Senate kills Idaho State Tax Commission budget because of added costs for school choice tax credit program
BOISE — The Idaho Senate on Monday killed the budget for the Idaho State Tax Commission, which included $675,000 to implement a school choice tax credit program approved by the Legislature this year.
The number came as a surprise to many legislators, who had voted on a bill with a much smaller estimated fiscal impact. However, public records obtained by the Idaho Press show that the governor’s staff had been aware of high anticipated costs in early February.
Budget writers on the Joint Finance Appropriations Committee said in mid-March that the commission would need seven additional full-time staff and new software to implement the new program. Under HB 93, the commission would be tasked with providing up to $5,000 in credit per student, or $7,500 for each student with disabilities, for use of educational expenses, including private school tuition. Passage of the bill marked the first time Idaho would allow state funds to go to private K-12 education.
Cost projections and timeline of HB 93
When House members voted on the bill on Feb. 7, the predicted cost was $125,000 in a one-time cost for programming and coding costs, and two full-time positions at no extra cost because of existing vacancies.
When the bill went to the Senate for a vote on Feb. 19, the projected cost went up to three full-time employees and five seasonal employees to a total of $255,800 when including the one-time costs for programming and coding.
According to bill sponsors Rep. Wendy Horman, R-Idaho Falls, and Senate Majority Leader Lori Den Hartog, R-Meridian, the lawmakers received new information from the tax commission about its costs after the passage of HB 93.
Gov. Brad Little’s staff, however, had been informed, records show.
On Feb. 4, Idaho State Tax Commission Chairman Jeff McCray emailed a letter to one of Little’s staffers, writing that the commission estimated a total implementation cost of $833,000 with 10 additional full-time employees.
Another email to Little’s staff, from the Government Affairs Program Manager Aaron Yost, indicated on Feb. 14, that while the fiscal note had been revised in the Senate, it was “not in alignment with (the) original request or additional letter provided.”
Yost, in the bulleted list of legislative activity the commission was tracking, wrote that “resource for administration is a concern,” and in an updated projected impact, estimated the commission would need $708,000 to implement.
Another email from McCray indicated that prior to the legislative session, individuals associated with drafting the bill had been informed of a projected need for 10 new full-time employees. McCray wrote that he shared a document indicating the need at a Dec. 18 meeting with House Speaker Mike Moyle, R-Star, and Meridian Republican Rep. Jason Monks, who was a co-sponsor on the bill.
Horman and Den Hartog were not at the meeting.
The governor’s office could not immediately be reached for comment.
Senate debate
Sen. Janie Ward-Engelking, D-Boise, said she struggled with the budget.
“We’re already seeing an escalation in what House Bill 93 was supposed to cost,” Ward-Engelking said. “... this is a lot of money. It’s growing government.”
Sens. Jim Guthrie, R-McCammon, and Dave Lent, R-Idaho Falls, also said they were voting against the bill because of the significant change in the projected cost in the budget compared to what it was when they voted.
The money for the new positions was proposed to be taken out of the $50 million made available for the program — leaving $49.325 million available.
The budget bill for the commission totaled around $1.8 million, including for costs related to a contract to process certified mail and replacements for computers, laptops, and security infrastructure.
The budget died in a 13-22 vote.