Relates to the appropriation to the Public Schools Educational Support Program's Division of the Idaho Digital Learning Academy for fiscal year 2027.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1438 BY FINANCE COMMITTEE AN ACT1 RELATING TO THE APPROPRIATION TO THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT2 PROGRAM'S DIVISION OF THE IDAHO DIGITAL LEARNING ACADEMY; REDUCING3 THE APPROPRIATION TO THE PUBLIC SCHOOLS EDUCATIONAL SUPPORT PROGRAM'S4 DIVISION OF THE IDAHO DIGITAL LEARNING ACADEMY FOR FISCAL YEAR 2027;5 REDUCING THE TRANSFER FROM THE GENERAL FUND TO THE PUBLIC SCHOOL INCOME6 FUND; CLARIFYING THE ORIGINAL FUND SOURCE FOR EXPENDITURES IN THE PUB-7 LIC SCHOOLS EDUCATIONAL SUPPORT PROGRAM'S DIVISION OF THE IDAHO DIGITAL8 LEARNING ACADEMY FOR FISCAL YEAR 2027; RESTRICTING WITHDRAWALS FROM THE9 PUBLIC EDUCATION STABILIZATION FUND AND PROVIDING FOR REDUCED OFFER-10 INGS AS NECESSARY; REQUIRING A REPORT ON DEI COMPLIANCE; PROVIDING LEG-11 ISLATIVE INTENT ON THE IDAHO DIGITAL LEARNING ACADEMY FUNDING PROCESS12 AND REQUIRING A REPORT; PROVIDING FOR CONDITIONS, LIMITATIONS, AND RE-13 STRICTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.14

Be It Enacted by the Legislature of the State of Idaho:15

SECTION 1. Notwithstanding any other provision of law to the contrary,16 the appropriation made to the Public Schools Educational Support Pro-17 gram's Division of the Idaho Digital Learning Academy is hereby reduced by18 $13,500,000 from the Public School Income Fund for the period July 1, 2026,19 through June 30, 2027.20

SECTION 2. Notwithstanding any other provision of law to the contrary,21 the transfer made from the General Fund to the Public School Income Fund in22 Section 32 of Senate Bill No. 1362, if enacted by the Second Regular Session23 of the Sixty-eighth Idaho Legislature, is hereby reduced by $13,500,000 for24 the period July 1, 2026, through June 30, 2027.25

SECTION 3. Of the amounts reduced in Section 1 of this act for the Public26 Schools Educational Support Program's Division of the Idaho Digital Learn-27 ing Academy, $13,500,000 shall be reduced from the amounts considered ex-28 pended from the General Fund for the period July 1, 2026, through June 30,29 2027.30

SECTION 4. RESTRICTING WITHDRAWALS AND PROVIDING FOR REDUCED OFFER-31 INGS. Notwithstanding the provisions of Section 33-907, Idaho Code, and any32 other provision of law to the contrary, no moneys shall be withdrawn from the33 Public Education Stabilization Fund for the Idaho Digital Learning Academy34 for services provided during the period July 1, 2026, through June 30, 2027.35 The Idaho Digital Learning Academy shall rely on existing cash balances for36 any costs associated with eligible enrollments above the appropriation.37 Notwithstanding the provisions of Section 33-1020, Idaho Code, and any other38 provision of law to the contrary, the Idaho Digital Learning Academy shall39

2 reduce offerings and deny eligible enrollments as necessary to maintain a1 positive cash balance.2

SECTION 5. DEI COMPLIANCE. The Idaho Digital Learning Academy shall3 verify that no state-appropriated funds are used to support courses related4 to diversity, equity, inclusion, or social justice ideology that do not5 comply with the dignity and nondiscrimination standards stated in Section6 33-138, Idaho Code. The Idaho Digital Learning Academy shall submit a report7 to the Joint Finance-Appropriations Committee by December 1, 2026, to verify8 compliance. For any course found to be out of compliance, the report shall9 include details of all expenditures associated with that course. The format10 and content of the report will be determined in consultation with the Budget11 and Policy Analysis Division of the Legislative Services Office.12

SECTION 6. IDAHO DIGITAL LEARNING ACADEMY FUNDING PROCESS. The Leg-13 islature shall consider policies to verify funds provided by the state for14 match of individual student enrollment, which may include changing how the15 state, districts, charters, and public are billed for courses at the Idaho16 Digital Learning Academy (IDLA). To assist the Legislature, IDLA shall17 provide a report to the Budget and Policy Analysis Division of the Legisla-18 tive Services Office that details the information and cost relating to each19 available service, class, and course, how IDLA determined the budgeted20 amount for each service, class, or course, and a detailed report on budgeted21 and expenditure data for costs associated with operating IDLA. Information22 provided on services, classes, and courses shall include data on the split of23 synchronous and asynchronous offerings, enrollments by course, enrollments24 by grade level, number of and type of courses, the split of course enroll-25 ments by local education agency separated at the course level, and the number26 of graduation requirement courses versus elective courses with their re-27 lated enrollments, and other defining factors. The report shall be provided28 no later than August 1, 2026, based on data from the 2025-2026 school year.29 The format and content of the report will be determined in consultation with30 the Budget and Policy Analysis Division of the Legislative Services Office.31

SECTION 7. CONDITIONS, LIMITATIONS, AND RESTRICTIONS. Appropriations32 made pursuant to this act are subject to the conditions, limitations, and re-33 strictions specified in this act.34

SECTION 8. An emergency existing therefor, which emergency is hereby35 declared to exist, this act shall be in full force and effect on and after36 July 1, 2026.37