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Analysts tell JFAC Public Education Stabilization Fund holds $250.8 million, still $189.6 million shy of 15% cap
Summary
Legislative analysts reported the Public Education Stabilization Fund (PSIF) had a cash balance of about $250.8 million and remains below the statutory 15% cap; the governor has recommended a $50 million transfer on July 1, 2026.
At Wednesday's Joint Finance‑Appropriations Committee meeting, Jared Tedrow, Deputy Division Manager in the Budget Policy Analysis Division of the Legislative Services Office, presented a 10‑year review of the Public Education Stabilization Fund (PSIF) and said the fund had a cash balance of $250,880,000 as of July 1, 2024.
Tedrow told the committee the fund operates as a safety net for the public school support program; when appropriations fall short, monies can be withdrawn from PSIF, and when appropriations exceed the cap, monies are deposited into PSIF. He said the statutory cap was historically 8.334% but was increased to 15% in House Bill 521. “This fund is generating about $8.9 million each month in interest,” Tedrow said, and at current state fund levels 15% would be roughly $440,390,000, leaving approximately $189,600,000 of capacity before the fund reaches the cap.
The presentation reviewed withdrawals from 2015 through 2021 tied to growth in support units and increases in appropriations, and deposits made in later years as lawmakers replenished the account. Tedrow noted that fiscal year 2024 saw no deposits or withdrawals after committee action placed language in the appropriation bill directing the full distribution of appropriated dollars to public schools. He also said the governor recommended a $50,000,000 transfer into PSIF on July 1, 2026.
Tedrow cited Idaho code requirements that JFAC review the fund and consider transfers when withdrawals occur. He emphasized the fund's role during past recessions, when legislative withdrawals reduced the need for deeper cuts in public schools. The presentation included historical cash‑balance figures, interest generation, and the calculation comparing current cash to the 15% cap.
The committee did not take formal action on the presentation; members moved on to the next agenda item after questions were invited and none were recorded.
The review provides context for upcoming budget deliberations: PSIF acts as a reserve to stabilize school funding and remains below the current 15% statutory cap by a significant margin, leaving room for possible future deposits or transfers.
