Idaho Gov. C.L. "Butch" Otter hinted that major changes could be in store for the state's higher education institutions next year, prompting speculation about a possible move to a chancellor-like university system.
Speaking at the Associated Taxpayers of Idaho annual conference in Boise on Wednesday, Otter said education will be his top priority during the 2018 legislative session, which begins Jan. 8.
In what will be the 12th and final session of his three terms as Idaho's chief executive, the governor said he wants to maintain support for the $250 million "career ladder" teacher pay plan, which is currently in the third year of its five-year phase-in schedule.
Otter said he also intends to ask the Legislature "to structurally change exactly how we run higher education in the state of Idaho."
He declined to elaborate on what those changes might be, saying he didn't want to scoop his own State of the State address. He did indicate, though, that they're intended to help Idaho reach its goal of having 60 percent of young adults complete post-secondary degrees or certificates by 2025.
During an unrelated interview Wednesday, University of Idaho President Chuck Staben said he wasn't aware of Otter's comment and wasn't sure what the governor intended.
Over the years, however, there has been talk in education circles about possibly moving to a chancellor system, in which the state's higher education institutions are all grouped under a unified administrative structure, rather than operating as independent colleges and universities.
When asked about the concept, Staben indicated it wouldn't surprise him if there's renewed talk about the chancellor model, given that three of Idaho's four public college and university presidents have all recently announced their pending retirements.
Moreover, he suggested that Otter has a history of favoring the chancellor model.
"It's my understanding that around 1976, then-Rep. Otter recommended a chancellor system for higher education in Idaho," Staben said. "Maybe he's trying to revive an idea he thought was a good one at the time."
He said the only reason he knew that history was because the governor mentioned it to him in a previous conversation.
Despite the obvious symmetry, though, Otter spokesman Jon Hanian offered no support for the idea that his boss might try to tie up some long-lasting loose ends before exiting the governor's office.
"No, nobody here is talking about a chancellor-like system," he said.
Hanian declined to offer any other insights into the "structure change" Otter intends to propose. Staben said his best guess is that it relates to the recommendations Otter received from his Higher Education Task Force.
Earlier this fall, the 35-member task force approved about a dozen recommendations, including one to create a statewide "digital" campus for online learning. The group also suggested there could be considerable savings if the colleges, universities and community colleges consolidated their "back office" functions, such as human resources, finance, payroll and their student information systems.
In a follow-up letter to Otter in September, several business executives on the task force urged him to hire a "higher education CEO," who would create a start-up plan for the digital campus and have the authority to organize and complete the consolidation effort.
"Putting in place a higher education CEO is essential to future success," the executives noted. "To execute the game-changing task force recommendations requires a single executive with the authority, responsibility and accountability to ensure that silos are broken down and all parts of the (higher education) system work for the good of the whole."
The letter estimated that the first-year budget for this effort would be about $2.5 million. Staben, though, said the final price tag likely would be much higher.
Other university systems around the country have gone through similar consolidation efforts, he said. For a "reasonable size" institution - meaning one with about 30,000 to 35,000 students - the work "typically takes about five years and costs $70 million to $100 million."
Idaho's four public colleges and universities collectively have about 52,000 full- and part-time students. The community colleges have another 24,000 students.
During Wednesday's speech, Otter also warned lawmakers that he remains firmly opposed to repealing the state sales tax on groceries.
Otter vetoed legislation earlier this year that would have repealed the 6 percent tax, prompting a lawsuit from 30 state lawmakers. The Idaho Supreme Court eventually upheld Otter's veto, but supporters of the repeal effort say they'll renew the fight in 2018.
"I hope we don't have to go through what we went through last session, because I feel very certain (the grocery tax) is probably the most stable and predictable revenue source we have," Otter said.
The Associated Press contributed to this story.
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Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.