So, the food sales tax exemption bill will head to the House floor again, this time without any mechanism for reimbursing local governments for the sales tax revenues they will lose. Last year, when the Legislature first passed the exemption, but only for two years, they allocated $46.6 million for state payments to local governments to keep them "whole." It seems like lawmakers could just keep the system they have in place now for reimbursing local governments, if nothing else. Plus, no matter what happens to the food tax bill this year, the existing food tax exemption won't expire until June 30, 2008, so the Legislature has one more year to figure out how to reimburse local governments. We'll see what happens when the bill, House Bill 93, hits the House floor this week.
Meanwhile, as the Casper Star-Tribune reported Sunday, there seems to be widespread support for Gov. Freudenthal's agenda on how the state can best invest its surplus revenues. K-12 education was atop the list of the public's priorities for increased spending, but infrastructure took the next two slots - with state highways coming in second place and water projects listed third.
Late last week, the bill setting eligibility standards for Hathaway scholarships (HB 97) cleared third reading in the House, although the Senate will probably substantially amend it. And the eminent domain bill (HB 124) cleared committee and is awaiting further action in the House.
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