Bond sales lead to more money for Kootenai County school districts

The Idaho State Department of Education announced Monday that bond sales have resulted in Idaho schools receiving an additional $86.5 million in facilities funding, thanks to favorable market conditions and collaboration between the Idaho Department of Education, Idaho State Building Authority and financial services firm JP Morgan in moving the bond process forward.

"The funding goes beyond the $1 billion that districts were expected to receive following the passage of 2024’s House Bill 521," the department said in a news release.

The bonding process allows the department to access up-front cash that can be immediately utilized by public school districts to make needed improvements to school facilities, such as replacing roofs or HVAC systems. The bond proceeds will be repaid using sales tax revenue over a 10-year period.

The money can only be used for capital improvements or new school buildings.

“The final bond sale amounted to even more than the $1 billion we were expecting, which is amazing news for our school districts, especially those that are overdue for essential improvements and repairs to their facilities,” Superintendent of Public Instruction Debbie Critchfield said in the news release. “Idaho’s students deserve to learn in spaces that are safe, secure and set up for effective learning.”

The Coeur d'Alene School District is expecting an additional $2.6 million if the entire $86.5 million is passed along to districts, Community Relations Director Stefany Bales said. The district is working with its long-range planning committee, principals and maintenance team to review the initial three-year budget and planned facilities projects. This will be brought to the Coeur d'Alene School Board during its Feb. 10 meeting.

Deputy Superintendent of Operations Seth Deniston said the district has received the first $25 million of its School Modernization Facilities Funding from the state.

"We were originally slated to receive $36.5 million from the state, $26.5 million in new funding for 10 years of deferred maintenance projects," he said. "We plan to do about $3.65 million in projects each year to maximize interest earnings and allow for the capacity of our staff to complete the work."

Post Falls School District has received $18,416,481 so far and expects an additional $4.6 million at the end of February or early March.

"What is important for people to remember is that this money is supposed to 'last' school districts 10 years," Post Falls Superintendent Dena Naccarato said.

State lottery money and bond equalization payments equated to around $600,000 a year for the district. 

"The lottery money had to be used on building maintenance," Naccarato said. "With that money gone, districts will have to figure out how to pay for routine maintenance as this money cannot be used for that."

Lakeland Joint School District Chief Financial Officer Jessica Grantham said although this sounds like a new source of funding for facilities, it is just the remaining portion of funding from the initial $1 billion bond issuance that began in the fall. Lakeland's portion is a little over $18 million, of which it received roughly $11 million in December with the submission of its 10-year plan.

Grantham said she believes the state will disburse the remaining balance of the initial $18 million later this month.

She explained that the state had specific guidelines for the use of the funds. Each district was tasked with evaluating its facilities and submitting the information to the state platform.

"In addition to the evaluation, we had to submit our 10-year plan and an attestation from our board of trustees," Grantham said. "The funding is intended to be used to renovate/repair/replace capital improvements on our facilities. We are tasked with prioritizing the poor/replace improvements first. The district has a few projects outlined for this summer. We plan to have a facilities workshop to finalize the timeline for the other projects in the next couple of months."

The long-term planning required in HB 521 prompted districts to carefully evaluate the scope of their needs while effectively highlighting to policymakers the necessity of ongoing statewide facilities support.

“From the point of view of the Idaho Building Authority, this has been an extremely productive experience,” Executive Director Wayne Meuleman said. “From start to finish, we’ve had success in collaborating to expedite this process to directly benefit Idaho school districts.”

That this essential funding was secured in less than a year demonstrates the work of state education department professionals and partners to quickly get money to Idaho's districts, Critchfield said.

“Though there is more progress needed to ensure long-term facilities success for our public school districts, I am grateful for the funding from the legislature and governor and the efficient work performed by all involved," she said. "I am eager to see what these improvements mean for the safety and success of Idaho’s students.”