Fiscal Year 2007: The General Fund revenue estimate increased by $43

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Sine Die Report I D A H O L E G I S L A T U R E 2008 Session Summary Published by the Legislative Services Office April 2008 Contents Legislative Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Committee Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Volume of Legislation and Length of Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Rules Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Legislative Action on Major Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2008 Legislative Council Interim Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2008 Vetoed Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Budget Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FY 2008 Budget Update Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 FY 2009 Budget Update Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 General Fund Comparison of JFAC Action to: Previous Year’s Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Governor’s Recommended Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 FY 2009 General Fund Revenue and Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . 26 This report and a complete listing of all legislation are available on the Idaho Legislature’s Internet site. Full text of all bills is included, along with statements of purpose, fiscal notes and legislative action. The Legislature’s Web site is: www.legislature.idaho.gov 2008 Sine Die Report Page 3 2008 Leadership Senate James E. Risch, President Robert L. Geddes, President Pro Tempore Bart Davis, Majority Leader Joe Stegner, Assistant Majority Leader Brad Little, Majority Caucus Chair Clint Stennett, Minority Leader David Langhorst, Assistant Minority Leader Kate Kelly, Minority Caucus Chair House Lawerence Denney, Speaker Mike Moyle, Majority Leader Scott Bedke, Assistant Majority Leader Ken Roberts, Majority Caucus Chair Wendy Jaquet, Minority Leader George Sayler, Assistant Minority Leader John Rusche, Minority Caucus Chair 2008 Sine Die Report Page 4 2008 Committee Chairs Senate Tom Gannon, Chair
Agricultural Affairs Committee John Andreason, Chair
Commerce and Human Resources Committee John Goedde, Chair
Education Committee Dean Cameron, Chair
Finance Committee Patti Anne Lodge, Chair
Health and Welfare Committee Denton Darrington, Chair
Judiciary and Rules Committee Brent Hill, Chair
Local Government and Taxation Committee Gary Schroeder, Chair
Resources and Environment Committee Curt McKenzie, Chair
State Affairs Committee John McGee, Chair
Transportation Committee House Tom Trail, Chair
Agricultural Affairs Committee Maxine Bell, Chair
Appropriations Committee Max Black, Chair
Business Committee Robert Schaefer, Chair
Commerce and Human Resources Committee Bob Nonini, Chair
Education Committee Dell Raybould, Chair
Environment, Energy and Technology Committee Sharon Block, Chair
Health and Welfare Committee Jim Clark, Chair
Judiciary, Rules and Administration Committee Lenore Barrett, Chair
Local Government Committee Bert Stevenson, Chair
Resources and Conservation Committee Dennis Lake, Chair
Revenue and Taxation Committee Thomas Loertscher, Chair
State Affairs Committee JoAn Wood, Chair
Transportation and Defense Committee Rich Wills, Chair
Ways and Means Committee 2008 Sine Die Report Page 5 Introduction The historic 2 nd Regular Session of the 59 th Idaho Legislature became the only Legislature in Idaho history to meet outside of the Idaho Capitol Building. After convening in the unfamiliar surroundings
of the remodeled Capitol Annex, the Legislature soon found its rhythm and worked around any
inconveniences inherent in the much smaller facility. In fact, legislators were able to pass more bills
through both bodies of the Legislature in the first eight weeks of the session than any session of
the last ten years. Another challenge overcome by this Legislature was a stark change in the economic picture that
saw General Fund revenue collections drop significantly below projected estimates, even as the
session was unfolding. The Joint Finance-Appropriations Committee (JFAC) had to change strategy
in midstream and adopt a spending plan that adjusted appropriations downward to match a more
realistic picture of the revenue situation. The Governor’s spending plan, which was developed in
large part before revenues started to dip, called for a 9.1 percent increase overall, which included
both ongoing and one-time expenditures. JFAC ultimately reduced the General Fund budget
blueprint to 4.6 percent overall, with an ongoing increase of 3.79 percent. The change in economic
conditions had a direct impact on many issues facing the Legislature, effectively reducing the scope
of the agenda that could be addressed in an uncertain fiscal situation. Even then, the breadth of public policy issues the Legislature addressed in 2008 was typically far-
reaching and included local option taxes, statewide aquifer management, transportation funding,
teachers’ salaries, state health insurance, energy, air quality, substance abuse treatment, election
law, business property tax relief, the grocery tax credit, inmate growth in corrections, community
college funding and wolf management, to name a few. Among the highlights of the Legislature’s accomplishments, which are outlined in more detail
throughout this report, were increased relief from the sales tax on groceries, increased funding for
substance abuse treatment, $134 million in GARVEE bonding for the "Connecting Idaho" roads
project and $20 million for a statewide aquifer planning and management effort. Legislators also
exempted businesses from paying taxes on the first $100,000 worth of their equipment, which will
become effective when state tax revenue grows by at least 5 percent. During the interim between sessions, legislators will continue their work on interim committees that
study energy and natural resource issues. In addition, the Legislature authorized two new interim
committees to study property tax revenues and expenditures and medical education needs in
Idaho. Senate and House leaders also may form task forces to look at other interests of particular
concern in preparation for the 2009 legislative session. Follow all the interim action on the
Legislature’s Web site at www.legislature.idaho.gov. 2008 Sine Die Report Page 6 Length of Recent Sessions 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 87 82 93 87 69 118 68 82 87 68 Volume of Legislation and Length of Session During the 2008 legislative session 960 proposed pieces of legislation were prepared for legislative
committees and individual legislators. From that initial group of draft proposals, 635 bills were
actually introduced, along with another 73 various resolutions, memorials and proclamations. By
the end of the session, 413 bills had been passed. Of those, the Governor vetoed three bills and
vetoed line items in three other bills (see p. 19). After final legislative action and following the
Governor’s review, 65 percent of introduced bills became law, with the majority of the new laws to
become effective July 1, 2008. Length of Session W ith adjournment sine die on April 2, the length of the 2008 legislative session was 87 days. 2008 Sine Die Report Page 7 Rules Review At the beginning of each legislative session, the Legislature takes up the important task of reviewing
the pending, pending fee and temporary rules that have been promulgated by the administrative
agencies. The Legislature can prevent pending rules from going into effect by rejecting them.
Pending fee rules only go into effect if the Legislature approves them. Temporary rules die at the
end of the legislative session if not approved by the Legislature. The House and the Senate were each asked to review 244 individual rule dockets during the 2008
legislative session, totaling over 2,370 pages. This is up from the 225 individual rule dockets,
totaling approximately 2,280 pages, reviewed by the Legislature during the 2007 legislative session.
