>> PRESENTATION OF "IDAHO REPORTS" ON IDAHO PUBLIC TELEVISION IS MADE POSSIBLE THROUGH THE GENEROUS SUPPORT OF THE LAURA MOORE CUNNINGHAM FOUNDATION.

COMMITTED TO FULFILLING THE MOORE AND BETTIS FAMILY LEGACY OF BUILDING THE GREAT STATE OF IDAHO.

BY THE FRIENDS OF IDAHO PUBLIC TELEVISION, AND BY THE CORPORATION FOR PUBLIC BROADCASTING.

>> IT'S THE FIST WEEK BACK AT THE STATE HOUSE, AND LAWMAKERS ARE ALREADY PUSHING FOR BIG INCOME TAX CUTS.

>> MEANWHILE, THE COVID-19 OMICRON VARIANT IS SPREADING ACROSS THE STATE >> I'M LOGAN FINNEY, FILLING IN FOR MELISSA DAVLIN "IDAHO REPORTS" STARTS NOW.

>> HELLO, AND WELCOME TO "IDAHO REPORTS."

THIS WEEK HOUSE SPEAKER SCOTT BEDKE AND ASSISTANT MINE ORBIT LEADER LAUREN NECOCHEA JOIN ME TO DISCUSS TAX POLICY AND THE START OF THE 2022 LEGISLATIVE SESSION.

>> BUT FIRST, THE ON THURSDAY, THE U.S. SUPREME COURT ISSUED AN OPINION STOPPING THE BIDEN ADMINISTRATION'S MANDATE OF EITHER COVID VACCINATIONS OR WEEKLY TESTING FOR ALARM EMPLOYERS.

THE COURT DID, HOWEVER, ALLOW A VACCINE MANDATE FOR NEARLY ALL HEALTHCARE PROVIDERS IN THE COUNTRY WHICH RECEIVE FEDERAL MEDICARE OR MEDICAID FUNDING.

THAT MANDATE DOES ALLOW FOR MEDICAL AND RELIGIOUS EXEMPTIONS FOR THOSE EMPLOYEES.

>> GOVERNOR BRAD LITTLE AND ATTORNEY GENERAL LAWRENCE JUAN ALVAREZ DECENT RELEASED A JOINT STATEMENT PRAISING THE DECISION TO STRIKE DOWN THE MANDATE, ADDING, QUOTE -- WE'RE DISAPPOINTED THE COURT NARROWLY UPHELD BIDEN' VACCINE MANDATE ON HEALTHCARE WORKERS BECAUSE IT INTENSIFIES A PROBLEM CONFRONTING OUR COUNTRY.

WE ALREADY HAVE A SHORT SUPPLY OF HEALTHCARE WORKERS AVAILABLE TO HANDLE THE PANDEMIC.

>> ON TUESDAY THE DEPARTMENT OF HEALTH AND WELFARE TOLD REPORTERS AN OMICRON-DRIVEN SURGE IS EXPRESSING HOSPITALS, PARTLY BECAUSE OF SO MANY HEALTHCARE WORKERS CALLING IN SICK.

LOCAL PUBLIC HEALTH DISTRICT ARE OVERWHELMED WITH TESTS, AND AS OF THURSDAY, THE STATE HAD A BACKLOG OF NEARLY 18,000 POSITIVE TESTS THAT HADN'T YET BEEN PROCESSED.

>> AT THIS INCIDENCE RATE, IDAHO WOULD RANK BETWEEN 20-25th IN THE UNITED STATES WHEN COMPARED TO OTHER STATES.

THAT RANGES BECAUSE THERE MIGHT BE BIAS IN OUR LABORATORY DATA THAT'S RAU >> OUR MOST RECENT DATA INDICATE 88% OF THE INFECTIONS ARE CAUSED BY THE ONLY CURRANT VARIANT.

WE UNDERSTAND INFECTION WITH THIS VARIANT APPEARS TO CAUSE LESS SEVERE DISEASE THAN THE VARIANTS WE HAVE BEEN FACED WITH BEFORE.

HOWEVER, EVEN IF OMICRON WERE, LET'S SAY HALF AS LIKELY TO CAUSE SEVERE DISEASE, AND I'M NOT SAYING THAT'S THE TRUTH, I'M JUST -- THEORETICALLY, IF IT IS SPREADING TWICE AS MUCH AS THE DELTA VARIANT, WE COULD VERY WELL BE RIGHT BACK WHERE WE WERE LAST FALL WITH THE SAME PRESSURE ON OUR HEALTHCARE SYSTEM THAT SENT US INTO CRISIS STANDARDS OF CARE >> IN THOSE CONVERSATIONS, THERE HAVE BEEN ACTIVE CONVERSATIONS RELATIVE TO CRISIS STAND OF CARE.

AND SO IT WOULD NOT SURPRISE ME TO SEE US GO BACK INTO CRISIS STANDARDS OF CARE.

IF SO, IT'S PROBABLY GOING TO BE DRIVEN BY STAFFING IN ADDITION TO INCREASE IN HOSPITAL PATIENTS.

>> THE STATEWIDE TEST POSITIVITY RATE BROKE AN ALL-TIME RECORD HIGH LAST WEEK, AT 25.7%.

