Idaho Gov. Butch Otter is raising no objection to a joint legislative committee’s decision to hold off for another year - until July 1, 2011 - on shifting gas tax funding away from the state parks department and the Idaho State Police; they’ll recommend that move to the full Legislature. “Overall, the governor is OK with the action that they’ve taken regarding putting that off for a year,” said Otter’s press secretary, Jon Hanian. Why this is significant: The shift was a key part of a session-ending deal between Otter and lawmakers that allowed the second-longest legislative session in state history to end this spring, after 117 days. That happened after Otter failed, for a second year running, to persuade lawmakers to raise the gas tax and vehicle registration fees to fund more road work.

“Obviously he feels that that problem is not going away,” Hanian said, and the governor’s task force on transportation funding will look into it. “He expects that that’s something that the task force will add to its list of items to accomplish.” Hanian said Otter “understands the concerns that have been raised” about shifting money from the established recreational trails and waterways programs at state parks. “He expects that the task force will take up finding a long-term solution to that funding question.” Otter’s task force held its organizational meeting in August; its second meeting is scheduled for Oct. 8.

Here’s a link to my full story in today’s Spokesman-Review on the joint legislative committee’s decision yesterday to delay shifting gas tax funds away from the state parks department and ISP for another year, until July 1, 2011. The panel’s decision is a recommendation to the Legislature, but the Legislature set the panel up to figure out the answer to how to proceed. Here’s an interesting twist, however: Lawmakers on the panel said they felt they had “breathing room” because of savings at ITD due to bids on contracts coming in millions below expectations; some even mentioned “at least $34 million” in savings. That was the amount, earlier this summer, that federal stimulus project bids had come in below expectations; as of now, the total savings is up to $50 million - but ITD has designated all of that savings to additional stimulus-funded construction projects. One of those, for example, is the closing of the 2-mile, two-lane gap that would have been created on Highway 95 in North Idaho between a new four-lane highway and existing four-lane road.

ITD says stimulus savings can’t be used for department operations - like filling potholes or plowing snow - and they are one-time funds that won’t come back once spent. Also, ITD says it’s having money problems of its own right now - last week, ITD announced an $8.6 million holdback on its own department budget - a 3.4 percent cut - because its revenues are falling short, compared to appropriations.

A correction: Rep. Raul Labrador, R-Eagle, actually voted “yes” on Sen. Jim Hammond’s motion at the legislative task force today to delay for one year the shift of gas tax funds away from the state parks department; I thought he said “no,” but it was hard to hear him. That makes the vote on Hammond’s motion unanimous, rather than 7-1. To recap: Here’s what the task force decided today: For BOTH parks and the Idaho State Police, it voted to delay the shift by one year, to July 1, 2011. Further, the task force declared its intent that the parks fund shift be permanently reversed, and that the ISP gas tax funds be replaced with a new dedicated funding source for ISP. Said task force Co-Chairman Dean Cameron, R-Rupert, “I wish we had a more concrete answer, but we don’t.”

Lawmakers on the panel said they could afford to put off the decision for a year because the Idaho Transportation Department had such significant savings on highway projects this year from bids coming in lower than expected; and also said they didn’t want to get out ahead of the governor’s transportation funding task force. Interestingly, the move puts off a final decision until after the 2010 election, in which every seat in the Legislature is up for election. Off-road recreation advocate Sandra Mitchell told the panel she supported the one-year delay on the parks shift. “It is a program that has worked admirably for decades,” she said of the longstanding deal to send 3 percent of Idaho’s gas tax proceeds to parks, to account for the gas taxes that are paid by snowmobilers, boaters and other off-road enthusiasts on gas they don’t burn on highways. “We do believe that it is wise to wait - we do that reluctantly,” Mitchell said. “We trust … that you are going to do the right thing, and the right thing is to give us back our gas tax.”

Rep. Rich Wills, R-Glenns Ferry, moved that “we make it clear that it is the intent of the committee to find dedicated funding for the Idaho State Police in conjunction with the governor’s task force.” He said, “I think that way it’s clear that we don’t want to go down the path that is going to cause other agencies some real concern, and that is going to the general fund.” Wills said there are many user-fee oriented options, and those are appropriate, but he opposed any change in the split between local law enforcement agencies and ISP on fine revenues. “That’s worked for generations,” he said. Sen. Jim Hammond, R-Post Falls, also spoke against changing that. Wills’ motion passed 7-1, with just Rep. Raul Labrador, R-Eagle, objecting. Labrador said he favors possibilities like tapping the sales tax money from transportation-related items, and that comes from the general fund.

