{"id":14387,"date":"2013-01-04T14:12:56","date_gmt":"2013-01-04T21:12:56","guid":{"rendered":"http:\/\/stateimpact.npr.org\/idaho\/?p=14387"},"modified":"2013-01-04T14:12:56","modified_gmt":"2013-01-04T21:12:56","slug":"rep-bell-idahos-budget-woes-and-the-push-to-repeal-the-personal-property-tax-are-a-perfect-storm","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/idaho\/2013\/01\/04\/rep-bell-idahos-budget-woes-and-the-push-to-repeal-the-personal-property-tax-are-a-perfect-storm\/","title":{"rendered":"Rep. Bell: Idaho’s Budget Woes And The Push To Repeal The Personal Property Tax Are A “Perfect Storm”"},"content":{"rendered":"
\"\"<\/a>

Idaho State Legislature<\/p>

Representative Maxine Bell (R-Jerome) has served on the Legislature's Joint Finance-Appropriations Committee since the early 1990s.<\/p><\/div>\n

Rep. Maxine Bell, a retired school librarian from Jerome, was first elected to the Idaho Legislature in 1988.\u00a0 She’s the longtime co-chair of the Joint Finance-Appropriations Committee<\/a>, which crafts the annual state budget.\u00a0 We spoke December 10.<\/p>\n

Q: <\/span>It seems clear that the personal property tax<\/a> is going to be one of the defining issues this year.\u00a0 Do you think that’s right?<\/p>\n

A: <\/span>I can\u2019t think that it cannot be.\u00a0 This is a perfect storm, as far as I\u2019m concerned.\u00a0 There was a little tax relief last year.\u00a0 But this is a bigger issue than that.<\/p>\n

I\u2019ve not seen anything come out of Rev and Tax that was affordable at this point, but it\u2019s the right thing to do.\u00a0 And frankly I don\u2019t know how to do it, with the other issues that are facing us.\u00a0 I\u2019m hoping that people who can figure this out come forth with something that we can all work with.\u00a0 <\/p>\n

Q: <\/span>You say it\u2019s a \u201cperfect storm.\u201d\u00a0 Usually the connotation of a “perfect storm” is that it\u2019s a negative thing, but it sounds like you do think this is necessary tax relief.<\/p>\n

A: <\/span>I do think it\u2019s necessary, but the negative part of it is the fact that our economy is still struggling. Jeff Sayer with the Department of Commerce is doing masterful work, but he needs some back-up from us. We\u2019ve not been doing that.\u00a0 We\u2019ve been allowing our infrastructure to just simply skate along, and you can\u2019t continue to do that.\u00a0 We expect high efficiency from employees who perhaps the systems have not been taking care of, and that concerns me.<\/p>\n

I think there are some expectations from many of the agencies that should things look better there will be some backfill.\u00a0 And I\u2019m sorry about that.\u00a0 I don\u2019t think we can go back and try to redo or undo whatever it was we had to do.\u00a0 But I\u2019m not sure we can continue to fund the core responsibilities of government at the rate we\u2019re doing it right now.<\/p>\n

Q: <\/span>Do you think there needs to be more money going to state agencies?\u00a0 I think what I hear you saying is that we need to allocate more funding to things that have been neglected since the recession hit.<\/p>\n

A: <\/span>I think we need to buoy up the infrastructure if there are places where it will affect the efficiency of state government, and that does not mean new services or extended services or enlarged services.\u00a0 It just means the proper resources for those services that are statutory.<\/p>\n

Q: <\/span>And you also think there needs to be increased funding for the Department of Commerce.<\/p>\n

A: <\/span>They\u2019re working so hard.\u00a0 The key is to bring good clean industry in, and put people to work, and we\u2019ve not helped them in any way.\u00a0 They\u2019ve pretty much been on their own.\u00a0 I know they\u2019re going to assume that they need a little bit in some kind of a fund to help them with that.\u00a0 That\u2019s a line item, at this point, and this is not a budget, that I can see, that can handle any line items at all, and I think that\u2019s an important line item.<\/p>\n

