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Spokane, Washington  Est. May 19, 1883

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Editorial: Education a better investment for Idaho than tax cuts

After spending the election season as the “education governor,” Idaho Gov. Butch Otter has reverted to his old habit of seeking tax cuts, which will make it more difficult to fulfill the promised investment in better schools and universities.

At the annual Associated Taxpayers of Idaho conference on Dec. 10, the governor said his goal for the next four years is to lower the state income tax rate from 7.4 percent to 7 percent and eliminate the personal property tax on business equipment. If it were to get both, it could cost the state about $200 million, and cities, counties and schools would have to scramble to make up the difference.

Meanwhile, the governor’s task force on education has issued 20 recommendations that would cost an estimated $350 million over five years. Otter pointed to those recommendations to demonstrate his commitment to education during the campaign.

For instance, the task force urged the state to return to the operation funding level of 2008-09. At that time, it was $25,700 per classroom. After several years of cuts, it’s now $20,000. This reinvestment would cost the state $82.5 million over five years. The task force also recommended a new “career ladder” salary schedule to make teacher pay more competitive with other states. Moving all teachers to the new scale would cost $40 million over five to six years.

When Otter announced the formation of the task force, he said costs “would obviously be a limiting factor.” What he didn’t say was that he would make it more difficult by continuing to push for lower tax collections. Last January, he asked for $30 million in tax cuts. Instead, the Legislature funneled that money into education, and Otter conceded that it was the smarter move.

He should hold that thought, because the state has a long way to go if it ever hopes to lift itself out of the rut of low wages and an undereducated work force. Recent cuts in state spending forced 94 school districts to pass supplemental levies. Forty districts went to four-day weeks to save money.

The state has also backed away from higher education funding. Idaho already suffers from too few young people attending college, and those who do have seen their costs soar.

Education aside, the state also needs to spend more on transportation infrastructure. Otter made this a priority during his first term, but has backed off. He should reapply the pressure, because crumbling roads and bridges are bad for business. This, too, would not be cheap. An Otter task force from 2010 said the state should be spending an additional $500 million more a year.

Otter talks a lot about creating an environment that allows businesses to thrive, but cutting taxes only goes so far. Improving schools, universities and roads would take the state farther.

To respond to this editorial online, go to www.spokesman.com and click on Opinion under the Topics menu.