Here’s an example of the gloomy economic news that the Legislature’s joint Economic Outlook & Revenue Assessment Committee is receiving as it holds two days of hearings on the state’s economic outlook: Jane Wittmeyer, vice president of Idaho affairs for the Intermountain Forest Association, said, “Our producers of lumber and wood products are operating at about 50 percent of capacity, and of that capacity, they can sell about 50 percent of what they make. One cannot do that for very long.”

In recent years, Idaho led the nation in economic growth, but Mike Ferguson, chief economist for Gov. Butch Otter, said Idaho is now actually leading the nation in the current recession. Our unemployment rate, which was third in the nation in January of 2008, was 18th in November. We’ve seen “a pretty dramatic deterioration in our employment growth over the course of the year,” he told the lawmakers on the panel. Bob Fick of the Idaho Department of Labor told the committee, “The recession has hit every part of the state.” Overall, Idaho lost 17,600 jobs from November of 2007 to November of 2008 and 19,500 fewer people were working. Manufacturing, construction and financial services jobs are disappearing, and while health care and education are growing, those jobs pay less. “Overall, Idaho’s job situation will continue to decline and the unemployment rate rise through much of 2009 before finding bottom,” Fick said.

The committee’s job is to examine the economic outlook and decide whether to accept the governor’s projections for tax revenues, or set different figures on which to base the state’s budget for next year. The hearings continue tomorrow, and the panel will make its decision on Jan. 15. Sen. John Goedde, R-Coeur d’Alene, the joint committee’s co-chairman, said, “It’s bleak.”

Idaho Gov. Butch Otter has signed a pledge to join T. Boone Pickens’ campaign to reduce America’s dependence on foreign oil. “One of my goals as Governor is to fully utilize Idaho’s resources to increase our own state’s energy supply,” Otter said.  “Establishing energy security for this state and this country should be a top priority.  While there are some aspects of the Pickens plan I still have concerns about, I am signing this pledge to lend my voice to T. Boone Pickens and others calling for a comprehensive energy plan to end our reliance on foreign oil.”

Pickens responded, “Gov. Otter recognizes that importing nearly 70% of the oil this country uses every day not only hurts our economy, but is a threat to national security. In order to reduce America’s dependence on foreign oil, this country needs a plan.  I am proud to have Gov. Otter on my side as we call on President-elect Barack Obama and Congress to enact an energy plan within the first 100 days of the new administration.” Otter joins more than 1.3 million others in endorsing the plan, making him a part of the “Pickens Army.” Click below to read the full pledge.

Continue reading Otter signs Pickens pledge »

Senate Minority Leader Clint Stennett, D-Ketchum, will send a stand-in for the start of the legislative session on Monday as he rests up from the latest phase of his brain cancer treatment before resuming his full-time legislative duties. “It is hard to know all the obstacles such an illness may place before you, but you tackle them one at a time, and continue to look forward,” Stennett said in a statement. “I am still positive about my health, and look forward to working hard again for District 25.” Stennett is recommending former Sun Valley Mayor Jon Thorson, who filled in for him for a week last year, as a temporary replacement. Click below for the full press release from the Senate minority office on Stennett’s announcement today. Meanwhile, Sen. Edgar Malepeai, D-Pocatello, also is sending a stand-in due to his wife’s continuing illness. Former Idaho State University Dean Richard Sagness, who filled in for Malepeai last year, will do so again.

Continue reading Stennett, Malepeai to miss session kickoff »

Here’s a link to my full story in today’s Spokesman-Review on why the governor and other top state officials can’t reject their scheduled pay raises. It stretches back to a state constitutional requirement aimed at preventing partisan politicians from eliminating salaries for their political opponents, essentially undermining their election by the people. Rep. Darrell Bolz, R-Caldwell, vice chairman of the House Appropriations Committee, requested the Attorney General’s opinion to address a series of questions about options for the Legislature and its joint budget committee in dealing with pay issues this year, and how constitutional restrictions impact that. “When economic times are tough, I was just thinking elected officials shouldn’t be held to a different standard than anyone else,” Bolz said. “If you’re asking that all these people who work for the state be held to no pay raise, why should we be any different?” Bolz said he was mainly focused on legislative pay, and was surprised to learn statewide elected officials couldn’t reject raises. “It’s kind of a unique situation, but that’s what the Constitution says,” he said.

