West Bonner School District, which serves just under 1,000 students in Priest River and surrounding areas, is projecting a largely unchanged budget for the coming fiscal year — even as a backlog of overdue audits continues to delay state funding and the district braces for potential staffing cuts in future years.
Audit Delays Pile Up, State Payments Withheld
The district has faced significant financial turbulence in recent years. The Idaho Department of Education began withholding annual payments to West Bonner in November 2023, a pattern that has repeated each year since. The district received full payment in February 2024 after the first withholding, but only recovered 90 percent of the following year’s withheld amount by February 2025. As of the current year, a full payment withheld in November 2025 remains outstanding. In total, the state has held back approximately $1.85 million from the district across those cycles.
The root cause is an audit backlog that has stretched across multiple fiscal years. The 2024 audit is expected to be completed by the end of June, after which work will begin on the 2025 fiscal year audit. The 2026 audit, however, will not meet the state’s November 10 deadline — meaning West Bonner is likely to face another withheld payment this coming fall.
Superintendent Kim Spacek acknowledged a missed opportunity in navigating the funding crunch. “The district did not apply for a hardship exemption this year because they didn’t know it was an option,” Spacek said — a revelation that underscores the administrative challenges the district has faced in recent years.
Part of those challenges stem from persistent turnover in the business manager role. The district has cycled through four different individuals overseeing its finances since 2021, a level of instability that has complicated efforts to stay current with audit requirements.
Durst Era Left Financial Questions, Forensic Audit Cleared District
The district’s difficulties intensified following the brief and contentious tenure of Branden Durst, a former state legislator hired as superintendent in 2023. Durst departed in September of that year after the State Board of Education rejected his application for an emergency superintendent certification. The school board, amid concerns about possible financial improprieties during his tenure, authorized a forensic audit covering district finances from 2018 through 2023. That audit was completed in 2024 and found no evidence of financial misconduct.
Durst filed a lawsuit against the district in 2024, which was resolved through a settlement reached in January of this year.
Enrollment Slide Threatens Future Staffing Levels
While the near-term budget remains stable, district officials are looking ahead to a more difficult financial picture. Current enrollment stands at 1,044 students, but projections show that figure falling to 993 next year, with further declines anticipated in 2027 and 2028. Based on those projections, the district estimates it may need to eliminate approximately five teaching positions in the 2027–2028 school year.
For the coming year, the district will lose one position through attrition rather than layoffs. Officials noted that boosting average daily attendance — currently running at 87 percent — could help offset some of the revenue pressure. A three-percentage-point improvement in attendance would generate an estimated $230,000 in additional state funding.
West Bonner also launched a virtual school program last year, an effort that may help retain students who might otherwise leave the district entirely.
What Comes Next
District officials are working to complete the 2024 audit by the end of June and will move directly into the 2025 fiscal year audit immediately after. Given the compressed timeline, all indications point to another withheld state payment this November when the 2026 audit misses its deadline. Whether the district pursues a hardship exemption — now that officials are aware of the option — could influence how much revenue it recovers heading into a period of projected enrollment decline.
Residents and parents following West Bonner’s finances can also follow broader Bonner County budget discussions, including the Panhandle Health District’s recently approved $12.3 million FY 2027 budget and the Bonner County Commissioners’ ongoing review of compensation equity for hourly workers, as local taxing districts across the region plan their finances for the year ahead.