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H 338

EDUCATION – Amends existing law to revise provisions regarding the Public School Facilities Cooperative Fund and the School District Facilities Fund.

68th Legislature, 1st Regular Session (2025)

House Bill 338 boosts funding for Idaho school facilities, especially in rural areas, ensuring safer buildings by easing access to financial support for smaller projects.

Law without signature – March 28, 2025 Session Law Chapter 213 Effective: 03/29/2025 SECTION 3; 07/01/2025 SECTION 1 & 2
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Bill Summary · H 338

Summary of House Bill 338 (H 338)

Overview

House Bill 338, titled "EDUCATION – Amends existing law to revise provisions regarding the Public School Facilities Cooperative Fund and the School District Facilities Fund," was introduced on February 27, 2025. The bill aims to enhance the funding mechanisms for school facilities in Idaho, particularly addressing unsafe school buildings. It was enacted into law without the governor's signature on March 28, 2025, and will take effect in stages on March 29, 2025, and July 1, 2025.

Purpose and Intent

The primary intent of H 338 is to amend the existing provisions governing the Public School Facilities Cooperative Fund (PSFCF) to:
- Provide a state backstop for remediating unsafe school facilities when local efforts fail.
- Facilitate easier access to funding for smaller projects, particularly in rural areas where school districts may lack sufficient bonding capacity.

This legislation represents the first significant changes to the PSFCF since its establishment in 2006, aiming to resolve longstanding issues related to school facility safety and funding.

Key Provisions

  1. Removal of District Supervisor Requirement:

    • The bill eliminates the requirement for the state to appoint a District Supervisor for smaller projects, which has previously hindered the use of the PSFCF.
  2. Expanded Fund Usage:

    • School districts can now access the PSFCF for projects where their authorized bond is inadequate, allowing for more flexibility in addressing facility needs.
  3. Repayment Mechanism Changes:

    • The repayment of costs incurred by school districts will shift from a state-imposed plant facilities levy to repayments from the school district’s Public Schools Facilities Fund distributions, after accounting for any existing bonds issued prior to July 1, 2025.
  4. Funding Transfer:

    • The bill includes a provision for transferring $25 million from the Bond Levy Equalization Fund to the PSFCF, increasing its balance to $50.5 million.
  5. Application Process:

    • School districts must submit applications to the PSFCF panel for funding, detailing safety hazards, abatement plans, and financial information.
  6. Emergency Declaration:

    • The bill declares an emergency, allowing for immediate implementation of certain provisions.

Impact

  • Affected Entities:

    • The legislation primarily impacts school districts across Idaho, especially those in rural areas with limited financial resources. It aims to enhance the safety and quality of school facilities, thereby improving the learning environment for students.
  • Financial Implications:

    • While the bill does not increase overall revenues, it reallocates existing funds to better support school facility projects. The changes are expected to streamline funding processes and reduce barriers for smaller projects.

Procedural Timeline

  • Introduced: February 27, 2025
  • Passed by House: March 5, 2025
  • Passed by Senate: March 20, 2025
  • Enacted into Law: March 28, 2025
  • Effective Dates:
    • March 29, 2025 (Section 3)
    • July 1, 2025 (Sections 1 & 2)

This summary provides a comprehensive overview of House Bill 338, detailing its purpose, key provisions, and potential impact on Idaho's school facilities and funding mechanisms.

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

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