By Representative Tom Loertscher, R-31

I can’t remember a time when we have had a chance to look at a preliminary budget blueprint that has had so many red numbers (budget decreases) on it. As it came to us at week’s end, it took the breath from some of us who have been busy with other committee assignments. It came as no big surprise, but to see it on paper jarred the senses a little. These first numbers include an anticipated decrease in the number of funded state positions by 400. That does not mean there will necessarily be 400 less employees, just 400 less positions available.

Sometimes legislation is introduced around this place to fire a shot across the bow of an agency, to get their attention and/or get their help on a problem. Rep. Gibbs and Senate Pro Tem Geddes came before State Affairs with our little bill to solve the septic tank issue that has caused problems in Franklin County. Little did we know that this has been a big problem elsewhere in Idaho and the committee’s response was quick to have it introduced. Rep. Anderson who sits next to me expressed pretty much what we have heard from others, “I like this bill!” It may have been a warning shot, but it has garnered not only the attention of the Department of Environmental Quality, but the support of a large number of legislators and others.

It must be the year of firsts, and another event took place that has not happened before. Governor Otter requested to come to the House Republican Caucus to discuss what happened with the public employee retirement increase. After the meeting the Associated Press did its best to try and get some comments from me about what had happened and what the Governor had said. I don’t think it appropriate to quote the governor, nor do I think it is my job to question his motives. Do I think less of the Senate for what happened? No, this is just what seems to be normal around here. And as Forest Gump said, “That’s all I have to say about that”

Another first this year has to do with the Speaker of the House Lawrence Denny. It has been traditional in the House to have some entertaining production on the Speaker’s birthday which was on Friday. Before we convened I asked him if there was another “skit” planned for the celebration this year. He has told me other years that he dreads what is about to happen, but I think he has been a good sport about the fun and games. Expecting something to happen as we were about to adjourn, the annual production conspicuously didn’t happen. I couldn’t tell if he was relieved or disappointed. It reminded me of the story I heard of the family that lived along the railroad tracks and were never awakened by the 3:00 AM train. Then one night it didn’t run and they all woke up and said, “What was that that?” It was sort of the same reaction.

And also for the first time, there seems to be a plan to get this wrapped up before April arrives. Now that is really a first. And if the wheels stay on this wagon it is doable. Just one little hiccup along the way could alter this. For the first time ever the Senate co-chair of JFAC is going to share the intent language for the education budget before it is set. It is a year for firsts indeed.

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By Representative Tom Loertscher, R-Bone

George Bernard Shaw said that youth is wasted on the young, but as I looked over the large group of 4-H youth at the annual Know Your Government breakfast I’m not sure his thesis is valid. These kids, especially those from our area, are sharp, eager to learn and determined to achieve. Mr. Shaw must not have known many young people like these.

I receive a little magazine from John Deere called The Furrow. There are some really interesting articles and each issue contains what they call Fun & Philosophy. One little item this issue is from Winston Churchill, “One ought never to turn one’s back on a threatened danger and try to run away from it. It you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half.”

Our first big debate of the session took place this week over whether or not to allow the Cost of Living Allowance granted by the board governing the state retirement fund to take affect. These are tough times and I don’t know many folks that couldn’t use a little more money. The debate, after clearing all of the emotional issues aside, centers around one simple fact. The gap between what is earned and contributed and what is being paid in benefits is widening. This is known as the unfunded liability. Even though there is a healthy balance on hand, we are headed for a wreck if each year more is paid out than is coming in. As unpleasant as it may be, meeting the danger of putting the fund in jeopardy promptly will ultimately reduce the danger and insure the soundness of the fund.

The pace has also picked up in most committees, with longer meetings and more legislation being deliberated. Two proposed constitutional amendments have cleared State Affairs and will be debated by the full House early this next week. There is one yet to come for the cities that have power generating facilities so that they can enter into long term power purchasing agreements.

Also in The Furrow this time is an article about precision farming. Imagine that, precision in farming. Coupled with the article is an ad with a picture of the cab of a brand new tractor with two electronic monitors, one to watch multiple tractor functions and the other to run the GPS guidance system. It’s not as crazy as it sounds because putting seed, chemicals and fertilizers at precise spacing actually saves, big time. I couldn’t help but think of our budgets this year and how they are going to need more precision than ever before, watching every penny. And as odd as it may seem, that precision is going to have to take place in the field more than around these halls. We’ll just provide the incentives and the flexibility.

