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Idaho to weigh in on debt amendments

by John Miller
| March 16, 2010 9:00 PM

BOISE - The man who four years ago scuttled Boise's plan to finance a new airport parking garage without a vote said he's angry about the Legislature's push to change anti-debt provisions in the state constitution to allow such projects to move forward.

The Senate on Tuesday passed three proposed amendments to the constitution. They've already cleared the House, but to be successful, all must survive voter muster during the general election in November.

Residents will be asked to decide if cities and publicly-owned hospitals should be able to sign long-term financing contracts without a vote, provided no taxpayer money is pledged to repay debts.

David Frazier, the citizen activist in Idaho's capital city who took his opposition of the airport parking garage to the Idaho Supreme Court in 2006 and won, said he has no problem with the amendment to allow Idaho Falls and 10 other so-called "power cities" to sign contracts to buy electricity.

But he's argues the remaining two amendments - aimed at helping cities and county hospitals construct new facilities or buy equipment - seek to skirt 60-year-old anti-debt provisions in the constitution that have served Idaho well, so far.

"These amendments are craftily worded to conceal the fact that citizens currently have the right to approve long-term debt and if these amendments pass, those voting rights would be eliminated," Frazier told The Associated Press. "The amendment, as it applies to airports, is nothing more than an attempt to allow cities to enter the real-estate speculation business."

In 2006, lawyers for Boise argued the city shouldn't have to ask voters for permission to build a parking garage paid for out of parking revenue, not by taxpayers. Justices, however, ruled the expansion wasn't urgent; therefore, the city had to secure support of two-thirds of voters.

Since Frazier's victory, cities, counties and hospitals across Idaho have complained the ruling's broad interpretation has resulted in complications every time they sought to lease or buy snow plows, purchase power, even procure medical equipment like expensive MRI scanners.

For the last two years, lawmakers' efforts to put similar amendments before voters failed. A similar 2008 resolution died by a single vote when one senator who could have decided the matter was absent during the waning hours of the session.

This latest push to tackle the issue in 2010 was driven, in part, by the argument that this wasn't just a constitutional issue, it was a question of economic development.

Top state military brass showed up at one hearing, to underscore their contention that allowing Boise to construct revenue-generating airport facilities without a vote would help Idaho lure the coveted F-35 Joint Strike Fighter that the state is vying for against military installations across the nation.

Boise Airport director Richard A. McConnell, whose terminal is just across from the Gowen Field Air National Guard base, said he needs as much financing flexibility as possible to develop hangars on airport property that may eventually house maintenance services dedicated to the new military plane, should Idaho win it.

"We want to be able to sit down with different entities to discuss their different infrastructure needs," McConnell told the AP recently. "Having all the financial tools available to us is extremely important."

Sen. Joe Stegner, the amendments' sponsor, assured other senators during debate Tuesday that despite the constitutional changes, there were iron-clad assurances that taxpayers won't be on the hook for unpaid bonds if a project sours.

"The taxpayers are at no risk," said Stegner, R-Lewiston.