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Secretary of State speaks |
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Friday, 05 March 2010 |
By LESLIE MIELKE
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POCATELLO — Secretary of State Ben Ysursa spoke to an audience of 16 about the State Endowment Lands Thursday in Pocatello.
“This has been a tough week for schools, with the 7.5 percent decrease to school districts for the 2010-2011 school year announced from the JFAC (Joint Finance and Appropriations) committee,” Ysursa said. “It needs to pass the House yet to become law but this will probably happen.”
Public schools in Idaho receive funding from a combination of federal, state and local funds. State funding provides 53 percent of total education funding, and, of the state’s portion, endowment land revenues make up nearly 4 percent.
There are 2.6 million acres of land in Idaho’s endowment fund. The permanent assets of the fund are never spent. Money in the Earnings Reserve Fund (EFIB) is what is distributed.
“The vast share of money to public education comes from the general fund,” Ysursa said.
“The endowment lands are not a rainy day account but work more like a shock absorber,” Ysursa said.
Each year, funds from the EFIB provide $31.3 million to public education. Public education receives approximately 85 percent of the money distributed from the EFIB.
This money is distributed to each school district using the mathematical formula that determines full-time equivalence and enrollment.
From the $31.3 million, Pocatello School District 25, receives $1,298,151, Blackfoot 55 receives $485,863 and Marsh Valley 21 receives $156,285.
On Feb. 10, members of the Land Board voted 3-2 to take an additional $22 million from the EFIB.
Governor C.L. “Butch” Otter, State School Superintendent Tom Luna and Ysursa voted for this measure. Attorney General Lawrence Wasden and State Controller Donna Jones voted against it. These five individuals make up the land board.
“This is a one-time raid,” Ysursa said. “The Land Board is not inclined to raid this fund again.
“Superintendent Luna knows this,” he said.
“We have an obligation to current beneficiaries and to future beneficiaries,” Ysursa said.
The money remaining in this fund ($62.6 million) keeps a two-year reserve, Ysursa said.
The additional $22 million means Pocatello 25 share will be an additional $912,341, Blackfoot 55 receives an additional $341,000 and Marsh Valley receives an additional $110,000.
“When Marilyn Howard was the school superintendent, she voted that zero money should be taken from the EFIB,” Ysursa said. “Why would she do this?”
For two reasons, he said. “One—Howard said she felt taking money from this fund was against the constitutional mandate to keep these funds in perpetuity and two—she felt that these funds should be extra gravy and used only to help extra projects.
“She felt it was the obligation of the legislature to fund common schools.”
Eighty-five to 90 percent of income for the endowment fund comes from timber, Ysursa said.
“We’re too dependent on timber, in my opinion,” he said. “We are working on ways to diversify.”
Specifically, Ysursa mentioned cottage sites. “The endowment funds gains $4.3 million in leases each year.”
Cottage sites are granted a 10-year lease and are near Payette, McCall and Priest Lake.
“It was first come-first served when cottage sites were leased in the 1930’s and 40’s,” Ysursa said. “Some people have built multi-million dollar homes on this leased land.
“People own the improvements on our land,” he said.
Come December 2010, these leases are up. The Land Board meets March 16 to determine the lease on these cottage sites.
“The cost of these cottage site leases are going up,” Ysursa said.
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Last Updated ( Saturday, 06 March 2010 )
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