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By Rep. Tom Loertscher, R-Bone

One of the unusual things about this session of the legislature is that we have now come through five full weeks and JFAC, at the end of the week, has finally set a target number for the budget. On normal years this happens in the first or second week at the latest. It was thought prudent to wait until the January revenues were in. It is down even more and the adjustment to the current fiscal year’s budget will be bigger as well.

The Director of the Department of Health and Welfare came before the House committee explaining how the shortfall and reductions have affected them. One bright spot in all of this is that the providers are assisting in finding ways to cut expenses.

The discussion about the Katie Beckett program (help for severely disabled kids) continues to be a focus of discussions with Health and Welfare. After the rules failed in the committee for proposed premium payments, I asked the Department to collect some data to see what could be saved under their proposal. I met with two of the head people in Medicaid and they have put together some data that at least gives the members of the committee information on which to make an informed decision. I don’t agree with the method they used to come up with payments, which is based on a percentage of gross income. The Federal Government doesn’t even tax on gross income.

I keep my ears open while at home each weekend and it is interesting to hear the comments about our situation. One idea that came up was to look into how anesthesiologists are reimbursed for their services under Medicaid for dental services. It seems that they are paid much more for dental services than for any other procedure, even in the O.R. That is a bit strange and I will be looking into that. It makes me wonder just how many other areas like this we can find if we just try.

It is a whole new game this year and it provides us with the opportunity to reevaluate everything we do in State Government. While speaking with the folks from Medicaid, I couldn’t help myself but to remind them about how we got to this spot. When times are good and we have a lot of your money, it has been easy to become lax in how we determine eligibility. A few years ago we had an “any door policy”, which was used to sign people up for every service they qualify for, even though they may have only needed one specific thing. In those days an application for Food Stamps would get you a Medicaid card even though you might not have needed it. And then we wonder why Medicaid has grown so much over the years.

Another question that came up this weekend was, “What is the mood in Boise these days?” My response was that there a lot of long faces around this place, some from legislators and more in the agencies. It seems to be more fun for some around here to spend a lot of other people’s money than it is to say “no.” As for me, I think of the people’s money with great respect. We should have been much more careful all along. Heaven only knows that I have been saying it often enough at the Statehouse.

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By Rep. Tom Loertscher, R-Bone

There is an old Irish saying, “Count your joys instead of your woes, Count your friends instead of your foes.” Our friend The Farm Bureau was in town for their annual meeting and the evening spent with them was very enjoyable and a reminder to deal with our problems the way we do down on the farm. After the conversation at my table went on for some time, Mrs. Priestly looked at me and asked if in the middle of all of our problems, if there is anything good to report?

A few good things are happening and a short list follows. We have turned down some not so good rules from some of the agencies. That’s a good thing. When rules are so burdensome or lie outside what the law intends, they need eliminating. In State affairs we have found some extra cash by implementing electronic publishing for the rules themselves.

In the elections arena we are looking at legislation to allow for online filing of campaign reports that will help save some money as well. We have forwarded a bill to the full house that asserts our state’s rights when it comes to health care. It authorizes our Attorney General to seek relief should the Congress pass health care laws that would cause increases in Idaho’s costs and would impose penalties on our people for not purchasing insurance. We will soon see legislation to implement photo voter identification. There are some changes to the redistricting law, in addition to what we did last year, that should help our rural areas. And even better news is that everyone around this place is committed to getting this done and out of town (I’m shooting for March 26 or sooner).

We have put some deadlines in place for bills to be printed. Anything beyond that point will have to pass the following test: Will the republic endure without this measure? In a year like this, it has become difficult to find the joys, but we do have them. I’ll do my best to count them.

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from Representative Tom Loertscher, R-Bone

When I was younger my parents used to say that as they were getting older time seemed to fly by. Of course that is not what really happens, it just seems like it. That is about how the second week of the session went. It seemed to me that there was somewhere to be and something to do from early morning until late in the evening.

These beginning days are mostly for rules review and that has gone smoothly for the most part. In State Affairs we divide the rules among a couple of sub-committees for an in depth look at the rules and then come to the full committee for final approval. This speeds up the process a great deal. Several proposals came before the committee this week for introduction and have been greeted with mixed results. One of the Governor’s proposals was narrowly approved while another was turned back to one of the members of the committee. And yet another bill was sent back to sponsor for further improvements. It’s a tough committee and not much seems to escape them.

