Idaho State president says forensic lab funds will be returned; outlines FY2026 budget request and student‑success priorities

Idaho State University President Rob Wagner told the Joint Finance‑Appropriations Committee on Jan. 29 that the university will return remaining funds tied to a proposed Eastern Idaho forensic pathology lab and that an audit has been requested to ensure legislative intent was followed.

Kevin Campbell, a budget analyst with the Legislative Services Office, opened the ISU presentation with a budget overview and said the office had prepared a report on the pathology lab matter and that an audit is now in process. Campbell also reviewed ISU’s FY2026 budget request and noted a technical error on the tuition and fees slide; he said the underlying Treasury balances show ISU had not overdrawn its account.

Why it matters: the committee emphasized that legislative appropriations carry legal intent and that state oversight of how agencies and institutions use appropriated dollars is required. The pathology lab funds were appropriated to create capacity in eastern Idaho; how those dollars were tracked and who held operational responsibility was central to the committee’s questions.

Wagner said ISU was grateful for the original appropriation for an Eastern Idaho facility and that the intent was to house the lab on ISU’s Pocatello campus, with opportunities for health‑science students to train in the facility. He said ISU expended a small amount on a consultant and that, in mid‑to‑late 2023, the county decided a campus facility was no longer desirable. An MOU followed transferring remaining funds to the county. Wagner told the committee, “I believe Idaho State University should have kept those funds. We should have been responsible for those funds,” and described new internal steps to track legislative funds and establish invoice procedures and clearer ownership lines.

Campbell and Wagner also reviewed ISU budget and enrollment data presented to the committee. Campbell said ISU has more than 12,000 students, a base budget reported at $171,100,000, and identified major expenditure categories: roughly 74.8% personnel, 21.2% operating, and 3.9% capital outlay. For FY2026 ISU is requesting $907,300 in operational capacity enhancement, $233,700 in endowment funds adjustment, and $988,100 in the enrollment workload adjustment; Wagner said he would stand for questions on how those funds would be used to support enrollment growth and strategic investments.

Wagner outlined student‑success efforts tied to workforce needs. He said ISU participates in the statewide LAUNCH program with 888 ISU students enrolled through that initiative and listed the five top LAUNCH fields at ISU as nursing, radiographic science, dental hygiene, elementary/secondary education, and biology‑related health programs. Wagner said the university is focusing on pathways that connect students to clinical sites and residency programs and on expanding partnerships (including with the Idaho College of Osteopathic Medicine) to increase retention of health‑care graduates in Idaho.

Committee members asked about corrective steps and accountability; representatives thanked Wagner for returning the funds and for the commitment to transparency. Campbell told the committee he would update slides and ledger anomalies where appropriate as the office completes its follow‑up work.

Next steps: the report prepared by Legislative Services is available to members and the public, Campbell said, and the requested audit is underway. Wagner said ISU will refine internal controls and return any funds not used in alignment with legislative intent.