Spokane7
51°
January 10, 2012 in Idaho
Idaho gov. calls for $45 million in tax cuts
Otter says in legislative address state’s ‘tested,’ ready to prosper
Idaho Gov. Butch Otter visits with delegates before delivering his State of the State address Monday in Boise.
(Full-size photo)
BOISE - With Idaho’s state budget flush for the first time in years, a cautious Gov. Butch Otter is calling for $45 million in tax cuts next year, a $5 million research initiative aimed at creating jobs, small boosts in education funding and possible one-time pay boosts for teachers and other state workers.
“It is my pleasure to report that Idaho, having been tested by the Great Recession, now is emerging leaner, stronger, more resilient and better prepared to compete, prosper and prevail in the years to come,” Otter told a joint session of the state Legislature in his sixth State of the State and budget address.
His talk kicked off Idaho’s legislative session, which is expected to include a tough fight over Otter’s proposal for a state-run health insurance exchange. The governor downplayed the issue in his speech, saying he and lawmakers will decide together how best to proceed.
Otter laid out a budget proposal for the coming year that’s based on two key assumptions: A drop in forecast revenue growth for the current fiscal year from 6.4 percent to 4.4 percent, and then a forecast for next year’s general-fund tax revenues to grow 5.8 percent. He’s capping overall general-fund spending growth in his proposed budget at 5 percent.
The result: A $2.655 billion general fund budget for next year, up 5 percent from this year.
Lawmakers were generally receptive, but some questioned whether revenues really will be strong enough to support Otter’s plan. “I think all in all it was a good outline,” said Rep. George Eskridge, R-Dover. “I’m just hoping we have the funding and the revenues to support that.”
Otter didn’t lay out specific plans for tax cuts, instead calling on lawmakers to discuss their ideas with him.
He earlier said he favored a small drop in the state’s top income tax rate; that would benefit just 16 percent of Idaho’s income tax filers. Some lawmakers have been floating plans to cut Idaho’s individual and corporate income tax rates.
Sen. Shawn Keough, R-Sandpoint, vice chair of the Legislature’s joint budget committee, said that before considering tax cuts, “I need to see what the numbers look like.”
That process will start this morning, when lawmakers begin going through Otter’s budget in detail in preparation for setting the state’s spending plan for next year.
Otter also called for Idaho to begin refilling its various reserve funds, drained of $381 million over the past four years of economic downturn; he wants to deposit $60 million to boost the depleted funds.
He also unveiled his “IGEM” plan, which stands for Idaho Global Entrepreneurial Mission. It’s a $5 million program that includes permanent state funding for the Center for Advanced Energy Studies, a joint effort of three Idaho universities and the Idaho National Laboratory that hasn’t yet had permanent funding. That proposed funding includes $2 million within the higher education budget; another $2 million for new research initiatives at Idaho universities, also in the higher education budget; and $1 million in the state Commerce Department budget for grants or loans to companies to help bring those research initiatives to market. Professors at the universities would partner with companies in their research, with the idea that the end result will be new “knowledge-based economy jobs.”
Otter called the plan an “extraordinary” thing for the state to be doing, “during this tough time, to put a $5 million bet” on job creation.
House Minority Leader John Rusche, D-Lewiston, said of the governor’s agenda, “It could be worse,” but he questioned cutting taxes without restoring deep cuts to programs such as mental health and substance abuse, which he said are pressuring local governments and communities.
Eked-out win teaches Idaho Democrat a lesson 
oneanddone on January 10 at 4:25 a.m.
Don’t call these “tax cuts.” Call them what they are - bail outs (aka payback) for business interests.
dataxman on January 10 at 4:30 a.m.
Wow - working with a surplus in Idaho. What are Washington lawmakers working with? Yep - a $1,600,000,000.00 deficit. Clearly the democrat party is much better at governing…
dukkandpooh on January 10 at 5:29 a.m.
Clearly Idaho benefits from about an 8% state income tax that Washington does NOT.
crazyivan44 on January 10 at 6:44 a.m.
clearly dukkandpooh, WA benefits from making up a lack of sales tax in excessive property, sales, and motor vehicle taxes among probably another dozen or so we could root out…don’t think a lack of income tax has people spending any less money over there.
johnclarke on January 10 at 7:30 a.m.
dataxman on January 10 at 4:30 a.m.
Wow - working with a surplus in Idaho. What are Washington lawmakers working with? Yep - a $1,600,000,000.00 deficit. Clearly the democrat party is much better at governing…
Idaho is pretty good at collecting free money from Uncle Sam, and using it to “balance” it’s budget. That’s right, in addition to the fact that Idaho collects way more than it pays into the tax pot, Butch ‘Tea Party’ Otter collected 1.7 BILLION in stimulus dollars.
https://stateimpact.npr.org/idaho/2011/12/07/governor-otter-says-state-budget-surplus-unlikely/
Note that exactly one year ago, Otter was predicting a shortfall. Gee, what changed ?
notrich on January 10 at 7:41 a.m.
it seems like just yesterday that Idaho was proposing to raise the sales tax? hmm…political ploy? or left hand/right hand?
i’m betting that there are a lot of state gov. agencies wanting more money, not less or the same.
I’m also wondering what the balance is between the taxes raised via income versus the cost of tabulating/persuing those tax payments. sometimes less government is more for the people and sometimes it’s the other way.
dukkandpooh on January 10 at 8:12 a.m.
