Governor's office asks to replenish emergency fund, proposes $250,000 for national 250th events; lawmakers press for transparency on software and interagency re

The Executive Office of the Governor presented its FY2026 requests to the Joint Finance‑Appropriations Committee on February 18, seeking a $1,350,000 one‑time cash transfer to restore the Governor’s Emergency Fund cash balance to the statutory base and seeking one‑time monies for IT replacement and participation in planning for national 250th anniversary initiatives.

Budget analyst Christopher LaHozet explained the emergency fund context: the fund has a base appropriation and historically has been used to facilitate expenditures that fit Idaho Code restrictions. He told the committee the fund’s cash balance was around $650,000 and that reimbursable expenses in FY2023–24 included $1.4 million for an Idaho State Police reimbursement tied to the University of Idaho Moscow murder investigations and a program referred to as Esto Perpetua (fentanyl‑related efforts). The governor’s office requested a $1.35 million transfer to restore available cash to the $2 million base appropriation.

LaHozet also presented a $45,000 one‑time ITS replacement request and a $250,000 one‑time request to support objectives from a presidential executive order creating a White House task force on the nation’s 250th anniversary. The analyst described the $250,000 item as funding for Idaho’s participation, including local events and a short exhibit connection to a national traveling fair.

Several legislators pressed for additional detail. Senator Hart and others asked whether the governor’s proposed constituent services management platform would be Salesforce; LaHozet said Salesforce had been evaluated but proved potentially cost‑prohibitive. Division of Financial Management Administrator Lori Wolf told the committee the governor’s office had not yet spent the FY2025 appropriation for a constituent platform and that DFM and the governor’s office were exploring less costly alternatives and possible reuse of existing state tools.

Lawmakers also asked for itemized supporting documentation on charter flight and in‑state travel costs and asked DFM for the detailed prior expenditures tied to the emergency fund. LaHozet agreed to provide spreadsheets and expenditure reports to the committee and to post available data. Senator Zitterfeld asked specifically for an Excel breakdown of how previously expended emergency fund dollars were used; LaHozet said the Division of Financial Management produces a statutory report and that he would share available details.

Representative Tanner pressed on a pattern of interagency personnel reimbursements (the so‑called “10P” transactions) and noted several sizable transfers from other agencies to the governor’s office that occurred shortly after budget passage. DFM Administrator Wolf described the 10P practice as longstanding (dating to fiscal‑policy guidance in 1999), said the controller’s office had implemented the same reimbursement approach in the state’s new LUMA accounting system, and offered to provide line‑level details to the committee. Wolf said such personnel reimbursements are not contracts (which would be operating costs) but are reimbursements when staff perform work for other agencies.

No formal appropriations were adopted during the hearing; the governor’s requested transfers and one‑time items were presented for committee consideration and follow‑up. Committee members asked for: (1) an itemized invoice/spreadsheet for prior emergency fund expenditures; (2) a breakdown of charter flight and travel costs; (3) an itemized list of ITS replacement hardware connected to the $45,000 request; and (4) further detail on the planned constituent services solution, including options other than Salesforce.

DFM and legislative staff committed to provide the requested spreadsheets and reports to the full committee.