Lewiston Independent School District’s business manager, Leann Hubbard, warned that the district now faces an unexpected, unbudgeted obligation of more than $1 million. The amount represents Lewiston’s share of a $13 million shortfall in the Idaho School Benefit Trust (ISBT), which provides health‑insurance coverage for teachers and staff across the state.
How the shortfall impacts local budgets
Like every Idaho district, Lewison’s operating budget was already set for the 2025‑26 school year. Employee premiums have been locked in, and the district had not planned for any additional expense. Beginning next month, however, the district will start making monthly payments to the trust until its portion of the deficit is satisfied. Hubbard said the money will have to be drawn from the district’s fund balance, a reserve normally used for emergencies or capital projects.
District leaders emphasized that they do not intend to cut any programs. Instead, they will monitor spending closely and seek cost‑saving measures throughout the year to protect classroom instruction and extracurricular activities.
What caused the trust’s depletion?
In mid‑July, ISBT benefit manager Debbie Hainke notified the 108 member employers—mostly public school districts and charter schools—that the trust had exhausted its reserves after paying “extremely high” claims. An additional $13 million is now needed to cover claims for the 2025‑26 benefit year, and members must choose a payment option by Sept. 10: a lump‑sum payment or a first monthly payment by Sept. 30.
The trust provided two payment calculations. A lump‑sum option would cost $714 per employee and dependent, while a monthly plan would be $22 per employee and dependent, likely extending over several years.
District responses vary
Orofino School District opted for the lump‑sum payment, estimating a cost of $280,000‑$300,000. Superintendent Jason Hunter said the district’s strong financial management allowed it to draw the amount from a proprietary insurance fund built up through a deductible‑buy‑down program. He stressed that the payment will not negatively affect students or programs.
Grace School District’s superintendent, Jason Moss, estimated a lump‑sum obligation of $74,330 and a monthly payment of about $2,260. Moss wrote that the district would likely choose the monthly option after discussing the issue with its insurance broker. He expressed frustration that the shortfall was not communicated earlier.
Horseshoe Bend Superintendent Dennis Chesnut called the situation “fluid,” noting that the district’s budget was already set when the news arrived. He said more answers are needed before the district can commit funds to the trust.
Some districts are not liable for the medical shortfall
Three districts—Hansen, Blaine and Bonneville—have left the medical portion of the trust and now participate only in dental and vision coverage. Their superintendents confirmed they owe nothing for the medical shortfall.
Public tax documents show the trust’s fund balance fell from $22.5 million in August 2021 to $2.1 million in August 2025 after a $9 million loss in a single year.
Looking ahead
The Idaho Department of Insurance is reviewing the membership list and the circumstances that led to the depletion of reserves. Julie Robinson, a public‑information specialist, said the department is examining the records and suggested EdNews request confirmation from Hainke.
As the new school year begins, district leaders across Idaho continue to assess how best to meet their financial obligations without compromising educational quality.
Original reporting: Idaho Education News — read the source article.
