Idaho's reading initiative is another area of success, state Superintendent of Schools Tom Luna told lawmakers. The number of students reading at grade level by the end of 3rd grade has risen from 66 percent to 76 percent. "We are now seen as a national leader" in school improvement, Luna said.

Schools face a significant funding shortfall, Luna said. "We know we have to continue to move forward. ... We cannot hunker down and wait for better times. We cannot tell a 3rd grader who is struggling today in math that you have to wait until the economy improves to get the assistance you need."

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