The irony wasn't lost on some who gathered around the rotunda at the Idaho State Capitol on Monday.

Gov. Butch Otter read a proclamation declaring the annual Martin Luther King Jr./Idaho Human Rights Day exactly one week after he proposed phasing state money out of seven agencies and commissions - including the Idaho Human Rights Commission.

He said Monday that "improving the quality of life for all members of society is everyone's responsibility."

He and first lady Lori Otter encouraged Idahoans to rededicate themselves to volunteerism and community service as a means to equality for citizens.

In the crowd was Amy Herzfeld, executive director of the Idaho Human Rights Education Center, who said that weakening state agencies and relying on already burdened nonprofit groups to advocate for marginalized people isn't a good solution.

Otter is calling for phasing out state taxpayer dollars over four years from the Human Rights Commission, the Hispanic Commission, the Council on Developmental Disabilities, the Independent Living Council and the Council for the Deaf and Hard of Hearing.

"I can't decide whether I'm furious or heartbroken," Herzfeld said. "These agencies are our watchdogs."

Herzfeld, as well as lawmakers including Sen. Nicole LeFavour, D-Boise, have said the savings from the governor's proposed cuts - which would eventually amount to $1 million a year, or about 0.04 percent of the state's annual budget - are not significant enough to justify the losses for vulnerable people.

The governor's proposals are ideological, they say, and a passive way to eliminate agencies.

"There is a fairly strong anti-government sentiment in the governor's office," said Sen. Les Bock, D-Boise. "Some of these agencies put in place for very good reasons are being allowed to wither on the vine with the underlying purpose of downsizing government."

Otter insists he's not trying to do away with the agencies, and says those who believe his ideas have more to do with politics than money are "taking an easy out."

"If we don't make cuts there, then where?" Otter said after Monday's King day event, where he shared the stage with drummers from the Duck Valley Reservation and Girl Scouts from Farmway Village, a migrant community.

Almost all state agencies are facing cuts in state support this year, mostly in the 1 to 3 percent range.

But these councils and commissions - as well as Idaho Public Television and the Digital Learning Academy - will be left to fend for themselves in 2015.

"We have to set priorities. Every dime we save, we can keep in K-12 education," Otter said.

He said that if the Legislature approves his proposed funding phase-outs, he would reconsider them if the economy rebounds.

In the meantime, he's saying the agencies can increase their efficiency: move into state-owned offices to save on rent, share resources and expertise, raise private money and find more ways to build partnerships.

Some of Otter's ideas may be taking shape already. The Idaho Commission on Aging, which is facing a cut of less than 1 percent this year, is moving from an office on Americana Boulevard to the first floor of the Joe R. Williams Building next to the Statehouse.

The commission has invited some of the agencies facing cuts to share the space and split the rent (all state agencies pay for their space in state buildings).

Otter has said that many of the agencies serve the same clients. Jon Hanian, Otter's press secretary, said there is no definitive report detailing the duplication of services, but the governor believes getting agencies to work more closely together represents "common sense and good government principles."

Otter has also said the four-year phase-out will give the commissions and agencies time to find other money sources.

The groups facing cuts counter that ethical, legal and practical issues may hinder their ability to go along with the governor's proposal.

Deseret Baker, who sits on the board of the Council on the Deaf and Hard of Hearing and hosted a grass-roots letter-writing event Tuesday to protest the cuts, says the council's two-person staff relies on the state for 95 percent of its budget.

Strict bylaws limit funding sources, Baker said, "and with two employees, who has time to go out and look for money?"

Margie Gonzalez, director of the Idaho Commission on Hispanic Affairs, said the commission is comparatively lucky. State money makes up a relatively small slice of its annual budget.

Still, it amounts to more than 30 percent, and losing it may mean cutting back on the kinds of partnerships the governor advocates, even those that support his goals of a strong education system.

One example: working with the Department of Education to shrink the Latino achievement gap in public schools.

Idaho Latinos represented $3 billion in buying power in 2008 and are the largest and fastest-growing minority in the state, making up about 10 percent of Idaho's population. Gonzalez expects that to be even higher in the 2010 census.

Even Otter's own statement on the commission's home page acknowledges that it "provides a great forum in which to address the changing needs of an important segment of our population. ... Its responsive, data-driven recommendations are an invaluable asset for Idaho policy makers."

Gonzalez said the commission has always tried to play a government role. "We'll keep positive and accept things if JFAC accepts the governor's proposal," she added.

The commission has been weathering state holdbacks of nearly 10 percent since September.

"But we've never faced a challenge like the governor's proposed cuts before," said Gonzalez, who will make the case for her agency Friday before the Joint Finance-Appropriations Committee.

No one is denying times are tough.

Even former Gov. Phil Batt, who helped create the Idaho Human Rights Commission as a state senator in 1969, acknowledges Otter is in a tough spot.

"Every agency should undergo scrutiny," Batt said.

Anna Webb: 377-6431Cynthia Sewell: 377-6428