Adds to existing law to provide for school district and public charter school earned autonomy regarding spending.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 883
BY EDUCATION COMMITTEE
AN ACT	1
RELATING TO EDUCATION; AMENDING CHAPTER 10, TITLE 33, IDAHO CODE, BY THE AD-	2
DITION OF A NEW SECTION 33-1035, IDAHO CODE, TO ESTABLISH PROVISIONS RE-	3
GARDING SCHOOL DISTRICT EARNED AUTONOMY; AMENDING CHAPTER 52, TITLE 33,	4
IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-5207A, IDAHO CODE, TO	5
ESTABLISH PROVISIONS REGARDING PUBLIC CHARTER SCHOOL EARNED AUTONOMY;	6
AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.	7
Be It Enacted by the Legislature of the State of Idaho:	8
SECTION 1. That Chapter 10, Title 33, Idaho Code, be, and the same is	9
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	10
ignated as Section 33-1035, Idaho Code, and to read as follows:	11
33-1035. SCHOOL DISTRICT EARNED AUTONOMY. (1) Notwithstanding any	12
provision of law to the contrary, a school district that satisfies the re-	13
quirements set forth in this section may spend its allocated state funding,	14
including but not limited to discretionary funds, categorical funds, and	15
salary apportionment, in the manner it deems best serves its students and	16
schools.	17
(2) A school district shall have the option to participate in the flexi-	18
bility provided in this section if it:	19
(a) Meets the following academic benchmarks:	20
(i) The school district's composite proficiency rate on the Idaho	21
standards achievement test is in the top twenty percent (20%) of	22
school districts statewide or the school district exceeds the	23
state proficiency average by at least fifteen (15) percentage	24
points in both English language arts and math;	25
(ii) Seventy-five percent (75%) or more of the school district's	26
K-3 students score proficient on the spring administration of the	27
Idaho reading indicator or the school district demonstrates a fif-	28
teen percent (15%) reduction in students scoring below basic annu-	29
ally; and	30
(iii) The school district maintains an adjusted cohort graduation	31
rate that is three (3) percentage points higher than the state av-	32
erage or the percentage of graduates who earn a college and career	33
readiness indicator that includes career technical education com-	34
pletion, an associate's degree, qualifying advance placement, an	35
international baccalaureate, or a dual credit course is five (5)	36
percentage points higher than the state average;	37
(b) Provides the following evidence demonstrating financial stability	38
for each of the previous three (3) fiscal years:	39
(i) An unqualified audit opinion or a qualified opinion qualified	40
solely on the basis of not reporting the actuarial value of the	41
public employee retirement system of Idaho sick leave plan pur-	42

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suant to statement no. 45 of the governmental accounting stan-	1
dards board;	2
(ii) An audit devoid of significant findings and conditions, ma-	3
terial weaknesses, or significant internal control deficiencies;	4
and	5
(iii) An audit that does not include a going concern disclosure in	6
the notes or an explanatory paragraph within the audit report.	7
(3) Participating school districts shall be exempt from the reporting	8
requirements, including those established through rulemaking authority,	9
of sections 33-119, 33-135, 33-1002B, 33-1004E, 33-1028(1)(f) and (2),	10
33-1405, 33-1632, 33-1805, 33-1811, 33-2004, and 33-4805, Idaho Code, with-	11
out incurring a penalty or a reduction in funding.	12
(4) Participating school districts shall automatically maintain	13
spending flexibility from year to year, except that the state department of	14
education may revoke eligibility if:	15
(a) The school district fails to receive an annual unmodified audit	16
opinion or if the auditor's report on internal controls reports one (1)	17
or more material weaknesses or significant deficiencies; or	18
(b) The school district fails to satisfy the academic requirements set	19
forth in subsection (2) of this section for two (2) or more years.	20
(5) In 2029, the state board of education shall report to the legisla-	21
ture the number of participating school districts and changes, if any, in	22
student growth or proficiency on the Idaho standards achievement test. Ad-	23
ditionally, the report shall include information regarding whether any par-	24
ticipating school districts collected a levy, and any disclosures required	25
pursuant to section 33-802B, Idaho Code, shall be appended to the report.	26
SECTION 2. That Chapter 52, Title 33, Idaho Code, be, and the same is	27
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	28
ignated as Section 33-5207A, Idaho Code, and to read as follows:	29
33-5207A. PUBLIC CHARTER SCHOOL EARNED AUTONOMY. (1) Notwithstanding	30
any provision of law to the contrary, a public charter school that is not a	31
virtual school, as defined in section 33-5202A, Idaho Code, and that sat-	32
isfies the requirements set forth in section 33-5218(2)(b), (e), and (g),	33
Idaho Code, may spend its allocated state funding, including but not limited	34
to discretionary funds, categorical funds, and salary apportionment, in the	35
manner it deems best serves students and the public charter school. Partici-	36
pation shall not require a revision to the public charter school's charter or	37
performance certificate.	38
(2) Participating public charter schools shall be exempt from report-	39
ing requirements established in statute or through rulemaking authority	40
that are not federally mandated or required for public school finance	41
purposes. This exemption includes but is not limited to reporting require-	42
ments established pursuant to sections 33-119, 33-135, 33-1002B, 33-1004E,	43
33-1028(1)(f) and (2), 33-1405, 33-1632, 33-1805, 33-1811, 33-2004, and	44
33-4805, Idaho Code, without incurring a penalty or a reduction in funding.	45
(3) Participating public charter schools shall automatically maintain	46
spending flexibility from year to year, except that the state department of	47
education may revoke eligibility if:	48

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(a) The school fails to receive an annual unmodified audit opinion or if	1
the auditor's report on internal controls reports one (1) or more mate-	2
rial weaknesses or significant deficiencies;	3
(b) The school fails to satisfy the academic requirements set forth in	4
section 33-5218(2)(g), Idaho Code, for two (2) or more years; or	5
(c) The school's charter is subsequently revoked, not renewed, or re-	6
newed with conditions.	7
(4) In 2029, the state board of education shall report to the legisla-	8
ture the number of participating public charter schools and changes, if any,	9
in student growth or proficiency on the Idaho standards achievement test.	10
SECTION 3. An emergency existing therefor, which emergency is hereby	11
declared to exist, this act shall be in full force and effect on and after	12
July 1, 2026.	13

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