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Eye On Boise

JFAC OK’s ‘trailer’ appropriations for HP deal; reconsiders Admin budget but doesn’t change it

The Idaho Legislature's Joint Finance-Appropriations Committee meets on Thursday morning, March 23, 2017. (Betsy Z. Russell)
The Idaho Legislature's Joint Finance-Appropriations Committee meets on Thursday morning, March 23, 2017. (Betsy Z. Russell)

The Joint Finance-Appropriations Committee met this morning to do three things: Two “trailer” appropriation bills related to the state’s planned purchase of the HP campus in West Boise, and a reconsideration that turned into something of a tempest in a teapot.

On the property purchase, JFAC voted unanimously in favor of the $2 million in general funds required to move the state Tax Commission from its current location to its new home at the HP campus. Rep. Maxine Bell, R-Jerome, JFAC co-chair, told the state tax commissioners in the audience, “Gentlemen, you thought we were going to put you under a bridge someplace.” She added, “I do know of a lot of old farmers with trucks who would come and help with this for considerably less.”

Commissioners Ken Roberts and Tom Katsilometes greeted her suggestion with grins and a thumbs-up.

The allocation comes during the current fiscal year, with carry-over authority to go into the 2018 fiscal year that starts July 1. Roberts, Tax Commission chairman, told JFAC, “The expenses will start occurring probably before the end of this fiscal year, such as architectural design for laying out the buildings. … It’s really dependent on the closure date of the sale, if that is indeed successfully through the legislative body I guess today or tomorrow on the Senate side. Then the Department of Administration will start the process” leading up to a sale agreement. That would be followed by a due-diligence period and then closing, Roberts said.

“We are doing work in-house right now trying to figure out IT requirements,” Roberts said. “We’re an agency that cannot be down for any business days, so if we close up on a Friday at 5 o’clock, we have to be a go by 8 a.m. Monday morning.” Roberts said the move likely won’t be completed before July 1. But, he said, “We’ll be ready to move as soon as the building’s ready.”

JFAC also voted unanimously, 18-0, in favor of a trailer appropriation bill to follow HB 315, the House-passed bill that authorizes the state Department of Administration to collect rent from private tenants at the HP campus. The trailer appropriation grants the department spending authority for $5.5 million next year from rent payments; $3.3 million of that would come from private tenants, and $2.1 million from state agencies, which pay rent to the department, which then covers maintenance costs.

The other item on JFAC’s agenda revolved around HB 299, the Department of Administration budget bill, which had been pulled back from the House. Rep. Neil Anderson, R-Blackfoot, proposed a change to the budget, to remove $1 million that had been approved in case a small office building across from the Capitol Mall that’s owned by the state endowment goes on the auction block next year, so the state could buy it as a new office for the state Division of Purchasing.

Anderson said he doesn’t oppose the move, and believes it’s appropriate to ensure that suitable office buildings adjacent to the Capitol Mall stay in state ownership. But he said he wanted to put that on hold for a year, as the HP campus purchase moves forward, to wait and see which agencies move where. “Let’s give ourselves a year,” Anderson said.

Various members of JFAC raised concerns about that move, including that there’s no guarantee the endowment might not sell the property in the next year and the state would lose out; that the cost could be higher in a future year, when there’s an appraised value now that’s covered by the proposed appropriation; and more. “I guess my anxiety would be that the location of the property in the Capitol Mall is valuable to the state,” said Rep. Van Burtenshaw, R-Terreton. “I would want some assurance that it be there in a year if we postpone this, and I guess you’re saying you’re not sure. Is that correct?”

Bell commented, “I doubt that anything is sure in this business.”

After a bit more discussion, House Speaker Scott Bedke stepped to the microphone and asked the co-chairs to set the joint committee at ease, and said he wanted to meet with them in Bell’s office. Anderson and the committee’s vice-chairs also were beckoned into the meeting.

After a bit, Deputy Attorney General Clive Strong, who represents the state Land Board, arrived and began drafting new “intent language” to go in the budget bill.

Finally, JFAC reconvened, and voted unanimously to leave the appropriation for the Department of Administration next year as-is, including the $1 million, but add this intent language: “It is the intent of the Legislature that this appropriation shall be used to participate in the auction of the 590 W. Washington S. property in Boise, Idaho, only if the Idaho Board of Land Commissioners proceeds with the disposition of the property during FY 2018.”

As far as I could tell, that was what the budget already envisioned.



Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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