PLUMMER - Mike Ferguson believes he's presenting more than an alternative state budget to Gov. Butch Otter's proposal.

The director of the Idaho Center for Fiscal Policy and former chief economist under six Idaho governors thinks there should be a changed mindset on how state funding should be handled.

Ferguson presented what he has called "A Responsible Alternative to the Executive Budget" to North Idaho education officials at Lakeside Elementary in Plummer on Wednesday.

"It uses available resources in the governor's own budget, but rearranges the priorities to more closely reflect the rhetoric that we've been hearing," said Ferguson, adding that many lawmakers want to restore school funding, but he believes more should be done as Idaho has fallen behind other states with supporting schools and education has suffered as a result.

"As I went through the executive budget, I thought that it begged a crisp response," Ferguson said.

The alternative budget calls for:

* Rolling over the state's ending balance from fiscal 2014 rather than putting $71.7 million into rainy day funds

* Restoring $35 million to the Health and Welfare budget

* Eliminating $30 million that the executive budget has earmarked for tax relief

* Raising public school and state employees' salaries by 4 percent, which would cost $21.5 million for the state employee portion and $36.8 million for school employees

* Boosting the education budget an additional $34.5 million, bringing the total increased school support to more than $70 million

* Taking advantage of a Medicaid redesign to yield an estimated $42.4 million in state savings in fiscal 2015.

Ferguson's budget proposal leaves all of Otter's other expenditure initiatives intact.

Ferguson said the six changes address critical funding needs of public schools, health and human services and employee compensation. It would leave an estimated fiscal 2015 ending balance of $66.1 million, which Ferguson believes is ample cushion for unexpected contingencies over the next year and a half.

"In the 1990s, when we collected more of the revenue we need, our economy grew faster than almost all other states," he said. "Today, after more than a decade of reduced investments, that trend has reversed.

"Idaho is now the second-poorest state in the nation (behind Mississippi) with the highest percentage of minimum wage jobs, and we invest substantially less in education than all but one other state."

Ferguson has been pitching his proposal to groups across the state and held a recent news conference on the plan. He said he realizes having his proposal heard at the Legislature could be an uphill battle.

Ferguson said he's not allowed to lobby for his proposal to the Legislature.

"There's some behind-the-scene efforts to get me to talk to JFAC (Joint Finance-Appropriations Committee), but I have to be invited to make that happen," Ferguson said.

He said there needs to be a realization that, if you cut taxes year after year, services begin to lag.

The state's six major reserve funds already have $224.8 million, which he believes is a sizable cushion if fiscal problems arise.

Ferguson's plan seemed to receive a warm reception from educators.

Judi Sharrett, Plummer-Worley School District superintendent, said more local school districts in recent years have needed to count on supplemental levy funding approved by taxpayers to make up for the state shortfall.

Post Falls Superintendent Jerry Keane said districts can use any money available to help recover from cuts over the past five years. He said state officials have recently showed a willingness to support schools more than previous years.

"The argument (Ferguson) is making is, 'Do you stash additional money away for a rainy day when you are not providing for basic needs?'" Keane said. "The fact that there is already considerable money available for budget stabilization makes his argument more compelling."

Coeur d'Alene Superintendent Matt Handelman said while he understands Otter's desire to replenish rainy day funds, he also applauds the creativity of Ferguson's alternative.

"School districts have been criticized for building our own reserves, and now the state is trying to do the same at the expense of our students," Handelman said.

Wendell Wardell, Coeur d'Alene's chief operating officer, said the idea of rebuilding the state rainy day funds does not patch up the basic needs of schools.

"It is raining through our roof right now," he said. "We need shingles to fix the roof. We need funds that we can rebuild our bus fleet with in an orderly way as opposed to a hit-and-miss approach that we're doing now."