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Senate advances $50 million revolving fund for school facilities aimed at smaller and rural districts
Summary
House Bill 3‑38 would combine a long‑unused $25 million fund with an additional $25 million to create a $50 million revolving program offering up to $5 million per district to address facility shortfalls; the Senate passed the bill March 19.
The Idaho Senate on March 19 approved House Bill 3 38, which creates a $50 million revolving fund to help K‑12 school districts, particularly smaller and rural districts, finance facility projects and pay cost overruns.
Senator Julie Anthony, the floor sponsor, said the bill repurposes an existing $25 million Public School Facilities Cooperative Fund that has not been spent in about 20 years and combines it with another $25 million to form a revolving pool. Under the program described on the Senate floor, eligible districts may receive allotments of up to $5 million; repayments would be made from the districts' share of what is called "2‑92" money (state distributions) over a 20‑year term. Senator Anthony said if a district cannot pay after 20 years, the remaining debt would be forgiven and the fund would revolve to assist other districts.
Senator Anthony and other supporters stressed the measure is aimed at districts that struggle with economy of scale and have been unable to pass bonds or to complete projects because of cost overruns. Senator Lenny called the bill “a great example of how we've tried to be very innovative and utilize existing funds” to help small districts.
Senators emphasized the bill does not relieve districts of existing bond obligations; as Senator Anthony said, districts must first pay their own debt and levies before accessing revolving funds.
The Senate approved the bill on final reading and will return it to the House. Supporters said the fund will let money that has sat idle for decades be used now to address pressing facility needs.
Why it matters: The measure targets facility deficits in smaller and rural districts that lack the tax base or enrollment to achieve economy of scale when financing capital projects. It creates state‑level revolving assistance tied to existing state school funding distributions.
