SANDPOINT — The Lake Pend Oreille school district will pay a $661,000 lump sum contribution toward the Idaho School Benefit Trust's $13 million shortfall. 

The self-funding trust contracts with Blue Cross of Idaho and relies on participating groups to provide health, dental and vision benefit plans for Idaho's public-school employees and their dependents, according to the trust's website. 

However, more than 24,000 participants were at risk of unpaid medical claims after the Idaho Department of Insurance disclosed that the trust announced it was unable to pay the claims promised to member district employees for the 2025–26 plan year. 

As of July 2026, there are 108 school districts across the state participating in the trust, including Lake Pend Oreille and the West Bonner County school districts. 

Consequently, both districts share a responsibility in paying a portion of the shortfall to combat significant loss in funding. 

The trust gave participating members until Sept. 10 to either pay their share through a lump sum or monthly installments, otherwise they will be considered delinquent, and employee medical claims will go unpaid, according to the DOI. 

During a Sept. 8 school board meeting, LPOSD Chief Financial and Operations Officer Brian Wallace advised board members to pay the amount via lump sum rather than monthly payments. 

"Financing the amount through monthly payments would include interest and bring the district’s total cost to approximately $723,000," Wallace told trustees. 

LPOSD used available contingency funds to cover the cost, ensuring employees’ medical claims can continue to be paid, said Wallace. 

The trust's depleted assets come after its fund balance fell from $22.5 million in August 2021 to $2.1 million in August 2025, according to Idaho Education News. 

In February 2025, the DOI and the trust attempted to remedy deficiencies after the trust's remaining funds no longer met the legal requirements to operate. 

Six months later, the trust notified member school districts, informing that they were responsible for replenishing the shortfall, according to an Idaho Education News timeline of the DOI's 14-page court filing. 

Districts have since spoken out about the unforeseen decision, sending letters to the Blue Cross of Idaho and Gov. Bradd little that questioned the trust's integrity, according to Idaho Education News. 

The Fourth District Court has shifted the trust's control to Idaho DOI Director Dean Cameron, who was appointed as the rehabilitator of the depleted funds.