Some of you are aware that I have suggested 7 ideas that should be discussed in order to balance the budget. I have added two more and now there 9 ideas. If the state of Idaho is facing a $180 million shortfall, then public schools' portion of that budget shortfall is about $90 million. How will this shortfall be addressed?
I have listing these 9 ideas with the hope that other ideas will surface and from the list of ideas the best ideas will be implemented. I am not supportive of all of these ideas, and in fact, not all of them are needed. The legislature only needs to find $90 million in savings in public education and the ideas listed total over $350 million. Here are my thoughts on each of the 9 ideas. If you have any other ideas, I would be happy to add them to the list.
Option #1: Establish a twelve week kindergarten program to get kids ready for school rather than the current 36 week program. Potential Savings - $40 million
Comments -- Very supportive – A targeted kindergarten program aimed at those behind the other students could overcome the"Matthew Effect” and still accomplish much of what is currently being accomplished.
Option #2: Reduce wages and benefits to all teachers and administrators by 12 percent – Potential Savings $89 million.
Comments – Not supportive - I don't think this is a good idea.
Option #3: Create a statewide medical insurance pool for teachers that has a high deductible policy with a Health Savings Account – Potential Savings $15 to $35 million
Comments – Very supportive -- Depending upon the details this concept has the potential to both improve medical accessibility and reduce costs.
Option #4: Cut technology improvements by 25 to 50 percent – Potential Savings $6 to $12 million
Comments – Supportive – Superintendent Luna has suggested spending $24 million a year for several years on technology in the classroom. I am not sure every classroom or teacher would or could use this technology.
Option #5: Cut all or some teacher aids – As of FY10, Idaho school districts and charter schools paid approximately 3,000 FTP worth of "Instructional Assistants" about $70 million is salaries. At a minimum, there would be an additional 7.65% cost for FICA on top of that. Only those working half time or greater would have PERSI paid as well, at an employer cost rate of 10.39%.
Comments – Somewhat supportive – Idea #6 is accomplished by having fewer teachers. It seems to me that the number of aids and teachers are related and can't be discussed separately.
Option #6: Increase class size by 2 – Potential Savings $100 million
Comments – Supportive – This is Superintendent Luna's way to fund changes in public education. It should be discusses in conjunction with option #5. The underlying issue of this concept is how to increase the number of motivated students.
Option #7: Encourage motivated students to take two summer classes in order to graduate a year early* – Potential Savings between $13 million and $90 million
Comments – Very supportive – The legislature started moving this direction last year with the passage of the MAPP bill that allows and encourages students to graduate early with a scholarship. The problem is that this idea will not help this year's budget. This is a long-term strategy. Let me point out that 72 credits are required to graduate from most high schools in the state beginning in the 7th grade. 5 years x 14 credits = 70 credits. This means that if motivated students took two summer classes sometime between the 7th grade and the 11 grade, they could graduate a year early.
Option #8: Eliminate public funding for all sports programs – Potential Savings Unknown
Comments – Not supportive
Option #9: Consolidate school districts – Potential Savings around $17 million
Comments – This is a local choice.
Summary
If the kindergarten idea were implemented ($40 million), a statewide pool created ($35 million), and less money were allocated for technology ($12 million), this would total approximately $87 million. The budget problem may be solved with no wages cuts and medical insurance may even be improved. I think it can be done.
http://chum.ly/n/63ff10
Sunday, January 30, 2011
Friday, January 28, 2011
House GOP leaders raise budget concerns - Eye On Boise - Spokesman.comSpokesman.comSpokesman.com - Jan. 27, 2011
www.spokesman.com/blogs/boise/2011/jan/27/house-go...#more
This is an article that details the size of the budget shortfall at $185 million
http://chum.ly/n/6320bd
This is an article that details the size of the budget shortfall at $185 million
http://chum.ly/n/6320bd
Wednesday, January 26, 2011
Post from steventhayn at CHUM.LY
Can the State of Idaho Reduce its Budget by $200 million?
The legislature is faced with a growing shortfall in state tax revenues. I would like to offer suggestions on how to reduce costs by $200 million or 8 percent of the total state general fund budget. I chosen an organized approach to approach with this problem.