THAT VARIES BY REGION, WITH 27 BERS IN NORTH IDAHO'S PANHANDLE HEALTH DISTRICT, 26% IN CENTRAL DISTRICT HEALTH, AND 31% IN EASTERN IDAHO I PUBLIC HEALTH DISTRICT.

HOSPITALIZATIONS ARE ALSO GOING UP, THOUGH NOT AS RAPIDLY.

WE HAVE MUCH MORE ABOUT THE TESTING BACKLOG ONLINE AND YOU'LL FIND THAT LINK AT IDAHOPTV.ORG/IDAHOREPORT.

AND I'LL FIND YOUR COVERAGE OF FRIDAY'S IDAHO SUPREME COURT HEARINGS ON CHALLENGES TO THE STATE'S REDISTRICTING MAPS >> ON MONDAY GOVERNOR BRAD LITTLE KICKED OFF THE LEGISLATIVE SESSION WITH HIS STATE OF THE STATE ADDRESS, FOCUSING ON EDUCATION, TAXES, AND INFRASTRUCTURE.

>> THAT'S WHY I PROPOSE MAKING THE LARGEST INVESTMENT IN IDAHO EDUCATION EVER.

MY BUDGET ADDS 1.1 BILLION DOLLARS OVER THE NEXT FIVE YEARS TO IMPROVE IDAHO EDUCATION.

[APPLAUSE] AND IT WILL STARTS WITH LITERACY.

TODAY I PROPOSE ADDING $47 MILLION IN ONGOING FUNDING TO LITERACY PROGRAMS, TO BUILD ON THE READING SUCCESS THAT PARENTS INSTILL AT HOME.

LOCAL SCHOOL DISTRICTS ACROSS IDAHO, WITH INPUT FROM FAMILIES, WILL DECIDE HOW BEST TO DEPLOY THE RESOURCES.

LITERACY HAS BEEN MY TOP PRIORITY BECAUSE IT JUST MAKES SENSE.

OUR INVESTMENTS IN EDUCATION LATER ON WILL HAVE MORE IMPACT IF WE CAN WORK WITH FAMILIES TO GET MORE STUDENTS READING PROFICIENTLY EARLY ON.

TOGETHER, WE HAVE GIVEN BACK NEARLY $1 BILLION TO IDAHOANS THROUGH INCOME TAX RELIEF, PROPERTY TAX RELIEF, AND RELIEVE FROM UNEMPLOYMENT TAXES ON IDAHO BUSINESSES.

TODAY I AM PROPOSING WE DOUBLE DOWN ON OUR EFFORTS.

I PROPOSE WE RETURN MORE THAN $1 BILLION IN INCOME TAX RELIEF TO IDAHO TAXPAYERS OVER THE NEXT FIVE YEARS.

I PROPOSE $350 MILLION IN IMMEDIATE REBATES, AND $250 MILLION IN ONGOING INCOME TAX RELIEF, ALLOWING WORKING FAMILIES TO KEEP MORE OF WHAT THEY EARN, AND FREE THEM FROM THE PENALTY OF LIVING UNDER HISTORIC INFLATION.

THE CONTINUED PROSPERITY OF OUR FARMERS, RANCHERS, THE FOLKS WHO WORK IN THE WOODS DEPENDS ON SAFE, EFFICIENT SYSTEM OF ROADS AND BRIDGES.

WE CANNOT CONTINE OUR RECORD ECONOMIC TRAJECTORY IF OUR LOGGING TRUCKS CAN'T GET ACROSS OLD BRIDGES, IF WE CAN'T GET OUR FARM PRODUCTS TO MARKET.

MY BUDGET INVESTS ANOTHER $200 MILLION IN ONGOING FUNDING TO FULLY ADDRESS OUR KNOWN MAINTENANCE NEEDS LOCALLY AND STATEWIDE.

I ALSO PROPOSE WE INVEST ANOTHER $200 MILLION IN ONE-TIME FUNDING TO CLEAR OUT ONE-THIRD OF THE BACKLOG OF DEFICIENT BRIDGES.

WE HAVE A ONCE-IN-A-LIFETIME OPPORTUNITY TO FULLY FUND KNOWN NEEDS, TO MAINTAIN OUR ROADS AND BRIDGES PERMANENTLY, WITH NO NEW TAXES.

>> DEMOCRATIC LEADERSHIP IN A PRESS CONFERENCE AFTER THE ADDRESS, AGREED THEY WERE HAPPY TO SEE ALSO'S ATTENTION TO EDUCATION, BUT BELIEVE THERE IS MORE THE STATE COULD BE DOING.

>> STRONG AND SUCCESSFUL COMMUNITIES START WITH OUR CHILDREN'S SCHOOLS.

AND POWERING FAMILIES WITH DEVICES AND BROADBAND IS A START.

BUT SCHOOL DISTRICTS AND TEACHERS DESPERATELY NEED RESOURCES IN THE CLASSROOM TOO.

TO ENSURE FACILITIES ARE SAFE AND FUNCTIONAL, AND CHILDREN RECEIVE AN EXCELLENT EDUCATION NO MATTER WHERE THEY LIVE.

>> BUT FIRST I WANT TO CORRECT THE NOTION OF A BUDGET SURPLUS THAT THE GOVERNOR REFERENCED.

THIS MONEY WAS GENERATED BY SYSTEMICALLY UNDERFUNDING VITAL SERVICES.

