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As with last week, all eyes are on the Joint Finance and Appropriations Committee as they offer more details on what’s getting cut in state government for the upcoming fiscal year.
The committee slashed $106.5 million across dozens of state agencies and offices. Those affect everything from juvenile corrections to wildland firefighting.
During the nearly three-hour hearing, legislators from both parties questioned the need for such broad-based cuts (though they differed in how the state could go about balancing the budget).
Many votes came in one short of a tie.
At one point, there was even confusion about whether Sen. Jim Woodward (R-Sagle) could try to add money back into the public safety budget.
Rep. Josh Tanner (R-Eagle), a JFAC co-chair, eventually called the motion out of order.
Coming up this week, expect JFAC to cement further cuts to FY27 spending plans as the working groups potentially find compromises to restore some of these reductions.
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JFAC cuts more than $100M from next year's budget
As I mentioned above, it was a pretty tense hearing on the third floor of the rotunda Friday.
Supporters of the cuts continued to say some budgets may only be trimmed temporarily. However, they said a balanced spending plan must take priority.
“This isn’t the end. This is the beginning and we’ll do the work we’ve been sent here to do,” said JFAC co-chair Sen. Scott Grow (R-Eagle).
As committee members called out their concerns over cuts to juvenile corrections, universities and mental health treatment courts, Rep. Tanner kept referring them to JFAC’s working groups.
That didn’t convince Sen. Kevin Cook (R-Idaho Falls).
“There’s nothing that says these…fixes that we’re supposed to do will ever make it to the floor,” Cook said.
And even if those restorations made it to the House and Senate floor, they’re likely to face tough opposition from budget hawks just a few months shy of their primary races.
Democrats held a press conference the day before JFAC passed the latest round of cuts, telling Republicans there is another alternative: use one-third of Idaho’s rainy day funds to smooth over the budget for this year and let the economy grow out of the significant hit to revenues due to years of income tax cuts.
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Bill to regulate children's social media use clears Idaho House
If you’ve been around the statehouse the past few years, you know that children and their use of smartphones has been a high priority for several lawmakers.
But past ways of going about protecting them have focused mostly on pornography.
House Bill 542 now targets the world’s largest social media companies, like Meta (Facebook and Instagram), Google (YouTube) and any other corporation earning more than $1 billion in annual advertising revenue.
Children 16 and under would have different account settings enabled by default, unless they receive parental permission to change them.
First, privacy settings would be set to their strictest levels. But also, these kids wouldn’t have access to the bottomless scrolling feeds that adds hours to our daily screen time.
I’m definitely not judging – I finally just got under a four-hour weekly average after it being much higher…
Despite clearing the House pretty easily last week, it could face some headwinds in the Senate.
The Mountain States Policy Center, a conservative think tank, warned the legislation could end up creating a treasure trove of data on teen users and unintentionally put their privacy at risk.
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Idaho House clears the way for fewer short-term rental rules
We’ve got dueling bills that could shape how cities and counties regulate short-term rentals, with the House getting its proposal off the ground first.
The plan approved Thursday would significantly limit what rules could be imposed on Airbnbs or VRBOs.
It’s easier to list the things that cities and counties COULD do rather than what wouldn’t be allowed:
The Senate’s version offers local governments far more options, but is still designed to help property owners avoid significant renovation bills, like being forced to install fire sprinklers. It’s yet to get a public hearing.
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SOTW:
Just like the rest of the western United States, plenty of people in Idaho are hoping, wishing, praying for rain in the valleys and snow in the mountains.
And it’s no different at the state capitol.
Democrats have been saying the economic weather has been pretty cloudy and gray for the past few months and that it’s time to break the emergency glass on Idaho’s rainy day funds.
Gov. Brad Little and Republican leaders on the other hand have maintained Idaho’s economy is in great shape, though they say that while also calling for permanent cuts to the budget.
As we’ve talked about before in this newsletter, Little took a lighter touch in his proposed spending plan by propping it up with one-time cuts and interest income on the state’s biggest bank accounts.
In December, he told those gathered at the Associated Taxpayers of Idaho’s annual conference “it’s not raining, maybe a cloud or two.”
