Sep 28 2012

Cuts here, tax increases there

Published by at 8:12 pm under Idaho,Mendiola

mendiola
Mark Mendiola
Eastern Idaho

A dramatic drop in legislative funding for public education has forced a steep rise in the number of Idaho’s 115 school districts resorting to supplemental override levies to breach the gulf in their money needs.

Idaho’s total public school expenditures as a percent of all expenditures fell from a high of about 35 percent in 1982 to slightly more than 26 percent in 2013. Idaho public school total fund expenditures as a percent of Idaho personal income fell from about 4.7 percent in 1992 to about 3.4 percent in 2013.

Addressing the City Club of Idaho Falls on Sept. 21, Michael Ferguson questioned whether the Idaho Legislature is short changing the state’s school districts and violating the Idaho Constitution, which requires it to “to establish and maintain a general, uniform and thorough system of public, free common schools.”

The Idaho Center for Fiscal Policy’s director – who served as chief economist for six Idaho governors from 1984 to July 2011 – also asked if the Legislature was complying with the constitution’s mandate that “all taxes shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.”

Ferguson said, “What this basically says is that for purposes of the property tax, a taxing entity can’t levy different rates on different taxpayers.” The property tax component of school funding has changed quite a bit in recent years in Idaho, he noted. There was a swap for sales tax done in 2006 that took away an equalized management and operations (M&O) levy.

““With the elimination of the equalized M&O levy, we’re now in a situation where all property tax dollars that are used to fund public school M&O are non-equalized,” Ferguson said.

“Since then, we’ve seen a pretty dramatic increase in the use of unequalized property tax levies. Since education is a state duty, a state responsibility, I would question whether using unequalized property taxes really fulfills the intent of having uniform property taxes.”

Public education funding is “probably one of the most important fiscal policy issues facing the state of Idaho,” he said. Ferguson has focused since the second half of 2011 on the consequences of the “Great Recession” on education funding in the state.

Michael Ferguson, left, director of the Idaho Center for Fiscal Policy, converses with City Club of Idaho Falls members. (Photo/mark Mendiola)

Ferguson said the data he discovered was startling and “like a kick in the gut.” It points out serious issues of which most people are unaware, but need public discussion. “So, basically what we have is strong support for eliminating business personal property tax and a pretty difficult budget situation.”

At the end of the 2012 legislative session, the state’s ending budget balance for Fiscal 2013 was estimated at $4.5 million. As of Aug. 12, that was increased to $35.2 million with a new revenue forecast and actual Fiscal 2012 results. “Sounds like things got better,” he said.

Yet, under the Fiscal 2013 structural balance as of the end of August, ongoing revenue totals $2.666 billion with $5 million one-time revenue while ongoing spending totals $2.695 billion. The difference or “structural balance” is negative $29 million.

“So, basically what that means is that for the current fiscal year, even though we have a positive ending balance projected … from a one-time standpoint, it’s negative when you look at it from an ongoing perspective,” Ferguson said. “So, we don’t have a lot of slack in terms of the budget as it stands now.”

House Bill 563, enacted last session, removed $36 million out of the revenue stream by cutting the top personal income tax rate from 7.8 to 7.4, he explained. Had that not been included, the structural balance would have been positive $7 million.

During the 1980s, there was a spike in the number of districts running supplemental levies, but that gradually declined to the end of the 1990s. By 1999, 41 Idaho school districts used supplemental override levies as budget tools to enhance their revenues. By 2011, 83 districts were using them, dipping to 81 in 2012. Preliminary data indicates a record 84 districts will be employing the override levies in 2013.

Dollars associated with supplemental overrides increased at a dramatic rate and leveled out by the end of the ’90s into the early 2000s, when they totaled about $50 million. The total dollar amounts since have been going up dramatically until stabilizing at $136 million to $139 million between 2011 and 2012.

“The preliminary data for 2013 with those 84 districts that will be running supplementals is it will go up to about $171 million,” Ferguson said. “So, there’s yet another pretty steep rise in the use of these unequalized supplemental levies.”

The taxable value per student in the McCall-Donnelly School District is $4.7 million, but the state’s lowest values in the Blackfoot and Snake River districts are $160,877 and $153,437, respectively. “The cost of running remote rural districts is a lot greater than it is with a large district,” Ferguson said. “So, those numbers are going to vary quite a bit.”

