Charter School Facility Funding Reform: 2025 Idaho House Bill 331
This bill updates how public charter schools can access state help to finance their building projects at lower interest rates. By changing the program's capacity limits, more charter schools will be able to participate.
The Bill's Purpose
House Bill 331 fixes an issue with the state's program that helps established charter schools borrow money for buildings at better interest rates. The program has been working well – saving $11.8 million in interest payments each year – but it hit its legal limit on how many schools could participate. This bill adjusts the formula that determines that limit, allowing more qualifying charter schools to join in and benefit from lower borrowing costs.
The Core Provisions
Reaffirms the state's commitment to charter school buildings
The bill reinforces that helping public charter schools secure affordable facilities serves an essential public purpose - ensuring more dollars go to educating students instead of paying interest.
Maintains strict qualification standards
Charter schools still need to prove they're well-managed by showing three years of good academic results, sound financial operations, and responsible budgeting before they can participate.
Keeps strong financial safeguards
Participating schools must:
Set aside a full year's worth of loan payments in a special reserve account
Allow the state to intercept their funding to ensure loan payments are made
Pay small fees to support the program (0.5% when the bond is issued and 0.075% annually on the remaining balance)
Changes how the program's capacity is calculated
Instead of linking program capacity to charter school enrollment percentages, the new formula bases it directly on the amount of money in the program fund. This simple change allows more schools to participate without changing the essential safeguards.
Protects taxpayers from liability
The bill explicitly states that these bonds are not state debt, meaning taxpayers are protected from having to pay if a school defaults.
Current Status and Sponsors
Sponsors: Representative Wendy Horman, Senator Lori Den Hartog, Senator Lent, Representative Pickett, and the Education Committee
Committee: House Education Committee
Current Status: Signed into law by the Governor on March 27, 2025. It passed unanimously in both the House (68-0-2) and the Senate (35-0-0), showing strong bipartisan support. The law will take effect on July 1, 2025.
