TITLE 33

EDUCATION

CHAPTER 10

FOUNDATION PROGRAM — STATE AID — APPORTIONMENT

33-1035.  SCHOOL DISTRICT EARNED AUTONOMY. (1) Notwithstanding any provision of law to the contrary, a school district that satisfies the requirements set forth in this section may spend its allocated state funding, including but not limited to discretionary funds, categorical funds, and salary apportionment, in the manner it deems best serves its students and schools.

(2)  A school district shall have the option to participate in the flexibility provided in this section if it:

(a)  Meets the following academic benchmarks:

(i)   The school district’s composite proficiency rate on the Idaho standards achievement test is in the top twenty percent (20%) of school districts statewide or the school district exceeds the state proficiency average by at least fifteen (15) percentage points in both English language arts and math;

(ii)  Seventy-five percent (75%) or more of the school district’s K-3 students score proficient on the spring administration of the Idaho reading indicator or the school district demonstrates a fifteen percent (15%) reduction in students scoring below basic annually; and

(iii) The school district maintains an adjusted cohort graduation rate that is three (3) percentage points higher than the state average or the percentage of graduates who earn a college and career readiness indicator that includes career technical education completion, an associate’s degree, qualifying advance placement, an international baccalaureate, or a dual credit course is five (5) percentage points higher than the state average;

(b)  Provides the following evidence demonstrating financial stability for each of the previous three (3) fiscal years:

(i)   An unqualified audit opinion or a qualified opinion qualified solely on the basis of not reporting the actuarial value of the public employee retirement system of Idaho sick leave plan pursuant to statement no. 45 of the governmental accounting standards board;

(ii)  An audit devoid of significant findings and conditions, material weaknesses, or significant internal control deficiencies; and

(iii) An audit that does not include a going concern disclosure in the notes or an explanatory paragraph within the audit report.

(3)  Participating school districts shall be exempt from the reporting requirements, including those established through rulemaking authority, of sections 33-119, 33-135, 33-1002B, 33-1004E, 33-1028(1)(f) and (2), 33-1405, 33-1632, 33-1805, 33-1811, 33-2004, and 33-4805, Idaho Code, without incurring a penalty or a reduction in funding.

(4)  Participating school districts shall automatically maintain spending flexibility from year to year, except that the state department of education may revoke eligibility if:

(a)  The school district fails to receive an annual unmodified audit opinion or if the auditor’s report on internal controls reports one (1) or more material weaknesses or significant deficiencies; or

(b)  The school district fails to satisfy the academic requirements set forth in subsection (2) of this section for two (2) or more years.

(5)  In 2029, the state board of education shall report to the legislature the number of participating school districts and changes, if any, in student growth or proficiency on the Idaho standards achievement test. Additionally, the report shall include information regarding whether any participating school districts collected a levy, and any disclosures required pursuant to section 33-802B, Idaho Code, shall be appended to the report.

History:

[33-1035, added 2026, ch. 309, sec. 1, p. 1249.]