Governor emphasizes personal responsibility, projects conservative growth rate in State of the State

Governor C.L. “Butch” Otter delivered his 5th State of the State address yesterday, citing the coming legislative session as one that is likely to be thankless, within which “there will be no moral victories.” In some cases, he said, policy decisions will be made based upon on the “least bad decision.”

At the same time, the Governor expressed confidence that Idaho will emerge from the recession “leaner and stronger.” His proposed budget projects 3% growth rate in state revenue. Still, he said, most state agencies can expect to see their budgets cut by more than 2%.

The governor repeatedly called upon Idahoans to practice personal responsibility and look for opportunities to be their “brother’s keeper,” rather than rely upon the government for support.
Otter cited what he said is a failure of federal stimulus funding to create new jobs, and touted the success of private industry in doing so in Twin Falls, Pocatello, Chubbuck, Coeur d’ Alene and Boise.

He noted that Idaho has a more efficient government now than two years ago, and that our state is in better shape than others facing a budget crisis, such as Arizona, Nevada and Oregon. The Governor highlighted what he says are examples of why this is true:

- $32 million has been saved by Corrections through efforts to hold inmate population to more than 1500 below projections
- ITD Director Brian Ness’ realignment plan he says will save $1.5 million over the next two years
- The Division of Building Safety saving $415,000 a year through such steps as sharing office space, using videoconferencing and issuing more permits online

In addition, Otter said his tax compliance initiative, which added tax auditors, is bringing in more than $1 million a month to the general fund that had previously gone uncollected.

The Governor outlined some budget strategies to address what is expected to be a $340 million shortfall, including a promise to introduce legislation that would provide tax incentives to small and developing businesses, especially those focusing on new technology and innovation. He mentioned Project 60 as an example of a private/public partnership that is helping with this effort. Project 60 is an initiative designed to grow Idaho GDP by recruiting employers to Idaho.

But while our economy is growing again, employment figures aren’t. Until unemployment figures fall, he said, “the perception that we’re in a rut will continue.” Otter noted that if every one of Idaho’s 55,000 companies “paid it forward” by hiring just one additional employee each, the impact would be tremendous. What Otter called “misguided policies like healthcare mandates employers don’t know how they’re going to pay for,” have stifled employment growth.

Otter said budget cuts implemented this year for Idaho’s public schools will stay in place, with additional funding for targeted incentives. The Governor is working with Superintendent of Public Instruction Tom Luna to implement teacher performance-based incentives, and additional math and science classes, and require college entrance exams for all juniors.

Funding for higher education, however, will not fare as well. With a shout out to the JA and Kathryn Albertson Foundation and their Go On Initiative and praise for CWI as an affordable resource for students, his said his proposed budget includes more cuts for Idaho’s colleges and universities.

With regard to federal healthcare legislation, Otter said a recent ruling on a Virginia lawsuit that finds forcing people to pay for insurance unconstitutional bodes well for Idaho. He said his administration is working with our congressional delegation to fix or repeal that legislation.

Otter closed his address noting that what he called a culture of “responsible austerity” in government must expand. Repeatedly encouraging citizens to come forth with their ideas for balancing the budget, the Governor called upon Idahoans to think of this legislative session as a family council meeting, with legislators facilitating the discussion.