Gov. Brad Little and top lawmakers gave a preview of their priorities for the upcoming legislative session Friday morning. They include boosting spending on infrastructure and education, while also fitting in a tax cut.
Politicians have plenty of money to play with. Idaho is currently projected to have a $1.6 billion surplus, though the latest forecasts will be made public on Monday.
Little wants to concentrate on one-time projects, like fixing roads and bridges. That’s because he said he’s not sure how much of the tax growth is boosted by federal relief money.
“We won’t be big spenders because we’re concerned about that,” Little said.
Earlier this week, legislators heard from state analysts and businesses about Idaho’s economic outlook – with several elected officials asking how stimulus money for individuals and businesses might’ve temporarily goosed sales and income tax collections.
All-day kindergarten and child care proposals will be included, Little said, as will options to combat ballooning housing costs.
“That used to be an issue maybe in the resort communities and the larger areas," he said. "It is an issue everywhere and you cannot snap your fingers and fix that problem.”
He said having enough starter homes available makes it easier to keep native Idahoans from moving out-of-state – or lure them back.
Businesses are also having a difficult time attracting workers because of the housing crunch.
The median sales price for a single-family home in Ada County reached $537,000 in November 2021, the latest data available. That’s up 25.1% from November 2020.
An Idaho Department of Labor analyst on Thursday said the disconnect between the state’s average wage, which has consistently been well below the national average, and home prices threaten our booming economy.
Property tax relief ranks among the highest priorities for Republicans and Democrats alike, though the two parties have different ideas on how to achieve that goal.
Rep. James Ruchti (D-Pocatello) argued the state should cover the cost of all K-12 school supplemental levies across Idaho to the tune of $220 million. Such levies are funded through the property taxes of those who live in each school district.
“This is a constitutional responsibility of the state legislature, not local taxpayers,” Ruchti said.
Democrats argue that the $1.6 billion in extra tax revenue shouldn’t be considered a surplus. Instead, they said it’s the result of underfunding critical needs for state residents in favor of tax cuts.
GOP leaders take issue with that characterization.
House Speaker Scott Bedke (R-Oakley) said covering the cost of school levies could be done, though that could widen disparities between districts where voters support more funding for schools and those that have no supplemental levies.
“If you want a shift, we can shift, but you have some inequities in the system that bog this discussion down,” Bedke said.
Being an election year, legislative leaders were asked how politics would bleed over into policy-making.
“Sometimes the adults act like children,” said Senate Pro Tem Chuck Winder (R-Boise), noting there will be a lot of eyes on the predicted surplus.
Still, he’s optimistic the tone of the session will be more polite.
“I think a lot of the angst hopefully won’t be there. Everybody’s going to be wanting to get home, particularly with district changes,” Winder said.
Little will give his State of the State address Monday at 1 p.m. in the Idaho House chamber.
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