Schools unite against plan for tax relief

BOISE – All seven presidents of Idaho’s public colleges and universities banded together Thursday against Gov. Jim Risch’s property tax relief plan.

In their report to the state Board of Education at a meeting in Idaho Falls, the college and university leaders said they fear the Republican governor’s proposal will result in less money for scholarships, new community colleges and other university programs.

University of Idaho President Tim White said the presidents’ role is advisory and not to lobby lawmakers. But, he said, “There are a lot of education needs at the trough and a lot of other needs at the trough. The risk is some will lose when you decrease revenues.”

Risch has called a special legislative session Aug. 25 to consider easing property taxes and has hinted that enough key GOP lawmakers are lined up to pass his plan.

Risch has proposed ending the tax that property owners now pay into a statewide public school maintenance and operations pot, offsetting the estimated $260 million yearly revenue loss in part through a penny on the dollar sales tax increase.

The higher sales tax would generate an estimated $210 million a year. Risch would make up the difference with $50 million from Idaho’s $203 million budget surplus. The plan also would place $100 million of the surplus in an education rainy-day fund to safeguard against future economic stumbles.

On Wednesday, White joined the presidents of Boise State and Idaho State universities, Lewis-Clark State College, and two-year schools College of Southern Idaho, North Idaho College and Eastern Idaho Technical College at a bed-and-breakfast retreat in Rigby.

They agreed the Risch plan could spell future cuts to higher education and fierce competition among public schools and colleges for dwindling state money. In economic hard times, colleges also might be pressured to raise tuition while cutting services, White said.

Boise State President Bob Kustra said the tax plan further restricts how lawmakers can spend money, which threatens much-needed but expensive plans to increase scholarships and create new community colleges.

Risch said he is willing to meet with the college presidents and hear alternate proposals, although he said he already weighed their concerns when drafting his plan.

Democrats, who are outnumbered 4-1 in both the state House and Senate, said Thursday that their call for a more modest tax plan is strengthened by the presidents’ warnings.

The competing Democratic proposal would cut $104 million in the tax on homeowners, but leave the tax on vacation homes, businesses, farms and utilities. Risch, who as governor dictates the agenda for the special session, said the Democrats’ plan won’t reach the floor.