ISU president pledges accountability, return of forensic lab funds and outlines FY2026 budget requests

Rob Wagner, president of Idaho State University, told the Joint Finance-Appropriations Committee on Wednesday, Jan. 29, that ISU will implement stronger controls and return remaining funds connected to an Eastern Idaho forensic pathology lab after reviews found mixed communications and a transfer of the funds to a county.

Wagner told the committee that the university became aware in late 2023 that the county no longer wished to site a pathology facility on ISU’s Pocatello campus. He said ISU ‘‘was very grateful and very pleased to be recognized by the legislature’’ for the appropriation but acknowledged the university ‘‘must do better’’ in tracking and owning legislative funds. ‘‘Legislative intent is law and it's incredibly important for us as an institution when those funds come to us that we take full and complete responsibility and realize and understand what that intent is,’’ Wagner said.

The matter was first described to the committee by Kevin Campbell, a Budget and Policy Analyst with the Legislative Services Office, who opened the university budget presentation and noted technical issues in tuition-fee accounting on slides but said ISU had not overdrawn its account. Campbell summarized ISU’s enrollment (more than 12,000 students), staffing levels and the university’s base budget.

Why it matters

The committee’s review followed press reporting about the proposed Eastern Idaho Forensic Pathology Center and an internal ISU report. ISU’s handling of the appropriation drew scrutiny because state appropriations are subject to legislative intent and audit. The committee heard commitments from ISU leadership to improve fund-tracking and transparency and to return funds tied to the project.

What the committee heard about the forensic lab

Wagner said ISU originally planned to house the forensic lab on the Pocatello campus and that the project would have provided clinical and internship opportunities for health sciences students. He said the university had spent a ‘‘small portion’’ of the appropriation on a consultant to evaluate campus siting options but that, after an MOU, remaining funds were transferred to the county. ‘‘In retrospect, I think I believe Idaho State University should have kept those funds. We should have been responsible for those funds,’’ Wagner said, adding that ISU is now clarifying ownership lines and accountability.

A committee member later confirmed publicly that the university would return the funds to the state; several members thanked Wagner for the steps he described.

Budget requests and recent adjustments

Campbell outlined ISU’s multi‑year budget history and recent adjustments, including reductions and restorations tied to enrollment workload adjustments and operational capacity enhancements.

ISU requested the following for FY2026 in the budget presentation: $907,300 in operational capacity enhancement, $233,700 in endowment-fund adjustment, and $988,100 in enrollment workload adjustment. Campbell also noted that personnel consumes roughly 74.8% of ISU’s expenditures, with 21.2% in operating costs and 3.9% in capital outlay.

Changes to student-support offices and workforce programs

Wagner described a reorganization intended to improve student completion. He said two campus centers—the Diversity Resource Center and the Gender Resource Center—were closed effective Nov. 15 as part of a broader refocus on ‘‘academic student success.’’ Two full-time equivalent positions tied to those centers were reallocated: one to student involvement to support student-led clubs, and one to the Office of Equal Opportunity/Title IX, which now reports directly to the president. Wagner said ISU also created the Bengal Success Center as a consolidated student-success resource available to students at all campuses.

Wagner framed the changes as a narrower focus on completion and retention: ‘‘Students are coming to Idaho State University to earn an endorsement, a certificate, a degree. We need to be about the business of making sure that they get that in a very, very efficient way.’’

Health sciences and workforce initiatives

Wagner highlighted growth in ISU’s health sciences programs and new initiatives. He described a new doctor of nurse anesthetist program to be launched on the Meridian campus with 25 seats; he said the program drew ‘‘over 200 applicants in the first year.’’ Wagner emphasized partnerships with other institutions, citing a forthcoming MOU with ICOM (the Idaho College of Osteopathic Medicine) to expand research and clinical pathways.

Federal grants and staffing pressures

Committee members asked about the potential impact of federal restrictions and a federal OMB memorandum that briefly raised questions about federal grant funding. Wagner said ISU staff ran estimates and at one point believed up to roughly $25 million in federal awards could be at risk before a court injunction paused the directive; he said the university had ‘‘more questions than answers’’ while it worked with national associations and the state to assess impacts. Wagner also acknowledged ISU has lost staff to the private sector and that retention and competitive compensation remain challenges.

Committee reaction and next steps

Members thanked Wagner for the transparency and for committing to return funds tied to the forensic lab project. Multiple legislators pressed for continued written follow-up and promised to work with ISU on future legislative and budget steps. Campbell said staff will track corrections to the tuition-fee slides and update the record as appropriate.

Ending

Wagner closed by reiterating ISU’s statewide mission, noting that roughly 92% of ISU students are from Idaho and that the university intends to expand on- and off-ramps for traditional and nontraditional students to support completion and workforce needs.