Idaho’s statewide virtual learning platform is bracing for a sharp drop in students next school year, with officials projecting a 23% decline in course enrollments following deep state budget reductions — a development that will be closely watched by North Idaho families and districts that have relied on the Idaho Digital Learning Alliance for remote coursework and dual credit options.
Budget Cuts Reshape Idaho Digital Learning Alliance
Idaho Digital Learning Alliance Superintendent Jeff Simmons presented the enrollment outlook to the State Board of Education at its Thursday, June 18 meeting held at Boise State University. The figures were stark: IDLA recorded 56,695 course enrollments during the last school year, but that number is expected to fall to roughly 43,500 in the coming year.
The driver behind the decline is a significant funding reduction enacted during the 2026 legislative session. Lawmakers cut $13.4 million from IDLA’s $26 million annual budget — slicing it by more than half. The cuts were supported by both Governor Brad Little and State Superintendent Debbie Critchfield.
To keep the organization operating through the transition, IDLA is drawing on $5.5 million from its reserve fund balance. Even with that cushion, the state appropriation will only support approximately 32,000 course enrollments — well below last year’s total.
The legislation driving the restructuring, House Bill 940, eliminated IDLA’s elementary program entirely and cut driver’s education courses. It also restricted so-called “custom sections” — courses built for specific district needs — to situations where a district cannot find a qualified in-person teacher. Additionally, the bill reduced state reimbursements for private school students and students enrolled full-time in virtual public schools.
As a direct result, IDLA laid off 27 elementary teachers.
Dual Credit Fees Hitting Summer Enrollment Hard
Beyond the budget cuts, IDLA is seeing a separate but related impact on its dual credit program. Summer school dual credit enrollment is down roughly 50% compared to the previous year, and Simmons pointed to newly introduced course fees as the likely cause.
Students are now charged between $40 and $100 per course depending on the type, a change that took effect this summer. “That’s the only change in our dual credit program from last summer to this summer, and so we do think that’s making an impact,” Simmons said.
Looking ahead, Simmons said the organization is refocusing its course offerings around what delivers the most academic value. “We’re narrowing our course catalog and really focusing the course offerings that we can provide … on courses that would be a graduation requirement or lead towards some type of certificate or degree,” he told the board.
For Kootenai County students and districts, IDLA has historically served as an important resource — providing access to advanced coursework, electives, and dual credit options that smaller or rural schools may struggle to staff on their own. The enrollment decline and tighter course catalog could limit those options for students in Coeur d’Alene, Post Falls, Rathdrum, and surrounding communities in North Idaho’s Panhandle region. The Idaho Parental Choice Tax Credit, which launched amid concerns about public school budgets, has already shifted some families’ thinking about educational alternatives — and further reductions to IDLA’s offerings may intensify that conversation locally.
State Board Also Approves Literacy Plan Updates
Separately, the State Board approved revisions to Idaho’s Comprehensive Literacy Plan at Thursday’s meeting. The plan is reviewed and updated on a five-year cycle.
The update came alongside encouraging data from several schools across the state. Three schools — Ponderosa Elementary, Ustick Elementary (both in the West Ada School District), and Fernan STEM Academy in Coeur d’Alene — each posted Idaho Reading Indicator score improvements between 31% and 38% during the 2024-25 school year. Fernan STEM Academy’s performance is a bright spot for Kootenai County, reflecting gains in early literacy that align with the goals of the updated statewide plan.
What Comes Next
IDLA will proceed into the next school year with a narrowed course catalog, reduced staffing, and a reserve fund helping to bridge the gap left by the budget cut. Whether the Legislature revisits funding levels in a future session remains to be seen. For now, districts across Idaho — including those in Kootenai County — will need to assess how the reduced virtual course offerings affect their students’ academic pathways, particularly for advanced, elective, and dual credit coursework. Families seeking more information about virtual learning options or school funding changes can follow updates through the Idaho State Board of Education.