Since Gov. C.L. "Butch" Otter announced two weeks ago that he's deferring a decision about $52 million in budget holdbacks, he's been editorially criticized by most newspapers in this state for dithering.

Not this one. We admire his flexibility.

On Sept. 25, the governor ordered targeted spending reductions at state agencies and proposed dipping into the state's rainy-day funds for $49 million to forestall mid-year cuts in the public schools.

But the recession-caused budget shortfall the state must erase totals $151 million, so Otter has some more trimming to do.

"We must explore significant restructuring and find further budget savings," the governor said. "That's why I'm launching a public dialogue with Idaho taxpayers, lawmakers, agency officials, state employees and other stakeholders on how best to achieve meaningful reorganization of state government."

"If we can't, then there will be a discussion with the Legislature on how we can ease the pain with those rainy-day funds," he said.

At the moment, Idaho has about $274 million in reserves on hand, plus another $50 million in unspent federal stimulus money for use in next year's budget.

Otter is playing for time with this strategy, and that's appropriate. He understands the financial picture can change - for better or worse - before the Legislature convenes on Jan. 11.

He further recognizes that all easy cuts have already been made. The next round - represented by that $52 million in savings the state must still find - will fundamentally affect the day-to-day operations of education, corrections and Health and Welfare. The governor wants to get that decision right.

Otter also knows that slashing education budgets in the middle of a school year is difficult since so much state money goes into teacher and administrator contracts that were signed months ago - and which school districts can't break.

And he's sensitive to the demands of many conservative lawmakers - including some on the budget-writing Joint Finance-Appropriations Committee - that it's time to take a hard look at restructuring state government.

There's time before January to consider some alternatives that haven't yet been on the table, such as funneling more state prison inmates to diversion programs.

Had the governor taken an ax to that $52 million two weeks ago, budget cuts in state agencies would have been far deeper, more damaging and much harder to reverse when things improve.

Holdbacks amount to managing state government on the fly, and that's almost always a worst alternative than Idaho's deliberative budgetary process involving the Legislature, state agencies, the governor and taxpayers.

Essentially, Otter did what he was constitutionally required to do - keep the state budget in balance - while giving himself and lawmakers time to make better decisions about the state's future.

Smart move.