ISU president tells JFAC university will return forensic pathology appropriation; vows stronger controls

Idaho State University President Rob Wagner told the Joint Finance-Appropriations Committee on Jan. 29 that ISU will return state-appropriated funds connected to a proposed Eastern Idaho Forensic Pathology Center and is instituting tighter tracking and accountability for legislative appropriations.

The disclosure followed an announcement at the start of the hearing that Legislative Services staff had posted a report about the lab and that an audit was being requested. Kevin Campbell, a budget and policy analyst with the Legislative Services Office, said a staff report is online and that an audit is now in process to determine whether laws or appropriation intent were followed.

"There is and continues to be a tremendous need in the Eastern portion of the state for a facility like that," Wagner said. He described ISU's original role as hosting the lab on its Pocatello campus and said the facility would have provided student training opportunities for health-science students. Wagner said ISU expended a "small portion" of the appropriation on a consultant but that, in mid- to late 2023, the county that planned to operate the facility determined an on-campus site was no longer desirable and an MOU transferred the remaining funds to the county.

Wagner said ISU should have retained responsibility for the funds and implemented invoice procedures and other controls. "I believe Idaho State University should have kept those funds. We should have been responsible for those funds," he said, adding the university is putting in place new protocols to "identify ownership of legislative funds and accountability."

Representative Marcial Manwaring (Pocatello area) followed up by saying the funds will be returned to the state and publicly thanked Wagner for the leadership and the report. Committee co-chairs also commended ISU leadership for the report and Wagner's commitment to greater transparency and accountability.

Campbell told the committee he identified a technical error in the tuition-and-fees slide in his presentation; he said the error does not reflect an overdrawn treasury balance and that he is tracking down the cause and will update the record if appropriate. He also walked members through ISU's five-year appropriations and expenditure history, personnel and operating shares of the base budget, and several recent adjustments, including enrollment-workload adjustments and operational capacity enhancements (amounts were presented in the budget book).

Wagner used the hearing to describe other ISU priorities, including expanding health-science programs and partnerships (including a collaborative MOU with ICOM) and to say the university is refocusing student-support resources to improve completion rates. As part of that refocus, Wagner said ISU closed a diversity resource center and a gender resource center effective Nov. 15 and moved the two affected FTE into student-involvement and the office of equal opportunity/Title IX, now reporting to the president. He said the university subsequently created the "Bengal Success Center" to support all students' academic success.

Committee members asked whether ISU would seek to partner again with other government entities to provide forensic pathology services in Eastern Idaho. Wagner said the university is open to partnership and will return to the committee with proposals if asked. He also said the institution is addressing market pay and employee retention challenges and is on track to present a balanced FY 2026 budget.

What remains unspecified in the hearing record: the exact dollar amount of the original appropriation for the forensic pathology center (the presentation and Q&A referenced the appropriation but did not specify the total dollar figure in the transcript excerpts), the precise dollar amount moved to the county by MOU, and the exact consultant fee beyond being described as a "small portion." Campbell said he found a technical error in ISU's tuition-and-fees beginning-balance figures and is investigating that discrepancy.

The committee did not vote on any ISU action during the session; members directed questions to university leadership and staff and asked for additional information to be provided in follow-up correspondence.

Wagner closed by emphasizing ISU's statewide role in health sciences, workforce development, and student access, and pledged to the legislature that the university will improve internal controls to ensure legislative intent is followed in future appropriations.