House Joint Memorial 6, sponsored by Reps. Matt Bundy (R-Mountain Home) and Colin Nash (D-Boise), commends the bravery and resolve of the Ukrainian people in defending their country from Russian troops, and asks Gov. Brad Little to take all appropriate measures to sanction Russia. It also calls on Congress and Idaho’s delegation to fully support the Ukrainian government and penalize Russia in order to deter the country’s violent and illegal attack. 

“Russia’s violent incursion against Ukraine is inexcusable,” Speaker Scott Bedke (R-Oakley) said. “It is our duty as Americans to continue to work and support all countries fighting for the same rights and freedoms we have enjoyed and defended for centuries.” 

“This is a time to join together across party lines to express our support for the Ukrainian people, who are showing unparalleled courage in the face of Russia’s ruthless attack,” Minority Leader Ilana Rubel (D-Boise)  said. “We stand with Ukraine and President Volodymyr Zelensky, and against the perpetrators of human rights abuses.”

Rep. Lauren Necochea

House Bill 436 passed and now moves to the Senate. All Democrats voted against the legislation, and instead advocated more critical tax solutions, such as reducing property taxes or repealing the sales tax on groceries — both of which would bolster Idaho’s working families or local economies. The income tax cut is in large part funded by internet sales tax, a more regressive form of taxation paid disproportionately by those with lower and middle incomes, creating a reverse Robin Hood effect.

Per the legislation, someone with $1 million in annual taxable income will receive an ongoing yearly tax cut of over $5,000 on top of a nearly $8,000 one-time rebate. Idahoans with the most modest incomes will receive a rebate of about $75. 

Rep. James Ruchti said Idahoans have expressed a clear desire for property tax relief, a repeal of the grocery tax, and adequately funded schools. However, the bill — which has a one-time cost of $350 million in addition to an ongoing cost of $250 million — effectively precludes the state’s ability to eliminate the grocery tax while meeting the other stated funding objectives.

Rep. James Ruchti

“Idahoans want property tax relief, to be able to feed their families, to have well-funded schools, good paying jobs, and sustainable infrastructure. Nowhere on that list will you find people clamoring for an income tax cut,” Ruchti said. “We need to put dollars in the hands of people who need it most.”

Assistant House Democratic Leader Lauren Necochea said small businesses depend on a strong middle class to thrive, but the legislation does nothing to bolster Idaho’s working families or local economies. Instead, it would reduce the corporate income tax rate from 6.5% to 6%, leaving in place the sales tax rate people pay for food, diapers, medicines, and other needs. 

According to the Idaho State Tax Commission’s Tax Burden Study, Idaho is already below the national average for corporate taxes collected relative to state income, at 1%.

Rep. Ilana Rubel

“What we do not need are more tax cuts for profitable corporations. More than 80% of revenue cuts that benefit corporations ultimately flow out of state. That does not build a vibrant Main Street,” Necochea said. “Our political system is seriously broken when the GOP supermajority rams through a bill that voters are asking us to reject.”

House Democratic Leader Ilana Rubel said the bill highlights the legislature’s blatant disregard for the wants and needs of everyday Idahoans.

“This bill literally takes from the poor and gives to the rich at a time when the state has yet to allocate a single penny in the budget toward education, infrastructure or other vital needs. This is not how responsible government should work. Fix the schools, and the bridges and the critical problems first, then consider whether giant tax cuts that overwhelmingly benefit the wealthy and most profitable corporations make sense,” Rubel said. “I want grocery tax repeal, property tax reductions — the tax cuts that help working families meaningfully, that help fixed-income seniors, and that the people of Idaho actually want.”

First, GOP legislators ended the annual adjustment to the homeowner’s exemption that used to keep pace with housing prices, causing a dramatic shift of the property tax load away from commercial property and onto homeowners. So, even if county budgets didn’t increase by a penny, the legislature caused property tax on your home to increase every year. Meanwhile, many corporations have watched their property tax bill decrease while yours goes up. GOP legislators slightly increased the exemption this year, but not nearly enough to remedy the harm they inflicted on homeowners by ending the indexed exemption.

