Idaho State president says university will return forensic pathology appropriation; budget presentation outlines FY2026 requests

Idaho State University President Rob Wagner told the Joint Finance-Appropriations Committee on Jan. 29 that the university will return funds appropriated for an Eastern Idaho forensic pathology laboratory after a review found the remaining appropriation had been transferred to the county under a memorandum of understanding.

Kevin Campbell, a budget and policy analyst with the Legislative Services Office, opened the university briefing with a financial overview and the institution’s FY2026 budget request. “Idaho State University has an enrollment of more than 12,000 students, supported by 1,244 FTE and a base budget of $171,100,000,” Campbell said during his presentation.

Wagner said ISU became aware of concerns about the Eastern Idaho Forensic Pathology Center in late 2023. He described the original plan as one in which ISU would house the lab on its Pocatello campus and provide clinical and educational opportunities for health sciences students. Wagner said communications and decision-making among multiple parties—ISU, the county, and others—left gaps in accountability. “In looking back, I think Idaho State University should have kept those funds. We should have been responsible for those funds,” Wagner said, adding that a small portion of the appropriation had been spent on a consultant and that remaining funds were transferred to the county following an MOU.

Representative Manwaring thanked Wagner and noted that the university has agreed to return the funds. Wagner described steps his administration is putting in place to identify ownership of legislative funds, track appropriations against legislative intent, and strengthen invoice and accounting procedures so the institution can “follow the accountability line.”

Campbell also pointed out a technical error in the tuition-and-fees slide shown to the committee: the slide “correctly shows the data as submitted in the budget process, it does not appear to reflect the actual beginning fund balance in ISU’s tuition fees,” he said, adding that he had checked state treasury balances and “ISU has not overdrawn its bank account.”

The budget presentation included program and expenditure details: Campbell said ISU’s five‑year expenditure breakdown shows roughly 74.8% of expenditures going to personnel, 21.2% to operating costs and 3.9% to capital outlay. For FY2026, Campbell reported ISU’s request included operational capacity enhancement dollars and an enrollment workload adjustment; President Wagner reiterated the university’s focus on strategic investment to support growing enrollment and health sciences programs.

Committee members asked about how ISU will improve internal controls and follow legislative intent going forward. Wagner said his leadership team is implementing clearer tracking and ownership procedures for legislative funds and emphasized the university’s commitment to transparency and returning the funds tied to the forensic pathology appropriation.

Wagner and legislators also discussed ISU’s role in statewide health workforce development and partnerships—with ICOM (Idaho College of Osteopathic Medicine) and community colleges—emphasizing clinical rotations and residency pathways aimed at retaining graduates in Idaho communities. Wagner described ISU’s new Bengal Success Center and other steps to boost student completion and retention.

The committee did not take formal legislative action on the matter during the hearing; President Wagner’s statement that the funds will be returned to the state was a university commitment reported in committee.

Wagner and Campbell answered additional questions about prior budget reductions, recent operational capacity enhancements, and enrollment workload adjustment history, and said they would update the committee if Campbell’s tuition‑fund slide is corrected for the record.