Once again, the Senate Health and Welfare Committee did the heavy lifting with 88 individual
rulemaking dockets, totaling 913 pages. The Commerce and Human Services Committee ranked
second on the Senate side, reviewing 70 individual rulemaking dockets, totaling 315 pages. On
the House side, the Health and Welfare Committee reviewed 84 rulemaking dockets, totaling 853
pages, while the Business Committee reviewed 36 individual rulemaking dockets, totaling 226
pages. Nine pending rules were rejected by the 2008 Legislature: < A Bureau of Occupational Licenses rule on education and experience requirements for
drinking water and wastewater professionals; < A Department of Agriculture rule governing the DCPA [Dimethyl Tetrachloroterephthalate]
Pesticide Management Plan; < A Department of Commerce rule on the regional travel and convention grant program; < A Real Estate Commission rule concerning a minimum Commission teaching standard; < A Department of Health and Welfare rule governing temporary assistance to families
eligibility; < A Department of Juvenile Corrections rule relating to appointment of alternative members to
the Custody Review Board; < A Department of Parks and Recreation rule relating to negligent operation of a motorboat; < A Division of Building Safety rule on licensing to work on water conditioning equipment; and < A Division of Human Resources and Personnel Commission rule establishing the policies
and procedures of the Idaho Personnel System. Three pending fee rules were rejected: < A Board of Naturopathic Medical Examiners rule establishing fees for application, original
license and renewal of license; < A Department of Insurance rule eliminating a reduced fee for electronic renewal of licenses;
and < A Department of Water Resources rule relating to dock fees. One temporary rule of the Division of Building Safety relating to building code enforcement was
rejected. 2008 Sine Die Report Page 9 2008 Legislative Action on Major Issues Agriculture H 393 – Revises the registration process for
fertilizers, requires that storage facilities be
registered and raises inspection fees for fertiliz-
ers. H 394 – Increases the minimum tonnage fee for
soil and plant amendments. H 426 – Creates “Idaho Ag in the Classroom” as
a separate entity to provide an educational
program that will afford students in K-12 with a
better understanding of the crucial role of agri-
culture in all aspects of society and of how
Idaho agriculture relates to the rest of the world. H 433 – Allows the boards of directors of irriga-
tion districts some flexibility relating to canvass-
ing election returns in that they may now meet
to canvass returns on or before the Monday
following the election to complete the canvass
of returns. H 474 – Allows irrigation districts to amend their
bylaws to allow electors who live within fifteen
miles of the districts to serve on the board. H 514 aaS – Provides for independent financial
audits of soil conservation districts. S 1424 – Allows the boards of irrigation districts
to authorize preliminary studies to determine the
feasibility, costs and expenses of proposed local
improvement districts and allows the boards to
either pay for the study out of the General Fund
of the district or, as a condition of proceeding
with the formation of a local improvement dis-
trict, require the petitioners to provide a deposit
which is estimated to pay for the study. SCR 137 – Urges the Chicago Climate
Exchange's technical advisory committee to
approve a designated "cropping region" for
Idaho to assist the ongoing efforts of the Idaho
Soil Conservation Commission and the Idaho
Carbon Sequestration Committee to develop a Carbon Credit Exchange Framework for the
state of Idaho. The exchange has already recog-
nized rangeland, forest land and grassland
acreages in Idaho. Business and Economic Development H 410aa,aaS – Provides for the continued
operation of a dental practice by the personal
representative, executor or surviving spouse or
heir of the a deceased sole proprietor dentist. H 411 – Requires those selling annuities to have
reasonable grounds for believing that the recom-
mended product is suitable for the consumer. H 429 – Requires that certain motor vehicle
liability insurance policies issued in Idaho in-
clude underinsured motorist coverage. H 446aa – Increases to three years the time
within which the personal representative, execu-
tor, or sole surviving heir of a deceased veteri-
narian must sell the veterinary practice. H 451aa – Establishes uniformity of licensing
requirements for collection agencies. H 547 – Maintains consistency between federal
and state law by defining “terrorism” in fire
insurance policies issued in the state of Idaho. Idaho rangeland 2008 Sine Die Report Page 10 H 592 – Establishes the Film and Television
Production Business Rebate Fund to authorize
cash rebates for specific Idaho expenditures on
qualified media production projects. H 652 – Appropriates $3,000,000 to the Special
Olympics World Winter Games Organizing
Committee. S 1311 – Provides that an individual’s employ-
ment security information is exempt from disclo-
sure. S 1344aa – Requires insurance companies to
share coverage information about Medicaid
recipients and enhances the Department of
Health and Welfare's ability to recover funds
that should have been paid by insurance carri-
ers. S 1380aa – Permits consumers to freeze ac-
cess to their credit reports, as a means to help
prevent fraud and identity theft. S 1394 – Raises the age that dependent chil-
dren can remain on their parents' health insur-
ance policy to 21, if the dependent is not a full-
time student, or to age 25, if the dependent is a
full-time student. S 1395 – Allows an individual who would other-
wise qualify for the Individual High Risk Reinsur-
ance Pool to apply for coverage if there is
reasonable probability that, within 90 days, they
will exceed their lifetime maximum coverage of
an existing insurance policy. S 1397aa – Licenses public adjusters in Idaho
who work for an insured (rather than an insur-
ance company) to help evaluate and document
losses to support an insurance claim. S 1431aa – Provides that all contracts entered
into while a residential home is in the foreclo-
sure process must be in writing and that con-
sumers have a five-day right of rescission. Also
requires a warning for consumers about foreclo-
sure rescue scams. Criminal Justice H 381 – Provides for the electronic monitoring of
violent sexual predators who are placed on probation
or parole. H 417aa – Establishes a limit of two registered
adult sex offenders in a residential dwelling unit,
provides for a judicial bypass in certain circum-
stances to exceed that limit, and gives cities and
counties authority to exceed the limit by ordi-
nance to allow and regulate group residence
homes for sex offenders. H 456 – Eliminates discrepancies between
Idaho's extradition procedures and those of
certain other states. H 473 – Increases fines and creates graduated
penalties for unlicensed persons acting as
outfitters or guides and makes it a crime to
knowingly hire unlicensed persons for services
that require an outfitter or guide license. H 496aa – Permits payment for overtime work
for employees engaged in law enforcement,
correctional and fire protection activities in
certain situations. H 501 – Provides for address confidentiality for
victims of violence. H 541aa – Creates an enhanced penalty for
repeated violations of a valid order of no contact
issued by a court. 654aa – Provides that it is a criminal act to
coerce or attempt to coerce a woman to obtain
an abortion. S 1260 – Changes the penalty for dogfighting from a misdemeanor to a felony. S 1317 – Allows the Commission of Pardons
and Parole to release offenders onto parole on
the last business day prior to their parole eligibil-
ity date, when that date falls on a Saturday,
Sunday or legal holiday. 2008 Sine Die Report Page 11 S 1319 – Clarifies that sexual contact between
any person, including juveniles, in the custody
of a correctional facility, including juvenile
facilities and any employee of a governmental
or private agency having such custody is a
felony. S 1320 – Clarifies that the Idaho Department of Correction's financial responsibility for prisoner
health care extends only to prisoners committed
to the Department's custody. S 1356aa H – Provides for certain training follow- ing election to the office of sheriff for the first
time. S 1362 – Provides punishments for assault
or battery against off-
duty or retired judges,
jailers, or correctional
staff when the attack is
made as revenge be-
cause of the victim's
official or former official
status. S 1370aaH – Prohibits adults from exposing
children to sexual con-
duct with the intent or effect of desensitizing or
grooming children for sexually exploitive activity. S 1438aa – Prohibits certain persons from possessing energy conducting weapons, often
called tasers or stun guns. SCR 124 – Authorizes the state’s lease-
purchase of the Correctional Alternative
Placement Program (CAPP) facility. Education:
Colleges and Universities H 385aa – Extends to nonresident members and
officers of the Idaho National Guard the opportu-
nity to attend the state’s universities and col-
leges at resident student rates. H 399 – Increases the maximum tuition or com-
munity college tuition cap for full-time students to
$2,500 per year. H 400 – Increases annual distribution from liquor
revenues to community colleges from $300,000
to $600,000. H 401 – Clarifies and strengthens requirements
for obtaining residency in Idaho for the purpose
