Joint Finance reviews Department of Administration budget; governor's housing fund shortfall flagged

The Joint Finance Appropriations Committee on Presidents' Day reviewed the Department of Administration's fiscal 2026 budget, hearing that most of the department's appropriation is funded by dedicated internal service funds and that the governor's housing fund will be depleted without legislative action.

Frances Lippett, budget and policy analyst with legislative services, told the committee the department houses five budgeted programs and that roughly 10% of the department's appropriation comes from the general fund. She said the department manages state-owned buildings, statewide purchasing and insurance programs, and that its statutory authority appears in chapter 57, title 67 of Idaho Code.

Lippett said the governor's housing committee and the governor's residence fund are established in section 67-455 of Idaho Code and that the fund currently provides a monthly housing stipend to the governor. The analyst said the department previously requested a smaller general-fund appropriation that was not funded and is now seeking an appropriation to restore the fund balance; the transcript lists two different amounts at different points, so the precise figure to be requested was not consistently reported in the hearing record.

Steve Bailey, director of the Department of Administration, told the committee the governor's housing committee meets annually and that past discussions have considered building a governor's mansion. "At this point, we — there was discussion about potentially revisiting a Governor's mansion, but we haven't really gained any traction on those discussions," Bailey said. He confirmed property previously set aside for a mansion remains under a revocable easement with the City of Boise.

On personnel and operations, Lippett reported the department is authorized 334 full-time equivalent positions (FTP) and has historically filled roughly 92% of that authorization. She noted the division of public works accounts for about three-quarters of department expenditures and that much of the operating budget goes to insurance, repairs, utilities, security and landscaping.

Committee members pressed staff on presentation format and fund accounting. Representative Tanner and other members asked for a breakdown showing continuous appropriation accounts and direct investments, which Lippett said could be provided after the hearing. Senator Bjerke asked about negative balances in the permanent building fund (a related item discussed later) and Lippett explained that direct investments are sometimes netted against negative free-fund balances for cash-flow reasons.

The department's requested and one-time enhancements included personnel additions across the office of group insurance, risk management, public works and purchasing, plus modest equipment and vehicle requests. Lippett said the governor recommended the requested enhancements. Director Bailey and staff offered to provide additional historical materials on the governor's housing committee and its prior studies at the committee's request.

Why it matters: The department manages central services used by nearly every state agency and administers funds that are continuously appropriated. Questions about the governor's housing fund, how it is financed and where the appropriation should reside (Administration vs. the Governor's Office) could affect whether a general-fund appropriation is required to maintain the current stipend or pursue a separate residence plan.

Looking ahead: Committee members asked staff to provide additional detail on continuous appropriations, direct investments, and the governor's housing committee history so members can consider whether to fund the housing stipend or pursue other options for housing support.