JFAC boosts community colleges' enrollment adjustments and directs outcome-based funding proposal

The Joint Finance-Appropriations Committee on March 7 approved additional general-fund support for Idaho's community colleges to account for enrollment workload adjustments and asked the State Board of Education to propose an outcome-based higher-education funding model.

The committee voted to add $1,679,800 in ongoing general fund for FY2026 to cover enrollment workload adjustments: $496,800 for the College of Eastern Idaho, $690,000 for the College of Southern Idaho and $493,000 for the College of Western Idaho. Representative Pesky moved the motion; Senator Ward Engelking seconded it. The motion passed on a roll call recorded as 19 ayes and 1 nay.

Committee members said the increase was intended to relieve wait lists at community colleges and avoid penalizing institutions that had shown recent enrollment gains. Kevin Campbell, budget and policy analyst with the Legislative Services Office, explained that community college appropriations are trustee and benefit payments and are subject to an enrollment-workload adjustment computed by the State Board.

The committee also approved legislative language directing the Office of the State Board of Education to develop an outcome-based funding model, to return to JFAC with a proposal by Dec. 31, 2025, and to implement the model by FY2028. Representative Petzke requested unanimous consent to adopt that language; there was no objection.

Why it matters: The adjustments increase ongoing operating support for community colleges and create a clear timetable for the Board to design and present an outcome-based funding approach. The directive could shift how future state funding is distributed among institutions and affect college planning, staffing and program expansion.

Ending: The motion carries a due-pass recommendation to the floor; the committee will consider additional budget items in upcoming meetings as work groups finalize hearings.