Second, they severely underfunded schools, with the lowest per-student education investment in the nation. This forced voters who want adequate schools to pass bonds and levies, further spiking property taxes. Want to fix the school roof before it collapses? Better pass a bond — the legislature won’t help. Want full-day kindergarten? Or enough operating funds to stay open five days a week? Better pass a levy — the legislature won’t help.

Third, for 14 years GOP legislators stopped every effort to increase property tax assistance for low-income seniors and veterans. This year they allowed a miniscule increase in the aid amount for some, but financed it by kicking 4,000 people out of the program.

Reps. Ilana Rubel, Lauren Necochea, and Sally Toone

Fourth, they denied local government their share of internet sales tax. You buy a shirt at Target, 11% of the sales tax collected funds local government. But if you buy that same shirt on Amazon, GOP legislators have blocked local government from receiving any of the tax collected. As sales have shifted online, this has hit local governments’ revenue stream and forced them to rely more on property taxes.

Finally, the GOP bill shamefully touted as “property tax relief” limits taxes that can be collected based on new development, blocking growth from paying for growth. Thus existing homeowners must either pay more in property taxes to make up for the deficiency (as happened in Meridian, which was forced to raise property taxes by this legislation), or suffer cuts to vital local government services like police, fire, and paramedics. Cities like Caldwell and Ketchum, already operating on tight budgets, were forced to halt new construction, exacerbating the state’s housing crisis.

For years, GOP legislators have blocked every bill providing meaningful relief, like capping assessment increases, restoring the indexed exemption, treating internet sales tax the same as regular sales tax, and increasing property tax assistance for low-income seniors and veterans. The result has been rising property taxes driving people from their homes.

A recent study from the Idaho Office of Performance Evaluations showed it isn’t “spendthrift counties” causing the problem. County populations went up 39% over the last 20 years, but their budgets only increased 27%. Counties are running extremely lean budgets that underspend compared to population growth.

Rather than admit to having caused the problem or try to fix it, GOP legislators are pointing fingers at innocent local government officials. You deserve the truth, and we hope you will respond by electing legislators who will work to reduce your property taxes while preserving vital local services. Idahoans need leaders that deliver real solutions, not scapegoats.

Senate Democratic Leader Michelle Stennett will appoint Dan Schmidt, a physician from Moscow, Idaho, where he has practiced family medicine for 32 years. Schmidt attended Stanford University before completing his education at University of Washington School of Medicine: WWAMI Medical Education Program. He served as the Latah County Coroner from 1991-2006, and represented Latah and Benewah Counties in the Idaho State Senate from 2010-2016. 

House Democratic Leader Ilana Rubel will appoint Amber Pence, a resident of Tetonia, Idaho, where she works as the special assistant to the Teton County Board of County Commissioners. Pence was raised in Burley and attended Utah State University. She previously worked as the minority chief of staff in the Idaho House of Representatives and the director of intergovernmental relations for the city of Boise.

Idaho Democratic Party Chair Fred Cornforth will appoint Nels Mitchell, a resident of Boise, Idaho. Mitchell attended Columbia University before pursuing his law degree from the University of Idaho College of Law, where he later became a professor. He also worked with the Securities and Exchange Commission, and oversaw a staff of 75 lawyers and investigators. Mitchell ran for U.S. Senate in 2014, as the Democratic nominee.

“When Idaho voters established an independent redistricting commission in 1994, they created a model for the nation. As appointing authorities, protecting the integrity of the commission is our top priority in selecting commissioners. These individuals share our commitment to a fair and independent redistricting process. We have full confidence in their ability to work with their counterparts to produce publicly favorable and legally sound maps in a timely manner, which will serve our state well for the next decade,” the three said in a joint statement.

Rep. Ilana Rubel

The bill seeks to make an already onerous process ostensibly impossible by doubling the district signature requirements needed, rising to 6% of signatures of registered voters in all 35 of Idaho’s 35 legislative districts, rather than in 18.