Rep. Maxine Bell’s motion to delay the shift of gas tax funding away from the Idaho State Police for a year has passed unanimously, winning the 8-0 support of the joint legislative task force. Rep. Rich Wills, R-Glenns Ferry, a retired state trooper, said, “I believe this is absolutely the right path to take. There’s no question that down the road, the revenue stream (from gas taxes) is going to be less. … It gives us an opportunity to look at alternative funding. We need to find alternative funding, there’s no question. … I think this gives us a great opportunity to do that.” Rep. Shirley Ringo, D-Moscow, said she was “intrigued” by the idea of a car insurance surcharge, which, at $1 a month, could raise $19 million a year. “If we’re going to go ahead and delay this, I would like to have us shine some light on that,” she said. “It would be a reasonable source of dedicated funding for ISP.” Rep. Raul Labrador, R-Eagle, said he thought the split in some crime-related funding sources between local governments and the state also should be examined. Noted Sen. Dean Cameron, R-Rupert, “There’s still an immediate need to appropriately fund the state police.”

Rep. Maxine Bell, R-Jerome, has moved to also delay the funding shift of gas taxes away from the Idaho State Police for a year. “This is an area where we need a revenue stream - we need a dedicated revenue stream,” she said, “and again, we’re treading right into the governor’s task force.” Lawmakers on a special task force could pick a new funding source, she said, but it could clash with what that task force decides to do. Sen. Jim Hammond, R-Post Falls, seconded the motion. “We don’t want to get out in front of the governor’s task force,” he said. Plus, he said, “We know for sure we have $34 million” in savings from ITD contracts coming in lower than expected this year. “We do have some breathing room.”

Rep. Raul Labrador’s motion to add a statement from the joint legislative task force that its intention in delaying implementation for a year on the parks funding shift is to permanently reinstate the 3 percent gas tax diversion for parks, has passed unanimously, 8-0. Rep. Maxine Bell, R-Jerome, said the statement also should recognize the economic impact of recreation in Idaho’s small communities.

Sen. Jim Hammond’s motion to delay the parks funding shift for a year has passed on a 7-1 vote, with just Rep. Raul Labrador, R-Eagle, objecting. Labrador then said he wants language added noting that it’s the panel’s intent to repeal the shift, not just delay it. (Note: Labrador later said he actually voted ‘yes’ on Hammond’s motion, making the vote unanimous; see correction above)

Rep. Raul Labrador, R-Eagle, said, “I would object to any statement that we’re going to find other funding sources. … I just don’t think we should get into that. All we’re doing is tying the Legislature.” Labrador said he’s not sure if he’ll support Hammond’s motion for a one-year delay on the parks funding shift. “We have all learned that we made a mistake here,” Labrador said. “It seems to me that it makes no sense to wait a year … I think we should just back down, reverse this decision.”

Sen. Dean Cameron, R-Rupert, said he and Rep. Maxine Bell, R-Jerome, met with Gov. Butch Otter to discuss the parks fund-shift. “The dilemma is that the governor recognizes a significant funding shortage for transportation,” Cameron said. “He had a certain dollar amount he was trying to reach. … He’s caught, he’s stuck. It was a recommendation made by (legislative) leadership.” Cameron said, “His  caution to me was, look, I’d be willing to repeal it, provided that you’re going to provide additional funding for our highways.” The governor does recognize, Cameron said, that the state’s highway fund is healthier than expected right now due to savings on contracts this year from bids coming in lower than expected. “I believe he is willing to go along with the potential delay for a year, and he is willing to go along with a repeal … upon finding additional resources for transportation.”

Sen. Jim Hammond, R-Post Falls, has moved to delay by one year the shift of gas taxes away from the state Parks & Rec department. “Actually I would go a step further and say that it makes little sense to me that we are diverting these funds,” he said. Instead, he said, “the better part of valor at this point” would be to wait for the governor’s highway funding task force to do its work and see where this fits in. Before he proposed his motion, Rep. Maxine Bell, R-Jerome, said she couldn’t see the logic of proposing a pop tax or something else to replace the gas tax funds for parks. “They’re being double taxed - they get to have a tax on the pop they drink while they’re snowmobiling, and they also have a gas tax,” she said. “There really isn’t an alternative funding that is not a double taxation.”

Rep. Shirley Ringo, D-Moscow, said she’d support the motion, but would prefer a permanent cancellation of any shift away from parks, rather than the motion’s one-year moratorium. There’s been no voting yet on the motion - or any others.

If the legislative task force today chooses to do nothing about parks funding, on July 1, 2010 the state parks department will lose 10 positions and $4.25 million, including: $1.2 million from the waterways improvement fund; $1.2 million from the off-highway vehicle fund; $1.2 million from the capital improvement fund; $600,000 from the road and bridge account; and $36,000 from the search and rescue account.

