KELLOGG -- A misunderstanding of Idaho code prompted the Kellogg School District to reapprove its resolution for an upcoming replacement supplemental levy election, district officials said.
The school board had previously approved a resolution seeking a two‑year, $7 million ($3.5 per year) replacement levy. Under state law, however, districts are required to include the most current levy conditions actually experienced by taxpayers, not just the ballot language voters approved in the previous election.
As a result, on Wednesday afternoon, the board reapproved the resolution to reflect current conditions, showing an increase in the levy rate from $145.97 per $100,000 of assessed taxable property value to a proposed estimate of $238.58 per $100,000.
District officials initially believed the earlier resolution accurately reflected what voters approved in 2023 -- a two‑year levy of $2.96 million per year for the 2024‑25 and 2025‑26 school years, estimated at $217.37 per $100,000.
While voters did approve that amount, changes in funding and tax conditions altered what taxpayers ultimately paid.
In 2024, the Legislature passed House Bill 292, creating the Idaho School District Facilities Fund, or ISDFF. The fund distributes state dollars to school districts and must be used in a specific order: to pay existing bonds first, then reduce supplemental levies, and, if no levy exists, support facility maintenance and improvements.
During the 2024‑25 school year, the district received ISDFF funds and applied $1 million toward its bond on the Kellogg Middle School building. After Shoshone County finalized its tax rates, Kellogg School District taxpayers paid $197.83 per $100,000 for the levy and $43.97 toward the remaining bond -- a combined district total of $241.80 per $100,000.
The following year, the district used $141,729 of its $936,838 ISDFF allocation to retire the rest of the bond, applying the remaining funds to the levy. That reduced the levy rate taxpayers actually paid to $145.97 per $100,000.
That figure -- not the original $217.37 estimate -- represents the district's current levy conditions, which state law requires to be included in the new resolution.
Because the proposed replacement levy would carry an estimated rate of $238.58 per $100,000, the comparison makes it appear as though the district is asking voters to approve a tax increase of nearly $100 per $100,000. District officials say that is not the case.
According to district treasurer Danielle Estill, Kellogg's estimated ISDFF allocation for the upcoming year is expected to be at least $650,000, which would be deducted from the levy after voter approval.
"The $238 is the worst‑case scenario," Estill said. "Think of the levy rate as the purchase price voters are agreeing to, and the House Bill 292 money as a coupon. But we're required to calculate the estimate using current conditions."
State law prohibits districts from referencing or guaranteeing future ISDFF amounts on the ballot because allocations fluctuate annually. Despite this, there is nothing at the state level that should have districts or voters concerned about the fund's longevity.
During the 2026 legislative session, lawmakers passed House Bill 636, which amended and clarified administrative provisions tied to the ISDFF. The bill did not reduce or eliminate the fund; instead, it reaffirmed the state's long‑term commitment to using sales tax revenue to offset school facility costs and reduce reliance on local property taxes.
Superintendent Lance Pearson said that even with the proposed levy increase, the district will still need to make budget adjustments as inflation and mandated education costs continue to outpace available funding.
Pearson also said future adjustments to Shoshone County's tax rates combined with ISDFF funds could further reduce the levy rate paid by taxpayers.
He noted the district has steadily lowered the burden on local property owners over time. Historical data show that voters previously approved smaller levies with significantly higher tax rates, including a two‑year, $5.4 million levy in 2017 that carried an estimated rate of $403 per $100,000 and a $5.8 million levy in 2019 at $449 per $100,000.
Since 2019, Pearson said, the district has only moderately increased levy amounts over the years while consistently reducing rates.
"We are being good stewards with voter money," Pearson said.