This week the governor’s budget office announced that state revenues for January were about $17 million below projected amounts. That follows a shortfall of $20.3 million in December. Programs are being cut, agencies being pruned. In spite of every effort to protect our public school system, even that will suffer cutbacks. The education of our children is at risk.

Many have suggested that the legislature repeal the tax cuts enacted last year. If the economic situation does not improve, that may be a temptation, but such action will prolong the economic crisis and place greater tax burdens on all of us in a time when our personal budgets can least afford it.

It is time to take action ourselves instead of blaming government for our woes. Idaho tax law encourages people to take matters into their own hands–and will pay them to do it. By self-imposing your own "tax increase," you can provide aid to our public schools. Your cost is but a fraction of the benefit received by our schools. Here’s an example of how it works:

Let’s assume that Idaho’s tax cut saves you $300 in taxes this year. Why don’t you keep a third of that and spend it on your heart’s desire? Chances are, the cost of your heart’s desire will help improve our ailing economy locally. (Don’t you feel better already?)

Next, take the other $200 and contribute it to your local school district. Now the government kicks in and reimburses you for most of your contribution through tax deductions and credits.

1. You deduct the contribution on your federal income tax return (if you itemize your deductions) and your tax bill goes down by that amount multiplied by your tax rate. If your federal tax bracket is 15%, the U. S. Government just gave $30 of your $200 contribution back to you.

2. Ditto for your state income taxes: $200 contribution times your state tax rate of, say, 7% (depending on your tax bracket) equals another $14 in tax savings.

But the best is yet to come:

3. Idaho allows a direct credit against your state tax liability of one-half of your contribution (up to a $400 contribution on a joint return). Half of your $200 contribution is $100 that you just forced the state to pay to public education by reimbursing you for your donation.

Result:

You end up with $100 in tax cuts plus $144 in tax savings and credits in your pocket.

Your school district ends up with $200 to provide a better education for our children. Everybody wins!

Now, this is just an example–and simplified at that. Your tax savings may be greater or less depending on your circumstances. In less time than it took you to read this, you could have a check written and mailed to your favorite school. Do it now. There are11,014 households in Madison and Fremont counties. $200 from each of those homes could mean $2.2 million extra funds for our local classrooms. And many may be able to give much more. Why not challenge your employer to match your contribution? He gets the tax benefits too.

After you have done this, you are free to call me and complain about why state government isn’t doing more for education. I will welcome hearing from you.

In all seriousness, our schools need our help. Do not let our children’s education be held hostage by a temporary economic slowdown. These are the addresses for your donations:

Sugar-Salem Schools / P.O. Box 150 / Sugar City, ID 83448

Fremont County Schools / School District 215 / 147 North 2^nd West / St. Anthony, ID 83445

Madison Education Foundation / P.O. Box 43 / Rexburg, ID 83440

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