Oregon Public Broadcasting

Idaho legislators are getting a mid-year progress report on the state budget this week and the news isn't good.

State agencies are already in the process of cutting $100 million and taking money from school reserves. That has school districts concerned, including one in north Idaho. Doug Nadvornick reports.

The Lakeland School District in Rathdrum, Idaho is one of 23 statewide that declared a financial emergency a few months ago.

Business Manager Tom Taggart says the emergency allowed the district to negotiate wage reductions with its employees to help balance the budget.

Tom Taggart: “We started the year in good shape. We had a little bit of growth, which we haven't had in the last few years, so that added a little bit. I'm more concerned about next year's budget than this year at this point.”

Idaho Governor Butch Otter has asked the legislature to spend $49 million from a public school reserve fund to avoid cutting school budgets now.

Taggart thinks that will shield schools from cuts for the rest of this year. But he worries the reserves will eventually run out.

The mid-year progress report to legislators also included sobering news about Medicaid. The state's program is facing a major shortfall and may have to make big cuts next year.