Idaho State University tells JFAC it will return disputed forensic-lab funds, outlines budget and accountability changes

Idaho State University President Rob Wagner told the Joint Finance-Appropriations Committee on Jan. 29 that ISU will return remaining funds tied to a previously planned Eastern Idaho Forensic Pathology Center and pledged stronger internal controls to ensure legislative intent is followed.

Wagner told the committee the university became aware of issues around the project in late 2023 and that ISU had spent a small amount on a consultant before, following a memorandum of understanding, transferring remaining funds to the county that planned to operate the facility. "I believe Idaho State University should have kept those funds," Wagner said, adding the university will improve how it identifies ownership and accountability for legislative funds.

The committee co-chair announced an audit has been requested and is now in process; a staff report prepared by Legislative Services Office analyst Kevin Campbell is available online. Campbell, presenting ISU's FY2026 budget request, said the analyst staff is "tracking down" a technical error in the tuition and fees beginning-balance data but that ISU has not overdrawn its account.

Campbell and Wagner also outlined ISU's budget picture and program priorities. Campbell told the committee ISU has more than 12,000 students, about 1,244 full-time equivalent employees and a base budget reported at $171,100,000. Campbell said ISU's historical expenditure mix is roughly 74.8% personnel, 21.2% operating and 3.9% capital outlay. For FY2026 ISU is requesting operational capacity enhancement dollars and adjustments including amounts described in the presentation as $907,300 in operational capacity enhancement, $233,700 in endowment funds adjustment and $988,100 in the enrollment workload adjustment (as submitted by the university to the budget process).

Wagner emphasized growth in health sciences and workforce programs. He described enrollment increases in nursing and other health programs and announced a new doctor of nurse anesthetist program that will begin with 25 seats; he said the program drew more than 200 applicants in its first cycle. Wagner also highlighted partnerships with ICOM (the Idaho College of Osteopathic Medicine) and ISU campuses in Meridian, Twin Falls and Idaho Falls as avenues to expand clinical training and retain medical graduates in Idaho.

On student services and campus reorganization, Wagner said ISU reviewed its diversity-related centers while refocusing on student completion and academic success. He described moving two FTE tied to the diversity resource center and a gender resource center into student involvement and equal-opportunity/Title IX functions, and establishing the Bengal Success Center to provide academic-support services across ISU campuses.

Committee members asked whether federal funding pauses announced at the federal level would affect university grants. Wagner said ISU did a "very, very quick" estimate during developments the previous day and that the university initially believed about $25,000,000 of grants could be at risk before a court injunction paused the federal directive; he said staff continue to work with national associations to clarify impacts.

The committee's discussion included repeated assurances from Wagner that ISU will improve internal controls and legislative accountability. Representative Manwaring told the committee he had reviewed ISU's report and thanked Wagner for the decision to return the funds. The co-chairs and other committee members emphasized that "appropriation law is law" and welcomed Wagner's commitment to transparency.

The committee's analyst noted several historical budget reductions and adjustments that affect ISU's base funding, and Campbell said he will update corrected tuition‑and‑fee balance figures if appropriate for the record.

Wagner closed by restating ISU's enrollment profile and the university's intent to provide multiple on‑ and off‑ramps for students pursuing certificates, technical credentials and degrees. He said ISU is focused on workforce outcomes, retention and expanding health‑sciences capacity across the state.

No formal committee vote was recorded on the forensic‑lab matter during the presentation; Legislative Services Office and committee staff said an audit has been requested and is in progress, and ISU stated it will return the remaining funds tied to the pathology project.