First round of OSD vs. State lawsuit a mixed result

The Oneida School District #351 has a glimmer of hope in its lawsuit against the Idaho State Department of Education and the State of Idaho.
The headline in Idaho Education News -- “Judge rejects $7.7 million Oneida appeal for state money” – oversimplifies the judge’s action. Idaho Education News goes on to state that “The Oneida School District suffered an 11th-hour loss in court late Thursday afternoon, as an Ada County judge rejected an appeal to set aside $7.7 million in state money.” While that statement is true, it does not fully reflect the judge’s decision, which leaves Oneida School District with some options.
The case was heard on Thursday, August 29, 2024, in the Idaho 4th District Court in Ada County before Judge Jason Scott.
Oneida School District sought an injunction to require the Department of Education to set aside the disputed $7.7 million that the District claims it should receive from the former Bond Levy Equalization Support Program. The District wanted the State to keep the $7.7 million back from the $203 million allocated in H.B. 521 until the lawsuit is settled. H.B. 521 supersedes the Bond Levy Equalization Support Program and provides funds to offset bonds and levies. The urgency to have the lawsuit heard was because the State Department of Education was required by law to divide up the $203 million among Idaho’s 113 (all but Oneida) school districts on Friday, August 30, to meet the August 31 deadline. All school districts but Oneida will receive a share of the $203 million.
Attorneys from State Attorney General Raul Labrador’s Office represented the State and asked for dismissal of the suit, claiming it is premature.
However, Judge Scott was willing to hear the claims by Oneida School District, which was represented by attorneys from Hawley Troxell Ennis and Hawley of Boise.
The issue is not dead as the judge said he is unlikely to dismiss Oneida School District’s case entirely. Judge Scott encouraged the School District to attempt to negotiate a settlement as he thought Oneida School District could be entitled to half of the $7.7 million. Although the District may be able to claim at least half of the disputed funds, once the funds are distributed among the other school districts on August 30, it would take legislative action to get any funds for Oneida School District. The lawsuit is not over; another court date is set for September 5.
According to Jon Abrams, Superintendent of Oneida School District, who was present during the proceedings, Judge Scott encouraged the School District to continue to pursue the lawsuit as he thought half of the $7.7 million (the part that is being taken away retroactively) should be allocated to the District.
Also in attendance in court were Oneida School Board members Brent Evanson, Brandon Ward, and Shane Howard as well as District Office staff members Brandi Warren and Kelsie Daniels. Darlene Abrams and Rhett Daniels accompanied their spouses.