The interim legislative task force charged with identifying alternative sources of funding for the Idaho State Police and the Idaho Department of Parks and Recreation met last Tuesday. The funding in question was shifted away from the two departments this past legislative session to fund the transportation bill that goes into effect in July of 2010.
Co-Chair Senator Cameron opened the meeting by outlining the scope of the committee: primarily that the committee is not tasked with undoing the work of the 2009 legislature, nor in redefining the scope of the ISP or the IDPR. Finally, Senator Cameron said he will have considered this task force to have failed if the only option they can identify is to shift the responsibility of replacing these funds to the General Fund.
Interestingly enough, it was this point with which Representative Raul Labrador of Eagle took issue. Apparently, Senator Cameron’s statements narrowed the focus of the committee too much for the Representative.
For background, Paul Headlee of the Legislative Services Office provided an overview of how funds from the Highway Distribution Account are distributed. This revenue includes that from gas taxes, vehicle registration, licensing and other fees which are directed to the State Tax Commission administration, railroad crossings, bridge inspections and Parks and Recreation. Beyond that, funds are distribution to the Idaho State Police and ITD’s State Highway account. Subsequent to June 1st of this year, gas tax funds have been siphoned off to go to the ITD/State Highway Account, removing ISP and IDPR from the distribution. Over the past 25 years, the amount distributed to these two departments has increased steadily, until FY 2008, when distributions equaled $4.3 million to IDPR and $16.36 million to ISP. The forecast for 2011 for IDPR is $240,000 in distributions and $0 for ISP.
Jim Alcorn, the Director of the State Insurance Fund described the Idaho Petroleum Clean Water Trust Fund and the $.01 transfer fee required of fuel distributors. The fund was put in place to provide a low cost solution to those who need liability insurance for fuel storage tanks. The fund is strong now, with reserves in place to fund claims against it, but income from investments has declined, while actuaries predict that claims on the fund will increase. Currently, the fund has an unencumbered surplus of $22 million. This will be reduced to an estimated $12 million by 2018.
Sen. Cameron pointed out that at some point, we’re going to have to put money into the fund to keep it afloat, and asked for any commentary from the audience. Suzanne Budge complied. Budge represents the Idaho Petroleum Marketers and convenience store owners. She noted that most states implemented clean-up funds as a result of the EPA requirement. These were funded by a percentage of fuel tax. Budge noted the extraordinary efficiency of Idaho’s insurance fund, which has been a model for other states. Where other states have gone into the red, this fund has been well run.
Another industry expert testified, noting the number of schools, cities, counties and other entities required to have this insurance. There is also private insurance available, but with relatively high premiums. Furthermore, insurance companies tend to cherry-pick those they insure based upon the age of their units. Some private tank holders will go under if this fund ceases to exist.
Richard Burns, Budget & Policy Analyst with the Legislative Services Office gave an overview of Idaho State Police funding, specifically that the department projects a 2010 revenue shortfall of $2.87 million. Originally, ISP requested that General Fund money be used to replace these funds. The shortfall required that personnel costs be shifted onto the Project Choice fund. Project Choice is dedicated to helping ISP personnel develop career ladders – thereby reducing attrition in the department, and supporting recruitment efforts. Within the next year or two, Project Choice funds will no longer be available, forcing a choice between maintaining staff, or reducing a fund, which ultimately impacts the department’s retention.
Lt. Col. Kevin Johnson, Deputy Director of the Idaho State Police addressed how Highway Distribution Account funds are used by ISP. The Department requires a minimum of $18 million from the Highway Distribution Law Enforcement Account. Absorbing this reduction would ultimately mean a loss of more than 200 personnel, and the ability to patrol anything more than county roads. The department submitted a number of suggestions, including raising vehicle registration fees, increasing drivers license fees, implementing a surcharge or dedicated sales tax on transportation-related items, or fee on all new car sales, increase new, transfer and out-of-state title fees, or accessing the general fund.
