According to legislative spending figures, each meeting costs between $5,000 and $10,000 for travel costs and other expenses to bring lawmakers from across the state to JFAC’s out-of-session meetings.  These meetings are held all over the state — in 2008, lawmakers met in north Idaho and in Pocatello for their two meetings.  However, the meeting costs drop significantly when held in Boise, since budget staff doesn’t have to travel.  The Legislative Services Office (LSO), which provides technical and administrative support to lawmakers, spent just $334 for a JFAC meeting in Boise last fall.  The meetings make up a small portion of the budget for the Legislature and the LSO, which total a combined $12 million.  That figure itself is less than 1 percent of the overall state budget.

“We’ve decided we would not hold a June meeting,” said Sen. Dean Cameron, R-Rupert, one of the two co-chairs of JFAC.  “We most likely will hold a fall meeting, unless the economy takes a dramatic turn for the worse.  We feel like it’s important for us to bring the members in [and] review the numbers and where we stand.”

Cameron said he wasn’t sure whether the fall meeting would be in Boise or somewhere is in Idaho.  “We do try and rotate it around and see the facilities that we have funded in the past,” he said.  “We visit schools and other programs that are requesting additional funding.  But it’s too early to tell whether we would hold it in Boise again or go some other place.”

There could be less committee work this summer and fall for Idaho legislators.  All lawmakers are up for election this year, and no meetings are scheduled before the May 25 primary.  Only one of the six interim committees listed on the Legislature’s website has a meeting scheduled; the Capital Services Committee will meet in early June.  Interim committee meetings, usually in Boise, also incur travel costs.  Spending reports for two committees last year, the Health Care Task Force and the Energy, Environment & Technology Interim Committee, show that each day’s meetings cost taxpayers approximately $1,000 for travel and other expenses.



“Our projections are showing to be accurate,” Cameron told IdahoReporter.com.  Including the incomplete April numbers, tax collections are $13.5 million below lawmakers’ forecast.  “We took quite a bit of criticism when we adopted a lower number to budget to … Now we’re being proven accurate.”  Cameron co-chairs the Joint Finance-Appropriations Committee, which sets the state budget.

Cameron also said that if revenues don’t worsen much more, Gov. Butch Otter could manage state finances without additional reductions in the current or next fiscal year.  “They can easily handle it without the need for additional holdbacks or a special session,” Cameron said.  The added savings could be found at the end of the budget year by limiting encumbrances, which is when state agencies purchase something in the current budget year, which ends June 30, that they don’t expect to need until the next budget year.  “Just by the governor minimizing encumbrances, you can cover the $13.5 million, in my opinion.”  Cameron said last year, holding off on year-end spending saved $25 million in the budget.

Like Otter and Democratic candidate for governor Keith Allred, Cameron said the higher-than-expected revenues from sales tax and income tax withholding are a good sign for the state economy.  “Those are positive signs that we are at least sort of edging to the bottom,” Cameron said.  It’s the second straight month sales tax revenues have bested projections, but Cameron warns that things could turn around.  “Two months does not yet make a trend, and even these numbers do not show dramatic growth.  All they show is a flattening.”  Idaho’s tax revenues for the current year still lag behind last year’s totals.

Cameron said he disagreed with Allred’s statements that lawmakers made unnecessary reductions to public schools and other state programs in the next budget.  “I was disappointed in the lack of understanding and misinformation that Mr. Allred possesses on the state budget,” Cameron said.  He said Democrats have been critical of the majority Republican Party’s budget setting for years, including policies to set up reserve funds and spend them down over several years, as well as ideas to raise revenue and set a larger state budget this year.  “Their track record is dismal.  If we’d’ve followed the minority’s plan at any step of the way, we’d be in the same bowl of soup that Oregon, Washington, California, and all these other states are in.”  Oregon and Washington have both raised some taxes this year, while California lawmakers are still working on a state budget.  “We believe the decisions we made this session will stimulate the economy,” Cameron said.  “Hopefully the fact that the state showed fiscal restraint … will provide additional stable footing for businesses.”

Sen. Dean Cameron, R-Rupert, said he’s not surprised by the closures.  “You hate to see people laid off and you hate to see offices close,” he told IdahoReporter.com.  “At the same time, with the budget situation we’re in, it’s understandable.”  The closures are expected to save DHW $7 million in the next budget, which begins in July.  Cameron said he understands why the Rupert DHW office is targeted for closure.  People from Rupert would need to go to a DHW office in Burley, which is a 10 minute drive.

On his blog, Rep. Branden Durst, D-Boise, called the DHW layoffs the tip of the iceberg for budget impacts.  “The Department of Health and Welfare is only the beginning,” he said.  “In future weeks, other agencies will face the budgetary reality that our nearsighted governor and majority leadership placed upon them and make similar cuts to services and jobs.”