But now, JFAC is going full bore into budget cuts that many state agencies under Little’s control have said could have dire consequences for Idahoans.
Some say they’ve even heard Little from his second floor office late at night, crooning in the crisp falsetto of Mayer Hawthorne.
“Well I wish that it would rain
Heavy rain down from the sky
Maybe then you wouldn't see the teardrops in my eyes”
The slow jam from Mayer’s 2009 debut album, “A Strange Arrangement,” prophetically lamented the loss of $4 billion in tax revenue in Idaho from year after year of income tax cuts.
“And all of the raindrops that fall down on my face
Erase all the memories of you and your embrace
I'll long for the moment that I lose this bitter taste
And I don't want you to see me this way”
Unfortunately for Democrats and anyone else in the state begging lawmakers to tap into our reserve accounts, JFAC looks likely to keep things bone dry.
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Other notable links from this past week:
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What a week for the number crunchers.
State senators ultimately passed a controversial tax conformity plan Friday morning.
Tack on another $155 million in the current fiscal year and $175 million for the next fiscal year in lost revenue, though supporters have long said they want to ensure everyday Idahoans get all four years of the law’s personal income tax breaks.
Tips, overtime, car loan interest, etc.
As pointed out by Senate Majority Leader Lori Den Hartog (R-Meridian), tax breaks for corporations go on in perpetuity – something that gives her heartburn.
Not to bury the lead*, but the Joint Finance and Appropriations Committee also signed off on another round of budget cuts for most state agencies.
By protecting K-12 education, Medicaid, prisons and state troopers, the 1% cut to current-year spending and 2% for next year will actually be disproportionate to the remaining offices of state government.
The vote count wasn’t particularly close – 14 to 6. But it does signal some hesitancy within a handful of Republicans who said they were worried about the unintended consequences of such broad spending reductions.
[*Before a bunch of print reporters stone me to death, I fully recognize y’all want to be different and spell it ‘lede.’ If anything, it should’ve been spelled phonetically as ‘leed’ because ‘lede’ is dumb jargon for the vast majority of people. /rantover]
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JFAC passes further budget cuts over concerns they're too deep
“That approach is not [precise],” said Sen. Kevin Cook (R-Idaho Falls). “It is taking a chainsaw to the budget. It’s not looking at accountability.”
Cook said he felt like the past few months of work he and the rest of committee members had done to find millions of dollars they thought could be cut had gone to waste.
Rep. James Petzke (R-Meridian) said he felt similarly. He’s not opposed to cutting deeper into Idaho’s budget, but Petzke said it shouldn’t be painful to everyday citizens.
You may remember this from previous newsletters, but the choice made by JFAC leaders is a philosophical one.
Rep. Josh Tanner (R-Eagle) has repeatedly said he doesn’t want to follow the governor’s lead by balancing the budget mostly through one-time means.
“[The goal is to make] sure that we do have a slight, slight cushion on the bottom line and making sure our budgets are as [structurally sound] as we can possibly make them,” Tanner said Friday.
Keep an eye out for the floor debates on these bills.
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Idaho House passes bill to repeal anti-discrimination laws
I guess you could call it an anti- anti-discrimination bill.
Cities and counties in Idaho would no longer be able to pass nondiscrimination ordinances that apply to protected classes of people beyond what the state has outlined.
Right now, Ada County, Idaho’s largest, as well as 12 cities, have such protections covering someone’s sexual orientation and/or gender identity.
As of late 2024, 24 states and Washington, D.C. had passed similar legislation, while many others recognize these protections through a U.S. Supreme Court case.
Idaho isn’t one of them.
State lawmakers have repeatedly punted on the Add the Words campaign for more than a decade.
Supporters of the bill on the House floor said that’s mostly because they don’t think religious business owners should have to cater to people living their lives in ways they’re deeply offended by and disagree with.
“This isn’t about acceptance, this is about dominance. And I just see this as setting the record straight,” said Rep. Clint Hostetler (R-Twin Falls). “We cannot abuse or impose the will of anything against our faith community.”