Ray Houston, Budget & Policy Analyst with the Legislative Services Office presented an overview of Idaho Department of Parks and Recreation Funding, The trend for the past decade and earlier is that a larger and larger portion of IDPR budget is from sources other than the General Fund:
- General funds represent $6.8 million or 17.6% of the department’s total budget
- Dedicated funds represent 27.6 million or 71.7% of total
- Federal funds represent $4.1 or 10.7% of total
A tax on recreational fuels funds $5.3 million or 13.8% of the total fiscal years 2010 appropriation. Prior to 1963, Idahoans submitted vouchers on their gas receipts for a refund. In earlier testimony, recreationists (wearing nametags saying “Hello, my name is _______. We want our gas tax back,”), referred to a voucher system that was given up to fund recreation in Idaho. Recreationists apparently wanted to see gas tax collected on vehicles that didn’t use public roads used instead for trail, boat and snowmobile access. Representative Labrador, noted that he heard that it costs $100 per refund to process such refunds, although Houston could not confirm this.
Co-Chair Senator Cameron opened the meeting by outlining the scope of the committee: primarily that the committee is not tasked with undoing the work of the 2009 legislature, nor in redefining the scope of the ISP or the IDPR. Finally, Senator Cameron said he will have considered this task force to have failed if the only option they can identify is to shift the responsibility of replacing these funds to the General Fund.
Interestingly enough, it was this point with which Representative Raul Labrador of Eagle took issue. Apparently, Senator Cameron’s statements narrowed the focus of the committee too much for the Representative.
For background, Paul Headlee of the Legislative Services Office provided an overview of how funds from the Highway Distribution Account are distributed. This revenue includes that from gas taxes, vehicle registration, licensing and other fees which are directed to the State Tax Commission administration, railroad crossings, bridge inspections and Parks and Recreation. Beyond that, funds are distribution to the Idaho State Police and ITD’s State Highway account. Subsequent to June 1st of this year, gas tax funds have been siphoned off to go to the ITD/State Highway Account, removing ISP and IDPR from the distribution. Over the past 25 years, the amount distributed to these two departments has increased steadily, until FY 2008, when distributions equaled $4.3 million to IDPR and $16.36 million to ISP. The forecast for 2011 for IDPR is $240,000 in distributions and $0 for ISP.
Jim Alcorn, the Director of the State Insurance Fund described the Idaho Petroleum Clean Water Trust Fund and the $.01 transfer fee required of fuel distributors. The fund was put in place to provide a low cost solution to those who need liability insurance for fuel storage tanks. The fund is strong now, with reserves in place to fund claims against it, but income from investments has declined, while actuaries predict that claims on the fund will increase. Currently, the fund has an unencumbered surplus of $22 million. This will be reduced to an estimated $12 million by 2018.
Sen. Cameron pointed out that at some point, we’re going to have to put money into the fund to keep it afloat, and asked for any commentary from the audience. Suzanne Budge complied. Budge represents the Idaho Petroleum Marketers and convenience store owners. She noted that most states implemented clean-up funds as a result of the EPA requirement. These were funded by a percentage of fuel tax. Budge noted the extraordinary efficiency of Idaho’s insurance fund, which has been a model for other states. Where other states have gone into the red, this fund has been well run.
Another industry expert testified, noting the number of schools, cities, counties and other entities required to have this insurance. There is also private insurance available, but with relatively high premiums. Furthermore, insurance companies tend to cherry-pick those they insure based upon the age of their units. Some private tank holders will go under if this fund ceases to exist.
Richard Burns, Budget & Policy Analyst with the Legislative Services Office gave an overview of Idaho State Police funding, specifically that the department projects a 2010 revenue shortfall of $2.87 million. Originally, ISP requested that General Fund money be used to replace these funds. The shortfall required that personnel costs be shifted onto the Project Choice fund. Project Choice is dedicated to helping ISP personnel develop career ladders – thereby reducing attrition in the department, and supporting recruitment efforts. Within the next year or two, Project Choice funds will no longer be available, forcing a choice between maintaining staff, or reducing a fund, which ultimately impacts the department’s retention.
