Idaho JFAC Committee approves $5M budget adjustment for Department of Labor

Idaho's Senate Finance Committee has approved a significant budget adjustment for the Department of Labor, which will see a reduction of 15 full-time positions (FTP) from its determination program and a 0.58 FTP reduction from its administrative services. This decision, made during the March 19, 2025, meeting, includes a $5 million increase in dedicated funds, offset by a $5 million decrease in federal funds.

The adjustment comes as a response to Idaho's low unemployment rates, which have led to a decrease in federal grant awards for the department. The director of the Department of Labor proposed this budget modification to ensure the department can maintain its operations despite the reduction in federal support. The committee's approval reflects a collaborative effort, with the director engaging with committee members to find a more acceptable solution after an earlier budget proposal was rejected.

During the meeting, committee members discussed the implications of the federal funding changes and the importance of stabilizing the department's operations in anticipation of potential economic downturns. The committee ultimately voted in favor of the motion, with a tally of 14 votes in favor and 5 against, allowing the budget adjustment to move forward.

This decision is expected to enhance the Department of Labor's ability to respond effectively to future employment challenges, ensuring that the state remains prepared for any economic fluctuations. The committee's proactive approach underscores the importance of adapting state resources to meet changing economic conditions and support Idaho's workforce.