Superintendents have told Ferguson the disparity between wealthy and poor districts can create civil war.

“With similar levies, you don’t get nearly the amount of revenue. One of the problems is when you’re in a poor district, it doesn’t really get you very far to run a property tax supplemental levy. You don’t get much in the way of additional funding.”

Many poor districts don’t run supplemental override levies and work strictly off what the state provides. The number of Idaho school districts going with four-day weeks has increased in tandem with declines in legislative education funding the past dozen years. There were 15 such districts in the 2009-2010 school year; 22 districts in 2010-2011, and 34 districts in 2011-2012.

“So, there are consequences from having the lower levels of funding and not having property tax available either because you didn’t have the market value or you didn’t have the voters that were willing to approve it,” Ferguson said, noting property tax has a lot of disparity in terms of what it will provide for funding schools.

Share on Facebook

Comments Off

Comments are closed at this time.

Share on Facebook

 

 
owb1444

WASHINGTON-OREGON-IDAHO Our acclaimed weekly e-pubs: 35-45 pages Monday mornings getting you on top of your state. Samples available. Contact us by email or by phone at (208)484-0460.

 

 
RIDENBAUGH BOOKS
 


 
This will be one of the most talked-about Idaho books in Idaho this season: 14 years after its last edition, Ridenbaugh Press has released a list of 100 influential Idahoans. Randy Stapilus, the editor and publisher of the Idaho Weekly Briefing and author of four earlier similar lists, has based this one on levels of overall influence in the state – and freedom of action and ability to influence development of the state – as of the start of 2015.
 
100 Influential Idahoans 2015. By Randy Stapilus; published by Ridenbaugh Press, Carlton, Oregon. 202 pages. Softcover. List price $16.95.
100 Influential Idahoans 2015 page.

100 Influential Idahoans 2015
Idaho
 
 
"Essentially, I write in the margins of motherhood—and everything else—then I work these notes into a monthly column about what it’s like raising my two young boys. Are my columns funny? Are they serious? They don’t fit into any one box neatly. ... I’ve won awards for “best humorous column” though I actually write about subjects as light as bulimia, bullying, birthing plans and breastfeeding. But also bon-bons. And barf, and birthdays." Raising the Hardy Boys: They Said There Would Be Bon-Bons. by Nathalie Hardy; Ridenbaugh Press, Carlton, Oregon. 238 pages. Softcover. $15.95.
Raising the Hardy Boys page.

 

Hardy

 
"Not a day passes that I don’t think about Vietnam. Sometimes its an aroma or just hearing the Vietnamese accent of a store clerk that triggers a memory. Unlike all too many soldiers, I never had to fire a weapon in anger. Return to civilian life was easy, but even after all these years away from the Army and Vietnam I find the experience – and knowledge – continue to shape my life daily."
 
Drafted! Vietnam in War and in Peace. by David R. Frazier; Ridenbaugh Press, Carlton OR. 188 pgs. Softcover. $15.95.
The DRAFTED! page.

 

Drafted
 
Many critics said it could not be done - and it often almost came undone. Now the Snake River Basin Adjudication is done, and that improbable story is told here by three dozen of the people most centrally involved with it - judges, attorneys, legislators, engineers, water managers, water users and others in the room when the decisions were made.
Through the Waters: An Oral History of the Snake River Basin Adjudication. edited by the Idaho State Bar Water Law Section and Randy Stapilus; Ridenbaugh Press, Carlton, Oregon. 300 pages. Softcover. $16.95.
See the THROUGH THE WATERS page.


 
Oregon Governor Vic Atiyeh died on July 20, 2014; he was widely praised for steady leadership in difficult years. Writer Scott Jorgensen talks with Atiyeh and traces his background, and what others said about him.
Conversations with Atiyeh. by W. Scott Jorgensen; Ridenbaugh Press, Carlton, Oregon. 140 pages. Softcover. $14.95.
The CONVERSATIONS WITH ATIYEH page.

Atiyeh
 
"Salvation through public service and the purging of awful sights seen during 1500 Vietnam War helicopter rescue missions before an untimely death, as told by a devoted brother, leaves a reader pondering life's unfairness. A haunting read." Chris Carlson, Medimont Reflections. ". . . a vivid picture of his brother Jerry’s time as a Medivac pilot in Vietnam and contrasts it with the reality of the political system . . . through the lens of a blue-collar, working man made good." Mike Kennedy.
One Flaming Hour: A memoir of Jerry Blackbird. by Mike Blackbird; Ridenbaugh Press, Carlton, Oregon. 220 pages. Softcover. $15.95.
See the ONE FLAMING HOUR page.


