ID 20 20 Investing in Idaho’s Futur e ________________________________________� ID 20 20
Why Idaho 2020? ________________________________________� ID 20 20
Our Process Business Leaders Input • Data Driven • World Class Research • Public Opinion Polling • ________________________________________� ID 20 20
Organizational Structure Executive Committee • Tommy Ahlquist – Gardner Company • Scott Anderson – Zions Bank • Bill Whitacre – Simplot • Cortney Liddiard – Ball Ventures • Damond Watkins/ Frank VanderSloot - Melaleuca • Skip Oppenheimer – Oppenheimer Companies • David Wali – Gardner Company Contributors • Geoff Wardle – Gardner Company • Cameron Arial – Athlos Academies • Nick Miller – Hawley Troxell • Ryan Armbruster – Elam & Burke • Todd Cranney – Riverwood Strategies • Travis Hawkes – Riverwood Strategies ________________________________________� ID 20 20 ________________________________________
Compare Idaho and Seven Competing States ________________________________________� ID 20 20
Business and Economic Index Competitiveness Business Tax Individual Corporate Property Tax Climate Index Income Tax Income Tax Arizona 7 (23) 5 (19) 5 (24) 4 (6) Colorado 6 (20) 4 (16) 3 (12) 7 (22) Idaho 5 (19) 6 (24) 4 (21) 2 (3) Nevada 1 (3) 1 (1) 1 (1) 5 (9) New Mexico 8 (38) 8 (35) 7 (35) 1 (1) Oregon 4 (12) 7 (31) 8 (36) 6 (15) Utah 2 (9) 3 (12) 2 (5) 3 (4) Washington 3 (11) 2 (6) 6 (28) 8 (23) Note: First number is rank among eight states. Number in parentheses is national rank. ________________________________________� Source: Tax Foundation, 2015 State Business Tax Climate Index ID 20 20
Economic Freedom and Outlook Indices Mercatus Center ALEC Economic - Fiscal Overall Economic and Regulatory Overall Freedom Outlook Policy Arizona 3 (9) 3 (11) 2 (5) Colorado 4 (22) 4 (19) 5 (21) Idaho 1 (4) 1 (6) 3 (6) Nevada 8 (29) 5 (20) 4 (10) New Mexico 6 (27) 6 (21) 6 (34) Oregon 5 (25) 7 (28) 8 (45) Utah 2 (8) 2 (10) 1 (1) Washington 7 (28) 8 (29) 7 (35) Note: First number is rank among eight states. Number in parentheses is national rank. ________________________________________� Sources: Mercatus Center, “Freedom in the 50 States;” ALEC, “Rich States, Poor States.” ID 20 20
Idaho Has High Income and Corporate Tax Rates Highest Individual Highest Corporate Tax Rates Tax Rate Arizona 4.54% 6.5% Colorado 4.63% 4.63% Idaho 7.4% 7.4% Nevada 0% 0% New Mexico 4.9% 7.3% Oregon 9.9% 7.6% Utah 5% 5% Washington 0% 0% ________________________________________� ID 20 20
Average Annual GDP Growth 4.5% 3.9% 4.0% 3.5% 2.9% 3.0% 2.8% 2.4% 2.5% 2.3% 2.0% 2.0% 2.0% 1.4% 1.5% 1.3% 1.3% 1.0% 0.5% 0.0% United Mountain Arizona Colorado Idaho Montana Nevada New Utah Wyoming States States Mexico ________________________________________� ID 20 20
Modernizing Investment Tools Surrounding states have: More tools available for municipalities to initiate projects • on their own Lower barriers to obtaining funding • More flexibility for urban renewal • • Lower tax rates Idaho: Infrastructure development options are either more • limited than those in comparable states or more difficult to enact Idaho could benefit by loosening funding restrictions in • smart, targeted ways in order to respond to the unmet demand for infrastructure investment ________________________________________� ID 20 20
General Obligation Bonds State Authorization Security/Collateral Repayment Types of Projects Other Notes State Statute Article VIII of the State Idaho 66.67% vote Constitution Chapter 1a Master Utah Majority Vote General Obligation Bond Act Article 11, Public Colorado Majority Vote Indebtedness Property tax or other Ad valorem property taxes Many public projects Assessed value is equal to one-third available revenues Majority vote that of the actual property value in New New Mexico Chapter come before voters Mexico. Available GO capacity is 1 22, Statutes on GO New Mexico every two years percent of statewide assessed Bonds for School coinciding with a state property value from the previous Districts election year minus outstanding bond debt. Chapter 350, Nevada Majority Vote Limits on size