Panel Rejects Raises For Treasury Managers, Criticizes Suit

Legislative budget writers unanimously refused to let state Treasurer Lydia Justice Edwards give her top aides hefty raises.

Lawmakers also criticized Edwards for pursuing a lawsuit they contend is a waste of money.

The Legislature’s Joint Finance-Appropriations Committee on Thursday endorsed a $1.05 million general tax appropriation for Edwards’ office in the budget year that begins July 1. She had sought almost $1.2 million.

Edwards also asked the Idaho Supreme Court to order the State Insurance Fund to deposit more than $25 million with her office. Her request cites a law requiring all workers’ compensation insurers - private and public - to post a deposit or bond with the treasurer equal to the amount of money that has been awarded to injured workers to guarantee that the awards will be paid.

But another law makes the state Endowment Fund Investment Board the custodian of all Insurance Fund assets. And the Insurance Fund is required to deposit into the endowment fund the amount required to cover all workers’ compensation judgments already entered, as well as claims in the pipeline and those that the agency might reasonably anticipate.