Two months before the 2010 Legislature, the session's bitter tenor is already set: Public education is almost certain to be slashed for a second year and some state agencies now scrimping to get by could be eliminated altogether.

Gov. C.L. "Butch" Otter Wednesday also ruled out an income tax increase, including a hike on those earning more than $50,000 suggested last week by one minority Democrat.

Otter told the Associated Taxpayers of Idaho annual conference in Boise, "I'm resisting the effort to start class warfare."

In 2010, Otter is considering privatizing some services, could sell Idaho government-owned real estate and may eliminate entire agencies and departments, if that's what it takes to save money.

House Speaker Lawerence Denney also had bad news for education advocates: Balancing the 2011 state budget won't be possible without additional cuts in schools.