of qualifying for resident fees at the state’s postsecondary institu-
tions. S 1259 – Changes the
name "Albertson Col-
lege of Idaho" in the
Idaho Code to "The
College of Idaho." S 1407 – Provides
scholarships for de-
pendents of Idaho citi-
zens or military service
members deployed
from Idaho who are totally and permanently disabled from any em-
ployment as a result of injuries incurred while
engaged in an armed conflict in which the United
States is a party. S 1429 – Repeals a section of the Higher Edu-
cation Bond Act that required legislative ap-
proval as a prerequisite to the acquisition or
construction of a higher education facility that
would require General Funds for maintenance
and operations. S 1476 – Provides $10 million for Opportunity
Scholarship endowment fund. The College of Idaho 2008 Sine Die Report Page 12 SCR 135 – Establishes an interim committee on
medical education needs. SCR 136 – Facilitates the agreed transfer of
part of the Boise State University West Campus
in Nampa to the College of Western Idaho, and
approves the continued bond payments by the
Idaho State Building Authority. Education: Public Schools H 382aa, aaS – Clarifies where and when a
registered adult criminal sex offender may enter
upon properties used by a school. H 397aaS – Specifies failure to demonstrate
fiscal soundness as a ground for revoking the
charter of a public charter school. H 423 – Defines the term “virtual school” and
requires that a petition to create such a public
school include specific information. H 457 – Clarifies that the bond levy equalization
support program applies to previously eligible
projects as well as new projects. H 502 – Provides for relocation of public charter
school facilities to another school district if the
approved primary attendance area of the public
charter school is located within more than one
school district. H 543aa – Establishes the Idaho Education
Network, a coordinated, statewide telecommu-
nications distribution system to facilitate dis-
tance learning. H 552 – Provides that the Idaho Digital Learning
Academy will operate as a governmental entity,
with creation authorized by the state. H 554 – Requires that a complete and cata-
loged library of all curricular materials, including
electronic materials, adopted and used in Idaho
public schools be maintained and open to the
public for three years. H 566aaS – Expands criminal background
checks in public schools to cover anyone with unsupervised contact with students and requires
that background checks for new employees be
performed within five days of employment. H 567 – Includes the Idaho Digital Learning
Academy within the definition of “educational
institution” for sales and use tax purposes. H 669 – Provides base salary and minimum
salary increases for teachers and an increase in
moneys for classroom supplies. H 670 – Increases public school classified
employee base salaries, provides continued
funding for classroom technology, textbook and
software funding, and continues funding for the
Rural Schools Task Force. H 672 – Continues funding for ISAT [Idaho
Standards Achievement Test] remediation and
provides new funding for a statewide math
initiative and a task force to develop a plan for
concurrent secondary/postsecondary courses for
qualifying high school juniors and seniors. HCR 48 – Encourages discussions regarding the
challenges facing efforts to increase concurrent
enrollment and proposes solutions that can
become the foundation for policy discussions
during the next legislative session. S 1403aa – Requires that the referral of a peti-
tion to establish a new public charter school to
the public charter school commission shall not
be made until the local board of trustees has
documented its due diligence in considering the
petition and requires attendance at a petition
workshop. S 1405 – Adds public charter schools to the list
of entities to which school districts may transfer
or convey surplus property. S 1428 – Permits the State Department of
Education to withhold all or a portion of a school
district's November 15 th distribution from the public school income fund for failure to timely
provide the department with a copy of the audit
of the district’s financial statements. 2008 Sine Die Report Page 13 S 1443 – Allows students to carry and self-
administer their prescription medications to treat
anaphylactic allergic reactions. SCR 129 – Requests the Professional Stan-
dards Commission of the State Department of
Education to study and issue a report concern-
ing the training of school administrators in
teacher supervision and evaluation. Energy H 422aaS – Provides en-
ergy efficiency requirements
for new state buildings be-
ginning in 2009. H 432 – Revises the distri-
bution of royalties and
leases paid to the federal
government by developers
of renewable energy re-
sources from the public
schools income fund to a
new Renewable Energy Re-
sources Fund, for use by the
Office of Energy Resources
in the Governor's Office. H 500 – Establishes new
commercial purpose uses
on school endowment lands and expands the
identified renewable resources allowed to in-
clude fuel cells, low-impact hydro, sun or landfill
gas, as well as wind and geothermal resources. S 1480 – Moves funding from the Department of
Water Resources to the Office of Energy Re-
sources in the Governor's Office. Government H 341 – Requires the State Tax Commission to
review taxing district boundaries for compliance
with provisions of Idaho law relating to bound-
aries, and authorizes the State Tax Commission
to direct that noncompliant boundaries not be
recognized. H 351 – Provides for annual distribution of funds
from the election campaign fund to qualifying
political parties instead of biennial distribution. H 420 – Provides that counties may allow for
payment of property taxes by use of debit cards,
credit cards and electronic funds transfers. H 545 – Revises annexation categories for
cities, the evidence of consent to annexation and
procedures for evidence of consent for category
C annexations. H 552 – Provides that the
Idaho Digital Learning Acad-
emy shall be a governmental
entity. H 556 – Clarifies that energy
savings performance contract-
ing is applicable only to exist-
ing facilities and that
performance contracting meth-
odology is not applicable to
new facilities to be constructed. S 1321aa – Establishes a digi-
tal repository for state publica-
tions within the Idaho Commis-
sion for Libraries. S 1337 – Provides for the publ- ication of balance sheets and summaries of
statements of revenues and expenditures by
boards of county commissioners. S 1349 – Revises provisions applicable to the
misuse of public moneys by public officers and
public employees and provides grading and
punishment for misuse of funds. S 1434 – Allows the Office of the Administrative
Rules Coordinator to make clerical revisions and
to correct typographical or grammatical errors in
proposed rules prior to sending copies to the
Legislative Services Office for analysis. S 1435aa –Transfers the responsibility for the
integrated property records system to the De-
partment of Administration, provides duties and
powers of the director regarding the integrated Energy-efficient building 2008 Sine Die Report Page 14 property records system and provides duties of
state agencies for submitting information and
specifies the date for such information to be
submitted. S 1446 – Clarifies Idaho’s Sunshine Laws -
concerning lobbyist reporting; expands the
definition of "executive official" to include those
with major policymaking roles within the consti-
tutional offices; defines "lobbying" to include
building relationships and promoting goodwill
with legislators and executive officials; clarifies
what is to be reported by lobbyists, including
expenditures for members of the household of
a legislator or executive official if the expendi-
ture exceeds the itemization threshold. Health and Human Services H 349 – Creates the Veterans Support Fund to
be used exclusively for programs supporting
veterans. H 353 – Recognizes that nonprofit organizations
may be created in the form of a charitable trust
and provides civil liability immunity for trustees
of the charitable trust who serve without com-
pensation. H 388 – Clarifies disciplinary grounds for misuse
of alcohol and drugs by nurses and provides
that the failure of a nurse to comply with a
Board of Nursing order, negotiated settlement or
probationary agreement or to pay fines or costs
assessed in a prior disciplinary proceeding is
independent grounds for additional disciplinary
action. H 389aa – Provides criminal sanctions for
persons who improperly receive information
from the controlled substances database or
knowingly disclose such information which
identifies an individual patient and permits
access to the database by prosecuting attor-
neys engaged in enforcing laws regulating
controlled substances. H 398 – Allows the Board for Professional-
Technical Education to assist persons suffering
from chronic renal disease by paying medical insurance premiums and patient travel expenses
that are not covered by Medicare. H 410aa,aaS – Allows the continued operation
of a deceased dentist’s dental practice for a
limited time where a good faith effort is being
made to sell the dental practice and where all
the decisions pertaining to the diagnosis, care
and treatment of the patients are made by a
licensed dentist licensed. H 412 – Provides the director of the Department
of Insurance with the authority to set the amount
of deposit required to obtain a certificate of
