Idaho Digital Learning Academy made a separate division; enrollment growth raises funding and fee questions

The Joint Finance‑Appropriations Committee on March 4 heard that the Idaho Digital Learning Academy (IDLA) is now budgeted as its own division and that rising enrollments are changing how the program is funded.

Jared Tetrault, Legislative Services Office, summarized the change enacted by last session’s House Bill 452: IDLA funding is now directly tied to the number of eligible student enrollments rather than a share of the broader public schools appropriation. Under current statute that funding level is $430 per eligible enrollment; Tetrault told the committee that if a pending statutory change (language in HB 251) is enacted the committee will need to amend Idaho Code to increase the per‑enrollment rate to $445.

Budget figures and growth: IDLA estimated 49,680 enrollments when its fiscal year appropriation was set, but actual enrollments were closer to 52,000 at the time of the hearing. Tetrault told members that the agency’s FY24 beginning cash balance was about $5 million and that it ended FY24 with roughly $8.5 million. He said the FY25 appropriation was $21,362,400 based on 49,680 enrollments and that each thousand‑student change in enrollment translates into roughly $430,000 in funding; he added that a 53,000 enrollment projection last fall would have required a piece‑of‑withdrawal from PSIF of about $1.4 million, a figure IDLA sought to avoid by conservatively setting estimates.

IDLA Superintendent Jeff Simmons told the committee IDLA is serving approximately 52,000 enrollments this year, operates about 101 full‑time positions plus hundreds of part‑time teachers, and provides services that include dual credit, credit recovery, driver education and K‑5 literacy supports. He said driver‑education enrollments were ahead of last year’s totals and that demand for the elementary literacy program has grown.

Course fee and access: Simmons told the committee IDLA is pursuing a lower course fee and said the board had a proposal to reduce the statutory course fee cap from $75 to a proposed $40 per course. "We are proposing a $40 course fee, which is a $35 reduction for next year," Simmons said; he told the committee the reduced fee was expected to be affordable for more families while remaining financially sustainable for IDLA.

Instructional quality and outcomes: Simmons said IDLA reports final course grades to local districts and that the academy aligns courses to state standards and benchmarks. He told legislators the organization reports a high pass rate and has an internal goal of a 90 percent pass rate for courses; he said IDLA’s pass rate was about 89 percent last year and that the academy expects to meet the 90 percent goal this year.

What the committee requested: members asked for clarification on the potential PSIF withdrawal mechanics, more precise enrollment projections and a breakdown of districts that rely most heavily on IDLA services. Tetrault and IDLA staff agreed to provide the additional information.

Ending: no appropriation votes were taken during the hearing; IDLA’s requested adjustments and the proposed course‑fee change will move forward to subsequent committee consideration and to the IDLA board for final action.