I don\u2019t think there\u2019s enough new money, so you\u2019re going to have to shift from something you\u2019re doing to do something different.\u00a0 The prison system comes to mind.\u00a0 It\u2019s not good management to have to send people out of state.\u00a0 It\u2019s more expensive.\u00a0 You get less for the money, and it\u2019s just not good management.\u00a0 So there\u2019s an issue that I think will be coming forth, also.<\/p>\n

At this point, I don\u2019t see any way that there can be any budget enlargement with two exceptions.\u00a0 There\u2019s growth in Medicaid and there\u2019s growth in education, and there\u2019s growth in the prison population.\u00a0 And those are the first things we look at, to fund that growth.\u00a0 I can tell you right now that you\u2019re talking 3 percent just funding growth.\u00a0 So beyond that, in order to put any line items to put anything else, I think it looks dreary.\u00a0 I truly do.\u00a0 I hope I\u2019m wrong.<\/p>\n

Q: <\/span>You\u2019re saying that all of those things are in your mind when you\u2019re looking at the personal property tax, and you\u2019re wondering, \u201cHow does this all add up?\u201d<\/p>\n

A: <\/span>That\u2019s exactly what I\u2019m saying.\u00a0 That\u2019s why I say it\u2019s a perfect storm, because obviously that\u2019s an unfair tax.\u00a0 It\u2019s a difficult tax to administer.\u00a0 We should not be funding government on an unfair tax. I\u2019m grateful for those who are going to go to work and try to come up with some sort of solution to that, and I\u2019ll just simply have to remain hopeful that people get back to work continually.\u00a0 But it\u2019s going to be slow.\u00a0 It\u2019s not going to be overnight, and it\u2019s not going to be, perhaps, for this budget cycle.<\/p>\n

Q: <\/span>One of the key issues around the personal property tax is this issue of replacement dollars \u2013 whether the state would make sure that local taxing districts get some of that money back.\u00a0 It sounds like the way you\u2019re talking about it is predicated on the assumption that, yes, you would want to see local taxing districts get some of that money.\u00a0 Is that right?<\/p>\n

A: <\/span>That\u2019s exactly right, because if you just assume that you\u2019ll let some other unit of government suffer from your activity and let them worry and put an unfunded mandate on them… There are school districts involved.\u00a0 There\u2019s county and city government.\u00a0 I\u2019ve just not heard a solution, yet, that would not mean we were a partner in a backfill of some type.\u00a0 I\u2019m not going to sit by and fund state government how I want to while somebody else figures that one out.<\/p>\n

Q: <\/span>One of the big things facing lawmakers is what to do in the wake of the Props 1, 2 and 3<\/a> votes.\u00a0 A big question that\u2019s being asked is whether the state is meeting its constitutional requirements with respect to education funding.\u00a0 Do you think the state is meeting its responsibilities?<\/p>\n

A: <\/span>I thought that was far-reaching.\u00a0 That was Mike Ferguson<\/a> that popped out with that, and I look at that and think, \u201cI don\u2019t think so.\u201d\u00a0 In looking at the funding that has grown and grown and grown over the years that I\u2019ve been there, I think that\u2019s really going a little far.<\/p>\n

The portion of the funding is a little less than it was some years ago, but the pool of funding that it comes from is several times as big.\u00a0 So I would much rather have 48 percent of what we have now to fund with than 50 percent of what we had when I came in the legislature.\u00a0 I was surprised at his statement.\u00a0 I don\u2019t think you can say that the effort was not there.<\/p>\n

Q: <\/span>I wasn\u2019t asking the question based solely on Mike Ferguson\u2019s analysis.\u00a0 A lawsuit was filed not long ago contending that the state is not meeting its constitutional requirements.\u00a0 That suit began with the issue of schools charging fees for certain classes.\u00a0 It\u2019s not only Mike Ferguson who is talking about this.<\/p>\n

A: <\/span>I agree with you.\u00a0 Mike was the one who made the paper here, and it kind of surprised me, because, having worked with him, he knew what the budget was and he knew our efforts all along.\u00a0 So we\u2019ll just have to wait that one out and see where it goes.<\/p>\n

Q: <\/span>Do you expect to see parts of the Students Come First laws resurrected, and do you have a sense of what aspects of the laws have the most traction?<\/p>\n

A: <\/span>You know, I don\u2019t, but that that is policy, and as a funding person, I am very willing to allow those people — those 33 people that the governor is putting on that committee — to go ahead and work that through.<\/p>\n

