Idaho's budget collapse isn't about a lack of tax dollars.  The state is short of money because throughout much of the 1990s, it has been spending beyond its means, writes Janice McGeachin, as as Post Register Guest columnist.

It's time to go home

We, the members of the House, recognize that this session has been long and sometimes an arduous process.  The Legislature has now raised more than I the necessary revenues to meet the governor's budget expectations.  The House is in the business of setting the budgets to match the revenue stream.  The business of raising revenues is riow complete.  The House is now proceeding to complete the setting of the few remaining budgets according to the governor's recommendations.  Education has been held harmless and in fact will have an increase as requested by the governor.    The house will give the Senate the means to finish the peoples' business and balance the budget according to the Idaho Constitution.  We accept the public's mandate to finish this business and go home.    The session has been long, and I have learned a lot.  It has been a great privilege to serve as state reprentative for our great state.  We all knew that the primary focus of the session would be how to balance a budget deficit for fiscal year 2004.  Would we cut budgets, raise taxes or would there be a combination of both?  The situation was compounded by the bad news received in February from the Idaho Departiment of Labor.  Idaho's unemloyment rate rose from 4.5 percent to 5.6 percent in 2002.  Also in 2002, major electronics firms in the Treasure Valley had six major layoffs resulting in the loss of 3,700 jobs.  These job losses have resulted in an

estimated loss of $160 million in wages.  And finally, Micron Technology announced the elimination of 1,100 jobs in the Boise area.  It is very difficult to contemplate raising taxes on people who have just lost their' jobs.    Our state is like a reservoir.  In wet years when it snows a lot, we have good snowpack.  We can be a little liberal with our watering, and if the dam leaks it is no big problem because there is still a lot of snow in the mountains.  But after a few drought years, the snowpack is gone.  We only have a few choices to have enough water for all the many needs downstream.    The first would be to water a little less.  The next might be to fix the leaks in dam.  But of course, we could always ask our friends upstream to share more their water in the hopes that the drought will end before the water runs out.  Maybe it is time to patch the holes in the dam.  To speak of some of these potholes, for every dollar that we send on K-12 eduction, only 50 cents gets to the teachers.    According to the Centers for Medicare and Medicaid Services, Idaho ranks 11th highest in the nation in Medicaid administative costs.  Idaho has a 7.6 percent cost ratio when the national average is 5.5 percent.    The states fiscal problems reflect excessive spending growth.  In the past 14 years, average annual spending grew 8.2 percent, while the economy grew at an annual rate of only 5.2 percent.  Idividuals and businesses reinvent themselves and the way they behave in times of adversity.  Businesses reduce staff and imitate the best practices of their competitors.  Families discipline themselves to adjust to more at stringent budget oonstraints.  Instead of taking a trip to Disneyland, the family decides to go camping.

The family economizes a bit, but we basic functions of life continue without serious disruption.  Advocates of increased taxes argue that the state is facing huge increases in its Medicaid budgets that far exceed the inflation rate for the rest of the economy.    The threat of court-ordered "equity" lawsuits and federal mandates are forcing them to increase school spending dramatically.  Yet the reality is that in all of these areas, the current method of service delivery is badly flawed and inefficient.  Reform is desperately needed to solve not only current budget pressures, but also the long term implications of increasing resource allocations to these services relative to the economy as a whole.  We need to have long-term expenditure control.    This year, I presented a bill that would have placed a limit on the amount of growth in state spending.  Under this proposal, state government spending would be limited to the amount of increase in the rate of inflation plus population growth.  According to my analysis, if we would have limited our spending starling in 1998, we would not have a budget deficit this year.  Additionally, we would have more than $600 million in reserve accounts and/or returned lo the taxpayer.  The bill died in committee, but I plan to introduce similar legislation next year.    As I write this letter, we are still trying to reach a compromise.  The House, Senate and the governor are far apart.  In the House, we feel that we have done our job and it is time to go home.    McGeachin, R-Idaho Falls, is serving her first term in the Idaho House of Representatives.  You can write to her of 6121 N. 5th West, Idaho Faits, ID 83401.