Idaho Department of Labor seeks $7.33 million in dedicated-fund authority to sustain unemployment operations

The Idaho Department of Labor asked the Joint Finance‑Appropriations Committee for $7,330,000 in additional dedicated‑fund spending authority to maintain unemployment insurance (UI) operations as federal pandemic funding declines.

Director Janie Rivera and department staff said the request is drawn from the department’s dedicated funds, not general fund, and is intended to preserve staffing and operations needed to administer UI benefits, appeals and employer compliance work. "The department only gets a little bit of general fund to run the wage and hour program, so we don't use any general fund on the unemployment insurance program," Rivera said.

Why it matters: The UI program is a federal‑state partnership. When unemployment is low, federal grant support for administration typically drops; the department asked the committee for additional dedicated‑fund authority so it can continue baseline operations and be ready to scale up in a recession.

Key details - The department requested $7,330,000 ongoing for unemployment insurance operations in a dedicated fund; analysts described that request as intended to offset reductions in federal grant dollars tied to low unemployment numbers. - The analyst identified a proposed $4,868,600 cash transfer from the unemployment penalty and interest fund to the employment security fund to correct an earlier overcounting transfer and to adjust fund balances for FY26 estimates. - The department also requested $161,000 for hardware (70 laptops/docking stations and 70 desktops) recommended by the Office of Information Technology Services. - Director Rivera said Idaho’s unemployment trust fund is healthy. She described the trust fund process, statutory tax formulas and options if the trust fund were to be exhausted, including federal loans or issuing bonds. "We were fortunate. We were in a position where we had a very healthy trust fund," Rivera said, adding the state now builds conservatively into the tax formula to withstand major downturns.

Committee questions and follow-up requests - Members asked for details on the department’s staffing baseline, the percent of salary savings being spent versus reverted, and how much the department’s staff counts fluctuate during downturns. Rivera said she would provide the committee with specific staffing and spending numbers. - Several legislators asked for a clearer breakdown of how the requested dedicated funds will be applied across claims determination, appeals and employer compliance.

Background and process notes - Brooke Dupree, the legislative analyst, explained the department historically receives appropriations with excess FTP to allow quick hiring during spikes in claims and noted the department’s filled FTP percentage was roughly 73% over recent years. - The analyst and the director explained that the UI trust fund is a continuously appropriated fund used to pay benefits. Figures discussed in committee noted prior annual ranges of trustee and benefit payments from about $69.7 million up to $202 million in the COVID years; the director said the trust fund currently projects to be solvent against modeled recession scenarios.

What’s next - Agency will provide detailed follow‑up to the committee including: (1) exact staffing counts (baseline and pandemic peak), (2) how much salary‑savings are reallocated vs. reverted, and (3) more detail about how federal grant fluctuations affect the department’s budgeting.

Ending - The director thanked the committee and reiterated the department would supply supplemental materials requested by lawmakers.