Department of Lands budget hearing spotlights fire-suppression fund, timber-protective associations and Good Neighbor Authority

The Idaho Department of Lands told the Joint Finance-Appropriations Committee on Oct. 24 that rising fire costs, reimbursement timing and expanding wildfire responsibilities are shaping its FY2026 budget request, and the governor's recommendation would add large transfers to the state's fire suppression account but did not approve all of the department's one-time enhancements.

Director Dustin Miller described the state's fire-suppression financing and program priorities and outlined requests for personnel and one-time equipment. "If we do not receive the additional funds that's being asked for by the governor in our budget, that fund could drop down to about $13,000,000 for FY '26," Miller told the committee, referencing projected balances in the fire suppression deficiency fund.

Why it matters: The Department of Lands is the administrative arm of the state Board of Land Commissioners and oversees trust lands, wildfire response and timber programs. The agency said wildfire costs vary greatly year to year and that reimbursement timing from federal partners can leave the state covering costs until invoices are settled.

Key fiscal items discussed - Fire suppression deficiency fund: The governor recommended a $40,000,000 transfer from the general fund to the fire suppression deficiency fund and a $60,000,000 supplemental transfer for the current year; the department showed historical prefunding and said the transfers would materially increase the fund balance. - Firefighter bonuses and TPA supplemental: The governor recommended $1,000,000 in firefighter bonuses for Department of Lands employees; Timber Protective Associations (TPAs) requested an additional $250,000 so their employees would receive comparable bonuses. - Timber Protective Association compensation-enhancement (CEC): The governor's recommendation included a CEC-like increase for the TPAs (the hearing discussed a 5% equivalency) because TPA employees are not state employees and do not receive the state CEC. - Good Neighbor Authority (GNA): Miller said Good Neighbor Authority timber-sale receipts have funded the program; the department reported roughly $40,000,000 generated to date, with about $18,000,000 available for departmental costs and roughly $6,000,000 used for restoration contracts. The legislature previously provided seed funding; GNA revenues now largely fund operations.

Program and personnel requests: The agency requested several new positions tied to fire and forest management, including a fire emergency support program manager, a fire aviation section manager, a statewide forest assessment program manager, an assistant fire warden (Ponderosa area), a fiscal financial specialist and a forest program position. The department said some requests are funded through dedicated funds and federal grants; about 79% of the department's enhancement requests for FY2026 were one-time items.

Abandoned mines and other funds: Committee members asked about the abandoned mine lands fund. Director Miller said the task of closing roughly 9,000 abandoned mines statewide far exceeds available funding and that the abandoned mines fund has not kept pace with identified needs.

Committee exchange and context: Senators and representatives pressed staff on how the GNA receipts are used, whether counties could benefit, and on timing of reimbursements from federal partners. Miller described GNA receipts flowing to personnel, operating costs, payments to the Forest Service and restoration contracts, and said the program had set up agreements with six of seven national forests in Idaho.

No formal committee votes were taken during the hearing. The hearing record includes the department's enhancement requests, the governor's recommendations on transfers and bonuses, and questions from members about long-term funding sustainability.