University of Idaho says finances have stabilized but reserve metrics lag; Phoenix affiliation talks extended

BOISE, Idaho — University of Idaho President C. Scott Green told the Joint Finance‑Appropriations Committee on Jan. 27 that the university’s finances have materially improved following multiyear reductions, but that several reserve and reporting metrics remain below State Board benchmarks because of legacy obligations.

Key points: President Green and Legislative Services Office analyst Kevin Campbell said the University of Idaho has a base budget of about $196.3 million and an enrollment of 12,286 students. Green told the committee the university took a one‑time base reduction of about $26 million in FY2021 to align expenses with revenues and that the institution has since stabilized cash flow and operations.

Green described a legacy retiree medical obligation (OPEB) that required a prior accounting adjustment affecting unrestricted reserves. He told the committee the university’s total consolidated net position is positive and cited a $319 million total net position figure, while also noting that unrestricted net position was negative in earlier presentations because of the OPEB accounting change. Green said the $33 million reduction to unrestricted reserves reflected that accounting treatment and explained the amounts now appear in restricted net position because of how those funds are designated.

On a potential affiliation with the University of Phoenix, Green said the university and the Phoenix sellers extended an agreement that allows the sellers to continue discussing options with other parties and that the deadline for a decision was extended to June 10. He said the University of Idaho received $5 million at signing and that the contract includes a breakup fee of up to $20 million to offset expenses if the sellers choose another path. Green said any legislative consideration would be required should an affiliation proposal reach the stage needing state approval.

Research and federal funding: Green and committee members discussed the university’s large research portfolio. Green said Idaho is a research university with substantial federal awards and that the university sometimes distributes federal subawards to partner institutions; he agreed to provide additional detail on major subrecipient pass‑throughs when the committee requested it. Committee members asked how those federal flows are represented in state budget materials; Green said much of the university’s budget is research or foundation funds that do not appear in the state general fund appropriation figures.

Operational requests and enhancements: Campbell described recent enhancements and centralizations, including a $1.8 million governor’s initiative in FY2024 (a combined enhancement now commonly reflected as operational capacity enhancement) and an operational capacity enhancement of $2.1 million in FY2025. For FY2026 the university requested roughly $996,300 in additional operational capacity enhancement for CEC and $900,000 in endowment adjustments.

Committee follow‑up: Green agreed to provide additional documentation the committee requested, including lists of major federal subrecipients and further explanation of consolidated financial ratios. The committee postponed the system‑wide colleges and universities hearing to allow time for those follow‑up materials and to continue questioning several presidents and the State Board representative at a later date.

President Green closed by highlighting enrollment growth — he said the University has seen eight consecutive semesters of enrollment increases and that the fall 2024 freshman class was the largest in university history — and by listing ongoing research and outreach activities that contribute to Idaho’s economy.

No formal committee votes occurred during the presentation.