State board budget draws scrutiny over staffing growth, IT transfers and proposed workforce grant

The Joint Finance Committee reviewed the Office of the State Board of Education’s (OSB) budget and asked officials to justify recent staffing increases, transfers of IT and safety programs into OSB, and a one‑time $15 million workforce capacity grant proposed by the governor.

OSB oversight analyst Kevin Campbell told the committee OSB is charged under Idaho law with governance, coordination and administration of state educational institutions and their related programs, and that recent transfers have increased the agency’s size: "OSB currently has 84.25 authorized FTEs with 8 vacancies," Campbell said. He noted the office’s five‑year average authorized FTE count is 55.95, a figure skewed low because of recent transfers into OSB.

The question of why OSB has grown drew most attention. Josh Whitworth, executive director of the State Board of Education, said the board’s work emphasizes "systemness" — centralizing functions where coordination leads to efficiency — and pointed to three main drivers of growth: internal audit staff moved from institutions into OSB, the transfer of IT and data management from the State Department of Education, and the addition of school safety and security work that was moved into OSB in FY 2022. "Bringing that centrally allows us to focus and make sure that we're doing standard policies across all of those," Whitworth told the committee.

Why it matters: OSB supervises operations and funding streams across K‑12 and higher education in Idaho; centralizing audit, risk management, IT and school safety shifts responsibilities and budget authority into the central office rather than leaving those functions at individual institutions.

Key budget and program figures discussed - Authorized FTEs: 84.25 (8 vacancies); five‑year average authorized FTE: 55.95 (Campbell). - FY 2024 ongoing enhancement: $30,000,000 Empowering Parents grant (legislatively created in FY 2024). - FY 2025 transfer: $5,000,000 broadband program moved from the State Department of Education to OSB. - Governor’s FY 2026 one‑time proposal: $15,000,000 public–private workforce capacity grant that would require private matching: 1:1 match for Boise State University, Idaho State University and the University of Idaho; 1:2 match for Lewis‑Clark State College and the state’s four community colleges (Whitworth presented matching ratios as part of the program description).

Committee members pressed for specifics and performance measures. Representative Petzke asked, "Why are we still growing this centralized agency so much?" Whitworth and other board representatives said centralization aims to reduce duplicated work across institutions (examples given: audit, risk management, IT support for roughly 300,000 students). Senator Cook and others requested more detailed cost comparisons between contractors and in‑house staff and asked for a clearer picture of backlog, maintenance needs, and measurable outcomes for the IT requests.

Independent Study Idaho and fees Whitworth described Independent Study Idaho as a flexible, nontraditional delivery option for students who need to progress at their own pace. He said the program’s per‑credit fee is "about a hundred and $60 per credit," and that the program historically has been largely fee‑funded; the board is considering whether base funding changes are appropriate because self‑funding mechanisms have struggled to cover rising costs.

DEI and student fees Committee members sought clarification about funding for programs related to historically marginalized groups and DEI. A committee member noted that, based on working‑group reports, "there are no appropriated funds going for any of the program services or centers that are focused on historically marginalized communities" and that those efforts have been paid from student fees and subject to student opt‑in rules.

Requests for follow‑up and next steps Committee members asked OSB for more detailed materials before budget decisions: an IT strategic plan and backlog analysis, a refined list of programs that would be eligible for the governor’s workforce capacity grant and the expected outcomes and metrics for those awards, and clarifications about which FY 2026 requests would require legislation (Whitworth said the behavioral threat assessment request proposed by the board requires legislation and has a bill sponsor already). Several members asked Campbell and OSB to provide agency‑by‑agency comparisons showing whether transfers into OSB corresponded to net decreases elsewhere.

Quotes from the hearing "OSB currently has 84.25 authorized FTEs with 8 vacancies," Kevin Campbell, Legislative Services Office budget and policy analyst. "Systemness...allowing us to get rid of siloed activity and ensure coordination," Josh Whitworth, executive director, Office of the State Board of Education. "It's really a flexible way of delivery...the majority of the program is funded by the fees, it's about a hundred and $60 per credit for an individual to take this," Josh Whitworth, on Independent Study Idaho.

What the committee asked OSB to deliver - IT plan including backlog, current contractor spending and projected in‑house costs. - A refined eligible‑program list and outcomes for the governor’s workforce capacity grant prior to floor action. - A list of which FY 2026 requests require enabling legislation.

Ending: The committee did not take votes on OSB items during the session covered in this transcript; members directed staff and OSB leaders to return with the requested documents so the work group and the full Joint Finance Committee can evaluate program‑level details before setting FY 2026 budgets.