LJSD Financial Facts

The Finance team continues to work through the budget process for the next school year. We are required to have our budget information posted to the public at least two weeks ahead of the June 11, 2025, budget hearing. This year, the budget process is a little more challenging as we need to build two separate budgets, dependent on the outcome of the upcoming supplemental levy vote on the May 20th ballot.

Our team is also working to wrap up the end of the current school year. We are working with schools to ensure all of their purchases benefit the students in the buildings currently, and that all materials and supplies are received before we end the school year. This helps us close out spending at the end of June, when we begin our audit work.

Idaho Code 33-701 requires a "full and complete audit of financial statements". The district contracts an independent third-party auditor to conduct this review. The independent auditor issues their audit opinion, and the district is required to report to the state no later than November 10th of each year to receive a large portion of our state funding. The district has a long history of maintaining a clean audit opinion with no findings for the financial statements.

The purpose of the audit is to determine whether:

• Financial operations are conducted properly.
• Financial statements are presented fairly.
• Compliance exists with laws and regulations affecting the expenditure of special revenue funds.
• Internal controls have been established to meet the objectives of federal, state, and local regulations.
• and accurate and reliable information is being provided to the public and government agencies.

If all of the above conditions are met, the independent auditor issues a "clean" opinion. We include our annual fiscal audit on our Financial Transparency website.

The 300-series funds are classified as "Debt Service Funds". This fund is used to account for the accumulation of resources for and the payment of general long-term debt principal and interest. Essentially, if the District had an approved "General Obligation Bond" on the books, the revenue collected from the levy would be accounted for in this fund. In turn, any payments on principal and interest related to that bond debt would be expensed from these funds.

Lakeland Joint School District was able to pay off its last general obligation bond in August of 2025, almost a year early. This allowed the District to realize savings, as interest was not compounding on the final principal payment. The District owns all of its buildings outright, with the payoff of our most recent bond. We do not have any debt, therefore, there is no general obligation bond on your property tax bill related to Lakeland Joint School District.

You may have heard about the funding coming to Idaho School Districts to assist with building improvements, renovations, remodels, or construction. Lakeland Joint School District is a recipient of these funds.

House Bill 521, passed by the Idaho legislature in 2024, allowed the state to bond for approximately $1 billion in facility funding to be distributed to school districts based on Average Daily Attendance (ADA). State sales tax revenue has been allocated to repay the bond over the next ten years. To receive funding, school districts had to conduct facility condition assessments and submit a board-approved 10-year facility needs plan to the state. These funds must be used on capital improvements that last more than 7 years, and bring the building rating up to "good" or "perfect".

Lakeland Joint School District has received $19,814,230.23 in School Modernization Facilities Funds. These funds are accounted for in Fund 436, outside of the district's general fund. The district recently selected Architects West to assist in the scope and bidding of the identified projects to be completed with these funds. Please watch the district website and social media platforms for updates on the work completed with these funds.

We welcome any questions you may have regarding District finances. Please use this link to submit your questions for future newsletters.

Thank you for the questions submitted so far. Questions about board decisions will need to be addressed by the Board of Trustees or the Superintendent. Due to legal restrictions and confidentiality laws, questions concerning specific personnel will not be answered.

• How are General Obligation Bonds different than Supplemental Levies like the District has on the May 20th ballot?
• This is a great question! Bonds = new building/capital improvements. Levies = learning. Let's review the differences:
• General Obligation Bonds
• These are like IOUs that financial institutions sell, and the proceeds go back to the school district. If voters approve a bond, an increase in their property taxes helps pay off the principal and interest of the loan.
• School Districts typically ask for general obligation bonds to pay for major capital improvements, like building a new school or renovating/remodeling an old building.
• General obligation bonds require a 2/3 supermajority vote, needing 66.67% approval to pass.
• The terms of the bond are on the ballot for voter approval. This includes the length of the bond and the anticipated levy rate associated with the bond.
• Levies
• Levies are a property tax that are meant to pay for specific district needs. There are several different types of levies.
• Maintenance & Operation (Supplemental) Levies: can pay for a wide variety of expenses, including salaries, materials, books, extracurricular activities, etc.
• This levy is presented on the ballot and requires a simple majority of 50% plus one vote to pass.
• Lakeland Joint School District has an existing $9.52 million supplemental levy that will expire on June 30, 2025. The supplemental levy on the May 20, 2025, ballot would replace the expiring levy, at a lower amount of $ 7.52 million.
• Plant Facilities Levies: pay for updates and repairs like remodels, fixing bathrooms, adding a new boiler, purchasing a vehicle or bus, or other facility needs. These repairs and updates must last more than a year to be considered an approved expense with these levied funds.
• Depending on the amount requested, the percentage needed to pass could range from 55% to 66.67% for approval.
• The Lakeland Joint School District has an existing Plant Facilities Levy that will expire on June 30, 2025. To view the details on how the two-year levy was spent, please review the Board Approved Projects document on the District website, located on the Community Page.
• Emergency Levies: pay for the cost of students who increase a district's enrollment numbers from the previous year. For example, if a district has 35 more students than it did the previous year, this levy will help pay for those students.
• Lakeland Joint School District has a history of not requesting emergency levies to help pay for additional students.
• Tort Levies: help pay for a school's liability insurance.
• Judgement Levies: pay for litigation costs when a district is sued.
• COSSA Levies & Tuition Levies: These levies are available for COSSA services in small districts or to help pay tuition for students who must attend school in a district other than their own because the services are not offered. Lakeland Joint School District is not eligible for either of these types of levies.
• Emergency levies, tuition levies, judgment levies, and tort levies do not have to go before voters.

Contact: jessica.grantham@lakeland272.org