Education Emergency

[Tom Trail <ttrail@moscow.com>]

Visionaries:     We are rapidly approaching an emergency situation for our
educational systems
in Idaho including both public and higher education.   All three Dist. 5
legislators have written
the Governor requesting his leadership in calling for a special session to
deal with the situation.
My letter to the Governor with some possible solutions is listed below.
>>
>>Rep. Tom Trail
>>>>
>>>>June 3, 2002
>>>>
>>>>The Honorable Dirk Kempthorne
>>>>Governor
>>>>Idaho State Capitol
>>>>Boise, ID. 83720
>>>>
>>>>Dear Governor Kempthorne:
>>>>
>>>>The future of Idaho Public and Higher Education is at the crossroads.
>>>>I visited four of our
>>>>rural school districts this past week.  Talk among teachers and
>>>>administrators peculates that
>>>>future holdbacks will be implemented in the near future.  All of the
>>>>six districts in Latah County
>>>>are reducing staff positions, reducing purchases of supplies, and some
>>>>are putting off buying new textbooks.
>>>>
>>>>District reserves are down to, in some cases less than $75,000.  Good
>>>>management practices
>>>>indicate that at least enough money should be budgeted for funding two
>>>>months for salaries,
>>>>benefits, etc. in the reserve fund.  Some districts are considering
>>>>charging for activities.  Another
>>>>round of holdbacks will give Idaho a national reputation as the state
>>>>where schools are depleting
>>>>reserves, eliminating positions and programs, cutting supplies and
>>>>teaching from outdated
>>>>textbooks.
>>>>
>>>>The economic situation in Higher Education is even more severe.  The FY
>>>>03 budget for Higher
>>>>Education has been cut by 10 percent.  Universities have now been
>>>>ordered to develop their FY03
>>>>budgets with another 5 and 10 percent cut to be considered in the
>>>>economic situation so dictates.
>>>>The Idaho Education Board is now preparing a tentative plan that would
>>>>allow layoffs of tenured
>>>>faculty and the elimination of entire programs.   The loss of these
>>>>faculty, staff, and programs
>>>>will be devastating, and quality programs take years to rebuild.
>>>>
>>>>You've always been an advocate of investing in education to provide the
>>>>person power needed
>>>>in the economic development of the state.  We need to act proactively
>>>>in order to protect our
>>>>educational system.  we cannot wait to see how the May and June tax
>>>>revenues come in.  We can hope that economic recovery is beginnoing,
>>>>but school districts and universities are making new
>>>>staffing and budgeting plans already for FY 03.
>>>>
>>>>I urge you to call a Special Session of the Legislature in the near
>>>>future to address the issue of
>>>>funding education.  We have a number of funding alternatives that we
>>>>can consider.  These are:
>>>>
>>>> 1) Moratorium on the Personal Income Tax Cuts--This would generate
>>>>about $60 million/year
>>>>     and it would be an equitable approach.  However, it has the
>>>>disadvantage of not immediately
>>>>     kicking revenue into the budget.  I would protect the farming and
>>>>business tax cuts as vital
>>>>     to economic recovery.
>>>>
>>>> 2) Hire 40 tax auditors for the State Tax Commission--This is a proven
>>>>investment.  The
>>>>     previous 40 auditors that we hired are returning about
>>>>$650,000/auditor to the state.
>>>>     This would yield another $17 million to the state.  TheTax
>>>>Commission estimates there are
>>>>     40,000 non-filers who owe the state $90 million in unpaid taxes.
>>>>How can any government
>>>>     official defend not going after citizens who don't pay their taxes?
>>>>
>>>> 3)  Utilize the $23 million remaining in the Budget Stabilization Fund
>>>>and the $5.1 million left
>>>>      on the table by JFAC from the FY03 budget.
>>>>
>>>> 4) Tap the $50 million in the Millennium Fund.  This might be in the
>>>>way of a loan to the
>>>>      state to be paid back as the state accumulates surpluses.
>>>>several other states are doing this
>>>>      now.
>>>>
>>>> 5) Increase the State Sales Tax by 1 per cent.  This would generate
>>>>about $60 million/year
>>>>     and with an emergency clause would immediately put money into the
>>>>general fund.
>>>>
>>>> 6) A combination of a sales tax plus a tax on services is another
>>>>approach.
>>>>
>>>> 7) Increase taxes on the "sin" taxes.  I have the draft legislation
>>>>already drawn up and the
>>>>     revenue generated would be about $70 million per year.  Both
>>>>emergency and sunset
              clauses can be utilized where appropriate.
>>>>
>>>>Again, I feel it is extremely important that the Special Session be
>>>>called as soon as possible to be proactive in terms of our support and
>>>>commitment to Idaho's education system and our children.
>>>>
>>>>Sincerely,
>>>>
>>>>Rep. Tom Trail/Dist. 5
>>>>
>>>>
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Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail@moscow.com