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Idaho State University to Return Forensic Lab Appropriation; President vows stronger controls
Summary
ISU President Rob Wagner told the Joint Finance-Appropriations Committee that the university discovered problems with how funds intended for an Eastern Idaho forensic pathology lab were handled, has begun returning the remaining appropriation to the state, and is implementing new accountability steps.
Idaho State University President Rob Wagner told the Joint Finance-Appropriations Committee on Jan. 29 that the university will return remaining funds tied to an Eastern Idaho Forensic Pathology Center appropriation and is instituting stricter financial controls after reviewing how the appropriation was handled.
Wagner said ISU became aware of the issue in late 2023 and has since worked to clarify roles and fiscal ownership. “I believe Idaho State University should have kept those funds. We should have been responsible for those funds,” Wagner said, describing small consultant expenditures that had been made on campus before an MOU led to transferring remaining funds to the county.
The matter prompted a staff-prepared report and a requested audit; Kevin Campbell, a Legislative Services Office budget analyst, told the committee the report is online and that an audit is now in process. Wagner said his administration will “put in place ways that we identify ownership of legislative funds and accountability” so the Legislature can “trust us as an institution to follow your intent.”
Why it matters: the appropriation was intended to establish a pathology lab to serve Eastern Idaho. Committee members pressed for assurance that legislative intent — not informal agreements among multiple parties — governs how appropriated dollars are used. Representative Manwaring thanked Wagner for steps to return the funds and for the report’s findings. Co-chairs and other members emphasized that appropriation law is binding.
Details and university response - Wagner said ISU expended a small portion of the appropriation on a consultant to study campus siting. He described subsequent communications between ISU and the county and said that when the county no longer preferred a campus-based facility the remaining funds were transferred under an MOU. - Wagner said the university will improve invoice procedures and tracking for legislatively appropriated funds and will take “full and complete responsibility” going forward. - Kevin Campbell confirmed the committee has access to the staff report and that an audit request is under way to determine if any lines were crossed.
What the committee requested Committee members asked for transparency and a formal accounting; members voiced appreciation for Wagner’s cooperation and said they expect the institution to follow statutory intent for appropriations. Wagner committed to returning remaining funds and to improved internal controls and reporting.
Context and next steps Campbell and Wagner both noted that the presentation and the staff report are part of the public record for the committee. The committee indicated it may pursue policy adjustments — potentially a bill — to address how tuition and reappropriated revenues and similar fund flows are reported, so that appropriation intent and year-to-year accounting are clearer.
Ending Wagner framed the changes as part of a broader push for transparency under his administration. The committee requested that the audit and any follow-up documentation be provided to members once available.
