On February 3, 2025, this item was first published on IdahoEdNews.org.
Following considerable discussion regarding the potential impact of the tax cut on education budgets, the Idaho House enacted a $253 million tax cut by an overwhelming vote on Monday.
The largest of the proposed tax cuts totaling over $400 million is House Bill 40. It offers a wide range of tax breaks, such as a $1 million bullion break and a $12 million income tax discount for veterans. The centerpiece, however, is a $240 million income tax decrease that lowers the corporate and personal rates from 5.695% to 5.3%.
Republicans contended that further tax cuts would continue to boost the economy while slowing the expansion of government.
One of the bill’s co-sponsors, House Majority Leader Jason Monks, R-Meridian, stated that tax cuts lead to economic growth. People are moving to Idaho for a reason.
During the discussion, a number of Democrats opposed the plan, arguing that it would provide rich Idahoans with extravagant tax breaks while providing working-class Idahoans with very modest tax breaks.
And in the face of political unpredictability, a potential trade war, and a possible cutback in the $5 billion in federal support that Idaho receives, House Minority Leader Ilana Rubel advised prudence.
Rubel, a Democrat from Boise, stated that even the wealthiest will require police and schools to send their children to, pointing out that Republican Governor Brad Little had set aside $100 million for tax cuts.
Republicans contended that the state has previously practiced prudent budgeting, lowering taxes by $4.6 billion over six years and setting aside $1.4 billion for reserves. They claimed that this buffer would be sufficient to shield state services, including schools, from economic volatility.
Another measure co-sponsor, Rep. Josh Tanner, R-Eagle, stated that this is real budget restraint. This is a real tax break.
Ultimately, HB 40 received bipartisan support and passed with ease. The bill is sent to the Senate by the 63-7 vote.
Community college presidents discuss impacts of growth
On Monday, Lori Barber raised awareness of the growth issue.
The president of the community college located in Idaho Falls, the College of Eastern Idaho, informed members of the House Education Committee that the college’s 688 parking spaces are nearly always full. The newest two-year institution in the state has seen a 273% growth in the number of students pursuing credit since it last inaugurated an academic building in 2007.
According to Barber, parking is merely one obvious indication of that expansion.
Last fall, enrollment at all four of Idaho’s community colleges increased. The State Board of Education reported that the schools’ one-year growth in student headcount ranged from 7% to 18%.
All of the college presidents stated on Monday that they are coping with the consequences of expansion, such as waiting lists for popular majors like nursing.
According to President Dean Fisher, the College of Southern Idaho has seen a spike in enrollment as a result of the Idaho Launch postsecondary aid program. For instance, lessons in welding go from 7 a.m. to 10 p.m.
Legislators were asked by Fisher to back Governor Brad Little’s $10 million request to expand the capacity of Idaho’s technical and community institutions.
“I understand that there is a desire to avoid spending money, but we must,” he stated.
On Monday afternoon, Barber, Fisher, Gordon Jones, the president of the College of Western Idaho, and Nick Swayne, the president of North Idaho College, are also expected to address the Senate Education Committee. Later this month, they are expected to present their budget proposals to the Joint Finance-Appropriations Committee.
Community college tuition bill heads to House floor
Lawmakers authorized the community college presidents to raise tuition before they spoke before the House Education Committee.
House Bill 79 would raise the current $2,500 annual tuition maximum to $3,250, allowing universities to charge more. The colleges reached this level a number of years ago, and the cap has been in effect since 2008.
According to the bill’s sponsor, Rep. Lance Clow, R-Twin Falls, “we’re asking for a reasonable increase in the cap.”
The measure permits hikes of up to 10% per year. According to Clow, however, it is more likely that the universities would ask for 5% raises, which would bring in roughly $1.5 million for the state.
House Education unanimously advanced the bill to the floor without discussion or public testimony. There may be a House vote in the coming days.
Higher education contracts bill heads to Idaho House
A bill to assist universities in competing for state contracts was swiftly passed by a House committee.
According to the bill’s statement of purpose, House Bill 34 would permit (state) agencies to solicit proposals and enter into direct contracts with Idaho institutions.
The four-year institutions’ interest in a contract would need to be assessed by the agencies. The agency would have to choose between the bids based on price and other pertinent factors if more than one institution expressed interest in the contract.
According to the bill’s sponsor, Rep. Rick Cheatum, R-Pocatello, the intention is to provide all colleges the opportunity to compete for contracts that Boise-based organizations have traditionally given to Boise State University.
The bill is being co-sponsored by the state’s Department of Administration. The department’s purchasing administrator, Valerie Bollinger, told the House Commerce and Human Resources Committee on Monday that it just expedites the procedure.
After a unanimous committee vote, the bill is sent to the House for review.
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