By JESSIE L. BONNER - January 29, 2010, 8:09AM ET

{BOISE, Idaho}Public schools chief Tom Luna told lawmakers Thursday he wants to siphon more than $52 million from state endowment fund reserves to soften a financial blow to Idaho's K-12 education budget next year.

The state Superintendent of Public Instruction's plan surprised some legislative budget writers, who last session faced the grim task of spending less on public schools than in the previous year for the first time in generations.

"Frankly I'm a little disappointed in myself that I didn't think of it sooner," said Sen. Dean Cameron, a Rupert Republican who co-chairs the Joint-Finance Appropriations Committee.

"I've been looking under a lot of rocks and I had not considering tapping into the earnings reserve fund," Cameron told The Associated Press. "I think it's a worthwhile suggestion. I think the superintendent should be commended for coming up with the suggestion and I think we should consider it."

Luna sits on the five-member state Board of Land Commissioners, which would have to authorize tapping Idaho's land grant endowment fund reserves. Luna said the board has banked about $90 million in earnings from the Public Schools Permanent Endowment Fund in a rainy day account, which distributes about $31 million to public schools each year.

Luna has proposed tapping the reserves for an additional $52.8 million next year.

The governor's recommended budget for the fiscal year that starts in July spends about $1.2 billion in state general funds on Idaho public schools, or about $14.3 million less compared to this year.

Luna said public schools will actually lose about $135 million when factoring in the loss of one-time federal stimulus money and expected decreases in state dedicated funds, such as cigarette and lottery taxes.

About $5.5 million in carry-over balances from other funds for driver education and the safe and the drug-free schools program could also be used to help offset the lapse in funding, Luna said.

While overall Luna's proposal for next year includes tapping more than $58 million in additional revenues, it also includes $25.2 million in cuts to rein in total savings of $83.5 million.

The cost-cutting measures, some requiring lawmaker approval, include the elimination of an early retirement program and reimbursements to schools for field trips. The state would also freeze pay raises for teachers based on experience and reduce the $300 teachers get each year for classroom supplies to $200, which Luna wants to avoid cutting entirely.

"At a time when pay is being reduced, teachers value these dollars," said Luna, who told lawmakers he would not support further cuts, but would offers guidance to meet the rest of the $135 million target.

Further reductions, if necessary, should be carried out with an across-the-board 3.74 percent reduction in several areas, including salaries and state-paid benefits, Luna said.

"These cuts will be painful and done wrong, will do significant damage to student achievement," Luna said.