In 1975, the Idaho Supreme Court, in Thompson v. Engelking 1975, rejected a claim that the state school finance system violated equal protection principles under state and federal law. Nearly two decades later, however, the same court distinguished its prior ruling, in Idaho Schools for Equal Educational Opportunity (ISEEO) v. Evans 1993, and found that an adequacy claim under the state constitution's education clause should go forward to trial. In 1994, the trial court declared the suit moot because the legislature had changed the funding formula and redefined a thorough education. On appeal, the state supreme court reversed the decision, concluding that an unresolved question remained as to whether a "thorough education" was being provided to students.

In 1997, the trial court again dismissed plaintiffs' claim, but the state supreme court, in ISEEO v. State 1998, reversed, in part, and remanded the facilities and capital funding portion of the case. The court held that "the Legislature has the duty to provide a means for school districts to fund facilities that offer a safe environment conducive to learning." In 2000 and 2001, the legislature passed minor facilities measures that helped property-poor districts, but insufficiently, according to plaintiffs. In the midst of a series of hearings in late 2002, the trial court appointed a special master to assess all of the "run-down" schools in the state, the first facilities assessment since 1992-1993. The state appealed the appointment, which prevents the special master from proceeding until the appeal is decided. In 2003, the legislature enacted a statute intended to eliminate the ISEEO case and prevent any future cases of this type.

In October 2003, the lower court ruled that the new law was unconstitutional, and the state appealed that ruling. In ISEEO v. State, 2005, it was held that the current funding system is simply not sufficient to carry out the Legislature’s duty under the Constitution. However, the court acknowledged that the legislature needed to find solutions, but ultimately left the policy decisions to the legislature.

In Idaho Schools for Equal Educational Opportunity v. Evans, 123 Idaho 573 (1993), a group of school districts and parents challenged the constitutionality of Idaho’s public school funding system under Article IX, § 1 of the Idaho Constitution. The plaintiffs argued that the state’s method of financing school facilities failed to provide adequate resources to ensure safe and sufficient buildings for students. The Idaho Supreme Court held that the constitutional requirement to maintain a general, uniform, and thorough system of public, free common schools includes providing facilities that offer a safe environment conducive to learning. The case was remanded to the district court for further proceedings to determine whether the state’s system satisfied that requirement.

In Idaho Schools for Equal Educational Opportunity v. State, 128 Idaho 276 (1996), the Idaho Supreme Court reaffirmed its earlier decision and clarified that the responsibility for ensuring safe and adequate school facilities rests with the state. The Court reviewed evidence regarding the Legislature’s efforts to address funding deficiencies identified in the earlier case and again remanded the matter for additional factual findings on whether legislative changes met constitutional requirements.

In Idaho Schools for Equal Educational Opportunity v. State, 142 Idaho 450 (2005), the Court reviewed the district court’s determination that Idaho’s reliance on local property tax levies for major school construction and maintenance did not satisfy the constitutional standard. The Supreme Court agreed that the existing system failed to provide a uniform means of financing safe and adequate facilities and directed the state to develop an alternative mechanism for meeting its constitutional obligations.

Idaho provides limited state-level financial assistance for public school facility construction and major renovation. Most capital outlay for school facilities is financed locally through voter-approved bonds and plant facilities reserve fund levies, while state participation is restricted to specific programs authorized in statute.

Public School Facilities Cooperative Funding Program

The Public School Facilities Cooperative Funding Program, established under Idaho Code § 33-909, authorizes the state to provide funding for the repair, renovation, or replacement of unsafe school buildings when a district is unable to finance necessary improvements through local means. To qualify, a district must submit an application identifying building safety hazards, proposed corrective actions, cost estimates, available revenue sources, and prior local bond or levy efforts. Applications are reviewed by a state panel that determines eligibility and funding levels. When assistance is approved, the Division of Public Works manages project delivery and expenditures from the Public School Facilities Cooperative Fund. The program provides targeted support to address health and safety risks in public school buildings.

