Budget chief: Otter will propose elimination of state departments, programs

Gov. Butch Otter

Gov. Butch Otter

Butch Otter’s budget director says the Idaho governor will ask lawmakers to eliminate state programs and departments when he gives his State of the State Address early next year.

Although details won’t be released until the Jan. 11 speech, budget chief Wayne Hammon told the Associated Taxpayers of Idaho that he predicts state employees will not get pay raises in fiscal 2011, and there will be additional efforts to cut benefits.

Also, the 2010 revenue forecast is expected to be revised lower again in January.  It’s been amended downward from $2.66 billion in December 2008, to $2.55 billion in February, to $2.37 billion in September.  After a 15.3 percent decline in revenue in fiscal 2009, the current official estimate for 2010 shows a drop of 3.6 percent.

Otter last week warned agency directors to prepare for more holdbacks in the current fiscal year and asked them not to fill vacant jobs except in cases of emergency. The governor already has ordered $99 million in holdbacks, and current estimates say the budget is still $39 million in the red.

Otter is considering other courses of action as well, including selling state assets, such as timber and buildings, and privatizing some state services. (Idaho Statesman)

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