Kris Sabo of Sagle was surprised when an official state-funded letter arrived in the mail from Idaho Sen. Sheryl Nuxoll, R-Cottonwood, talking about Nuxoll's record and thanking supporters as she seeks re-election. “My gosh, she's from Cottonwood – where the heck is that?” Sabo asked. “If she's using our money to help her campaign to keep her job, that shows disrespect for our money. Nobody's going to pay for me to go out and try to keep my job.”

Sabo currently is in Idaho's legislative District 2, one of the North Idaho Panhandle legislative districts. But redistricting in Idaho will put her in the new District 7 next year, which stretches from southeastern Bonner County all the way south to the Valley County line at the mid-section of the state; Cottonwood is nearly a four-hour drive south of Sagle.

Though state senators can send out taxpayer-funded mailings, up to a $2,000 annual limit, this one's raising eyebrows because Nuxoll sent it to about 1,700 Republicans not only in her current district, but also in the new district she'd represent if she wins another term. “I just approached it as informing people. This is an informational letter,” Nuxoll said. “There might have been one negative comment.” She added that she sent it just to Republicans “because I am a Republican and I had to limit the number of letters going out to keep under my limit by the state.”

Senate President Pro-Tem Brent Hill, R-Rexburg, says he wishes he'd addressed the old district/new district issue with senators, but since it only comes up every 10 years – when new legislative districts take effect – no one thought of it. “We probably should have discussed it and maybe even got some kind of ruling from the Attorney General's office,” Hill said. “We did not do that.” You can read my full story here at spokesman.com, and click below for the full text of Nuxoll's letter.
  

Idaho Power Co. gained more lobbying might from inside government, as another of the governor's former chiefs of staff registered to become a paid lobbyist for the state's biggest utility, reports AP reporter John Miller. Jason Kreizenbeck, who quit as Gov. C.L. “Butch” Otter's top aide in October, will lobby the Legislature and his former boss. His predecessor, former chief of staff Jeff Malmen, is also an Idaho Power lobbyist. Unlike more than half of states, Idaho has no revolving door restrictions that force legislators or government employees to undergo a waiting period before lobbying former colleagues; click below for Miller's full report.

Senate Finance Chairman Dean Cameron, R-Rupert, said despite the positive budget outlook lawmakers are facing with state revenues growing, he doesn't feel like the state's in surplus mode, with its revenue still below 2008 levels. “From my way of thinking, a surplus is when you have paid all your bills and you have money left over,” he said. “We're not at that point. We haven't paid all our bills.” He pointed to tens of millions that state hospitals and nursing homes assessed themselves to help Idaho keep its federal Medicaid matching funds this year, and automatic salary fund reductions built into the public school budget going years out into the future. “That in my mind should be paid for,” he said. “So in my mind, we're not operating with a surplus.”

Said Cameron, “I guess early on I cringed at all the jubilation. … I'll be happy when we get back to revenues growing at a reasonable pace,” and ground lost since 2008 has been made up. “Then I'll breathe a sign of relief. Until then, it's more pain, it's just in degrees of agony.”

Idaho's longitudinal data system for public schools is working better now, JFAC members were informed today. After the big data upload in November to calculate school enrollment, legislative budget analyst Paul Headlee said the state Department of Education is reporting that 141 school districts or charter schools submitted error-free data, out of 159; that's up from just nine the previous year. “So it appears that there's been quite an improvement in the quality of the data that's being submitted from the school districts to the department,” Headlee said.

Sen. Bert Brackett, R-Rogerson, noted, “The state spent millions on this longitudinal data system.” He asked how much school districts have spent. Tom Taggart, president of the Idaho Association of School Business Officials, said, “It's going to be an ongoing burden on the districts. It'll become less so after we've worked it out and accommodated it. I know in our district we've had five people directly involved and put hundreds of hours into it.”

Idaho's various reserve funds hit a high of $393 million total at the end of fiscal year 2008, but now they're projected to be at $30.4 million by the end of the current fiscal year on June 30. That includes the unendowed portion of the Millenium Fund, which comes from tobacco proceeds; the economic recovery reserve fund, which basically has been spent all the way down; the public education stabilization fund, which had $11 million on June 30, 2011, and is projected to have $15.5 million by the end of this fiscal year; the budget stabilization fund, also spent down; and the governor's emergency funds, which stand at $3 million.

Legislative budget analyst Ray Houston told JFAC, “It took you five years to get up to $400 million, and it took you four years to get down to $30 million.”

Senate Finance Chairman Dean Cameron noted that if lawmakers consider raises for state employees - known as CEC, or “change in employee compensation” in budgeting speak - the “Students Come First” school reform laws could complicate that when it comes to public schools. That's because the laws require a shift of 2.38 percent out of salary funds next year to fund technology boosts and teacher merit-pay bonuses.

