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<DIV><FONT face=Tahoma size=2>I just received this piece from a school board
friend of mine and it seems to me to provide legitimate reasons to vote against
the Advisory Vote on tomorrow's ballot. </FONT></DIV>
<DIV><FONT face=Tahoma size=2></FONT> </DIV>
<DIV><FONT face=Tahoma size=2>Sue Hovey</FONT></DIV>
<DIV><FONT face=Tahoma size=2><B></B></FONT> </DIV>
<DIV><FONT face=Tahoma size=2><B>Subject:</B> ATTENTION: Additional Information
on the Advisory Vote<BR><BR></DIV></FONT>
<DIV class=Section1>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Greetings
Trustees:<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">One more day until the elections… Per
previous correspondence and the position taken by the ISBA Executive Board in
September the ISBA urges you to get out the vote on the Ballot Initiative.
Our position and message… <I><FONT color=red><SPAN
style="COLOR: red; FONT-STYLE: italic">VOTE
NO</SPAN></FONT></I>.<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">In addition to the efforts of your
association, below please find information assembled by <st1:place
w:st="on"><st1:PlaceName w:st="on">Boise</st1:PlaceName> <st1:PlaceName
w:st="on">Independent</st1:PlaceName> <st1:PlaceType w:st="on">School
District</st1:PlaceType></st1:place> Trustee, Orndorff. ISBA has
received a request from Dan Hollar, Boise School District PIO, to have the
document distributed to all superintendents and trustees statewide. As a
courtesy to the <st1:place w:st="on"><st1:PlaceName
w:st="on">Boise</st1:PlaceName> <st1:PlaceType w:st="on">School
District</st1:PlaceType></st1:place> and Region III Boards, we request that you
take a moment to review the information and disseminate as you see
appropriate.<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Thank you for your time and
consideration in these regards.<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal><B><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Sincerely,
<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal><B><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></B></P>
<P class=MsoNormal><B><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Dr. Clifford L.
Green<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal><B><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">ISBA Executive
Director<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></B></P>
<P class=MsoNormal
style="TEXT-ALIGN: center; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"
align=center><B><U><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Effect on Taxpayers, State Budget and
Education<o:p></o:p></SPAN></FONT></U></B></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><U><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Effect on
Taxpayers</SPAN></FONT></U></B><U> - It is a major shift in tax policy with
<B><SPAN style="FONT-WEIGHT: bold">no net overall tax
benefit</SPAN></B>.<o:p></o:p></U></P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"><![if !supportLists]><FONT
face=Symbol size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><SPAN
style="mso-list: Ignore">·<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]>Lowers property taxes [$260
million] </P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"><![if !supportLists]><FONT
face=Symbol size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><SPAN
style="mso-list: Ignore">·<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]>Increases sales taxes [$219
million] </P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"><![if !supportLists]><FONT
face=Symbol size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><SPAN
style="mso-list: Ignore">·<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]>Increase in income taxes - Property
tax reduction will increases Federal and State income taxes on individuals and
business $63 million. Business can deduct sales tax (individuals cannot)
for a $26-30 million income tax offset to business's sales tax increase.
Net overall effect - nil. </P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1"><![if !supportLists]><FONT
face=Symbol size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><SPAN
style="mso-list: Ignore">·<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]>Winners and losers: </P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level2 lfo1"><![if !supportLists]><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt"><SPAN
style="mso-list: Ignore">1.<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><U>A Clear Winner</U> - Federal
government will get more income taxes. </P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level2 lfo1"><![if !supportLists]><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt"><SPAN
style="mso-list: Ignore">2.<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><U>A Clear Winner</U> -
Out-of-state property owners - they get a tax windfall. </P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level2 lfo1"><![if !supportLists]><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt"><SPAN
style="mso-list: Ignore">3.<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><U>Winner</U> - Large property
owners who pay less sales taxes - subject to their buying practices on taxable
goods each year. </P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level2 lfo1"><![if !supportLists]><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt"><SPAN
style="mso-list: Ignore">4.<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><U>Small loser, small winner or
break-eve</U>n - Covers most <st1:State w:st="on"><st1:place
w:st="on">Idaho</st1:place></st1:State> taxpayers. When they make a major
taxable purchase, they are <U>A Clear Loser.</U> </P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level2 lfo1"><![if !supportLists]><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt"><SPAN
style="mso-list: Ignore">5.<FONT face="Times New Roman" size=1><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><U>A Clear Loser</U> - 28% of
<st1:State w:st="on"><st1:place w:st="on">Idaho</st1:place></st1:State>
households (home renters). They pay a 20% increase in sales tax with no
property tax reduction offset. </P>
<P class=MsoNormal><B><U><FONT face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Effect on the State
Budget</SPAN></FONT></U></B><U> - It creates a budget imbalance - squarely pits
Public and Higher Education against fast growing Medicaid and Prisons for
funding. </U></P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt">The new law will
cost $437 million to implement, 19% of the state budget, ($260 school M&O
replacement, $100 stabilization fund and $77 million shortfall in FY07 sales tax
collections because the cash flow will not start until December). This will be
paid with: FY05 carryover of $100 million, FY06 surplus of $203 million [$133
million is one-time money] and FY07 sales tax collections of $142 million.
<U>It saps all of the state's funding flexibility with little net
benefit</U>. </SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt">Thereafter, it will
cost $260 million annually with only $219 million new sales tax replacement
money, $41 million short. The $41 million will be paid from future
surpluses (hoped-for), budget cuts or another tax increase.
</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><B><U><FONT
face="Times New Roman" size=3><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt">Effect on
Education</SPAN></FONT></U></B><U> - It's a profound change in state and local
education policy with little analysis and debate.<o:p></o:p></U></P>
<P class=MsoNormal
style="MARGIN-LEFT: 39pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN style="FONT-SIZE: 12pt">Except for property
tax override elections, 100% of all school M&O will become the sole
responsibility of the state - Some probable "unintended" consequences are as
follows:</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· De facto
statewide school district - shifts local control to state
control</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Shifts
stable funding source to uncertain (Legislature's Joint Finance Appropriations
Committee to decide future funding)</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Funding
competition with Medicaid and Prisons - education may suffer</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Promote rich
vs. poor districts - rich pass property tax overrides, poor
cannot</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Statewide
teacher contract negotiations</SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Encourage
spending uniformity between districts, <B><U><SPAN
style="FONT-WEIGHT: bold">or</SPAN></U></B><U> </U></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN-LEFT: 75pt; TEXT-INDENT: -0.25in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><FONT
face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">· Encourage
litigation to stop discriminatory spending practices</SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P></DIV>
<P>
<HR>
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