Relates to the appropriation to the Public Schools Educational Support Program's Division of Student Support for fiscal years 2026 and 2027.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1444 BY FINANCE COMMITTEE AN ACT1 RELATING TO THE APPROPRIATION TO THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT2 PROGRAM; APPROPRIATING ADDITIONAL MONEYS TO THE PUBLIC SCHOOLS ED-3 UCATIONAL SUPPORT PROGRAM'S DIVISION OF STUDENT SUPPORT FOR FISCAL4 YEAR 2027; CLARIFYING THE ORIGINAL FUND SOURCE FOR ADDITIONAL EXPEN-5 DITURES FOR THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT PROGRAM'S DIVISION6 OF STUDENT SUPPORT FOR FISCAL YEAR 2027; REDUCING THE APPROPRIATION TO7 THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT PROGRAM'S DIVISION OF STUDENT8 SUPPORT FOR FISCAL YEAR 2027; REDUCING THE TRANSFER FROM THE GENERAL9 FUND TO THE PUBLIC SCHOOL INCOME FUND; CLARIFYING THE ORIGINAL FUND10 SOURCE FOR REDUCED EXPENDITURES FOR THE PUBLIC SCHOOLS EDUCATIONAL11 SUPPORT PROGRAM'S DIVISION OF STUDENT SUPPORT FOR FISCAL YEAR 2027;12 REDUCING THE PER-SUPPORT UNIT DISCRETIONARY DISTRIBUTION FOR FULLY13 VIRTUAL SCHOOLS FOR FISCAL YEAR 2027; REDUCING TRANSPORTATION REIM-14 BURSEMENTS FOR FISCAL YEAR 2027; PROVIDING FOR REPORTING ON VIRTUAL15 ENROLLMENTS AND ATTENDANCE; PROVIDING FOR THE TRANSFER AND ALTERNA-16 TIVE DISTRIBUTION OF ENGLISH LANGUAGE LEARNER FUNDS; AMENDING SECTION17 27, AS ADDED BY SENATE BILL NO. 1362, IF ENACTED BY THE SECOND REGULAR18 SESSION OF THE SIXTY-EIGHTH IDAHO LEGISLATURE, TO REVISE TECHNOLOGY19 CURRICULUM REQUIREMENTS; PROVIDING FOR A REPORT ON SPECIAL EDUCATION20 REVENUES AND EXPENDITURES; PROVIDING FOR CONDITIONS, LIMITATIONS, AND21 RESTRICTIONS; APPROPRIATING ADDITIONAL MONEYS TO THE PUBLIC SCHOOLS22 EDUCATIONAL SUPPORT PROGRAM'S DIVISION OF STUDENT SUPPORT FOR FISCAL23 YEAR 2026; CLARIFYING THE ORIGINAL FUND SOURCE FOR ADDITIONAL EXPEN-24 DITURES FOR THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT PROGRAM'S DIVISION25 OF STUDENT SUPPORT FOR FISCAL YEAR 2026; AND DECLARING AN EMERGENCY AND26 PROVIDING EFFECTIVE DATES.27

Be It Enacted by the Legislature of the State of Idaho:28

SECTION 1. In addition to any other appropriation provided by law,29 there is hereby appropriated to the Public Schools Educational Support30 Program's Division of Student Support the following amounts to be expended31 according to the designated programs from the listed funds for the period32 July 1, 2026, through June 30, 2027:33 I. OPERATIONS DIVISION:34 FROM:35 Public School Income Fund36 $4,141,200

2 II. CHILDREN'S PROGRAMS DIVISION:1 FROM:2 Federal Grant Fund3 7,800,000 TOTAL4 $11,941,200

SECTION 2. Of the additional amounts appropriated in Section 1 of this5 act for the Public Schools Educational Support Program's Division of Student6 Support, the following amounts shall be considered expended from the listed7 funds for the period July 1, 2026, through June 30, 2027:8 FROM:9 Public School Endowment Income Fund10 $4,141,200 Federal Grant Fund11 7,800,000 TOTAL12 $11,941,200

SECTION 3. Notwithstanding any other provision of law to the contrary,13 the appropriation made to the Public Schools Educational Support Program's14 Division of Student Support is hereby reduced by the following amounts from15 the designated programs from the Public School Income Fund for the period16 July 1, 2026, through June 30, 2027:17 FROM:18 Administrators Division19 $1,767,300 Operations Division20 7,141,200 Children's Programs Division21 843,100 TOTAL22 $9,751,600

SECTION 4. Notwithstanding any other provision of law to the contrary,23 the transfer made from the General Fund to the Public School Income Fund in24 Section 32 of Senate Bill No. 1362, if enacted by the Second Regular Session25 of the Sixty-eighth Idaho Legislature, is hereby reduced by $9,751,600 for26 the period July 1, 2026, through June 30, 2027.27

SECTION 5. Of the amounts reduced in Section 3 of this act from the28 Public Schools Educational Support Program's Division of Student Support,29 $9,751,600 shall be reduced from the amounts considered expended from the30 General Fund for the period July 1, 2026, through June 30, 2027.31