If passed by the Senate and signed into law, the attorney general’s office could sue a city or county for continuing to uphold an ordinance. Private citizens could also sue.
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Idaho governor fires human rights advocate after immigration posts
Lastly, a story that went a little bit under the radar.
Gubernatorial appointments typically don’t get much attention at the statehouse. Nominees answer a few questions in committee, get a photo op and listen to a nice speech when they’re brought up on the Senate floor.
But two far-right activists derailed the reappointment of Estella Zamora, who had served on the Idaho Human Rights Commission since the ‘90s.
They circulated a couple of Facebook posts urging ICE to leave Minneapolis and another comparing Proud Boys and Ku Klux Klan members to gangsters.
“We should draw a line and say, ‘Somebody with these views should not be in this government position,’” said Brian Almon, a current Eagle Public Library Trustee and communications staffer for the state GOP.
Zamora made her initial committee appearance on a Wednesday. Her posts were shared by Almon and Matt Edwards, the host of a webshow called the Idaho Signal, hours later.
By Friday, Senate Pro Tem Kelly Anthon (R-Rupert) tweeted that her appointment was “Not. Going. To. Happen.”
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SOTW:
“Cry,” sings out Bronski Beat’s Jimmy Somerville in his perfectly crisp falsetto, just ahead of the drums and synth.
Again.
And a third time.
“Smalltown Boy” follows the semi-autobiographical experiences of Somerville and the other gay men he knew growing up in 1980s Scotland and England.
“Mother will never understand why you had to leave
But the answers you seek will never be found at home
The love that you need will never be found at home”
Throughout world history, governments have regularly used the power of the state to discriminate against their citizens based on sexual orientation or gender identity. And LGBTQ artists have shared their experiences of pain, exclusion and the need for belonging.
Until 2003, it was illegal in many states – including Idaho – to have gay sex. Lawmakers here described it as the “infamous crimes against nature” statute that’s only recently been chopped from code books.
You can read my deep dive into that saga from 2021 here.
As we discussed earlier in the newsletter, Idaho legislators are trying to repeal the few protections the LGBTQ community has in the state.
Rep. Barbara Ehardt (R-Idaho Falls) said she ran for an Idaho Falls City Council seat as it was debating passing its own antidiscrimination ordinance in 2013. She said supporters were looking for public accommodations – not housing or employment protections.
“Nobody was losing their job…nobody was getting kicked out of their housing [for being gay],” Ehardt said Thursday.
Fourteen percent of respondents said housing discrimination based on sexual orientation “occurred frequently in their communities” according to a 2011 survey of housing service providers as outlined in this UCLA report.
And we have a much more recent example of fatal acts of discrimination in Idaho.
You don’t have to look any further than the story of my former U of I classmate, Steven Nelson. He was robbed of his clothes, money and car before being beaten to death, or should I say kicked to death via steel-toed boots, at Lake Lowell in 2016 because he was gay.
His killer was convicted on both state charges and under a federal hate crime statute. He pleaded guilty and asked for a longer sentence.
At the end of the “Smalltown Boy” music video, Somerville got to start his new life away from his hometown where he felt unwelcome, while still contending with the haunting refrain to “run away, turn away.”
If this bill passes, I hope we don’t hear from the next Jimmy Somerville in the near future.
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Other notable links from this past week:
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First, I can’t recommend enough that you avoid getting the flu at all costs. Warsh your hands more frequently, as my grandparents love to say, transition away from touching your face as a nervous tic and stay away from large gatherings of people…like the legislature.
Hopefully, this means my immune system will be good to go for several more flu seasons.That being said, this newsletter should hopefully be back to full strength next week.
In the meantime, we had some significant developments on the budget front in territory that’s consistently been protected these past few months.
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Additional new budget cuts would force state to furlough Idaho prison guards, state police
Public safety and K-12 education have generally been the last pieces of Idaho’s budget to be affected by cuts under the Little administration.
Documents released Friday show a proposed 2% cut could result in furloughs for each and every commissioned Idaho state trooper, as well as the 1,200 prison staff within the Idaho Department of Correction.
The cut would also eliminate the state police’s SWAT unit, according to the Idaho Capital Sun.
