Dozens of school trustees gathered at the Idaho School Boards Association’s annual conference in Boise for an impromptu briefing by Idaho Department of Insurance Director Dean Cameron. The session focused on the collapse of the Idaho School Benefit Trust, which now carries a $13 million funding gap that more than 100 member districts and charter schools must repay.
What went wrong
Cameron said the trustees set insurance rates below the levels recommended by their own actuaries for two consecutive years, hoping a “wing and a prayer” would carry the program through the 2025‑26 benefit year. Instead, the trust became insolvent, and a district‑court judge removed authority from the five trustees, appointing Cameron as rehabilitator.
“The nightmare took place really over a couple‑year period of time,” Cameron told the audience. “The trust had assumed the risk, and the risk occurred.”
Key timeline
- January 2025 – Trustees voted to shift to a fully insured plan with Blue Cross of Idaho, which would assume risk if claims exceeded contributions.
- June 22, 2025 – The first board‑meeting minutes mention financial trouble.
- February 2025 – Audit showed $2.1 million in reserves, far short of the $13.4 million required by statute.
- September 24, 2025 – Judge Lynn Norton approved a petition of rehabilitation, granting Cameron full control of the trust’s assets.
Impact on districts
Districts have been forced to pay lump‑sum contributions in September to cover the shortfall. Superintendents and board members expressed frustration that they were not warned earlier. “We had no indication from the trust, the council, or our broker that there was even an issue coming forward,” said Jan Bayer, superintendent of Boundary County School District.
Luke Schroeder, superintendent of Kimberly School District and board member of the Idaho School District Council, added that many discussions were held behind closed doors, leaving members without clear answers.
Department response
Cameron acknowledged that the department could have acted more aggressively when the 2025 audit revealed the deficit. “In hindsight, we should have taken decisive action at that point,” he said.
He also emphasized that the trust’s members share responsibility for asking questions. “Good questions should have been asked by the trustees, by the Idaho School District Council, by the superintendents, by the HR professionals in districts,” Cameron told the crowd.
Next steps
The department’s investigation is slated to conclude this month. Cameron indicated that the rehabilitation process will involve restructuring the trust’s finances and ensuring compliance with statutory funding requirements.
Stakeholders are awaiting further details on how the trust will be stabilized and what additional contributions may be required from participating districts.
Original reporting: Idaho Education News — read the source article.