Rep. Maxine Bell, R-Jerome, said DHW’s decision made sense, though there were other options.  “I understand that they’ve got to tighten up and do what they have to do,” she said.  “I had been so hopeful that they’d use furloughs and not layoffs for workers.”  A DHW official said the department has used furloughs, which are unpaid time off for state employees, to deal with holdbacks in the current budget, but that layoffs and closures are a permanent solution to permanent state spending cuts.  Bell said laying off DHW employees could end up adding to the number of people going to DHW for services like food stamps.

Other big spending areas of state tax dollars including public schools, universities, and prisons, are unlikely to see closures, but layoffs remain a possibility.  Cameron said one area where closures could occur is in agricultural research stations across the state.  “This last budget cycle, we’ve started to see the effects on ag research and extension offices,” he said.  “We’ve had the closure of a few offices last year.”  Cameron said that while lawmakers approved the reductions in the budget, agencies have flexibility to decide how to meet a smaller bottom line.  “Every agency is dealing with those reductions differently.  Some are able to handle it with furloughing and some can’t furlough as well.”

“They are up, and they are a good sign,” said Sen. Dean Cameron, R-Rupert.  “It may be the first time that we’ve hit (state economist) Mike Ferguson’s projection and exceeded it in a number of months.”  Cameron co-chairs the Joint Finance-Appropriations Committee (JFAC), which writes the state budgets.

Rep. Maxine Bell, R-Jerome, the other chair of JFAC, agreed that the positive early tax report is good news.  “I’m delighted,” she said.  Bell added that the revenue report for March could counter February numbers that were $16.2 million below Ferguson’s projections.  “February and March are not big months (for tax revenue) and you don’t worry much about them.  But when February came in $16.2 million down, you worry.  So, March just almost made that up.”  Bell said that the preliminary numbers show that the state sales tax and individual and corporate income taxes are all above expectations.

The preliminary March numbers are $15.1 million above expectations, according to Wayne Davis, executive director of the Idaho Association School Administrators. That number could shift by several million before Ferguson releases a final revenue report.

April is the largest month in tax collections, and revenue numbers from April remain critical to the current and next state budget.  In March, the state expected to collect $114.9 million.  In April, that amount triples to $373.5 million, due to the April 15 income tax filing deadline.  “April and June will be the telling months,” Cameron said.  “If April’s numbers are bad, the governor will have to pull from the reserves for [next year], which is already a tough budget.”

The budget put together by lawmakers would allow Gov. Butch Otter to transfer up to $107 million to plug a budget gap.  That money is already set to be spent in the next budget, which begins July 1, so mending a hole in the current budget could open up a hole in the next one.  Possible solutions to fix the next budget include holdbacks to state agencies from the governor or a special session to examine spending cuts or revenue increases, including new taxes.  With the positive preliminary March tax revenue numbers, there would be a cushion of at least $30 million before the governor would need to dip into reserves.  Revenues from the next three months could deplete or enlarge that cushion.

Otter told members of the the press that legislators did their best with what they had to work with in a down economy.  Later during the conference, Otter was joined by House Speaker Lawerence Denney, R-Midvale, who talked about the difficulty of the session, and Sen. Dean Cameron, R-Rupert, co-chair of the Legislature’s budget-writing committee, who spoke on the budget-setting process in 2010.

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Though it was closing time for lawmakers, legislation was being rushed through is an effort to get all of the work done as fast as possible.  Members of the Senate spent their day amending House legislation, including a gun bill, a ban on texting while driving, and a measure designed to increase school district transparency, and passing a few amending bills of their own.  Representatives, on the other hand, used their day Monday to push through appropriation bills necessary to fund the functions of state government.  Only after the Senate sent the amended House bills back to representatives did things get hectic, especially in debate on the texting ban, which was the last bill heard by lawmakers in the 2010 session.

For a few lawmakers in both houses, Monday was not only an end to a session, but also a career.  Reps. Donna Boe, D-Pocatello, Raul Labrador, R-Eagle, Russ Matthews, R-Idaho Falls, Branden Durst, D-Boise, and Rep. Jim Clark, R-Hayden Lake, all took a moment to thank their fellow lawmakers for their friendship during the session.  Boe and Clark are retiring, while Matthews and Labrador are seeking congressional seats in their respective districts.  Durst is the only one who could remain in the Legislature.  He has announced plans to run for the Idaho Senate in November.

On the Senate side, emotions also ran high as senators honored those worked extra hard during the session, as well as those retiring from public service. Sen. Dean Cameron, R-Rupert, received high praise for his work in setting state budgets during a time of much economic turmoil.  Cameron was given a flag that flew over the Senate dome during the entire session by Senate Pro Temp Bob Geddes, R-Soda Springs.

“Sen. Cameron has completed what I think is an impossible task,” Geddes said.

Senate Minority Kate Kelly, D-Boise, who is retiring, also received admiration from senators.

“Her word has always been good,” said Sen. Denton Darrington, R-Declo. “I have respected her judgment and her contribution so much.”

