That means that as students return to school, 900 teachers or staffers who otherwise would have lost their jobs are also returning?  Not exactly.

Sherri Wood, head of the IEA, explained that the number of jobs saved was based on a mathematical formula provided by the federal government.  To determine the figure, Wood said, take the average salary of an Idaho teacher and use that amount to divide the total allocation of federal dollars for the state, which stands at $51 million.  Do the math and it equals out to be 900 jobs saved with each teacher or staffer making about $56,000 annually.

But that kind of equation might be erroneous, given statistics of teacher pay in the state.  According a 2009 Idaho Department of Labor wage survey, experienced teachers in the state average anywhere from $39,000 to $51,000 each year.  Those figures also don’t account for the cost of teacher benefits, which can also be funded with federal education dollars.

School districts also weren’t planning mass layoffs to deal with budget shortages, either.  As schools contemplated how to cope with the $128 million public education cut handed down by the Idaho Legislature, a myriad of tactics were used to save money.  Some schools opted to cut transportation funding, while others chose to increase the fees required to participate in sporting activities.  Others cut teacher and administrator pay across the board and some chose to nix field trips, school supply purchases, or move to a four-day school week.  A report from the Idaho Statesman points out that because of the way in which the education budget was crafted by state lawmakers, schools were unable to eliminate teaching positions.  If they did, they would have faced greater reductions in state funding.

There will be teacher losses in one form or another, says Wood.  ”There are teachers who are retiring or leaving school districts who won’t be replaced,” Wood said.  ”That will increase class sizes, particularly in rural parts of the state, and we think that’s bad for kids.”  It is unknown how many open positions will be left unfilled across the state, but one of the larger districts, Boise School District, has eliminated 60 positions, via a combination of teachers, administrators, and support staff.

So where will the federal education money go, if not to save 900 jobs?  Meridian School District, the largest in the state, will use $4.1 of its $5.9 million to restore unpaid teacher furlough days.  Other districts will are taking different routes with the money. Nampa School District has yet to officially decide how to spend it, but one school board member says he would like to see the money saved for a year to prevent job losses in the 2011 school year if state tax revenues don’t ramp up.  Boise, like Meridian, is considering replacing three unpaid furlough days set for the week of Thanksgiving.  It is also may consider hiring back some of the 60 employees laid off.

The money originated from a federal bill passed to bolster Medicaid and education funding, and some proponents of the legislation say it will save the jobs of more than 161,000 teachers across the nation.  It was not mandatory that states apply for the dollars, and Otter reluctantly announced his intention to get Idaho’s share of the dollars, saying that the bill added to the national debt despite whatever course he chose.

Now, as Otter and Luna have finalized the state’s application, the two men are urging local school districts, which have the final say in how the money is spent, to spend wisely.  “We know that budgets have been set and most schools now are under way. But as I wrote last month, it is important that our local school boards and superintendents have a say as well,” Otter said. “Local school districts tell us they want the money, and how these funds are used ultimately rests in the hands of those same local school officials. So I want to make sure that they have plans in place for putting these taxpayer dollars to the best possible use.”

Schools have 27 months to spend their dollars and certain guidelines as to how they can use them. Districts can use the money for paying salaries and benefits of teachers, support staffers, and school-level administrators, and restoring furlough days caused by budget cuts.  They cannot use the money to pay district staffers or administrators, buy classroom supplies, or use it for general operations, like transportation costs or utility bills. Districts are also not allowed to use the money to fill reserve funds or pay off debt.

Most districts are still contemplating how they plan to utilize the funds.  Meridian School District announced that it plans to reduce furlough days, while the Nampa School District may put the bulk of its $2.5 million in the bank for use next year.  Meridian will receive $5.9 million in federal dollars when the money is set out in a few weeks, but it won’t fully replace the $9 million budget cut forced upon the district by the Idaho Legislature.  Due to slumping tax revenues, state lawmakers, with Otter’s blessing, cut $128 million from public education funding in the state.

Cuts would have been worse had Luna not asked the Land Board, which manages some of Idaho’s reserve accounts, to dip into rainy day funds to blunt the impact of cuts.  The Land Board agreed to provide some reserve cash, but not as much as Luna request.  The board approved a $22 million payout from reserves, though Luna had originally requested $52 million for public schools.

In Wednesday’s announcement, Luna said that federal dollars must be used to keep education viable in the state. “With funding from the Education Jobs Fund, we will continue to make our students the priority, encouraging local school districts to use these funds effectively and prudently over the next 27 months to preserve student-teacher contact time by rehiring teachers and teaching aides and restoring any instructional days that might have been lost,” Superintendent Luna said.

