Idaho JFAC approves multiple supplemental appropriations and FY2026 enhancements; ombudsman funding fails in House

BOISE — The Joint Finance-Appropriations Committee (JFAC) on Friday approved a slate of supplemental appropriations and fiscal year 2026 budget enhancements affecting the Military Division, Division of Veterans Services, Department of Agriculture, Department of Finance, Department of Insurance, and several education and health-training programs. Committee members voted to transfer $8.6 million from the state emergency relief fund to support hazardous-materials regional response teams and approved multiple one-time and ongoing increases for IT, personnel and replacement equipment across state agencies. A separate motion to appropriate $50,000 to create an Office of Health and Human Services ombudsman failed to receive affirmative support in the House delegation and will be taken up later.

The committee's actions affect a range of public-safety, veterans and regulatory programs and were taken as part of JFAC's budget-setting work for FY2026. Committee staff and agency analysts presented details and fiscal notes for each request; lawmakers referenced those fiscal notes when voting.

Most significant financial actions

- Military Division: The committee approved several items for the Military Division, including a $34,200 one-time reimbursement to the Hazardous Substance Emergency Response Fund (to cover remaining FY2024 cleanup costs) and a $540,001 one-time appropriation to support public-safety communications installation throughput. Lawmakers also approved a $759,200 one-time appropriation to upgrade the division's IT infrastructure and licensing and approved multiple FY2026 enhancements including positions for public-safety communications and funding for hazmat regional response equipment. "This would allow public safety communications to contract for the installation of public safety communication systems and vehicles," analyst Frances Lippitt told the committee.

- Hazardous-materials regional response: JFAC approved a separate FY2026 motion to transfer $8.6 million from the continuously appropriated state emergency relief fund to the Military Division's miscellaneous revenue fund to buy equipment for hazardous-materials regional response teams housed at local fire departments.

- Division of Veterans Services: The committee approved FY2026 requests that included a reallocation of operating to personnel funds to create a temporary nursing staffing pool, IT maintenance and capital outlay requests, and reappropriation authority for federal construction grants related to Boise and Lewiston veterans homes.

- Department of Agriculture: Lawmakers approved a $1,724,300 one-time transfer from the general fund to the Pest Control deficiency fund to cover FY2024 invasive-species control costs and approved FY2026 enhancement and replacement requests (including pay structure adjustments, replacement vehicles and lab equipment).

- Department of Finance and Department of Insurance: The committee approved multiple dedicated-fund enhancements adding several full-time positions in the Department of Finance (including IT examiners, cybersecurity and forensic accounting roles) and positions and pay adjustments in the Department of Insurance, including a staff actuary and regulatory compliance specialist.

- Education and health workforce programs: JFAC approved special-program funding at the State Board of Education (including rural educator incentives and small program adjustments) and approved $954,500 for health-education residency programs statewide.

Votes at a glance (motions recorded on the JFAC record)

1) Hazardous Substance emergency response fund — one-time appropriation of $34,200 from the general fund. Mover: Senator Ward Engelking; second: Rep. Petzke. Vote: 20 ayes, 0 nays. Outcome: passed.

2) Military Division — public safety communications support: $540,001 one-time from general fund. Mover: Senator Ward Engelking; second: Rep. Handy. Vote: 20 ayes, 0 nays. Outcome: passed.

3) Military Division — IT infrastructure upgrade: $759,200 one-time from general fund. Mover: Rep. Petzke; second: Senator Ward Engelking. Vote: 19 ayes, 1 nay. Outcome: passed.

4) Military Division FY2026 enhancements (positions, equipment, IT, hazmat teams funding details included in fiscal note). Mover: Rep. Petzke; second: Senator Ward Engelking. Vote: 19 ayes, 1 nay. Outcome: passed.

5) Transfer $8,600,000 from the state emergency relief fund to miscellaneous revenue fund for hazardous-materials regional response teams. Mover: Rep. Petzke; second: Senator Ward Engelking. Vote: 19 ayes, 1 nay. Outcome: passed.

6) Division of Veterans Services FY2026 adjustments and reappropriation authority (including temporary nursing staffing pool and federal construction reappropriation). Mover: Senator Woodward; second: Rep. Handy. Vote: 19 ayes, 1 nay. Outcome: passed.

7) Department of Agriculture — one-time transfer of $1,724,300 from general fund to Pest Control deficiency fund (FY2024 costs). Mover: Rep. Handy; second: Senator Hart. Vote: 20 ayes, 0 nays. Outcome: passed.

