‘The same haircut’: Bill proposes cuts to Idaho’s education tax credit program
A Republican senator introduced a bill Tuesday to make cuts to Idaho’s $50 million tax credit program that directs funds to families who send their kids to non-public schools.
The bill, sponsored by Sen. Kevin Cook, R-Idaho Falls, proposes a 4% cut to the program this fiscal year and a 5% cut next fiscal year. Cook argued that one program shouldn’t be protected from reductions while others shoulder the burden of the state’s expected budget deficit.
Speaking before education committee members, he said he’d been looking at what lawmakers could cut across the board that “makes sense,” doesn’t hurt people and won’t end up costing the state millions more down the road.
“Everybody gets the same haircut. We’ll all need to hurt a little bit. Our revenue is down,” he told committee members, adding that lawmakers shouldn’t “just pinpoint a few people and really sock it to them. Let’s spread it across the board where we can, and be smart about it.”
During the hearing, some lawmakers said the new program has so far drawn a lot of interest, and legislators shouldn’t make cuts to it. Sen. Christy Zito, R-Mountain Home, said Idaho families are already facing inflation.
“Anytime we can give tax dollars back, or relieve the tax burden of the people of the state of Idaho and the families so that they can afford to send their kids to school, so they can afford to feed their families, in my mind, I cannot see how that’s a bad thing,” said Zito, who voted against introducing the bill.
Many agencies across the state are facing increased cuts as lawmakers and public officials grapple with how to deal with the expected budget deficit.
Gov. Brad Little in August called for most state agencies to cut their spending by 3% for fiscal year 2026. Last week, the Legislature’s budget-setting committee approved 4% budget cuts this fiscal year and 5% cuts for next fiscal year for most agencies across the state.
“It’s a year where we have some problems. We’ve got some revenue problems, and we all need to tighten our belts and figure out how to help each other to get through that,” Cook said.
The committee voted 6-3 to introduce the bill.
Over 5,000 families applied for program
Lawmakers approved the $50 million parental choice tax credit program last year after years of trying to pass bills to provide funds to families who choose not to send their kids to public schools.
Since applications for the program opened last month, more than 5,000 families have applied for over 9,000 students, according to a website last updated by the Idaho State Tax Commission on Feb. 3.
Under the law, eligible families can receive a refundable tax credit of up to $5,000. Parents of students with disabilities can receive up to $7,500. Qualified expenses include tuition for nonpublic schools, tutoring, assessments and transportation.
Shortly after Gov. Brad Little signed the bill into law last year, a coalition of education groups sued, arguing the program violated Idaho’s Constitution that requires the Legislature to maintain a thorough and uniform system of free public schools.
Both sides presented their arguments last month before the Idaho Supreme Court. Justices ultimately upheld the law.
