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Legislative analysts brief JFAC on Public Education Stabilization Fund status
Summary
Legislative staff told the Joint Finance-Appropriations Committee the Public Education Stabilization Fund is well below its 15% cap but could receive further deposits absent action; staff outlined history, balances, and a potential governor-recommended transfer.
Jared Tedrow, deputy division manager in the Budget Policy Analysis Division of the Legislative Services Office, briefed the Joint Finance‑Appropriations Committee (JFAC) on the status of the Public Education Stabilization Fund (PSIF). He told the committee the fund functions as a safety net for the public school support program and is governed by statute requiring JFAC to review the fund and consider transfers if withdrawals occur.
The fund’s cap has been raised from the historical 8.334% to 15% of state funds appropriated to public schools, and the balance stood at roughly $250.8 million as of July 1 of the most recent fiscal year reported in the presentation. Tedrow said the 15% threshold on the committee’s current base of state school funding is about $440.39 million, leaving a gap of roughly $189.6 million before the fund would reach the cap.
“If too many dollars are appropriated, then funds can be deposited into [PSIF] to ensure the distributions are provided to schools based on the formula set forth in Idaho code and this committee,” Tedrow said.
Tedrow reviewed the fund’s history, noting deposits and withdrawals in prior years tied to changing appropriations and support units for schools. He said no dollars were deposited into or withdrawn from PSIF in the most recent fiscal year after the committee placed budget language to distribute appropriated public school money directly to districts.
Staff told the committee the fund is generating interest (reported in the presentation as roughly $8.9 million per month) and that the governor has recommended a $50 million transfer into the PSIF effective July 1, 2026. Tedrow also said that, absent further action and based on fewer support units appropriated so far, an additional $35 million to $40 million could be deposited into PSIF at fiscal year end.
Why it matters: PSIF serves as an automatic stabilizer for public school support when appropriations and eligibility change. The gap to reach the 15% cap — and a proposed executive transfer — could change where excess dollars are directed in future years.
The committee received staff materials and statutory references identified in the staff presentation for further review.
