Group looks for answers in education
Oct. 26—A revolving loan fund or dedicated construction fund for school facilities are two of the ideas lawmakers will consider as they look for ways to help Idaho school districts address their building needs.
Neither option was discussed in much detail during a meeting of the Funding Construction of Public Schools Working Group on Tuesday.
Sen. David Lent, R-Idaho Falls, who co-chairs the working group, said the intent of the meeting was mostly to brainstorm and get different ideas out on the table. The committee will then consider the options in greater depth at its next meeting.
"November will be our analysis month," he said. "December will be the month where we actually put together our information as proposed legislation."
The overall goal of the 10-member working group is to help the Legislature meet its educational obligations, as established by the Idaho Constitution, while also addressing the soaring property tax burden across the state.
School construction bonds, plant levies and supplemental levies account for the bulk of the local property tax levies in many communities.
Lent tossed out the idea of creating a dedicated school construction fund, similar to the state Permanent Building Fund, which could offer no-interest or low-interest loans to school districts for new construction and capital renovation projects.
"And also we could include, possibly, a 50% participation from the state," he said. "So as we go to address property taxes — which is one of the reasons we're having this discussion — that would have the effect of potentially a 50% drop in property taxes levied against school facilities."
The Permanent Building Fund covers a portion of the cost for various state public works projects, including new building construction and major renovations. A five-member board prioritizes and approves the funding requests.
Sen. Lori Den Hartog, R-Meridian, liked the option of creating a revolving loan fund to provide low-cost financing for school construction projects.
She also recommended expanding and modifying the state bond levy equalization program, which helps cover school bond interest costs for rural districts or other districts that lack the high market values needed to keep the cost of the bonds affordable to local property owners.
Right now, communities have to pass a construction bond first, before finding out if they qualify for state assistance.
A change Den Hartog would like to consider is creating a formula "that shows a community before they vote that there's state support already available and guaranteed."
However, Den Hartog also noted that the committee is talking about changing the long-standing relationship between the state and local school districts, in which the districts paid for facilities while the state covered most school operating costs.
"It's the locals that contribute for buildings and — although I know it's imperfect with supplemental levies — it's the state that contributes to the operational expenses," she said. "As we talk about ways to tweak or change that, I think we have to consider if that's a balance we want to shift. And if we make that shift, what type of controls are in place?"
As an extreme example, Den Hartog said, if the state were to take responsibility for all school construction costs, then the Legislature would need to remove the district's ability to bond for such facilities.
Another option the working group will likely consider is to base any available state funding on a bare-bones facility design. If districts want something fancier, that cost would be borne entirely by local taxpayers.
A date for the working group's November meeting hasn't yet been set, although it will likely be after the Nov. 8 general election.
Archived video and presentation material from the first two committee meetings can be found online at legislature.idaho.gov/sessioninfo/2022/interim/fcps.
Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.
