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Idaho’s savings accounts near statutory caps; governor proposes $59 million boost to budget-stabilization fund
Summary
Legislative Services Office told JFAC the governor would transfer $59 million to Idaho’s budget stabilization fund under his recommendation, potentially bringing the fund to roughly $939 million and near the statutory 15% cap. The public-education stabilization fund would move to about $293.6 million under the governor’s numbers.
Keith Bybee presented the committee an overview of the state’s key savings accounts and how the governor’s proposal would affect balances.
Bybee said the governor’s recommended $59 million transfer to the budget stabilization fund would raise the account from about $880 million to roughly $939 million — “largest it’s ever been,” he said — and could reach the statutory cap of 15% of general-fund revenues depending on final receipts. He reminded members that last year the Legislature temporarily set aside the statutory cap language to avoid automatic accounting transfers back to the general fund when balances exceeded the cap.
Bybee also described the public education stabilization fund (PSIF), which serves as an overdraft protection for public school support. With the governor’s recommendation, he said, PSIF would reach roughly $293.6 million — a roughly 20% year-over-year increase under the figures he presented. Bybee explained PSIF is capped at 15% of public-school-support appropriation and functions primarily to smooth end-of-year differences arising from actual support units versus those budgeted.
To provide historical perspective, Bybee compared the state’s cash position in the 2009 recession (when total available cash was about $641 million, roughly 21.7% of original appropriation that year and was drawn down through multi-year budget reductions) to today’s projected savings. He said total savings would be approximately $1.6 billion under current projections — a much larger cushion than in 2009 — though he cautioned revenues and policy choices will determine precise balances.
Why it matters: the size and statutory treatment of savings accounts shape the Legislature’s choices during downturns and influence credit-rating assessments. Committee members asked how interest earnings on those accounts are recorded; Bybee deferred to the treasurer’s office and promised additional detail when the treasurer’s analysts present.
Ending: The committee signaled interest in whether to continue the temporary statute-suspension that prevented automatic transfers when the stabilization fund exceeded 15%, and staff were asked to provide follow-up materials for working-group review.