State Superintendent of Schools Tom Luna, who like Gov. Butch Otter had planned to reject his own pay increase this year but now is being told he legally can’t, said he hopes the Legislature will act this year to change the system, though a constitutional amendment also would need a vote of the people at the next election to take effect. “I think when we’re looking at the toughest economic times that we’ve seen in our lifetime, that this is not the time for politicians to be getting a pay increase,” he said, “when just about everyone else that we know is either being laid off or furloughed or at best their pay is frozen, and that’s inside government and outside government.” 

Gov. Butch Otter’s decision to turn down a scheduled 3 percent pay raise this year has run into an unexpected roadblock: An Idaho Attorney General’s opinion has concluded that he can’t do it. In response to a request from a state legislator, the AG’s office analyzed constitutional requirements regarding pay for lawmakers and state constitutional officers. The state Constitution requires the Legislature to set the pay amounts for constitutional officers including the governor, and to do it before they take office. Their pay can’t be changed during their term. So a law passed before Otter took office, which mandates that his 2008 salary of $108,727 rise by 3 percent in 2009 to $111,989, is the law - and Otter has no power to change it.

“The governor was disappointed,” said his budget director, Wayne Hammon. “We’re bound to do it, so he’s going to take the money and then donate it to the scholarship fund.” Hammon said Otter will donate his raise to either the state’s Opportunity Scholarship fund, or to the Governor’s Cup Scholarship Fund. Both are for Idaho students attending Idaho colleges. “Secondly, he’s going to propose during this legislative session a constitutional amendment to change that law,” Hammon said.

Continue reading Guv can’t turn down raise, will donate it »

Shortly after Gov. Butch Otter’s press conference announcing his appointment of Brad Little as lieutenant governor, the governor swore Little in, in a brief ceremony in the governor’s office. He’s now on the job, pending confirmation by the Senate. Otter said Little got a particularly good recommendation from perhaps an unexpected quarter, his competition. Otter said he asked every hopeful for the lieutenant governor’s post, “If not you, who?” Among all who were willing to answer that question, he said, “All said Brad.” Said Otter, “That might be the easiest legislative issue I have this year.”

Brad Little, 54, Idaho’s new lieutenant governor, is a five-term state senator from Emmett. He’s a University of Idaho graduate, owner/manager of a cattle ranch and farm, has served on many boards including the Idaho Community Foundation and the Idaho Woolgrowers Association, and is a popular member of leadership in the Senate. He and wife Teresa have two sons. “This is very humbling,” Little said of his appointment to the state post. “This is really an honor for me to serve. Teresa and I are delighted, and our family.” He added, “This is sure going to be a new adventure.”  

As a former lieutenant governor, Gov. Butch Otter today couldn’t resist a little joshing about his former job as he announced his appointee for the post, Brad Little. Otter said he made his pick from among “a terrific group of people that were willing to step forward and take that position, even after I told them, as the longest-serving lieutenant governor in the history of Idaho, I wanted to let them know that … the lieutenant governor rarely gets trusted with anything sharp or anything of value, and never the original of anything.” Amid laughter, he continued, “And even at that, there were many that did step forward and were very enthusiastic about it.”

So why would it be that a top priority for Gov. Butch Otter in his selection of a new lieutenant governor was a candidate who would run for that office in two years? Otter said that was key. There had been some speculation that the GOP governor might pick one of the Republican hopefuls considering a run for Congress in two years against newly elected Democratic 1st District Rep. Walt Minnick. That would have given that candidate a boost in statewide name recognition before making a congressional bid. “Certainly that could have been one of the cards we could have played,” Otter told reporters in response to questions at a news conference today. But, he said, “I was looking for not just a future candidate for some higher office, but I was also looking for a great partner, and a person that I thought could handle the responsibilities that I wanted to extend to that office.”

So that means, 1) Little is running for lieutenant governor in two years, not for Congress (he confirmed this); and 2) It sure sounds like Otter is saying he’ll run for another term as governor. “I didn’t say that, Betsy,” he said. “I was very careful about not saying that.” But he has been raising money “to replenish my campaign fund,” he acknowledged. And he did say, “I fully expect, if I’m a candidate for governor in the next race, and my term will be up in two years, I fully expect and hope that Brad will run for lieutenant governor and once again I fully intend to endorse him and campaign for him. So that was obviously one of the considerations. Because there were some people that said, no, they wouldn’t run for lieutenant governor again.”