authority to operate a managed care plan of not
less than $25,000. H 417aa – Provides that an adult registered sex
offender may not reside in any residential
dwelling unit with more than one other adult
registered sex offender but permits cities and
counties to establish standards for the establish-
ment and operation of residences that house
more than one registered sex offender. H 442 – Provides that the exploitation of a
vulnerable adult includes the unjust or improper
use of the vulnerable adult's financial power of
attorney. H 465 – Provides that a group residence in
which eight or fewer unrelated mentally, or
sixteen physically, handicapped or elderly per-
sons reside who are supervised in connection
with their handicap or age related infirmity is a
“single family dwelling” under zoning law, with
exceptions. H 508 – Provides for intensive outpatient treat-
ment and recovery support services as part of a
comprehensive treatment program for drug and
alcohol abusers. H 522 – Prohibits the assignment of a health
insurance contract unless disclosed to and
agreed to by a health care practitioner or facility. H 695 – Provides $15 million to the Department
of Health and Welfare for substance abuse
treatment and prevention. 2008 Sine Die Report Page 15 HCR 58 – Provides approval for the Board of
Correction to enter into agreements with the
Idaho State Building Authority to finance and
develop a secure mental health treatment
facility. S 1324aa – Allows real property held as com-
munity property with the right of survivorship to
pass to the surviving spouse without a probate
or summary administration. S 1326 – Incorporates existing methods pro-
vided in the Idaho Code for the transfer and
temporary recognition of guardianships or
conservatorships for developmentally disabled
people. S 1333 – Adopts methods for signing and nota-
rizing a will when a
signer is either illiter-
ate or physically un-
able to sign. S 1334 – Provides
that if a trustee has
the power to sell real
property, then the
prohibition against
the suspension of
power of alienation
does not apply, and
clarifies that the pro-
hibition does not ap-
ply to charities or
charitable purposes. S 1340 – Provides the Department of Health
and Welfare authority to recover payments
made under any public assistance contract or
provider agreement and to impose other
sanctions when program violations occur and
requires that documentation that supports a
provider payment claim be retained not less
than five years. S 1341 – Establishes a fraud control program in
the Department of Health and Welfare. S 1342 – Permits the solemnization of marriage
by a current tribal judge of an Idaho Indian tribe or other tribal official approved by an official act
of an Idaho Indian tribe. S 1384 – Clarifies that a public health district is
not a subdivision of the state, but is an inde-
pendent body that is not authorized to levy taxes
or obligate the state concerning such financing. S 1398aa – Prohibits the sale of cigarettes
unless they meet reduced fire propensity stand-
ards and have been so marked. S 1420aa – Provides civil immunity to any per-
son who reasonably renders emergency care
using a defibrillator, without remuneration or
expectation of remuneration, at the scene of an
accident or emergency to a victim of the acci-
dent or emergency. S 1 4 2 6 a a H –
Amends and repeals
existing law relating
to the hospitalization
of the mentally ill;
makes adjustments
to the involuntary
commitment pro-
cess; and provides
for consideration of
reasonable alterna-
tives to commitment,
observation, care
and outpatient treat-
ment. S 1444aa – Pro- vides disability benefits to volunteer emergency
responders. Natural Resources H 406aa – Increases the lease term for residen-
tial cottage sites on state endowment lands from
ten to 35 years. H 428 – Authorizes a statewide comprehensive
aquifer planning and management effort to be
conducted over a 10-year period of time, with
funding for technical studies, facilitation services,
hydrologic monitoring, measurement and com-
prehensive plan development. Lake Pend Oreille 2008 Sine Die Report Page 16 H 515 – Authorizes state outdoor sport shooting
ranges, establishes a uniform noise standard for
the ranges, precludes public and private
nuisance actions for noise against ranges, and
requires new uses within one mile of an existing
shooting range to provide for noise abatement. H 557 – Authorizes the Department of
Environmental Quality to administer the open
burning of crop residue, requires approval of
DEQ prior to a burn and prohibits DEQ from
authorizing a burn in the event ambient air quality
levels exceed specified standards. H 586 – Authorizes the Department of
Environmental Quality to establish a vehicle
inspection and maintenance program to regulate
and ensure control of the air pollutants and
emissions from registered motor vehicles in air-
sheds that are approaching nonattainment of
specified air quality standards; and exempts
specified vehicles. H 604 – Prohibits local governments from
establishing or enforcing noise standards for
outdoor sport shooting ranges which are more
restrictive than standards established by the
state and prohibits local governments from
making designated actions by a range a violation
of local zoning ordinances. H 619 – Authorizes the diversion of minimal
amounts of water from natural watercourses for
forest practices and forest dust abatement with or
without a water right. H 643 – Creates the Invasive Species Act of
2008 to prevent the introduction of invasive
species and to address threats caused by
invasive species infestations. H 644 – Appropriates $20 million for the first six
years of a statewide comprehensive aquifer
management effort. HJM 8 – Supports a study of additional water
storage projects in the state of Idaho and
encourages the Bureau of Reclamation, the
United States Army Corps of Engineers, the
Governor of the state of Idaho, the Idaho Water
Resource Board, the Idaho Department of Water Resources, and other federal, state and local
agencies to cooperate with the residents of the
state of Idaho in initiating and completing the
study of additional water storage projects. S 1348 – Provides that, under certain conditions,
water rights relating to mining, mineral processing
or milling shall not be lost or forfeited for nonuse. S 1352 – Reduces the filing fees associated with
filing notice of claims in a water rights
adjudication and provides that the filing fee for
power generation projects shall be $3.50 per
kilowatt of capacity or $ 250,000, whichever is
less. S 1354 – Authorizes the director of the Depart-
ment of Water Resources to petition the district
court to commence water rights adjudications
through initiation of proceedings for the Coeur
d’Alene-Spokane, Palouse and Clark Fork-Pend
Oreille river basins, provided that each petition in-
cludes a request for the deferral of the adjudica-
tion of domestic and stock water rights and a
request that a commencement order be issued
only if the court determines it is possible to defer
the adjudication of domestic and stock water
rights within the terms of the McCarran
amendment. S 1373 – Includes grizzly bears that are not listed
under the Endangered Species Act in the Depart-
ment of Fish and Game’s depredation program
and provides that damage from such grizzly
bears be covered in the same manner as damage
by black bears. S 1374aaH – Authorizes the disposal of wolves
without a permit by livestock or domestic animal
owners, their employees, agents and animal
damage control personnel, in the event the
wolves are molesting or attacking livestock or
domestic animals. S 1418 – Removes the Kootenai River Basin from
the Northern Idaho water rights adjudication; and
clarifies that the Clark Fork-Pend Oreille river
basins do not include Basin 98. 2008 Sine Die Report Page 17 1449aa – Increases civil penalties for naviga-
tional encroachment violations that cause harm
to water quality, fisheries or other public trust
values. S 1511 – Appropriates
$10 million to the
Water Resource Board
to address water
issues in the Magic
Valley by facilitating
the purchase of a large
private fish hatchery
near Twin Falls, and
appropriates $1.4
million to fund a
feasibility study to raise
Minidoka Dam by four
to five feet and
$400,000 to study
replacement of Teton
Dam in Eastern Idaho. Taxation H 344 – Simplifies the year-end income tax with-
holding reports that employers must now file with
the State Tax Commission by combining two
filings into a single return. H 349 – Provides a charitable check-off box on
the State Income Tax form for donations to the
Idaho Division of Veterans Services to support
programs for Idaho veterans. H 357 – Updates the exemption in the Sales Tax
Act for medical prescriptions, clarifying that the
exemption applies to prescriptions from physician
assistants and that dental fillings are also ex-
empted. H 359 – Increases the fuel tax for aviation gaso-
line and jet fuel by 1.5 cents per gallon. H 360 – Defines a "retailer engaged in business
in this state" as any retailer with substantial
nexus in this state. H 387 – Clarifies that property of a religious
limited liability company or a fraternal, benevo- lent, or charitable limited liability company is
exempt from taxation. H 469 – Provides that, under certain circum-
stances, the sales and use tax does not apply to charges for per-
sonal property taxes
added to the rent for
leases of tangible
personal property. H 470aaS – Re-
vises the Local Eco-
nomic Development
Act to exempt reve-
nue from any spe-
cial levy or bond
issue from distribu-
