Senate Education hears overview of $1 billion School Modernization Fund; statewide facility assessment shows billions in needs

State Department of Education officials told the Idaho Senate Education Committee that the School Modernization Facilities Fund has supplied most of its bond proceeds to school districts and that a new statewide facilities condition assessment shows multi‑billion dollar needs over the next two decades.

Gideon Tolman, financial officer at the State Department of Education, said the Legislature’s House Bill 521 created the School Modernization Facilities Fund and authorized the State Building Authority to issue bonds for school district capital projects. "Last session, the legislature passed House Bill 521, which had several components, including creating the School Modernization Facilities fund," Tolman said. Tolman told the committee the authority and underwriters chose JPMorgan as lead underwriter for the sale and that the bonds were structured to maximize net proceeds to districts.

The presentation explained that the legislation allowed districts to choose either annual installments over 10 years or a one‑time lump sum; Tolman said every district elected the lump sum. He told the committee that bond proceeds were issued in two series and that about $750 million was distributed earlier, with another roughly $336.5 million made available more recently, leaving about $86.5 million still to be distributed pending legislative developments. Tolman said the funding is intended for capital projects and that bond law requires projects to have a useful life of at least seven years.

Deputy Superintendent Spencer Barzee summarized the statewide facilities condition assessment (FCA), a standardized review performed using Jacobs’ MAPS software and a 37‑category rubric. Barzee said districts’ own facilities staff performed the assessments after training provided by Jacobs and the department. The assessment converts condition ratings into a facilities condition index (FCI); officials said higher percentages indicate worse condition and that facilities above the model’s replacement threshold are candidates for full replacement rather than piecemeal repairs.

Barzee told the committee the assessment produced workload and cost estimates broken into near‑term and longer‑term buckets. "What it's saying here: our current cost in the next 5 years is about $2,700,000,000 needed in order to put into school facilities," he said, adding estimates of about $5,600,000,000 for years 6–10 and just over $10,000,000,000 for years 11–20, for a total just under $19,000,000,000. Barzee said that, after applying projected inflation over 20 years, the figure rises substantially (he cited a roughly $40,000,000,000 projection when inflation is included).

Committee members asked about consistency and reliability. Senators pressed whether the standardized rubric yielded consistent results when different local staff completed assessments; department staff said all evaluators received the same training and used the same algorithm, though they acknowledged variation in who entered data (larger districts typically had multiple staff entering information, smaller districts often had one). Barzee said the department can provide more detailed spreadsheets showing how poor‑rating facilities break down by FCI score bands.

The committee also discussed how districts must use funds and comply with Idaho procurement law when spending bond proceeds. Tolman and department staff said districts must submit 10‑year facility plans to the department and attest they met statutory requirements; plans could use a provided template but districts retained local flexibility to reallocate funds if emergent needs (for example, sudden roof failures) arise. The department is required by statute to report to the Legislature annually on expenditures and future plans.

The committee received technical details about how the FCA translates condition ratings into cost estimates. Barzee said the department used baseline per‑square‑foot costs developed with input from Idaho architects and contractors and RSMeans regional cost guidance; those base figures were then applied across the 37 component categories to produce repair and replacement estimates.

Votes at a glance: The committee approved minutes for two prior committee meetings by voice vote. Senator Zito moved to accept the minutes from March 5, 2025; a second was called but not named on the record and the motion carried on a voice vote. A second motion to approve the March 6, 2025 minutes was made and seconded; that motion also carried on a voice vote.

The department’s officials said they will provide additional requested detail to senators, including spreadsheets breaking down the FCI scores for facilities rated poor and further explanation of the algorithms used in MAPS. The committee adjourned with a notice of a meeting the next day.