THE GOVERNOR SUGGESTED WE LOOK AT THE STATE BUDGET AS MUCH AS WE WOULD LOOK AT A HOUSEHOLD BUDGET.

IF YOU HAVEN'T PAID YOUR MORTGAGE OR YOUR UTILITY BILLS, YOU MAY APPEAR TO HAVE A LOT OF MONEY IN YOUR CHECKING ACCOUNT.

BUT YOU WOULD NOT CALL THAT A TRUE SURPLUS OR YOU CERTAINLY WOULDN'T CALL IT A SIGN OF RESPONSIBLE MANAGEMENT.

AND THAT'S EXACTLY WHAT'S HAPPENING HERE.

IDAHO HAS A LOT OF MONEY IN THE BANK ACCOUNT RIGHT NOW, BUT IT'S IN LARGE PART DUE TO IRRESPONSIBLE DECISION MAKING BY POLITICIANS.

WHERE CHILDREN AND WORKING FAMILIES HAVE BEEN LEFT TO PAY THE PRICE.

WE REMAIN LAST IN PER PUPIL EDUCATION INVESTMENT IN AMERICA, WE ARE STILL ONE OF ONLY FOUR STATES IN AMERICA WITH NO EARLY CHILDHOOD EDUCATION, AND THESE ARE NOT WITHOUT CONSEQUENCE.

THEY'VE CONTRIBUTED TO ALARMING DETERIORATION IN OUR EDUCATION OUTCOMES, WHERE WE'RE SEEING REAL DROPS IN LITERACY AND PERFORMANCE SCORES AND GRADUATION RATES.

OUR LACK OF AFFORDABLE CHILDCARE IS CREATING A WORKFORCE CRISIS, WE HAVE A FOSTER CARE SYSTEM ON THE BRINK OF COLLAPSE DUE TO UNDERFUNDING.

WE HAVE AS THE SENATOR MENTIONED, OVER 1500 BRIDGES IN NEED OF REPAIR, AN ESTIMATED COST OF OVER $2 BILLION.

A MAJOR HOUSING CRISIS AND A COME MEETLY UNFUNDED AFFORDABLE HOUSIN TRUST FUND, WHICH UNFORTUNATELY FROM WHAT I HEARD IN THE GOVERNOR'S SPEECH, IS TO REMAIN UNFUNDED UNDER HIS PROPOSED BUDGET.

>> SOME CONSERVATIVE LAWMAKERS HELD A PRESS CONFERENCE PRIOR TO THE STATE OF THE STATE, OUTLINEUPING SOME OF THEIR SESSION PRIORITIES.

>> SOMETHING I PROBABLY RECEIVED THE MOST LETTERS AND CONTACTS LATELY IS ON THE PROPERTY TAXES, BECAUSE PEOPLE JUST RECEIVED THEIR BILLS.

I HAVE A LEARN FROM ONE OF MY CONSTITUENTS THAT REPRESENTS SEVERAL CONTACTS THAT I'VE RECEIVED, AND SHE TALKS ABOUT HOW HER PROPERTY TAXES ARE GOING UP, SHE'S 70 YEARS OLD, SHE'S ON A FIXED INCOME.

SHE WAS RAISED IN THIS AREA OF JEFFERSON COUNTY.

AND SHE SAYS "I'M PAINTING A PICTURE FOR YOU TO ASK THAT YOU BEGIN WORKING ON SOME REAL PROPERTY TAX RELIEF.

NOT JUST A BAND-AID FOR A YEAR OR TWO, THE SYSTEM IS BROKEN.

AND PEOPLE NEED TO START THINKING OUTSIDE THE BOX ON HOW TO FUND ENTITIES WITHOUT BREAKING THE BACKS OF THE RESIDENTS."

I DO WANT TO TALK ABOUT WHAT HAPPENED AT THE WINTER MEETING FOR THE STATE GOP.

THERE WAS A RESOLUTION, NUMBER 13, THAT WAS PASSED BY THE BODY THAT SAID THAT WE WOULD DO A FORENSIC AUDIT IN THE STATE OF IDAHO.

AS SERVING AS THE LIAISON BETWEEN THE STATE GOP AND LEGISLATURE, I'M ANXIOUS TO GET THAT BILL MOVING AND GET IT THROUGH BOTH CHAMBERS AND SIGNED BY THE GOVERNOR.

OTHER ISSUES WITH ELECTION INTEGRITY THIS SESSION WILL DEAL WITH GOVERNMENT-ISSUED I.D., BALLOT HARVESTING, AND MANY OTHER DIFFERENT ASPECTS OF ELECTION INTEGRITY THAT HAVE BEEN REVEALED OVER THE PAST FEW YEARS.

>> TWO OF MY PRIORITIES WILL BE THE SESSION, TO WORK ON MANDATE REGARDING THE SHOT, OR THE VACCINE, WE HAVE PEOPLE THAT ARE STILL CONTACTING US FROM ALL OVER THE STATE THAT ARE LOSING THEIR JOBS, THAT ARE LOSING THEIR INCOMES, THAT ARE LOSING THEIR HARD WORK THAT THEY HAVE PUT IN, THE HOURS AND HOURS OF TIME THEY'VE GIVEN TO THESE COMPANIES TO BE ABLE TO LOSE THEIR JOBS NOW OVER A MANDATE.

