Idaho Falls finance director briefs senators on how school funding works and where gaps appear

Lynelle Farmer, director of finance for Idaho Falls School District, told the Senate Education Committee that Idaho school finance uses a multi‑fund accounting structure and a support‑unit model that allocates staff and dollars; she also described why the shift between enrollment and average daily attendance (ADA) after COVID has reduced some districts’ state funding.

Why it matters: Farmer’s briefing explained the mechanics behind statewide K–12 funding and highlighted areas that affect district budgets — protection funding, career ladder salary apportionment, discretionary (operational) dollars and special revenue streams. Senators used the briefing to probe staffing, insurance and the effect of lower attendance on revenues.

Farmer began by explaining the common fund structure used by Idaho districts and the Idaho Financial Accounting Reporting Management System (IFAMS). "Our general fund is identified as IFAMS 100 and is the main operating fund of the school district," she said, adding the general fund pays salaries, benefits and limited capital. She reviewed other fund types — special revenue funds, debt service and capital project funds — and said each fund is audited separately.

Support units and money that follows staff: Farmer outlined how students and classroom divisors generate support units that then translate to staff FTE and salary apportionment. She said a support unit has a notional value ("around $50,000") and that for fiscal 2025 a support unit equates to $43,622 in discretionary funding. Of that amount she said $20,150 is designated for insurance, leaving roughly $23,004.72 for other discretionary uses.

Farmer described how the career ladder shapes state salary apportionment for…