Prudence still the best approach
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January 20, 2014 |
By Idaho Senator Shawn Keough
As the Vice Chairman of the Senate Finance
Committee, I have been faced with many tough
decisions over the last few years.
Idaho continues to manage our budget in a
fiscally responsible manner. Because of this, we
are often criticized by groups who want more
money spent on programs that they deem
important.
When the economy stumbled several years ago,
Legislators made a conscious decision to reduce
the size of government rather than raise taxes
on its citizens—that was contrary to the
approach that many other states took. I
supported those efforts. One need only look to
the city of Detroit or the state of California,
to see how negatively economies can be affected
when elected leaders refuse to make difficult
decisions.
In fact, according to the National Association
of State Budget Officers, 29 states increased
their overall net take from taxes and fees last
year. Here in Idaho, we were actually able to
reduce Idahoan’s taxes by $56 million over the
last two years.
There is still work to do before Idaho emerges
from the financial decline that started several
years ago but, because of tough decisions, we
are doing better than the vast majority of
states. As the legislative session continues to
progress, I will continue to support policies
that are fiscally responsible while providing
the best use of taxpayer dollars.
It is important to keep in mind that one-time
money from reserve funds has been built into the
state budget to help it balance each year in
recent years. I have been a strong proponent of
keeping these reserve accounts.
Before the recession began in 2008, Idaho had
rainy-day reserves of nearly $400 million. When
the economy struggled, those funds helped soften
the blow and turn what could have been far more
dramatic cuts into more reasonable ones.
Though the economy is improving, our rainy-day
accounts are still just close to half of the
previous $400 million mark —about $200 million.
Budgeting funds to these accounts now is a wise
move in an uncertain economic cycle. We must
continue to rebuild those reserves in an effort
to stave off any future downturns.
As a budget writer, I understand that there are
still many needs. We will continue to work hard
to balance our limited resources with the many
needs of a diverse state.
The state of Idaho continues to manage our
budget in a prudent fashion. I am optimistic
that we will continue to see Idaho’s economy
bounce back. Tough decisions have left us in
good shape. There’s no reason to change our
approach now.
The second week of the Legislature included
continued budget hearings with the Health &
Welfare, Public Health Districts, Veterans, and
the Medical Catastrophic Care Fund budgets
taking center stage. The other committees are
getting in gear and focused on rules that state
agencies have drafted to implement laws passed
by the Legislature. Idaho is one of very few
states that has retained and fought for the
right to review, accept or reject rules written
by the agencies. This helps to keep the focus on
the original intent of the law.
Remember that the internet brings the work of
the Legislature closer than ever! Go to
www.legislature.idaho.gov to track bills
introduced, committee meeting agendas and listen
in or watch hearing of interest. As always,
shoot me an email and let me know your thoughts,
perspectives and opinions on the issues in front
of our State Legislature:
skeough@senate.idaho.gov. |
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