“She is truly an asset to this body,” said Sen. John Goedde, R-Coeur d’Alene.   “I will miss her.”

“We wish you well in all of your future endeavors,” said Senate Majority Leader Bart Davis, R-Idaho Falls.  “We thank you for your service.”  Davis ended the Senate session, in honor of Kelly and former Sen. Clint Stennett, D-Ketchum, who suffers from brain cancer. Stennett’s wife, Michelle, has served in his stead while he battles the illness.  She has announced that she will run for his seat in November.

Both houses closed after a letter from Gov. Butch Otter was read which thanked lawmakers for their work, and their decision not to raise taxes.  “Thank you for holding the line against tax increases that other states have imposed or are considering,” his letter said.

The House version of the texting ban, which imposed infractions of $50 or $100 for texting behind the bill, was weaker than the Senate plan, according to Sen. John McGee, R-Caldwell.  “This is a watered-down version of the bill we sent over several weeks ago,” he said.  McGee said that the changes he added would strengthen the ban by increasing fines when a texting driver causes an injury or property damage.   “I believe it’s a middle of the road approach.”  Drivers who cause damage could face a misdemeanor with penalties of up to 90 days in jail and $500.

McGee said Idaho needs a texting ban.  “I think this is the year that we need to say something about texting while driving,” he said.  “This sends a message, especially to our young people, that you can’t text while you drive.”  MeGee said he was surprised by the number of young people who’ve told him they support the legislation.  “I’ve never seen students come out in support of the bill, and they were out there in droves … The young people of Idaho, who certainly know more about this than I do, say something should be done.”

The Senate approved McGee’s revisions to the texting ban on a 30-4 vote.  Sen. Dean Cameron, R-Rupert, said he thinks the House version, with smaller infractions, might be a more reasonable texting ban.  “I don’t think we want to be charging people a misdemeanor for glancing at their phone,” he said.

“What we’ve got is a fairly balanced approach,” said Sen. Les Bock, D-Boise, who backed a texting ban last year.  “If someone does cause serious injury or damage, the law is going to come down harder.”

The plan heads back to the House, which could take up the legislation before it ends its session.

Sen. Dean Cameron, R-Rupert, said during debate on the plan that he’s grateful that previous lawmakers established reserve funds that can be drawn down now.  Cameron chairs the Joint Finance-Appropriation Committee, which set the fund transfers along with the state budget.

Lawmakers would transfer $59.7 million to balance the current budget and $79.6 million to balance the next budget.  Most of that money comes from the state’s Economic Recovery Reserve Fund and the Budget Stabilization Fund.  However, if more money is needed before the end of the current budget on June 30, lawmakers would allow the governor to spend reserves set aside for the next fiscal year.

“It’s a crucial contingency plan for the (governor),” Cameron said.  “We all know that by allowing us to pull that money forward, then that creates a hole for 2011.”  If that happens, Cameron said the governor’s options are further holdbacks and reductions or calling a special session that would bring lawmakers back to the Capitol.  Lawmakers would also give the governor the power to spend $27 million in the Permanent Building Fund, which is already targeted to go to certain repairs in the next budget year.

The plan now heads to the House for approval.  JFAC has set a $2.28 billion budget for the current fiscal year and $2.29 billion for the next fiscal year.  Read the text of the legislation outlining the fund transfers here.

Sen. Dean Cameron, R-Rupert, said the new federal health care laws will affect Idahoans.  “The provisions in that act are so onerous and the consequences are so devastating,” he said.  Cameron, who is an insurance broker, said the unintended consequences could lead health care rates to rise by 20 percent a year.  He also said people can’t buy auto insurance after a crash or home insurance while their house is on fire, but the federal government would create a similar system for buying health insurance.

Sen. Nicole LeFavour, D-Boise, debated against the proposed constitutional amendment.  She said that while she doesn’t support all parts of the federal mandate, it could lower the state’s $33 million payment for catastrophic health care for people unable to pay for services.  “When people’s health suffers, we pay one way or another,” she said.

Sen. Curt McKenzie, R-Nampa, said the federal plan would end up increasing the national deficit.  “It creates that overwhelming debt that we pass on as our legacy to our children and our children’s children,” he said.  “This is one small way to say ‘enough.’”

The joint memorial now heads to the House.  Read IdahoReporter.com’s first story on the proposed amendment here.  The text of the memorial is available here.

The Senate also approved legislation that would exclude substitute teachers from the Public Employees Retirement System of Idaho (PERSI).  “This will save school districts money,” said Sen. Dean Cameron, R-Rupert.  Substitute teachers not under contract with a district wouldn’t be part of PERSI.  That would save the school districts and the employees from paying into PERSI during each pay period.  Cameron said most substitute teachers would prefer keeping the 6 percent of their paycheck that would go to PERSI.  Read IdahoReporter.com’s first story on removing substitutes from PERSI here.

Both pieces of legislation now head to the governor for his consideration.