SO THAT WILL BE ONE THING WE'LL BE BRINGING BACK AGAIN.

THE OTHER ONE IS SCHOOL CHOICE.

WE'RE HEARING FROM PARENTS ALL OVER THE STATE THAT WANT SCHOOL CHOICE, THEY WANT THE OPPORTUNITY TO BE ABLE TO HAVE THE OPTIONS FOR THEIR CHILDREN'S EDUCATION, WE NEED TO BE FUNDING STUDENTS AND NOT SYSTEMS.

AND SO SCHOOL CHOICE IS ALSO GOING TO BE A PRIORITY.

WE WANT TO BE ABLE TO SEE PARENTS EDUCATE THEIR THE KIDS THEY FEEL IS THE BEST WAY, BECAUSE IT'S NOT A ONE-SIZE-FITS-ALL.

NO CHILD SHOULD BE TOLD THEY HAVE TO LEARN A CERTAIN WAY, AND IF THEIR SCHOOLS ARE NOT PERFORMING PARENTS SHOULD HAVE THOSE OPTIONS TO SEND THEM SOMEWHERE ELSE >> I'M JOINED BY HOUSE SPEAKER SCOTT BEDKE AND HOUSE ASSISTANT MINORITY LEADER LAUREN NECOCHEA.

THANK YOU TWO FOR JOINING ME TODAY.

LET'S START WITH THE FIRST BIG BILL THAT'S BEEN INTRODUCED THIS SESSION, WHICH IS HOUSE BILL 436, AN INCOME TAX CUT AND INCOME TAX REBATE.

SPEAKER BEDKE, CAN YOU WALK ME THROUGH THIS PROPOSAL FROM YOUR PARTY?

>> YES.

THIS IS A PRETTY SIMPLE BILL PATTERNED AFTER THE BILL WE DID LAST YEAR.

IT DOES TWO THINGS.

NUMBER ONE, IT LOWERS THE TOP BUT LOWERS ALL THE INCOME TAX RATES DOWN TO 6%, AND THE CORRESPONDING FOUR SOMETHING, THREE SOMETHING, AND ONE SOMETHING.

IN IDAHO YOU ARE IN THE TOP BRACKET IF YOU MAKE A LITTLE OVER $11,000, SO WE ARE ALL IN THE TOP BRACKET.

SO THIS IS IMMEDIATE TAX RELIEF TO ALL IDAHOANS.

IN ADDITION TO THAT, AND THE COST OF THAT IS APPROXIMATELY $250 MILLION.

IT WOULD BE TURNED BACK THROUGH THE INCOME TAX PROCESS.

IN ADDITION, THERE'S APPROXIMATELY $350 MILLION THAT WILL BE RETURNED DIRECTLY TO TAXPAYERS.

SO FOR YOU AND EVERY DEPENDENT YOU CLAIM, YOU'LL GET $75 OR 12% OF THE AMOUNT THAT YOU PAID BACK IN 2020, WHICHEVER IS MORE, AND THAT WILL BE THE BASIS OF THE REBATE.

SIMILAR TO LAST YEAR, LAST YEAR IT WAS THE -- IT WAS 9% OF WHAT YOU PAID THE PREVIOUS YEAR.

THIS YEAR WE HAVE MORE MONEY, AND THEREFORE WE NEED TO GIVE MORE BACK TO IDAHO'S TAXPAYERS, SO IT'S 12% OF WHATEVER YOU PAID THE PREVIOUS YEAR AS A DIRECT REBATE.

AND SO I THINK THAT'S -- THAT TELLS US A COUPLE THINGS.

NUMBER ONE, OUR STATE ECONOMY IS DOING VERY WELL.

ALL OF THE ECONOMIC AK TIT THAT IS HAPPENING OUT THERE HAS FOUND ITS WAY THROUGH THE TAX CODE, AND BACK TO THE TREASURY, AND IY THAN WE HAVE SPENT ON THE BUDGETS.

SO WE WANTED TO GET THIS -- THERE'S LITTLE OPPOSITION ON THIS, AND WE WANTED TO GET IT MOVING EARLY IN THE SESSION.

SOMETIMES THESE TAX BILLS BECOME A POINT OF CONTENTION AT THE END OF THE SESSION.

WE DON'T WANT THIS.

THERE'S GENERAL AGREEMENT, IDAHO IS DOING WELL, LET'S RETURN THE MONEY TO THE TAXPAYERS, AND WE'LL GO AHEAD THAT WAY.

SO I THINK THIS IS A PRETTY EXCITING DAY FOR THE STATE.

WE HAVE BACK-TO-BACK, YEAR-TO-YEAR RECORD -- LAST YEAR WAS THE BIGGEST TAX CUT IN STATE HISTORY.

AND THIS ONE, IF WE'RE SUCCESSFUL, GETTING IT THROUGH THE PROCESS AND TO THE GOVERNOR'S DESK, BEAT LAST YEAR'S.

BEFORE WE LEAVE THIS SUBJECT, EVERYONE EXPECTED IDAHO TO BE IN AT LEAST A -- IF WE HAD THIS CONVERSATION TWO YEARS AGO, AHEAD OF THE PANDEMIC, WE WOULD HAVE PREDICTED A MILD RECESSION, NOTHING LIKE THESE TYPES OF REVENUES COMING BACK INTO THE STATE.

