POCATELLO — The Pocatello-Chubbuck School District 25 has reached a new agreement with its teachers union for the 2026-2027 school year, but district leaders are warning that the financial pressures bearing down on Idaho public education are far from over.

The Board of Trustees recently ratified the negotiated agreement between the district and the Pocatello Education Association, locking in terms for the coming school year even as the district navigates flat state funding, rising operational costs and gradual enrollment declines.

“Every decision we make begins with our learners and the people who serve them,” Superintendent Douglas Howell said. “We are proud to have reached an agreement that reflects our respect for our educators while also recognizing the financial realities facing public education in Idaho.”

District spokesperson Courtney Fisher said this year’s negotiations focused on two areas.

“First, the district and the Pocatello Education Association worked collaboratively to update and clarify language within the negotiated agreement to ensure consistency with House Bill 516, which goes into effect July 1,” Fisher said. “Second, because the district is not receiving any increase in state funding, the negotiated agreement does not include increases to the certified salary schedule beyond the movement already built into the career ladder. The district will continue honoring earned movement based on years of experience and education advancement.”

Fisher said the final negotiated agreement will be posted to the district website early next week.

Those financial realities are significant. Although K-12 education was protected from direct cuts in the state budget, funding is expected to remain largely flat next year — even as the cost of running schools continues to climb. Like families and businesses, school districts are paying more for insurance, utilities, fuel, supplies and services. Flat funding, district officials say, effectively means fewer dollars available for day-to-day operations.

The district is also feeling the effects of gradual enrollment shifts that mirror statewide and national demographic trends. Because most state funding is tied to enrollment numbers, falling student counts translate directly into tighter budgets.

District leaders say they have worked to absorb the financial pressure without gutting classrooms. Staffing adjustments have been made primarily through attrition and reassignment rather than layoffs, and the district plans to draw on financial reserves during the coming budget cycle to maintain stability.

“Our priority has been to absorb budget pressure in ways that minimize disruption to classrooms, learners and staff,” Howell said. “We have worked carefully to make adjustments gradually and responsibly while continuing to provide strong educational opportunities across our district.”

Officials are candid, however, that the district cannot manage its way out of a structural funding problem indefinitely.

“School districts across Idaho are being asked to do more with resources that are not keeping pace with rising costs,” Howell said. “We have been able to manage these challenges carefully, but these trends remain an ongoing concern for the future.”

That reality is already shaping the district’s next political priority.

District leaders say community support for a supplemental levy renewal — which will appear before voters in November — will be critical to maintaining staffing levels, classroom resources, safety measures and day-to-day operations.

The levy provides local funding that state dollars alone cannot cover. Without it, officials say, the district would face far more difficult choices.

“Our community’s support has allowed us to continue investing in learners while navigating difficult financial conditions responsibly,” Howell said. “We remain committed to transparency, fiscal stewardship and ensuring every learner continues to have access to the opportunities and support they deserve.”