“We know the governor, at least at this point, has recommended about a 3 percent CEC,” Cameron said. “One of the dilemmas we have is if you apply that to public schools, if they have 3 percent CEC and at the same time a 2.38 percent reduction, that won't translate to a 3 percent for public schools. We have to keep in mind how to work through that. … There may be a perception issue that there may be more revenue there than will be available.” Legislative budget director Cathy Holland-Smith responded, “That's correct.”

As Idaho lawmakers begin to plan for setting the fiscal year 2013 budget, they'll have a beginning balance left over from the current year, because state tax revenues came in so far above the amount for which they budgeted. Under current revenue forecasts, that'll be $130.3 million, legislative budget director Cathy Holland-Smith told JFAC this morning. “This $130 million … assumes that the revenue forecast will stay,” she said. “I think we can all assume that it will go down.”

Then, if state revenues next year grow by a hypothetical 3 percent, $26 million is automatically transferred to the state's budget stabilization fund, the next $15 million bump in the grocery tax credit is funded, and non-discretionary adjustments are covered to keep state services at their current level, lawmakers could cover all costs and still have $79.3 million left over. State agencies have submitted $147 million in requests for new line items vying to be funded from that pot next year, including restoring cuts; other potential uses include pay hikes for state employees who've long gone without; further replenshing drained rainy-day funds; or other moves. “It's going to be the call of the Legislature,” Holland-Smith said.

If state tax revenues next year grow by 4 percent rather than 3 percent, the amount available after covering costs for current service levels grows to $105.4 million. If it's 5 percent, the amount grows to $131.4 million.

“It really is good news, but it's cautionary, because there is a significant pent-up demand,” Holland-Smith said.

Legislative budget director Cathy Holland-Smith noted that there are differing views of the $16.2 million that state tax revenues have lagged behind forecasts since the start of the fiscal year on July 1. Though that's only a 1.6 percent shortfall from the forecast, and lawmakers budgeted well below the forecast, it suggests that “that revenue forecast is not going to hold,” she said.

“Right now, on paper, there's $160 million … of additional revenue that's available compared to when you budgeted,” she told lawmakers on the Joint Finance-Appropriations Committee. If Idaho then covered the $4.2 million in deficiency warrants that have been run up for fires and pest control, and funded all $30 million in supplemental budget requests for the current year that have come in, lawmakers still would have a $127.2 million surplus as they begin their budget-setting task for next year, if revenue continues to come in as predicted in the August state forecast.

“That's not likely to happen,” Holland-Smith said. Rather than growing by 6.4 percent, she said it's now looking like state revenue may grow at 4 or 5 percent, so the forecast could be revised. “It's likely that you're going to begin to see that pushdown,” she said. Because every 1 percent of the state general fund is $26 million, “You can quickly see where that would change,” she said. “We'd be probably right in the (range of) $50 million off of that $127 million surplus.”

That would leave lawmakers with a $77 million state budget surplus.

Every member of the Legislature's Joint Finance-Appropriations Committee has turned out for today's interim meeting, where the first agenda item is a general fund update. JFAC Co-Chair Dean Cameron, R-Rupert, told legislative budget director Cathy Holland-Smith that the lawmakers are looking forward to hearing about all the extra money the state's going to have.

The Idaho Transportation Department had been working on legislation to propose in January to ban texting by commercial truck drivers, to comply with a recently enacted federal rule, but now the proposed legislation is being withdrawn. The reason: Another new federal rule has come out, banning all use of handheld cell phones by interstate commercial truck and bus drivers while operating their vehicles.

Idaho has to comply with the first rule by Oct. 20, 2013; it has three years to comply with the new one on cell phones. Rather than move ahead with just the first part, ITD's staff is recommending holding off until the 2013 legislative session, and developing legislation to bring the state into compliance with both rules. The ITD board, which is meeting today, is expected to approve its staff's recommendation to hold off until next year to come up with more comprehensive legislation, to “avoid confusion on the part of vehicle operators and law enforcement.”

Meanwhile, Idaho lawmakers have been debating texting-while-driving bans for all drivers for several years, without ever reaching agreement on any particular proposal; some Idaho cities, including Twin Falls and Meridian, have passed their own bans since state lawmakers haven't acted.
  

During the state Legislature's Health Care Task Force discussion this morning on health insurance exchange legislation, Rep. Carlos Bilbao, R-Emmett, said he's visited lots of senior centers and nursing homes in his district in the past few months, and has found people there both concerned and confused about the exchange and what it would mean. State Department of Insurance Director Bill Deal responded, “First of all, if you're at your senior citizen centers, you're dealing with a different group of people.” People age 65 and over qualify for Medicare and aren't a part of the exchange. “The exchange goes up to (age) 64,” he said.

