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Luma challenges prevent Idaho from distributing $101 million in interest earnings  – Idaho Capital Sun

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Luma challenges prevent Idaho from distributing 1 million in interest earnings  – Idaho Capital Sun


The state of Idaho has been unable to distribute more than $100 million in interest payments to state agencies due to issues implementing the new Luma business system, State Treasurer Julie Ellsworth said. 

The interest is earned from state funds that are not yet being spent. Typically, the interest is distributed to agencies monthly. But the Idaho State Treasurer’s Office hasn’t distributed the interest payments since July 1 because staff have been unable to verify agencies’ fund balances through the Luma reports, Ellsworth said in an interview at the Idaho State Capitol in Boise. 

Through the end of December, the withheld interest added up to $101.6 million, Ellsworth said. Once the interest from January is calculated, the total could exceed $120 million, she said.

“I can’t distribute it until I have complete confidence in the fund account amounts in every state agency,” Ellsworth said. “That was where the hiccup is.”

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Ellsworth told the Sun the issue only affects state money, not local funds. 

Idaho State Controller Brandon Woolf said his goal is to resolve the interest payment issue by the end of this month. 

After errors hamper reports, Idaho State Controller’s Office says new Luma system works

Ellsworth told the Sun she was on the verge of “panic territory” in December over Luma, the lack of automation and the amount of reconciliation being done manually. But since then, Ellsworth said her confidence has increased as the different agencies’ staff have worked together and diagnosed challenges. 

Ellsworth also emphasized that the state’s funding is secure and in safe keeping – it’s just a matter of verifying fund balances to calculate distributions. Once the fund balances are verified, the interest can be distributed, she said. 

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Ellsworth said Luma has great promise and can increase the security and resilience of the state’s finance and business systems. But for now, Ellsworth said Luma is not living up to its potential. 

“It’s a shiny new spaceship that will take us to soaring heights, however this expensive spaceship is currently parked on a trailer and being hauled out daily just to get the basic tasks in state government completed,” Ellsworth said in an interview. “This is not flying to the moon.”

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What is the State of Idaho’s Luma system?

Ellsworth said her office is facing numerous challenges related to the implementation of Luma, a new statewide business system that all state employees and state agencies are tied into.

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State officials launched Luma on July 1, replacing a pair of old state business systems that dated to 1987 and 1988. Those old systems had outlived their useful lifecycles and were more vulnerable to security threats, state officials have said. 

Luma isn’t just a computer program or a piece of software. It is a massive, statewide business system that centralizes all of the state’s business, budget, procurement, payroll, financial management and human resources system.

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The Idaho Legislature authorized the creation of Luma in 2018 through House Bill 493, estimating the new system would cost $102 million spread over five years. 

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Luma is based in the Idaho State Controller’s Office. Woolf, the Idaho state controller, said Luma does work. On Feb. 6, Woolf told the Idaho Legislature’s Joint Finance-Appropriations Committee that Luma has processed more than 473,000 invoices worth more than $7.1 billion since July 1.

But when the state went live with Luma in July, fewer than 50% of the state’s employees had completed basic level training on Luma, the Sun previously reported

Since July, there have been a series of challenges, procedural errors and data entry errors that hampered Luma’s launch. 

Some of the challenges included:

There have been enough publicly disclosed errors that Speaker of the House Mike Moyle, R-Star, called Luma a joke during a November meeting of the Legislative Council. On Friday, Moyle and a bipartisan group of eight legislators submitted a letter asking the Office of Performance Evaluations undertake an evaluation of Luma and provide a report to the Idaho Legislature. 

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In his presentation to JFAC this month, Woolf stressed that Luma is operational, but still has yet to be optimized. 

“A massive change like this does take time,” Woolf said. “And it does take time for the dust to settle and to continue to optimize and to make these improvements. Is it where we want it to be right now? I would say no, but I think we have made great progress.”

Rep. Wendy Horman, the Idaho Falls Republican who co-chairs JFAC, expressed her appreciation for Woolf and his team meeting with legislators to identify challenges and create timelines for addressing them. Horman said progress is being made. But she emphasized that setting the state’s budget hinges on accurate, reliable state data.

“As you know we can’t do our business unless we have accurate, verifiable data and I appreciate the work that your office has put in recently to making sure we are verifying the numbers that we are dealing with,” Horman told Woolf on Feb. 6. 

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What is the latest with Luma’s implementation?