The governor’s claims that House Bill 135 and Senate Bill 1136 should be vetoed for unwisely and unconstitutionally taking his emergency powers now ring very hollow, Senate Assistant Democratic Leader Grant Burgoyne said. It is evident that this year’s legislative session has deteriorated into a slugfest in which legislative factions and the governor merely seek to grab power for themselves and leave the people, and their constitutional rights, out in the cold, he added.  

House and Senate Democrats voted against Senate Bill 1110, and urged Little to veto the legislation when it reached his desk. The three branches of government — the governor, the legislature and the courts — are supposed to hold each other in check, but the Idaho Constitution wisely recognizes that the people need to be able to hold politicians in check through the power of the initiative and referendum process.

Sen. Grant Burgoyne

“The governor proved yesterday that he’s willing to use his veto to protect executive power, but by signing SB 1110 he was apparently unwilling to also protect the people’s power,” House Democratic Leader Ilana Rubel said. “SB 1110 puts unreasonable and unworkable restrictions on the ballot initiative process, effectively denying voters the only ability they have to enact laws when their legislators won’t act.”

Burgoyne echoed Rubel’s sentiments. 

“Citizen initiatives and referenda are cornerstones of democracy.  The governor owed it to the people he represents to use his veto power to protect them, and we are extremely disappointed he allowed the legislature to strip the people’s powers away,” Burgoyne added. “Everyday Idahoans know a power grab when they see it, and will not stand for it.”

Rep. Ilana Rubel

Both House Bill 135 and Senate Bill 1136 were opposed by the House and Senate Democrats. 

House Democratic Leader Ilana Rubel said Little made the right choice to veto the two bills, and hopes he’ll do the same with Senate Bill 1110, which seeks to trim the power of the people.

“In emergencies, the speed of our response is a matter of life and death for Idahoans. It is critical that our executive branch can act swiftly and effectively, something that our legislative branch has not exactly modeled this session,” Rubel said following the announcement. “We hope that in addition to guarding the powers of the executive, however, that Gov. Little will protect the powers of the people he serves by vetoing SB1110, a bill that virtually eradicates citizens’ ballot initiative rights.”  

Rep. Ilana Rubel

House Democratic Leader Ilana Rubel, D-Boise, debated strongly against it, and said the bill seeks to make an already onerous process ostensibly impossible by doubling the district signature requirements needed. Rubel said Idaho already is the hardest state to qualify a measure for the ballot. In the past decade, Medicaid expansion is the only initiative to pass, and it would not have come close to qualifying under SB1110.

“If y’all are afraid of what the people of Idaho want to do and what their agenda is, and you feel it is important to block that, you may be in the wrong line of work,” Rubel said in her debate. A survey from Boise State University showed 80% of Idahoans opposed adding restrictions.

Rep. Colin Nash

Proponents of the bill argued it gives rural Idahoans more of a voice in the legislative process. But in his debate, Rep. Colin Nash, D-Boise, showed the divide between urban and rural voters is a myth, as demonstrated by Idaho ballot measure election results by county from 1990-2020.

“Our ballot initiative process has allowed citizens of Idaho to pass laws when the Idaho Legislature fails to act. From Medicaid expansion to the popular homeowner’s exemption that protects residents from rapid property tax increases,” Nash said. “We must stand up for Idahoans’ constitutional right to enact laws independent of the Legislature, not silence and suppress them.”

The bill now moves to the governor’s desk for consideration. The Democratic caucus strongly urges his veto.

Sen. Michelle Stennett

Democratic Leaders Ilana Rubel and Michelle Stennett said they wish the individuals who’ve tested positive a full and speedy recovery, and are thankful for the decision to take a two-week pause. However, it shouldn’t have taken an outbreak for lawmakers to start addressing the seriousness of the coronavirus, since the Statehouse is equipped with fully functional remote capabilities, they added.

“We hope our colleagues are able to heal quickly and return, so we can finish the session. But we can’t help but be disappointed in how bad things have become at the Capitol, when we could’ve prevented this from becoming a hot spot all along,” the pair said in a joint statement.

Rep. Ilana Rubel

“We are just so sorry it took so many people getting sick for us to act. We must do better when we return, or else we’ll keep finding ourselves in this position.”