The Idaho State Police used to get 6 percent of the state highway user fund revenue, which mainly comes from the gas tax. Then, in 1992 it went to 5.4 percent, and in 2000, it went to 5 percent. Some lawmakers questioned whether perhaps the amount should be increased, but others said there’s no point - it’s going away, and 6 percent of nothing is nothing, noted Sen. Dean Cameron, R-Rupert. Rep. Rich Wills, R-Glenns Ferry, said a different funding source is needed. “It just was not working with that formula, regardless of the percent,” he said. “We were losing more every year.”

Col. Jerry Russell, chief of the Idaho State Police, told a legislative task force that whatever funding source is identified to replace gas taxes for ISP, “We believe that it should be one that will grow with the state of Idaho.” He noted Utah’s approach, tying the number of state troopers to either the number of vehicle registrations or population. “Implementing an initiative like this would ensure that the Idaho State Police Patrol is aligned with the continuing needs of the people of Idaho, reflecting growth or decline in the base,” he said in a memo submitted to the task force. He then reviewed the potential revenue from an array of possible alternative funding options, from increased vehicle registration fees and a sales tax hike to an auto dealer vehicle sales tax, tire fee, dedicated sales tax on transportation items, surcharge on local and wireless access lines, vehicle insurance surcharge or increases in other fees. A vehicle insurance surcharge, for example, of $1 a month would raise $19.4 million a year for ISP.

Idaho also is losing out on $4.5 million in one-time funds available for highway safety because lawmakers have refused to stiffen the state’s seat belt law, lawmakers were just informed; another $5 million to $6 million because the state hasn’t attained 85 percent seat belt use; another $1 million for not having a primary-offense seat belt law; and $250,000 for not eliminated the nursing-baby exemption from the state’s child safety seat law. That money would have come in this year, and would have been for highway safety improvement.

If Idaho were to follow the lead of Ohio and start charging a $20 late fee for driver’s license renewals and vehicle registration renewals (after a 7-day grace period), it could raise a little over $5 million, legislative budget analyst Keith Bybee just reported to the joint legislative task force, based on the number of Idaho drivers and vehicle owners who typically are late. However, Bybee noted, that amount likely would fall in subsequent years, once people hit with the fee react by changing their behavior and getting things done on time.

There are a couple dozen people gathered in the audience for today’s legislative task force hearing on alternative funding sources for the Idaho State Police and the state parks, once they lose gas tax funds next July - a move many task force members now oppose, at least when it comes to the parks money. “By the end of the day, we’ll make some decisions that will appropriately handle our situation,” Co-Chairman Dean Cameron, R-Rupert, told the panel as it started its meeting.

The legislative task force looking for funding for state parks and ISP has wrapped up its meeting for the day and tentatively set its next meeting for Aug. 11; you can read my full story here at spokesman.com. Rep. Raul Labrador, R-Eagle, warned, “Right now it seems like the only solution is a tax increase, and I suspect that’s not going to pass in the House. So I would like to see us be more broad.” Sen. Dean Cameron, R-Rupert, responded, “It does have to pass both the House and the Senate. That’s partly why we’re into this pickle.” Among the agenda items for the next meeting: A report from the state Tax Commission. The panel will hold its next meeting at the Idaho Supreme Court’s basement meeting room - because today’s meeting quickly became a roast-fest in Boise’s 90-plus summer temperatures. The Capitol Annex meeting room has window air conditioners, but the units are too noisy to run during meetings, and were operated only during breaks. Additional meetings are likely to follow in September and October.

If the Idaho State Parks & Recreation Department got no replacement for the gas tax money it’s now receiving for off-road recreation, it’d lay off 10 people and endanger programs that now result in grants to local government entities - $32 million over the last 20 years - and pay for everything from  snowmobile trail grooming to boat ramps to trails to fixing roads and bridges at state parks. Dave Ricks, acting state parks director, told a legislative task force today that tourism is Idaho’s third-largest industry, and brings $3 billion a year into the state’s rural economies. The loss of recreation funding would impact that, he said.  

The Idaho State Police has some suggestions for how to make up the loss of roughly $20 million from its budget when gas tax funds the ISP now receives shift to highways in a year: Raise vehicle registration fees by $5, to generate $8 million; raise driver’s license fees by $5 to generate $1.7 million; place a surcharge on tires, batteries, vehicle and other transportation-related items, to generate up to $13 million; charge a half-percent fee on all new car sales to raise $10 million; raise transfer, new and out-of-state title fees by $5 to generate $2.7 million; and/or tap into the state’s general fund whenever other funding sources fall short. One catch: Some of those fees, including those for driver’s licenses and titles, already were increased by lawmakers this year.