Jim Risch, who took office as a U.S. senator today, had this statement on the appointment of Brad Little to his former job, lieutenant governor of Idaho:

“I am very pleased with the selection of Brad Little as my successor to the office of Lt. Governor.  He has been a hardworking State Senator representing District 11 and has the respect of Senators on both sides of the aisle.  He has the ability to lead this state when he serves as acting Governor and I know he will be very supportive of Governor Otter as his second in command.”

Idaho Gov. Butch Otter made big political news just now with his announcement of his pick for the state’s new lieutenant governor: Sen. Brad Little, R-Emmett. Little is  a rancher and Senate majority caucus chairman. “Nobody understands the issues, the personalities or the possibilities better than him, and nobody will work harder for the people of Idaho,” Otter said. Little pronounced himself “more than just delighted.” With many family members and supporters on hand watching, Little said, “I’m excited to join Gov. Otter’s team. We’ve got a lot of work to do … to get Idaho booming and boiling.”

Little said job creation will be his top priority as lieutenant governor. He’s taking over from former Lt. Gov. Jim Risch, who was sworn in today as Idaho’s newest U.S. senator, replacing the retiring Sen. Larry Craig.

Otter said he talked with about 30 possible candidates for the post, and part of Little’s appeal was that he was willing to commit to run for the position in the next election in two years. “I fully intend to endorse him and campaign for him,” Otter said.

Outgoing U.S. Interior Secretary Dirk Kempthorne said Monday that he’s already had discussions with his successor, Colorado Sen. Ken Salazar, and he promised a “smooth transition” at the Department of the Interior. “The president made it very clear in the cabinet meeting that we had the day after the election that this transition is going to be smooth, professional, we’re going to do everything we possibly can, because we want the next administration to be successful. If they are successful, America is successful,” Kempthorne told a large Boise audience at what he said is likely his last formal speech as interior secretary. He praised Salazar as “someone that is a good listener, he comes from the West - I believe people will like him. I think he’s a positive choice.”

Addressing the Boise City Club and the Idaho Environmental Forum, Kempthorne reflected back on a career in public service that took him from mayor of Boise to U.S. senator to twice-elected Idaho governor, and then to President George W. Bush’s cabinet. “I did not set out to become a cabinet secretary,” he said. But once he arrived there, he said, his experience in Idaho stood him well. “I had a frame of reference for every issue that we tackled at Interior, from water, public lands management, wildfires, the Endangered Species Act, just to name a few.” You can read my full story here at spokesman.com.

He’s not telling. Among the many questions Interior Secretary Dirk Kempthorne received from the audience at the Boise City Club/Idaho Environmental Forum today was what nickname President George W. Bush had for Kempthorne as a member of his cabinet. After much laughter, including plenty from the secretary, he seemed to hesitate a moment, and then said, “Some things stay in the Cabinet.”

Interior Secretary Dirk Kempthorne, former governor of Idaho, U.S. Senator and mayor of Boise, gave what he said was likely his last formal speech as interior secretary today, speaking to a large audience at a forum sponsored by the City Club of Boise and the Idaho Environmental Forum. Kempthorne had lots of reflections on his career and the issues he’s tackled. He also brought down the house with this story, which was met with loud laughter from all, including his blushing wife, Patricia:

“I took the oath of office in May of 2006. On one of those spring afternoons, Patricia and I were standing out on the balcony of that historic office, looking out at all of the monuments, which are now part of the jurisdiction. I will tell you that as a child I used to get those calendars that had the pictures of the monuments and I would just stare at them hoping some day I’d get to see ‘em. I was in my 30s before I ever got to see them, never suspecting I’d ever be responsible for their well-being. As we stood there on that balcony, I said to Patricia, ‘In your wildest dreams, did you ever think that we’d be standing here like this?’ And she said, ‘Sweetheart, you’re never in my wildest dreams.’”

Under the budget Gov. Butch Otter is crafting to present to state lawmakers, Idahoans next year would face longer waits for state services, some state field offices would be open just four days a week, and about 100 state workers would face layoffs. With the economic downturn pinching state tax funds, Otter is working on plans to cut state government well beyond the 4 percent budget holdbacks he already implemented this fall. Those fall cuts would become permanent, along with an additional $120 million in permanent cuts. But unlike the fall holdbacks, Otter’s plan for cutting the state budget in the coming year doesn’t rely on across-the-board cuts. Instead, each state agency would see an additional cut ranging anywhere from zero to 6 percent, for a total of nearly 10 percent in cuts in some areas. You can read my full story here in the Spokesman-Review.