Teams from the Idaho State Controller’s Office and Idaho State Treasurer’s Office have been meeting for weeks to diagnose challenges associated with Luma.

In a joint interview at the Idaho State Capitol on Feb. 8, Ellsworth and Woolf described several ongoing challenges when it comes to sharing data between the Idaho State Controller’s Office and Idaho State Treasurer’s Office using Luma. 

The $101 million in withheld interest payments to state agencies was one of the challenges.

According to documents Ellsworth and Woolf provided to the Sun, other challenges include:

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  • The need for state employees to take extra steps to manually reconcile bank activity that should be automated under Luma.
  • The need to manually provide partial payroll transaction data that should be automated to the Idaho State Treasurer’s Office.
  • Historical payment details were missing in Luma reports provided to the Idaho State Treasurer’s Office. The Idaho State Controller’s Office has now manually provided the missing information, and a review for missing information is still in progress.
  • The need to reconcile historical transaction data. Additional monthly reconciliations cannot be started until the reconciliation process is automated and the historical transaction reconciliation is complete.

In addition to those challenges, Ellsworth told the Sun that the Luma system often “times out” or glitches during lengthy transactions and shuts down.



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Idaho Falls City Council delays vote on proposed alcohol ordinance – Local News 8

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Idaho Falls City Council delays vote on proposed alcohol ordinance – Local News 8


IDAHO FALLS, Idaho (KIFI) – A controversy is brewing as the City of Idaho Falls reviews its alcohol ordinance.

The goal is to consolidate four existing ordinances for beer, wine and liquor into a single law and ensure compliance with state code.

However, at its meeting last Thursday, the Idaho Falls City Council unanimously voted to remove the proposed ordinance from its agenda, in order to receive and consider additional public comment.

The proposed ordinance would:

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1. Require commercial establishments selling, dispensing or permitting consumption of alcohol – including beer, wine or liquor – to have an alcohol license, alcohol catering permit or a charitable event permit.

2. Business events with 20 or less employees consuming alcohol at the business would be allowed.

3. Require alcohol servers to complete training every three years.

4. Individuals who violate the law could be charged with a misdemeanor.

Idaho Falls City Council President Jim Francis said the changes were the culmination of months of collaboration between law enforcement, business owners and city attorneys.

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“We wanted to provide a safe environment – the primary point here – for public gatherings,” Francis said. “We recognize that certain antiquated elements of the current code are overly restrictive and needed to be addressed. We wanted to make the code more accessible to the public. We needed to address over-pouring issues. We wanted to reduce penalties where possible for violations, particularly the first offenses, and yet make the code clear enough to be enforceable consistently by law enforcement.”

But City Council Member John Radford said the changes represent an overreach by city government.

“I believe it’s a bad policy. What problem are we solving in the name of trying to solve a non-problem?” Radford said. “We’re becoming big brother around alcohol in your private property. I’m concerned that landlords will be at risk of being charged with a misdemeanor if they knowingly, which I made sure that was in there, because that is what we’ve been talking about, allowed people to drink in our business. We will be outside the norm of Idaho cities. This is a big step, and I don’t think the public has weighed in on this.”

At a City Council Work Session on June 1, Idaho Falls Chief of Police Bryce Johnson cited an increase in alcohol-related crime – particularly downtown – as a reason for the changes.

“DUI is there, but this would include sexual assaults, assaults, batteries, disturbances, urination, public vandalism, shooting – all sorts of crimes,” Johnson said.

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But business owners are concerned about the potential impact on commercial enterprises.

“The ordinance doesn’t address the real problem – which is people drinking … at one event and then showing up in a bar or restaurant already hammered and causing problems anyway,” ” said Terri Ireland, representing the Idaho Falls Downtown Merchants Association. “The industry is really well-regulated by state and local laws already.”

The City of Idaho Falls began the process of updating its alcohol ordinance in January 2026, seeking input from community stakeholders.

Multiple community members spoke out about the ordinance.

For more in-depth information, you can read the full 39-page proposed alcohol ordinance here.

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Idaho attorneys rebuff DOJ threat to prosecute Secretary of State in voter roll dispute

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Idaho attorneys rebuff DOJ threat to prosecute Secretary of State in voter roll dispute


A simmering dispute between Idaho’s top elections official and the U.S. Department of Justice escalated this month after federal officials warned Secretary of State Phil McGrane about possible prosecution tied to non-citizens voting in Idaho.

