Initiative A Funding Threat To Nic One Percent Cap On Taxes Could Cause Double Whammy
North Idaho College would suffer a double whammy if the One Percent Initiative passes, according to the state Board of Education.
All state colleges and universities would lose one third of their biggest pot of money, the state’s general fund, the board announced Thursday.
The two community colleges would also lose revenue from property taxes. - in NIC’s case, 21 percent or $1.2 million.
“We’re deeply concerned about the impact,” said Norman Gissell, chairman of the NIC board of directors.
The initiative proposes to cap property taxes at 1 percent of the valuation. It will be on the November ballot.
There are vastly differing opinions about where money would come from to make up for those lost tax dollars, which help support public schools. One obvious source is the state general fund, which pays most higher education costs.
“The interpretation of what it means for community colleges is all over the board. I’ve heard it would be Draconian, and also that it wouldn’t hurt us at all,” Gissell said.
The Board of Education based its figures on a State Tax Commission report.
The commission concluded that, if voters approve the initiative, the state must come up with $228 million to maintain funding for kindergarten through 12th grade classes.
That $228 million equals 33.5 percent of the $680 million appropriated for all state government, other than public school support.
At NIC, that one-third cut amounts to $2.55 million, said college spokesman Steve Schenk.
Combined with the property tax losses, reductions in other tax receipts and earnings on investments, NIC would lose more than $4 million, he said.
That’s 21 percent of the school’s $18.7 million budget.
For the University of Idaho, a one-third loss of general fund money would be $22 million.
Among other examples of cuts: $3 million from Lewis Clark State College; $671,000 from scholarships and grants; $788,000 from the WAMI medical education program.
The Board of Education oversees both public and higher education.
In May, members voted to oppose the One Percent Initiative. The only exception was Anne Fox, the superintendent of public instruction, who abstained.
, DataTimes