I THINK IT'S AN INDICATOR OF HOW HARD WORKING IDAHOANS ARE, YEAH, THEY WERE THROWN -- THERE'S SOME ADVERSITY, BUT THEY WORKED THROUGH IT AND OUR ECONOMY IS RESPONDING, AND IT'S JUST -- IT JUST MAKES IDAHO ONE OF THOSE STATES YOU WANT TO MOVE TO.

>> WE'VE BEEN SEEING A LOT OF THAT.

AND REPRESENTATIVE NECOCHEA, YOU SIT ON THE TAX COMMITTEE AND YOU VOTED AGAINST INTRODUCING THIS BILL WHEN IT WAS HEARD IN COMMITTEE.

WHAT WAS YOUR RATIONALE FOR THAT?

>> WELL, IT'S CORRECT THIS IS BASICALLY A REPEAT OF THE BILL FROM LAST YEAR.

SO WE'RE AGAIN USING THOSE DOLLARS THAT WE HAVE SITTING ON THE BOTTOM LINE AND SENDING THEM OUT TO CORPORATIONS AND IN WAYS WHERE YOU EARN THE MORE YOU GET.

AND LAST YEAR'S BILL, IF YOU WERE A SINGLE PERSON EARNING $25,000, YOU GOT AN ONGOING TAX CUT OF $42 A YEAR THROUGH H, IF YOU MADE HALF A MILLION, AND THAT'S -- IT'S LOPSIDED, ESPECIALLY WHEN YOU LOOK AT WHAT REGULAR IDAHOANS ARE STRUGGLING WITH RIGHT NOW.

MORTGAGES ARE GETTING MORE EXPENSIVE, RENT IS GETTING MORE EXPENSIVE, AND PROPERTY TAXES ARE GETTING A LOT MORE EXPENSIVE.

SO THIS PROPOSAL SWEEPS A LOT OF MONEY OFF THE TABLE AND CLOSES DOORS TO OPPORTUNITIES WE WANT TO HAVE, LIKE ADDRESSING PROPERTY TAXES.

OR HAVING A DISCUSSION HAS BEEN DELAYED FOR A LONG TIME AROUND THE SALES TAX ON GROCERIES.

WE ARE AT A POINT TODAY WHERE WE CAN LOOK AT THAT SERIOUSLY WITHOUT THREATENING VITAL SERVICES LIKE MEDICAID, AND WE CAN LOOK AT IT IN DOING WAYS THAT DON'T HURT LOW-INCOME PEOPLE.

OUR GROCERY TAX CREDIT HAS BEEN STATIC FOR YEARS, AND SO NOW PEOPLE ARE PAYING MORE ON GROCERIES THAN THEY'RE RECEIVING IN THE CREDIT BECAUSE GROCERY PRICES GO UP OVER TIME, AND THE TAX CREDIT HAS BEEN FROZEN.

SO THIS IS NOT THE TAX -- IDAHOANS ARE ASKING FOR, AND THAT'S WHY I COULDN'T VOTE TO INTRODUCE IT, BECAUSE IT'S GOING TO CLOSE THE DOOR ON OTHER OPPORTUNITIES IF WE SPEND THE REVENUE THIS WAY.

>> LET'S BE CLEAR ON A COUPLE OF THINGS RIGHT THERE.

NUMBER ONE, THE STATE DOES NOT COLLECT, NOR SET THE BUDGETS FOR PROPERTY TAXES.

AND SO THE BILL WE PASSED LAST YEAR PROVIDED IMMEDIATE PROPERTY TAX RELIEF BY RAISING THE HOMEOWNERS EXEMPTION BY 25%.

AND SO THIS WHOLE -- WE HAVE BEGGED FOR TWO YEARS FOR THE LOCAL UNITS OF GOVERNMENT TO COME WITH A PROPOSAL TO HELP FIX THIS, BECAUSE THE BALL IS IN THEIR COURT.

THEY MAKE THE DECISIONS IN THIS AREA.

LET'S TALK ABOUT THE GROCERY TAX.

THE SALES TAX YOU PAY ON FOOD RIGHT NOW, YOU AND YOUR FAMILY, YOU GET THAT MONEY BACK IN AN INCOME TAX CREDIT.

LET'S ALSO BE CLEAR THAT IF WE REMOVE THE SALES TAX ON THE FOOD, IF THERE WERE BENEFITS TWO DEMOGRAPHICS.

NUMBER TWO, TOURISTS, OUT OF STATERS, AND NUMBER TWO, PEOPLE WHO DON'T PAY TAXES.

SO THIS IDEA OF USING THE TAX CODE TO REDISTRIBUTE THE MONEY IS NOT GOOD REPUBLICAN POLICY, AND WE'LL NEVER SUPPORT THAT.

>> I WAS GOING TO RESPOND TO WHAT REPRESENTATIVE NECOCHEA SAID ABOUT THE INCOME TAX CUT.

MEMBERS OF THE REPUBLICAN PARTY WOULD SAY, THE PEOPLE WHO EARN MORE MONEY ARE PAYING MORE IN INCOME TAXES, SO IT WOULD MAKE SENSE THEY WOULD RECEIVE MORE BACK FROM THE CUT.