The Justice Department sent a letter earlier this month threatening McGrane with prosecution. The warning came amid a broader conflict between the Trump administration and McGrane, whom the administration has sued over his refusal to provide unredacted voter rolls to the federal government.

Idaho’s chief of civil litigation, James Craig, responded on July 10. In a letter first reported by the Idaho Statesman, Craig pushed back on the federal warning, writing, “Insinuations of criminal violations of the federal election laws are not well taken,” and asking the department to “stop threatening your friends in Idaho.”

Craig also requested that the lawsuit against McGrane be dismissed and criticized the Justice Department for sending its letter directly to McGrane rather than to the Idaho attorney general’s office.

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The attorney general’s office said the state has already referred 15 cases of possible non-citizen election violations to the Justice Department but is not aware of any of them being prosecuted. Craig’s letter ends by asking the department to do so.



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Idaho Property Taxes are Here to Stay

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Idaho Property Taxes are Here to Stay


The Idaho Legislature won’t eliminate property tax next year. My bold prediction. There will be a few bills introduced, a lot of chatter on talk radio and online, and then action will be kicked down the road. If it looks like a winner in the 2028 Election, it’ll sail through in session a few weeks before the 2028 Primary. Wet an index finger and raise it in the air. Then vote.

As an old Libertarian (with a capital L), I’m familiar with the basic argument. If you own it, why do you have to pay rent? The answer always comes back to, “It’s the best system we have to fund local governments”. Forms have been in place since colonial times, even if scattered geographically. The idea gained steam in the years after the Civil War when a handful of economists blamed property ownership for growing poverty in cities. Property accrued value as space became a premium. So-called reformers believed the tax would balance economic inequality, and appealed to noblesse oblige.

Your Taxes Get Sprinkled Like a Good Rain

I live in Twin Falls County, where we have 78 taxing districts that rely on the current system. If you ask what can replace it, you’re called a Republican in name only (RINO) by compatriots. Obviously, not everything funded by the tax is a waste. First responders and snow plows come to mind. It makes me think of the calls to gut the federal government, but while maintaining Social Security and Medicare. The former makes up nearly a quarter of the budget. Medicare is only 14 percent, but additional health spending brings the tab to another quarter. Historian Niall Ferguson grew up in Scotland, and he summed up Great Britain a couple of weeks ago. People want more, not less, welfare spending. Are we different?

Before anyone in Boise wipes out property tax, legislators need to consider what voters want to stay, and how to fund it otherwise. If they don’t, they’ll see a backlash at the ballot box. Just because I say I want taxes reduced, I didn’t mean the programs that benefit me! The answer won’t be available over 90 days next year.

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More than 20 years ago I hosted a weeklong series on tax alternatives. Among the proposals we examined were Flat Tax, Fair Tax, and Automated Payments Tax. People are most familiar with the first. Everyone pays a flat percentage. Say 12 to 15 percent. Of income, I guess. Of course, we need to define income. Professor Gad Saad is leaving Canada for a job in the United States and has to pay an exit tax based on his estimated assets. Estimated is the dirty word! That’s left to bureaucrats.

This Requires Study and Gaming Outcomes

Go ahead and adopt the flat tax, and please the conservatives, however. Many people, even on the right, have paid very little when it comes to present income confiscation. See how they react when they get a wake-up call. The Fair Tax is a national sales tax of 23 percent. Or it was the percentage proposed 20 years ago. That sounds large, but when you consider your overall tax burden right now, if it replaced what currently exists, you would be better off. This isn’t to say that local governments wouldn’t institute their own taxes. If you live in a blue state or city, that’s a given. Proponents argue that citizens have the option of not paying taxes if they choose not to buy. Obviously, you need to buy some things, unless you’re destitute and living exclusively on handouts.

Automated Payments Tax (APT) is a 1 percent charge on every transaction. A company buys steel to build trucks; it pays 1 percent on the steel. And on every other purchase. The dealer buys the truck for his lot and pays one percent. You buy from the dealer and pay one percent. An economist at the University of Indiana told me it would cover the federal budget. We had that conversation in 2005, when the national debt wasn’t even a quarter of what we see today. None of these plans address the debt, but if state and local governments are creative, maybe we can find something that replaces property taxes.

What we’ll get is a commission from the politically connected who’ll meet once a month for bagels and orange juice. In three years, they’ll provide a solution that works best for them.

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