tion to an urban re-
newal district, allow-
ing funds levied for special purposes to be expended for the purpose
specified on the levy ballot. H 529aa – Includes producers of geothermal energy under the identical tax provisions of Idaho
Code as producers of wind energy. H 530 – Establishes how income is to be
determined, relating to circuit breaker property tax
relief, for certain married individuals living apart. H 550 – Grants boards of county commissioners
the authority to offer property tax exemptions for
a maximum of five years to a taxpayer who
spends a minimum of $3 million for new manufac-
turing facilities in rural areas as defined by the
U.S. Department of Agriculture. H 562 – Provides that the net taxable value of all
property of a taxpayer in excess of $400 million
located within a single county shall be exempt
from property taxation and special assessments,
but only if the property is a new capital investment
of at least one billion dollars made during a
specified time and reflects the acquisition, con-
struction or improvement of real or personal
property related to new plant or building facilities. H 564 – Provides that a part-year resident is
entitled to a credit against state income taxes for Minidoka Dam 2008 Sine Die Report Page 18 income taxes paid to another state for income
earned while the taxpayer is residing in this state. H 569 – Allows a taxpayer to make a donation to
the Special Olympics Idaho Fund when filing the
taxpayer's Idaho tax return. H 588 – Increases the grocery tax credit
incrementally, starting with an increase to $50
for the poorest Idahoans, $30 for all other
Idahoans, and an additional $20 for seniors for
tax year 2008. The credit continues to increase
by $10 per year until reaching $100. H 599aa, aaS, aaS – Removes the personal
property tax on business equipment from most
Idaho businesses, by exempting up to $100,000
in value from the tax; however, the exemptions
shall take effect only if and when General Fund
revenues exceed the prior year’s revenues by
five percent. Transportation H 355 – Removes the sunset date on special
Idaho state Capitol Commission license plates
to allow for continued purchase and renewal of
the plates to support the Capitol restoration pro- ject. H 359 – Raises the tax on aviation gasoline
from 5.5 cents to 7 cents per gallon and jet fuel
from 4.5 cents to 6 cents per gallon to generate
additional funding for support of community
airports. H 366 – Prohibits the issuance of a driver's
license, instruction permit, privilege or right to
drive to persons who are not lawfully present in
the United States and provides that expiration
dates on licenses and permits for those persons
who are not citizens but are lawfully present
shall expire on the same day as the end of
lawful stay in the United States. H 440aaS – Requires truck campers to be titled
after January 1, 2009, but allows for optional
titling of truck campers acquired before January
1, 2009. H 463 – Establishes the Natural Resources and
Mining Education special motor vehicle license
plate program. H 586 – Authorizes the Department of Environ-
mental Quality to establish a vehicle emission
testing and maintenance program to control air
pollution emissions from vehicles in airsheds
that are approaching nonattainment with appli-
cable air quality standards and rules. H 657 – Approves the bonding authority for the
issuance of GARVEE bonds for highway trans-
portation projects and provides a list of projects
that may be financed with bond proceeds. HCR 50aa – Requests the Joint Legislative
Oversight Committee to direct the Office of
Performance Evaluations to commission an
independent evaluation of the Idaho Transporta-
tion Department. S 1359 – Establishes the Idaho Rangeland
special motor vehicle license plate program to
help support the work of the Idaho Rangeland
Resource Commission. S 1389 – Requires intrastate motor carriers
transporting wet concrete to undergo safety ins-
pections and compliance reviews. S 1440 – Establishes the Idaho 2009 Special
Olympics World Winter Games special motor
vehicle license plate program to help support the
2009 Special Olympics World Winter Games. SCR 125 – Ratifies the motor fuel tax agree-
ments entered into between the Governor on
behalf of the state and the Coeur d'Alene,
Kootenai, Nez Perce and Shoshone-Bannock
Tribes, with the effect that the tribes will not
collect the state’s motor fuel tax but will impose
a tribal fuel tax at the same rate and distribute a
portion of their fuel tax revenues to local high-
way jurisdictions. 2008 Sine Die Report Page 19 Authorized Interim Committees HCR 45 – Authorizes a committee to study property tax revenues and expenditures . SCR 135 – Authorizes a committee to study medical education needs in Idaho. Two-year interim committees authorized during the 2007 legislative session to study natural
resources and energy, environment and technology will continue. Vetoed Legislation H 553 – To provide two alternate days in substitution for two state holidays, applicable to
employees of the Department of Education only. H 664aa – To repeal Section 63-3029G of Idaho Code that grants a 5 percent tax credit for
research activities. S 1385 – Regarding disposal of property acquired by a tax deed. Line Item Vetoes H 608 – Appropriating funds to the Office of Drug Policy. H 636 – Appropriating funds to the Legislative Services Office for computer upgrades. S 1458 – Appropriating additional funds to the Office of Drug Policy. Veto overridden by the Senate;
no override vote in the House. 2008 Sine Die Report Page 20 Budget Highlights Fiscal Year 2008 The General Fund revenue forecast for FY 2008 released with the Governor's executive budget
showed a modest increase of $6.9 million or two-tenths of one percent over the forecast published
in August 2007. The total revenue expected to be collected increased to $2,912.2 million from
$2,905.3 million, for a 3.5% growth over FY 2007 collections. The Division of Financial Manage-
ment included a change of methodology in revenue projecting by identifying an ongoing and
one-time component of the revenue to account for economic ebbs and flows. This was significant
because for the first time the Economic Outlook and Revenue Assessment Committee and the Joint
Finance-Appropriations Committee (JFAC) were asked to accept a delineation of revenue that had
not occurred in previous years and would have a major impact on budgeting. The new revenue estimate showed that ongoing revenue would increase at 8.7% and one-time
revenue would be 53.4% less than FY 2007, for a net impact of 3.5%. Under this scenario, the
Legislature was assured it could expand ongoing spending even at a time of modest overall growth.
By the end of January it became evident that rapid changes in the national economic outlook were
impacting state revenues and, in an unprecedented move, the executive forecast was revised
downward by $50.2 million to 1.8% for FY 2008. The new revenue projection for FY 2008 is $2,862
million. Ongoing revenue growth was reduced to 8% compared to the original forecast of 8.7%, and
one-time growth was reduced further to a negative 68.1% to reach a combined rate of 1.8%. The
state carried over $269 million in general funds from FY 2007, allowing the expected revenue short-
fall to be absorbed without adjustments to agency budgets. Deficiency warrants totaled $21.8 million, of which $21.5 million was a record for fire suppression.
The balance was $255,000 for pest management and $69,300 for hazardous materials. For a
second year in a row the Legislature approved returning more general funds to the state treasury
in rescissions than were expended in supplemental appropriations. In total, state agencies received
$14.3 million in supplemental appropriations, returned $22.4 million in rescissions, and planned to
revert $6.1 million to the General Fund. The Department of Health and Welfare reported that
caseloads in Medicaid were not growing as expected, which resulted in a $17.4 million rescission;
and the Department of Correction returned $3.9 million due to the continued delay in the opening
of the Correctional Alternative Placement Program (CAPP) and less than expected inmate growth. Through a combination of supplemental appropriations and transfers of existing resources, the
Department of Health and Welfare received moneys to complete the expansion of State Hospital
North and reimburse the federal government for Medicare overpayments to State Hospital South.
The department also received funding for Community Hospitalization and the Idaho Health Data
Exchange. The longtime effort to offer community-based substance abuse treatment to deter incarceration
remained in the forefront of legislative concerns this session, and agencies were provided with
additional funds for treatment that were not included in the Governor's recommendation. The Gov-
ernor line-item vetoed $2.4 from the General Fund in S 1458 for community-based substance abuse 2008 Sine Die Report Page 21 treatment in the budget of the Office of Drug Policy on the grounds that it was excessive and that
the programs had not provided evidence of success. Subsequently, a compromise was reached
by the Legislature and the Governor to provide 90% or $2,145,400 of the amount vetoed in S 1458. Also in supplemental appropriations, the Department of Correction received $4.7 million to convert
a warehouse at the Idaho Correctional Center into inmate housing and $1 million to add
segregation beds at the Maximum Security Institution and the South Idaho Correctional Institution.
