Idaho governor is in a spending mood

BOISE - Idaho Gov. C.L. "Butch" Otter recommended a $125 million boost in education funding and $46 million in business tax relief during his State of the State and fiscal 2018 budget address Monday.

The three-term governor didn't mention transportation funding, however, nor did he propose any steps to address the health care needs of Idaho's Medicaid gap population.

In his 11th and likely next-to-last State of the State, Otter emphasized the importance of education in improving the lives of Idaho citizens.

"It's our responsibility and duty as elected leaders to preserve and protect the steady framework of opportunity that the people of Idaho need in order to confidently pursue their dreams and freely express their civic virtue," he said. "That's why such a large share of my executive budget continues to address our five-year plan for improving public schools."

Otter recommended a $1.686 billion K-12 education budget next year, an increase of $101.4 million or 6.4 percent. That includes $58 million for the third year of the career ladder teacher pay initiative, as well as another $10 million for classroom technology.

Colleges and universities would see a $6 million, 2.2 percent increase in general fund support, while community colleges would get an extra $2.35 million, for a 6.4 percent increase.

Otter also recommended setting aside $35 million in the Permanent Building Fund for higher education facilities. This includes $10 million for Lewis-Clark State College's proposed career-technical facility - about half the amount needed to construct the building - as well as $10 million for the University of Idaho's proposed Center for Agriculture, Food and the Environment located in the Magic Valley.

"This was great news for students in the (Lewiston-Clarkston) valley," said LCSC President Tony Fernandez, who attended the State of the State address together with Lewiston School Superintendent Bob Donaldson.

Planning is in the early stages, but LCSC is looking at a facility of at least 100,000 square feet - something that could be a regional center that would serve high school students and others seeking two- or four-year degrees and certificates.

The college hopes to break ground in 2018. The total projected cost is $20 million. The $10 million in the governor's budget would initially be held in savings; once the remaining money is raised, the Legislature would approve spending authority for those funds.

"We think (the project) is entirely doable now," Fernandez said.

The $10 million in matching funds would come in part from institutional reserve funds, he said. LCSC is also working on a $3 million economic development grant, as well as other grant opportunities. The project doesn't depend on the upcoming Lewiston High School bond levy, he said, although "to best serve students, we need both facilities."

Otter said his budget recommendations are "about more than providing the skilled workforce our employers need. Ultimately, my proposals are about doing the right thing for the next generation of Idahoans."

The governor did not, however, propose a solution to the Medicaid gap issue, which keeps about 78,000 adult Idahoans from receiving preventative health care because they earn too much to qualify for Medicaid and too little to qualify for subsidized insurance premiums through the Affordable Care Act.

When asked what he would tell those individuals - people who have waited for years for the Legislature to craft a solution - Otter seemed to suggest the problem isn't as significant as the media has indicated.

"They aren't waiting for a solution," he said. "Contrary to predictions, I think there's still a lot of health care available for those folks. It might not be what we or what they want, but the (health care) portals are there."

Rep. Paulette Jordan, D-Plummer, described that comment as "highly unfathomable."

"It makes you wonder what his solution is, other than to dismantle the Affordable Care Act," she said.

Close the Gap Idaho, a coalition of health care providers and policy experts, held a news conference Monday afternoon and said the governor's comments didn't reflect reality.

"Tell him to hop on GoFundMe (a crowd source funding website) and see how many Idahoans across the state are asking for help paying their medical bills," said Luke Cavener, the Idaho director for the American Cancer Society and Cancer Action Network. "Tell him to visit a public health clinic."

Tim Heinze, CEO of the Valley Family Health Care community clinic in Payette, said critics frequently say the gap population can still get emergency care at hospitals, "but that's not good care."

"It isn't an appropriate setting, there isn't follow-up care and you end up waiting three hours," he said. Affordable health insurance coverage "is a fundamental piece" of providing adequate care for everyone.

Rep. Mike Kingsley, R-Lewiston, noted that Otter briefly touched on the gap population during his speech, "but then he seemed to change the subject."

"He also didn't mention transportation," Kingsley said.

Overall, he wasn't sure how well the governor's priorities would be received by the Legislature.

"There's a lot of talk about tax cuts," he said.

Otter's budget included a $46 million cut in the unemployment insurance tax Idaho businesses pay.

House Speaker Scott Bedke, R-Oakley, said that's a significant reduction, "but I feel like we can do better - and I expect the Legislature will support that belief. In my mind, there's room (in the budget) for a little of everything."

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Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.