House panel advances bill to repurpose $50.5 million for rural school safety, repair grants and low‑rate repayable awards

Representative Doug Pickett and others presented House Bill 338 to the Idaho House Education Committee on March 3, 2025. HB 338 would modify an existing public school facilities program and use $50,500,000 of previously appropriated funds — a combination of a long-dormant school facilities account and the remainder of the bond levy equalization fund — to create a revolving grant/low-interest repayment program for districts with urgent safety, repair or renovation needs.

Pickett said the balance is not new money but an existing appropriation repurposed to help districts that cannot meet capital needs through local bonding. "This relates to an essentially dormant school facilities fund that's been in place for 20 some odd years," Pickett said, noting the fund's original purpose was to address longstanding facility deficiencies, particularly in rural districts.

Representative Monroe Furness, who detailed the bill’s mechanics, said the program would be administered by the state superintendent of public instruction rather than the State Board of Education, and a panel under the superintendent would review and prioritize applications. Grants would be capped at $5,000,000 per district and could be structured so that awarded amounts "may be repaid," using a schedule that applies the historical bond-equalization formula so rural districts face lower payments. Furness described a repayment waterfall that applies an existing revenue stream (referenced as the 2.92 mechanism) toward pre-existing bonds first; repayment obligations for HB 338 awards would not begin until existing bond obligations are satisfied. The award would be amortized over 20 years; if repayment was not completed after the amortization period, the remaining balance could be forgiven and remain a grant.

Representative Sonia Galaviz described statewide facility-condition data compiled after House Bill 521 required districts to submit standardized building assessments. She said the data identify roughly two dozen replacement‑candidate schools and show widespread deferred maintenance needs; the assessments would inform panel prioritization.

Salmon resident Brianne Green testified in person about her district’s recent experience. Salmon passed a $20 million bond in November 2023 after more than a dozen prior failures; the district still faces a $2.5–$3 million shortfall, Green said, and community donations and in‑kind work — including a $2 million donated building shell and volunteer earthwork — helped close the gap. Green told the committee HB 338 would be an additional tool to bridge shortfalls and that a modest low‑rate loan could assist timing and cash‑flow needs during construction.

Committee members asked several questions about prioritization, the likelihood that awards would convert to grants, and effects on the $50.5 million fund’s longevity. Furness said larger districts are unlikely to seek $5 million awards; the panel would prioritize smaller, needy districts and use the bond-equalization index (assessed value, average income and unemployment) to determine aid levels. Furness said it is probable that "a large portion of this will be grant money based on that levy equalization index." The bill includes a provision to retain interest payments and repayments in the account so the fund can revolve.

Representative Ehart moved for a due‑pass recommendation to the floor. The committee voted to give HB 338 a due‑pass recommendation and send it to the floor. No roll‑call vote was recorded in committee testimony; the transcript reflects a voice vote that carried.

Key bill parameters discussed in committee:

- Total fund: $50,500,000 (existing appropriations; not new general‑fund money). - Maximum award per district: $5,000,000. - Award terms: amortized over 20 years; interest set at Idaho treasury rate; repayments could be structured to begin after current bond repayment streams satisfy preexisting bonds. - Administration: Superintendent of Public Instruction to administer program; a review panel will prioritize applications using facility assessments and an index favoring smaller, rural districts.

The committee introduced HB 338 and gave it a due‑pass recommendation to the House floor. Sponsors and witnesses said the program is designed to help rural districts with urgent facility needs while preserving the fund as a revolving resource.