Donna Yule, executive director of the Idaho Public Employees Association, raised concerns about the proposed bill to cut the top personal and corporate income tax rates. “Even Gov. Otter recently warned against using tax cuts to starve government,” she said. “Some people will argue if this goes forward it will only cut $20.7 million from our general fund. Cutting $20.7 million from the general fund will have major consequences to our state government.”
She questioned how lawmaker will fund the governor’s education task force recommendations and a proposal to expand the state’s investment in workforce training. “Where will that money come from if you cut another $20.7 million out of the general fund?” she asked. She noted that Idaho’s state employee salaries lag far behind market levels. “20.7 million dollars could cover raises for a lot of state employees,” she said.
“There are many crucial programs in Idaho that depend on money from the general fund,” Yule told the Legislature’s Tax Working Group. “Which programs are you going to cut?”