Lawmakers Press State Board Over Budget Growth, IT Needs and $15M Workforce Grant Request

The Joint Finance Committee heard detailed questions about the Office of the State Board of Education's (OSB) FY2026 request during a work‑group presentation that focused on the agency's expanding responsibilities, information‑technology capacity and a one‑time $15 million public‑private workforce capacity grant proposed by the governor.

Kevin Campbell, a budget and policy analyst with the Legislative Services Office, told the committee that OSB oversees several central programs transferred to the board over recent years and that the office currently has 84.25 authorized full‑time positions (with eight vacancies). Campbell noted a five‑year average authorized FTE count of 55.95, explaining that recent transfers from other state entities have raised the current headcount above that historical average.

The difference matters, lawmakers said, because much of the growth is in centralized functions such as IT, audit and school safety that were previously housed elsewhere. "Bringing that centrally allows us to focus and make sure that we're doing standard policies across all of those," OSB Executive Director Joshua Whitworth said, describing the board's goal of reducing duplication and improving "systemness" across higher education and K‑12.

Why it matters: Committee members flagged two common concerns — whether centralizing functions produces net savings for institutions, and whether OSB has the capacity to support systems it now manages. Whitworth told lawmakers OSB's IT and data group supports roughly 300,000 students across K‑12 and higher education, and said, "we need to do a better job of providing a holistic plan around our IT" to address cybersecurity and rural support gaps.

The governor's single largest FY2026 enhancement request for OSB is a one‑time $15 million public‑private workforce capacity grant. Campbell said the grant would fund infrastructure tied to workforce training and require local matching dollars: a 1:1 match for Boise State University, Idaho State University and the University of Idaho, and a 1:2 match for Lewis‑Clark State College and the four community colleges. Committee members requested a refined list of eligible programs and expected outcomes before they make decisions on the request.

Independent Study Idaho, the flexible, nontraditional delivery program discussed by Whitworth, drew particular scrutiny. Whitworth described the program as an online/flexible option funded largely by student fees (about $160 per credit). Several legislators questioned the program's fiscal efficiency: Senator Cook observed that, over 55 years, the program's recorded usage appeared small (a figure of roughly 1,228 students was cited during discussion) and asked staff for more data on participants, costs and measurable outcomes.

Funding for DEI‑related programs also came up. Committee members said reports to the legislature indicated those programs are funded by student fees rather than by state appropriations; Whitworth confirmed that the “majority of those services were paid by student fees or otherwise user fees.” Lawmakers asked OSB to provide the committee with any state dollars that are tied to these activities and with follow‑up documentation explaining where fees are collected and how opt‑in rules apply.

Other items discussed with committee requests for follow up: - Transfers and organization: Campbell and Whitworth said several functions — audit, risk management, IT and the school safety and security program (moved from the Division of Building Safety in FY2022) — were transferred into OSB, and that many of those transfers were net‑zero position moves from other state entities. Lawmakers asked for a summary showing where positions were moved from and whether corresponding reductions occurred in those source budgets. - Broadband and other transfers: Campbell noted a $5 million broadband program transfer to OSB in FY2025 from the State Department of Education; lawmakers asked staff to verify net impacts. - University of Phoenix inquiry: Whitworth said the board's evaluation of a possible University of Phoenix transaction is ongoing and that any path forward would require legislative engagement.

No votes were taken. The committee asked OSB to provide an IT strategic plan, a program‑eligibility list and expected outcomes for the workforce capacity grant, data on Independent Study Idaho participants and metrics, and a summary of recent interagency transfers and their net budget impacts.