Late in the session the Legislature received a request and appropriated $3 million for the upcoming
Special Olympics World Winter Games within the Department of Commerce's budget. Of the total,
$1.5 million was appropriated in FY 2008 with the balance of $1.5 million in FY 2009. A year-end
balance of $176.9 million is projected to carryover into FY 2009. Fiscal Year 2009 The original revenue estimate for FY 2009 from the Division of Financial Management was also
revised downward in February. Originally the annual growth was expected at 3.4%, to generate
an additional $99.7 million in new revenue. The forecast was then revised downward to 2.8% with
an expected increase of $79.8 million of new dollars. Even with changing conditions most of the
reductions were made in one-time revenues rather than ongoing and resulted in an estimate of
$2,941.8 million for FY 2009. In response to the revised revenue projection, JFAC chose a spending target that was $39.1 million
less than the revenue projection implied would be available. This spending level represented a
3.7% budget growth over ongoing appropriations set in FY 2008. After including all of the trailer
appropriation bills, the Legislature set an ongoing spending plan that is 3.8% higher than FY 2008,
and a combined ongoing and one-time appropriation level that is higher by 4.9%. State agencies received increases for contract and medical inflation, essentially full funding for
replacement items, funding for a 3% change in employee compensation, statutory increases for
Medicaid, and higher education workload adjustments. Approximately $34 million of one-time funds
were used to pay for caseload increases in Medicaid, the restoration of stream flow protection
efforts in the Department of Water Resources, personnel costs for higher education to support the
Center for Advanced Energy Studies, and community-based substance abuse treatment passed
through the Office of Drug Policy in the Governor's Office. The Governor vetoed line items funding
community-based substance abuse treatment in the Office of Drug Policy and funding for the
Legislative Technology Program in the Legislative Services Office. An agreement was reached with
the Governor to provide to the Department of Health and Welfare 90% of the amount originally
appropriated for substance abuse funding to the Office of Drug Policy. However, funding was not
restored for the Legislative Technology Program. Public schools received statutory increases for 170 new support units, a 2% salary increase for
administrators, a 2.4% increase for teachers including an increase in both the base and minimum
pay, and a 3% pay increase for classified staff. Public schools also receive a 1% increase in
discretionary spending and funding for a new math initiative. Current estimates leave a balance of $13.7 million as an ending General Fund balance for FY
2009. STATE OF IDAHO - 2008 LEGISLATIVE SESSION GENERAL FUND BUDGET UPDATE Prepared by Legislative Services Office, Budget & Policy Analysis FISCAL YEAR 2008 Legislative REVENUES Action Beginning Cash Balance 254,684,200 $ Health and Welfare Reappropriation from FY 2007 14,102,000 Adjusted Beginning Balance 268,786,200 $ FY 2008 Revised Estimate 1.76%--------------$ 2,862,030,000 Ongoing Component of FY 2008 Revised Estimate 2,788,400,000 One-time Component of FY 2008 Revised Estimate 73,630,000 H557 Crop Residue Burning 209,000 TOTAL REVENUES & BEGINNING BALANCES 3,131,025,200 TRANSFERS OUT H 316 Transfer to Biofuel Matching Grant Fund (H 150) (690,000) H320 Transfer to Water Management Fund (HCR 28) (638,000) H 329 To Opportunity Scholarship Program Fund (H 217aa) (10,000,000) H 330 Transfer to Economic Recovery Reserve Fund (60,000,000) S 1206 Transfer to DEQ - Community Reinvestment Initiative (1,500,000) S 1227 To Public School Permanent Endowment Fund (S 1098) (351,500) Transfer to Budget Stabilization Fund §57-814 (19,059,100) Transfer to Disaster Emergency Fund (E.O. 2007-15) (2,000,000) S 1346 Transfer to Def. Warrants (Military Division, Haz. Mat.) (69,300) S 1346 Transfer to Def. Warrants (Dept. of Agriculture, Pests) (255,000) S 1346 Transfer to Def. Warrants (Dept. of Lands, Fire Suppression) (21,500,000) S 1511 Transfer to Revolving Development for Water Project (10,000,000) TOTAL TRANSFERS OUT (126,062,900) APPROPRIATIONS Original Appropriations----------------------------$ 2,820,674,400 Ongoing Component of FY 2008 Original Appropriations 2,764,587,800 One-time Component of FY 2008 Original Appropriations 56,086,600 Reappropriations - Health and Welfare 14,102,000 Reappropriations - All other state agencies 7,409,900 Ongoing Supplementals & Rescissions (10,463,800) One-time Supplementals & Rescissions 2,397,400 Budgeted Reversions (6,123,000) TOTAL APPROPRIATIONS 2,827,996,900 ESTIMATED ENDING BALANCE Estimated Ending Balance from Ongoing Revenues 34,276,000 $ Estimated Ending Balance from One-Time Revenues 142,689,400 $ TOTAL ESTIMATED ENDING BALANCE 176,965,400 $ 2008 Sine Die Report Page 22 STATE OF IDAHO - 2008 LEGISLATIVE SESSION GENERAL FUND BUDGET UPDATE Prepared by Legislative Services Office, Budget & Policy Analysis FISCAL YEAR 2009 Legislative REVENUES Action Beginning Balance 176,965,400 $ FY 2009 Revised Estimate 2.79% ---------- $ 2,941,810,000 Ongoing Component of FY 2009 Revised Estimate 2,930,000,000 One-time Component of FY 2009 Revised Estimate 11,810,000 H 342 Conform to Internal Revenue Service Code Changes (200,000) H 357 Exempt Prescriptions from Sales Tax (150,000) H 358 Tax Tobacco Products from Unlicensed Dealers 250,000 H 360 Nexus Retailers Collect Sales Tax 500,000 H 400 Increase Liquor Distribution to Community Colleges (300,000) H 431 Revise Qualifications for Small Employer Tax Incentive (100,000) H 469 Remove Sales Tax on Certain Taxed Leases (400,000) H 530 Change Married Living Apart Calc for Circuit Breaker (20,000) H 563 Conform to IRS Capital Gains Tax (1,000,000) H 564 Allow Credit for Income Tax Paid to Other States (300,000) H 588 Increase Grocery Tax Credit (22,300,000) H 615 Conform to IRS Treatment of Economic Stimulus Package (38,000,000) H 673 Bond Levy Equalization - Reduce Cig Tax Dist to Gen. Fund (6,130,000) TOTAL REVENUES & BEGINNING BALANCES 3,050,625,400 TRANSFERS OUT H 644 Transfer to Water Board for Aquifer Management Studies (20,000,000) S 1476 Transfer to Opportunity Scholarship Fund (10,000,000) S 1498 Transfer to Permanent Building Fund (5,645,200) S 1511 Transfer for Water Storage Studies (HJM8) (1,800,000) S 1519 Transfer to Community Health Center Grant Fund (1,000,000) TOTAL TRANSFERS OUT (38,445,200) APPROPRIATIONS Ongoing Appropriations 2,869,432,600 One-Time Appropriations 89,850,800 APPROPRIATIONS 2,959,283,400 39,149,100 ESTIMATED ENDING BALANCE Estimated Ending Balance from