 
Back in Print! Frank Church was one of the leading figures in Idaho history, and one of the most important U.S. senators of the last century. From wilderness to Vietnam to investigating the CIA, Church led on a host of difficult issues. This, the one serious biography of Church originally published in 1994, is back in print by Ridenbaugh Press.
Fighting the Odds: The Life of Senator Frank Church. LeRoy Ashby and Rod Gramer; Ridenbaugh Press, Carlton, Oregon. 800 pages. Softcover. $24.95.
See the FIGHTING THE ODDS page.


 
JOURNEY WEST

by Stephen Hartgen
The personal story of the well-known editor, publisher and state legislator's travel west from Maine to Idaho. A well-written account for anyone interested in Idaho, journalism or politics.
JOURNEY WEST: A memoir of journalism and politics, by Stephen Hartgen; Ridenbaugh Press, Carlton, Oregon. $15.95, here or at Amazon.com (softcover)

 

 

NEW EDITIONS is the story of the Northwest's 226 general-circulation newspapers and where your newspaper is headed.
New Editions: The Northwest's Newspapers as They Were, Are and Will Be. Steve Bagwell and Randy Stapilus; Ridenbaugh Press, Carlton, Oregon. 324 pages. Softcover. (e-book ahead). $16.95.
See the NEW EDITIONS page.

How many copies?

 
THE OREGON POLITICAL
FIELD GUIDE 2014

The Field Guide is the reference for the year on Oregon politics - the people, the districts, the votes, the issues. Compiled by a long-time Northwest political writer and a Salem Statesman-Journal political reporter.
OREGON POLITICAL FIELD GUIDE 2014, by Randy Stapilus and Hannah Hoffman; Ridenbaugh Press, Carlton, Oregon. $15.95, available right here or through Amazon.com (softcover)

 
 
THE IDAHO POLITICAL
FIELD GUIDE 2014

by Randy Stapilus and Marty Trillhaase is the reference for the year on Idaho Politics - the people, the districts, the votes, the issues. Written by two of Idaho's most veteran politcal observers.
IDAHO POLITICAL FIELD GUIDE 2014, by Randy Stapilus and Marty Trillhaase; Ridenbaugh Press, Carlton, Oregon. $15.95, available right here or through Amazon.com (softcover)

 
 
without compromise
WITHOUT COMPROMISE is the story of the Idaho State Police, from barely-functioning motor vehicles and hardly-there roads to computer and biotechnology. Kelly Kast has spent years researching the history and interviewing scores of current and former state police, and has emerged with a detailed and engrossing story of Idaho.
WITHOUT COMPROMISE page.

 

Diamondfield
How many copies?
The Old West saw few murder trials more spectacular or misunderstood than of "Diamondfield" Jack Davis. After years of brushes with the noose, Davis was pardoned - though many continued to believe him guilty. Max Black has spent years researching the Diamondfield saga and found startling new evidence never before uncovered - including the weapon and one of the bullets involved in the crime, and important documents - and now sets out the definitive story. Here too is Black's story - how he found key elements, presumed lost forever, of a fabulous Old West story.
See the DIAMONDFIELD page for more.
 

Medimont Reflections Chris Carlson's Medimont Reflections is a followup on his biography of former Idaho Governor Cecil Andrus. This one expands the view, bringing in Carlson's take on Idaho politics, the Northwest energy planning council, environmental issues and much more. The Idaho Statesman: "a pull-back-the-curtain account of his 40 years as a player in public life in Idaho." Available here: $15.95 plus shipping.
See the Medimont Reflections page  
 
Idaho 100 NOW IN KINDLE
 
Idaho 100, about the 100 most influential people ever in Idaho, by Randy Stapilus and Martin Peterson is now available. This is the book about to become the talk of the state - who really made Idaho the way it is? NOW AN E-BOOK AVAILABLE THROUGH KINDLE for just $2.99. Or, only $15.95 plus shipping.
 

Idaho 100 by Randy Stapilus and Martin Peterson. Order the Kindle at Amazon.com. For the print edition, order here or at Amazon.