Budgeting still remains the number one thing talked about around the halls of the capitol. There has been a big discussion about the revenue target number set by the projection committee at sixty four million below what the Governor has projected. Some say it is too pessimistic and will stifle business, but in reality there is a world of difference between overestimating revenues and setting budgets based on projections that fall short. It is far easier to adjust upward than it is to cut budgets in the middle of the fiscal year (which is where we find ourselves today). Down on the farm if we borrow money based on a 100 bushel per acre crop and the crops come in at 60 bu/ac we’re in deep trouble. But if we estimate 60 and produce 100 we get to smile on the way to the bank.

Surveys have been taken to see what people at home think about this budget problem and statewide there is little support for increasing taxes. Every rock is being looked under for solutions and what programs to cut. The Governor was about eaten alive this last week at the suggestion of doing away with Parks and Recreation and moving their business to Fish and Game. F&G being loved or not loved as the case may be, has gotten most of the comments.

Mail and emails are pouring in about the need to fix the midwifery bill that was passed last year. I had thought we covered all of the areas of concern but apparently not. I have received communications on the ATV rules coming from Fish and Game that prohibit their use for hunting. State’s rights legislation as it pertains to health care has been introduced and is on people’s minds at home. Those are just some of the issues we face this year and are getting a lot of attention around this place.

It is said that time flies when you’re having fun. My version is a bit different. Time flies when you are busy. Either way time is flying in the House.

By Representative Tom Loertscher, R-31

As we were waiting for the Senate to send one last budget bill to us so that we could finish our business and put a final end to this session, I couldn’t help but think that this was not the ending any of us had in mind. So now that it is over we all have to ask ourselves what we have to show for seventeen weeks in Boise? There is quite a bit actually, and even some things that you may not read anywhere else.

One very significant issue was the passage of election consolidation. This bill will put all elections on no more than four dates per year, all to be conducted by the county clerks. Polling places will be consistent for all elections and the hope is that it will increase voter turnout and eliminate some of the confusion that has surrounded where to vote particularly for school elections.

Another issue that occupied a great deal of time was the Comprehensive Aquifer Management Plan that has put in place a framework for recharging these underground reservoirs. It also provides for a prudent method of financing the efforts that after some compromising should be fair to all water users. I still have some concerns about the process, and only time will tell how much we are able to achieve. And while this first effort is in the Snake River Plain, it will eventually be used in Bear River Basin as well.

Another matter that will have a long term affect on Bear Lake and other lakes and streams is the program that was enacted to keep Quaga and Zebra muscles from getting a start here. These little critters are very destructive to irrigation systems, electrical generation turbines and to the general health of bodies of water.

We were able to keep fuel tax and registration fees from increasing, which is a good thing given the state of the economy and the record number of dollars available to ITD over the next two years. In our rural corner of Idaho fuel tax increases have a very different effect than they have on urban areas.

I wish I could say that we did not increase any taxes, but that was not to be. Counties will have to pay more for indigent claims because of the increase in deductable for the Catastrophic fund and a new layer of bureaucracy at Health and Welfare. This will cause about a million and a half dollars of property tax increases state wide. I was unable to convince my colleagues that this was not a good idea.

Funding for schools was shorted for what some say is the first time ever. In light of current circumstances it may be the best we could have done, but nonetheless it is quite painful. We did however provide some flexibility to local districts that should make them better able to meet their needs. Another area of concern is that services to the mentally ill and the disabled were also cut. Long term shifting some of these expenses to counties and institutional settings could end up costing more.

And how would I score this session? It is hard to say, for that is in the eye of the beholder. But one thing is for certain, it was most difficult. In tough times thing never are simple and as we look forward – it probably won’t be any easier next year. And that is the optimistic view.

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By Representative Tom Loertcher, R-31

Just before beginning the State Affairs Committee late last week a
member of the committee, Representative Lynn Luker, handed me this
little poem that I later read on the House floor just before adjourning
for the day.

The cattle are lowing,
The alfalfa needs mowing,
The weeds are all showing,
But the legislature’s still going.

Several times these past few weeks I have been saying that we should
have finished our work by now. We were on a roll to do so when the Veto
stamp made itself manifest in a big way. So now there are 33 budget
bills to redo or override but the latter is not likely to happen. We
have to pass the budget before we can leave town, just one of those
little constitutional duties.

