Panel Rebuffs Fox’s Call For Sales Tax Hike But Lawmakers Start Thinking About Idaho Schools

Anne Fox was reduced to begging.

“I don’t know what else to do as far as bringing you ideas,” the state schools superintendent told legislators Tuesday. “I ask you to consider doing something. … If you’re not satisfied with this, then help us figure something out.”

But the House Revenue and Taxation Committee rejected Fox’s plan to raise the state’s sales tax by half a percent to pay for school buildings. The group also dumped Rep. Jim Clark’s plan to divert $15 million a year in sales tax revenues to school buildings.

Although those bills failed, lawmakers began sending signals Tuesday that school buildings are becoming a higher priority.

Idaho is the toughest state in the nation in which to build a school, and the state has a construction backlog of more than $700 million for building and repairing inadequate and deteriorating schools.

“We all talk about the critical public school building needs, and we all express frustration over our inability to do anything,” said Senate State Affairs Committee Chairman John Hansen, R-Idaho Falls.

“It’s time to say, ‘OK, what can we do?”’ Hansen and Sen. Clint Stennett, D-Ketchum, will propose a bill today calling for a committee to come up with a plan to consider in the next legislative session. That’s the approach Lakeland School District Superintendent Bob Jones suggested to lawmakers in a speech three weeks ago.

Idaho provides no state funding for school buildings, leaving the entire cost to local property taxpayers. Plus, it requires a two-thirds vote to pass a school bond. It’s the only state that places both those obstacles in front of school districts that need new schools.

Sen. Jack Riggs, R-Coeur d’Alene, is part of a bipartisan group backing legislation to lower the two-thirds vote requirement. Over some objections, the House Education Committee voted to introduce that legislation Tuesday morning, just down the marble hall from the committee that killed efforts to divert sales tax money to schools.

The new measure, which would amend the state constitution and would have to be approved by voters, would lower the super-majority to 60 percent if the bond election were held on a primary or general election date. Elections on other dates still would require a two-thirds vote.

“If you have an election on a day with presumably higher turnout, there’s more accountability reflecting what people want,” Riggs said. “It gives school boards another option.”

In 1996 and 1997, Post Falls voters twice gave more than 62 percent approval to a bond to build a high school, but the effort failed because it didn’t hit the 66.67 percent mark.

Rep. Wayne Kendell, R-Aberdeen, argued that the two-thirds requirement protects taxpayers. “It’s not too bad of a balance to have. … It’s all right for it to be difficult, but these things do pass.”

In the tax committee, Fox received an icy reception. Members disputed the numbers presented by her finance expert and ignored her comments that people around the state seem willing to pay more sales tax for school buildings. Using sales tax would relieve the burden on property taxes, Fox argued.

It was Fox’s third defeat in three years on the issue.

“I’m definitely done talking about using the sales tax, because I don’t see them shifting at all,” she said afterward. “It’s a real dilemma: Where are you going to get the money?”

Another bill, proposed by two Democrats and a Republican in the House, would divert the first $10 million in timber sale proceeds on state lands each year into a school building fund. That money now goes directly into the state’s permanent endowment, from which interest helps pay for public school operating budgets.

Clark’s bill would divert $15 million off the top of Idaho’s sales tax receipts each year for school buildings. He said growth from year to year would cover the cost.

“Some might think we need to increase taxes,” said Clark, R-Hayden. “I fall down on the side of taking it out of the growth of government.”

Rep. Reed Hansen, R-Idaho Falls, warned, “You’re making the assumption that as revenues grow, that that’s just sort of a free piece of money. But with growth comes needs. … People demand services.”

Other tax committee members said Clark’s plan could throw the state into chaos in a year when revenues don’t grow, and Rep. Dolores Crow, R-Nampa, suggested limiting the $15 million diversion to years with strong revenue growth.

“That’s a super idea,” Clark responded.

Other bills being floated this year would divert more state lottery proceeds to school buildings; provide state backing for school bonds to help lower their interest rates; and set up a new trust fund for school buildings.

Fox was somewhat encouraged that lawmakers are starting to kick around ideas.

“They’ve never come forward and said, ‘We’ll help you, Anne.’ But I’d sure love it if they would.”

, DataTimes