Highways and community colleges among Idaho governor's priorities for '08

Byline: Brad Carlson

Idaho's business sector figures to feel the impacts of a number ofproposals and policy stances that Gov. C.L. Butch Otter rolled out today in his State of the State and Budget Message that opened the 2008 legislative session. Otter said he wants to do away with the personal property tax on businesses, and make sure rising property taxes don't force people out of their homes. He favors another $134 million issue of highway improvement bonds backed by anticipated federal funds- but advises against relying on this approach for all transportation challenges - and supports expanding local-option taxing authority to fund transportation and road improvements. He wants to increase funding for community colleges.

The Idaho economy should stay reasonably strong, the governor said.

It's my great pleasure to report to you today that Idaho's economyis fundamentally sound, Otter said. And while we are not immune fromthe major forces influencing the national and world economies, we doexpect to keep growing over the months and years ahead.

He expects job growth in the state to average more than 2 percent over the next three years, nearly double the U.S. average, he said.

Otter said he wants to make sure state government runs as efficiently as possible.

My administration is committed to operating as a single entity rather than as a group of loosely associated agencies, Otter said. His recommendations include using zero-based budgeting wherein each state agency and institution is reviewed on a six-year, rotating schedule starting in fiscal 2010.

Otter's total budget for fiscal 2009, which starts July 1, is $6.6billion. His general fund budget is $3.1 billion.

Here are some other highlights and key themes from Otter's speech and from budget details that his staff released earlier today:

Water: Allocate $20 million for conducting in-depth studies and developing scientific models of every aquifer in Idaho, south and north. Community college funding: Another $5 million in startup funding for the new College of Western Idaho in Nampa, as in 2007. Otter wants each of the three schools to receive $200,000 a year. The existing College of Southern Idaho and North Idaho College now get $150,000. E-mail system efficiency: Otter wants to streamline a system that now consists of 84 e-mail servers in 40 different systems operating in state government. Health information: Otter supports continued efforts bythe state, and major insurance carriers, to move toward a statewide health data exchange." Employee pay and benefits: Otter proposes raising state employees' salaries by 5 percent while shifting the cost of health care benefits to employees. Fuel tax: No increase proposed. Otter would shift some Idaho State Police money from the fuel tax to the general fund over the next two years. Vehicle license fees: Increase them, if transportation efficiency-gain opportunities are identified and carried out. Local-option taxing authority: Expand it to authorize counties to ask taxpayers to levy sales or use taxes to help pay for construction, repair and maintenance of public roads and bridges. Voters would approve these with a two-thirds majority in May or November only. Grocery tax credit: Increase it for low-income residents, to as much as $90 per person. Personal property tax on businesses: Phase it out. Otter did not mention property tax relief for homeowners in his speech, although in mid-2007 he started talking about freezing a home's taxable value at its purchase price until the home is sold.