The Idaho School Bond Guaranty Act was created for the purpose of establishing a default avoidance program for voter-approved school bonds issued by Idaho public school districts.

In 2009 the Idaho legislature modified the program to allow two tiers of enhancement which include (1) enhancement by the State, and (2) enhancement by the State and Endowment Fund Investment Board (EFIB). Each option provides a different credit enhanced rating to the issuer of the bonds. The State enhancement will provide an Aa rating while the additional enhancement by the EFIB provides a credit rating of Aaa. The enhancement provided by the EFIB has been capped at $20 million per district. Once this cap is reached, the district may only utilize the State enhanced option which currently is not capped.

Application Process

• The School District completes and submits the documents listed below to the Idaho State Treasurer’s Office (STO).
  •  Idaho School Bond Guaranty Request Letter
  •  Idaho School Bond Guaranty Application
  
  
• The application will be reviewed by the STO, the EFIB, and the Department of Education (DOE). If approved, the school district will receive a Certificate of Eligibility from the STO and, if applicable, the EFIB.

Additional Information

• Idaho Statute - Idaho School Bond Guaranty Act
  
  
• Credit Enhancement Program for School District Bonds
  
  
•  Idaho School Bond Guaranty Program Activity
  
  
• FAQs
  • Who is elgible to participate?
    • Any Idaho public school district. Charter schools and private schools are not eligible.
    
    
  • How much has been made available to Idaho public school districts for guaranty?
    • The amount of guaranty backed by the state is currently unlimited. The Treasurer may suspend the program if he/she determines that further guaranties would compromise the state’s credit rating. Under the Credit Enhancement Program for School Bonds backed by the Public School Endowment Fund, outstanding principal of no more than $800,000,000 can be guaranteed.
    
    
  • How much is currently available for guaranty under the Credit Enhancement Program?
    • The amount available changes each month as principal of previously guaranteed bonds is paid, offset by any new guaranties issued. As of June 30, 2009, approximately $182.4 million of capacity was available.
    
    
  • How much is available for guaranty per school district?
    • There is currently no limit per district for the guaranty backed by the state. Participation in the Credit Enhancement Program, backed by the Public School Endowment Fund, is limited to twenty million dollars in the aggregate per school district, with the exception that any guaranties exceeding the twenty million dollar limit prior to July 1, 2007 remain in effect. In the event school districts consolidate, the maximum Credit Enhancement guaranty of the newly consolidated school district shall be the sum of the maximum limit of each school district participating in the consolidation. This new maximum limit shall also apply to bonds issued by the consolidated district after July 1, 2007.
    
    
  • What is the application process?
    • The school district's Superintendent or Board of Trustees member must complete the formal letter of request and application and submit them, along with any required application fees and three years of audited financial statements to the Idaho State Treasurer's Office.
    • After the Idaho State Treasurer's Office receives and processes the required documents, they are forwarded to the Department of Education and, if applicable, the Endowment Fund Investment Board.
    • Upon review of the submitted documents, the Department of Education determines the eligibility of the school district for the state guaranty according to the guidelines of the program.
    • After approval is received from the Department of Education the Idaho State Treasurer's Office will review and determine if a Certificate of Eligibility to the school district will be issued.
    • For the Credit Enhancement Program, the Endowment Fund Investment Board will review the application and determine whether the guaranty would be a prudent investment and, if so, issue a Certificate of Approval. No Certificate of Approval will be issued unless the Treasurer issues a Certificate of Eligibility for the state guaranty.
    
    
  • What documents are needed for the application process?
    • Formal letter of request
    • Application
    • Three years of audited financial statements
  
  
• Submit Idaho School Bond Guaranty Comments or Questions