Scott Bedke: Idaho can get through tough times without rash measures

The upcoming 2010 Idaho legislative session will be an extremely challenging one, yet we cannot wait until January to start solving the problems. We must begin now. Abundant and lean times routinely follow one another, and the more prosperous times can often lead to government spending beyond what the lean times can comfortably support. This is the pattern that we are in now.

Idaho's economy enjoyed rapid growth in the period from 2002 to 2007, which the current recession has mostly wiped out. The decline in the economy essentially has taken away five years of revenue growth from the state, and by most accounts the recession is a long way from being over. Revenues have declined more than 21 percent and will have an impact on education, health services and other government programs that have been a part of Idaho for many years.

Idaho has a $151 million shortfall in the current budget and Gov. Butch Otter has taken a step in the right direction in meeting the state's constitutional requirement for a balanced budget. He has proposed holdbacks ranging from 2.5 percent to 7.5 percent and more reductions may be implemented in the coming months.

Even with the governor's announced holdbacks, the issue is far from resolved. State leaders want to see what happens to revenues in the next few months before announcing additional holdbacks. The Legislature when it convenes in January will look at additional options. Gov. Otter has been working with legislative leaders and budget staff in the effort to reduce this shortfall.

These challenges reinforce the need for continuing emphasis on Idaho's traditional conservative core principles of limited government, fiscal prudence and the careful shepherding of resources. Idaho's Constitution requires us to have a balanced budget each year, a provision that we take seriously, unlike many other states that have been less practical and are now facing deficits in the billions of dollars.

Two approaches I want to avoid are:

1. Raising taxes to compensate for lost revenue. The health of government programs is not nearly as great a concern to me as the health of households in Idaho. This is unquestionably no time for raising taxes. Nearly 10 percent of Idahoans are out of work and families and businesses are struggling. In addition, federal tax changes are looming from an aggressive and expansive federal government.

2. Depleting the state's stabilization, or "rainy-day" funds. It probably will be necessary to use some funds from the state's saving accounts to make up for lost revenue. But it would be reckless to take all the money from those accounts, as some have suggested. We do not know how long the recession will last or when state revenues will rebound.

I do not view the budgetary situation as gloom and doom. On the bright side, I think we have the outline for a conservative and responsible budget plan that forces government to live within the taxpayers' means. Better days certainly lie ahead and Idahoans will continue to be well-served by their state government despite some of the toughest economic times in Idaho's history.

Scott Bedke of Oakley is assistant majority leader of the Idaho House of Representatives.