The news has becoming a talking point for Democrat Keith Allred, running to unseat Gov. Butch Otter.  Allred has repeatedly slammed Otter and legislative Republicans for low-balling the state’s budget for 2011, which sits at $2.29 billion for the year.  Ferguson announced that Idaho’s take could likely be as much as $2.37 billion.  Otter and Republicans decided to go with the current budget figure instead of a slightly higher number because they wanted to take a more conservative approach to budgeting.

Allred, a former college professor and mediator, said that Otter’s misguidance on the budget has led to suffering in the state’s public school system.  ”In January, Otter told us that the 2011 fiscal year was going to be so bad that he had no choice but to cut funding to Idaho education,” Allred said. “I said then – and I’m saying now – that Otter got it wrong and that Idaho school kids would pay for it.”

During the 2010 legislative session, where the budget for this fiscal year was set, Allred would frequently show up at the Capitol in downtown Boise to deride what he called, Otter’s “irrational pessimism” on the budget.  He has also said that the incumbent Republican is out-of-line with the Idaho Constitution, which requires the state to fund a thorough public education system.  ”In flush times and in tough times, Idaho needs a governor who understands that the Idaho Constitution has it right: Our public schools are a top priority,” Allred said.

Otter fired back, saying that despite cuts, Idaho students are making progress in the education world.  ”Recent reports show our students are outperforming the majority of the nation,” Otter in a prepared statement, referring to the Adequate Yearly Progress report issued by Superintendent of Public Instruction Tom Luna earlier this month, which found that more schools in the state are meeting rigorous objectives in math, reading, and science.  Those results, however, were released in August, only one month after the start of Fiscal Year 2011, and before schools opened their doors for the first time after sustaining a $128 million reduction in funds.

An aide for Otter’s re-election campaign noted that Ferguson’s forecasts have been incorrect in the past. “Wednesday’s adjustment from Mike Ferguson was another correction to his previous incorrect predictions,” said Ryan Panitz, spokesperson for Otter.  ” So, if Otter would have listened to our opponent in January and just used Mr. Ferguson’s numbers, we would be more than $140M upside down at this point.”  Otter’s original budget, presented in early January, called for $2.45 billion in spending.  Legislative Republicans whittled down the proposal and settled on the $2.29 billion figure.

Otter continuously has poked at Allred’s lack of experience – the Democrat has never been elected to public office – and continued that Thursday.  ”My opponent once again thinks that you can govern on theory when, in fact, it takes experience like mine to understand the full budgeting process,” said Otter.  The incumbent also promised to restore funding to schools once tax collections make it possible.

One of the main lawmakers in charge of writing the state budget, Rep. Maxine Bell, R-Jerome, said it’s too early to say if revenues will differ from the target set by lawmakers.  “When we were budgeting, we budgeted to a number that we thought was right,” she said.  “I’ll stick with what we did and watch.”  She also said she thinks it is unlikely the governor will impose spending reductions on state agencies, as he did last year.  “There’s no reason that I can see that he would possibly do any more holdbacks at this point.”

Note: Brad Iverson-Long contributed to this post.

Idaho chief economist Mike Ferguson now forecasts the state general fund taking in almost $2.37 billion in the current fiscal year, which started in July.  His last forecast in December was $63 million higher.

It’s unclear how the new forecast will affect state spending.  “We’ve got to be very cautious with how we’re going to budget,” said Jon Hanian, the spokesman for Gov. Butch Otter.  He said the continued drop in Ferguson’s forecasts gives credence to the decision by the governor and Republican lawmakers to set a low budget target, at $2.29 billion.  “Clearly, the revenues have not met projections.  They continue to not meet projections.”

Last year, the governor issued a holdback to state agencies after the state released a new revenue forecast.  Hanian wouldn’t comment on such budgeting decisions for the current year, but repeatedly used the word “cautious” to describe the governor’s approach.

Tax revenues exceeded the new forecast for July, the first month of the fiscal year, by $4.5 million.  The sales tax and the personal and corporate income tax were all above expectations.

Ferguson said Idaho’s economy should improve slightly. “Idaho’s economy should be more prosperous over the next two years than it was in the last two,” he wrote in his monthly report, Idaho Outlook.  He added that the economic recovery will be modest.  Ferguson said the decline in the housing sector is one of the reasons for the state’s poor performance during the past three years.

The road directly behind the Capitol has caused concern among many state officials for years.   Officials and some legislators have been concerned about safety on a popular crosswalk used to go to the back entrance of the building, particularly in the first few months of the year, when sunlight isn’t as prevalent in the early morning hours.  Those months are also when legislators from around the state are in legislative session.

