Bill Description: Senate Bill 1420 would ‘perpetually appropriate’ an estimated $1 million annually from the tax on health insurance premiums to the state’s Medical Education Fund.
Rating: -2
Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?
Senate Bill 1420 would amend Section 33-3731, Idaho Code, to rename the “Medical Education Reimbursement Fund” to the “Medical Education Fund” and to add a source of revenue for the fund. It would say, “On and after July 1, 2028, one percent (1%) of the gross receipts by the state of the tax on health insurance premiums, as provided by section 41-402, Idaho Code, hereby perpetually appropriated to the medical education fund”.
The bill’s fiscal note estimates that “beginning in FY 2028, approximately $1 million would be transferred to help offset costs of undergraduate medical education.”
Another problem with this bill is that continuous appropriations lack the oversight and transparency inherent in the Legislative appropriations process. With limited review or scrutiny, continuous appropriations silently siphon money from the budget to fund programs that may (or should) be a lower priority than the state’s constitutional obligations.
(-1)
Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?
The bill would move money collected through a tax on insurance providers into a fund used to offset the cost of certain favored education choices. If the tax is providing excess revenue, the tax should be reduced, not redistributed.
(-1)
