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. Education funding is the largest piece of the state budget, and lawmakers have more say over funding levels now that they’ve shifted operational funding from the property tax to the state budget.

Where things stand: Lawmakers set next year’s budget for public schools at $1.37 billion in, a 5.9 percent increase over this year’s budget, including 3 percent more for teacher pay. Last week, they added a backup plan for districts that could lose millions if federal timber payments aren’t reauthorized; the state would reimburse 70 percent of the losses to those timber-dependent districts. For community colleges, budget writers approved a 6.9 percent increase in state funding, and 8.4 percent for the state’s four-year colleges and universities. The House took a stand against preschool, defeating a proposal to set standards for early childhood learning programs and passing 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, attention has turned to the fact that Idaho is one of nine states that fully tax groceries. Many want to 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 targeted grocery tax credit to give a big credit to low-income Idahoans while removing the current credit from higher-income families, 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 was trimmed in the Senate to double the $20 annual credit at a cost to the state of about $32 million – well above Otter’s $22 million plan. Otter vetoed the bill, even though the final version passed the Senate unanimously and the House with just six no votes. Talks are on, but a veto override is being considered. Plans for a big property tax break for business by eliminating the personal property tax on business equipment were derailed in a Senate committee after passing the House.

Growth

Idaho’s changing population and economy have stressed services from roads to prisons to water use.

Where things stand: A highway bonding plan won approval from the budget committee for another $246 million round of bonding for improvements next year, but the Senate sent it back to the panel Monday. Senators are upset that the measure links specific sums to specific road projects and orders the Transportation Department to extend a multimillion- dollar management contract, both issues senators say should be left to the Transportation Board. The House tax committee voted down local-option tax legislation that would have allowed communities to pass local sales taxes to fund public transit. Lawmakers heard that Idaho’s transportation needs, and their costs, have been skyrocketing, but the revenue source that pays for such things – the 25 cent per gallon state gas tax – has been relatively flat for more than a decade. Legislation passed both houses to allow large retail projects to finance major road improvements like freeway interchanges and then get paid back from sales taxes.