The Pain of Budget Cuts

by Senator Brent Hill

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More than ever before, state employees, educators and others who depend on government funding have shown patience and understanding as state revenues have plummeted resulting in unprecedented budget cuts. They acknowledge that this is not only an Idaho problem, but a worldwide financial crisis beyond anything most of us have experienced in our lifetimes. Thanks to our sound fiscal policies, superior credit rating, and careful planning, Idaho has fared much better than most states. Still, economic conditions have forced the state to slash some agency budgets by thirty to sixty percent over the past two years, resulting in the layoffs of hundreds of state employees and requiring the remaining personnel to accept furloughs and pay reductions.

By utilizing rainy day accounts wisely set aside by the legislature and stimulus funds provided by the federal government, Idaho has protected its public schools from reductions in funding through June 30, 2010. As we wait for the national economy to improve, state receipts continue to decline to the point that public schools can no longer be held harmless. With the governor's insistence that tax increases would generate too great a burden for struggling Idaho citizens and possibly delay our economic recovery, the legislature was required by the constitution to balance the budget based on existing revenues.

As a result, cuts were made affecting even the most vulnerable of Idaho's citizens: the elderly, the disabled, those with cystic fibrosis and other life-threatening or life-altering conditions. Prison staffs have been reduced to near-dangerous levels and university programs have been eliminated. Throughout this grueling process, every penny of savings was set aside to protect our public schools. As a result, the FY 2012 public education budget was only reduced 7.5%, compared to the massive cuts experienced by other state agencies.

Still, 7.5% is a huge amount for public education which was already underfunded. Underpaid school teachers have a right to be concerned and even frustrated. With fewer resources, it will not be easy to continue the high quality education our children have enjoyed. Although I do not think our schools will have to face additional holdbacks later in the year, the mere possibility causes even greater anxiety. The legislature has authorized the governor to deplete practically every fund and saving account in the state to prevent further holdbacks and, in the event the economy worsens, a special session of the legislature would probably be called to consider other solutions, including tax increases.

In the meantime, our schools are hurting. One small, but effective remedy is for each of us to become more involved. The legislature passed legislation I proposed that significantly increases the tax credit available to those who make contributions to our schools. Couples can receive an income tax rebate equal to 50% of cash contributions made to the school of their choice. That credit had been limited to $200, but beginning in 2011, it will increase to $1,000. Those who itemize their deductions could see as much as 75% of their contribution rebated to them through state and federal tax savings. Corporations may claim credits up to $5,000. This will not solve our funding problems, but our classrooms would be greatly benefitted if every business and family in our community that is able were to donate to our local school districts and take advantage of this enhanced credit.

Idaho's legislators are keenly aware of how much our schools are hurting. The budget reductions we have been forced to make were not done with a calloused or uncaring attitude. We too are concerned about the livelihoods of our teachers. We too understand the importance of properly educating our children. We too mourn the hardships this recession has placed on the classroom. And we too look forward to a better day when education can be more adequately funded.