Governor Otter's State of the State Address 2010

In his State of the State Address today, Governor Butch Otter gave nods to innovation, dug his heels in about federal intervention and, of course, gave a preview of what look to be dire budget cuts for the year to come.

To begin with, Governor Otter outlined what he calls the "basic tenants of the role of government" …

- “Number one, we must not raise taxes. It is not our place to impose an additional economic burden on the people of Idaho who already are struggling, or to put a damper our economic recovery.
- “Number two, we must continue to maintain some level of cash reserve against the prospect of our economic recovery taking longer and being less robust than we hope. . . Prudence demands that we act with caution.
- “Number three, we must do whatever we can to protect the educational opportunities and safeguard the potential of the next generation of Idahoans – our children and grandchildren. And as our recovery advances, one of our first priorities for new dollars should be our public schools and higher education.
- “Number four, we must do whatever we can to protect the health, safety and well‐being of our citizens – especially the neediest and most vulnerable among us.
- “And number five, we must do whatever we can to avoid any duplication of effort or any waste of the taxpayers’ hard‐earned dollars.”

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Transportation infrastructure was the Governor's bully pulpit last year, and from his remarks today, it looks to continue to be on the legislative docket for 2010 …

“Transportation remains a very important priority for my administration – as I know it does for you. Our economic well‐being as individuals and as a state will remain in jeopardy without safe and efficient corridors of commerce. That’s why Lieutenant Governor Little is leading my Transportation Task Force – with the help of legislators and private citizens – to carefully study and consider the long‐term needs that still must be addressed once our economy turns around.”

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Legislative pundits, and anyone who's been keeping up with current events, have been predicting dire budget cuts this year. The Governor’s speech contained few specifics:

“... My recommendations are based on zero revenue growth in Fiscal Year 2011. That threshold agreement on a starting point for our budget work was reached over four months of unprecedented discussions with legislative leaders.

"It reflects the relationship between economic recovery and revenue recovery, as well as our
continuing commitment to being frugal stewards of the people’s money.

“As a result, my budget eliminates more than 400 positions throughout State government –
including about 375 that now are vacant – and consolidates some agency operations.
And finally, I’m proposing that for the balance of Fiscal Year 2010 we hold back an additional $40 million from all State agencies and operations – including public schools.

“That is among the toughest recommendations I make today. But the fact is that while other Executive Branch agencies have cut their spending by $499 million as a result of holdbacks over the past two budget years, we have used almost $318 million from reserve accounts and federal stimulus funds during that same period to reduce the impact on public schools. . . Now legislative leadership and I are in agreement that public schools must participate in this new
effort to respond to sharp revenue reductions by paring an additional 1.6 percent from our spending for the remainder of Fiscal Year 2010. Our proposal would look to local school districts for their specific ideas on how to best achieve the savings, including their discretionary use of local reserve accounts and – in extreme cases – advances future State funding.

“To that end, I am recommending that we continue to carefully use our “rainy day” funds to
address some of our most immediate and pressing needs. Specifically, I’m recommending that we use almost $241 million from our reserve accounts – including the non‐endowed portion of the Millennium Fund – to address projected revenue shortfalls in the balance of Fiscal Year 2010 and in Fiscal Year 2011. That includes the $49 million that I asked you in late September to draw from the Public Education Stabilization Fund to cover the public schools portion of the tiered holdback I ordered at that time.”

Members of the press, including bloggers Betsy Russell from the Spokesman Review and Nathanial Hoffman of the Boise Weekly reported on a press briefing of the Governor’s full budget, including cuts to Idaho Public Television, the Department of Parks and Recreation and various smaller agencies.

From Russell’s Blog, Eye on Boise from Spokesman.com: “The twenty-five existing jobs at the state Department of Parks & Recreation would be eliminated as the department is abolished and combined with the state Department of Lands; however, Otter’s budget allows for keeping the Parks Department in place if non-general funds can be identified to operate it. His budget also calls for a four-year phase-out of state general funds for Idaho Public Television and six smaller agencies, including the Human Rights Commission, the Hispanic Commission, and the Digital Learning Academy. The agencies wouldn’t be eliminated; instead, they’d operate with other funds.”

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Governor Otter put forth several potential measures to mediate the budget cuts:

“I am proposing that we continue preparing for tomorrow’s work force by:
- Providing funds to handle the tremendous enrollment growth at the College of Western Idaho,
- Fully funding our commitments to cooperative medical education programs,
- Continuing to invest in the ground‐breaking work being done at the Center for Advanced Energy Studies in Idaho Falls,
- And by providing $1 million in Opportunity Scholarships to help our deserving students stay here at home to continue their education.”

And …

“We need our Idaho young people to stay here on the land. . . That’s why I’m proposing that we invest $1 million to continue implementing the Comprehensive Aquifer Management Plan that’s showing such great promise in protecting and preserving our precious water resources.

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With regard to protecting Idaho’s natural resources, the Governor gave a nod to ongoing battles with the federal government:
“I also want to congratulate Nate Fisher at the Office of Species Conservation, other State agencies, local units of government and especially the landowners who worked so well together to protect and preserve the southern Idaho desert plant known as slick spot peppergrass.
“Unfortunately, the federal government in its infinite wisdom concluded that local folks weren’t up to that task, so it imposed Endangered Species Act protections.
“Yes, the feds are casting aside the collective judgment of the people born to this land and who care most about it in favor of bureaucratic nonsense and an invitation to endless court battles.”

And ….

“I also am continuing my fight to keep the feds from using Idaho as a dumping ground for its
elemental mercury. We have worked too hard protecting the Snake River Plain Aquifer and building a strong and collaborative relationship with our partners at the Idaho National Laboratory to allow it all to be put at risk by a misguided federal decision.

“I will not allow Idaho to become the nation’s dumping ground for its elemental mercury!

“There is a similar policy‐making sleight‐of‐hand going on with the federal administration’s efforts to foist the cost of a budget‐breaking entitlement program onto our backs. The so‐called health care “reform” bills being promoted by the President’s party in Congress could add as much as half a billion dollars to Medicaid costs in Idaho."