Idaho State University to return forensic lab appropriation after internal review; legislative audit requested

At a Jan. 29 meeting of the Joint Finance‑Appropriations Committee, lawmakers were told Idaho State University will return remaining funds that had been appropriated for an Eastern Idaho forensic pathology center and that a legislative audit has been requested.

Committee staff announced at the start of the meeting that the university’s handling of money tied to a planned pathology lab at Idaho State University (ISU) had drawn media attention and that an internal report prepared by the Legislative Services Office was publicly available; the committee said an audit was in process to “make sure that no lines were crossed.”

Kevin Campbell, a budget and policy analyst with the Legislative Services Office, gave a broader budget overview of ISU and noted the office’s report and some technical data errors in tuition‑fund slides but said the university has not overdrawn its account. President Rob Wagner told committee members that ISU learned of the pathology‑lab issue in late 2023 and conducted follow‑up research.

Wagner said ISU had originally been appropriated money to house a forensic pathology lab on its Pocatello campus and that the planned facility was intended to serve Eastern Idaho while providing health‑sciences students with hands‑on training. “It became very apparent that there was a lot of communication going on,” Wagner said, describing discussions between the university and the county. He said ISU had spent a small portion of the appropriation on a consultant to evaluate campus options, but that the county later decided a campus facility was no longer desirable and, following a memorandum of understanding, the remaining funds were transferred to the county.

Wagner acknowledged shortcomings in ISU’s internal tracking and accountability for legislative funds: “I believe Idaho State University should have kept those funds. We should have been responsible for those funds,” he told the committee. He said the university will put new procedures in place to identify ownership of legislative funds and to ensure that “this body and the Idaho State Legislature can trust us as an institution to follow your intent.”

Representative Kevin Manwaring, who identified himself as pleased with Wagner’s response, asked the university to describe the process it followed after the matter came to light; Manwaring and other committee members thanked Wagner for the commitment to return the funds and for the university’s cooperation in the review.

No formal committee vote was recorded during the presentation. Committee staff said the audit is “in process.” The committee asked that related materials and follow‑up answers be provided to members.

Next steps outlined in the meeting: the legislative audit will continue, ISU leadership said it will implement improved controls around appropriated funds, and the university indicated the remaining forensic‑lab appropriation will be returned to the state so legislative intent can be honored.

The committee moved on to routine budget presentations after the ISU discussion.