Lawmakers react, Otter sticks by his budget figures

Reaction from lawmakers has been mostly positive to Gov. Butch Otter’s budget proposal today, but that’s with a big “if” - if they buy his revenue forecast, which lowers this year’s state tax revenue growth from 6.4 percent down to 4.4 percent, and then forecasts next year’s general-fund tax revenues to grow 5.8 percent over the lowered total for this year. “That still remains to be seen, as to whether we can hit that number in 2013,” said Sen. Dean Cameron, R-Rupert, co-chairman of the Joint Finance-Appropriations Committee. Cameron said, “Obviously I’d love to see tax relief, and will advocate for tax relief, provided we’ve restored our agencies, we’ve paid our bills, we’ve taken care of public education … restored some of our reserves.”

Sen. Shawn Keough, R-Sandpoint, said she appreciated the governor following through on his commitment to restore some of the funding cut from public schools. As for tax cuts, she said, “I need to see what the numbers look like.” Rep. George Eskridge, R-Dover, said, “I think all in all it was a good outline. I’m just hoping we have the funding and the revenues to support that.”

Asked what he’d give up from his agenda if lawmakers don’t buy his revenue figures - tax cuts? pay boosts for state workers? deposits to reserve funds? - Otter, speaking at a media availability in his office after today’s State of the State message, declined to say. “We have a great deal of confidence in the numbers that came out this morning,” the governor said. “We feel very comfortable. … So I’m not putting anything on the gallows.” He added, “This is one of the most pleasant State of the States since ‘07 that I’ve had the opportunity to give,” with the economy improving. “I think we’re seeing some real successes.”

He called his $5 million IGEM proposal an “extraordinary” thing for the state to be doing, “during this tough time, to put a $5 million bet” on job creation.

House Minority Leader John Rusche, D-Lewiston, said of the governor’s agenda, “It could be worse,” but he questioned cutting taxes without restoring deep cuts to programs such as mental health and substance abuse, which he said are pressuring local governments and communities. “Does it make sense to give a $45 million tax cut when we don’t know who it’s going to, what it’s going to do, but at the same time we’re going to dump this extra cost and extra hardship on Idaho families and local governments?” Rusche asked. He also criticized the focus on funding the “Students Come First” reform initiative in the school budget, saying, “A significant part of that money is going to be siphoned off for out-of-state for-profit companies, not to support teachers and the communities as it would have otherwise.” Legislative Democrats have scheduled a press conference for tomorrow morning to respond to Otter’s agenda.