At this point, my goal is to make sure that the funding is put back in this year\u2019s budget.\u00a0 We will take care of that as soon as we get back.\u00a0 Because once those props went down, the funding didn\u2019t match.<\/p>\n

It\u2019s about $34.5 million.\u00a0 There was $34.5 million that would have been in the technology area.\u00a0 And it needs to go back. That funding simply needs to go back.\u00a0 If not, the schools will be a little over 2 percent down on this year\u2019s funding, and that\u2019s not our intention at all.\u00a0 That\u2019s no one\u2019s intention.\u00a0 I have not seen the draft, but they\u2019re drafting right now<\/p>\n

Q: <\/span>You say this is something you\u2019re planning to deal with as soon as the session gets underway, is that correct?<\/p>\n

A: <\/span>Yes, definitely.\u00a0 That\u2019s just kind of a no-brainer.\u00a0 That\u2019s clean-up, is all it is.<\/p>\n

Q: <\/span>Other things that we know will be big issues, even before the session begins, are the health insurance exchange<\/a> and the Medicaid expansion.<\/p>\n

A: <\/span>I have always been in favor of a state-based exchange for the simple reason that I want to keep state primacy any place I can.\u00a0 I think it\u2019s a smarter thing to do.\u00a0 Actually, it doesn\u2019t seem to me to be that difficult, but those who are against it are truly<\/em> against it.\u00a0 I don\u2019t know where that will go or how that will go.<\/p>\n

Q: <\/span>How about the Medicaid expansion<\/a>?<\/p>\n

A: <\/span>I think that\u2019s one of our most difficult issues.\u00a0 It would be a good thing in many ways, but I am so fearful.\u00a0 I\u2019ve seen so many times when we got something from the federal government and we wound up putting it in place, there were all of the costs of putting it in place, and then we had to fund it.\u00a0 We\u2019d call it a fund-shift.<\/p>\n

I just cannot think that the federal government, once they start to step that match rate down, why that would be a good thing for us to be involved in. And yet, how could you not think of that as a gift, with all of the people that could use that?<\/p>\n

I think that\u2019s much more difficult than the health exchange.\u00a0 I think the exchange has been a lot of noise and fire, whereas this is one is serious, serious.\u00a0 Taking something now that is not sustainable.<\/p>\n

Q: <\/span>Do you want to say what you believe the Legislature will decide?<\/p>\n

A: <\/span>I guess my feeling tells me we won\u2019t, because of those who are so against big government, anti-federal government.\u00a0 But that\u2019s just a very personal feeling on my part.<\/p>\n

I\u2019m going to leave that to the policy people.\u00a0 If the policy people can justify the long-term savings, and justify hooking on with the federal government, who has not been a very trustworthy partner, then that\u2019s their decision.\u00a0 I\u2019ll support them with the funding however they choose.<\/p>\n

Q: <\/span>You have said you don\u2019t view yourself as a policy person; you view yourself as a budget person.\u00a0 But are there things that are your priorities for the session?<\/p>\n

A: <\/span>Obviously, I would love to see us get structurally balanced, so that we\u2019re not spending more than we\u2019re taking in, as we are now.\u00a0 I would like to see us fix some places in the budget where we\u2019ve had to put one-time money into ongoing expenses and hope for\u00a0 a better year a couple of years in a row.\u00a0 Those are my thoughts.\u00a0 And then I will leave the policy on these big issues up to those who are working on them.<\/p>\n

The minute you spend a dime you make policy.\u00a0 But we have no business running ahead and spending money until it is policy from the germane committees.<\/p>\n

This interview has been edited and shortened.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Rep. Maxine Bell, a retired school librarian from Jerome, was first elected to the Idaho Legislature in 1988.\u00a0 She’s the longtime co-chair of the Joint Finance-Appropriations Committee, which crafts the annual state budget.\u00a0 We spoke December 10. Q: It seems clear that the personal property tax is going to be one of the defining issues […]<\/p>\n","protected":false},"author":46,"featured_media":86,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[210,29],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/14387"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/comments?post=14387"}],"version-history":[{"count":0,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/14387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media\/86"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media?parent=14387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/categories?post=14387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/tags?post=14387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}