Prudence still the best approach
January 20, 2014
By Idaho Senator Shawn Keough

As the Vice Chairman of the Senate Finance Committee, I have been faced with many tough decisions over the last few years.

Idaho continues to manage our budget in a fiscally responsible manner. Because of this, we are often criticized by groups who want more money spent on programs that they deem important.

When the economy stumbled several years ago, Legislators made a conscious decision to reduce the size of government rather than raise taxes on its citizens—that was contrary to the approach that many other states took. I supported those efforts. One need only look to the city of Detroit or the state of California, to see how negatively economies can be affected when elected leaders refuse to make difficult decisions.

In fact, according to the National Association of State Budget Officers, 29 states increased their overall net take from taxes and fees last year. Here in Idaho, we were actually able to reduce Idahoan’s taxes by $56 million over the last two years.

There is still work to do before Idaho emerges from the financial decline that started several years ago but, because of tough decisions, we are doing better than the vast majority of states. As the legislative session continues to progress, I will continue to support policies that are fiscally responsible while providing the best use of taxpayer dollars.

It is important to keep in mind that one-time money from reserve funds has been built into the state budget to help it balance each year in recent years. I have been a strong proponent of keeping these reserve accounts.

Before the recession began in 2008, Idaho had rainy-day reserves of nearly $400 million. When the economy struggled, those funds helped soften the blow and turn what could have been far more dramatic cuts into more reasonable ones.

Though the economy is improving, our rainy-day accounts are still just close to half of the previous $400 million mark —about $200 million. Budgeting funds to these accounts now is a wise move in an uncertain economic cycle. We must continue to rebuild those reserves in an effort to stave off any future downturns.

As a budget writer, I understand that there are still many needs. We will continue to work hard to balance our limited resources with the many needs of a diverse state.

The state of Idaho continues to manage our budget in a prudent fashion. I am optimistic that we will continue to see Idaho’s economy bounce back. Tough decisions have left us in good shape. There’s no reason to change our approach now.

The second week of the Legislature included continued budget hearings with the Health & Welfare, Public Health Districts, Veterans, and the Medical Catastrophic Care Fund budgets taking center stage. The other committees are getting in gear and focused on rules that state agencies have drafted to implement laws passed by the Legislature. Idaho is one of very few states that has retained and fought for the right to review, accept or reject rules written by the agencies. This helps to keep the focus on the original intent of the law.

Remember that the internet brings the work of the Legislature closer than ever! Go to www.legislature.idaho.gov to track bills introduced, committee meeting agendas and listen in or watch hearing of interest. As always, shoot me an email and let me know your thoughts, perspectives and opinions on the issues in front of our State Legislature: skeough@senate.idaho.gov.