Lake Pend Oreille School District chief financial and operations officer Brian Wallace told school board trustees Tuesday that while federal education funds are up in the air, he’s preparing a 2025-2026 budget that will resemble those of recent years. 

“It’s sort of status quo,” Wallace said. “We're not going to get a lot of new revenues from the state and we’re not having an increased levy.” 

Idaho lawmakers wrapped up their legislative session in Boise on Friday; Wallace reported that the state’s strategy for funding public schools will remain mostly unchanged. 

Idaho will continue apportioning funds based on average daily attendance. Since Wallace doesn’t anticipate a significant difference in enrollment next year, he’s expecting a similar amount of money from the state.

Wallace also noted that the state funding formula for certified staff like teachers and counselors received a 5% increase to its career ladder steps, which compensate educators based on performance and experience. The base pay rates for classified staff and administrators also rose 5%, 

In the upcoming year, districts will receive an 8.7% increase in medical discretionary funding to help cover an anticipated rise in health insurance premiums, which Wallace said he expects to go up 8.5-9.5%. For the general discretionary fund, the state isn’t giving the bump it has usually provided in recent years, and the total is remaining flat. 

“It's the first time in 10 years that hasn’t happened,” Wallace said of the customary increases. “This is a pretty thin year, as far as that type of funding.” 

When it comes to federal funding, Wallace told trustees he’s building a budget that tentatively anticipates a typical amount of money amid sweeping changes to the U.S. Department of Education and the federal government’s funding practices. 

The U.S. government has provided LPOSD with money to support special education programs and Title I schools with low-income students in the past, but the amount the district will receive for the programs next year is currently unclear. 

Wallace told trustees he would adapt the budget as a federal outlook emerges: “We'll adjust accordingly,” he said. 

With few increases in the district’s revenue sources, Wallace said that LPOSD’s focus for the upcoming year is on maintaining services rather than expanding them. The district will continue funding staff development opportunities and will maintain its schedule to replace student laptops that have reached the end of their lifespan. 

LPOSD will also move forward on a pair of facilities improvement projects approved in 2024 that will create a career technical education center on the grounds of Sandpoint High School and modernize Sandpoint Middle School’s critical infrastructure. 

The technical education project will be funded by a $3.5 million state grant awarded to the district in August 2024. The middle school renovation is estimated to cost $18.2 million and will be supported by LPOSD’s share of a 2024 $1.5 billion state funding package for school infrastructure. 

Wallace reported that due to higher-than-expected bond sale revenue, the funding package received a $86.5 million boost that will be split up and distributed to the state’s schools. 

Based on attendance numbers, LPOSD should receive about $950,000 that will provide additional flexibility for the project. 

With elements of LPOSD’s 2025-2026 budget contingent on pending federal decisions, Wallace told trustees that the district's overall spending has been fairly even in recent years, and that LPOSD can weather an unexpected issue or loss of funding. 

“With the good financial condition of the district, we are able to make adjustments if needed, and absorb some bad news,” he said. 

District staff will continue developing a financial plan throughout April. Wallace will show trustees a draft budget at their May board meeting, and the board will vote whether to adopt it in a June hearing.