemptions came up, and once again legislators warned that there is little support for repealing any of them. And one in the group noted that the statement by Jax Clay at the meeting a week earlier claiming skiers do not pay taxes on lift tickets was incorrect. The legislators confirmed the sales tax exemption is for equipment installed at ski areas, not for consumers.