The Associated Press reports Idaho lawmakers responsible for state agency budgets say there may not be enough money in fiscal year 2014 to maintain existing programs.
“This is bleak, frankly,” said Rep. Maxine Bell, R-Jerome. “If we can just plateau, that will be a good thing. We may have to back up a little.”
Bell, co-chairwoman of the Joint Finance-Appropriations Committee, on Thursday morning toured the University of Idaho, where there’s a deferred maintenance backlog of about $240 million.
Bells said that earlier this year it looked like the state had sufficient revenue to provide a $36 million tax cut, as well as give state employees a 2 percent raise.
“That made people think we’re on an upward trend,” Bell told the Lewiston Tribune ( http://bit.ly/Lastgk).
But she said now it looks like rather than starting the fiscal year with a $70 million to $100 million beginning balance, the 2014 budget will start from zero.
Because the $36 million tax cut is ongoing, future revenue growth will be reduced by about 1.5 percent per year.
“Unless something changes dramatically, you’ll have limited new resources for budget relief, for tax relief or to put into savings,” legislative budget director Cathy Holland-Smith said.
She noted that even if the state sees 4 percent revenue growth in 2014, three-fourths of that will be needed to backfill the 2013 appropriations and maintain existing programs.
“This really is a bleak picture,” said Rep. Fred Wood, R-Burley. “People will attempt to move us into a political corner, but we shouldn’t go there. I’d caution us against any kind of optimism.”
The University of Idaho also gave a presentation about the age and condition of the school’s infrastructure.
Ron Smith, vice president for finance and administration, said that about 65 percent of the school’s general education buildings are at least 25 years old, and 30 percent are at least 50 years old, with deferred maintenance at about $240 million.
“We know those expenses are going to be passed along to someone,” said Rep. Shirley Ringo, D-Moscow.
