Help on its way for schools

BOISE - Idaho public schools are expected to receive about $51 million to protect teaching positions as part of a job-saving measure signed into law by President Barack Obama on Tuesday.

The money is part of a $26 billion bill aimed at helping teachers and other public workers avoid layoffs, and will be funneled to Idaho schools as they head into their worst budget year.

Idaho Superintendent of Public Instruction Tom Luna said the education money is expected to be distributed to states within 45 days and that it appears school districts will have up to 27 months to spend their portion.

But Luna cautioned districts eager to use the funding to avoid layoffs or rehire teachers, citing uncertain economic times ahead. "Until we're in a more comfortable position, I would be careful with those dollars," Luna said.

Idaho's health insurance program for the poor will also get a boost from the bill, which would be paid for mainly by closing a tax loophole used by multinational corporations and reducing food stamp benefits for the poor.

The 2010 Idaho Legislature ended in March, leaving school districts with about $128 million less in funding when classes start this fall. The budget, which slashes spending on public education for the first year in state history, included a provision that declared a financial emergency for Idaho schools.

That opened the door for districts to negotiate lower pay and benefits or lay off educators to help balance the books. Cuts ranged from deals that force employees to take unpaid days off to lower salaries.

School districts would be able to put this new money from the jobs bill toward the salaries of teachers and teacher aides, Luna said. The state is waiting for guidance on how the money will be distributed to school districts.

Idaho Education Association President Sherri Wood estimated the bill would help save the jobs of nearly 900 teachers, classroom aides, bus drivers and other education professionals in Idaho.

The legislation provides $10 billion to school districts nationwide to rehire laid-off teachers or to ensure that more teachers won't be let go before the new school year begins.

It also sends $16 billion to continue Medicaid funding for six additional months at levels set under the 2009 federal stimulus act.

Idaho Health and Welfare spokesman Tom Shanahan said the agency will now need an extra $14 million to maintain Medicaid at current levels through June. If Congress had not acted, the program would have faced a projected $71 million shortfall.

In January, Gov. Butch Otter proposed dipping into Idaho's 1998 tobacco settlement to shore up any shortfall.

Otter said he could use tobacco money to mitigate cuts elsewhere - if he didn't need it for Medicaid.

Otter's spokesman, Jon Hanian, said Tuesday the governor was still assessing the impact of any new money, but remained leery of counting on federal relief.

"Based on hurried passage of this legislation, and the lack of clear guidance from the administration, it would premature to start spending this money before we have all the answers," Hanian said.

Associated Press Writer John Miller also contributed to this report.