Lt. Col. Kevin Johnson, Deputy Director of the Idaho State Police addressed how Highway Distribution Account funds are used by ISP. The Department requires a minimum of $18 million from the Highway Distribution Law Enforcement Account. Absorbing this reduction would ultimately mean a loss of more than 200 personnel, and the ability to patrol anything more than county roads. The department submitted a number of suggestions, including raising vehicle registration fees, increasing drivers license fees, implementing a surcharge or dedicated sales tax on transportation-related items, or fee on all new car sales, increase new, transfer and out-of-state title fees, or accessing the general fund.
Ray Houston, Budget & Policy Analyst with the Legislative Services Office presented an overview of Idaho Department of Parks and Recreation Funding, The trend for the past decade and earlier is that a larger and larger portion of IDPR budget is from sources other than the General Fund:
- General funds represent $6.8 million or 17.6% of the department’s total budget
- Dedicated funds represent 27.6 million or 71.7% of total
- Federal funds represent $4.1 or 10.7% of total
A tax on recreational fuels funds $5.3 million or 13.8% of the total fiscal years 2010 appropriation. Prior to 1963, Idahoans submitted vouchers on their gas receipts for a refund. In earlier testimony, recreationists (wearing nametags saying “Hello, my name is _______. We want our gas tax back,”), referred to a voucher system that was given up to fund recreation in Idaho. Recreationists apparently wanted to see gas tax collected on vehicles that didn’t use public roads used instead for trail, boat and snowmobile access. Representative Labrador, noted that he heard that it costs $100 per refund to process such refunds, although Houston could not confirm this.
“At the risk of sounding callous,” Co-chair Cameron said “why were these recreationists entitled to a refund?”
Co-Chair Cameron added that a number of states are in dire financial situations currently, some even needing to close state parks and recreational facilities. He asked IDPR to gather information on how Idaho is doing compared to other states in this regard.
David Ricks, Acting Director of the Idaho Department of Parks and Recreation, outlined specifically how gas taxes are used by his department:
- 28% to off road motor vehicle fund – the staff gives about $600k every year in grants to maintain trail access, develop mapping and signs, educate the public on proper use, and on grooming 5,600 miles of snowmobile trails every year.
- 28% Waterways improvement fund – this fund supports the use of 91,000 recreational motorboats including launch facilities, navigational aids and enforcement/education. This is a highly competitive program, with only one in five grants approved every year.
- Search and Rescue
- Capital Improvement Fund – this is allocated to state park maintenance and improvement such as to restrooms, playground equipment, roadways, bridge inspection and maintenance and infrastructure. Ricks noted that surveys show that families visiting a park with a shabby restroom facility are unlikely to visit again.
Ricks noted that most of the funds go to local government entities that make repairs and improvements to more than 30 state parks. Tourism is Idaho’s third largest industry, bringing in $3 billion into the state’s rural economies annually. Earlier in the day, during public testimony, Sandra Mitchell of the Idaho State Snowmobile Association emphasized the degree to which Idaho tourism supports the state economy.
“After they did away with the extraction industries, what was left was recreation.” She said, noting that recreationists “pay their own way” in this state.
The committee voted to meet again in mid August, to hear reports from the Tax Commission. Rep. Labrador noted that he would still like to see a broader scope for the committee, including the opportunity to revisit the laws passed during the recent legislative session, but Co-chair Cameron remained steadfast.
“It’s not that I am objectionable to un-ringing the bell,” he said. “I just don’t think it’s doable.”
Senator Patty Ann Lodge and others asked for more information that she said was based on suggestions from her constituents, such as increasing fees for nonresident recreationists, or increasing fines for infractions or DUIs.
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