Jan Frew, an architect with the Department of Public Works, told IdahoReporter.com Tuesday that improvements to the sidewalk and crosswalk will aid safety in the area.  The crosswalk will be equipped with a lighted warning system for drivers that will be activated by folks who want to make the journey across the busy road.

Not all the improvement, however, are based on safety.  The money to fund the project will also pay for the installation of what Frew calls “historic streetlights,” as well as additional landscaping.

The project comes less than one year after a state lawmaker – Rep. Darrell Bolz, R-Caldwell – suffered minor injuries after being hit by a car in on the State Street crosswalk in the early morning hours.  It was only the second accident in the last decade on the street.  After the mishap, the crosswalk was closed and the Idaho Capitol Commission, overseer of Capitol reconstruction and renovation in the past three years, asked the Ada County Highway District (ACHD), which has jurisdiction over the thoroughfare, to reduce the speed limit behind the building from 25 miles per hour down to 15.  The commission also discussed asking ACHD to close the street entirely to create a walking mall among the Capitol and other government buildings.  ACHD officials declined the idea because they felt closure would complicate traffic patterns unnecessarily.

The speed limit on the road remains at 25 miles per hour.  Robbie Johnson, former spokeswoman for ACHD, told IdahoReporter.com in a prior interview that a reduction in the speed limit could prove more hazardous than some might think.  ”Artificially reducing posted speed limits below the speed where most people drive at can create more safety problems, rather than solving them,” said Johnson.

The project is expected to cost $205,508 and is paid for with commission funds.  Frew expects that improvements will be finished by the end of September.

The alteration comes less than a year after contractors completed a renovation and expansion of the building.  The project, which took about two years to finish, cost $127 million and was funded through a temporary increase in the cigarette tax in the state.

The panel approved the glass panes at its June 4 meeting to help reduce noise in committee rooms during the legislative session.  Several lawmakers, including Sen. Patti Anne Lodge, R-Huston, chair of the Senate Health and Welfare Committee, said they wanted the public to be able to see as much of committee hearings as possible without disrupting proceedings.  ”I prefer the clear glass so people can see if they want to come in or not,” said Lodge.  She said she often left her committee room doors open to involve the public.  Sen. Joe Stegner, R-Lewiston, who pitched the Capitol alterations to fellow lawmakers, said that windows could reduce foot traffic from interested parties who only wanted to see what goes on during committee hearings.  ”The whole point of the glass is to allow people to walk by and see what’s going on inside without opening the door,” said Stegner.

The money used to fund the project was left over from the original cost of Capitol renovation project.

More than half of all states considered changes to their gambling laws, but just four enacted changes so far, according to the National Conference of State Legislatures (NCSL).  Attempts in 17 statehouses failed, while five states’ actions are undetermined, according to the NCSL.

Among the changes, Ohio and New York both are now selling tickets for Powerball, the multi-state lottery Idaho already participates in.  New York estimates that it will raise $134 million in the next year from Powerball.

New York also expanded the hours of video slot machines at its racetracks, while Delaware will add table games including poker and blackjack.  Florida passed a law expanding the Seminole Tribe’s gaming operations, which is expected to generate $433 million.

Idaho doesn’t have any plans to expand its lottery, according to lottery spokesman David Workman.  He said the lottery is considering some small changes to gaming rules, but no changes to laws that would seek to expand state revenues.

The Idaho Lottery has seen profits rise during the past few years, with a record $36.5 million profit during the last fiscal year.  That money goes to public schools and the state’s Permanent Building Fund.

Gov. Butch Otter told IdahoReporter.com in July that he doesn’t think there’s support in Idaho for more wide-open gaming.

Failed efforts to expand gambling in other states include a proposed tax on lottery tickets in Kansas and creating a lottery in Mississippi.  Several states that allow casino gambling also stalled in efforts to allow more casino locations.  The NCSL estimates that states across the country faced a budget gap of at least $83.9 billion, which contributed to the plans to find new revenue sources.

Bud Yost, attorney for the Nampa School District, told IdahoReporter.com Monday that school board members can reduce levy amounts if they feel the need.  ”There is discretion with the board of trustees,” said Yost.  ” They use their best judgment when deciding how much to levy.”

Trustees have no bottom limit on how little they can levy, Yost explained, only an upward cap.  ”They don’t have to spend it all,” he said.

Several school districts in the state passed levies to bolster budgets several months prior to the August passage of the federal education jobs bill.  Under the legislation, Idaho is set to receive $51 million.  Districts have received notice how much has been allocated for them individually and have until Sept. 3 to accept of reject funds.