SECTION 6. VIRTUAL SCHOOL BUDGET REDUCTION. Notwithstanding Section 1032 of Senate Bill No. 1362, if enacted by the Second Regular Session of the33 Sixty-eighth Idaho Legislature, for the period July 1, 2026, through June34 30, 2027, the distribution factor for discretionary funds for fully virtual35 schools shall be $19,723 per support unit.36

SECTION 7. TRANSPORTATION FUNDING. Notwithstanding Section 33-1006,37 Idaho Code, and any other law to the contrary, for the period July 1, 2026,38 through June 30, 2027, the total moneys paid to school districts and charter39 schools for eligible transportation costs shall be reduced by $7,500,000.40

3 The State Department of Education shall adjust the distribution proportion-1 ately across all eligible schools.2

SECTION 8. VIRTUAL ENROLLMENT AND ATTENDANCE REQUIREMENTS. School dis-3 tricts and public charter schools not authorized as a public virtual school4 that provide instruction to students through an online platform for any5 class, excluding those offered through the Idaho Digital Learning Academy,6 shall report to the State Department of Education and the Office of the State7 Board of Education which classes are online-based and the number of stu-8 dents enrolled in and attendance of students for each online class. School9 districts and public charter schools that offer classes through an online10 option must register those programs as virtual buildings in the Idaho System11 for Education Excellence longitudinal data system and record the students in12 those buildings accordingly.13

SECTION 9. ENGLISH LANGUAGE LEARNER DISTRIBUTIONS. For the period July14 1, 2026, through June 30, 2027, only, of the moneys appropriated in Section15 5 of Senate Bill No. 1362, if enacted by the Second Regular Session of the16 Sixty-eighth Idaho Legislature, and set to be distributed pursuant to Sec-17 tion 26 of Senate Bill No. 1362, if enacted by the Second Regular Session of18 the Sixty-eighth Idaho Legislature, $2,250,000 shall instead be transferred19 one time from the Central Services Division to the Children's Programs Di-20 vision by the State Department of Education and distributed pursuant to the21 requirements in Section 17 of Senate Bill No. 1362, if enacted by the Second22 Regular Session of the Sixty-eighth Idaho Legislature.23

SECTION 10. That Section 27 as added by Senate Bill No. 1362, if enacted24 by the Second Regular Session of the Sixty-eighth Idaho Legislature, be, and25 the same is hereby amended to read as follows:26

SECTION 27. CONTENT AND CURRICULUM -- TECHNOLOGY. Of the mon-27 eys appropriated in Section 5 of this act, an amount not to exceed28 $1,570,000 from the Public School Income Fund may be expended by the29 State Department of Education to contract for services that pro-30 vide technology education opportunities and/or information tech-31 nology certifications to students, including faculty that prepare32 students for college, career, or the workplace. Funding shall be33 awarded for projects that include three two or more of the following34 components:35 (1) Certification of skills and competencies;36 (2) Professional development for teachers;37 (3) Integration with curriculum standards;38 (4) Online access to research-based content and curriculum; or39 (5) Instructional software for classroom use.40 The State Department of Education shall provide a report to the41 Joint Finance-Appropriations Committee, the Senate Education Com-42 mittee, and the House Education Committee by January 5, 2027, re-43 garding the number and type of certificates earned by students and44 faculty.45

4

SECTION 11. SPECIAL EDUCATION DATA. The State Department of Education1 shall compile and report aggregate information regarding special educa-2 tion expenditures and Medicaid reimbursements for local education agencies3 (LEAs)in Idaho. The report shall include, to the extent practicable un-4 der federal guidelines and using existing data sources, the total special5 education expenditures and revenues reported by LEAs, including state, lo-6 cal, and federal funds, and the total Medicaid reimbursements received by7 LEAs for special education services. To the extent practicable using ex-8 isting data sources, the State Department of Education shall consult with9 the Legislative Services Office Budget and Policy Analysis Division on ad-10 ditional information to include in the report to best support legislative11 decision-making. The department shall submit the report to the Joint Fi-12 nance-Appropriations Committee and the Legislative Services Office Budget13 and Policy Analysis Division no later than December 15, 2026.14

SECTION 12. CONDITIONS, LIMITATIONS, AND RESTRICTIONS. Appropriations15 made pursuant to this act are subject to the conditions, limitations, and re-16 strictions specified in this act.17

SECTION 13. In addition to the appropriation made in Section 2, Chap-18 ter 43, Laws of 2025, and any other appropriation provided by law, there is19 hereby appropriated to the Public Schools Educational Support Program's Di-20 vision of Student Support $7,800,000 from the Federal Grant Fund to be ex-21 pended for the period July 1, 2025, through June 30, 2026.22

SECTION 14. Of the additional amounts appropriated in Section 13 of23 this act for the Public Schools Educational Support Program's Division of24 Student Support, $7,800,000 shall be considered expended from the Federal25 Grant Fund for the period July 1, 2025, through June 30, 2026.26

SECTION 15. An emergency existing therefor, which emergency is hereby27 declared to exist, Sections 13 and 14 of this act shall be in full force and28 effect on and after passage and approval, and Sections 1 through 12 of this29 act shall be in full force and effect on and after July 1, 2026.30