Idaho School Districts Face Maintenance Fund Shortages After HB 521 Shifts Resources

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Idaho school districts are facing significant challenges in maintaining their facilities following the implementation of House Bill 521, which has redirected crucial funding sources to other priorities. The bill, which was intended to relieve property tax burdens, has left many districts scrambling to find money for routine maintenance and upkeep.

House Bill 521, signed into law earlier this year, eliminated the School District Building Fund and Bond Levy Equalization Fund, which many districts relied on for maintenance needs. Instead, the bill redirected state lottery revenue and other funds into the School District Facilities Fund, primarily aimed at paying down bonds and levies. While this move has helped reduce local property taxes, it has also significantly reduced the funds available for maintenance.

“The priority of that allocation is to lower local tax burdens and then allow districts to use remaining funding for routine facilities needs,” Governor Brad Little and State Superintendent Debbie Critchfield explained in a joint letter to school leaders. However, the reality is that the money left over after debt payments is often insufficient to cover basic maintenance costs.

Districts without substantial outstanding debt are allowed to use leftover funds for maintenance, but many districts are finding that little to no money is left after fulfilling bond and levy obligations. “We’re kind of scrambling, honestly, to figure out how we’re going to move forward with that,” said Jeff Gee, superintendent of Ririe School District. For Ririe, the loss of lottery funds has left a significant gap in their budget, which previously financed maintenance supervisor salaries and repairs like carpeting and HVAC systems.

The situation is particularly dire for smaller districts. The Twin Falls School District has called on state leaders to reconsider the funding shifts, urging the restoration of lottery funds for "necessary, routine, and ongoing maintenance." The district’s trustees crafted a resolution, which is set to be discussed at the Idaho School Boards Association meeting in November, to make this request a part of the organization’s official advocacy platform.

The funding reallocation has led to widespread concerns among district officials that routine maintenance may suffer, potentially leading to more significant and costly issues down the road. Idaho school districts collectively owed $329.2 million in outstanding bonds, supplemental levies, and plant facilities levies at the end of fiscal year 2024, and the new law’s restrictions mean that most available funds will be used to service this debt rather than address immediate maintenance needs.

As districts continue to adapt to these changes, the long-term impacts of House Bill 521 on school facilities across Idaho remain uncertain. For now, many districts are left to seek alternative funding sources or delay essential maintenance, raising concerns about the future condition of school infrastructure throughout the state.