It was an interesting week in the capitol to say the least only to be
outdone by the comments from folks at home over the weekend. To a person
the comments have not been favorable to the Governor’s position on
raising fuel taxes or his tactics. What seems like a small thing to tax
spenders is quite differently viewed by the tax payers. Everyone has
their reasons but the one that keeps coming up time and again is that
folks at home are a bit worried about the future. Somehow we survived
last year’s four dollar plus gas prices when the economy was doing
well. Now with layoffs, home foreclosures, investment losses, and the
nation embarking into enormous deficit spending, another round of high
fuel costs would be much tougher to endure.

Much negotiating by the House and the Governor is being done to get a
resolution. As we have looked at the numbers, we find that there is
going to be over a billion dollars available to spend on roads over the
next eighteen months from various sources, including unspent GARVEE
funds, new GARVEE authorization, all of that new stimulus money, and
some already agreed upon items that were vetoed. One thing I have
noticed is that government just never seems to have enough money to
spend.

Because of how we have funded roads with fees and taxes per gallon, a
phenomenon has made itself manifest. Government has been saying now for
years that we use too much fuel. For our own good we need to cut back.
We did what we were told and now our reward for being so thrifty with
the liquid gold, we are told we need to pay more taxes. Just another of
those mixed government messages.

With all of this going on you might think that nothing else has been
happening, but to the contrary there were some non budget matters
considered. One was a bill to make some changes in the redistricting
law, that will help keep communities of interest together. This will
help our district a great deal. Another item that passed the House this
week was a realigning of regulation of private driver education
businesses. Senator Geddes sponsored both of these bills in the Senate
and I was the House Sponsor. They both passed the House and are on the
way to the Governor.

In the early weeks of the session one member of the House predicted
that the final day of this legislative session would be May 1st. He got
a good laugh with that prediction. Guess who is getting the last laugh
now.

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By Representative Tom Loertscher, R-31

It used to be that some around this process said there was a “Tractor
Factor” in the Idaho legislature. There were enough agriculturally
oriented legislators to recognize when spring had arrived and it was
time to get home to plant and bring this process to an end. That made me
think that this sometimes is a lot like types of ag equipment.

Tractors are like the state budget, you can’t operate without one and
now we are in the throes of finishing up on the budget for 2010, along
with some corrections to the 2009 budget. The budgeting process this
year has been more fluid than any I can remember, with many changes
along the way and not having a firm idea of what the numbers might look
like. Coupled with some disagreements with the executive branch about
how it should be done have lengthened the session a few days.

There is an old adage on the farm when you are approaching a hill in
the field you need to be in the right gear before you begin the ascent,
or you might not make it. And there are times when a bigger tractor
would come in handy but with limited resources it is not possible. And
that pretty much explains the budget dilemma this year. The Medicaid
budget cleared the House this week spending almost a billion and a half
dollars, and a larger share of that is slated to come from the Feds than
ever before. All we can do at this point is to hope that this tractor is
in the right gear.

One of my favorite farm implements is the plow. Seeing that dark rich
soil turned as you move through a field is very satisfying. Some times
in the legislature success and satisfaction can be measured in what does
not happen. A bill to make drastic changes in liquor licenses failed in
the House this week. It would have most certainly increased the number
of alcohol by the drink establishments and would have made it possible
to have those outside cities. We plowed over this one for a long time,
both in committee and on the floor.
My dad always told me that his favorite time of the year was the
harvest and that there was no feeling quite like seeing that red wheat
flow into the bin of the combine. The harvest is the culmination of the
farm year whether it is with the combine, the swather, the baler or the
digger. Harvesting is also one of those things that can’t be rushed in
most instances, because a year’s worth of work would be spoiled. On
the other hand if you don’t move when the crop is ripe it could be
lost as well. That is how it goes with legislation. We have been working
for weeks on several measures that needed to mature before they came to
the floor for “harvest.” Water issues were some of those having to
do with recharge of the aquifer and another was the Cystic Fibrosis
legislation.

Then we have the seedbed makers and planters and grain drills, those
machines that are the beginning stages of most if not all crops.
Sometimes good ideas around this place take a great deal of preparation
before they are planted. And I have seen the opposite when things get
introduced and passed too quickly. We sent one measure to the floor from
State Affairs this week that will make some changes to the redistricting
process. We’ve been contemplating these for a couple of years. It
looks like those plantings will soon bear fruit.

And then some of us have bulldozers. Let your imagination wander a bit.
That’s a whole other article by itself.