Ongoing Revenues (1,601,700) $ Estimated Ending Balance from One-Time Revenues 15,349,400 $ TOTAL ESTIMATED ENDING BALANCE 13,747,700 $ JFAC TARGETED SPENDING REDUCTION 2008 Sine Die Report Page 23 General Fund Comparison JFAC Action to Previous Year's Budget FY 2008 FY 2009 Change from FY 2008 FY 2009 Department/Agency OG Approp. OG Approp. FY 2008 Appropriation* JFAC Action* Education Public School Support 1,366,763,800 1,418,292,700 3.8% 1,367,363,800 1,418,542,700 3.7% Ag Research Extension Service 27,165,700 28,249,200 4.0% 27,665,700 28,249,200 2.1% College and Universities 259,296,600 276,181,100 6.5% 264,227,700 285,151,500 7.9% Community College Support 23,450,000 29,560,000 26.1% 23,587,700 29,666,400 25.8% School for the Deaf and Blind 7,983,300 8,396,400 5.2% 8,105,300 8,503,700 4.9% State Board of Education 9,953,700 5,127,000 (48.5%) 10,820,700 5,127,000 (52.6%) Health Education Programs 9,154,800 9,459,900 3.3% 9,180,700 9,459,900 3.0% Historical Society 2,618,800 2,768,200 5.7% 2,972,200 3,347,200 12.6% State Commission for Libraries 2,779,800 3,919,500 41.0% 2,879,800 4,269,300 48.2% Professional Technical Education 50,835,400 53,852,200 5.9% 51,595,000 54,899,400 6.4% Public Broadcasting System 1,742,400 1,833,700 5.2% 3,279,900 3,530,300 7.6% Special Programs 12,035,200 10,273,700 (14.6%) 12,095,800 12,222,600 1.0% Superintendent of Public Instruction 5,621,500 4,712,200 (16.2%) 5,621,500 7,309,100 30.0% Vocational Rehabilitation 8,246,800 8,495,100 3.0% 8,353,000 8,520,900 2.0% Health & Human Services Medically Indigent Health Care 20,768,400 20,767,700 (0.0%) 20,768,400 20,767,700 (0.0%) Dept. of Health & Welfare 159,225,600 165,609,100 4.0% 168,458,400 184,785,100 9.7% Medical Assistance Services 375,770,900 378,397,600 0.7% 376,384,400 402,492,800 6.9% Independent Living Council, State 123,100 129,100 4.9% 123,100 129,100 4.9% Public Health Districts 10,270,900 10,799,300 5.1% 10,270,900 10,799,300 5.1% Law & Public Safety Department of Correction 162,911,400 172,863,200 6.1% 164,793,500 175,915,200 6.7% Judicial Branch 30,028,200 31,691,800 5.5% 30,184,300 31,862,500 5.6% Department of Juvenile Corrections 36,235,800 39,868,400 10.0% 36,384,800 40,029,300 10.0% Police, Idaho State 18,489,900 19,750,300 6.8% 21,853,900 24,529,500 12.2% Natural Resources Dept. of Environmental Quality 17,057,000 18,186,300 6.6% 17,402,600 19,625,000 12.8% Land Board 5,018,400 5,307,200 5.8% 5,634,500 5,590,800 (0.8%) Department of Parks & Recreation 7,483,600 7,858,300 5.0% 17,650,400 16,072,000 (8.9%) Department of Water Resources 14,278,000 13,484,800 (5.6%) 15,124,800 14,587,500 (3.6%) Economic Development Department of Agriculture 12,247,300 12,793,600 4.5% 20,533,300 17,046,500 (17.0%) Department of Commerce 7,524,900 7,655,000 1.7% 7,906,800 9,199,200 16.3% Department of Labor 749,800 774,400 3.3% 753,800 774,400 2.7% Self-Governing Agencies General Boards 115,500 121,200 4.9% 136,100 136,500 0.3% Appellate Public Defender, State 2,084,200 2,168,500 4.0% 2,084,200 2,318,500 11.2% Veterans Services, Division of 1,720,900 1,803,800 4.8% 1,720,900 1,803,800 4.8% General Government Department of Administration 8,925,100 8,117,400 (9.0%) 8,955,100 8,775,500 (2.0%) Attorney General 17,744,900 18,889,100 6.4% 17,877,900 19,215,600 7.5% State Controller 6,683,600 6,853,500 2.5% 7,013,000 7,196,900 2.6% Office of the Governor Commission on Aging 5,335,000 5,478,400 2.7% 5,349,400 5,496,200 2.7% Commission on the Arts 874,100 893,800 2.3% 956,600 951,100 (0.6%) Commission for the Blind 1,498,500 1,554,000 3.7% 1,599,600 1,660,000 3.8% Office of Drug Policy 250,000 500,900 100.4% 250,000 503,900 101.6% Energy Resources, Office of 0 42,500 0 42,500 Division of Financial Management 1,670,700 1,761,000 5.4% 1,710,700 1,841,500 7.6% Executive Office of the Governor 2,084,900 2,186,800 4.9% 2,084,900 2,195,800 5.3% Human Rights Commission 684,600 702,800 2.7% 684,600 702,800 2.7% Military Division 5,854,300 6,121,900 4.6% 13,348,100 6,257,700 (53.1%) Office of Species Conservation 585,300 615,800 5.2% 585,300 615,800 5.2% Women's Commission 30,600 31,300 2.3% 30,600 31,300 2.3% Legislative Transfer (House & Senate) 6,480,000 6,755,000 4.2% 6,480,000 6,755,000 4.2% LSO, Technology, OPE 5,415,400 5,516,800 1.9% 5,692,900 6,101,900 7.2% Lieutenant Governor 154,500 162,600 5.2% 154,500 162,600 5.2% Department of Revenue & Taxation 26,788,900 28,165,900 5.1% 27,818,700 29,011,500 4.3% Secretary of State 2,118,200 2,222,300 4.9% 2,469,200 2,791,600 13.1% State Treasurer 1,657,600 1,710,300 3.2% 1,695,400 1,710,300 0.9% STATEWIDE TOTAL 2,764,587,800 2,869,432,600 3.8% 2,820,674,400 2,959,283,400 4.9% OG = Ongoing *Includes One-time and Ongoing Change from FY 2008 2008 Sine Die Report Page 24 General Fund Comparison JFAC Action to Governor's Recommended Budget FY 2009 Change from FY 2009 Change from FY 2009 Variance from Department/Agency Orig. Gov's Rec. FY 2008 Revised Rec FY 2008 JFAC Action Revised Rec. Education Public School Support 1,439,941,100 5.3% 1,435,385,900 5.0% 1,418,542,700 (16,843,200) Ag Research Extension Service 28,961,600 4.7% 28,961,600 4.7% 28,249,200 (712,400) College and Universities 295,506,300 11.8% 297,306,300 12.5% 285,151,500 (12,154,800) Community College Support 30,350,000 28.7% 30,350,000 28.7% 29,666,400 (683,600) School for the Deaf and Blind 8,696,700 7.3% 8,696,700 7.3% 8,503,700 (193,000) State Board of Education 5,184,100 (52.1%) 5,184,100 (52.1%) 5,127,000 (57,100) Health Education Programs 9,655,700 5.2% 9,655,700 5.2% 9,459,900 (195,800) Historical Society 3,588,300 20.7% 3,588,300 20.7% 3,347,200 (241,100) State Commission for Libraries 3,490,200 21.2% 3,490,200 21.2% 4,269,300 779,100 Professional Technical Education 55,148,600 6.9% 55,148,600 6.9% 54,899,400 (249,200) Public Broadcasting System 3,914,100 19.3% 3,914,100 19.3% 3,530,300 (383,800) Special Programs 60,278,700 398.3% 12,278,700 1.5% 12,222,600 (56,100) Superintendent of Public Instruction 8,389,900 49.2% 8,389,900 49.2% 7,309,100 (1,080,800) Vocational Rehabilitation 8,614,200 3.1% 8,614,200 3.1% 8,520,900 (93,300) Health & Human Services Medically Indigent Health Care 23,548,900 13.4% 23,548,900 13.4% 20,767,700 (2,781,200) Dept. of Health & Welfare 180,357,900 7.1% 180,357,900 7.1% 184,785,100 4,427,200 Medical Assistance Services 404,370,100 7.4% 404,370,100 7.4% 402,492,800 (1,877,300) Independent Living Council, State 133,300 8.3% 133,300 8.3% 129,100 (4,200) Public Health Districts 11,040,500 7.5% 11,040,500 7.5% 10,799,300 (241,200) Law & Public Safety Department of Correction 184,150,800 11.7% 184,150,800 11.7% 175,915,200 (8,235,600) Judicial Branch 33,381,300 10.6% 33,381,300 10.6% 31,862,500 (1,518,800) Department of Juvenile Corrections 40,532,900 11.4% 40,532,900 11.4% 40,029,300 (503,600) Police, Idaho State 34,946,400 59.9% 34,946,400 59.9% 24,529,500 (10,416,900) Natural Resources Dept. of Environmental Quality 19,464,800 11.8% 19,464,800 11.8% 19,625,000 160,200 Land Board 5,821,600 3.3% 5,821,600 3.3% 5,590,800 (230,800) Department of Parks & Recreation 17,250,000 (2.3%) 17,250,000 (2.3%) 16,072,000 (1,178,000) Department of Water Resources 13,972,000 (7.6%) 13,972,000 (7.6%) 14,587,500 615,500 Economic Development Department of Agriculture 22,190,400 8.1% 22,190,400 8.1% 17,046,500 (5,143,900) Department of Commerce 9,583,600 21.2% 11,583,600 46.5% 9,199,200 (2,384,400) Department of Labor 810,800 7.6% 810,800 7.6% 774,400 (36,400) Self-Governing Agencies General Boards 139,300 2.4% 139,300 2.4% 136,500 (2,800) Appellate Public Defender, State 2,629,700 26.2% 2,629,700 26.2% 2,318,500 (311,200) Veterans Services, Division of 1,863,800 8.3% 1,863,800 8.3% 1,803,800 (60,000) General Government Department of Administration 63,543,500 609.6% 63,543,500 609.6% 8,775,500 (54,768,000) Attorney General 20,061,500 12.2% 20,061,500 12.2% 19,215,600 (845,900) State Controller 7,278,800 3.8% 7,278,800 3.8% 7,196,900 (81,900) Office of the Governor Commission on Aging 5,703,300 6.6% 5,703,300 6.6% 5,496,200 (207,100) Commission on the Arts 1,010,000 5.6% 1,010,000 5.6% 951,100 (58,900) Commission for the Blind 1,712,300 7.0% 1,712,300 7.0% 1,660,000 (52,300) Office of Drug Policy 170,900 (31.6%) 282,900 13.2% 503,900 221,000 Energy Resources, Office of 43,600 43,600 42,500 (1,100) Division of Financial Management 1,922,500 12.4% 1,922,500 12.4% 1,841,500 (81,000) Executive Office of the Governor 2,297,100 10.2% 2,297,100 10.2% 2,195,800 (101,300) Human Rights Commission 714,600 4.4% 714,600 4.4% 702,800 (11,800) Military Division 6,704,200 (49.8%) 6,681,000 (49.9%) 6,257,700 (423,300) Office of Species Conservation 628,500 7.4% 628,500 7.4% 615,800 (12,700) Women's Commission 31,700 3.6% 31,700 3.6% 31,300 (400) Legislative Transfer (House & Senate) 6,755,000 4.2% 6,755,000 4.2% 6,755,000 0 LSO, Technology, OPE 6,287,300 10.4% 6,287,300 10.4% 6,101,900 (185,400) Lieutenant Governor 166,200 7.6% 166,200 7.6% 162,600 (3,600) Department of Revenue & Taxation 29,788,100 7.1% 29,788,100 7.1% 29,011,500 (776,600) Secretary of State 2,780,000 12.6% 2,780,000 12.6% 2,791,600 11,600 State Treasurer 1,757,600 3.7% 1,757,600 3.7% 1,710,300 (47,300) STATEWIDE TOTAL 3,127,264,300 10.9% 3,078,597,900 9.1% 2,959,283,400 (119,314,500) 2008 Sine Die Report Page 25 FY 2009 General Fund Revenue & Appropriations "Where the money comes from . . ." Dollars In Millions (Percent of Revenue) "Where the money goes . . ." Dollars In Millions (Percent of Appropriations) Dollars In Millions (Percent of Total) Corporate Income Tax $166.0 All Other Taxes $142.8 Sales Tax $1,222.9 Individual Income Tax $1,342.1 Beginning Balances $177.0 Higher Education, $285.2 Ending Balances, $52.9 Public Schools, $1,418.5 General Government, $102.0 Economic Development, $31.3 Transfers Out, $38.4 Public Safety, $272.3 Natural Resources, $55.9 Health & Human Services, $619.0 Other Education, $175.1 All Education $1,878.8 63.5% General Fund Appropriations, Transfers & Balances = $3,050.6 General Fund Revenue & Balances = $3,050.6 General Fund Revenue = $2,873.7 46.7% 5.8% 42.6% 5.0% General Fund Appropriations = $2,959.3 47.9% 9.6% 5.9% 20.9 9.2% 1.9% 1.1% 3.4% 2008 Sine Die Report Page 26 2008 Sine Die Report Page 27 Education Public Schools The FY 2009 General Fund appropriation for public schools increased 3.7% from $1.37 billion to
$1.42 billion. The total appropriation, including all funds, increased by 2.9%, from $1.65 billion to
$1.70 billion. Base salaries were increased by 2% for administrators, 2.5% for teachers, and 3.0%
for classified staff. In addition, the Legislature increased the minimum teacher salary from $31,000
to $31,750. The Legislature also funded 170 new support units for FY 2009 in order to keep pace
with student enrollment growth as projected by the state Department of Education. Key issues in
the appropriation bills for public schools include: H 668 provides $87,541,800 to the Administrators Division. This is a General Fund increase of
2.8% and a total funds increase of 2.7%. Administrators will receive a 2% base salary increase.
There is no change in federal funds. H 669 provides $817,074,500 to the Teachers Division. This a General Fund increase of 3.4% and
a total funds increase of 3.1%. The base salary for teachers was raised from $24,623 to $25,231,
a 2.5% increase, and the minimum teacher salary was raised from $31,000 to $31,750, a 2.4%
increase. Nearly $5.4 million was appropriated so that each teacher will receive $350 to purchase
school supplies. Additionally, $50,000 was appropriated to form a Teacher Evaluation Task Force
to develop fair and consistent standards for teacher evaluations in Idaho. H 670 provides $584,032,700 to the Operations Division. This is a General Fund increase of 2.7%
and a total funds increase of 2.2%. This appropriation raised the base salary of classified staff from
$19,783 to $20,376, a 3% increase. Pupil transportation shortfalls will be fully funded and there will
be $9.15 million for school technology grants and $9.95 million for the textbooks and software
allowance. There will be continued funding for the Rural School Initiative effort to identify
challenges and solutions for rural schools. Lastly, the discretionary funding provided to school
districts will increase by 1% and will equal $25,696 per support unit. H 672 provides $170,449,400 to the Children's Programs Division. This is a General Fund increase
of 16.2% and a total funds increase of 2.4%. In this appropriation, the Idaho Digital Learning
Academy's funding was increased by 12% up to $3,129,500 and the Idaho Safe and Drug-Free
Schools program was funded at $7,000,000. The large General Fund increase is due primarily to an additional $3.97 million appropriated to
implement a statewide math initiative. Other discretionary funding in this appropriation includes
continued funding for the Idaho Reading Initiative, ISAT remediation, and grant funds for Limited
English Proficient grants. Also included in this bill is $50,000 to study and develop a plan to
implement concurrent secondary/postsecondary courses for qualifying juniors and seniors. H 673 provides $36,850,000 to the Facilities Division. This is a General Fund increase of 47.8%
and a total funds increase of 12.4%. The large increase in general funds is a result of the $16.5 million appropriated for the Bond Levy
Equalization program, which provides subsidies to school districts for the cost of repaying debt on
bonds passed by their patrons. This year's approved funding is a $5.3 million or 47% increase 2008 Sine Die Report Page 28