At least one school district – Sugar-Salem in eastern Idaho – is looking at reducing its levy in wake of the additional federal dollars.  Vern Thurber, business manager for the district, said school board members will likely consider reducing the $450,000 levy voters approved in May.  The federal government will send $276,379 in education dollars to Sugar-Salem if board members accept the money.

School districts across Idaho, facing cuts due to large gaps in state funding for education, asked voters for levies in the spring and summer months, and the majority of district requests were approved.  Two districts – Jerome and Preston – will receive more federal money than local money approved for them this year.  Others, including American Falls and Shelley, are receiving chunks of federal dollars that equal only a portion of levy amounts approved by voters.  One district, the Sugar-Salem School District, has plans to consider reducing its levy, but others likely won’t because they say such a move would be illegal.

Trish Dixon, business manager for the Shelley School District near Idaho Falls, told IdahoReporter.com Monday that the federal money won’t help the district’s budget a great deal.  ”It does not enhance our spending power,” Dixon said.  ”The jobs bill doesn’t give us any more money to spend.”  She explained that regulations that come along with federal dollars prohibit her district from using the money to pay anything but teachers’ salaries and benefits and eliminate furlough days.

Shelley has no plans to reduce the amount of a two-year, $500,000 levy approved by voters earlier in May.  ”You can’t undo an elected levy,” Dixon said.  ”I don’t think that’s possibly legally.”  Shelley will receive $376,000 from the federal education jobs bill.

Not all districts are locked into levy amounts, says one official.  Vern Thurber, business manager for the Sugar-Salem School District, said that taxpayers in the area might get a break from the school board if it decides to reduce its recently-passed $450,000 levy.  ”That’s an issue that will have to come before the board at its meeting this Thursday,” said Thurber.  When asked if a levy reduction is an option for board members, Thurber said “I think that would be fair to say.”

The levy for the Sugar-Salem School District, unlike some others in the state, was intended to be used for shoring up teacher salaries.  Even with the money, Thurber indicated, some reductions in teacher pay were still necessary, though he didn’t give specific amounts.  The school district will receive $276,379 in federal education dollars.

Voters in Jerome School District approved a $650,000 levy in April, which business manager Brian Bridwell says will be used for various projects for schools.  That district won’t reduce or eliminate its levy either, because Bridwell says there’s no correlation between the two.  ”The jobs bill has specifics as to what we can do with it,” he explains.  ”They are not related at all.”  The federal government is sending $600,000 to the Jerome School District to bolster teacher pay and benefits.  Bridwell says the federal dollars will likely be used by the district to – like Shelley – boost teacher pay and cut down on furlough days.  The district made a 6.3 percent reduction in teacher salaries to cope with state budget cuts.

American Falls School District hasn’t decided how it will use its federal dollars.  Business manager Kathy Lilya said the school board will make a decision in upcoming weeks.  ”That decision hasn’t been made yet,” Lilya said.  Patrons in American Falls approved a $600,000 supplemental levy in May.  It is set to receive about half that amount – $294,253 – from the education jobs bill.

Gov. Butch Otter and Superintendent of Public Instruction Tom Luna announced Friday the amounts each district will receive.  Schools districts will get money based on how much the state already has given them this year — larger school districts get more; smaller ones less.

The largest, Meridian Joint School District, receives the greatest share under the allocation table, $5.9 million.  Boise School District will receive about $4.6 million.

The money comes with strings attached.  Districts can only use it to pay salaries and benefits of teachers and administrators, as well as restore furlough days.  Schools cannot save the money in reserve accounts, nor can they pay for district-level staffers.  Officials have 27 months to spend it and must contact the Idaho Department of Education by Sept. 3 to accept the money.

Otter told district officials to be wise with federal funds in a letter released with the allocation table.  ”I must highlight these funds are one-time in nature,” wrote Otter.  He also asked school officials to utilize the funds to keep classroom sizes down.  ”I strongly urge districts accepting these funds to focus on preservation of student-teacher contact time,” he said.

When it was first revealed that Idaho would receive $51 million of the total $10 billion available in the jobs bill, Otter said, ”While I am leery about Congress continuing to spend beyond our grandchildren’s means, I realize that Idaho schoolchildren will be repaying this debt no matter what decision I make today.”

State lawmakers cut the public schools budget by 7.5 percent — $128 million — during the 2010 legislative session.  The total cuts for schools would have been higher if Luna hadn’t called on the Idaho Land Board, which manages the state’s reserve accounts, to release $22 million to shore up district budgets.

View statewide allocations here: Allocation table 8.20

Otter’s letter to school officials can be found here: Gov. Otter letter on Education Jobs