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Senate Education committee sends House Bill 331 to floor to expand charter school credit enhancement program
Summary
The committee voted to send House Bill 331 to the Senate floor with a due‑pass recommendation. Sponsor Sen. Lori Den Hartog told the committee the bill changes the formula and lifts a cap so more charter schools can use a state-backed credit enhancement that lowers borrowing costs.
The Senate Education Committee voted to send House Bill 331 to the Senate floor with a due pass recommendation after State Sen. Lori Den Hartog, sponsor of the measure, described changes to the state’s charter school credit enhancement program.
Den Hartog told the committee the bill replaces the existing formula and lifts a cap so more public charter schools can participate. "By changing the formula and lifting the cap, it allows more schools to participate," she said. The sponsor said the change does not require new appropriations: funds for the charter school revolving loan fund already reside in state code and a scheduled transfer will increase program capacity.
How the program works: The credit enhancement is not direct state lending, Den Hartog said; rather, it uses the state’s backing to lower interest rates on bonds and works alongside an existing charter school revolving loan fund. Under the program, the Idaho Housing and Finance Association (IHFA) will calculate a portfolio’s maximum aggregate annual debt service over a 35‑year horizon to determine whether a new applicant can be added without exceeding the fund’s capacity.
Numbers cited by proponents and sponsor: Den Hartog said the current maximum aggregate annual debt service for the program is $11,400,000 and that the Charter School Facilities Fund currently has $1,100,000 on hand, with additional statutory transfers scheduled that, when completed, were said to increase program capacity to roughly $750,000,000.
Charter school representatives told the committee the program materially reduces borrowing costs and translates into classroom resources. Monica White, chief executive officer and co‑founder of Elevate Academy, said refinancing at lower rates would allow her network to shift funds "into the classroom" rather than toward bond interest and estimated potential savings of roughly $289,000 a year per financed campus under current market assumptions. Emily Downey, chief financial officer for Sage International Charter Schools, said the program "saved us $119,000 per year in interest" when her Boise campus refinanced and saved $239,000 annually when a Middleton campus was financed.
Lenders and advocates described built‑in protections. Robin Odlin, president of Building Hope Finance, and Blake Yood of the Idaho Charter School Network said the program includes strict eligibility criteria and front‑end safeguards, and the state intercepts portion of payments so distributed revenue can be directed to debt service when required. Yood compared Idaho’s approach to Colorado and Utah and said Idaho’s formula and fund levels are more conservative than those states’ programs.
Committee action and next steps: A motion to send House Bill 331 to the floor with a due pass recommendation was moved, seconded and approved by the committee by voice vote. Sen. Den Hartog asked for committee support to advance the bill; the chair announced the committee will meet again for other items on the following day.
No roll‑call vote or amendments were recorded on the floor; proponents were available to answer committee questions and several lenders and charter operators testified in support.
