Middleton School District staff reported the district was awarded $11,100,000 from the state Cooperative Fund to help build a planned elementary school, and that the board has already set aside $8,000,000 from school-modernization funds to combine with the award.

District staff said the Cooperative Fund was re-funded and its application rules changed in the last legislative session; the award was made in the second round of grants. The district’s presentation noted that current Idaho law requires a district that receives a Cooperative Fund award smaller than its last failed bond amount to run another bond referendum to accept the funds. “We were awarded $11,100,000 to help with the construction of the elementary school,” staff said, noting that the district had $19,100,000 committed when combined with local modernization funds.

The Cooperative Fund dollars originate from state property-tax relief mechanisms tied to HB 292 and related appropriations. Staff explained that the state’s distribution depends on those tax-relief dollars and that the Cooperative Fund payment stream pays out after bonds are paid off. Under current law, therefore, the district is likely to run a bond measure in the spring to secure the award if it chooses that route.

The financial update came after the district’s Nov. 4 supplemental-levy defeat, which staff reported as roughly 55% against and 45% in favor (2,379 to 1,983). Staff said turnout among the district’s patrons was roughly 25–30% of registered voters, about 4,000 ballots cast. Officials walked the board through precinct-level returns and said the only precinct that voted overall in favor was largely inside Middleton city limits.

Board and staff then discussed contingency planning. Staff said they will prepare detailed cut scenarios for the board that could include reductions to security staffing (including a possible loss of a second SRO position), reductions in technology and curriculum spending, cuts or fee increases for extracurricular activities, and reduced transportation to events. “We have to plan the budget as if [the levy revenue] is not going to be there,” staff said, and asked the board to be prepared to present proposed cuts if the levy effort is rerun in May.

Looking ahead, staff recommended re-running a supplemental-levy campaign during the May primary when officials expect a larger turnout and said they will pursue targeted outreach to precincts that voted against the measure. The district also plans to expand social-media messaging and continue a parent survey to understand nonvoters’ reasons; early survey results (337 respondents) indicated concerns about tax increases, distrust in district leadership or spending, economic conditions, and insufficient information.

Next steps: staff said the board may need to take formal action in December to accept state grant terms or to authorize a new bond measure. Any formal acceptance or bond scheduling will be brought to the board for a public vote.