Idaho Digital Learning Academy becomes its own division as enrollments grow; governing board proposes $40 course fee

The Joint Finance‑Appropriations Committee heard March 4 that the Idaho Digital Learning Academy (IDLA) will be budgeted as its own division for the first time and that recent enrollment growth is changing the academy’s state funding needs.

Jared Tetrault of the Legislative Services Office explained to the committee that House Bill 452 moved IDLA’s funding away from a fixed public‑school appropriation and instead ties its budget to the number of student enrollments in IDLA courses. “That is funded at $430 per eligible enrollment,” Tetrault said. The enrollment estimate used in the agency packet was 49,680; IDLA reported actual estimated enrollments closer to just over 52,000 during the hearing.

Why it matters: Because IDLA’s appropriation is now enrollment‑driven, higher enrollments trigger appropriation changes (withdrawals from the Public Education Stabilization Fund or supplemental appropriations as appropriate). The committee discussed the academy’s fund balance, the statutory per‑enrollment rate and a pending statutory change in HB 251 that would increase the per‑enrollment rate to $445 if enacted.

Key details from the briefing and questions

- Funding model and numbers: Tetrault said last year’s budgeted figure for IDLA was $21,362,400, based on 49,680 enrollments at $430 per enrollment. IDLA told the committee it expects enrollments closer to 52,000, which would increase its funding entitlement under the enrollment formula. The academy’s independent audit shows a June 30, 2024 cash balance of about $8.5 million.

- Programs driving growth: IDLA Superintendent Jeff Simmons said the academy is seeing rapid growth in some program areas, notably driver education and an elementary K‑5 literacy program. “As of January of this year, had already served more driver’s ed enrollments than we had the previous entire school year,” Simmons said. He described the elementary literacy program as a targeted intervention using the same assessment tools schools use and pairing IDLA certified teachers with in‑person teachers to provide small‑group, individualized instruction.

- Outcomes and completion rates: Simmons said IDLA reports a final overall percentage grade to the enrolling school for each completed course; the academy’s internal strategic goal for course pass rates is 90 percent, and he said IDLA recorded an 89 percent pass rate last year.

- Course fee and access: Idaho statute caps district fees IDLA may charge at $75 per course. Simmons told the committee the IDLA board has a proposal before it to reduce the course fee to $40 for the coming year, a $35 reduction. “We are proposing a $40 course fee, which is a $35 reduction for next year,” Simmons said; he told the committee the academy believes it can manage that reduction given enrollment growth and other revenue streams.

- Contract and statutory changes: Tetrault said IDLA’s baseline per‑enrollment rate and other items may require statutory change if bills (including HB 251 and earlier HB 452) are enacted by the full Legislature.

Follow‑ups and committee requests

Committee members asked for a clearer reconciliation of budgeted versus actual enrollments and for the mechanics of any PSIF withdrawal tied to enrollment growth. Analysts said the committee will need to set an appropriation level that aligns with enrollment assumptions and the timing of statutory changes.

Ending

IDLA’s separate division status, sustained enrollment growth and the academy board’s course‑fee proposal were the primary takeaways for JFAC. Staff told the committee they will supply more detailed enrollment reconciliations and explain how a statutory per‑enrollment change (HB 251) would change appropriation mechanics.