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Lawmakers ought to cautiously spend Idaho's portion of federal stimulus dollars, Sen. Mike Crapo, R-Idaho, said Tuesday in a return to the Idaho Senate just hours before President Obama signed the $787 billion stimulus bill in Denver.
Legislators ought not to overstretch the budget with ongoing spending, Crapo said.
"I just encourage you as you deal with this largess ... that you pay very close attention to what it does to your base," Crapo said.
Crapo, who served in the Legislature from 1984 to 1992, said the Idaho lawmakers are faced with an "interesting job" in deciding what to do with between $600 million and $1 billion the state is expected to receive from the federal government.
Crapo, who along with the rest of the Idaho delegation voted against the package, said there were certain parts of the stimulus that he agreed with.
He singled out some of the tax relief and the $6.4 billion dedicated to expedited environmental cleanup as good pieces. Crapo said about $400 million of that money could come to Idaho.
Crapo said he would have preferred that the federal government deal with the housing crisis first, the credit crisis second and then consider a stimulus effort.
"The underlying premise of this bill is that you can spend yourself into prosperity," Crapo said.
"I reject this notion."
Brian Murphy and Kathleen Kreller
Idaho's public schools chief said he has met with teachers and Democrats in an attempt to defuse the controversy that erupted over a proposal to end multiyear teacher contracts last week.
Tom Luna told the Idaho Statesman that he met with members of the Idaho Education Association and Democratic legislators to resolve differences over legislation introduced Thursday by Senate Education Committee Chairman Bob Nonini. The bill would eliminate teacher union contracts of more than one year and allow districts to reduce the salaries or contract days of experienced teachers.
The Idaho Education Association and Democrats said the bills were an attempt to use the economic crisis to break unions. Descriptions of the bills ranged from "draconian" to "mean-spirited."
"I was genuinely surprised at the response," Luna said. "When I saw the response, I got ahold of members of the IEA and members of the Democratic Party and asked what there was in this bill that surprised them and was unacceptable. Identify those parts in the bill that were overreaching and unnecessary."
Luna said the Friday meeting helped ease some concerns and tone down the rhetoric. He said opponents of the measures considered some of the provisions too broad, especially one that did not allow teachers to work under the terms of a previous contract while a new contract was being negotiated.
"They want to make these things temporary," Luna said. "That's how we'll handle it."
The federal stimulus package, which Luna estimates could bring $346 million to public education in the state, could forestall any legislative changes or budget cuts in public education, offering a reprieve from the battle over Nonini's bills.
Luna also scrapped a plan to ask the Land Board for a $30 million one-time payment Tuesday from its endowment fund to help offset education cuts.
Brian Murphy
Gov. Butch Otter wants state agencies to specify within two weeks how they would use federal stimulus money, and he wants a special committee to help him evaluate the proposals.
Less than two hours after President Obama signed the $787 billion stimulus bill, Otter issued an executive order Tuesday creating a "stimulus executive committee" to recommend how to spend the estimated $1 billion of the money coming to Idaho.
Otter's order requires the committee to complete its work by March 19. Among those likely to be on the panel are former governors and former directors of the budget office.
The order allows people outside of state government who believe they are eligible for stimulus money to apply by March 4.
"I'm grateful to the legislators who sat down with me and my staff to work through this enormous piece of legislation and agree on a process for ensuring we make good, sound and responsible decisions for the people of Idaho," Otter said in a statement.
Otter said the stimulus money must comply with the state's constitutional requirement for a balanced budget, and said agencies must plan for when the federal spending ends. New state workers hired with stimulus money will not be kept on after the money runs out, he said.
"There remain a lot of unknowns here," he said. "It will take a lot of work to get our arms around all the implications of this law. We need to make sure safeguards are in place and that every i is dotted and t is crossed. This is taxpayer money, and all of us are committed to seeing it used in the most effective and efficient way possible."
Otter has 45 days to apply for a portion of the federal funds. Other funds will be passed through to states under formulas established for programs including Medicaid and transportation. Still more funds will be available through competitive grants.
On Monday, the co-chairs of the Legislature's budget committee ordered their eight budget analysts to review the 1,100-page law and asked other legislators to suspend requests to those analysts.
"We've asked our colleagues to please give them some time and some space," said Joint Finance-Appropriations Co-chair Sen. Dean Cameron, R-Rupert.
In the governor's news release, Cameron said, "I appreciate the governor's leadership, and the meticulous way all the implications of this complex federal law are being evaluated. The way we are working together on this issue should give all Idahoans a lot of confidence that we are doing it right."
JFAC Co-chair Rep. Maxine Bell, R-Jerome, added, "The governor sees that the Legislature is an essential part of this process. We look forward to working with him to ensure the requirements of this stimulus package and state law are observed, and that there is a clarity, certainty and transparency in the process."
Senate Minority Leader Kate Kelly, D-Boise, said Democrats met with Otter Tuesday and support his plan to assess how - and how much - to use federal stimulus money.
"I think there needs to be a deliberative process," Kelly said.
Dan Popkey: 377-6438. The Associated Press contributed.
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