Mill pond full, legislators chopping as spring break-up nears

Senate Education Committee 

By Senator Jim Woodward
Idaho District 1

With nine weeks behind us in the legislative session, our bill writing practices make us appear like lumber jacks cutting timber in anticipation of spring break-up. The mill pond is full with 387 House bills, 165 Senate bills and 50 resolutions and memorials between the two chambers.

Committee hearings are slowing down now, as we hold two floor sessions per day to work through all the proposed legislation.

House Bill 231 passed this week. I expect it will be signed into law next week. The bill raises the grocery sales tax credit from $120 to $155 per individual. All Idahoans are eligible whether they owe taxes or not.

I think we are getting closer on catching up the credit with grocery prices. The tax credit was $100 just a few years back. With the credit now at $155 per individual, a family of four can purchase $10,300 of food with no tax.

As with nearly every legislative session, we have debated about whether to repeal the food tax at the cash register or raise the tax credit to the appropriate level. I supported HB231 so we can continue to collect food sales tax from the out-of-state visitors. Out-of-state grocery sales tax generates tens of millions of dollars for the roads and other services that visitors use, but would otherwise not contribute to maintaining.

Bills passed into law this week …

H144. Small sellers of less than $5,000/year are exempt from obtaining a sales tax permit.

H79. Increases the state community college tuition cap from $2,500 to $3,250. The tuition cap has not been adjusted since 2008. The community colleges assured us they will only raise tuition incrementally and as necessary.

Idaho Values. Idaho Vision.

Some thoughts and votes from this week

This week we voted on HB40, a quarter billion-dollar income tax cut sponsored by the Speaker of the House. I voted No. I was one of two Senate Republicans to vote No.

Why?

• The bill included a capital gains tax exemption for precious metal bullion, estimated at $1M, benefiting an out-of-state company that has an office in Idaho…….and donated significantly to a number of political campaigns in the last few election cycles. This is national style politics and I won’t be part of it. When someone doesn’t pay their taxes, you do.
• We should be solving the property tax problem. An income tax cut provides minimal tax relief to a retired Idahoan trying to hold on to their home as property taxes have risen so significantly in recent years. For those of us still working, HB40 will provide less that $200 in tax relief on a $50,000 annual income. Yes, an income tax cut will help stimulate an economy, but I haven’t seen a lack of growth in Idaho recently. It seems more likely that we are dealing with too much growth and competition for housing, which has caused our property taxes to skyrocket.
• Our original discussion in the Senate was to amend HB40, still providing some income tax relief, but to also balance it with property tax relief. I supported that plan — politics of the day scrapped that plan.
• In just the first week after passing HB40, we are seeing the repercussions. Last year our statewide wildfire expense was $60M. We normally pay the bill at the end of the year. Right now, it appears that we will pay $40M from the now tight budget, with the estimated remaining $20M from a reserve fund. The reserve fund balance will be left at a reduced level.
• We normally transfer $300M annually to our state, county and city transportation construction programs. Because of HB40, we will probably be forced to cut that back to $250M.

All too many times, I have heard in the Capitol, “It’s not the tough years that put you under, it’s the decisions in the good years”. We might be living up to that cautionary statement from the older and wiser.

In the Hopper

Medicaid program reform: House Bill 345 — A Medicaid program reform bill, is up for a hearing in the Senate Health and Welfare Committee on Monday, March 10. Here is a link to the agenda.

I need to hear your feedback.

Women’s health legislation: I continue to be told there is legislation coming in regard to women’s health, specifically supporting the ability to provide medical care during complications in pregnancy. I am not referring to elective abortions.

The lack of progress is due to the continual slow-roll by Idaho Chooses Life in holding any talks. David Ripley runs the organization. He has been on both sides of the conversation over the course of years as a former abortion rights activist.

Reminder – The last of this session’s town hall will be held Saturday, March 15:

• Bonners Ferry – Visitor’s Center – 9:30-11:00
• Sandpoint – VFW Hall – 12:00-1:30
• Priest River – City Hall – 2:30-4:00

I hope to see you at the next Town Hall. If you are unable to make it, KRFY will be broadcasting the Sandpoint event.

Idaho Day