COEUR d'ALENE - He's ready to lose the wolves, jump on unemployment and reject the new federal health care act.

Don't accuse the governor of being wishy-washy on anything.

Gov. Butch Otter discussed the state's biggest issues on Friday before an intimate group of elected officials and business representatives at a Coeur d'Alene Chamber of Commerce luncheon.

"Idaho, as much as any state, has pushed the envelope, and will continue to push the envelope," said Otter, speaking at 315 Martinis and Tapas at the Greenbriar Inn.

He was referring to Idaho battling the influence of the federal government, especially the plans of the Environmental Protection Agency for cleaning up mining waste in the Silver Valley.

"Over the long term, I suppose they could force it on us," Otter said of the newest cleanup plan proposed for the Coeur d'Alene basin. "The 99-year plan is nuts, in my opinion, for $1.34 billion. That's a long, long, long, long time and that's a lot of money."

Idaho is still resisting President Barack Obama's health care reform, Otter added, pointing to the state's participation in a multi-state suit against the federal government over the reform act.

The Supreme Court has indicated it will allow the suit to run its limit on appeals, "which could be problematic," Otter said.

He added that Idaho has accepted $1 million from the U.S. government to investigate how insurance exchanges might work in the state.

"We haven't begun setting up one thing (to implement the health care program), and we're not going to," he said.

The audience of roughly 50 applauded when Otter announced that a proposed agreement had been filed on Friday that would allow wolf hunting to resume in Idaho and Montana.

"We have 29 elk zones in Idaho, and 11 are in trouble," he said. "I did get a wolf report a couple weeks ago. It's right at about 1,600 - that's 12 times more than in 1994, when we were told it would be a sustainable population."

Unemployment remains a stubborn issue in the state, Otter said.

Governor staff member Mark Warbis discussed a House bill that could help, by providing refundable tax credits for employers who hire new workers.

Depending on a Department of Labor rating, Warbis said, employers would get back between 2 to 6 percent of a new employee's annual wages.

"We're rewarding those businesses who put high emphasis on growing the work force," Warbis said, adding that the bill is still in committee.

Otter roused some chuckles when he asked if anyone had questions about education reform.

He let Idaho schools chief Tom Luna tackle the subject of the two bills Otter signed into law on Thursday.

The state had been facing three possible paths for education, Luna said.

"The first was continue to cannibalize the system many agree is not doing the job it should," he said. "We could increase taxes, and put money into a system folks recognize as anemic, or we could reform the system."

The state chose the last, he said. He lauded the benefits of a new merit pay measure, which was signed into law this week with a law restricting teachers' collective bargaining.

"It (merit pay) gives them the opportunity to make significantly more for teaching hard to fill positions, and teaching in schools that show academic growth," Luna said.

He plugged another proposed reform that would have students taking more online classes.

"We have to recognize that learning is not limited by walls or school schedules or bells," he said. "This is allowing students to learn no matter where they're at."

Coeur d'Alene City Council member Mike Kennedy asked if the governor would veto bills that didn't support urban renewal agencies.

"I'll consider vetoing, but I'll consider signing, too, I have to warn you," Otter responded. "I'm a local control person. If I lived in one of those economic agencies I said, 'I don't want my property taxes spent that way,' I'd think I was being disenfranchised."

Jeri DeLange, member of the Hayden City Council, said she has been impressed with how the state government has handled budget shortfalls.

"The governor has been facing a lot of challenges this year with the economy, and he seems to be doing a good job," DeLange said.

Coeur d'Alene resident Sid Smith said he had been interested in hearing more about the education reforms.

"Regardless if people are opponents or proponents, there is common ground that we needed to take a hard look at our education system," he said. "I'm interested to how they (the reforms) play out."

It's promising to see how well the governor knows about state issues, said Mark Fisher with Advanced Benefit.

"He's looking at all bills with an open mind," Fisher said. "He's got backbone."