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Legislature

New Idaho Law Offers Budget Flexibility, but Few Schools Likely to Use It This Year

A new state law granting qualifying public schools greater control over spending decisions took effect July 1, but timing and administrative delays mean the program will likely see minimal participation in its first year.

The “earned autonomy” initiative allows schools meeting academic and financial benchmarks to operate with reduced state reporting requirements and more flexibility in how they allocate funds. However, the Idaho Department of Education has not yet released guidance or application materials, leaving schools uncertain about eligibility and the process to participate.

Department officials say they plan to distribute materials before school begins next month, but that timeline creates a practical obstacle. Most school boards finalize their budgets in July and August. By the time the state provides guidance, many districts will have already adopted spending plans for the fiscal year, making participation largely impractical for this cycle.

“I don’t think anybody’s really going to want to go through the exercise of redoing their budget,” said Blake Youde, lobbyist for the Idaho Charter School Network, which helped draft the legislation alongside the Idaho School Boards Association and the Idaho State Board of Education.

Estimates suggest only about 10 of Idaho’s 116 school districts could qualify for the program. Charter schools appear more interested, with roughly 15 of 76 eligible to participate. Virtual charters are excluded from the program entirely.

At least eight traditional school districts may meet the academic requirements: McCall-Donnelly, Troy, West Ada, Cottonwood, Rockland, Coeur d’Alene, Lake Pend Oreille, and Dietrich. Qualifying schools must maintain a graduation rate above the state average, show that at least 75 percent of kindergarten through third-grade students demonstrate proficiency on spring reading assessments, and either rank in the top percentile statewide on standardized tests or score 15 percentage points above the state average in language arts and math.

Financial stability is also required, with schools needing three consecutive years of strong audits and three years of demonstrated financial health.

The Cottonwood Joint School District meets the academic bar, according to available data, but the superintendent has indicated the district does not feel it needs the added spending flexibility that autonomy status would provide.

Charter school leaders have expressed more enthusiasm for the program. “I think as charters we just value maximum flexibility in how we spend our resources,” said Kate French, chief operating officer of American Classical Schools of Idaho.

The law reduces reporting burdens for participating schools, cutting the number of required annual reports from 130 to a smaller number for fiscal year 2027. However, schools must reapply annually to maintain autonomy status, meaning participation is not permanent.

The original legislation focused exclusively on charter schools, but lawmakers expanded it during the legislative process to include traditional public school districts, broadening the potential reach of the initiative. Advocates argued that high-performing schools should have greater latitude in managing their resources without excessive state oversight.

Whether schools will embrace the program once guidance materials arrive remains uncertain. The combination of tight timelines, budget cycles already underway, and the administrative burden of applying may limit real-world uptake in coming years, despite the program’s intended flexibility.

Related: Bluum Moves to Become Idaho Scholarship Distributor Under New Federal Tax Credit Law

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