Rep. Josh Tanner (R-Eagle), a budget committee co-chair, told the outlet on Friday that he’s “extremely nervous” about cutting those agencies.
“…I do not think it would be wise to cut either one of those agencies, but it is smart for us to have all of the cards on the table so when we make a decision we can look at it as a whole and then go down from there,” Tanner said.
Of course, the governor’s office maintains that legislators don’t have to make these further cuts at all if they follow his proposed budget presented last month.
“These cuts are going to be pretty detrimental to agencies’ operations and, likely, services,” said Lori Wolff, the governor’s budget chief. “It’s really late in the year to be doing an additional 2% cut, and it’s likely going to look like either layoffs or furloughs (for many state agencies).”
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Idaho public schools, Medicaid program now told to plan for new state budget cuts
Gov. Brad Little tapped K-12 education as his highest priority by giving it a pass during the recent rounds of cuts to state agencies.
Now that it’s the legislature’s turn to put their mark on Idaho’s budget, the Joint Finance and Appropriation Committee co-chairs aren’t ready to dub it a sacred cow.
As Clark Corbin from the Idaho Capitol Sun writes, the letter from JFAC leaders told Superintendent of Public Instruction Debbie Critchfield, as well as the state’s Medicaid director, to find 2% in their budget to cut on top of previous holdbacks levied by the governor.
That would add up to $55 million for public schools and nearly $20 million for Medicaid.
Corbin spoke with Sen. Scott Grow (R-Eagle), a JFAC co-chair, on Thursday. Grow told him the latest hesitancy on the budget is coming from further uncertainty in how much it will cost Idaho to conform with federal tax code changes (more on this later in the newsletter).
For her part, (and I’m paraphrasing here) Superintendent Critchfield said, nah, we’re good.
“I will not be recommending further cuts to the public schools budget,” Critchfield wrote in a Thursday letter to the JFAC co-chairs. “The public schools budget is more than numbers on a spreadsheet. It represents every one of our students, classrooms, teachers and communities.”
Idaho Education News’s Ryan Suppe reported on her letter in which she went on to say the public school budget is already “in line with the state’s fiscal reality.”
Critchfield pulled a $50 million request from her budget last year that would’ve gone to boost special education funding. Drops in enrollment have also saved the state money.
Of course, it’s ultimately up to the legislature how much money gets distributed to public school districts across the state.
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New tax conformity bill adds more lost revenue for Idaho
This is the kicker for a lot of what we’ve seen go on this week.
The House Revenue and Taxation Committee introduced the latest version of the tax conformity bill that’s trying to find a middle ground to hold on to.
As it’s written, legislators would have to raid the couch cushions for $155 million in the current fiscal year because these benefits would apply retroactively.
For the upcoming fiscal year beginning July 1, that’ll be another $175 million.
All of these figures are just projections, though.
The legislature’s budget staff have pointed out that the state just doesn’t have great data on the amount of income tax we levy on tips and overtime pay. That makes it really hard to get an accurate picture of how much revenue Idaho might forego during this time.
Estimates from local and national groups are all over the place as well, with some expecting the cost to nearly double.
As someone who’s worked in the service industry, I can tell you that people getting tipped in cash didn’t always report that income every night. Some did, though, so they could leverage their reportable income to take out loans.
With this tax break only lasting for four years, I’d be curious if servers and delivery folks will still hold back in reporting cash tips in case we switch back to the old system.
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SOTW:
We’ve finally got our hands on the studio version of “Forever Idaho (Esto Perpetua),” celebrating the state’s role in America’s 250th birthday this year.
I can see some of our most esteemed founders tapping their toes and singing along, like President Abraham Lincoln, who gave us territorial status in 1863, or Idaho’s second territorial governor, Caleb Lyon, who stole the capitol from Lewiston and moved it to Boise.
“To Coeur d’Alene’s
calm waters below.
Spuddy Buddy waves
with a smile so wide.
Sharing our story with American Pride.”
Who doesn’t enjoy product placement in a song about platitudes and patriotism?
