A nonpartisan group spearheaded by former education officials is proposing a bill to the Idaho Legislature that would realign the state’s sales tax framework and create more than $760 million in revenue, much of which would fund public education.
The proposal calls for repealing 43 of the state’s 106 sales tax exemptions, extending sales tax to 17 categories of services and reducing the sales tax rate from 6 percent to 4 percent. The group estimates the moves will produce $769,190,000 that can be used for schools.
Robert Huntley and other members of the nonpartisan association, Totally Optimistic Advocates Dedicated to Students, or TOADS, presented the Education Funding Act of 2021 to Gov. Brad Little and state legislators to consider this legislative session, which convened Monday.
Huntley discussed the proposed bill Wednesday at a League of Women Voters of Moscow virtual forum. His talk was titled, “Idaho Education: Coping with Short-Term Stress, Investing for Long-Term Success.”
TOADS is comprised of 45 to 50 present and past school officials and various patrons and collaborating organizations throughout the state.
Huntley said Idaho education, including K-12 through higher education, is underfunded by about $1.3 billion per year. That includes $700 million in K-12, $340 million in higher education, $52 million to fund the second half day of kindergarten and covering the $216 million in school district levies.
“Never once have I seen anybody come up with some numbers as to what the amount of the underfunding is and it seems to me you have to know what the underfunding is before you can start deciding what your solution has to be,” Huntley said.
He said about $88 million of the $769.2 million would be allocated by statute to counties, municipalities and other areas, relieving pressure on those property taxes. The remaining money would relieve pressure on school district property taxes by reducing the need for school levies.
The bill would also add an eighth income tax bracket which would bring in new revenue of $174 million.
Huntley said Idahoans’ state and local level taxes rank among the lowest in the nation, both on an income and per capita basis.
Gov. Brad Little proposed a mix of tax cuts in his State of the State Address Monday and many legislators want to cut taxes too, which would take money away from education and other needs, Huntley said.
He said politicians, school officials and many members of the public have expressed support for education but almost none have presented a specific plan to raise taxes or “cannibalize” other programs to gain the revenue needed for education.
Huntley said various groups and the public need to mobilize and help solve the education funding issue.
“I think that we have to tell people, to advocate for education without more funding is disingenuous, and we should insist that there should be no more tax reductions like they are planning in this Legislature until education is adequately funded,” he said.
Garrett Cabeza can be reached at (208) 883-4631, or by email to gcabeza@dnews.com.