School District Building Account (Capital Funding)

Lottery revenues distributed through the School District Building Account under Idaho Code § 33-905 may be applied to capital projects after the district satisfies its annual maintenance allocation required by Idaho Code § 33-1019. These distributions are based on average daily attendance and are available for purposes authorized under Idaho Code § 33-1102, including construction, remodeling, or site acquisition.

The School District Facilities Fund, created under Idaho Code § 33-911, provides financial assistance to school districts for the construction and improvement of public school facilities. Beginning in Fiscal Year 2024, 2.25 percent of the state sales tax is deposited annually into the fund under Idaho Code § 63-3638(10). Starting in Fiscal Year 2025, 20 percent of the moneys in the Tax Relief Fund will also be transferred to the account. Funds are distributed to districts on an entitlement basis using average daily membership (ADM) and may be applied to approved school construction projects. Project costs are initially paid by the state, and each district’s share is repaid through a property tax levy imposed under Idaho Code § 33-911(5).

The Bond Levy Equalization Support Program, authorized in Idaho Code §§ 33-906 through 33-906B, provides financial assistance to eligible districts for annual bond interest and principal payments. Eligibility is determined using a value index based on district market value per support unit, per-capita income, and unemployment rate. Districts with a value index below 1.0 receive a proportional share of state support, and all qualifying districts receive at least ten percent of the interest portion of their annual bond payments. Consolidated districts receive an adjustment under Idaho Code § 33-906(3) to assist with bond repayment costs.

Under Idaho Code § 57-811, the Legislature may appropriate funds from the general fund and other dedicated accounts for public school facility financing as part of the state’s annual budget process. These appropriations support the distributions and obligations authorized in statute.

Local school districts have authority to issue general obligation bonds under Idaho Code § 33-1102 for the acquisition, construction, and improvement of school buildings and sites. Bond issuance requires approval by two-thirds of qualified voters as provided in Article VIII, § 3 of the Idaho Constitution and Idaho Code § 33-1103. Bonds issued by local school districts are obligations of the district and do not constitute debt of the state under Idaho Code § 33-1115.

Idaho funds the maintenance and operation of public school facilities through a combination of state and local revenues. The state’s role focuses on ensuring that districts allocate and report minimum levels of annual maintenance investment, while the majority of funding responsibilities remain with local districts through property tax levies and district general funds.

Routine facility operations, including utilities, custodial services, and grounds maintenance, are financed through each district’s general fund. These expenditures are included in district budgets and financial statements submitted annually to the SDE and the Legislative Services Office under Idaho Code § 67-450B. While the state does not separately appropriate funds for school maintenance operations, these general fund allocations represent the principal means of supporting day-to-day building functions statewide.

School Building Maintenance Allocation

The School Building Maintenance Allocation established under Idaho Code § 33-1019 requires each school district to allocate at least two percent of the replacement value of its school buildings annually for maintenance. Districts must report maintenance allocations and expenditures to the State Department of Education (SDE) by the third Friday in December, and the SDE must transmit a summary of these reports to the Legislature by January 15 each year. Funds may be used for repairs, maintenance, or the abatement of serious or imminent safety hazards. This allocation is not an additional state appropriation but a required set-aside from district revenues. The statute provides a statewide baseline to ensure consistent attention to facility upkeep and planning.

School District Building Account (Maintenance and Operations Funding)

The School District Building Account, established under Idaho Code § 33-905, provides state assistance for facility maintenance and improvement through annual distributions of Idaho State Lottery dividends. Funds are deposited into the state treasury and distributed to districts based on prior-year average daily attendance. These distributions may be used to satisfy the maintenance allocation requirement under § 33-1019, with any remaining funds available for other facility-related purposes authorized under Idaho Code § 33-1102, including repairs, remodeling, and new construction. The size of annual distributions varies with lottery revenues but typically provides modest supplemental support relative to total maintenance needs.