State Board pitches ‘Idaho First’ outcomes funding; warns of steep impacts for community colleges

Jennifer White, executive director of the State Board of Education, told the Joint Finance Appropriations Committee on Thursday that the board is proposing an outcomes‑based funding approach called "Idaho First" that would place a portion — 10% — of institutions’ base higher‑education funding "at risk" and allocate performance‑based "momentum" funds to reward progress on student progression and completion.

White said the plan is meant to prioritize resident students and workforce‑relevant programs while guarding against the volatility other states experienced. "We chose 10% very deliberately," she said, arguing that the share is meaningful but not so large as to destabilize rural and community colleges. Under the board’s example, momentum funds would be split across weighted enrollment (25%), progression (30%) and completion (45%). Unearned momentum dollars would be returned to the board to fund targeted institutional interventions.

The proposal is not a final formula; White emphasized the need for a phased, multi‑year rollout and improved data infrastructure. She told lawmakers the board lacks consistent, comparable data across institutions and has begun pursuing data sharing agreements with the workforce development council and the Department of Labor to track outcomes tied to employment. "We need better data," she said, and called for ongoing stakeholder work to refine program weights, dual‑enrollment treatment and protections for community colleges.

Lawmakers voiced a mix of support and concern. Several members said they back an outcomes orientation but warned that community colleges — which serve different student populations and delivery models — could be disproportionately harmed if changes are implemented hastily. "We need to take care of our community colleges," Vice Chair Miller said, urging that workforce outcomes be a central priority in any transition. Representative Petzke asked whether the at‑risk funds would simply be recycled to other institutions; White replied that the vision is to use returned funds for targeted interventions to help struggling institutions improve student outcomes, not to punish them.

The board also touched on several budgetary items tied to the presentation: the Office of the State Board of Education (OSB) now manages IT and data functions transferred from the State Department of Education; the school safety and security fund receives an annual $300,000 transfer from the public school income fund; and federal COVID and ARPA funding that previously inflated appropriations has mostly been spent or reverted. Campbell, the legislative analyst who introduced the OSB budget presentation, noted a prior $82,000,000 COVID reversion and that FY2027 recommendations exclude those federal funds.

White asked the committee for feedback as OSB works to refine metrics and implementation details. She repeatedly urged a cautious approach: several states that moved quickly to outcomes funding, she said, had to reverse course to avoid destabilizing institutions. The board recommended using a stakeholder committee with legislative representation to update priorities on a five‑year cycle. "I want this to be a conversation and a partnership with you all," she said.

The committee did not take formal action on the proposal at Thursday’s session; members directed staff to continue work and provide additional data and cost information in follow‑up briefings.