House education committee holds charter financing bill, introduces RS32492 to move change to floor

BOISE — On Feb. 25, 2025, the Idaho House Committee on Education voted to hold House Bill 256 in committee and introduced RS32492, a revised statutory (RS) approach that the sponsor and the state treasurer’s office say shifts a floor-based funding method to a formula-based method for the state’s credit-enhancement program for charter school facility financing.

Representative Wendy Horman, sponsor of the bill and a lawmaker from District 32 in Bonneville County, told the committee the change was requested by the Treasurer’s Office and replaces the originally introduced bill with an RS that adopts a formulaic approach.

The bill drew in-person and remote testimony from charter operators and lenders who said the program reduces financing costs for schools. Monica White, CEO and founder of Elevate Academy, described the effect on construction debt for trade-focused charter campuses: “If we go through the typical bond market, we have to pay 865,000 in interest annually each year for 35 years. So being able to access the credit enhancement program would decrease our interest rate to 5%. This would decrease our annual interest payments to 576,000 or by 289,000 each year.” White said that if three campuses use the program, Elevate would save “over 850,000 each year in interest expense over 35 years,” which she summarized as “over 30,000,000 in savings.”

Emily Downey, chief financial officer for SAGE International Charter Schools, said earlier refinancings using the program saved her campuses $119,000 and $239,000 per year in interest and called increasing capacity for the program important so charter operators can keep “more of our state education funding in the classroom rather than paying interest.”

Robin Odlin of Building Hope Finance, a certified development financial institution, called Idaho’s credit enhancement “state of the art” and said it brings lenders to the market who otherwise might not lend in Idaho. Terry Ryan, CEO of Bloom, testified remotely that the program works with federal grants and revolving loans to enable 30- to 35-year permanent financing and said the program “allows us to open schools that are doing great things by the kids of Idaho and by their families.”

Committee members asked procedural and technical questions about how to handle the original bill and the RS together. Representative Nelson asked for guidance on how to motion to combine the bill and the RS; the committee chair explained the typical two-step process: hold the original bill in committee and introduce the RS with a recommendation to place it on the second-reading calendar if the sponsor agrees. Representative Harris moved to hold House Bill 256 in committee; the motion passed by voice vote. Representative Mundyff then moved to introduce RS32492 and request that it be placed on the second-reading calendar; that motion also passed by voice vote.

The committee did not take a roll-call vote on the underlying policy changes during the Feb. 25 hearing; the RS will go forward to the House calendar for second reading as requested. Testimony at the hearing emphasized the program’s potential to reduce long-term interest costs for charter school facility projects and the role of the Treasurer’s Office in proposing the change.

The committee moved on to other agenda business after the motions, and the hearing adjourned at 9:28 a.m.