of GO bonds Municipal Obligations Arizona's Constitution limits the total General Fund backed debt to $350,000. Most debt in Arizona is from revenue bonds and lease-purchasing Article 9, Arizona Arizona financing. Constitution Chapter 287A, Local Oregon Majority Vote Government Borrowing Total indebtedness in a school 60% of qualified voters district cannot exceed 5% of the Property tax or other within local Ad valorem property taxes Many public projects value of the taxable property. Cities Title 39, Chapter 49, available revenues government. Total face a total limit of 7.5%, with 1/3 Section 110, Local Washington number of votes must designated for general municipal Government General be greater than 40% of purposes, certain utility purposes, Obligation Bonds number of votes in last and economic development state general election. purposes. ________________________________________� ID 20 20
Revenue Bonds State Authorization Security/Collateral Repayment Types of Projects Other Notes State Statute Title 50, Municipal Revenues from water, sewer, electric, or Revenues from water, sewer, Projects related to the revenue Idaho Majority Vote Corporations, Chapter other enterprise funds electric, or other enterprise funds source being pledged 31, Community Infrastructure Development Act Chapter 14, Local Revenues from water, sewer, electric, or Revenues from water, sewer, Projects related to the revenue Utah Authorization of governing body Government Bonding other enterprise funds electric, or other enterprise funds source being pledged Act Water and wastewater treatment Eligible borrowers: Colorado cities, towns, plants, pump stations, counties, water districts, water and sanitation Colorado Water Resources & Power Revenues from water, sewer, electric, or Revenues from water, sewer, dams/reservoirs, water rights, districts, metropolitan districts, water Various city and county Colorado Development Authority other enterprise funds electric, or other enterprise funds pipelines, hydro-electric projects, conservancy districts, water conservation charters wells, meters, reuse, storage districts, irrigation districts and any enterprise tanks, etc. created by the foregoing. 2001 Water Project Finance Act created the New Mexico Finance Authority. Makes Water Project Fund, which oversees water Title 2, Chapter 61, Projects related to the revenue New Mexico recommendations to the board (all Revenues from bond projects Revenues from bond projects development projects. Also has Public Project Part 5, Financing source being pledged legislators) for consideration. Revolving Fund, Local Government Planning Approvals Funds, and Dept. of Transportation Bonds. State of Nevada, Division of Revenues from bond projects. Also puts a Water and sewer projects, Note, it is a state department that helps Chapter 350, Municipal Nevada Environmental Protection, Board for lien on any property used for securing a Revenues from bond projects modernization, energy efficiency. localities get water projects. Obligations Financing Water Projects. loan for a water project. Typically does not require voter approval. Loans come through Water Projects related to the revenue Title 48, Special Taxing Arizona Revenues from bond projects Revenues from bond projects More about WIFA Infrastructure Finance Authority of source being pledged Districts Arizona. Various statutes depending on project. Voter approval not typically required. Only Revenue bonds subject to voter referral. Projects related to the revenue 285B.575, Revenue Oregon Revenue source Revenue source certain instances where bonds issued Revenue obligations are not. source being pledged Bonds for Water Fund, pursuant to "Uniform Revenue Bond Act." 367.030 Transportation Fund Legislative body of a city or town town Projects related to the revenue Title 39, Chapter 46, Washington passes an ordinance. Ordinance must Revenue source Revenue source ________________________________________� source being pledged Revenue Bonds then be ratified by the city or town. ID 20 20
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