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BOISE - The Idaho House overwhelmingly passed a $253 million tax cut Feb. 3 — after some debate about how the cut might affect education budgets.
House Bill 40 is the largest of a series of proposed tax cuts totaling more than $400 million. It includes a buffet of cuts — including a $12 million income tax reduction for veterans and $1 million break on bullion. But the main course is a $240 million income tax cut, reducing the personal and corporate rates from 5.695% to 5.3%.
Republicans argued that another round of tax cuts would slow the growth of government, while continuing to fuel the economy.
“Tax cuts result in economic growth,” said House Majority Leader Jason Monks, R-Meridian, one of the bill’s co-sponsors. “There’s a reason people are flocking to Idaho.”
Several Democrats debated against the bill, saying it promises lavish tax relief to wealthy Idahoans and meager tax relief to working- class Idahoans.
And amidst political uncertainty — a possible trade war and a potential reduction in the $5 billion in federal funding coming to Idaho — House Minority Leader Ilana Rubel urged caution.
“Even the wealthiest are going to need police and schools to send their students to,” said Rubel, D-Boise, noting that GOP Gov. Brad Little had earmarked $100 million for tax cuts.
Republicans argued that the state has budgeted cautiously in past years — reducing taxes by $4.6 billion over six years, while also putting aside $1.4 billion in reserves. This buffer, they said, is enough to protect schools and other state services from economic turbulence.
“This is true budget control,” said Rep. Josh Tanner, R-Eagle, another bill co-sponsor. “This is true tax relief.”
In the end, HB 40 passed easily with bipartisan support. The 63-7 vote sends the bill to the Senate.
Community college presidents discuss impacts of growth Lori Barber brought the issue of growth to street level Monday.
The College of Eastern Idaho’s 688 parking spots are almost always full, the president of the Idaho Falls-based community college told House Education Committee members. The state’s newest two-year college hasn’t opened an academic building since 2007; since then, its number of credit-seeking students has increased by 273%.
“Parking is just one visible reminder of that growth,” Barber said.
Enrollment was up across the board last fall at Idaho’s four community colleges. The schools reported one-year increases in student headcount ranging from 7% to 18%, according to the State Board of Education.
On Monday, the college presidents all said they are dealing with the effects of growth — including waitlists for nursing and other popular programs.
The Idaho Launch postsecondary aid program has brought a “surge” of students to the College of Southern Idaho, President Dean Fisher said. In welding, for example, students take classes from 7 a.m. to 10 p.m.
Fisher urged lawmakers to support Gov. Brad Little’s $10 million request to add capacity at Idaho’s community and technical colleges.
“I know there’s a desire to not spend money, but we have to,” he said.
Barber, Fisher, College of Western Idaho President Gordon Jones and North Idaho College President Nick Swayne are also scheduled to speak to the Senate Education Committee on Monday afternoon. They are scheduled to make their budget pitches to the Joint Finance-Appropriations Committee later this month.
Community college tuition bill heads to House floor Before the community college presidents addressed the House Education Committee, lawmakers gave them the green light to increase tuition.
House Bill 79 would allow the colleges to charge up to $3,250 a year in tuition, up from the current $2,500 cap. This cap has been in place since 2008, and the colleges hit this maximum several years ago.
“We’re asking for a reasonable increase in the cap,” said Rep. Lance Clow, R-Twin Falls, the bill’s sponsor.
The bill allows annual increases of up to 10%. But Clow said it’s more likely the colleges would seek 5% increases — which would yield about $1.5 million statewide.
Without debate or public testimony, House Education sent the bill to the floor unanimously. A House vote could occur in the next few days.
Higher education contracts bill heads to Idaho House A House committee quickly approved a bill designed to help universities compete for state contracts.
House Bill 34 would “allow (state) agencies to obtain proposals and contract directly with Idaho universities,” according to the bill’s statement of purpose.
The agencies would be required to gauge the four-year schools’ interest in a contract. If multiple schools are interested in the contract, the agency would be required to select from the bids “based on cost and other relevant criteria.”
The goal is to allow all schools to vie for contracts that Boise-based agencies have historically awarded to Boise State University, said Rep. Rick Cheatum, R-Pocatello, the bill’s sponsor.
The state’s Department of Administration is co-sponsoring the bill. “It just streamlines the process,” Valerie Bollinger, the department’s purchasing administrator, told the House Commerce and Human Resources Committee Monday.
The committee’s unanimous vote sends the bill to the House for consideration.
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