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By Rep. Tom Loertscher, R-31

Most legislative sessions eventually come down to a showdown between the legislature and the governor. It doesn’t look like this time around will be any different. Governor Otter is not happy with us on several fronts, the most obvious of which is revenue for roads. We debated a two cent increase for quite some time and the comments expressed were creative. “This is such a piddley little amount” and “If your car gets twenty miles per gallon and you drive twenty thousand miles per year it will only cost you a dollar a month” were two of the most memorable ones. I voted no. Rural Idaho will pay more because we have to drive further to do our business than urban folks do.

One House member itemized the amounts that will be spent this year by the Idaho Transportation Department and the figure is very large, even with current revenues. And that is not taking into account the new GARVEE authorization that passed the House on Friday and is on its way to the Governor for signature. I voted no. More debt in these times is not a prudent thing to do. We are told we have to continue because we started and we will not be able to finish without more debt. Never mind the effect debt has in a climate of decreasing revenues. The Good Book has some great advice, “For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?”

Another showdown is on the way over state employee salaries and how to administer them. Here again it has been interesting to see the mixed messages that have been coming from the Governor’s office and we still don’t know if we have a solution that is acceptable to him. I rather think that we will soon have the answer to that if he starts to use that big ugly red veto stamp. I was visiting with one of my colleagues the other day and he told me the Governor was not happy. I responded that I don’t believe we are in charge of his being happy or not.

We have arrived at that time of year when we all wish we would have concluded our business by now. Spending Easter week in Boise is not what we had in mind, and going into the middle of April is not good either. When there were more farmers in the legislature they wanted to get back to the fields when the weather warmed up. In our neck of the woods things are still a bit wet but I’ll bet that won’t last too much longer.

Speaking of farming, a long Saturday at home was great, and even if the ground was too wet to plow, it was about right to get the spreaders and loader going to do some cleanup after a long winter. Some might say that I should have brought some of the spreading equipment back with me to speed up this process, or whatever other metaphor might be appropriate.

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By Representative Tom Loertscher, R-31

There are times when a task seems so overwhelming or intimidating that
you would rather not be anywhere in the area. That happened to me this
week when the Idaho Education Association had a meeting in Boise and
they invited all members of the legislature to attend their
“hearing.”

JFAC does not provide a method for the public to be heard during the
budgeting process and with that in mind the IEA had this meeting so we
could “hear” their concerns. It was most interesting and in spite of
my trepidations about going, and the complaints voiced, I learned some
things. Teachers have the feeling that they are not appreciated for what
they do. Testing always comes up in these forums and I tend to agree
that testing as we have been doing it takes a lot of time away from
teaching. They favor the idea that school districts should be
consolidated. They desire that we should use our reserve funds to keep
them whole.

One of the things I really enjoy at these kinds of events is the
meeting after the meeting. Representative Ken Andrus and I talked at
length with a couple of teachers from our part of the state and it was
interesting. At first it was difficult to talk to them, because of the
pent up anger about the level of funding for schools that has come from
JFAC. We explained the consequence of using our reserves for ongoing
expenses. Those moneys can only be spent once and then in these types of
situations there is no means with which to replenish the fund. After a
few minutes of discussion they were still not happy, but at least I
think they had a better understanding about how difficult this budget
year is for the legislature. I was glad that I attended.

Another topic that has caused some turmoil is the way salaries for
state employees are being lowered. The arguments center around the
amount of the reduction and how to administer it. The technical issues
are a little complicated but the principle is if we were to approve a
lower reduction for employees than for teachers, and if we are going to
use reserve funds to make up any differences, then to be consistent I
would say that we should dip into those reserves for teachers as well.
It is not right to be willing to use those funds for one and not the
other, no matter what the consequences might be.

Another bill (S1158) making its way to the House floor is one to
partially shift medically indigent expenses from the state to the
counties and cause a property tax increase for all of the counties. This
falls in the category of an unfunded mandate, and by the way it also
will create a new level of bureaucracy in the Department of Health and
Welfare. All of this is in the name of balancing the budget. Two new
state employees to do what the counties already do. And by the way
again, this new layer of review will be paid one hundred percent by the
counties, (property taxes) no matter what it costs. I’m not making
this up, that’s what the bill says. I’m sure glad we will not be
raising taxes to balance our budget, but not so glad we will be raising
property taxes to balance the counties’ budgets.

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