The big three

Education

The state Board of Education wants to require more math and science for Idaho high school students to graduate, along with other requirements. Community college expansion is a hot issue this year, with the Boise area pushing for its own campus. Education funding is the largest piece of the state budget, and lawmakers have more say over funding levels now that they’ve shifted basic school operational funding from the property tax to the state budget.

Where things stand: Lawmakers set a budget for public schools for next year totaling $1.37 billion in state general funds, a 5.9 percent increase over this year’s budget, including 3 percent more for teacher pay. For community colleges, legislative budget writers approved a 6.9 percent increase in state funding, and for the state’s four-year colleges and universities, 8.4 percent. The House defeated a proposal to set standards for early childhood learning programs and passed another measure saying the state shouldn’t impinge on the role of parents in educating preschoolers. Increased math and science requirements for high school graduation won approval, while easing election rules to form a new community college district failed.

Taxes

With the sales tax now at 6 percent – lawmakers raised it from 5 percent in August – attention has turned to the fact that Idaho is one of only nine states that fully taxes groceries. Many want to either repeal that tax or offset it with an enhanced grocery tax credit. Business interests are pushing for a big tax break on the personal property tax and are hoping to trim back property tax relief granted to homeowners last year.

Where things stand: Otter proposed a argeted grocery tax credit to give a big credit to low-income Idahoans, but lawmakers on the House’s tax committee rejected it in favor of a pricier proposal from Rep. Cliff Bayer, R-Boise, to raise the credit for everyone. That measure then passed the House on a 62-7 vote but then was trimmed in the Senate to raise the current $20 annual credit to $40 and for seniors from $35 to $60. That increase would cost the state $32.6 million a year, well under the original House proposal of $47.5 million a year. Nevertheless, the amended bill passed the Senate on Thursday and won House concurrence in the amendments. Meanwhile, the Idaho Association of Commerce and Industry has been pushing hard for phasing out a large property tax on business equipment, which eventually would grant businesses an annual tax break of nearly $100 million. That bill, HB 245, ran into trouble in a Senate committee Thursday after earlier passing the House. It was sent to the Senate’s amending order, where it could die.

Growth

Idaho’s growing population and changing economy have created pressure on everything from roads to prisons to water use.

Where things stand: A highway bonding plan won approval from the joint budget committee for another $246 million round of bonding for major improvements next year, including upgrades to Highway 95 in North Idaho – but most of the money would go to freeway improvements in the Treasure Valley. After two days of hearings, the House tax committee voted down local-option tax legislation that would have allowed communities to pass local sales taxes to fund public transit. Two other local-option tax measures also were killed in committee. Legislation to allow large retail projects, such as Cabela’s in Post Falls, to finance major road improvements like freeway interchanges and then get paid back from the sales taxes they collect cleared a Senate committee after earlier passing the House.