Teton County commissioners and staff spent the July 3 special meeting debating how restricted and enterprise funds can be used in the county budget, with several commissioners saying statutory limits prevent them from spending tax dollars across funds to cover personnel needs. The session included requests for legal research and an executive session to discuss employment compensation.

The discussion focused on whether money sitting in enterprise accounts or special districts — for example, mosquito abatement — can be borrowed or loaned to cover general-fund needs such as raises or temporary staffing. Commissioners asked county staff to investigate statutory limits and the process for making inter-fund loans, and they moved into executive session under Idaho Code to discuss personnel compensation.

Commissioners noted several pools of money that have accumulated but are legally restricted to particular purposes. One commissioner said: “Every dollar that's in this budget is the citizens of this county's budget. And because of these archaic laws that Boise has somehow decided to pass in their wisdom, we cannot…use it how we see fit.” A staff member explained that some dollars “netted against prior year's expenses” and that portions went into the general fund and district court. County staff said loans between restricted funds are possible with formal terms.

Officials singled out the mosquito abatement account as an example. A commissioner said the mosquito abatement fund had about $180,000 “that's not being used,” and asked whether the county could reassign it to hire deputies; staff replied the statute governing the district is explicit that its money must be used for mosquito abatement and the district's board controls expenditures.

The board discussed that some returned money from a past litigation or case had been split between district court and the prosecutor’s budget; staff advised the recovered cash should logically be returned proportionally to where it originated unless directed otherwise. Commissioners also raised the idea of internal loans from restricted funds with specified repayment terms and interest, asking staff to research the legal and operational mechanics. One staff member said such loans “are ways to move it around” but cautioned about repayment sources.

By the end of the discussion the commissioners agreed to research statutory constraints and options, including: whether inter-fund loans are permitted in each instance, feasible interest rates and terms, the consequences of misusing restricted funds, and whether money recovered from prior-year expenses should revert proportionally. The board then voted to enter executive session under Idaho Code 74-206(1)(b) — as stated in the meeting — to discuss employment matters connected to compensation.

The commissioners did not adopt any new policy or reallocate any restricted funds during the meeting. Staff was asked to return with written legal guidance on fund restrictions and loan procedures before the board finalizes budget decisions that would rely on nonrecurring cash balances.

Looking ahead, commissioners said they will continue trying to persuade state lawmakers to change statutes they said limit local flexibility; no legislative action was taken at the meeting.

(Ending) Staff will report back with legal research on fund restrictions and options for inter-fund loans and repayment plans prior to the final budget hearing.