Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Savings Budget Stabilization topic
No spam. Unsubscribe anytime.
Governor proposes transfers to savings and stabilization funds; staff outline statutory caps and recent changes
Summary
JFAC members heard details about proposed transfers to the budget stabilization fund and public education stabilization fund, recent changes to statutory caps, and the state's larger savings position compared to 2009.
Legislative staff outlined the governor's proposed transfers into two principal savings accounts and reviewed the state's saved balances relative to past recessions.
Keith Bybee told the Joint Finance-Appropriations Committee the governor recommended a $59 million transfer to the budget stabilization fund (BSF) and a $50 million transfer to the Public Education Stabilization Fund (PESF) for the 2025-26 cycle. Bybee said a $59 million deposit would push the BSF to about $939 million, close to its statutory cap tied to a percentage of general fund revenues.
Bybee and members discussed changes made last year that allowed the legislature to keep funds in the BSF even when the statutory cap was exceeded. The committee heard that last session's action was largely bookkeeping to avoid automatic transfers back to the general fund. Bybee and others described the BSF and PESF caps (the PESF cap is linked to public school support and was raised by H.B. 521), and noted that current balances put Idaho in a stronger position to weather a small-to-medium recession than it was in 2009.
Why it matters: these accounts provide cash cushions for revenue shortfalls. The presentation contrasted 2009, when the state had about $641 million available and later relied on deep program cuts, with the current projected combined savings approaching $1.6 billion (including the governor's recommended transfers).
Committee questions and follow up: members asked for detail on how interest earnings on these accounts are recorded and where interest income appears in budget reconciliations; staff said a later treasurer's presentation and other staff would provide the specific interest-earning reports and that the treasurer's office would provide a breakdown of interest by fund.
Ending: Staff advised members that choices remain about whether to move funds into savings or to use one-time revenues for spending and that the committee will need to weigh those trade-offs in coming weeks.
