Opinion

Problems facing legislature will impact your pocketbook

Wednesday, January 21, 2009

No one will be happy this year! On this second day of the 2009 session I have already heard that it is my fault.

The Fish and Game Department wants to increase fees to cover their portion of federal matching dollars directed at non-game programs.

That is oversimplified I know. Because the majority of F&G funds are dedicated the legislature has very little oversight authority. What the legislature can do, however, is hold back appropriations on the general fund and approve or disprove fee changes.

I have heard from sportsmen on both sides of this controversy. A great source of information is the "Outdoorsman" published by George Dovel in Horseshoe Bend.

The governor has called for significant cuts from every agency. Agriculture will take a 31 percent reduction in their General Fund revenues, Commerce and Parks and Rec will be reduced in excess of 50 percent. Cuts in Health and Welfare are exacerbated by loss of the federal dollars the state will no longer be able to match. The school stabilization fund will take the hit this year to keep the school budgets workable but there is not enough money in the fund for a future time without cuts to the K-12 school budget as well.

The governor's transportation request has sparked partisan gnashing of teeth and clanging sabres. I applaud the governor's leadership and courage on this issue. I also appreciate that the governor traveled across the state to hear from every citizen that wanted to participate. We may not like the message or the timing of delivery but that does not change the infrastructure reality.

The Obama administration-elect has suggested a stimulus package of staggering proportions. That could ease the backlog of transportation projects. Seems to me to be a bit like a tenth mortgage on a house where the equity has been completely collateralized by the second mortgage. Nevertheless, the possibility exists that some of the transportation maintenance void could be filled by the stimulus.

I do disagree with the proposal on several points. First, more than 70 percent of our revenue for highways comes from fuel tax. Fuel tax is an increasingly volatile source of revenue -- made volatile by fuel efficient cars and driving habits. Current fuel tax levels place Idaho as twenty-fourth in the nation -- mid point is a good principle. Fuel tax is not assessed on electric cars.

The vehicles that deliver all the food and clothes and furniture and goods to your store or door generally only get 4.5 to 5.5 miles per gallon. Fuel surcharges allow additional costs to flow to the consumer quickly when the costs are going up and not so quickly to decline on the declining side. The result is more volatility in the consumer market than would occur in a negotiated freight rate change and the consumer prices rise faster and go to a higher level.

Next, highways don't care how old a car is -- the effect is the same on the road. We might all agree that use should dictate cost. Trucks already pay by the mile in some states and truck operators are accustomed to the paperwork and regulatory provisions. What we do not have is an acceptable procedure for smaller vehicles to pay by the mile -- why not make a procedure?

All future increases then would be fairly and efficiently put in place and users would be paying for the majority of the costs. Idaho has the third lowest registration fee for cars in the nation and some of the worst roads. Idaho also has one of the highest registrations for trucks.

Finally; we believe we need $230 million today for the backlog and we are falling behind $20 million per year. The new plan will raise $174 million but take five years to implement -- to ease the pain. Studies show we are slipping behind the world in math proficiency -- it must be true.

A constituent in Garden Valley has raised questions about the new off road motorcycle license, the process for acquisition and the ultimate use of the funds. I will have that information by next week. I am always happy to answer questions and try to explain the often obtuse and difficult workings of government. Please don't hesitate to send in your questions.

The governor has said he intends for the food tax credit to flow to your pockets as scheduled. I voted against that legislation. I support a full credit for sales tax on food with a defined funding source paid for upon enactment.

Remember, the legislation phases in the tax credit over five years and is not indexed (is indifferent) to the economy in any of those years. No matter how bad the economy, no matter how many other programs are being slashed we will get our $25 to $50 credit unless the legislature and the governor take affirmative action to pause the credit in those down years. The legislature must pass a resolution not to pay and the governor must sign the resolution not to pay. That is legislation that defines indecision and political cover. I believe you deserved better than that.

I intend to keep these newsletters a bit more brief this year in hopes the newspapers will be able to find space every week. If there are requests for more information I will make those additions on the website. Every letter and updates on my legislation will be posted there as well. As always reach me at 599-0427 cell, 332-1330 office, 587-8562 home, or tcorder@senate.idaho.gov or www.senatortimcorder.com.