Thursday, March 26, 2009

Freeze teacher pay, cut retirement perk

From The Statesman

ID House: Freeze teacher pay, cut retirement perk

For the second day, Democrats and Republicans in the Idaho House clashed over a plan to cut Idaho's public education budget.

And for the second time the outcome was assured: Republicans who control nearly three-quarters of the chamber led a 49-20 vote, this time to cut $8.1 million from public education funding by freezing automatic experience-based salary increases and phasing out an early retirement incentive for teachers.

The vote was virtually identical to Wednesday's 50-20 decision to cut $4.2 million from state bus reimbursements to local school districts, including more than $1.4 million to the school district in Boise.

Democrats argued that Thursday's bill, which now heads to the Senate, will expose Idaho to lawsuits from the teachers union because freezing the pay for even one year could lower teachers' retirement pay.

Republicans said it's needed to balance the state budget.

"These are not fun times. We're not here with big smiles on our faces," said Rep. Bob Nonini, R-Coeur d'Alene and chairman of the House Education Committee. "We all have a common enemy here, and it's a bad economy."

Superintendent of Public Instruction Tom Luna, who supports the bill, wants to cut Idaho's public education budget in fiscal year 2010 by $62 million, though Gov. C.L. "Butch" Otter has favored a more drastic, $109 million austerity plan.

The measures voted on Wednesday and Thursday account for roughly $12.3 million.

Minority Democrats, outnumbered 52-18 in the House, again attempted to derail the vote. On Wednesday, they had forced the bus-reimbursement reduction bill to be read in its entirety; Thursday, they called for the bill to be sent back to Nonini's committee, arguing it is unconstitutional.

When that effort failed, Democrats said that suspending an automatic 3.75 percent pay increase, based on teachers gaining another year of experience, would likely provoke a lawsuit from the Idaho Education Association teachers union since it could reduce some educators' pension payments.

"The consequences of losing a year on the ladder will follow a teacher year after year," said Rep. Grant Burgoyne, D-Boise and a lawyer. "That, in my opinion, denies a teacher certain vested rights."

Teachers would still be able to qualify for a step up in pay based on their educational levels.

Democrats also said they wanted to use nearly $200 million in state education reserves and money from Idaho's share of the federal economic stimulus package, rather than making the cuts.

"I understand we have a hard economy," said Rep. Branden Durst, D-Boise. "I also understand we have hundreds of millions of dollars in stabilization funds we could use."

House Majority Caucus Chairman Ken Roberts, R-Donnelly, countered Idaho should protect its educational reserves in case the economy sours further in coming months. The deepening slump has already driven unemployment in the state to a 21-year high of 6.8 percent while reducing state tax revenue by a projected $400 million for the fiscal year through June 30, compared to fiscal year 2008.

Tapping those reserves now would be "setting ourselves up for a potential tax increase," Roberts argued. "That's one of the two scenarios we're going to be setting up: Either further cuts, or increased taxes. This legislation is a step in the direction of being able to manage our budget."

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