‘06 tax shift still divides Idaho leaders

Ten years ago today, Jim Risch was a governor in a hurry. Appointed in May 2006, Risch was halfway through a seven-month term when he convinced the Legislature to sign off on one of his top priorities. Risch’s bill to slash property taxes for public schools by $260 million passed on Aug. 25, 2006, at the end of a one-day special legislative session. The tax overhaul, House Bill 1 , forced schools to rely on state sales and income taxes for a larger piece of their budget pie. Critics say the law left schools vulnerable to the ravages of the Great Recession that followed; when state tax collections dropped, so too did state funding for K-12. Ultimately, the Risch plan did cut property taxes. But because of its built-in sales tax increase, it provided no real tax relief . Now a U.S. senator, Risch stands by his plan/ Kevin Richert , Idaho Education News. More here.