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H 350

EDUCATION – Adds to existing law to provide that funds appropriated to public schools shall be used for the purposes identified in statute or in an appropriation.

68th Legislature, 1st Regular Session (2025)

Requires funds earmarked for a specific purpose to be used as designated, with reimbursements or future payment withholdings for misused funds.

Referred to Education
#appropriations #education #funds #schoolsandschooldistricts
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Bill Summary · H 350

Summary of House Bill 350 (H 350) – Idaho, 2025

Overview

House Bill 350 adds a new provision to Idaho law to ensure that funds distributed by the state to school districts and public charter schools, when identified for a specific purpose in statute or an appropriation, are used only for that purpose. It creates mechanisms for reimbursement to the state and potential withholding from future state payments if misused. The bill includes an emergency clause, making it effective July 1, 2025.

Key Provisions

  • Binding allocations (new section 33-1035): Any state-distributed funds to school districts or public charter schools that are expressly identified in statute or an appropriation for a specific purpose must be used for that purpose.
  • Reimbursement for misused funds: If funds intended for a certain purpose are used for another purpose, the district or charter school must reimburse the state general fund for the misused amount.
  • Withholding from future payments: If reimbursement is not made, an amount equal to the misused funds will be deducted from the district’s or charter school’s next state payment under the applicable Idaho Code chapter (chapter 33 or chapter 52, title 33).
  • Emergency/Effective date: The act contains an emergency clause and becomes effective July 1, 2025.

Affected Parties

  • State government and Idaho General Fund (revenues and expenditures not altered, per the fiscal note, but with new fiscal responsibilities for districts).
  • School districts and public charter schools receiving state funds that are earmarked for specific purposes.
  • State education budget administrators responsible for ensuring funds are used as intended and for processing reimbursements or withholdings.

Fiscal Implications

  • Fiscal note conclusion: The legislation is not projected to increase or decrease state revenue or local expenditures; thus, no net fiscal impact is anticipated at adoption.
  • The bill introduces new administrative requirements for tracking fund usage, identifying misallocations, and processing reimbursements or withholdings.

Timeline and Legislative Status

  • Introduced: March 3, 2025.
  • Initial actions: Referred to JRA for printing; subsequently referred to Appropriations and then to Education.
  • Recent actions: Reported out of committee and returned to the desk for re-referral; ultimately referred to Education per the latest actions.

Practical Considerations

  • School districts and charter schools may need enhanced internal controls to verify that allocated funds are used for their designated purposes.
  • Districts should establish processes for timely reimbursement to the state if funds are redirected from their intended use.
  • Administrators should monitor future payments to ensure compliance with the new deduction mechanism if reimbursements are not completed.

For context, the bill is designated RS32540 / H0350 and includes contact information for the sponsor in the fiscal note (Rep. Kyle Harris).

Compiled from official sources — confirm details with the bill’s official record.

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