Idaho prison officials are weighing their options, after a late-night riot at the Idaho State Correctional Institution last night wrecked a newly opened temporary housing unit that was scheduled to house 300 Idaho inmates the state hoped to return from out-of-state prisons. “At 11:30 p.m. last night (Friday) a group of inmates began destroying property inside a newly opened, temporary housing unit,” the Department of Correction reported. “The inmates overturned furniture, broke a control room’s windows and started a small fire.” Four inmates suffered minor injuries; the disturbance was declared under control at 1:05 a.m. Click below to read the department’s full announcement. Last year, Idaho lawmakers were informed that the state’s prisons, which had experienced years of relative calm, are seeing more violence due to gang activity. 

Continue reading Prison riot wrecks unit »

Winds have been gusting above 30 mph since mid-morning, and I just dodged a six-foot tumbleweed in the middle of Hill Road. Be careful out there…

Idaho’s highest-paid state employee isn’t the governor, a university president or a key scientist - it’s Boise State University head football coach Chris Petersen.    Petersen heads the list of a record 310 Idaho state employees who now out-earn Gov. Butch Otter. The list has swelled from 284 last year, in part because Otter opted to turn down his scheduled 3 percent pay raise this year and stick with last year’s salary of $108,727.

Petersen’s $806,998 salary, which comes from both state and private sources, is now more than eight times the governor’s salary. It’s risen with the success of BSU’s football program, ballooning from $400,000 two years ago - when Petersen also was the state’s highest paid employee - to $725,109 last year after the Broncos won the Fiesta Bowl. Idaho’s state salaries fall off quickly from Petersen’s, with BSU head basketball coach Greg Graham coming in second at $343,678. BSU President Bob Kustra places third at $299,416, followed by Idaho State University President Arthur Vailas, $286,650; BSU athletic director Eugene Bleymaier, $266,115; and University of Idaho academic faculty member and dean Aicha Elshabini, $230,838. Steve Shaw, a political scientist at Northwest Nazarene University, said the news recall’s Babe Ruth’s famous quote when asked why his contract gave him a salary bigger than that of the president, then Herbert Hoover. “I had a better year than he did,” Ruth retorted. You can read my full story here at spokesman.com.

Continue reading Coach is Idaho’s highest-paid worker »

Idaho Gov. Butch Otter says he’ll appoint the state’s lieutenant governor on Tuesday - that’s the same day that current Lt. Gov. Jim Risch will be sworn in as a U.S. senator and resign the state post - and Otter has named names of 16 people he’s talked to about the job. It’s not a complete list - there is an equal number of possibles whom Otter either hasn’t talked with yet or who didn’t want their names released. But the list is an interesting one that includes three North Idaho candidates, an array of folks from around the state, and two who’ve withdrawn from consideration but were still willing to have the news get out that the guv talked to them about the post.

Here they are, in alphabetical order:

State Rep. Scott Bedke, R-Oakley; Sen Dean Cameron, R-Rupert; Brad Egbert, a Rexburg businessman recommended by Sen. Jeff Siddoway; Senate President Pro-Tem Bob Geddes, R-Soda Springs; state Ag Director Celia Gould (withdrawn); longtime Otter pal and current state Department of Administration chief Mike Gwartney; former state Rep. Dean Haagenson, R-Coeur d’Alene; Sen. Mike Jorgenson, R-Hayden Lake; Sen. Shawn Keough, R-Sandpoint; Sen. Brad Little, R-Emmett; Sen. Patti Anne Lodge, R-Huston; Lloyd Mahaffey, an Eagle businessman with a high-tech background; Sen. John McGee, R-Caldwell; Rep. Mike Moyle, R-Star; Twin Falls car dealer Con Paulos (withdrawn); and former state Sen. Sheila Sorensen, R-Boise.

Mark Warbis, Otter’s communications director, said the governor hasn’t yet made his pick, but will make it by Tuesday. “He’s still in the process of discussing it with other people,” Warbis said. Otter has scheduled a press conference for Tuesday at 11 a.m. in Boise to make the announcement.

A district court went too far when it imposed a no-contact order on an offender that banned him from contacting any minor, including his own two young children, the Idaho Court of Appeals has ruled. No Idaho court had previously ruled on the issue, so the court turned  to the notorious Washington case of Mary Kay Letourneau for guidance, and found that the order violated the man’s “fundamental right to parent his children.” You can read my full story here at spokesman.com, and read the decision here.