1. Choose a target number - $200 million
2. Determine the percent of the budget – 8 percent
3. Determine the size of the 5 areas of the budget.
a. K-12 - $1.2 billion
b. Other education - $360 million
c. DHW – $463 million
d. Public safety - $222 million
e. All other - $120 million
4. Reduce each area of the budget by 8 percent to establish a baseline goal for each budget.
a. K-12 - $96 million
b. Other education - $28 million
c. DHW - $36 million
d. Public safety - $17 million
e. All other - $9.6 million
5. Start identifying targeted budget cuts to try to reach goals in section 4. I started with k-12 education and have developed several strategies for comparison purposes only. The following options are designed to help understand the ramifications of different approached to budget cutting ideas with the hope that the least harmful can be identified.
Option #1: Fund a six week summer kindergarten program to get kids ready for school rather than the current 36 week program. Potential Savings - $50 million
Option #2: Reduce wages and benefits to all teachers and administrators by 12 percent – Potential Savings $89 million.
Option #3: Create a statewide medical insurance pool for teachers that had a high deductible policy with a Health Savings Account – Potential Savings $15 to $35 million
Option #4: Cut technology improvements by 25 to 50 percent – Potential Savings $6 to $12 million
Option #5: Cut all or some teacher aids – Savings unknown
Option #6: Increase teacher size by 2 – Potential Savings $100 million
Option #7: Encourage motivated students to take enough summer classes to graduate one year early – Potential Savings between $13 million and $90 million
Which of these options, in your opinion, should be pursued and considered?
http://chum.ly/n/621125
The legislature is faced with a growing shortfall in state tax revenues. I would like to offer suggestions on how to reduce costs by $200 million or 8 percent of the total state general fund budget. I chosen an organized approach to approach with this problem.
1. Choose a target number - $200 million
2. Determine the percent of the budget – 8 percent
3. Determine the size of the 5 areas of the budget.
a. K-12 - $1.2 billion
b. Other education - $360 million
c. DHW – $463 million
d. Public safety - $222 million
e. All other - $120 million
4. Reduce each area of the budget by 8 percent to establish a baseline goal for each budget.
a. K-12 - $96 million
b. Other education - $28 million
c. DHW - $36 million
d. Public safety - $17 million
e. All other - $9.6 million
5. Start identifying targeted budget cuts to try to reach goals in section 4. I started with k-12 education and have developed several strategies for comparison purposes only. The following options are designed to help understand the ramifications of different approached to budget cutting ideas with the hope that the least harmful can be identified.
Option #1: Fund a six week summer kindergarten program to get kids ready for school rather than the current 36 week program. Potential Savings - $50 million
Option #2: Reduce wages and benefits to all teachers and administrators by 12 percent – Potential Savings $89 million.
Option #3: Create a statewide medical insurance pool for teachers that had a high deductible policy with a Health Savings Account – Potential Savings $15 to $35 million
Option #4: Cut technology improvements by 25 to 50 percent – Potential Savings $6 to $12 million
Option #5: Cut all or some teacher aids – Savings unknown
Option #6: Increase teacher size by 2 – Potential Savings $100 million
Option #7: Encourage motivated students to take enough summer classes to graduate one year early – Potential Savings between $13 million and $90 million
Which of these options, in your opinion, should be pursued and considered?
http://chum.ly/n/621125
Wednesday, January 19, 2011
Solutions for Medicaid Spending
Concerning: Medicaid and other entitlement spending
Fellow Legislators:
The question that is before us is how to provide social services to the needy at reduced costs. Medicaid spending consumes most of the DHW budget and is growing every year. The reason is simple. It is an open-ended program with no limits. If a person qualifies, then the state taxpayer must pay.
There are two main budget items in the state budget that consume 85 percent of all spending: education (65 percent with k-12 taking up 50 percent) and DHW (20 percent). Public education, under the direction of Tom Luna, is developing a strategy so that better outcomes can be achieved at less cost. This is being done through the use of technology, flexibility, and allowing students to learn at accelerated rates. Public education is well positioned to move into the future even with reduced funding. This is not the case for the DHW.
