Finally, Some Good News
by Senator Brent Hill
President Pro Tempore
At long last, after three years of plunging state revenues and painful budget cuts, the Idaho economy is showing signs of healing. The most revealing indicator of the state’s fiscal health comes each April when the majority of income tax returns are filed. The good news: state revenues through April were $84.8 million above the fiscal year 2011 projection used to set the state budget. Hoping this might happen, the Idaho State Senate initiated a bill (S 1207) at the end of the legislative session directing over two-thirds of any additional funds to education if state receipts outpace the amounts forecasted and budgeted by the legislature. If actual collections remain stable through the last two months of the fiscal year that ends in June, about $61.4 million will be automatically appropriated to public schools, professional-technical education, and community colleges. Public schools will receive approximately 90% of the funds, or $55 million. That amount will more than offset the loss of federal funding next year.
Even with these additional funds, the state’s education budget has suffered significant cuts in past years as the current recession has persisted. As we have witnessed many of our neighbors lose their jobs, their businesses, and sometimes even their homes, education has not escaped the ravage of recession. Our teachers and administrators are justifiably discouraged as they face loss of income and jobs.
What we did
Knowing that taxes would not be increased, many of us in the legislature worked hard to find other ways to help support public education. Besides S 1207, the legislature provided an additional $15 million that went directly to education by deferring the phase-in of the grocery tax credit. We hired more revenue agents to collect unpaid taxes resulting in a projected $15.8 million in additional net revenues. We provided over $20 million for anticipated enrollment growth. We redirected $15 million of General Funds above the initial Finance Committee target to public schools. We maintained $9.4 million for student remediation and the math and reading initiatives. We gave more flexibility to school districts by redirecting $33.4 million of program dollars to discretionary funds. Each of these measures helps, but the fact remains that our schools still lack the resources necessary to provide the education our children deserve.
What you can do
Both money and manpower are in short supply as our schools struggle to maintain high quality education. Tax incentives to encourage you to make donations to your local school have been greatly enhanced. A married couple can now contribute up to $2,000 to a school in Idaho and receive as much as half of that amount back as a credit against their Idaho income tax. In addition, the donation qualifies as a charitable deduction resulting in even more tax savings to those who itemize their deductions. Single taxpayers are allowed tax credits up to $500 and corporations can claim $5,000 in credits for a $10,000 cash contribution. These tax incentives are significant, resulting in your donation costing you but a fraction of the amount you give to benefit our schools.
You can also contribute your time and talents, volunteering to help at local schools. You can assist in the classroom, tutor students with special needs, clean up the school grounds, work with parent-teacher organizations, etc. Donating your time can greatly help our schools survive this economic crisis.
Let us not forget that the greatest assistance we can give to our children’s education is the training we provide in our homes. Every teacher’s job would be made easier and more enjoyable if we, as parents, would spend just a little more time helping with homework, challenging our children’s creative and analytical skills, attending parent-teacher conferences, and teaching our children discipline, civility and respect for others. As we strengthen our families, we strengthen our schools, our communities, and our nation.
While the situation is difficult, we are not without hope. There is still much we can do to help our children gain the best education possible, even in trying times. As always, I welcome your suggestions