Counties Seek Greater Borrowing Authority 3 Percent Cap Puts Pressure On North Idaho Officials

North Idaho counties have adopted a resolution asking the state’s permission to borrow money above Idaho’s new 3 percent cap on annual increases in the portion of local budgets financed by property taxes.

The resolution, proposed Friday by Latah County Treasurer NonaRae Robinson at the regional Idaho Association of Counties meeting in Moscow, would allow registered warrants. They are used to pay for unforeseen costs such as murder trials, natural disasters or other emergency situations.

Robinson said the counties are feeling pressure due to the 3 percent cap enacted by the Legislature this year at the request of Gov. Phil Batt.

Previously, counties had been allowed to levy $750,000 above the tax ceiling in the next budget year. The only other method of paying for emergencies is a bond election.

Dan Chadwick, Idaho Association of Counties executive director, said Batt is sympathetic to the situation.

The governor’s staff, the association and the state Tax Commission are working on a resolution to be forwarded to the association’s statewide conference in September. It then would go to the Legislature for consideration.

Kootenai County Clerk Tom Taggart also brought up the idea of the state picking up the tab that local governments now are financing with property taxes to help support the College of Southern Idaho in Twin Falls and North Idaho College in Coeur d’Alene.

He said that fund is a big burden and the amount that would be saved could be used for other purposes.