Spokane Public Radio News

Wednesday, April 05, 2006

Idaho house votes for school funding changes

By Doug Nadvornick, Spokane Public Radio

Idaho House members today approved a bill that changes the way the state pays for schools. The vote was 44-to-26. The proposal would shift funding for school maintenance funding from the property tax to the sales tax.

If it passes, property tax levels would be lowered, while the state sales tax would be increased by one and a quarter percent.

Supporters of the plan say they're responding to pressure from voters to stop the rapid increase in property tax bills.

House Speaker Bruce Newcomb says the bill will also help with another problem, funding school construction projects.

“If you give your constituents 30-percent property tax relief, and that would be the average number, and it will vary in every district, you give them 30-percent property tax relief, you have freed up their ability to pass school bonds.”

Democrats oppose the proposal. They say shifting school funding is a bad idea because the sales tax is less stable than the property tax. They say low-income residents will assume more of a burden of funding schools.