REPRESENTATIVE, IF THAT'S THE CASE, HOW WOULD YOUR PARTY PREFER TO SEE THE INCOME TAX STRUCTURE CHANGED?

>> WELL, I HAVE A LOT TO SAY ABOUT THAT.

WE'RE USING ONLINE SALES TAX DOLLARS TO FUND THIS INCOME TAX CUT.

LET'S BE CLEAR ABOUT THAT.

WHEN YOU LOOK AT OUR STATE AND WHO TAXES, SALES TAX AND PROPERTY TAX, AND INCOME TAX, YOU SEE A FEW THINGS ABOUT HOW THOSE TAXES ARE DISTRIBUTED.

WHEN IT COMES TO SALES TAX AND PROPERTY TAX, LOWER AND MODERATE INCOME PEOPLE PAY A LARGER SHARE OF THEIR INCOME TO COVER THOSE TAXES.

NOW, OUR INCOME TAX HELPS, IT DOESN'T GO ALL THE WAY, BUT HELPS BY ASKING PEOPLE AT THE TOP OF THE INCOME SPECTRUM TO PAY A LITTLE MORE, A LITTLE HIGHER PERCENTAGE OF THEIR INCOME THAN PEOPLE AT THE BOTTOM OF THE INCOME SPECTRUM.

WHEN WE KEEP LOWERING AND LOWERING THE INCOME TAX, WE JUST MAKE THAT EVEN MORE LOPSIDED AND WE'RE ASKING LOWER AND MODERATE INCOME PEOPLE TO PAY A LARGER SHARE OF THEIR INCOME AND TAXES, AND THAT'S NOT GOOD -- IT'S NOT POPULAR FOR IDAHOANS, NO IDAHOANS ARE ASKING ME FOR THIS CUT AND CORPORATE TAX CUT, BUT IT'S NOT GOOD ECONOMIC POLICY.

WE NEED MORE DOLLARS INTO THE HANDS OF MIDDLE CLASS PEOPLE.

THEY GET THEIR OIL CHANGED, HAIRCUT, THEY BUY THEIR GROCERIES IN THEIR COMMUNITIES THAT POWERS SMALL BUSINESSES AND LEADS TO A VIBRANT ECONOMY.

>> EVERY SMALL BUSINESS IN THE STATE OF IDAHO WILL RECEIVE THIS TAX CUT, THEY WILL RECEIVE THIS REBATE, 85% OF ALL BUSINESSES IN IDAHO ARE SMALL AND ARE PASS-THROUGH ENTITIES.

THEY WILL RECEIVE THIS REBATE JUST THE SAME AS THE SCHOOL TEACHER, THE PLUMBER, OR WHOMEVER.

THIS IS -- LET'S JUST LOOK AT IT.

WE HAVE CREATED A VERY POSITIVE BUSINESS CLIMATE HERE IN THE STATE OF IDAHO.

AND THE PROOF IS IN THE PUDDING.

OUR ECONOMY IS DOING WELL.

THE FOUNDATIONS THAT WE'VE LAID IN THE PREVIOUS YEARS ARE WORKING, AND WE NEED TO LOOK NO FURTHER THAN THE SURPLUSES FOR EXHIBIT A.

IT'S WORKING, LET'S NOT MESS IT UP.

>> I THINK -- ONE QUICK THING.

YOU'RE RIGHT, THE ECONOMY IS GREAT.

WHY DO WE NEED TO CUT THE CORPORATE TAX RATE FOR PROFITABLE CORPORATIONS?

80% OF THOSE DOLLARS ARE GOING TO FLY OUT OF THE STATE.

THEY DON'T FUEL OUR ECONOMY.

I JUST DON'T SEE HOW THAT HELPS US BUILD A STRONG MIDDLE CLASS >> IF I'M ONE OF THOSE CORPORATIONS AND I'M NOT PAYING TAXES IN IDAHO, I'M HIRING IDAHOANS AND GIVING THEM A GOOD-PAYING JOB HERE IN IDAHO.

IT'S A GOOD MIX OF SMALL AND LARGE HERE, AND WE'VE GOT SOMETHING GOOD GOING HERE.

>> REPRESENTATIVE NECOCHEA, YOU AND I DID AN INTERVIEW ABOUT HOUSE BILL 389 A YEAR AGO.

HOW DO YOU THINK THINGS HAVE GONE?

>> POORLY.

THERE WERE A COUPLE GOOD THINGS IN THE BILL, MODEST INCREASES IN PROPERTY TAXES FOR SENIORS, BUT THAT WAS PAID FOR BY CUTTING SOME SENIORS OUT OF THE PROGRAM, AND IT WAS I THINK AN INCREASE OF A MAXIMUM AMOUNT OF ASSISTANCE BY $180, AND THAT'S NOT ENOUGH.

THE SPEAKER MENTIONED THE INCREASE IN THE HOMEOWNERS EXEMPTIONS FROM 100,000 TO 125,000, THAT DIDN'T COVER EVEN -- EVEN COVER A YEAR OF HOUSING PRICE GROWTH WHERE I LIVE.

SO MY CONSTITUENTS STILL SAW THEIR PROPERTY TAXES GO UP SUBSTANTIALLY, AND THAT WOULD HAVE BEEN TRUE EVEN IF LOCAL BUDGETS DID NOT MAKE ADJUSTMENTS FOR INFLATION.