Another notable excerpt seems to reference former President Barack Obama, giving it a bipartisan, feel-good flavor.
“Generations working hard,
hand-in-hand.
Building our dreams saying
“Yes, we can!”
Sadly, this absolute banger of a song nearly didn’t make it to fruition.
During a meeting of the America250 working group last October, just one member wanted to pay $6,000 for it to be produced and sheet music handed out to legions of elementary school students to play on their recorders for the rest of eternity.
But by the grace of whatever spiritual power you might believe it, the committee, which hasn’t been subjected to the governor’s budget cutbacks, found a way.
Expect to hear this blasted at every America250 celebration over the coming months.
For my money, I prefer Fiona Apple’s rendition of our actual state song, ‘Here We Have Idaho,’ which she recorded for an episode of This American Life in 2023. Skip to about 60:42 for it to start.
Please share your musical critiques with me, as well as anything else, at jdawson@boisestate.edu.
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OTHER NOTABLE LINKS FROM THIS PAST WEEK:
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If you've been wondering why you haven't seen my byline or heard my voice much this week (let's be honest, no one is thinking that), it's because I got hit with that nasty bug going around. That's not to get sympathy, it's just to explain why this week's newsletter is going to look a little different.
I'll be leaning on my colleagues here and other reporters who do a great job covering the statehouse so you, dear reader, are still as up to date as possible on what's happening within state government.
With that, let's start with everyone's favorite subject: tax conformity.
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Idaho state lawmaker proposes full adoption of ‘Big Beautiful Bill’ tax changes via Idaho Capital Sun
Thanks to Laura Guido for covering this at 7:30 a.m. on Friday. Rep. Jeff Ehlers (R-Meridian) introduced a bill that would put Idaho in near total unity with the federal tax changes made in the One Big Beautiful Bill.
No tax on tips, overtime or interest on auto loans? Check.
An enhanced deduction for seniors? Yup, not to mention many of the business deductions included in the legislation.
In all, Ehlers told the House Revenue and Taxation Committee the changes would cost $155 million annually, which is proportionally lower than other states are estimating, as well as forecasts by nonprofit tax groups.
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Idaho's health and welfare committees tapped to cut Medicaid
Legislators don't take off Martin Luther King Jr. Day/Idaho Human Rights Day and they didn't waste time getting to business.
Rep. Josh Tanner (R-Eagle), the new co-chair of the Joint Finance and Appropriations Committee, visited House Health and Welfare, telling them they needed to come up with $22 million in cuts to Medicaid to help balance the budget.
“I don’t like to budget on hope or assumptions that we’re going to grow our way out of this economically,” said Tanner. “At some point in time we have to go, ‘Nope, [these programs] need to get cut right now.”
Those who've paid attention to his remarks over the last several months and years know he's a proponent of completely gutting Medicaid expansion, which Idaho voters overwhelmingly passed into law in 2018. Gov. Brad Little has said that's a line he's not willing to cross.
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Idaho Supreme Court grills challengers of private education tax credit
Friday didn’t seem like an easy day for those hoping to end Idaho’s private school subsidy tax credit.
As Idaho Education News’s Ryan Suppe (pronounced SOUP-ee for anyone curious) reports, multiple state supreme court justices seemed skeptical of the case.
Public school advocates, who filed the case last year, argue the Idaho Constitution requires the state support “a” system of public schools, which would exclude subsidizing private education.
“I’m struggling with your argument,” said Justice Colleen Zahn, noting the state constitution doesn’t prevent the latter.
Both she and Justice Gregory Moeller questioned whether the plaintiffs even had standing to bring the case in the first place.
Definitely read through Suppe’s story for all the details.
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SOTW:
Rats.
Few things get western Treasure Valley residents up in arms more than our newest neighbors.
These Norwegian rats, now called Eagle rats for their favorite locale, have become such a nuisance that the issue has reached the Idaho capitol where legislators held a rat summit on Thursday.
Ideas have been floating around in recent months to authorize the creation of rat abatement districts, which may require legislative action to become a reality.
If nothing is done soon, the problem may balloon out of control -- including the evolution of musical theatre rats as foreseen by the '90s Nickelodeon cartoon, "Hey Arnold!"
