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<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri
size=3>January 29, 2009</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>Dear
Friends:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>I have
spent some painful days on the Joint Finance Committee (JFAC) as we discuss
reductions in the Idaho budget to respond to Idaho’s slow economy.<SPAN
style="mso-spacerun: yes"> </SPAN>Proposed reductions involve cutting
support to struggling families, individuals suffering from cystic fibrosis,
individuals suffering from epilepsy, severe cuts to higher education, public
education, etc.<SPAN style="mso-spacerun: yes"> </SPAN><SPAN
style="mso-spacerun: yes"> </SPAN>It’s hard to think of raising fees for
much needed work on highways and bridges with so many people losing jobs. <SPAN
style="mso-spacerun: yes"> </SPAN>I am happy to see Congress moving
towards a stimulus package that should give a certain amount of relief.<SPAN
style="mso-spacerun: yes"> </SPAN>The notion of the economic stimulus is
not unanimous (especially among the Idaho delegation), but I hope my colleagues
in the Idaho Legislature will agree to use the opportunity to assist vulnerable
citizens, protect education, and stimulate the economy.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>Today
in JFAC, State Superintendent of Public Instruction Tom Luna presented his
budget.<SPAN style="mso-spacerun: yes"> </SPAN>Currently, he is directed
to cut $80 million in expenditures.<SPAN style="mso-spacerun: yes">
</SPAN>That could grow worse after we examine revenues for the month of
January.<SPAN style="mso-spacerun: yes"> </SPAN>Superintendent Luna’s
official recommendations include:</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>1.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Reduce discretionary funds by the
amount of state lottery and state maintenance matching funds.<SPAN
style="mso-spacerun: yes"> </SPAN>(Interest portion only)<SPAN
style="mso-spacerun: yes"> </SPAN>Cut the general fund match.<SPAN
style="mso-spacerun: yes"> </SPAN>Temporarily relieve state from match
requirement in FY 2010 and 2011, and allow discretionary use of the funds.<SPAN
style="mso-spacerun: yes"> </SPAN>The cost savings is approximately
$20,825,000.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt 0.75in"><FONT face=Calibri
size=3>[In essence this transfers lottery funds sent to schools for school
building related projects to discretionary <SPAN
style="mso-spacerun: yes"> </SPAN>funds.<SPAN
style="mso-spacerun: yes"> </SPAN>A district’s discretionary funds are
those that don’t have strings attached directing how they are to be spent.<SPAN
style="mso-spacerun: yes"> </SPAN>Districts have very little in the way of
discretionary funds.]</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>2.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT size=3><FONT face=Calibri><SPAN
style="mso-spacerun: yes"> </SPAN>Reduce the administration staff allowance
from 0.075 to 0.0715 per midterm support unit.<SPAN
style="mso-spacerun: yes"> </SPAN>The cost savings is
$3,924,000.</FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt 0.75in"><FONT face=Calibri
size=3>[This reduces state support to Districts for administrative
salaries.]</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>3.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Eliminate Early Retirement
incentive Program for teachers.<SPAN style="mso-spacerun: yes"> </SPAN>The
cost savings is $4,000,000.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt 0.75in"><FONT face=Calibri
size=3>[The cost savings on this one is highly suspect.<SPAN
style="mso-spacerun: yes"> </SPAN>The early retirement incentive program
saves a considerable amount of state money for salary support.]</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>4.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Freeze experience movement on the
grid for one year.<SPAN style="mso-spacerun: yes"> </SPAN>The cost savings
is $6,130,000.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt 0.75in"><FONT face=Calibri
size=3>[Depending upon the number of years of teaching experience, and upon
education, some teachers receive a salary increment for an additional year of
experience.<SPAN style="mso-spacerun: yes"> </SPAN>Because of policy
regarding the salary grid, many teachers don’t receive this increment.<SPAN
style="mso-spacerun: yes"> </SPAN>This measure would not award the
experience increment to teachers who would normally receive it.]</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>5.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Reduce base salaries by the
equivalent of three contract days.<SPAN style="mso-spacerun: yes">
</SPAN>Give local school districts discretion to absorb this cut by attrition,
not filling open positions, eliminating in-service days or combing half-days
into full days.<SPAN style="mso-spacerun: yes"> </SPAN>Also give school
districts additional flexibility by removing the provision “use it or lose
it.”<SPAN style="mso-spacerun: yes"> </SPAN>The cost savings is
$15,097,600.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt 0.75in"><FONT face=Calibri
size=3>[One should note that the cost of a contract day to a teacher is the
yearly salary divided by 190.]</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>6.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Reduce state funding for
textbooks by 40%.<SPAN style="mso-spacerun: yes"> </SPAN>The cost savings
is $3,800,000.</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>7.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Reduce funding for classroom
supplies from $350 to $300 per classroom teacher per year.<SPAN
style="mso-spacerun: yes"> </SPAN>The cost savings is $781,000.</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 10pt 0.75in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1"><SPAN
style="mso-bidi-font-family: Calibri"><SPAN style="mso-list: Ignore"><FONT
face=Calibri size=3>8.</FONT><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><FONT face=Calibri size=3>Use $17 million from the School
Budget Stabilization Fund.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri size=3>Other
proposals are included, totaling $62 million in reductions.<SPAN
style="mso-spacerun: yes"> </SPAN>This is not the official budget.<SPAN
style="mso-spacerun: yes"> </SPAN>After each agency presents its budget
request, members of JFAC prepare motions, upon which there is an official
vote.<SPAN style="mso-spacerun: yes"> </SPAN>I expect a vigorous debate
with alternative suggestions.<SPAN style="mso-spacerun: yes"> </SPAN>When
we get official word regarding the stimulus package, those funds should be
incorporated into budgets.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 10pt"><FONT face=Calibri
size=3>Shirley</FONT></P></FONT></DIV></BODY></HTML>