8) Department of Agriculture FY2026 enhancements and replacements (pay structure, CEC for inspectors, replacement items). Mover: Senator Cook; second: Rep. Handy. Vote: Senate 8 ayes, 1 nay, 1 absent; House unanimous; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

9) Department of Finance FY2026 enhancements (five FTEs approved in motion text; committee recorded 5 FTEs added and $765,800 dedicated funds). Mover: Senator Hart; second: Rep. Galaviz. Vote: Senate 8 ayes, 1 nay, 1 absent; House unanimous; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

10) Department of Insurance FY2026 enhancements (staff actuary, regulatory compliance specialist, State Fire Marshal compensation/replacement items). Mover: Rep. Furness; second: Senator Cook. Vote: Senate 8 ayes, 1 nay, 1 absent; House unanimous; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

11) State Board of Education — Special Programs FY2026 (rural educator incentive, small program staffing/IT items). Mover: Senator Carlson; second: Rep. Price. Vote: Senate 8 ayes, 1 nay, 1 absent; House unanimous; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

12) Health Education Programs (residencies and dental education funding) — $954,500 and 2 FTE for FY2026. Mover: Rep. Petsky; second: Senator Galloway. Vote: Senate 8 ayes, 1 nay, 1 absent; House recorded 10 ayes; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

13) State Independent Living Council fund-shift (move $11,600 of health benefit/CEC costs to general fund; net zero budget impact). Mover: Rep. Furness; second: Wintrow. Vote: Senate 9 ayes, 1 nay; House 9 ayes, 0 nays, 1 absent; overall: 18 ayes, 1 nay, 1 absent/excused. Outcome: passed.

14) Licensing and Certification (Department of Health and Welfare) — FY2025 and FY2026 transfer-exemption language and a requirement that DHW work with the Division of Occupational and Professional Licenses (DOPL) to draft potential legislation and report back to JFAC by January. Initial FY2025 language passed by unanimous consent; FY2026 language passed by roll-call after objection. Vote on FY2026 motion: Senate 8 ayes, 2 nays; House 8 ayes, 0 nays, 2 absent; overall: 16 ayes, 2 nays, 2 absent/excused. Outcome: passed.

15) Department of Health & Welfare — Division of Indirect Support Services (replacement items, SQL server replacement, OITS hardware). Mover: Rep. Mitchell; second: Rep. Bierke. Vote: Senate 9 ayes, 1 nay; House 8 ayes, 0 nays, 2 absent; overall: 17 ayes, 1 nay, 2 absent/excused. Outcome: passed. Language ordering a vehicle-fleet utilization report due to JFAC by Dec. 15 was also adopted.

16) Office of Health and Human Services Ombudsman — $50,000 general-fund request. Mover: Senator Wintrow; second: Rep. Handy. Vote: Senate 8 ayes, 2 nays; House 5 ayes, 2 nays, 3 absent/excused. Result: motion failed in the House and will be revisited later.

What lawmakers and staff said

Keith Bybee, division manager for budget policy analysis, summarized the general-fund daily update and fiscal-note items, noting the committee should track totals for revenue and appropriations because "that total is inclusive of everything including the stuff that might not pass." Frances Lippitt, legislative budget analyst, described several Military Division requests, explaining that upgrades would "ensure that the vehicles awaiting system installation can be used by the Idaho State Police by calendar year end." Representative Petzke publicly declared a conflict on one item, saying he needed to "declare a rule of 80 on this one as I serve on the board of directors of a company that supplies some of this equipment." Representative Price explained his no vote on the ombudsman appropriation as concerns about a new program's pay grade and growth trajectory.

Why it matters

The committee’s votes move a set of agency requests forward into the legislative budget process or provide FY2025 supplemental funding where agencies cited immediate operational needs. The decisions affect public-safety communications, hazardous-materials regional response capability at local fire departments, veterans home construction and staffing, food and agricultural biosecurity work, regulatory staffing for finance and insurance oversight, and health workforce residency programs that lawmakers have prioritized. The licensing-and-certification language asks agencies to study a structural transfer and to draft potential legislation — a policy step that could shift where licensing work is housed and administered.

Next steps

Passed motions will be included in JFAC’s final budget recommendations and proposed adjustments in the upcoming legislative process. The licensing-and-certification report requested of DHW and DOPL is due to JFAC by Jan. 1 (calendar-year timing stated in the motion language), and the DHW vehicle report is due to JFAC by Dec. 15 of this year. The ombudsman request failed in the House and will return to the committee at a later date.

Ending

Committee members recessed after completing the morning's agenda and will return Monday morning at 8 a.m. to continue budget work.