For the week of May 21 - 27, 2003

Legislature’s cuts to education may have long-term consequences

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The Legislature "broke a contract with our local taxpayers. Our taxpayers are doubly affected, because unless you want to see a diminishment in existing programs and staff then we have to go back to the tax payers."

— JIM LEWIS, Blaine School District superintendent

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By DANA DUGAN
Express Staff Writer

Shock waves from the Legislature’s protracted session this year are starting to ripple through school districts around Idaho.

"We took a torpedo, but we’re not sinking," Superintendent of the Blaine County School District Jim Lewis said. Along with many school district administrators across the state, Lewis is carefully taking stock of the repercussions from the Legislature’s recent budget cuts in education.

Currently Idaho spends $6,000 per student per year. But a series of restrictions imposed by the Legislature and reductions in key programs mean less support from the state for public schools.

The Blaine County School District’s general fund receives its funding from state income taxes, sales tax revenues and property tax revenue.

Eighty-five percent of the yearly budget is in salaries and insurance. This year the insurance is increasing 18 percent, to $370,000.

But the largest and most obvious strain on school district budgets will be forthcoming due to a newly imposed limit to annual property tax relief, called a Property Tax Replacement Cap. Beginning in 2004-2005, it caps the relief at $75 million, thus reneging on the 1995 tax relief promise to pick up a full 25 percent of basic school district tax levies. This is an across the board cap that affects every school district in the state regardless of size.

"The spirit of this causes us grave concern," Lewis said.

What this means for Blaine County is a progressive decrease in revenue despite rising costs of living, the rising market values of real estate and the influx of students at a rate of nearly 100 per year.

Blaine County also is taking an unexpected hit from the State Tax Commission’s failure to adjust county tax assessments. Taxing authorities assess the properties locally, then the State Tax Commission compares the total assessed values to the price the average properties are actually selling for in the real estate market. The commission can either adjust up or down the county tax assessment according to the market. If the selling price average is 5 percent higher than the assessed value, the state can adjust the tax base to match the actual selling values.

This year, Blaine County averaged about 4 percent difference between assessed values and the actual selling prices. The state chose not to adjust the values at all. That adjustment annually means between $1 million to $2 million in revenues to BCSD. This year, the adjustment was $1.6 million less than in previous years.

"None of the new funding bills have affected us as much in one year as this property tax adjustment has this year," Lewis said.

The district will also not receive $4 million of revenue owed—from 3 mills in local taxes and 1 mill in state income and sales taxes—until mid-July, instead of mid-June, as usual. This is anticipated, not guaranteed. But it means the district will have to borrow the money for a month, resulting in $22,000 in interest.

"They broke a contract with our local taxpayers," Lewis said. "Our taxpayers are doubly affected, because unless you want to see a diminishment in existing programs and staff then we have to go back to the tax payers.

"This will be the first year that we’ll levy to the max amount. We’ve always had a cushion."

School district Treasurer Mike Chatterton explained that the district always levied less than what was allowed because the district didn’t need the money.

"To compensate for this, we have asked our principals to hold any open positions that have less than the 20-student average per classroom … allotted," Lewis said.

This will "accommodate the growth headed to the high school and to furnish the two positions promised in the dual immersion elementary grant." Three positions will be open at the Wood River High School.

"We trimmed district-wide Professional Development and curriculum funds and are looking at travel cutbacks. We would much rather handle this within our ability to curtail than to have to lose any staff members currently employed or to freeze salaries."

Professional Development involves certain teacher in-service days and consultants for everything from dual immersions to reading programs. However, Chatterton said these funds might be pulled out of a general fund made possible through the No Child Left Behind Act.

Curriculum funds are retained yearly for new textbooks, which are purchased for each subject every five years. This year is a low text book adoption year. The subjects are health, physical education and drama.

As well, the following positions are being held: third-grade teacher at Hemingway Elementary, sixth-grade and an English teacher at Wood River Middle School, a second-grade teacher in Hailey/Bellevue, and one classified, custodial employee position.

Through reallocation of the staff, Lewis believes no programs or services will be lost.

The average class sizes will remain in the 20 to 22 range. Lewis pointed out that the averages of some of the elementary classes are now 16.5, versus several years ago when they were in the low 20s.

Meanwhile, some of the funds which are generated through the Idaho lottery will also no longer be coming Blaine County’s way. Currently the district receives $110,000 for school facilities from the lottery funds. Now school facilities with safety needs will have the loan interest paid from this fund.

With the existing levy, Blaine County has already improved or built new school buildings.

In 2003-2004, the district will receive $10,000 less from the lottery funds. This amounts to the cost of one student’s education for the year.

In 1988, the state promised schools would get that money for building maintenance, and last year lawmakers promised the subsidy package would be financed with general tax receipts.

"Another promise broken," Lewis said.

The state budget also caps future compensation increases the state finances for teachers and administrators for education and experience at this year's level, undermining part of the 1994 reform formula the state used to disburse education salary support.

It also repeals the early retirement program for administrators that was developed to encourage the best teachers to move into administration and eliminates the successful mentoring program that helped new teachers learn the ropes in the classroom.

"What really is upsetting is that two years ago there was a $200 million dollar surplus, Lewis said. "They sent it back as $100 million in tax rebates and remolded the Statehouse at a cost of $60 million. They snubbed the idea for a rainy day fund, which the Idaho Education Association begged for. It would have been between $60 and 100 million. Blaine County doesn’t get hurt nearly as badly as other rural counties. I feel very sad for them. Some counties were receiving 75 percent of unit funding."

The district does not receive unit funding, meaning funds per child, because it’s considered a market-rich school district.

Lewis maintains that there is no reason to panic in Blaine County.

"We saw a shift from what’s happened in the past and see what we can do. We want our patrons to realize it’s not the same now and things might be tight. But we want to address it now, tighten our cinch a little and be prepared.

The county’s legislators, Sen. Clint Stennett, D-Ketchum, Rep. Wendy Jaquet, D-Ketchum, and Rep. Tim Ridinger, R-Shoshone, "supported us and fought for us every step of the way," Lewis added.

 

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