As of 5 p.m. Thursday, the state had logged more than 177,000 confirmed and probable COVID-19 cases, as well as nearly 2,000 deaths. This week, The New York Times reported Idaho Falls was the nation’s worst hot spot, with Rexburg as number three. 

House Democratic Leader Ilana Rubel and Assistant House Democratic Leader Lauren Necochea spoke on the legislation, which slashes income tax rates with the benefits flowing overwhelmingly to those at the top of the income spectrum.

Rep. Ilana Rubel

The legislation also provides a lopsided one-time tax rebate equivalent to 9% of a taxpayer’s state income tax due in 2019, or a floor of $50 per person. Under the bill, a couple bringing in $1 million annually would receive more than $10,000; while a couple making $50,000 would receive only $113. The ongoing tax cut for the household earning $25,000 is only $13 a year.

“I have knocked on more than 20,000 doors during my time in the legislature. Countless voters have spoken to me of their desire for reduced property taxes, better-funded schools, affordable housing and investment in infrastructure. Not one has ever asked for bigger tax cuts for the wealthy. Idahoans’ true priorities are severely jeopardized by HB332 — the money we need to solve their real problems will be gone. I dare the proponents of this bill to knock on their constituents’ doors and ask what they think of a bill that gives $13 to the poor and $10,000 to the rich, while diminishing the funds available for education by almost $400 million.” 

House leadership used procedural maneuvers to hastily approve this bill, which also threatens Idaho’s COVID-19 relief package. The American Rescue Plan Act allocates $1.2 billion for Idaho, but will likely be clawed back dollar-for-dollar if the state enacts this tax cut. House Bill 332, at a cost of $390 million, puts one-third of our relief dollars in jeopardy in this first year. Idaho could stand to lose more of those relief funds due to the out-year costs of the bill.

Rep. Lauren Necochea

“This is not the tax bill that Idahoans want. The vote today demonstrated that the House majority is not listening to Idahoans and is uninterested in responding to the needs of working people,” Necochea added. “This is a very costly bill. We ought to be taking a balanced approach, increasing investment in education and delivering targeted tax reform that benefits working Idahoans. This deep revenue cut locks us in at 50th in the nation for school investment.”

Necochea submitted legislation weeks ago to create a sliding scale tax credit for working families and increase the child tax credit, while making it fully accessible to all families, as part of the Democrats’ Idaho Working Families Agenda. It has been denied a hearing.

Rep. Ilana Rubel

House Minority Leader Ilana Rubel and Senate Minority Caucus Chair Janie Ward-Engelking expressed dismay that the majority party’s legislation has centered on largely unconstitutional efforts to siphon power from the governor, the attorney-general, local governments and most concerningly, from Idaho voters themselves. On the latter point, they cited multiple pending voter-suppression bills (House Bills 219 and 223) and Senate Bill 1110, which would erect virtually insurmountable obstacles to the exercise of citizen ballot initiative rights.   

The pair said as a result, almost no attention has been given to the very real needs of Idaho’s working families, such as underfunded schools, skyrocketing property taxes and deteriorating infrastructure. Instead, the Legislature is creating new problems for Idahoans by passing unconstitutional bills likely to lead to costly litigation and diminishing voting rights.

“This session so far has largely been one big power play,” Rubel said. “Time is running out, and it is past time for the legislature to put people over power plays and address the real needs of the people of Idaho. Those needs do not include creation of an all-powerful legislature.” 

Sen. Janie Ward-Engelking

Rubel and Ward-Engelking said Democrats have a slate of bills specifically targeted at addressing real problems; however they are being denied hearings in committees. These pieces of legislation include bills to lower property taxes, make growth pay for growth, finally offer full-day kindergarten, and allocate resources to provide learning remediation for the children in Idaho who have fallen behind during the pandemic.

“We have to switch focus and finally start helping our citizens — enough is enough,” Ward-Engelking said. “The legislature has printed more early bills this session than ever before, and yet, after nearly seven weeks, we’ve only passed eight laws; five in the Senate and three in the House. We can’t afford to waste any more time in this building.”