Idaho Supreme Court Thwarts Legislature's Attempt to End School Funding Suit

In a decision issued August 25, 2004, the Idaho Supreme Court declared a law enacted to end Idaho's school funding lawsuit -- Idaho Schools for Equal Educational Opportunity (ISEEO) v. State -- unconstitutional, affirming a state district court decision.

The law, HB 403, required parents seeking safe school buildings to sue their local school district instead of the State, authorized the legislature to sue the ISEEO plaintiff school districts, and required Idaho Courts to order property tax increases in poor school districts if unsafe building conditions were found.

The supreme court held that HB 403 was a "special law" designed only to affect one particular lawsuit, in violation of the state constitution, and that it attempted

to end legislatively the ISEEO suit and effectively remove itself from any further responsibility or liability. Such a law is arbitrary, capricious, and unreasonable.

Moreover, the court found that HB 403 violated the fundamental principles of the separation of powers doctrine by assigning the power to tax to the judiciary, again violating the state constitution.

In 2001, after years of litigation over dilapidated and unsafe school buildings, the district court held that the state system for financing school facilities was unconstitutional, specifically because it relies exclusively on local property taxes for school construction and renovation even though many districts lack adequate funding capacity. In 2002, the court appointed a special master to assess run-down school buildings across the state. Instead of enacting a remedy to the ISEEO case, the legislature enacted HB 403 in 2003.

Next, the case will proceed on the state's challenge to the district court's appointment of a special master.

Prepared by Molly A. Hunter, August 30, 2004