Dive Brief:
- A bill providing $2 billion for improvements in school facilities across Idaho over the next 10 years has passed the House Revenue and Taxation Committee with bipartisan support.
- Idaho House Bill 521, which now heads to the House floor, includes provisions to allocate additional state revenues to school facilities and limits increases in school property taxes. The bill, filed for a third reading Wednesday, has 40 House members and 12 state senate members as co-sponsors.
- “This top priority bill proposes the largest investment ever in school facilities and lowers income taxes even further. It also has the added benefit of long term property tax relief because the state is footing the bill for many improvements local property owners would otherwise cover,” Idaho Gov. Brad Little said in a statement.
Dive Insight:
With historically restrictive school funding policies, districts across Idaho have found it difficult to repair, upgrade or replace aging school infrastructure, equipment and buildings, according to an investigation conducted last year by the Idaho Statesman and ProPublica.
To ease these challenges, HB 521, introduced earlier in February, aligns with the legislature’s aim to amend state law to provide income tax relief. It would create a School Modernization Facilities Fund, funded by an annual $125 million revenue stream from sales taxes, which school districts can tap into for their construction, renovation and maintenance needs.
This development comes weeks after Little announced his Idaho Works proposal to make funding for schools a No. 1 priority, according to a proposal document.
School districts can choose to receive their distribution as a lump sum from the net proceeds of the bonds or request to receive their distribution in annualized amounts, subject to the order of priority specified for the school district facilities fund established in Section 33-911 of the Idaho Code.
The funds will be distributed to school districts by Aug. 31 each year. If school districts want to opt out of an annualized distribution or a lump sum amount, or fail to make a selection by July 1, 2025, the amount they would have received will transfer to the school district’s facilities fund.