Task force Co-Chairman Rep. Gary Collins, R-Nampa, noted that for seniors, Senior Health Insurance Benefits Advisors, or SHIBA, offers guidance on how to navigate the various coverage options under Medicare; SHIBA's website at the state Department of Insurance says, “We offer free and unbiased information, counseling, and assistance regarding senior health insurance. We do not sell insurance, recommend policies, agents, or specific companies. It is our goal to provide you with up-to-date and objective information to assist you in making informed buying decisions.”

Deal said the idea under the proposed Idaho health insurance exchange is that uncompensated “navigators” would fill the same role for those ages 64 and under that SHIBA does for seniors with Medicare.

The Idaho Legislature's Health Care Task Force got a detailed rundown this morning from Bill Deal, director of the Idaho Department of Insurance, on the latest draft of legislation to establish a health insurance exchange in Idaho. Deal said the latest draft, from Dec. 9, has been developed by Gov. Butch Otter's health care council, a drafting committee from the Department of Insurance, and “innumerable recommendations that have come from people interested, and many of those have been incorporated.” The department also has been holding public meetings around the state on the plan; a recent one in Idaho Falls drew more than 60 people.

The plan envisions a resource for Idaho purchasers of individual and small employer health benefit plans, that would include listings of all the qualified plans available along with their costs and benefits, and uncompensated “navigators,” who could be anyone from chambers of commerce to unions, who could help purchasers sort through the various plans. The exchange would be overseen by a 13-member board, including three representatives of health insurance companies, two of insurance agents or “producers,” one of individual consumers, and three representing various sizes of small employers in Idaho. The governor would appoint the board. An advisory panel of providers, including physicians, pharmacists and so forth, would advise the board, and the board would designate at least one of its members as a liaison to the provider advisory committee.

Rep. John Rusche, D-Lewiston, said, “I think the advisory committee is a good approach.” But, he said, “I have had feedback from several people that the governance board seems to be very heavy with the insurance industry … (and) light on purchaser or citizen input.” Deal said the board will be an administrative body, and it'll be important for members to have management experience and know a lot about information technology, since the whole exchange will be tied to an online portal. The board, he said, won't be reviewing the financial stability or market conduct of insurance providers - that duty will remain where it is now, with the Department of Insurance.

The Health Care Task Force likely will meet again, possibly the first week of the legislative session, to review the final version of the legislation.

Sen. Tim Corder, R-Mountain Home, has been named chairman of the Senate Local Government & Taxation Committee, as that panel's chairman, Sen. Joe Stegner, R-Lewiston, has left the Senate to be the new chief lobbyist for the University of Idaho. Corder is a fourth-term senator who currently chairs the Senate Agricultural Affairs Committee; that post now will go to Sen. Jeff Siddoway, R-Terreton.

Senate President Pro-Tem Brent Hill said, “As we enter this session, continuing Idaho's slow but stable recovery is paramount. Sen. Corder is a proven businessman who understands the need for a pro-growth approach to tax policy. I look forward to his continued leadership on the committee.” Corder already served on the panel, as does Hill, who chaired it before he was elected president pro-tem.

Siddoway, a third term senator and a rancher, is a past president of the Idaho Wool Growers Association. In a news release, the Senate GOP leadership called Siddoway a “natural fit” for the ag chairmanship.

On the lower level of the Coeur d’Alene Public Library, 11 computers sit in a circle for use by kids, with Internet filters blocking access to inappropriate material. “Adults can’t use those,” said Bette Ammon, library director.  Upstairs, kiosks offering work stations with Internet filters for adults are usually busy; a computer lab with unfiltered computers also draws patrons. “They’re clearly marked, and people can choose,” Ammon said. “It appears to be working really well.” But the Coeur d’Alene library, like every other library in the state, will have to change its system between now and October, under a new law enacted by the Idaho Legislature this year; you can read my full story here from Sunday's Spokesman-Review.

Gov. Butch Otter has appointed Gayle Batt of Wilder to complete the Idaho House term of state Rep. Pat Takasugi, who died after a three-year battle against cancer of the appendix. Batt was Takasugi's choice to fill in for him in the last legislative session, when his health prevented him from attending the session.

“I have known Gayle for years, and I know her to be a keen student of public policy and the legislative process,” Otter said in a statement. “She knows her county, her district and her state exceedingly well, and I have great confidence that she will continue to be an exemplary member of the Idaho Legislature.”

Batt was Takasugi's campaign manager in both 2008 and 2010, and is a former president of  the Food Producers of Idaho and the Canyon County Republican Women. Click below for the governor's full announcement.
  

