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Idaho Governor Proposes Tax Cuts, More Money for Education

Education, economy, transportation were all highlights in the governor's 2015 State of the State speech.

The following is highlights of Idaho Gov. Butch Otter's State of the State speech, which he delivered Monday.

Overall:

Otter's budget expects 5.5 percent revenue growth. The budget is a 5.2 percent increase from last year.

MORE: Text, highlights and video of every governor's annual address.

Education:

Otter proposes a $101 million increase in education spending over the current fiscal year, a 7.4 percent increase. Where much of the money would go:

- Salaries: $31.9 million to raise teacher salaries as part of a five-year plan to increase pay on a career ladder. New teacher salaries would go from $31,750 to $32,800. At the top of the scale teachers would go from $47,000 to $47,803. Some districts pay more than the state allots.

- Operational money: $20 million to increase operational funding for schools. The money is used to buy books, pay health insurance, pay the light bill. Lawmakers gave schools $35 million last year. The amount schools lost during the recession: $82.5 million.

- Classroom technology: $11 million. Districts would get $9 million to purchase technology; $2 million would go to teacher training.

- Idaho Education Network: $7.2 million to keep the system running in 2016. Otter is also requesting $1.6 million to keep IEN running through the remainder of this fiscal year. A district judge has said the $60 million broadband internet contract is illegal and the state is looking for a way to keep it going.

Taxes:

As expected, Otter proposes to cut income taxes on businesses and residents, currently at 7.4 percent. The reduction would be .1 percent over five years to 6.9 percent and only affect the state's top income bracket.

Workforce and Economy:

Otter says the state is at risk of being short on skilled workers in the coming years, by tens of thousands of people. He asks for $5 million for grants to address labor shortages.

He also seeks $3 million for the state's Economic Opportunity Fund intended to help attract businesses or expand existing ones.

Transportation:

Otter makes an expected pitch for transportation funding to address a backlog of maintenance on Idaho highways, long a goal of his office. According to him, the state has 785 deficient bridges now; that will be nearly 900 in 2019.

He does not mention a funding source for new dollars in his speech, such as hiking the gas tax. But, he said he "will not entertain proposals aimed at competing for General Fund tax dollars with education." Medicaid:

Otter wants committees to hold hearings looking at Medicaid options. The Legislature has generally not been in favor of expanding Medicaid as allowed under the Affordable Care Act.

Environment:

Otter proposes the state spend $750,000 to help conserve sage grouse habitat in the state to keep it from being listed under the federal Endangered Species Act.

Otter told state lawmakers that the sage grouse issue, along with the issue of transmission lines, could end up being resolved in federal court.

"I hope not, and we are working hard with Idaho landowners, sportsmen, federal land managers and other stakeholders to find common ground through our administrative processes on those issues," he said.

Gay marriage:

Otter pledges to continue his effort to defend Idaho's same-sex marriage ban, which a federal judge ruled unconstitutional last fall. He and Attorney General Lawrence Wasden recently filed appeals of the case to the U.S. Supreme Court.

Not mentioned: Adding wording to state law forbidding discrimination by sexual orientation. After several years of protesters trying to draw attention to the matter, Otter and several lawmakers have said a hearing on the "Add the Words" bill is possible this year.

(c)2015 The Idaho Statesman 

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