Well in the 20 years I’ve been here in Idaho, I have paid all of those same taxes you mention, ivan. I don’t know what the exact breakdown of my property taxes is in terms of percentages, but I don’t believe much if any actually goes to the state. I do pay a sales tax that is about 2% less than in Spokane, but since my spending goes more towards food (which is not taxed in WA) than luxury purchases, I don’t see any benefit to being in Idaho in that regard. Both states collect motor vehicle taxes. I’m not seeing any validity to your point.
Watchful on January 10 at 8:24 a.m.
Extra money - drop the sales tax on food - the basic necessity for EVERY family in the State.
dataxman on January 10 at 9:12 a.m.
jc - and we here in WA received $8.3 BILLION. Chrissy blew through that and now here we sit - $1.6 BILLION in the hole
johnclarke on January 10 at 9:54 a.m.
dataxman on January 10 at 9:12 a.m.
jc - and we here in WA received $8.3 BILLION. Chrissy blew through that and now here we sit - $1.6 BILLION in the hole
And here I sit watching you trying to change the subject. The actual topic is Idaho and Otter’s awesome management…right? Tell you what, I could manage Idaho’s budget. All that clown is doing is slashing public services, then turning around and handing it to his masters, oh and he has his hand buried in Uncle Sugar’s pocket the whole time.
http://sunshinereview.org/index.php/Idaho_state_budget#FY_2011_State_Budget
For today’s prize, why don’t you take a look at the Idaho miracle. They projected a shortfall, and oh look ! A budget surplus. Look at the revenues and see if you can guess where it came from.
johnclarke on January 10 at 9:58 a.m.
“The Governor and Legislature balanced the State budget without raising taxes or instituting new fees”
Hilarious. Just insert “by accepting Federal welfare”. That Otter is a true Republican hero.
dataxman on January 10 at 10:28 a.m.
jc - and Chrissy predicted no budget deficit during her reelection campaign yet we have had over $6 BILLION in cuts since she uttered those prophetic words.
It is not so much changing the subject as pointing out to those who constantly harp on the ‘R’s and how they cut education to fund tax cuts that the ‘D’s - who are firmly in control of this state - do exactly the same think. Take a look at the new tax exemptions passed in the last legislative session. More money flowing into the coffers of special interest. So I am going to assume you could run WA’s budget as well as the process is not different - or no better - than ID’s…
johnclarke on January 10 at 11:20 a.m.
dataxman on January 10 at 10:28 a.m.
It is not so much changing the subject as pointing out to those who constantly harp on the ‘R’s
No, it’s changing the subject. The point is Mr. Otter is touting his “balanced budget” and blah blah blah. The point is how he did it. Idaho’s very very tiny “surplus” is nonsense. They got nearly that same amount just in Teacher funds from the Fed the previous year in a block grant.
BTW, Idaho collects $1.28 for every dollar it pays into the Fed. Washington collects $.88. Idaho is a welfare state, Washington is not.
dataxman on January 10 at 11:39 a.m.
How Idaho got their surplus is irrelevant - the fact is they have it and we don’t. They will be restoring cuts to education while we will be cutting. They will provide bonuses while we furlough. They may cut taxes while we increase.
slamdunk on January 10 at 12:11 p.m.
Tax cuts for the 1%. Not surprising. What a lovely you are butch.
liberal_in_right_wing_land on January 10 at 1:05 p.m.
dataxman, the fact that Idaho got their surplus by sucking money from the rest of the tax payers in the country doesn’t concern you? Nice, typical republican attitude.
johnclarke on January 10 at 3:12 p.m.
dataxman on January 10 at 11:39 a.m.
How Idaho got their surplus is irrelevant - the fact is they have it and we don’t. They will be restoring cuts to education while we will be cutting. They will provide bonuses while we furlough. They may cut taxes while we increase.
Read on Mr Senseless argument. Gee this is so much fun debating with an infant.
http://www.spokesman.com/stories/2012/jan/10/otters-budget-doesnt-restore-cuts/
dataxman on January 10 at 3:57 p.m.
well JC - do you even read the articles you link to?
I state they will be restoring cuts to education - from the article “…Otter’s proposals to increase public school funding by $31.6 million and higher education funding by $16.9 million…”
I said they will be providing bonuses - “…The governor’s budget also includes a $41 million, 3 percent pay bonus for state workers, teachers, university professors and faculty - but only if tax revenues stay on track….”
http://www.idahostatesman.com/2012/01/09/1945436/idaho-governor-due-to-set-2012.html#storylink=misearch
and also from your link “…Otter is calling for $45 million in tax cuts next year…”
johnclarke on January 10 at 4:17 p.m.
Yeeees, of course I read it.
The governor’s proposed $16.9 million increase in higher education funding next year, an 8.1 percent increase, would bring higher ed funding up to slightly above its 2005 level.
Luna’s budget proposal sought to take the sting out of a $19.5 million pay cut for teachers next year called for in the Students Come First law, which would shift that amount out of salary funds into merit-pay bonuses and technology; Luna wanted to give teachers an offsetting raise. Otter chose not to fund that.
Read the whole thing amigo. Smoke and mirrors. Yes, Idaho is racing to 2005. Way to go.
johnclarke on January 10 at 4:18 p.m.
dataxman on January 10 at 11:39 a.m.
How Idaho got their surplus is irrelevant - the fact is they have it and we don’t.
You win, I can’t argue with that.
citizenX on January 17 at 3:15 p.m.
Now Idaho has a surplus? If Otter really wanted to do something to help it’s taxpayers, he whould eliminate the taxation on food. That hurts the lowest wage-earners hard, and it would be an immediate help to those struggling to get by while earning their lower “right-to-work” wages. You get what you elect, and look at what you got, Idaho voters…