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Monks Revenue Sharing Bill Up for Hearing Monday in House Revenue & Taxation Committee

Posted By Johanna M. Bell, Friday, February 22, 2019

House Bill 154, the revenue sharing bill sponsored by Rep. Jason Monks, R-Nampa, will be up for hearing the morning of Monday, February 25 in the House Revenue & Taxation Committee at 9:00 a.m.

Last Friday, the AIC Board of Directors voted to oppose House Bill 154.  To see the impact that the bill would have on your city's distribution please click HERE.

This spreadsheet shows what cities would have received under the current formula in FY 2018 versus House Bill 154 (column labeled 2018 Proposed Distribution). 

AIC asks city officials to contact members of the House Revenue & Taxation Committee (listed at bottom) to respectfully ask that they oppose House Bill 154.

House Bill 154 would dramatically change how revenue sharing funds are allocated to cities and counties.

  • The bill establishes a base for every quarter, which is the amount the city received in FY 2019.
  • The bill also provides that each city’s revenue sharing dollars on a per capita basis are calculated annually.
  • If total revenue sharing funds decrease from the same quarter of the previous fiscal year, then only cities with amounts in excess of the base would see a proportional decrease.  Once all cities have reached the base, then further reductions would be based on their percentage of population.
  • If all cities are below their base due to a decline in revenues and then revenues grow from the same quarter of the previous fiscal year, cities would receive a proportional increase until they return to the base.  At that point when all cities have returned to the base, then excess revenue would be allocated to those cities with a below average per capita amount.
  • Growth above the base over the same quarter of the previous fiscal year would mean cities that are at or above the per capita distribution would receive the same amount as the same quarter of the previous fiscal year.  Cities that have below average per capita distributions would receive new revenue in proportion to their share of statewide population.

Revenue sharing needs to operate on a formula that is easy to understand and predictable for budgeting purposes.  House Bill 154 fails on both counts.  It is too complicated and there are too many moving parts to make the formula understandable.  It also fails to provide needed predictability required for local government budgeting. 

Over the past six fiscal years, if House Bill 154 had been in place:

  • Thirty-six (36) cities would not have received any increased revenue and the value of their revenue would be substantially diminished by inflation;
  • Of the 36 cities not receiving any increase, 19 would actually see their per capita amount increase over the six years due to declining population, meaning they would likely never see additional revenue;
  • Fifty (50) cities received additional funds every fiscal year, but to predict their revenue they would have to calculate each city’s population and per capita amounts; and
  • Some cities close to the per capita average would receive additional revenue every other year.

 

 Fiscal Year  # of Cities above the Average Per Capita 
 FY 2012 76 
 FY 2013 84 
 FY 2014 95 
 FY 2015 80 
 FY 2016 77 
 Fy 2017 100 
 FY 2018 91 



We encourage city officials to contact members of the House Revenue & Taxation Committee and respectfully ask that they oppose House Bill 154.  The committee members and their emails are listed below.

Rep. Gary E. Collins, Chair — gcollins@house.idaho.gov

Rep. Thyra Stevenson, Vice Chair — tstevenson@house.idaho.gov

Rep. Mike Moyle — mmoyle@house.idaho.gov

Rep. Robert Anderst — randerst@house.idaho.gov

Rep. Thomas Dayley — tdayley@house.idaho.gov

Rep. Greg Chaney — gchaney@house.idaho.gov

Rep. Terry Gestrin —  tgestrin@house.idaho.gov

Rep. James S. Addis — jaddis@house.idaho.gov

Rep. Sage G. Dixon — sdixon@house.idaho.gov

Rep. Rod Furniss — rfurniss@house.idaho.gov

Rep. Priscilla Giddings — pgiddings@house.idaho.gov

Rep. Tammy Nichols — tnichols@house.idaho.gov

Rep. Doug Ricks — dricks@house.idaho.gov

Rep. Mathew W. Erpelding — merpelding@house.idaho.gov

Rep. Jake Ellis — jellis@house.idaho.gov

Rep. Rob Mason — rmason@house.idaho.gov

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