Boise may even get its own spinoff of everyone's hero, Pizza Rat. Happy 10th anniversary, buddy. I'd personally vote for croqueta rat.
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Other notable links from this past week:
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If you've been wondering why you haven't seen my byline or heard my voice much this week (let's be honest, no one is thinking that), it's because I got hit with that nasty bug going around. That's not to get sympathy, it's just to explain why this week's newsletter is going to look a little different.
I'll be leaning on my colleagues here and other reporters who do a great job covering the statehouse so you, dear reader, are still as up to date as possible on what's happening within state government.
With that, let's start with everyone's favorite subject: tax conformity.
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Gov. Little calls for further funding cuts in annual speech
Of course, the biggest thing to happen this past week was Gov. Brad Little's state of the state address, during which he coached a group of kids in the audience to scream out SIX SEVEN to be part of the zeitgeist. Can't blame a guy for trying. It might be the only way to rid it from pop culture once and for all.
More seriously, Little maintained his line that there might be a few clouds in the economic sky, but it ain't raining yet. He didn't propose dipping into the state's various rainy day funds adding up to about $1.3 billion, which amounts to 23.7% of Idaho's budget.
Instead, Little is syphoning off interest income to several state funds to help cover a projected deficit, plus making one-time cuts to big spending programs that offer grants to local governments for transportation and clean water projects.
He also wants lawmakers to further cut Medicaid by $22 million on top of the service cuts implemented last fall. However, he doesn't support cutting the state's voter-approved Medicaid expansion program that's on so many legislators' chopping block.
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New JFAC co-chair calls Little's budget unbalanced as revenues rise
Relations between the legislature and the governor don't usually get frosty in the first week of the session, but the Joint Finance and Appropriations Committee’s (JFAC) new co-chair, Rep. Josh Tanner (R-Eagle), took the first shot in a press release sent out Tuesday.
Tanner declared that Little's budget wasn't balanced because it relies on "one-time gimmicks, spends more than the state takes in on an ongoing basis, and leaves Idaho with the lowest ending fund balances in nearly a decade."
He also took exception to the $155 million figure the governor settled on to fully comply with federal tax changes. Tanner wants the legislature to cut the budget far more deeply, but he also on Thursday voted to support a revenue target that's about $150 million higher than what Little put forward in his budget.
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Draft audit finds Idaho universities largely comply with anti-DEI laws
We got our hands on a draft copy of this audit before it was officially released. It found a handful of potential violations of Idaho's laws trying to root out diversity, equity and inclusion practices from state government.
Lewis-Clark State College got out unscathed from the audit, but its neighbor to the north, University of Idaho, had several things flagged. Boise State and Idaho State also got dinged for a couple of things each.
There are a lot of details to this, so please check out the link if you're interested.
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SOTW:
Reading between the lines, Gov. Brad Little's budget seemingly channeled the immortal words of TLC's Chilli and T-Boz: "I don't want no [scrubs]."
Despite hours upon hours of work put towards solving Idaho's physician shortage during interim committee meetings, the Little administration said it just didn't have the cash this year to expand existing medical school partnerships nor act on potential new ones, regardless of whether they were hangin' out the passenger side of their best friend's ride hollerin’ at the governor.
To be sure, the problem is serious. Idaho has consistently ranked at the bottom of states in the number of physicians per capita.
Those aged 60 and older make up nearly a quarter of Idaho's population and we're among the top 10 states the cohort flocks to.
The problem has been further exacerbated among OB-GYNs after the fall of Roe v. Wade in 2022. Thirty five percent of them have fled the state.
If state lawmakers can't pony up more cash to pay for med school seats, maybe the roles get reversed, a la Dr. Chilli:
Well, a scrub checkin' me, but his game is kinda weak
And I know that he cannot approach me
'Cause I'm lookin' like class and he's lookin' like trash
Can't get with a deadbeat ass
For anyone new here, or those who just want to reminisce about past Song of the Week choices, you can find last year's playlist here. If you're hungry for more, here they are for 2024 and 2023.
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Other notable links from this past week: