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JFAC reviews Public Education Stabilization Fund as balance nears 15% cap
Summary
Legislative staff briefed the Joint Finance‑Appropriations Committee on the Public Education Stabilization Fund balance, the statutory 15% cap established by recent legislation, and a governor-recommended transfer; committee will consider transfers as required by Idaho code.
The Joint Finance‑Appropriations Committee heard a fund review of the Public Education Stabilization Fund from Jared Tedrow, deputy division manager in the Budget Policy Analysis Division of the Legislative Services Office.
Tedrow told the committee the Public Education Stabilization Fund (PSIF) acts as a safety net for public school support program appropriations: if appropriations fall short, the fund can be withdrawn; if appropriations exceed the cap, dollars are deposited to the fund. He said the fund cap historically was 8.334% of state funds appropriated to public schools but was increased to 15% by House Bill 521.
The briefing noted a current cash balance of about $250,880,000 and that 15% of state funds (calculated in the presentation as $440,390,000) would fill the cap, leaving an available variance of roughly $189,600,000 before reaching the cap. Tedrow said the fund is generating roughly $8.9 million in interest per month. He also told the committee the governor had recommended a $50 million transfer into the fund effective July 1, 2026.
Tedrow reviewed the fund's recent history: withdrawals occurred from 2015 through 2021 during periods of increased support units and appropriations; the committee previously considered and enacted transfers in 2020, 2022 and 2023. In past years when PSIF reached its prior cap, some excess dollars were directed to the bond levy fund; after legislative changes the bond levy mechanism was removed by House Bill 521 and excess deposits would instead go to the school district facilities fund established in House Bill 292. Tedrow said fiscal year 2024 recorded no deposits or withdrawals because appropriation language distributed appropriated money to schools for that year.
The presentation closed with a statutory reference and a reminder that Idaho code section 30 three‑one 18 C requires JFAC to review the fund and consider transfers if a withdrawal has occurred.
The committee did not take formal action during the presentation; staff indicated potential additional deposits later in the fiscal year if appropriations and support‑unit counts change.
