The big six

Property tax

With growing concerns around the state about rising property taxes, especially from homeowners, a legislative interim committee held a dozen public hearings over the summer and recommended major reforms.

Where things stand: Legislation to increase the homeowner’s exemption and to expand the “circuit breaker” tax break for the low-income elderly and disabled passed both houses, but has been sent back to committee in the House to examine Senate amendments. Bills to eliminate a tax loophole for rural developers and to allow some low-income seniors to defer taxes until they die or sell their homes are on the governor’s desk. Bills to shift school operations funding off the property tax and raise the sales tax are pending in both houses.

School construction

The Idaho Supreme Court in December declared the state’s system for funding school construction unconstitutional, and ordered lawmakers to fix a system that now relies on property taxpayers.

Where things stand: The House and Senate have both passed a GOP leadership bill to put about $5 million in new money into school maintenance, fully fund a bond matching program in the future that was approved three years ago, and set up a $25 million loan fund to replace unsafe schoolhouses. However, to access the loan fund, a school district would have to be taken over by the state, a supervisor appointed who could fire its superintendent, and a no-vote property tax increase imposed on its patrons after they’d twice voted specifically against the increase. The bill is now on the governor’s desk.

Prisons/crime

Idaho’s prisons are overflowing, and the state was forced this year to ship more than 300 inmates out of state at a cost of $6 million a year. Meanwhile, Idaho lawmakers and state officials want to crack down on sex offenders after several high-profile cases, and impose much longer sentences.

Where things stand: The Joint Finance-Appropriations Committee approved a budget for the Department of Corrections that contains a 17 percent increase in general funds, a $20 million increase. That includes contracting with a private provider to build a new 400-bed treatment facility. Another $16 million was approved separately for a 350-bed medium-security prison expansion. Meanwhile, tough bills lengthening sentences for an array of offenses are moving through the Legislature and becoming law, including everything from sex crimes to drunken driving to gang membership.

Road construction

Last year, Kempthorne pushed lawmakers to approve his $1.2 billion “Connecting Idaho” plan, which seeks to do 30 years worth of highway construction in the next 10 years, financed by borrowing against future federal highway allocations. Now, the first round of bonding is up for approval by this year’s Legislature.

Where things stand: JFAC approved a bonding plan totaling $200 million for the next 18 months, a compromise with the governor that also restores $35 million in right-of-way acquisition and engineering for a new freeway from Coeur d’Alene to Sandpoint. The compromise plan also allows the state Transportation Department to shift money from one project to another if necessary. The bill hasn’t yet passed either house and it was hijacked and sent to the House Transportation Committee Friday by House Speaker Bruce Newcomb.

Budget

Idaho had a projected $214 million budget surplus to start off its budget-setting decisions this year, a marked contrast to recent tight years. However, many urgent needs have been delayed during the budget crunch of recent years, from building maintenance to state employee raises.

Where things stand: Legislative budget writers set a relatively generous the state budget, a 5 percent increase, including the first $1 billion-plus public school budget. For the first time in years, inflation costs are being funded. State employees got merit raises averaging 3 percent in February. A scaled-down, $11.5 million version of the governor’s $30 million-plus parks initiative was funded. Last-minute funding decisions in JFAC left just over $12 million unspent in next year’s budget.