While it is necessary to address this year's budget problems which will require fairly small changes to or eliminations of current programs, this ‘tinkering-around-the-edges' approach will not solve the underlying problem. If we do not develop a long-term strategy, we will be back next year simply trying to get through another year.
It is my hope that we consider and develop a long-term strategy to improve DHW services while reducing and controlling costs this legislative session. A long-term strategy would place us in a proactive position allowing the legislature to improve the quality of services. I would offer several suggestions for your consideration.
1. Caps and limits: Medicaid and other social programs were designed to help the neediest of the needy. They were not designed to provide services to a large percentage of the population. We learned during the Clinton years that lifetime limits on programs like Aid to Families to Dependent Families could actually work. In Idaho, AFDF or TANF has a two year limit. This program is not growing and is working as intended. I propose two types of limits; first, lifetime limits, and second, limits to a percent of the population. For example, 13 percent of the population of Idaho is now on Food Stamps. Limiting this program to 10 percent or 8 percent of the population could be achieved by changing eligibility requirements. This could also be done for Medicaid and other programs while still helping the neediest of the needy.
2. Each person should, especially for the working poor, have an Individual Improvement Plan (IIP). The purpose of the IIP would be to help them achieve independence and self-sufficiency through skill development and personal growth. This could be best accomplished through a non-paid mentor.
3. The state of Idaho needs flexibility in order to use the resources we have in more reasonable ways. The regulations of the federal government drive up costs without significant regard to the actual needs of the people or common sense.
The adoption of these three principles (and others) would change the DHW discussion and place Idaho on firm footing for future changes and improvements. Without these changes, I don't see any real change taking place. I recognize that some of these changes are not now possible under current federal rules. Rules can and should change.
#Medicaid #Long-term #solutions #for #Idaho
http://chum.ly/n/5e9b34
Fellow Legislators:
The question that is before us is how to provide social services to the needy at reduced costs. Medicaid spending consumes most of the DHW budget and is growing every year. The reason is simple. It is an open-ended program with no limits. If a person qualifies, then the state taxpayer must pay.
There are two main budget items in the state budget that consume 85 percent of all spending: education (65 percent with k-12 taking up 50 percent) and DHW (20 percent). Public education, under the direction of Tom Luna, is developing a strategy so that better outcomes can be achieved at less cost. This is being done through the use of technology, flexibility, and allowing students to learn at accelerated rates. Public education is well positioned to move into the future even with reduced funding. This is not the case for the DHW.
While it is necessary to address this year's budget problems which will require fairly small changes to or eliminations of current programs, this ‘tinkering-around-the-edges' approach will not solve the underlying problem. If we do not develop a long-term strategy, we will be back next year simply trying to get through another year.
It is my hope that we consider and develop a long-term strategy to improve DHW services while reducing and controlling costs this legislative session. A long-term strategy would place us in a proactive position allowing the legislature to improve the quality of services. I would offer several suggestions for your consideration.
1. Caps and limits: Medicaid and other social programs were designed to help the neediest of the needy. They were not designed to provide services to a large percentage of the population. We learned during the Clinton years that lifetime limits on programs like Aid to Families to Dependent Families could actually work. In Idaho, AFDF or TANF has a two year limit. This program is not growing and is working as intended. I propose two types of limits; first, lifetime limits, and second, limits to a percent of the population. For example, 13 percent of the population of Idaho is now on Food Stamps. Limiting this program to 10 percent or 8 percent of the population could be achieved by changing eligibility requirements. This could also be done for Medicaid and other programs while still helping the neediest of the needy.
2. Each person should, especially for the working poor, have an Individual Improvement Plan (IIP). The purpose of the IIP would be to help them achieve independence and self-sufficiency through skill development and personal growth. This could be best accomplished through a non-paid mentor.
3. The state of Idaho needs flexibility in order to use the resources we have in more reasonable ways. The regulations of the federal government drive up costs without significant regard to the actual needs of the people or common sense.
The adoption of these three principles (and others) would change the DHW discussion and place Idaho on firm footing for future changes and improvements. Without these changes, I don't see any real change taking place. I recognize that some of these changes are not now possible under current federal rules. Rules can and should change.
#Medicaid #Long-term #solutions #for #Idaho
http://chum.ly/n/5e9b34
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