Idaho lawmakers are facing something they haven't seen in years: A 'manageable' budget. When they convene in January, they'll likely be able to balance next year's state budget without further cuts, and even make up some cuts and start refilling the state's drained reserve funds, according to figures unveiled Tuesday. They're still wary, however. “We'll certainly know a little bit more by the time the legislative session begins,” said Senate President Pro-Tem Brent Hill. “It's a long ways from where we were five years ago, but at least it shows we're headed in the right direction.”

After legislative budget chief Cathy Holland-Smith briefed Idaho's Legislative Council on budget scenarios including one assuming 3 percent revenue growth next year, state Legislative Services Director Jeff Youtz, a former longtime legislative budget chief, said he was struck by the fact that the scenarios all showed Idaho easily covering its costs next year, without having to dip into reserves to balance the books. “We haven't been able to do that in three years. We have some options,” Youtz said. “We've got a manageable budget situation.” Said Wayne Hammon, Gov. Butch Otter's budget chief, “We still have a lot of work to do on the budget, but it's not going to be as painful as it's been.” Otter's looking as possibly restoring some cuts to education and addressing hard-hit state employee compensation. You can read my full story here at spokesman.com.
  

Idaho's Legislative Council, the joint committee that handles the business of the Legislature when it's not in session, today voted down a proposal to add back two legislative staff positions to partially make up recent years' cuts. Legislative Services Director Jeff Youtz presented a request to add one budget analyst; there currently are six, down from the usual eight; and one legislative auditor, as that division is down three auditors from its level five years ago. Legislative Audits Division chief Don Berg explained that audits of state agencies take a certain number of hours, and they have to be done and done by certain deadlines; with less staff, auditors have to work overtime, and the cost ends up the same as adding back a position.

Rep. George Eskridge, R-Dover, said, “I'm hesitant to approve an increase beyond the status quo. … I would remind us, we're not cutting anybody, we're just talking about adding two new employees. … Although we recognize the workload of our staff, I still maintain we're growing government at a time we don't have an increase in our economic recovery.”

Sen. Nicole LeFavour, D-Boise, said, “We've been cutting staff and cutting government for more than four years now, since the very beginning of this recession. … Some of the cuts in fact don't save us money. … I think we have to be smart about this.” But Sen. Jim Hammond, R-Coeur d'Alene, said, “I recognize the challenge that the LSO personnel have in serving all of our needs, but at the same time I don't see a budget coming forth that's going to allow for anything but an MCO (maintenance of current operations) budget, and I would move for an MCO budget, maintenance of current operations.” Rep. John Rusche, D-Lewiston, offered a substitute motion to approve the new staffers, but it died on a voice vote, and Hammond's motion passed.

The final decision will be made by JFAC when it sets budgets. Youtz said, “Whatever the Legislature ends up giving us, we'll make it work for you and make it work well. Thanks for the discussion.”
  

Here's a news item from the Associated Press:  BOISE, Idaho (AP) — An Idaho legislator says he'll introduce a measure in 2012 to prevent Boise-area lawmakers from boosting their state retirements with per diem payments. Rep. Dennis Lake of Blackfoot says it's unfair that local lawmakers can get more-generous pensions compared to out-of-town legislators for identical work. Three weeks ago, The Associated Press reported Canyon County Sens. John McGee and Curt McKenzie banked daily $122 payments for a second residence — even though McGee lived with his parents and McKenzie slept on an office couch. The AP also reported these payments count toward McGee's and McKenzie's pensions because their primary residences are within 50 miles of the Capitol. Meanwhile, Idaho's government payroll system doesn't count per diem toward retirement for lawmakers like Lake whose primary residences are more than 50 miles away.

The dustup over legislators' per diem - after the Associated Press reported that two Canyon County senators billed taxpayers $6,400 apiece for a second Boise residence during the session while one slept on his law office couch and the other stayed with his parents - could prompt reforms of the per diem system, AP reporter John Miller reports today. Click below for his full article.

AP reporter John Miller reports that state Sen. Curt McKenzie of Nampa must return more than $2,400 in inappropriate mileage reimbursements for travel from his Nampa home to the state Capitol during the legislative session, when he also was getting reimbursed for maintaining a second residence in Boise during the session, while actually sleeping on the couch at his Boise law office. McKenzie said he was unaware he was also getting the mileage reimbursement, and didn't ask for it; click below for Miller's full report. Before that news came out, McKenzie sent a guest opinion to the Idaho Statesman defending his per diem use; you can read it here at Kevin Richert's blog. It says, in part, “The suggestion that any of us serve in order to get a little extra per diem just doesn’t hold water.”