May 8, 2014 in Idaho

Otter touts brand in western-themed campaign ad

By The Spokesman-Review
 
AdWatch: The Otter ad

WHAT IT SAYS:

Otter is shown by a river and then leading and riding a horse, saying, “I follow the Code of the West, stay true to your brand and your values. As your governor, I’ve stayed true to our conservative values. I’ve balanced the budget without raising taxes, in fact I’ve cut taxes $150 million dollars. And I’m fighting to take back control of Idaho’s water quality control standards from the EPA. But there’s a lot more to do. I’m a proud conservative, fighting for you and working for the Idaho brand.” Phrases including “Balanced the Budget,” “Cut Taxes” and “Fought EPA” are displayed on the screen.

THE MESSAGE: To stress Otter’s “conservative accomplishments,” according to his campaign. “It’s a feel-good ad that an incumbent who perhaps considers himself the front-runner can do, staying above the fray, not taking any shot at his opposition,” while portraying himself as the “conservative” candidate, said Boise State University professor emeritus Jim Weatherby.

THE CLAIMS: The Legislature and Otter have in fact cut taxes by at least $150 million a year since he’s been in office, and legislation passed this year seeks to take primacy for wastewater permitting from the EPA, bringing it to the state Department of Environmental Quality. That change has been sought for years, but Idaho hasn’t had the funds. This year’s bill calls for an eight-year phase-in; the EPA hasn’t opposed the move.

BOISE – Barely over a week out from the primary election, Idaho Gov. Butch Otter has launched his first TV campaign commercial, showing him in a cowboy hat, riding a horse, and touting tax cuts and how he’s “fought EPA.”

“I follow the Code of the West, stay true to your brand and your values,” Otter says in the ad, referring to a cowboy ethics code published in a 2004 book by Wall Street veteran James P. Owen entitled, “Cowboy Ethics: What Wall Street Can Learn from the Code of the West.”

The code has 10 points, including, “Live each day with courage,” “When you make a promise, keep it,” “Ride for the brand,” and “Remember that some things aren’t for sale.”

The ad’s not running in the Spokane TV market, but it’s running statewide, the campaign said, including on cable TV in North Idaho.

In the 30-second spot, Otter boasts, “I’ve balanced the budget without raising taxes – in fact, I’ve cut taxes $150 million dollars.”

Otter is referring to the phased-in grocery tax credit, which this year rebated more than $100 million to Idaho taxpayers; the cut in personal property taxes on business equipment that lawmakers approved last year, for nearly $20 million a year; and the income tax cuts they enacted the year before for more than $30 million, according to his campaign manager, Jayson Ronk.

Former chief state economist Mike Ferguson, who served under five Idaho governors including Otter and now heads the Idaho Center for Fiscal Policy, said, “That’s probably a defensible number.” He noted, “There are other tax cuts that have occurred in the form of sales tax exemptions.”

At the same time that Idaho has cut taxes, it also decreased school funding, prompting local voters to pass millions more in property tax overrides, raising local property taxes. In 2000, local supplemental tax levies for schools totaled about $60 million, Ferguson said; last year, they were nearly $190 million. “They more than tripled,” he said. “The problem is, that is what I would call collateral damage.”

Though it’s an “absolutely valid argument” that those tax increases have offset Idaho’s cuts, Ferguson said, that argument relies on the assumption that had Idaho not cut taxes, it would have funded schools at a higher level and voters wouldn’t have had to pass local levies.

“Those effects are not distinct and items that you can nail down, as far as legislative action,” Ferguson said.

Otter says in the ad, “I’m fighting to take back control of Idaho’s water quality control standards from the EPA.”

Ronk said that refers to the legislation that passed this year to start an eight-year phased-in takeover of primacy for wastewater permitting from the Environmental Protection Agency. The state Department of Environmental Quality got three new employees in next year’s budget as part of the move, which was championed by the Idaho Association of Commerce and Industry, a business lobbying group.

“It’ll be a multi-year process to actually get that,” Ronk said. “The state is going to have to work with EPA to gain control.” Idaho is one of just a handful of states that doesn’t have primacy for that type of permitting under the National Pollutant Discharge Elimination System, which means EPA handles Idaho’s permits rather than the state DEQ.

Asked why Otter waited until so late in the campaign to hit the TV airwaves, Ronk said, “We have a campaign plan that we intend to execute. Radio is running statewide, TV is running statewide.” Asked if Otter has any other ads planned, Ronk said, “That’s to be determined.”

Otter’s been on a “grass-roots get out the vote tour” this week, Ronk said, including stops in Coeur d’Alene, Idaho Falls, Burley, Twin Falls, Mountain Home and more.

Otter’s leading primary challenger, Senate Majority Caucus Chairman Russ Fulcher, started running a statewide TV commercial last week and has billboards posted around the state; Otter has yard signs but no billboards.

Otter has touted Owen’s “Code of the West” for several years, posting it in his campaign office and even sending it out in greeting cards. Owen’s book includes western photography by Sun Valley photographer David Stoecklein. Owen’s previous books include “The Prudent Investor’s Guide to Hedge Funds: Profiting From Uncertainty and Volatility,” published in 2000.

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