AND WE ARE SEEING NEW PROBLEMS THAT WE ANTICIPATED THAT LOCAL GOVERNMENT SAID WOULD BE THE CASE, AND WE -- AND THEY WEREN'T LISTENED TO.

SMALL TOWNS THAT MIGHT WANT TO GROW AND BUILD NEW HOUSING, NOW FACE THIS HARSH 8% CAP ON HOW THEY CAN GROW THEIR BUDGETS TO PROVIDE SERVICES.

SO THERE'S A SMALL TOWN OF GREENLY, THEY WANTED TO COME IN AND BUILD A WHOLE NEW BUNCH OF HOUSES, HOUSES WE NEED DESPERATELY IN THIS VALLEY, THAT WOULD HAVE INCREASED THEIR TAXABLE VALUE BY OUT A THIRD, AND TO -- AND THEY WOULD HAVE TO INCREASE THEIR CONTRACT FOR LAW ENFORCEMENT SERVICES ACCORDINGLY ABOUT THAT AMOUNT.

THEY HAD TO DISCONTINUE TALKS ABOUT THIS DEVELOPMENT BECAUSE THEY -- THEY WERE GOING TO FACE AN 8% CAP AND THEY WOULDN'T BE ABLE TO PROVIDE ADEQUATE DISEMPOWERMENT EMERGENCY RESPONSE.

SO WE'RE CONSTRAINING OUR ABILITY TO MAKE GROWTH PAY FOR ITSELF, DELIVER THE HOUSING AND THE HOMES AND THE ECONOMIC GROWTH OPPORTUNITIES THAT ARE SMALL -- I THINK THIS WAS PROBABLY DESIGNED TO TRY TO PUNISH LARGER CITIES, BUT IT'S HITTING SMALL CITIES, AND WE JUST SHOULD HAVE TAKEN THAT INTO ACCOUNT.

THE OTHER THING I'LL MENTION IS THAT IF WE HAD -- IF -- IN 2016, CAPPED THE HOMEOWNERS EXEMPTION, IT NEEDS TO GO UP WITH HOUSING PRICES, THEY CAPPED IT AT 100,000, IF THE HAD NOT DONE THAT, TODAY THE HOMEOWNERS EXEMPTION WOULD BE WORTH 175,000.

THIS LAST BILL ONLY LET IT GO UP TO 125,000, AS THE SPEAKER MENTIONED THAT'S A 25% INCREASE.

MEANWHILE, THAT SAME BILL INCREASED THE PROPERTY TAX EXEMPTION FOR BUSINESS EQUIPMENT BY I THINK MORE THAN DOUBLING IT.

SO THIS IS A QUESTION OF OUR PRIORITIES, THE TAX SHIFT ON TO HOMEOWNERS IS A BOON FOR COMMERCIAL PROPERTY OWNERS THAT ARE SEEING IN MANY PLACES THEY'RE PAYING LESS AND LESS IN PROPERTY TAXES EVERY YEAR.

AND WE JUST NEED TO GET TO A STABLE BALANCE THAT'S PREDICTABLE, AND WE CAN'T KEEP PUTTING IT, SHIFTING THE LOAD ONTO HOMEOWNERS >> LET'S LOOK AT THE HARD NUMBERS, LOGAN.

STATEWIDE, THE PROPERTY TAXES WELL, THEY ONLY ROSE BY THREE OR 4% LAST YEAR.

SO LOCAL GOVERNMENTS HAVE HEARD THE CRY FROM THE CONSTITUENTS, THEY PRUDENTLY PLUGGED IN SOME OF THIS FEDERAL MONEY INTO THEIR BUDGETS, AND THEY HAVE LEVELED OFF THE RATE OF GROWTH.

SO THAT'S ALL TO THE GOOD.

I THINK EVERYBODY IS OPERATING IN GOOD FAITH HERE AND WANTS TO SOLVE THE PROBLEM.

I DON'T THINK THIS IS ABOUT CREATING BIG GROUPS OF WINNERS OR LOSERS.

BUT IT -- WHAT WE HAVE IS A SYSTEM THAT WE'VE HAD FOR DECADES, BE THAT IS ILL-EQUIPPED TO RESPOND WHEN WE HAVE THIS TYPE OF APPRECIATION IN HOME VALUES.

>> THERE HAS BEEN AN INTERIM COMMITTEE THAT'S WORKING ON THESE ISSUES.

MR. SPEAKER, HAVE YOU HEARD FROM YOUR CAUCUS ANY RUMBLINGS OF WHAT SORT OF PROPERTY TAX BILLS WE COULD EXPECT TO SEE THIS SESSION?

>> WELL, I THINK THEY WILL BE THE USUAL.

I THINK THEY'LL -- THERE WILL BE A PUSH, AND I IMAGINE IT WILL BE AT LEAST SOMEWHAT SUCCESSFUL TO RAISE THE HOMEOWNERS EXEMPTION.

KEEP IN MIND, WHEN YOU HAVE THAT INDEX, WE TOOK IT OFF THE INDEX WHEN -- DURING THE GREAT RECESSION WHEN EVERYTHING WAS GOING DOWN, AND THAT DROVE THE HOMEOWNERS EXEMPTION DOWN AS WELL.

