Governor's office seeks emergency fund cash, America250 planning and constituent-system funding

Boise — The Executive Office of the Governor presented its FY2026 budget requests on Feb. 18 to the Joint Finance-Appropriations Committee, including a $1.35 million time cash transfer to restore the governor's emergency fund cash balance, a $250,000 one-time general-fund request tied to participation in the America250 presidential initiative, and a one-time IT replacement request of $45,000.

Christopher LaHozet, budget analyst for the Legislative Services Office, told the committee the governor's emergency fund has a base appropriation of $2,000,000 but a cash balance around $650,000; the $1.35 million transfer would raise the cash to the appropriated level and thereby allow the governor to expend emergency funds consistent with Idaho Code section cited during the hearing ("sections 50 seven-sixteen oh 1 of Idaho code"). LaHozet also described a governor recommendation of $250,000 in one-time funds to implement objectives of the White House Task Force tied to America's 250th anniversary, citing the presidential executive order referenced during the presentation.

What committee members asked for: legislators pressed the analysts and the Division of Financial Management (DFM) director for itemized expenditure and transfer records. Representative Tanner identified a set of interagency personnel reimbursements and transfers that he said occurred at or near the start and end of the fiscal year and asked whether those transactions masked structural shortfalls. DFM Administrator Lori Wolf explained that voluntary personnel reimbursements and cross-agency assignments (the "10P" process) are longstanding and that the state replicated the process in the new LUMA accounting system; she agreed to provide detailed transaction records and explanations to the committee.

The governor's office also has an earlier appropriation for a constituent-services platform. LaHozet said a Salesforce implementation was evaluated but proved cost-prohibitive; the FY2025 appropriation for a constituent-services platform remains available and DFM and the governor's office are exploring less costly options and possible reuse of existing state technology. Senator Hart and others asked whether the constituent-services appropriation will be spent this year; DFM said the office has not yet expended the funds and is still defining requirements and options.

DFM director Lori Wolf described the emergency fund expenditures that reduced the cash balance, including reimbursements related to the University of Idaho Moscow murder investigation and the "Esto Perpetua" (Fight Fentanyl) program. Wolf said the governor's emergency fund is used for unanticipated needs that meet statutory criteria and that replenishment restores both cash and spending authority needed for future emergencies.

Committee follow-up: staff requested an Excel breakout of emergency-fund expenditures and the one-time transfers noted in the hearing, itemized ITS-hardware lists for the $45,000 request, travel and charter-flight expense details, and documentation supporting interagency personnel reimbursements. DFM and the Legislative Services Office agreed to provide the materials to the full committee.

Ending: The committee took no votes at the hearing and moved on after asking for detailed accounting documents and schedules to evaluate the governor's office requests further.