Batt Notes Crumbling Schools Governor Had Resisted Change But Says Funding System A Problem

Crowded and crumbling school buildings are among the biggest unsolved problems facing the state, retiring Gov. Phil Batt said Wednesday.

“It’s one problem we certainly have not solved,” the outgoing Republican told the annual conference of the Associated Taxpayers of Idaho.

Batt’s focus on schools surprised many of the 200 legislators, local officials, lobbyists and business people in the audience. Throughout his term, Batt has opposed changing Idaho’s system of funding school buildings.

Idaho is the toughest state in the nation in which to build a school. That’s because it is the only state that requires both a two-thirds vote to pass a school construction bond and puts no state money into the effort, leaving the full bill to local property taxpayers.

Batt noted that many possible solutions have been brought up recently, from lowering the two-thirds supermajority to having the state pay bond interest to tapping funds from a tobacco settlement. But, he said, “There’s no consensus on what to do.”

Jim Shackelford, lobbyist for the Idaho Education Association, called Batt’s comments “a good sign.”

“Hopefully that will give continued incentive to policy makers in providing solutions, including giving school districts some funding to help meet their facility needs,” he said.

Bruce Newcomb, House majority leader, said the huge tobacco settlement headed Idaho’s way may be used to help schools.

“Once the tobacco money gets firmed up so it’s not just pie in the sky, maybe that’s when we finally address that issue,” Newcomb said. “We can’t address that issue within the constraints of the budget that we have now. Basically, this session it’s going to be difficult to maintain the status quo.”

Idaho stands to gain about $8 million to $9 million from the nationwide tobacco settlement in the coming year, but the annual payments are expected to jump up to the $25 million to $30 million range in subsequent years.

Newcomb said there’s never been consensus in the Legislature on whether the state should get involved in funding school buildings. That’s historically been considered a local responsibility. A lawsuit pending before the Idaho Supreme Court charges that the Legislature has failed its constitutional requirement to provide education by not funding school buildings. Depending on how that ruling comes down, Idaho’s system could change.

Senate president pro-tem Jerry Twiggs said he’s still a believer in leaving buildings to local taxpayers. “Local school districts ought to decide what level of building they’ll fund,” he said.

But he added, “Will I fight against state participation? No. I will listen. When we make a decision, I hope it’s a good public policy decision.”

Of more than half a dozen North Idaho lawmakers quizzed after the governor’s speech, most favored some kind of state action on school buildings.

Rep. Jim Clark, R-Hayden, opposes lowering the two-thirds super-majority, but favors state matching funds for local school bonds.

To pay for such a match, he’d look to increased earnings from the state endowment fund that are anticipated now that voters have approved investment reforms.

The two-thirds requirement is “the last fortress of property tax relief,” Clark said.

Reps. Wayne Meyer, R-Rathdrum, and Don Pischner, R-Coeur d’Alene, said the Legislature should OK legislation to lower the supermajority. Because the change requires amending the state Constitution, a two-thirds vote of the Legislature would turn the issue over to the state’s voters for a final say.

“Give the people a chance to vote,” said Meyer, “because all we can do as a Legislature is put it on the ballot.”

Pischner said he’s leery about higher property taxes, but he wouldn’t deny voters a chance to rule on the issue.

“I think the state should really look very closely at putting in some matching money,” said Pischner, who serves on the Legislature’s budget committee.

Rep. Larry Watson, D-Wallace, said he’s torn on the supermajority, but would support lowering it to 60 percent if the vote comes during a general election. That’s the proposal being pushed by Republican Gov.elect Dirk Kempthorne.

Watson also favors tapping endowment earnings for state matching funds.

Sen. Gordon Crow, R-Hayden, said he’s twice voted for lowering the supermajority, and also wants some state funds put in.

“We need to leave the control in local hands, but there are things we can do,” he said. “Whatever solutions we come up with, it’s going to have to benefit all the school districts in the state equally.”

Sen. Jack Riggs, R-Coeur d’Alene, voiced that same concern. If the state tries to help only the neediest districts, he said, it could end up punishing those that already have stepped forward to tax themselves for buildings.