AND THEN WE PUT IT ON AND THEN WE HAVE BEEN RAISING IT AS NEEDED.

AND I THINK IT'S NEEDED.

I MEAN, THE POINT THAT REPRESENTATIVE NECOCHEA MADE, THAT'S NOT LOST ON ANYONE.

NONE OF US LIKE TO PAY PROPERTY TAXES.

SO I THINK THAT'S AN IDEA THAT'S KICKED AROUND >> UNFORTUNATELY WE CAN'T TALK ABOUT THIS FIRST WEEK OF THE LEGISLATURE WITHOUT TALKING ABOUT COVID.

THERE HAVE BEEN MULTIPLE LAWMAKERS WHO HAVE TESTED POSITIVE.

AND WE HAD A COUPLE OF GUESTS FOR THE SHOW THIS WEEK THAT HAD TO CANCEL ON US BECAUSE THEY'RE FEELING UNDER THE WEATHER.

REPRESENTATIVE NECOCHEA, DO YOU HAVE CONCERNS ABOUT THE POSSIBILITY OF A LARGER OUTBREAK AT THE CAPITOL?

>> I AM CONCERNED ABOUT SAFETY AROUND THIS BUILDING.

I CAN'T RECOMMEND ANYONE COMING DOWN HERE CERTAINLY RIGHT NOW, AND THAT'S WHY IT'S SO IMPORTANT THAT WE HAVE REMOTE TESTIMONY AVAILABLE U.

WE PUT PUBLIC DOLLARS INTO PROVIDING THIS TECHNOLOGY AND GETTING IT SET UP LAST YEAR, SO THERE'S NO REASON FOR ANY COMMITTEE TO NOT BE ALLOWING IDAHOANS TO PARTICIPATE, NOT ONLY SO THEY CAN STAY HEALTHY, BUT PEOPLE FROM COEUR D'ALENE AND POCATELLO AND ACROSS THE STATE SHOULD HAVE THE ABILITY TO PARTICIPATE.

TO BOISE TO DO THAT.S DRIVE DOW- SO I HOPE THAT OUR COMMITTEE CHAIRS WILL MAKE THAT CHANGE.

>> THE DIRECTION FROM THE SPEAKER OF THE HOUSE TO THE COMMITTEE CHAIRS IS TO ACCOMMODATE PEOPLE FROM OUT OF THE BUILDING.

AS BEST THEY CAN.

AND THIS IDEA THAT WE ARE NOT ALLOWING REMOTE TESTIMONY, I DON'T KNOW WHERE THAT CAME FROM.

I HAVE A GOOD IDEA, BUT IT IS NOT ACCURATE.

WE WILL -- WE HAVE, AS THE GOOD REPRESENTATIVE SAID, WE HAVE ALL THIS TECHNOLOGY, WE'VE INVESTED IN IT, AND WE'RE GOING TO USE IT.

AND WE'VE GOT OUR CHAIRS, VICE CHAIRS, AND THE COMMITTEE MEMBERS TRAINED SO THAT THEY CAN DO THAT.

SO LET'S PUT THAT ONE TO BED WITH THIS STATEMENT.

WE WILL BE ALLOWING REMOTE TESTIMONY.

>> WHAT ARE THE CHANCES OF THIS SESSION SEEING A MULTIWEEK RECESS IN THE MIDDLE OF THE SESSION LIKE WE DID LAST YEAR?

>> WELL, YOU'RE ASKING ME TO SPECULATE.

AND I WON'T DO THAT.

HAVING SAID THAT, IF WE -- I CAN'T PREDICT THE FUTURE.

OBVIOUSLY IDAHOANS HAVE BEEN ABLE TO POWER THROUGH THE PANDEMIC AS EVIDENCED BY OUR ECONOMIC ACTIVITY.

THAT'S NOT THAT THEY DISREGARDED THEIR SITUATION AROUND THEM, BUT THEY MADE ACCOMMODATIONS TO GET THROUGH.

AND I BELIEVE THAT'S WHAT IDAHOANS EXPECT THEIR LEGISLATURE TO DO.

WE'RE NOT -- WE'RE NOT GOING TO TAKE A LOT OF RISKS HERE, BUT I'M CHARGING EVERYONE WITH THEIR OWN SAFETY TO TAKE PRECAUTIONS FOR THEMSELVES, AND THIS NEW VARIANT SEEMS TO BE VERY CONTAGIOUS, AND YOU KNOW AND I KNOW PEOPLE THAT HAVE TAKEN EVERY PRECAUTION, BY THE OLD DEFINITION OF THE WORD "EVERY," EVERY PRECAUTION, YET THEY'RE CATCHING IT AND THANK HEAVENS IT'S NOT AS SERIOUS.

>> ALL RIGHT.

HAVE TO LEAVE IT THERE.ING TO ASSISTANT MINORITY LEADER LAUREN NECOCHEA, HOUSE SPEAKER SCOTT BEDKE, THANK YOU SO MUCH FOR JOINING ME TODAY.

>> THANK YOU >> THANK YOU.

>> WE HAVE MORE OF MY CONVERSATION WITH REPRESENTATIV¶ REPRESENTATIVES ON OUR YOUTUBE CHANNEL.

THANKS SO MUCH FOR WATCHING, AND WE'LL SEE YOU NEXT WEEK.

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