James E Risch, U.S. Senator for Idaho

Fellow Idahoans,

Our economy continues to struggle and the head of the Federal Reserve says our country is headed toward a "fiscal cliff."  Major decisions are being pushed off to the lame-duck session, which is the period of time Congress is in session following the November elections.  During that time, there will be retiring or defeated members of Congress who will be making critical decisions that have long been put off.  Many of the issues that will need to be addressed between November 6 and the end of the year are:

• Tax Rate Renewal - The payroll tax cut and the current tax rates, which have been in existence for the last decade (referred to as the Bush tax cuts), are set to expire at the end of the year.  If these rates are not reauthorized, there will be a $6 trillion tax hike over the next 10 years.
  
  
• The Doc Fix – Due to a 1997 law, doctors face a nearly 30 percent cut in Medicare reimbursement rates in 2013.  This threat has prompted some physicians to stop taking Medicare patients altogether and more doctors could follow suit if Congress does not act.
  
  
• Reauthorization of a new Farm Bill - The House and Senate have yet to agree on a reauthorization and differing versions may have to be resolved during the lame duck session.
  
  
• Defense Cuts - Cuts in the amount of $55 billion are set to take place on January 2.  These cuts are a consequence of the Deficit Super Committee’s failure to reach an agreement last fall and will automatically take effect unless Congress acts.
  
  
• Dealing with the Debt Ceiling - Once again, with rampant spending and slowed revenues, we are rapidly approaching the debt ceiling.  When I started in the Senate, the debt ceiling was $10 trillion; it is now approaching $16 trillion.  That means each American’s portion of the debt has climbed from $34,731 to $50,151.  This is serious and threatens our national security.  Spending must be cut back.
  
  
• Passage of 12 annual spending bills for FY 2013 – These are the bills that Congress is required by law to pass each year in order to fund the federal government.  Since the Senate has not passed a budget in more than 3 years, these bills take on higher significance.

Unfortunately, it is more likely Washington will kick the can down the road on many of these issues, deferring a decision until the new year.  I remain committed to reducing our spending, reducing our debt load and rolling back regulations that hamper the private sector and job growth.

The following information on other issues may be of interest to you.

Senator Mike Crapo and I were successful in getting a 1-year extension of the Secure Rural Schools and Community Self-Determination Act and the Payment in Lieu of Taxes programs (also known as county payments and PILT) included in the Senate version of the transportation bill.  We have since followed up with a letter to the Senate conferees of the transportation conference committee, urging them to keep these vital programs in the final version of the legislation.

With nearly two-thirds of Idaho owned by the federal government, rural counties struggle to pay for services for their residents based on the diminished property tax revenues because of federal land ownership.  For nearly 100 years, the federal government would return a portion of the revenue it derived from timber, grazing or mining on public lands to those counties as payment in lieu of taxes.  But as the federal government unwisely scaled back the multiple use of these lands, the revenue rural counties used for road maintenance, education and law enforcement also declined.  Due to these changes, Congress was forced to step in and provide steady funding for the county payments and PILT programs to help counties avoid a crippling blow to their budgets.  Congress must act by the end of the year or this life-line will disappear.