Permanent Building Fund report: $1.9 billion in active projects; committee reviews FY2026 capital requests

Legislative analysts told the Joint Finance‑Appropriations Committee that the permanent building fund now underwrites a large portfolio of multi‑year capital and maintenance projects and that project spending patterns vary because funds become continuously appropriated after the first appropriation year.

Frances Lippett, budget and policy analyst with legislative services, said the permanent building fund "contains seven statutory sources of revenue" including earmarked fees and portions of excise taxes. She said the division of public works reports the total value of active public works projects at $1.9 billion, of which $1.4 billion is for capital projects and roughly 42% of funding for capital projects had been committed as of the agency's November capital budget report.

The committee reviewed the Division of Public Works' FY2026 recommendation, a $122,861,900 package that includes six capital projects and $68,208,800 for alterations and repairs and maintenance projects. Lippett described the six capital requests as follows: a $6.5 million expansion of the Department of Lands' Ponderosa office (including restroom, shower and reception security improvements); $5.56 million to connect utilities for a planned Idaho National Guard readiness center in Bonneville County; $5.525 million for a revised Idaho State Police Lewiston District 2 facility project (after a prior purchase attempt failed), which follows an earlier $9.975 million appropriation; $2.5 million to add laboratory space at Boise State's Micron Center for Materials Research; $14 million toward a life sciences complex at Idaho State University, a larger project estimated at $127.77 million with agency funds and bonding covering the balance; and $8 million for a joint military science and veterans assistance center at the University of Idaho.

Administrator Dale Reynolds of the division of public works told the committee the Chinden Campus has seen about $70 million completed and about $30 million in projects in progress; he and Director Bailey estimated an additional $145 million–$160 million in future maintenance and deferred maintenance work depending on the scope of remaining buildings. Reynolds said the campus is about 93% occupied by state agencies (roughly 7% of rentable square feet vacant), not counting entirely vacant Building 3, and that HP holds three of eight buildings under a lease extended through 2029 with an option to extend another five years. Reynolds said project timeframes vary by delivery method and project size; he told lawmakers large construction projects can have multi‑year schedules and cited an example of a prison project that will take about two and a half years once construction starts.

Committee members pressed the division for more project-level reporting. Co‑Chair Herrmann and others noted prior appropriations that had not advanced and asked staff to identify projects that have no ground‑breaking after four years so the Legislature can consider repurposing funds. Lippett told members she would provide a list of projects that had not advanced within the committee's four‑year language.

Reynolds and others said the construction market's cost escalation and labor availability remain constraints; committee members discussed whether some projects should be delayed or re‑scoped. The permanent building fund advisory council evaluates requests and the division provides status updates and project lists to the committee; Lippett and the administrator reminded members the council's November capital budget report and a full listing of recommended projects are available on the committee's SharePoint site.

Outlook: The committee will continue consideration of FY2026 capital project requests and directed staff to provide additional project‑specific timelines and lists of funds eligible for reappropriation if not advanced.