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Governor’s budget proposes transfers and boosts to savings accounts; committee seeks details on bond levy closeout
Summary
Legislative Services Office staff told the Joint Finance‑Appropriations Committee that the governor’s FY2026 proposal includes both transfers into new spending and increases to savings accounts, and that a statutory closeout of the bond levy equalization program will return roughly $62.8 million to the general fund.
The governor’s FY2026 budget recommendation sent to the Joint Finance‑Appropriations Committee would both move money into spending priorities and increase several state savings accounts, Legislative Services Office analysts said Oct. 23.
Keith Bybee told members the governor’s proposal includes an estimated $477.3 million of transfers to other funds when accounting for both spending and savings actions; the package as presented would leave net revenues for FY2026 at a lower figure than some agency requests because the governor offsets some spending with transfers such as the return of an existing bond levy equalization balance.
Bybee identified several specific items in the recommended transfers. He said the governor proposes a $60 million transfer to a fire suppression deficiency warrant account to help the state fight fires, additional transfers for the Idaho Transportation Department and other one‑time allocations, and a transfer of about $62.8 million from the now‑closed bond levy equalization program to the general fund as required by the statute that closed that program.
Representative Tanner questioned the history and purpose of the governor’s emergency fund and whether funds placed there during the 2020 COVID period had been spent; Bybee said he would follow up with a more detailed accounting. He also explained that the bond levy equalization program was closed by a prior bill (House Bill 521) and that cash remaining in that program was returned to the general fund as provided by law when the program was discontinued.
Beyond transfers for spending, the governor’s recommendation would increase the balance of Idaho’s budget stabilization fund. Bybee said a proposed transfer of $59 million would bring the fund near $939 million and, in his presentation slides, would put the fund near the 15% statutory cap of general fund revenues if revenues materialize as forecast. He reminded the committee that last year the legislature temporarily set aside the code section that would have forced money back to the general fund if the cap were exceeded; the committee will face a policy choice about whether to again leave money in place or return it to the general fund.
Bybee also reviewed the public education stabilization fund (PSIF), which functions as overdraft protection for the public school support appropriation. With the governor’s recommended transfers, he said, the PSIF balance would move to approximately $293.6 million, near statutory limits set by recent statute changes.
Why it matters: transfers and statutory caps determine how much of the general fund is available for the legislature’s choices on tax relief, base budget increases, and one‑time spending. Committee members asked follow‑up questions about the timing and legal authority for transfers and requested staff provide a written breakdown of the bond levy equalization closeout and the history of use for the governor’s emergency fund.
